Array (ARRY) 10 Mar 212020 Q4 Earnings call transcript

Good evening, and welcome to Array Technologies Fourth Quarter and Full Year 2020 Earnings Conference Call. Today's call is being recorded, and we have allocated one hour for prepared remarks in Q&A. At this time, I'd like to turn the call over to Cody Mueller, Investor Relations of Array Technologies. Thank you.

You may begin.

you Array us full Technologies results. thank call today's year and discuss to fourth evening for on joining conference XXXX Good quarter and

made and this conference forward-looking the risks incorrect factors and includes statements latest and Actual results assumptions make measures. financial and which During are this materially because comments not which reports any duty update uncertainties. and our Exchange management of undertake our the discussed from of or in do differ to earnings current key on our assumptions, to other any during call on press Each if arraytechinc.com. to in found filings expectations Securities forward-looking can also subject are could forward-looking references non-GAAP call, We any presentation conference statements website, of statements. release with based be today's will our Commission. Today's

fourth information to You release the the measures over that, should financial information refer comparable non-GAAP Array for let to the GAAP contained Fusaro, the CEO. measures. Technologies' quarter reconciliations historical to call turn definitional With press and of me company's Jim in

Thank Thanks, evening joining good everyone. call. for Cody, earnings and our you

there We for continued $XXX in [indiscernible] our been of us Cody, continued provided. the several our US million today that our caused to by reflecting to year, we of market that pleased in call, set year in share full we developments XXXX expectations have last solar growth trackers versus I'm gains XXXX Full year growth I'm of guidance our fourth penetration revenues XXXX last XX% In our the earnings growth addition higher. our anticipate Chief strong Officer. year increased market have high revenues end strong since previously and Officer; by the increasing Chief were continued products. and Nipul joined and Patel, Financial Commercial Krantz, exceeding that million full $XXX Jeff to generated the quarter report

the First, the believe solar recent substantial two-year projects that extension of it expanded products. viable increase in in we our the are will result a ITC number of has for demand solar and

Second, corporate use source that demand for for using in companies, in meet share earnings met energy. that XX plan put that's generation. a lion's North commitments that place. energy global with lot of they renewable already companies sustainability XXX be and the to XXX in renewable And these around their increase the our buying We commitments continue have Meeting last believe most To goals by will decarbonize global November, since that. corporations including the from established requires in sources of to sources. from to renewable to that types solar. rely beginning some context more that call, of have to targets energy commitments on America announced addition reductions emission the

introduced Energy of bills things. solar election among President for for Biden's XX with just National increased a days, and to deployments. solar that democratic probability Standard in new combination that legislation In been there projects other Clean to Congress the Third, likely is of increases climate major the change Congress accelerate control related past in Bank three has energy renewable Green called fund and incentives

growth solar's lastly, projects that and continues with utility-scale in are increase. policy solar of That's accelerate US entering and While Administration have fossil under by we LCOE The market, lower a we that meaningful that three in how Information short only will confident for And and now renewable megawatt-hour. next a period consultants generation the an solar. competitiveness few were XXXX projects was will that forms estimates versus other put will for to where predict service $XX further Energy XX% will of from enacted, huge time. new we cannot XX% new To months incentives only what there relatively XXXX years be regulations these one ago. some on ago. expectations the over solar they increased at change perspective least many utility-scale have for US a in noted installations been forecast over have developments independent the be year their That's a are

core our achieve to remains While our the that business focused To goal, call. on the goal that tailwinds strengthen, outlined we quarter conference we on market. faster our than three behind continues growth grow strategies are third to

services, that share market technology. companies Continued in complementary and products, or of acquisition provide the gains expansion US, international

are to making share demonstrated with well are US as customers as Array by to our existing as customers wallet book. In order progress. new the We market, continuing we strong good already grow our convert

During some added slowed to to service COVID-XX expect to international XX underscoring to we this markets will customers. plans be other convert the process new need abate. of international we travel generating XX% to sales infrastructure and the approximately be the created Array that and of year by new accounts strategy of of we has that Outside XXXX, we outside ability of We later our XXXX, accelerate [ph] products. challenges our pandemic US. the the building fulfillment supply chain able believe are customers from and restrictions our as we by QX US, our in of sales

have given our to call, a completed than for believe the well growth utility-scale the of we the confidential on way We all report are installed. be much January. strategic prospects positioned innovation. revolutionize to can acquire the we able first a not will we to that if Unfortunately, three technology across to. our the with in happy our company be remainder about with technology Lastly, choose and very strategies of that to say, excited that are we product company Cutting solar company. Other is will we agreements transaction investment stake the I'm this elaborate a unique I took we on in

addressing utility-scale can solar of availability a goal cost total in energy solar points on the constitutes common a Installation proportion our growth. investments constraint product in be of installation. We are skilled year new making significant growing labor project with the a customers' pain and this development of the of

new several to year in our cost competitors. features we could and required extend that reduce have development and believe labor lead products, installation system the and this over We tracker significantly install technology product methods our further

are underway. that new is is more developing. stronger, We and tricks dates Phoenix, customers market development are our have efforts products launch site methods as for methods, market mounting a new Research technologies demonstrate product we saying cut establish [ph] areas. There Our and that getting systems times about more for through to be terms showcase us key conclude and taking Trackers significant the installation tool-less without through costs requiring can sleeve on technology to share. proving will new solar we're we plan over update and these We you innovation. for new we the we Center The excited on the still the rugged reducing recently we products of which as to in installation improving more by serve module are ground focused are the terrain foundation in four winning come. tracking some that To opened installed software. grading, in installation customers, up Array quarters performance products Technology I'll coming future. our can have

an Nipul it quarter the over XXXX. will I full to Now, on year turn for update and

Jim. Thanks,

This customers' keep I the and to of result weighted and Before government the the capture of place our a the about that to results delivery customers XXXX. as results, were first to in down attempt XXXX quarter is of first-half it their our our take the fourth in of talk caused fourth to important by orders two XXXX in XXXX federal incentives the quarters XXXX the bulk step ITC. back mind our heavily in quarter half in then related

evenly XXXX As down quarter QX comparing the same quarter revenues more were necessarily distributed. indicative XXXX of skewed revenues in a in while trajectory a result, ITC our in the since is not XXXX step and single of XXXX business, the to in QX, to

generated pattern. quarter, decrease the these fourth $XXX.X of revenues was of the which year prior million, a we result changes order For seasonal period as over a in

of public obligation net in year earn-out higher million, the the quarter. $XX.X compared we payments Operating better as $XX.X anticipated we the associated as the along with revaluation earn-out end delivery exceeded guidance the company than in expectations absorb expenses of is fourth than costs due with and the a ASPs contingent of being out project not to note consideration XX.X% a under now conversion primarily We the quarter charge. the related with that less However, cost year-ago prior end agreement. loss have period, any to headcount. but result that quarter This owed related to were period our the quarter line of have we're under contingent to full million were had primarily margins mainly our further and the our a consideration, recorded in obligation the in approximately a important to amount year-over-year. a $X.X of increased mix increase up revenues of our revenue founder as result the paid with have will the or year. having million we for at expenses project Gross to lower high and X% the in fixed expense

the any contingent to consideration guidance. the end receivable recorded from $XX to exceeded related EBITDA for the the was which million expenses will down million forward, high in was agreement. of but be Going quarter, Adjusted revaluation tax also the of only $XX.X our year, prior fourth

at well Now EBITDA full-year ended XXXX, in profit were to compared increase as increased the to consideration logistics strength million the resources XX% compared compared than primarily comparable prior $XX.X debt compared XX, delivered, bad we Gross in compensation we by $X.XX Operating million million materials, recovery million US the earlier driven lower million increased the as was recorded increased we XX% of trackers had compared million an in in in to XXXX, critical $XXX.X which year December volume increased $XXX.X in XX% costs the as million a costs adjusted as contingent in period. the for basic solar had as XXXX on for the to a and by industry. higher in to full benefit our to expense XX% year increased ASPs in $XXX.X future period $XXX.X purchase anchored payroll the for enable driven flat well invest margin the the to result turning year. for XXXX. Gross which a $XXX.X to million results. by expenses primarily year and in during to as last we X% remained equity-based to million per higher year, as XXXX $XXX.X volume. Net costs. benefit $X.XX $XX.X approximately higher for $XX.X increases XXXX, to XXXX, XX.X% $XX.X our offset Revenues in million XXXX $X discussed no million same share compared to of income million And and to growth. income prior diluted finally, the higher $XXX.X

financial pleased by Taken adjusted in operational our as with created unique revenues the a challenges and record having despite whole, XXXX EBITDA delivered we are the very pandemic. performance

$XXX we net our in December the demand share expect At revenue for Adjusted and midpoint of our million our income guidance be to XX, EBITDA year-over-year products. be range to range $XXX December to in be per Adjusted the now $X.XX. Turning million. our years, million was had next represented are of increase are a to guidance; expected of billion. contracts to to step revenue $X.XXX billion ITC, of revenue reflects entered XXXX, about strong order to XX% $X.XXX our with XX% revenues represents ending year in the we seeing That's the XXXX, The the of to for no equivalent we months range part $X.XX midpoint of orders We XX, the the we In in our where XXXX. backlog very confident guidance this then. entering year since and down feel backlog the year. our growth that awarded reason $XXX six has grown of book the and executed are the typically ship year of there in shipment. in to

than margins last that. for guidance achieved year. are EBITDA adjusted reflects several There Our reasons lower we

earlier, discussed innovation a investing product Jim have in are as made we and First, it. priority we

generate and incremental center research expect be share making investing R&D. we revenues additional the he results adding the addition the market resources from a we margins. long-term new In that near-term revenues, we greater be investments investments will and These in to the increased more cost of discussed, have will higher to engineering ahead But as be should products.

our and will we yield. the new need supply and short-term in international between are mismatch The they investment investing our product customers. of we to our fulfillment chain cost in service a Second, have the sales, we the that investments to more infrastructure revenues development,

Third, have which material of year-over-year costs, past months our as increased additional will of XXXX the pandemic. costs SG&A represent re-acceleration the company commodity several us. offline the a reflects And as result and of headwind global while economy public for freight prices transportation over result and finally, a significantly the raw remains certain capacity a

guidance cost more on our the close us modeling a taken we to prices we by a some assumptions the pricing. allow full While expect assuming like these guidance approach making into to our these contracts XXXX. providing have I'd to conservative normalized for our end to return year pass low costs customers, and key of our to delayed normalize by to

push earlier, has the step As impacted I mentioned the of out ITC customers two-year their down orders. time how

As did our XXXX. in XX% annual a revenues generate in We see revenues and to currently QX, quarterly and to XX% of XX% XX% in to distribution will XX% different XX% QX. result, than in to earnings XXXX XX% QX, a XX% of QX, in to we expect in we

be We expense average rate shares, million. expect to million share $XXX.X our to for and $XX count XXXX to be between Diluted interest weighted effective to million tax be XX%. $XX

remarks. closing over to for I some will Jim back it turn Now,

reiterating in done Thanks, by accomplished continued have with I strong Nipul. IPO how successful financial questions. to close all the grow lay open And am a incredible to the continue please to line as to the Array for that, that XXXX, in company. for XXXX. our an team from proud of our we hugely shareholders It work support the growth appreciate was performance we year. I'll for of foundation truly we our our operator, We

this question-and-answer question your session. we'll Brian line be conducting with first comes of Proceed At time, Instructions] Lee question. a Goldman with Our the [Operator from Sachs.

are guess, embedded out in the Nipul, should Good about think. then given you Good quantify with in we throughout you sort taking here to input here? of moving inflation and afternoon. mentioned to inflation, if guys. X% in on Hey, be first a XXXX, some for to, for capturing the that I pressure XXXX? cost continue with a some around the is see not And pricing I couple Just you increases the of to price? out job more there here. comments costs the are had questions. to of thinking of normalization? can it you some any in your How outlook pricing Thanks average year respect market were quarter price And go up the degree? we dynamic I you ASP, What's your able

say, you're flat, We've What Thanks mentioned X% prices Brian, prices I -- think year-on-year. stable. and would the it's are right price they questions. held -- as for I Thanks. increase relatively in Hey, those Nipul. we Yes. the

back the our We've However, we do Brian. as have built option as we to -- go the option. that allow guidance us that evaluate mentioned in in yes, to range market. case in have do But case, by to

aren't then guys Can XXXX XX% a XXXX? sales can or is, December and of know sounded but then, the it it's, And to that contracts it in that's growth you. that different on Thank kind that speak question great. per will you sat a se, going some directionally orders. it XXXX in kind XX-XX seen by after I reported you contracts awarded update early recurring like Is this geographic make what be non-US. level. of -- backlog said is where on us give the you in awarded Okay, even QX And of mix now sense of there? XX, you've second to you order

Yes, sure.

awarded forward, we're ITC I we've to going that pattern what year, is thing XXXX, coverage that. yes, extended, the and about mid-point -- but of we feel of decided once The in with XX this that So. Hey, really going as since on with good being orders, give so process is we backlog Brian mentioned provide we'll qualitative good but XX% you seen a that that the guidance is pretty December to ordering we changes have regarding growing annual about measures number it our concrete the feel the and at year-end like mentioned, guidance. really part we our

well good as So and January. that about from feel we the really increase as it's

mix, Nipul, skew any that Are Is mix? in color just of of you can terms that you then, XX-XX? in And kind even provide? more the non-US it right. seeing All geographic toward

Yes.

we've the be said, is what in of we I year, bit mentioned full think So the ramp end XX% international I would for a for little will the a the a at the blended sales the say the Jim mix. his script is, and there Right quarter fourth in year. now, in overall, by it's feel of XX%-XX%

Thanks enough. lot, guys. fair a Okay,

Thanks, Brian.

question of Guggenheim comes the Shar your line question. from Proceed Pourreza next Our with with Partners.

evening, guys. good Hey,

Shar. Hi,

should highlight our or that post of Obviously, term modeling incremental today, EBITDA the we expand margin guiding around XX% maybe from good here. seeing about as, 'XX? what's on you're XX% further some a public about of the So that that think sort costs mid-point several you assume implies sort touched let's should obviously, of purposes maybe lower of say we just But floor margin of and medium driving pushes a what and of new in sort we driver say commodity for guidance we compression couple costs, that as internationally as pretty compression. the as international we're quick in you've 'XX items company some the you questions think like margins, assume of post 'XX, guys

it's Shar, Yes. Hey, Nipul again.

Nipul. Hey,

of medium-term feel investments will coming, XX% feel floor the where the to where we we're it is being commodity pricing of feel. for that and that's that what that's revenues near XX% given kind as kind right we be We've making range, any it is now we the still that is that EBITDA and with consciously the

to you your Okay, that's wanted then sure just of I revolver. That's And obviously, that's the reiterated. perfect. recently increased make size

you Is that why would highlighted you've saw some acquisitions, why capacity? your or let's opportunities? a maybe Just inorganic just quick revolver say, the of organic refresh, look you parts you bolt-on the maybe -- of sort that sort could -- past, per In thoughts in increase other there sort to similar on the are of then M&A, year? just to highlight utilize in right? it the near And is investment technology this earlier made targeting innovations the term, BOS? that Or acquire, se, existing of you you new new

Sure. first pass to Shar, half I'll question take the of Jim. and I'll M&A the that,

Great.

But as as far the revolver, yes.

for looking look high our but invest at the always in we or look projects -- ROI for also in our to at bolt-on are capital flexibility opportunities way capital obviously, We growth. structure, structures, inorganic

And to to on Jim, flexibility M&A? the so those. to we you the take want that accomplish expand both provide revolver we believe ourselves to of

Yes, sure.

technology our to technology investment foundational in and system same, the and to system extent we really our step balance pipeline continue it's we on electrical that the to keep that noted first balance mechanical or going wallet strategy importantly, of we're and robust whether into that. share is So really additional towards to I most remains can M&A of tap our think remains thesis that the

and M&A very in going to we we the going that to bet optimistic forward. have So about continue remain what pipeline we're

a me; be then, I'm positive, Got could wondering, could just negative. for And just it from it. be just sentiment, it lastly

couple we just a through of about Has your sort customers maybe sort of a and the any events seen some we the went what you've think from we of ago? sort weather If of your in swung any books events. shift regions that -- ago as has of from few the order saw following of --- SPP MISO weeks ERCOT, weeks recent your

report No, affected in sites too nearly the that we've received so X this got on we not sites, word gigawatts our XX but Shar, happy not issue any moment, but early really have nearly at to at to nothing tell, notable. probably and I'm region, any

guys execution, the on Congrats Perfect.

you. Thank

Thanks, Shar.

question. Our from with question Coster next comes Paul of JP line Proceed the Morgan. your with

So as Can Yes. costs. me It taking the my you it to it's like impacts and the was you across these expenses of for give just other more sense was related below of question. line, it than year; during distributed margins? expense there? sounded operating versus it gross some clear wasn't below investments sort Thank direct us how the EBIT

and is about this half, the future Paul, going it of towards roughly piece. Jim. really And half Yes, with It's half innovation here. it's the

investing the I'm -- certainly seemingly one innovation I'll And so things on let doing same is the not that term it half is Nipul really long-term, this on time, conflicting at coined short the but two in piece. the comment. So this while delivering of

Yes.

impact So of not into as range. on guidance -- really The side, other the our of that the in have and material raw half our really and quickly that's that range, other abating costs the we we cost Paul. freight margin higher on built

how -- a of sort international of I in as much mean Yes, pandemic been ask how the growth, shifting to more the quickly, but a cleared this EPS up has could second would things more unfair of half, maybe kind EPS forfeit if little into result much particular?

and was that quantifiable would I on that. give just up answer but reality. a wish faster, desire couldn't the clear really not that's only My it you

we Yes, half. mentioned, it as the in second has delayed,

Yes.

All right.

last Okay, question.

least in regular the nail China sort think now the as to XX, of like sort got end XX, do proportion big market What United most down, proxies You've the States. you are largest of EPC as customers? customers talked secured of into of of [ph] your going at the you've trying

is that respect back don't new have to just can lead readily to would XX versus the available, IPPs, but which I I saying, to by that. I added to get would we mix, get Paul, eight were you on have of we with international. EPC. you developers off the customers, back which

it. thanks right, much. Appreciate All Okay. very

Paul. Thanks,

Thanks, Paul.

from of question. Stephen Our next the Morgan question Proceed line with Stanley. your comes Byrd with

for speak I also so seeing in new if playing context, Thanks you just And -- wanted could the to bit just on Are thoughts of just just offerings? could share relative of just changes a your taking sort sort described get field. specifics in of that much position kind to are take my that your share you to there in you any questions. your broadly? give and if wondering little competitive you wanted on market on entrants, more remarks, prepared competitive positioning more

would all Yes, growth point forward any mid-point what that there. just we falls that the share would and of out really into by year-on-year we've demand, our of then of with math And to going share, outlined respect way let respect Steve. to I first the you XXXX say how I'll do respect Haven't and I our really you entrants market then with growth. competitors. new to seen

the execute Understood. just internationally, reading not it as growth able Am be rather of shift it's good. then more cost upwards just bit properly? and a in of to it's that delay. a there lastly, internationally, your Very sounds just structure of to but if sort And a to of delay, talked you I kind it's a is just, like

you of When right. Yes, certain delay, think the terms restrictions. of countries it that's had in of exactly travel think

the really qualify to and chain couldn't nature. fulfillment the things I ground So that of supply boots on get

really a So delay. that was

That's Thank you. had. all That's I perfect.

Stephen. Thanks,

line from question. of Suisse. Weinstein question next Michael your the with comes Proceed Our Credit with

it guys. I'm just increase that XX% same? towards Hi, US understand XX% gross actually between the from push things as margin is -- end I up that and range the guidance, to international, about curious percentage difference higher Hey, you the EBITDA of does coming or the all that international.

Yes.

less -- to are this be that's as that, maintain the going mix to we way range XX% XX% still that investments the the year. making we changes, and So we're at look there'll

that we think still we'll So be range. in

it I -- follow-up expected higher international just mean question, have Shar's earlier is US? Yes. just margins I to But the is -- mean with versus gross a

lower had the longer changed costs. a It is the bit we going Yes. little That at over hasn't term, than we going input Michael. what domestics they're because from it's that before, know initially, to or the but higher of be said to be margins.

you. Got

the -- what's expect the if So what's you offset to that? maintain to range, the

Well, up. investments from this recall ramps we're as sales, That's international as abate in get if the year, where offset. international you you so ramping and the up the

Yes.

I see. see. I Okay.

of terms field? Or In are a mentioned -- tracker creation, new, be terms into technologies, yet What we creating a going the in you solar you're that we something that new to something still branching be that's value new in is invested about of in talking revealed. technology to are -- you are efficiency? out completely new

limiting itself ourselves look the look at would we when to say not the but it, I we're going Yes. -- at way technology. within certainly, tracker there the in it's utility-scale, look Michael is, to be

are on, that investments Are -- additional acquisitions? major bolt-on you currently, other working still also or you're acquisitions there

they very pipeline mature, just I that apparent. back remains what will would said become earlier robust, our as go I to and they

you Maybe will the Phoenix think the that available in under capabilities bit be could a little comment more facility? Phoenix R&D on you

just you said would to Yes. back earlier. I we refer what

you that pain that we're more counts our maximize more also customers so are We're that is to is software. which install, Some time another, points can seeing ways foundation you through through means on. energy generate so of can looking flexibility, or grading, focusing at that the output minimize an how and the labor area have

working that -- of center. tech we're kind excited on, really the the that's about So but we're

planning world problem [ph]? ones And will last first, internationally, me. you for which becoming just after ones you, highest cost two continents which steel are next steel from and And One focusing of the that? on also the be is, a is priority where on

productivity our drive to commodities measures value. So, all build monitor manage to continue address in and we obviously that then and accordingly, to we

question your you supply was If -- clarify to chain, sorry, our question? pertaining Michael, could your

Yes.

Yes, sorry...

chain, I'm cost about I mean on margins the from supply pressure [Indiscernible] thinking inputs.

But to agnostic. new That's new pressure said, there chain. built in to up, mean, four going continue that market we I always much added supply is on be out our cost. suppliers product and We pretty XX build actually Yes. we've agnostic countries.

going that area be here going that's focused remain So grow as just domestic we forward both to on we an internationally. and

All right. the terms you sales, next? terms your second And going that? in priority continents to also in after go the and of highest What's are where on countries? And focus what's of

to eight them international, the to year, actually back that added I the would customers. last ones always strategy since a connecting the in investing most Yes, make are of point international following regions were actually that into grid. the that our is said, like which and are We you We follow really sense to we've of what they reach. XX have

think you South as to could those that not in order, as look America Western Europe, I there, well and are be Southeast seem and areas but necessarily customers Asia, our that countries So at then gravitating certain towards.

Okay. guys. lot, Thanks a

Michael. Thanks,

you. Thank

your question the of comes next Partners. from Philip with Shen line with ROTH question. Our Proceed Capital

everyone. for taking Thanks Hi, my questions.

in First you safe expect then of how what around overall were to and in in safe do ones wondering And what guidance? share expect megawatts the be are 'XX harbor QX harbor. you QX? able if might was many you do I

to I'll not Nipul. but in give megawatts, -- to revenues. it's it you Phil, you? How Hey, we're So talk Yes. I going about are

QX our first of ITC So course, about in year. is we million $XXX the of now expect to million $XX extended half had we in the about and numbers that deliver, related,

the half back we not of 'XX? And any Okay, expect great. then in should

extended the Well, ITC now. is

where high would months. are the So, and QX build QX seasonal patterns we normal assume

numbers could at million guys I and million then, the And of end same give XXXX? you wondering what was gave for numbers $XXX XX the Great. next $XXX if for -- months. the you backlog those

revenues and the story by backlog because most backlog, first customers We it numbers XXXX, at that didn't of year. Phil. the XXXX. precision, full XXXX. at the But profits end the periods, the you the are in awarded know, of between manifested roughly Hey, the two planned half And the represented that concentration of same orders XXXX of saw for you track our the and the what we're in tell at at doing and Yes. it similar as full doesn't the

of represents good. great year really have the year already feel have of mid-point backlog guide. we feel already our is it's about really we but full that about so that the really, level, The covered So six we about this and $XXX is million we -- same that's deliveries XX% why that months

versus as Thanks, can revenues, official back the or margin being it know but is either outlook, it's look through this, you're first the providing half, half the gross the cadence in EBITDA I to what margin harbor you in the margin -- talk Nipul. safe half? not like of And then, Great. relates first on concentrated guidance given

we -- It's about are same throughout. Yes. the

about would I margin. revenue we the the take split that and same So just had

Okay, you. great. That's all really helpful. pass on. I'll Thank it

Thanks, Phil.

Proceed your next Colin from Oppenheimer. question. comes of question Rusch with the with Our line

[ph] guys. It's our Joe Thanks taking Hey, on questions. Colin. for for

sorts going terrains, come expecting around of odd more demand, in some you maybe addressing sites? difficult -- growth can dynamics to of lot lots the Given odd to the to that's we're so from likely be those speak are shaped

speaking? who's or Colin sorry. I'm Yes,

Colin. for on [ph] Joe is This

I think as Joe. -- that Yes. hey,

addresses product we do forward with that of for it's strategy, nicely, to and that the megawatts because reason we with part they those X exactly went that's what RPCS us. and XX parcel was our what whether well Our do quite

terrain and been to see plan themselves challenges respect flexibility we forward. servicing with we've of do going that So so odd-shaped the market quite that any sizes we the don't nicely, to

sold? back little materials goods question guys then, looking the and Okay, input costs your you great. cost to potentially And chain. at reduce of any Are could around supply new that bit a

Yes.

are. ask what Now, don't they

color mean, Well, good. would can there Okay. any you I be give

parcel just at looking We're what of that's Yes. does. team and part the R&D alternative materials,

very Sounds Thanks much. good.

Thank you.

question. comes the Our Jeff with with of from Cowen. your question line Osborne Proceed next

just questions to back afternoon. percentage but what you can Most addressed, roughly been [indiscernible]; remind us of the of is going Yes. of the galvanized have steel? bill Good the materials

our Yes. overall bill break we that materials, we tracker. the obviously, don't a commodity products, Hey, Nipul. have in competitive is -- Jeff, a know we obviously, but We're we component, steel of it's use -- not out for large

it. Got

a necessarily have not locked pricing, you the would [ph], booked the and so it's you bit? high as just talking buying have So or you quite margins into about half a based locked you're when as that so? in been in steel bit you steel on of the backlog just fully the that visibility the year moving be So first

Yes.

between XX So we typically the material six typical I'll from give patterns. of just We -- and weeks typically order date you the order our shipment.

So inventory. low very keep we

second up would if obviously, impact impact the So recent the run the would first prices half. COGS, than it half more

eight Got to continents, without people, geographies about about but is you what tried particular ask it. they Australia? any you or can the had have And about it or in then Have talk are them People eight naming new of regions customers from internationally, any can Australia? all new you success? outside countries talk

Europe, well No, it's in Australia. still not Asia. It's Western as America South all parts it's of as

in regions of Europe. Brazil, Spain think and other of So can well you think Western you as can some

Got utility-scale is number it. this labor talking costs made. $X.XX projects remind cost can you Can lowering the solar last that the you that is, or one lower? is given had to you're attributable you I labor us, now trying or specifically whatever your labor about And you remind the us is you're then, the investment pricing, what with direct would just if the $X think what tracker to roughly is $X.XX,

number at depending give couldn't that can has its every looking project site, the row an reinforce number, like, is every I looks technology things what All we're I just reduces site own that that. [ph] absolute you of on modules construct because DNA simply the the say and of per substantially Jeff, Yes. nature.

we're about that. excited quite So

Got you. it. Thank

-- line Rice. the Rice from Johnson with Proceed Malloy comes question with of your Martin next John Our question. with

Good afternoon.

Marty. Hey,

software? strategy Hi. Could the for maybe an monetizing on you give your update, us

Marty. Hi, Yes.

first point value foremost, three-fold SmarTrack. have and we're on can extent, greater create that is with kind strategy that included. that the our uptake to the our with always the use at will And So be to we remains sale, currently of we tracker and here that of pleased the very

depending has customers the date, then several is at for request customer's and/or annuity by at would The purchasing be there that opportunity interested the with to already to later us commissioning. And in extent thirdly, on tracker the and the to way of that to, Array on license second deploy with be customer deploy an and there working the in front. event would respect out one a going we're software forward, then is

well. throes deployment as to gains the have seen that performance We thus quite we solution, We're that far of customers of providing the are means very the early excited certainly still software have but that where in we've is in deployed. about uptick the

very much. you Thank Great.

Thank you.

Marty. Thanks,

Proceed the Simmons with Harrison question. Our Kashy of line your from final with question Energy. comes

evening, and good for my thanks Hi, questions. taking

in commodity you time. to charges guidance, So and that the highlight over freight expectation your prices normalize

how decided take Just would on from drives normalization customers, it cost costs? passing think about curious then elevated to are to view long and what it implications -- that remain you seriously demand the to long then any and how to before how from would considered customers higher concerns need surrounding

remains economy still How think lot Nipul. just it's commodity of first prices it's of Kash, far part as a as far reopen, a unknown, really idle. the the on long Hey obviously, the is lot that as question, and it And that we're begins -- as increasing. it's it's how it's you? of So capacity -- -- pre-pandemic far as are times the as as we there unprecedented is to

second we second back evaluating thinking case And online. basis, on have as of and second know and as by look all half half on your case our our pricing it a that far when projects we'll question, are ability we coming late so. the it's and at So is we always that half we're

And you be enough. I on technology to a timeline you front, think can fair just portion? to you least the M&A at you know on you then us buy not when the I wondering refer that lot able remaining if the -- but might was could talk about, company Okay, there's give a you

couldn't I that to be and than that certain definitive milestones assessment technology way we of you met give of nature. other by need timeline, a have things

themselves pan I there proceed they as box through As then we'll satisfied is definitive need give a to because and the be we But accordingly. go out, check you elements couldn't process. that timeline the

is probably longer-term? in event asking way, you maybe a different a guess do maybe, I this or it is think XXXX

that. commit couldn't to you. tell I couldn't a on date I Yes,

medium to Okay, how all And you me. term? that's about right. the on for think from business. innovations I see you're if the the about could last that it separate that of you with ASPs to the enough. And from investing me. just four R&D wondering Fair the then release, one Thanks. impact was the highlight future of talk Good press over

deploy. don't this large you'll I a play -- we or Yes. longer is see impact think an a term. on This Medium medium as long is term,

think can first-half beyond. 'XX the out out years You -- and of -- in it 'XX of

from it me. That's it. Got you. Thank

Thanks, Kashy.

for the end reached closing the remarks. turn question-and-answer to And of call I session. have like back We to our would management over any

going Array our to how that last for Again, are about where and all proud carry am thank forward growth about accomplished XXXX excited we plan you. our year. and forward. want excited into the Yes, We're performance I reiterate team of certainly just to certainly we I that

So with that, I'd like to everyone. thank

with And concludes today's that, teleconference. this

you day. at participation a your and this now lines have disconnect for wonderful You Thank time. may your