FTC Solar, Inc. Q1 FY2025 earnings call

• Added multiples of current annual revenue run rate to backlog, signed over 6.5 GW with Tier 1 accounts, and added over $30M in liquidity.
• Expanded 1P product line with features like high-wind offerings, compatibility with various modules, terrain following options, and 100% domestic content capabilities.
• Increased customer visits to product demonstration facilities by 100% to 240% over past 6-9 months, bidding volume up 60% in Q1 with average project size up 65%.
• Sixth consecutive quarter of OpEx reductions, with non-GAAP operating expenses at lowest level since 2020.

In the first quarter, revenue was $20.8 million, which was above the guidance range of $18M to $20M. GAAP gross loss was $3.4 million (16.6% of revenue), while non-GAAP gross loss was $3 million (14.4% of revenue). GAAP operating expenses were $7.1 million, and non-GAAP operating expenses (excluding certain costs) were $6.6 million, the sixth consecutive quarter of OpEx reductions. GAAP net loss was $3.8 million ($0.58 per diluted share). Adjusted EBITDA loss was $9.8 million. The contracted backlog stands at $482 million.

• Q2 revenue expected between $19M and $24M.
• Non-GAAP gross loss expected between $4.4M and $2M (23.4% to 8.5% of revenue).
• Non-GAAP operating expenses expected between $7.8M and $8.6M.
• Adjusted EBITDA loss expected between $13.3M and $10M.
• Expectation of achieving adjusted EBITDA breakeven quarterly within 2025.

• Uncertainties related to tariffs, duties, and permitting processes impacting supply chain and project timelines.
• Potential impact of tariffs on costs, though majority are passed through to customers contractually, and minimal impact seen in Q1 to date.

Q: Any exposure to tariffs for components and impact on deliveries?

A: Company has diversified supply chain, tariffs mostly passed to customers, minimal impact in Q1.

Q: Pickup in module change configurations delaying deliveries?

A: No direct impact seen as supply chain anticipated AD/CVD results, and no project shifts due to module impacts.

Q: What drives expectations of positive adjusted EBITDA by end of year?

A: Inflection point with 1P deployment, signing more work, taking market share from peers with compelling product features.

Q: Plans for 2P?

A: 1P represents 90% of bidding volume, 2P has niche markets but focus is on growing 1P pipeline and revenues