Tracker Firm FTC Solar’s Net Loss Narrows by 34% YoY as Product Margins Improve
The Q3 revenue reached $30.55 million, marking an 84.3% YoY increase
U.S.-based solar tracker systems provider FTC Solar‘s net loss of $16.94 million during the third quarter (Q3) of the financial year (FY) 2023, a year-over-year (YoY) improvement of 34% from a loss of $25.64 million.
The drop in loss was driven by significantly improved product direct margins and lower warranty, retrofit, and other indirect costs.
The company’s revenue for the quarter stood at $30.55 million, a YoY increase of 84.3%.
The revenue reflects a 5.6% decrease from the previous quarter due to reduced logistics volumes. However, compared to the same quarter last year, revenue saw an increase given the higher product volume.
FTC Solar’s loss from operation during August-September was recorded at $16.28 million, a YoY decrease of 39% from $26.69 million.
The company reported Q3 revenue in line with expectations and achieved a fourth consecutive quarter of gross margin improvement. FTC Solar said adjusting for unexpected factors, gross margin, operating expenses, and adjusted EBITDA would have exceeded or met the high end of target ranges.
The company’s project backlog stood at approximately $1.6 billion, with approximately $60 million added since August 9, 2023.
Efforts to enhance the product cost structure contributed to margin improvement, complemented by the successful launch of the 1P tracker solution Pioneer. The company said it remains focused on cost control and strategic investments for long-term growth.
Shaker Sadasivam, Chairman of the Board of FTC Solar, said, “Much of the last two years has been about repositioning the company to be in the right markets with the right technology and cost structure to enable our profitable return to above-market growth rates,”
Sadasivam said a leadership transition is underway as CEO Sean Hunkler and CFO Phelps Morris depart by December 2023. Cathy Behnen, the Chief Accounting Officer since 2020, steps in as interim CFO, ensuring continuity amid the changes.
During the first nine months (9M) of the year, the company’s net loss was recorded at $39.11 million, a YoY improvement of 50.5%
For 9M, the company recorded a revenue of $80.93 million, a YoY improvement of 85%
During this period, the company’s loss from operations stood at $39.04 million, an improvement of 51% YoY.
The company’s order backlog has grown to $1.6 billion, with $259 million added since May 10.FTC Solar’s net loss narrowed to $11.8 million for the Q1 FY 2023 from $27.8 million YoY despite declining revenue because the cost of revenue associated with engineering services saw a sharper cut.
FTC Solar, Financial Results, Revenue, Net Income, Trackers The company recorded a net loss of $99.6 million during FY 2022, a decrease of 6.47% YoY from a loss of $106.5 million.