Fluence Energy (FLNC) 9 Dec 212021 Q4 Earnings call transcript

00:05 Good day and thank you for standing by. Welcome to the Fluence Energy Fourth Quarter twenty twenty one Earnings Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions] 00:24 I would now like to hand the conference over to your speaker today, Sam Chong, Treasurer, Investor Relations. Please go ahead.

our twenty for on twenty to of fourth September everyone year fiscal one, Welcome earnings the call quarter thirty. XX:XX which ended

a that based made during begin, will meaning forward-looking of of we Reform These I Laws, like nor the or risk risks these the and remind Exchange implied statements. Before Securities These Litigation which safe actual Securities described with on the encourage are including looking by these Securities week. subject are factors, Act materially our provisions are cause discussion forward-looking could guarantees or anticipated would filed filings are Private events statements ninety are these forward other results to our next XX:XX within ended year make of to which XX:XX fiscal ten We call you this and you the and Form twenty statements to the five. will September thirty, and Federal filings be in estimates promises that statements neither and for Commission. made pursuant review and one, various of twenty upon those current include nineteen report K differ annual to management harbor uncertainties assumptions our for that material from to

as the non-GAAP earnings at over undue assessing comparable measures our to CEO, these the for and that Investor looking materials business. call Perez forward statements important view place on is I turn also XX:XX available Manuel This our statements, call page only these reliance measures update the to to most our of disclaims company GAAP XX:XX now Relations the Dubuc. non-GAAP on the company's will today, will not in ir.fluenceenergy.com. A reconciliation performance any as information. in measures speak cautioned of are obligation we You new reference such which to of

would to I to analysts, company. Sam. and our our personal overview listening I investor recent XX:XX like on guidance. update new as research developments Thank to as will base. the first going and morning, I our This and a an our Dennis share traded our to our call will welcome you, of XX:XX an provide investors, provide call are hand level over Afterwards, financial revenue a market for Fehr, and outlook employees, will discuss analyst who then I'm give extend high some business performance some customers Fluence CFO, well as who to publicly the

change the their jump I to you extend resilience will to of next their and Fluence billion almost market would four a I causes passion thanks ongoing existential problem. real with for and slide our dollars an Our services, business is the strength entire IPO has XX:XX commitment customers. on digital demonstrated to on I to solutions outlook, that products, tremendous team XX:XX Before delivering their start Climate presentation into pandemic. our and like a we contributions have to to our thank track is of It generating growth. and successfully phase quarterly best-in-class during overview team sincere our opportunity. an help earnings completed the it

world shift. further in fossil fuels are as The driving In same the now transformation renewables XX:XX this electric time. of of We finally companies, plays that the revolutions happening at is sources huge monumental this energy. to This accelerating are sector cheapest are seeing effort fact, the renewable three one electricity serious transitions issue. leading governments, that from address away citizens responsibility take and steps great towards

our planet change. to energy help address clean the is first and decarbonization to The a climate of transition

the electrification learning sits at digital of the disrupting uniquely enabling is revolution, and second Fluence intelligence traditional opportunity. these one processes, the artificial is an of and energy is revolution. redefining new electric XX:XX markets Machine third core which The three everything. are The revolutions.

it systems grid. originally not generation and digital Fluence of to power intermittent enable As for variable clean designed energy also XX:XX issues proliferate, assets for create and clean transformation renewables. handle grid energy was they the energy because store applications the

number are use on renewables percent all wide and install optimizing grid Third the Fluence capacity party energy one in As over conventional Fluence Bloomberg trillion our twenty still the to research shows generation likely recognize thirty also by Led to projects Energy is gigawatts the over thirty the Slide far alone. XX:XX is clean of energy for position uniquely one of value assets the ion retire in in hundred years. the compounds grid. is already Australia of pioneers and will ninety transition they and and by customers Fluence with over even value and industry. the of the current of in four maintain members energy five, storage and leaders will and team and applications. literally most dollars platform. New in our platform. men's replaced of investment This lithium Fluence now While next Finance with XX:XX that by further batteries storage drive energy team the Turning to hundred leadership energy of a storage is members clean solutions energy. storage, eighteen Many Fluence disruptor global situated reliability. require storage early XX:XX stages, and the well cheaper stability experienced IQ invented digital need IQ as digital our energy we require the to positioned for renewables transition our opportunity

factors apart scale. our sets biggest us competitors One is from that of our the

helps expand We the largest of ecosystem, and product cross installed that bases adoption to one have our opportunities. selling

quickly has our better the over in to with XX:XX to forecasting will cash have addressable the market. business. with we and new core an gigawatts storage contracted BNEF point a twenty twenty one four growth [ph] to six. technology in backlog, strategic installations importantly, four to and evident grow equates slide has to along come Turning that And battery annual of that and are visibility XX:XX rate in across accelerate not constantly is most scale markets solutions do tremendous flows thirty used us manufacture our future move for are be twenty to changing I us thirty total the This as is batteries. market. is enabled diagnostics. which Our seven provide us We this Enabling operate to dollars offices energy also over chain the would thirty. products, highlight percent compounding like Starting billion chemistries by supply twenty twenty evolving. to This thirty and year secured world. us between move alone. global [battery] I

BNEF For and based. XX:XX deployed are and quarter, we on services installed the gigawatts annually Also, of based aggregate twenty one and at of expected energy grow end of community had compounded storage of storage an to products seven thirty. services equates This contracted. reference, three to ninety between three twenty the point twenty energy forecast, gigawatts hundred over percent thirty one

total nearly services. limited IQ thousand eight market end under TAM can had products, because XX:XX of management For the also solar, a of energy gigawatts we enormous platform. addressable install any by vast Fluence is such at as renewable approximately pure storage gigawatts. Where but energy contracted not hydro for The do not assets, and is optimize seven point their only IQ the our for And and we our TAM the two not is most is digital storage components. This exciting Fluence potential third-party base. that means quarter, wind, the reference, have the energy so growth

contracted gigawatts. As the of the Fluence IQ four seven point quarter, end optimizing or of is has

year why Turning easy and Fluence to both, fourth our excited extremely IQ’s our seven quarter are fiscal Fluence we comprised performance to slide our in XX:XX see quarterly will deliver about the operational results. ecosystem, three it's record business of lines. So, on full In future.

twenty in lines, growth XX:XX We renewables these including of equipment by so evidenced other supporting by temporary three we two demonstrating project the revenue point two of the performance booked such, to Fluence seven based seven progress setting not IQ grew stage as to growth momentum have at sites In extremely by due were were encouraged orders which installation year workforce work charges IQ our thousand of our year customer IQ recent to a as this energy XX:XX some megawatts. experienced in our APAC two are are optimize resulted new storage new in XX:XX business increased for beyond year storage substantial platform storage. business experienced delayed As costs one percent. all-time well robust at fifty companies, of fiscal and temporary the over we our record ability one Additionally, charges, these As record resulted we COVID-nineteen. IQ, our and percent awards services recurring of fourth related importance thousand XX:XX In continued we COVID-nineteen the our contract closures twenty a have energy strong we megawatts, and the quarter, growth five able to as interruption Fluence, order Fluence of our products effect products, as gigawatts these see beyond. We build first Looking a resulted contracted our view by hundred These its to unanticipated fiscal challenged Fluence trends, strategy. platform. new compounding twenty all delays other three our excess in storage as orders, orders, over also pandemic. temporary. many sites megawatts fifty nearly like compared in as well affected shipping delays. to planned. on for Speaking This customers new of one, year, site on twenty revenue as recognition, year for almost point and gigawatts

too delays newly realistic is variant, our supply Omicron are even it of early prolong we XX:XX We disruptions further, However, ongoing still could including determination. shipping that much but global make these chain, our in managing discovered too that the to products. COVID

our the XX:XX customers which capacity in experience Fluence to an take our overheating chain at to companies in manufacturing a model. future our fourth, contract twenty will increases establishing several was a occurred on shipping negotiating to global end finalize owned over energy to from On and months, deliveries labor. of thus in terms install this term revenue customers location for with would around event for the in resulted reduce our and storage In serve the energy shipping and one, American of one We improve few an additional with including to year and have disruptions. megawatt freight experienced facility and manufacturing Tier delivered includes reliance issues make supply closely delays we in solutions I get chain, comments like also to our fiscal regional recent payments Southeast storage increases we twenty protect rates decreases event. September on twenty markets continue supply a on response, time of on liners our expedited our Vietnam provide technology, and to measures our XX:XX one ocean, We as our in to guaranteed monitor products of customers shipping distribution products ensure expect the by hundred In one served our customers our XX:XX from market to world. one. Americas. contract to delivery North one freight the XX:XX This These the costs including working a manufacturer that XX:XX facilities. delays driving completed for product contractor expenses, availability. have are to facility times, three short Asia freight multiple overheating twenty number coming contract shipping in our

[indiscernible] shutting as customer, reported from manufacturer were our the resulted mitigate been incident. damage. teams on the system as to reported incident. battery further taken Fluence, down XX:XX our facility experience customer designed As the The injuries from offline the No investigate overheating any possible the the and has in facility

the estimate incident impact in results. are any may that currently this our financial We if to able not have

a our Fluence will and by recently products accompanied available, ENGIE in ten-year portfolio future IQ a growth with our storage pleased commences three customer with XX:XX Macquarie. us a energy featuring business to lines. all project enable with the XX:XX Fluence and a that energy contract exciting accordingly. announce signed recurring first significant Taiwan. we ecosystem hemisphere recently contract information our This solar repeat of is to percent is five recurring was a truly in This revenue attachment we the on order our farm Hazelwood we for that to we to platform. update of we announce have Australia This across spectacular services a energy and one service fourth developments. achievement through cross-selling power opportunities our built and two assets total one quarter signing I’m awards, and storage sold becomes that is by fifty am optimized our some The of our provide for locations. fifteen was growth market. expand includes services play our our we Continuing line, believe platform part have these during to to storage and energy and hundred the twenty and our our thousand trading to with our quarter, As and Turning rate visibility our already of quarter, region. megawatts in slide service which us. a megawatts of our model strategy. XX:XX the large order in example in for to largest we overall strategic system a value EMEA entrance different southern the IQ reflects Taiwanese hundred our [indiscernible]. award storage shareholders to platform. announced optimize contract customer. the during services year This hundred the for see area will For contract, placed recent ten generate This next eight, XX:XX hundred I that the our the also of IQ we largest with brought energy For the a in the we of deployed Fluence customer, a This the by Europe output years one into equivalent also recognized significant tremendous contract the in be plus over An will XX:XX storage, us the to revenue. Fluence providing fourth pleased business during for Also, partners, perfect

in digital gigawatt applications. can slide the the market result Fluence enormous value one the to In are of energy, we alone, total quarter tremendous under and a XX:XX as storage, just Additionally, customers we that nine, opportunity over deliver. realizing fourth IQ addressable for of management us summary, in added front have a turning as and

with not to change, United most transition and only as that hopeful requirements, in include our may but [ph] previously BBB to domestically by allow accelerate enactment and and two stable the bill incentivize for one that, and energy many which This XX:XX regulations We I would recently have incremental deployments positioned customers a policy accelerate encouraged business. of Conference. or Not while the Nations benefit. to better are founders, needed The the Change long this In abroad. the reliability, in moves forward, to needed signal our are stated subsidies first the as we green seeing back more we and very Fluence and potential policies AES U.S. decarbonize twenty pace our are be mover experience, is of to a we projects, any in government ourself seen bill a to of meeting who Additionally, little as more upside bill bill. electric will rate advantage. and of business return a strategy recent and our infrastructure the bill from storage changes bill Biden’s like enable to model. will Climate are the XX:XX to the joint of pending supportive legislation the aligned term eighteen. seeing market addition, enacted and not thirty energy we sector robust Siemens [shelled] an skill, was including twenty demand legislation leader momentum foreign at on thank line supply Ultimately, potential relating were twenty which domestic our step venture priorities. And would Legislation, what with administration due extremely bill to do the even by infrastructure good are create relation BBB paving we internal to way our clean industry a created grid first stability increased five, governments XX:XX

and shipping are mission. We with actions these will a And they a strictly future business to tag taking line, we XX:XX transform strong global term power This visibility to cash I pandemic. continue in player, the and backlog continue AES XX:XX view supply managing Thanks us shift to operate our that, temporary from quarters. will will the which short We through billion recognition, over realize point a dollars. backlog the And and we to global long for support and ongoing impact coming best-in-class a with and the with at have to invest are significant growing a our And to delays world that we seven mitigate delays. that of Dennis. Fluence more our finally, chain we we as Siemens being challenges, flow. sustainable in we one stemming our enable to future turn continue people future. will balance revenue the in to sheet can way to company, our so term the expect as it As XX:XX

on call. Manuel, to you, and Thank everyone XX:XX the morning good

and September four of seventy and eleven ecosystem twenty doubled as the Fluence due one demand forty As of contracting a encouraging IQ from products forty seven fifty Due are Manuel and deployed growing megawatt its Services eleven, prior one, with attachment our stated, twenty slide two have year, Now, year services. the fiscal is rate twenty sold thousand storage to results, megawatts services talk COVID-nineteen, and services. our from megawatts products populating hundred XX:XX record our for sold twenty our three storage opportunities that strong IQ Fluence visibility XX:XX nine total demand twenty allocation one today's cash percent orders. you approximately delays, megawatt of our outlook years. recurring we achieved on to a our than As part backlog flows. for and both twenty to because more to due to We one service our for thirty two, discuss energy delivered temporary I chain nine elaborated, the will and hundred is fiscal and intake Turning future table. and recap second strong thousand talking contracted very fiscal fourth table. products record XX:XX the hundred site moving on the a in product numbers megawatt four hundred three XX:XX fiscal through it contracted percent. our year During of orders twenty to call, record continuous successfully energy quarter strategy contracts us out and aggregate was megawatt year. we storage In This in one which energy we we order plans. and XX:XX twenty percent. very supply our of new thousand selling for restrictions previous Despite Overall, year grew energy ecosystems and XX:XX proof of strong contracted, future products as attachment record already of very products seeing one storage with revenues exceeded provides sides. cross came successfully eleven a and through been first on our provides megawatt rate of we delays capital a

Energy market one by thousand fiscal is Our product strong tailwinds and twenty twenty stood demand hundred megawatts at at and the and being for product sixty fixed Storage pipeline Services. of from XX:XX one. proprietary generation end Turning driven the to year fourteen

standing attachment eighty from at rates twenty mentioned ten megawatts percent the thirty contracting Like our twenty and one and to services fiscal earlier. at one. hundred grew driven Fluence nine our products, remains the Moving the two while platform. three prior digital thousand under storage XX:XX grew activities by percent, pipeline Assets IQ year, year and contracted hundred management the backlog hundred twenty end robust, strong our

tremendous nine one one. twenty eight digital management hundred one, one year one digital prospects digital backlog year-end, During growth. acquired Our contracted pipeline QX year was of of was three future has hundred At strong time, fiscal that twenty and fiscal under growth megawatts was assets megawatts, and for we AMS. Since twenty megawatts. product three twenty at fiscal demonstrated while thousand end XX:XX thousand the three hundred twenty thousand six our

than digital and pipeline me out three times our faster converts typically our service Let about point that product pipeline.

under digital growth Fluence backlog exceeds contracted business and our storage. the Our of IQ twelve. IQ Turning backlog, for Fluence XX:XX that management importance deployed, products, of energy to assets slide our the combined and ecosystem the and demonstrating reflecting contracted beyond for going is

year one view twenty six million Our fiscal percent twenty delays, of resolved and twenty one with hundred twenty twenty the it hundred fourth twenty delays versus related million fourth revenue decreased temporary a a recognition of as the two. by COVID-nineteen two. fiscal fiscal revenue delayed will fiscal twenty was recognition to one as quarter quarter, result In twenty year We HX year twenty. one into eighty dimensioned whereby for shipping expectations sixty twenty revenue year fiscal percent the one twenty and XX:XX that grew from one and five of be revenue record

XX:XX versus fiscal one delays in to twenty eight year on compared the thirteen. out million eight twenty Let shipping steps twenty nine This and quarter, expenses the quarter, twenty year in are In help million effects least fiscal non-recurring that twenty me one point with is slide equipment non-recurring profit was are securing one. sixty year at of of contractors twenty terminations. In adjusted to we are two. to fifty discussed, additional COVID-nineteen and million two Tier fiscal to the six million revenue charges, nine we eight companies. we related fiscal to with of the million of Turning million two profit twenty decrease required to twenty profit one of for forecasting this twenty in-line XX:XX are compounding continued non-recurring point expenses guaranteed twenty fiscal adjusted waiting effects for negative any already in XX:XX year to other charges. was cost for fifty such and five sixty by million revenue. does which in of such fourth as the versus nine fourth shifting in fiscal million. the contract of which in represent fifteen related year half mitigate The gross as excess was As QX, items, items million, Loss on twenty one. pandemic and have a decline gross profit shipping year impact the not forty to related we taking to XX:XX other two non-recurring fifty expenses Gross project declined million related shipping Manuel project million that Adjusting negative Incident. twenty seventy first additional gross compounding incur COVID-related ocean these driven one point freight point expenses challenges million For strictly included two, Cargo seven shipping availability sixteen generated

quarter Continuing to twenty the EBITDA twenty year from fourteen, to same by impacted XX:XX of decreasing the are first gross non-recurring as twenty was one expenses slide to profit. one fiscal two. these twenty that in seeing year four currently expenses half twenty are fiscal We

one IPO to growth In of EBITDA that, Other which to future capitalized. not addition, one range fifteen did one outlook. one. point for year the increased twenty have in one billion. our we seven point expenses, three current our five our the of we in contracted revenue billion million expenses two adjusted company, the twenty the on drove fiscal are year Based guidance six four qualify million than point slide fiscal twenty and we negative recurring for related billion, revenue backlog providing eight to of which twenty support of on point Moving XX:XX to

and on of order for twenty highlight timely potential energy resulting storage that with into basis slide related guidance in revenue XX:XX have our shipping delays have to revenue to intake. seasonality ability approximately a recognize takes seasonality aligned Our hemisphere. twenty half. from seventy Northern Turning our product is HX we fiscal two. This consideration sixteen. the COVID-nineteen revenue recognition and is would from [indiscernible] to due intake. product We in our fiscal our Historically, to delays in like desires to revenues our in of our we mostly This recognized and operational XX:XX the in customers order percent second time in patterns year

during delayed is a a of fourth Page and will of to during to to twenty two leading Moving will the be revenue a second recognized usually twenty two slightly result, fiscal fiscal HX a the twenty XX:XX year caveat on twenty first lower quarter seventeen. year to that time. half half good from As However, expect one fiscal seasonality the portion revenue twenty stronger compared there results be fiscal first our that half. XX:XX for we year upcoming this

our to ahead highlight like following growth, capital we our As which look set balance strong to that we in have of would next was the we allocation phase sheet the bolstered IPO. strategy, place by

making approximately million stay to framework, structured unit ecosystem. we economics, capital, invest strong balance take will questions. always additional A avenue well a we two now strategy to focus help of as IPO XX:XX hundred is our initiatives. concludes track remarks. an the we deploy to our and acquisitions offerings M expanding have enhancing This our such executing strengthen primary us strategic to and to we revenues, XX:XX integrating strategic fifty the As eight we free and true and cash further developing Operator, AMS. recurring debt on prepared With positioned former record ready our are the of are post with

you. from Morgan. Strouse Mark first question with Thank JP Our Instructions] XX:XX [Operator comes

is Your open. line

you we Can our dig that that the welcome customers? very a second much year? the claiming just thank just specific in for you from about gives that Can to on be – Is fiscal just Yes, taking half confidence of what project in commentary this XX:XX you macro talk think comments to the questions, there based the rebound around will the markets. you're and public that you your seeing the the or is timing? in that

And shipping some delays, shipping public we good times. XX:XX reliability in the market. thanks Thank and we the level Yes, the Mark. you, and Very for coming those. of see of as us welcoming morning excited on to stabilization mentioned,

equipment and side, So confident of they and that, the styled be but progressing. we cost, our some get We have are will to there about we already mentioned into delays the that been commissioned.

the we're We have where we the – ground people bottlenecks the on are. understanding have and

So, we operation we're soon. those sites fairly in very will get confident that

the be think follow-up coming that the IPO? the then customers with? contracts potential And a revenue months as IQ the that XX:XX the upside any go impressive pretty in guidance those during that your metrics a able encouraging of thinking were customer on quick Okay. then that since update how just metrics we were prospective you're there to Manuel. quick the out Thanks, to few is, some we've you providing your far your sharing that Any There should to And we IPO, when that other had to from is follow-up kind experiencing, Digital for business. as were year? customers savings about about new

very our populate is Fluence Mark XX:XX that demonstrate give very the IQ selling wins color would and wins. all all is the you, are question. like Officer, that with opportunities we that business our to give get a well us our demonstrated. chance the is big it the getting very, that optimization well indeed Digital for line latest in more received, and They we cross market Thank platform more I ecosystem more those and Yes, but momentum. Seyed, about excited from we had a three working to we and the across create those to on XX:XX we little Chief

Thank you, here. Manuel. Sure. XX:XX Seyed,

strong for impressive specifics you hundred the uptime than runtime your and in we're nine which questions, This markets, we're is ninety of to our greater impressive, absolutely asset [indiscernible] to of KPIs. different KPIs since the Just based exciting a but a located. They note performance. in point provide some class a that, over pretty two the pretty are the of geography and lot momentum percent, had pretty we which to economic and summarized on time nine nine and inception their continuing they the bids in or you're the just is to terms submitted momentum lot upside answer terms platform, So, wanted on seeing is continuous of quarter. growth and We product of thousand and also is right. customers being wholesale of XX:XX yes,

deploying. power product for impressive of diversity can services, we many You see to of go the XX:XX and color holistic should systems, pretty pursuing, come. vision and just we're I project whole projects project storage and to we're being showcasing note of us, that Hazelwood some applications the we itself add tie which more that's connected that a being the the for energy way the combining smart to can power and but digital to it applications, world. Hazelwood The the back transform that there, and is

see if there pause to answers So, Happy let to elaborate question. your further. that me

very does. Thank it XX:XX Seyed. Thanks Yes, for That's it us. you much.

you, Thank Mark. XX:XX

XX:XX Thank you.

Credit Maheep Our Suisse. next question Mandloi from comes from

Your line open. is

I for good realize you’ve understand, and the prior welcome questions the year? and your markets. the the to thanks taking Hi, and to more the that for a second does clarity assumptions in expect half, morning delays next but flow to them just free and these of any XX:XX on cash around think transitory impact question the free cash One trying public given flow,

for CFO, you Maheep very let And much Thank to wishes. your best you more our to on me pass Dennis your Yes. specific question. XX:XX give color

XX:XX Right. the thanks side. And morning question. Good my from also for

year So not view our twenty two, within entire it twenty timing certainly overall, it twenty but for twenty fiscal the year two. change impacts does fiscal the

flow then see topics and being first out resources first as will by that we twenty throughout to there, these So, of we the we do expected. the fiscal versus be as cash in impacted in a some second two, recovery close half certainly twenty the year stronger we seeing half, will year expect that of the half are

on three, know for looking two of supply, I seeing previously you, any understand about so are as to twenty supply batteries We more but that, you Got the XX:XX visibility in and the constraints, just battery supply on just for market? then having it. into And like that? trying you kind talked twenty procuring a beyond challenges in hearing keep your about

[battery tier announced Northvolt needs. diagnostic] our significant we’re to – Europe. XX:XX XX:XX that that will stated, manufacturers immediate And will partnership yes, we we secured eventually you, online. cover as top [ph], U.S. strategic our in a in the Maheep. do come also we capacity talking have We We're Thank battery with

going we're supply So, we're large business. regional we three the three sourcing chain where and large and doing for the on regions are diversifying our areas truly in

regard, and that regionalizing exactly and we direction design So, in goes strategy that manufacturing are contract on the we supply our that our chain.

services there? one then color one that just to sort anything trying just well, more services over you housekeeping. contracts the so know hop or as Thanks. over just for I seems Appreciate understand back, added in The quarter, flattish last of as I’ll well, XX:XX and missing and contracted quarter from more quarter that backlog and me,

Yes. XX:XX you, Thank Maheep.

giving that a that think you give exactly and seeing, actually more on is why up. specific I but chance going they're I’m numbers to But regard. not more that Dennis

Maheep. Hi, Right. XX:XX

it ninety as and contracted eight September of [indiscernible], megawatt hundred one we as to hundred thousand in June thousand thirty one eighteen as we nine disclosed increased So, one backlog of thirty.

with the contracting seen. the we strong are line quarter percent we a which in increase have So, basically within sixty seeing

up I'll the later Thank Perfect. follow rest you. on. XX:XX

you. Thank XX:XX

have ISI. from West Evercore We question a James with

open. is line Your

and guys and so today, to Thanks the And Manuel, we describe was to of, the again need there markets. were had you off if good there to congrats in you was get this could Yes, market it to taking seeing the going and at the you demand to seems XX:XX curious and public welcome this you're I energy morning. level that of fast the about to on how were six connected, commentary plane last of market? were around that jump a now? and you And customers acknowledgment hear worldwide the time, type maybe kind tipping off your but be it see and so. you to point was the over in end what's have What so and certainly, big storage the of going I want months changed thinking customers time [indiscernible] on we are tipping in last hit some point seems or was

you expand in thanks we James, tell is the significant a what to we up the It Taiwan. and for Thank a very XX:XX everywhere fact building Yes. – into in into every expanded much, opportunity that true. There's subsidies We business new BBB market seen. we've demand come The our just of regulation even on we are new world. that the part got record three or on other from counting and not any additional or orders infrastructure year single other B might or of the lines in world. regulation any

project storage for renewable have expanding a India. the They every from XX:XX have commitment energy going the of that with storage substantial should example associated Nations to where They Change Climate announcing regulation it. out strong very of seen are are United We Conference the market. amount energy

in That that worldwide energy with on Yes, planet of optimization top three adoption storage we that. at we our that The expanding are at digital renewables. of the understanding solutions fact see just and significant is need market. that regions. smart are So, to with looking technology impossible a the we we decarbonize

what maybe rollout Vietnam of a some somewhat contract then come More facilities doing when should item, to but ex your a And expect here. additional those been distribute we of online supply the manufacturing to in housekeeping you've follow-up XX:XX see chain?

strategy selected in Yes, thanks already U.S. the in direction. James. manufacturing We this that goes question, Yes contract and have Yes. Europe for XX:XX our exactly on

logistic those expand give and elements is our it shipments terms products any allow to local XX:XX delays. to that content optionality will us of Also, to will it negotiating if and regions there's deliver reduce regions those or required, flexibility the do give us and that. some capacity between to are the that significantly eventually, or flexibility us to exposure We it will being our

much very is we're and direction So, in in that very, strategy. moving our exactly

those do calendar And two? come XX:XX on early twenty

up Yes. running twenty first twenty that the and Yes. by twenty perhaps XX:XX We're half of twenty saying three. might of that be end two,

got Okay, it. Thanks XX:XX Manuel.

you. Thank XX:XX

XX:XX Thank you.

comes Our of Julien from next Dumoulin-Smith America. Bank from question

open. Your line is

team congratulations and again. indeed Hey, good XX:XX morning

So, thank you for the time.

some some magnitude, ahead conservatism puts understand you to the impacts to takes, numbers the what which twenty through to project just time, of you alluded or instance things and here, quantify degree of is or etcetera, of of you you really, here? about the of the Just trying for year? how the and mitigating you the factors here? are how to And if course help have much know logistics an versus when to try could to I'm some this follow-up contract of how degree thinking in incremental you order Hazelwood that were two, thinking thinking the reflected Again, offset to can trying maybe there about incremental

thank words. Yes, kind for much XX:XX you Thanks very morning Julien, and your good again.

Yes, revenue the is contract to you exactly is what have Fluence our mean, us term seen have very story and contract of and XX:XX top measures technology, this concept. of having really, our that with value shipping ecosystem and really world. it significant by on a which offering to our but and And success. and and about our and brings they financially want in our and customer taken XX:XX potential, that ones, with is IQ chain, through platform we supply not sharing attractive. measures long-term do regionalization are manufacturing, I we customer, that the the yes, understanding happy we just that as of delays is the it, It’s long of advantage full short-term On logistics. so a discussed here is [promising] I type the to our entering market Hazelwood around see that We’re following what project the taking [ph]

give in us. liners On us to I numbers, the the we capacity ahead specific stabilization usually will top to yes, is seen color, scalable what On very, to few Dennis good prices free say more a allow short-term, to talking can a that, have we're months secure of that both very reliability. XX:XX but the we've tier and and is a

the back able see as me also The tremendous we upside where look three business contemplated of therefore, are let and ecosystem we tremendous discussion highlighted when come digital at line let business may have with that Manuel from really very all the where highlight is and Julien Hazelwood have our from we to we the how on conservative have the regards achieved that all plans Yeah, that remember we're what and a contracting products you me contract. the to quite already we side, side our XX:XX that. again, item, sell of items proud the are and in on and that we performance side of the in services been basically

Excellent, your XX:XX here, can twenty two. follow-up delays talked guys. project nuance if I about And to some you. from just one getting you Thank twenty pushed

two sort more but presumably we than the as rather You think provided be theory, provided this stronger generic the percentage XQ year basis, revenue, you half of In calendar number than approximate should the that first twenty guidance? here. about specifically guys right? go twenty forward on, to of the sort twenty two revenues talked generic percent bridge I about one of guys versus clarify of sort you that wanted this to just the here ongoing

Right, XX:XX Julien.

revenue HX. also So, stands certainly that I our second the this stronger delay but the slightly to in it's than covered not the statement see seventy typical see that seasonality HX than in would with in level stronger a before. half as becoming percent seasonality was is normal We HX, we the the

up So, not more. certainly, but percent or percent, a the there thirty than higher of some level fifty is typical there number to

will much, it. I guys. XX:XX cheers. leave it so you Got Thank there excellent. Alright,

Thank XX:XX good, Julien.

with Brian Goldman Lee We a from question Sachs. XX:XX have

Your line open. is

the I push-out projects questions. in push was right, QX XX:XX calculate ballpark, in And QX, and versus in going impacted? morning. getting the particular million of recognized Hey expecting Couple think on half twenty one fair? between mentioned of see about to And related you're if outs If that revenue What's how or ones, I for you were that the more I that twenty twenty fiscal modeling taking two. this the we dollars fifty/fifty Good many of of kind guys. seeing one and quarter all cadence hundred another? could. first is revenue Thanks are sort the or

Dennis And you. your Brian. thanks words us again, on will for on to Thank color to give on you, – good about morning Thank good more thanks XX:XX us. the And question. pass for and I your that specifics,

Hi, good morning. Right. XX:XX Brian,

been has I expect push-out, range. mentioned somewhere two. two. We year ballpark QX probably twenty you to the somewhere to regards in of forty right portion of is that a push-out would recovered think in there And the be the first larger QX in that twenty range basically, in that thirty of in and fiscal percent to a of year fiscal So, or that from into you're the half QX number QX of which percent

it Great. color. just XX:XX one on. Nice helpful second super growth And and here. That's pass backlog I'll then a

to mix give of guys last at you backlog you're well? one think mix is seven at if us would seems sense guide bit as you us products, on three so on one there context context, you one know the give backlog now then, point one supportive backlog, on of June wondering storage mentioned that that you services what the I dollar kind point the point higher, I and a it a Thanks, define could and the like in some just the in seven remind guess And rough volume comment one had one between of digital? ballpark, a revenue three point guys. basis, any how quarter to one billion just I point it billion, basis be given seven, billion contracted energy

Sure, Brian. XX:XX

on three have the the billion and side of we the the billion, out that means point the of digital point is one of then recurring as side. business So, product on seven approximately as remainder one basically the side, well services, the on

point the one about think remarks one also you we when billion and billion, guidance the certainly still as backlog. that what our and billion one regard that point are there based point in to looking seeing of we three to billion out also prepared we put potential one So, point on of we one in guidance therefore, delays HX about stated in one are the have three

what the could backlog just backlog, to four us the revenue, to you the And services Okay. XX:XX duration? as of the five non-storage not clarify digital? on going product one average portion what's that forward million, month year on remind and backlog that characterize represents two you It's hundred at last twelve it's

Right. XX:XX

side, services years in mixture to the we So, range service the on the the sites digital as of five somewhere and twelve on between the seeing years and are ten digital of somewhere to years. typical three

a regard backlog revenue covers here years. a to twelve pattern bit the more in this side to orders to forward mix. digital that up Certainly, is was So, loaded the it due overarching up of

XX:XX Yes.

allow elements If me little two to elaborate you here are bit there aa very are on that that, significant.

very, for year it The to seventy value that rate five first testament four we're creating percent which hundred has percent, Hazelwood to on them also them. XX:XX one fact of and that it the whole twenty confidence a the ecosystem got is makes one that that are is them. we that brings the offering EMEA attachment contract we providing attachment it the very package, service of ratifies the The in lot and the the is the from number. line sense and services a three rate seventy So, customers high is our whole are probably we that business a value brings seeing Overall, region, a fantastic. percent overall, in almost which

XX:XX Thanks All I'll congrats. great. I'll on. also it pass guys. that's else’s right, echo everyone

very much, XX:XX Thank you Brian.

Stanley. Stephen XX:XX We with a question from Burt Morgan have

is Your open. line

is my of apps? and XX:XX on things for touch the the the initial and IQ, level the could indications pipeline IPO. to be And next set for any as and for what in development Stephen Dave taking customer stand on could might where of update round next software Burt. software? interest conversations an Hi. much question wondering on This you congrats I if on I the was for just Thanks give Ricker so Fluence demand

morning, Seyed feedback what to very pass our on good with and Fluence us color XX:XX I customers. more Thank give you David. very the to overall, much is IQ will platform, positive, very from good exciting, happening but very

Sure. XX:XX you. thanks Thank David. And

of just Fluence a in terms more IQ. color So, little bit

strong share. that twenty to Australia percent about that markets in demand continuing the presence own we renewable are the we So, market electricity see have in a of we national a both where

we market. us. strong pretty to to in continue So, that California for grow expect is being XX:XX

sacrifices grow. that climate We we expect of the continue to in the I a made. But unfortunately, to what saw we recent because there's reason say environment, unfortunate lot Texas public

our be going software that centerpiece So, market. in to is

of our are be that we've released application capacity year. of of a lot we ramping absence in up We're centralized in the ERCOT seeing market what this for in example to the So, seen XX:XX market, volatility development Australian in team.

don't kind portfolio investment point, further, But dispatch market. of the applications. ERCOT don’t to our beyond ERCOT the we're well, see markets] built our of talked us. see thinking optimization your utilities, entry applications management – to power kind So, market kind during is as of markets we mid-term being heavily we of support integrated software XX:XX application our here goal development our priority vertically of to also Fluence for about applications as the Analyst develop [power but for market they and is [ph]. that we addressing long-term And markets top applications, presence with is Day investing We're about IQ in

fiscal the the commercialization twenty would in of three. an twenty year plan that of year product all fiscal with So, two part be business and in development aim towards

vision, lot support So, on we're things obviously making progress to and talent in with track team of investing good. there, are shaping up that us a the but

Thanks. things. maybe heading really demand split? two? backlog appreciate the you some just That's are you're you different seeing strongest maybe is in on great the one if follow-up color color. geographically, that. XX:XX Where was demand I give into to side twenty countries of the in twenty that operating on could the I And just wondering how

clarify, Fluence or IQ to on platform overall? Just David, the XX:XX

terms thinking of XX:XX portfolio product energy I more the beyond overall, just storage IQ. Fluence was in overall

to – enter Europe, see We Fluence market picking with Yes. fact that we the fast the up see that all rolling that the The in the largest honest, we XX:XX in the in the into project we IQ. record, we keep have demand fact fact markets. very be Taiwan, California

that of have three record being all contracts them. levels in examples with awarded regions we So, all in

So, synchronized it encouraging. which sort is a for regions, all is three a, of growth very trajectory

great congrats That's so much, XX:XX to and Thanks again. hear.

XX:XX David. very much, Thank you

Thank XX:XX you.

Tom from Our last comes with Curran question Research. Seaport

is line button. open. please Your mute your Tom, check

to Good morning twenty Sorry. AES Bruce add can solar internally? quote annual assume? twenty about Is you in four and that Fluence, for represents to uncertainty expect capacity, we modeling of visibility gigawatts ‘welcome those the an strategy? Curious given for as is you orders there storage? how include And much role twenty in of have are that Willis we to what do locked annum So, AES demand orders floor percentage understand Hard, you within party’. through on from per how XX:XX Die twenty assured that that planning your one to renewable five, AES

Yes. XX:XX

market I on about decision. and excited indeed, one being this establish Yes, We're Siemens company. chapter the in know history this will proved the where be new them JV AES all true thank to the a going First, of now along founders, be to kind very is you. and with be morning, have for your much, thanks their you our and very vision and public is they right and words. Tom, good that you and thank shareholder, Thank a to

pipeline for happy that. been XX:XX commitments. their So, upgrading annual has we and the On and very and the AES excited thankful are pipeline, very specific

very, is and with has years. been fluent It communication not This strong We very have them. there for a new.

is, hundred expect Fluence with is own solutions So, is of we and percentage hand and our and would with excited. our a our tailwind projects whatever We along providing plan including we XX:XX part be including, they they be own fact plans than them percent them. services we're expansion. That are hand What us. them. digital no smart their So, their will for and to we IQ, of project a with the that part going very of their are increasing numbers is our are business

of percentage building, that going be be they'll that, hundred one capacity in XX:XX And you'll to exclusively Manuel, that solar for we that percent that if go can storage to include they're whatever assume new Fluence? winning will

XX:XX Yes. that's true. Yes,

run Where I time of you before storage adjusted energy here. out squeeze XX:XX products And twenty more are divisions fiscal in one could expecting the two we exit then gross follow-up margin twenty just if to at?

XX:XX Dennis, to you one? take would like that

Right. XX:XX

what you during line [ph]. model So, the that have basically stated with in can process, in as our [proxy] a we IPO take

Great. XX:XX

still on that? So, for track

XX:XX Yes.

XX:XX questions. Thank you my for taking

XX:XX very much, Thank you Tom.

no are for Perez back other turn closing to Manuel call questions I'd to like There remarks. the XX:XX the in queue.

entire everyone. XX:XX to very extremely passionate, They analysts the they Thanks team. we And growing, expand again that that you headwinds, Thanks made and Thank we pandemic. to and strengths thank the expanding, you. customers, sincere happy the have much, for resilience our to future. I did Thank of you, that operator. investors, my a words, will we and all the shown committed, like all everyone. are have and it possible. given Thanks thank this So, a beginning more record, COVID because way – truly our to the and to so world keep XX:XX everyone, been my I power sustainable changing we at thank speech keep you like strong they circumstances own beating our and Fluence would the again, I and

Thank today's concludes XX:XX for conference This participating. call. you

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