On this page of StockholderLetter.com we present the 1/26/2024 shareholder letter from Fluence Energy, Inc. — ticker symbol FLNC. Reading current and past FLNC letters to shareholders can bring important insights into the investment thesis.

 •  1/26/2024 Letter Continued (Full PDF)
 •  1/27/2023 FLNC Stockholder Letter
 •  2/3/2023 FLNC Stockholder Letter
 •  1/24/2025 FLNC Stockholder Letter
 •  1/26/2026 FLNC Stockholder Letter
 •  More "Consumer Goods" Category Stockholder Letters
 •  FLNC Benford's Law Stock Score = 79

FLNC 1/26/2024 Shareholder/Stockholder Letter Transcript:

ANNUAL REPORT
2023


To our shareholders,
This past year at Fluence was one of
transformation, highlighted by robust financial
performance and significant advancement
on our five strategic business objectives. This
year   s performance serves as a foundation as
we continue to work towards our mission of
transforming the way we power our world. To
round out the 2023 fiscal year, Fluence finished
with $2.2 billion in annual revenue. More
importantly, Fluence generated US$4.8 million
of net income and US$20 million of Adjusted
EBITDA1 for the first time in the last quarter of
fiscal year 2023. This is a tremendous milestone
on our journey to profitability that was achieved
ahead of schedule and sets the stage for
continued acceleration toward profitable growth
OUR STR ATEGIC OBJECTIVES
1
Profitable growth
2
Products that our customers need
3
Converting our supply chain into
a competitive advantage
4
Digital as a competitive
differentiation & margin driver
5
Working better
in the coming year. I   m also pleased to report that
we exceeded our fiscal year    23 guidance for both
revenue and adjusted gross profit.
We also delivered for our customers globally,
bringing new products and capabilities to
market, deploying new energy storage projects,
and providing services, support, and digital
solutions to help customers get the most from
their operations.
Here are a few highlights from the fiscal year   s
accomplishments:
    We announced a strategic plan to develop
the Fluence Battery Pack, which combines
state-of-the-art battery modules, cells, battery
management systems, and monitoring
equipment.
    Fluence launched Ultrastack   , our advanced
energy storage product that   s designed
to transform the way transmission and
distribution networks operate.
    Fluence announced that we are one of the
first storage providers to offer U.S. domestic
content qualified storage systems at scale for
installations with deliveries beginning in 2025.
Fluence will assist customers in accessing
Inflation Reduction Act domestic content
bonus tax credits using U.S.-produced battery
modules and U.S-produced battery cells.
1 Adjusted EBITDA is a non-GAAP financial measure and is not intended to be considered in isolation or as a substitute for the financial information prepared
and presented in accordance with GAAP. For a discussion of Adjusted EBITDA, including a reconciliation to Net Income (Loss), the most directly comparable
GAAP measure, for the three months ended September 30, 2023, please refer to the following page.

    We published our inaugural sustainability
report, less than two years after our
initial public offering. The report details
our commitment to responsible sourcing,
environmental stewardship, and sustainable
practices.
    Fluence   s India Innovation Centre opened in
Bangalore and will serve as a global center
of excellence to support our rapid growth
in providing customers with market-leading
energy storage products, services, and
software.
    Fluence Mosaic    intelligent bidding software
expanded into the Electric Reliability Council
of Texas wholesale power market.
    Fluence Nispera    also expanded to optimize
the performance of energy storage assets,
marking its availability for storage and all
categories of renewables. Additionally, we
launched Nispera   s predictive maintenance
capability for energy storage systems. This
advanced technology uses AI models to
identify issues before they occur.
These results and accomplishments solidify
our position as the world   s leading provider
of energy storage solutions and optimization
software. Fluence now supports more than 7.6
GW of contracted and operating energy storage
projects globally. Additionally, our cloud-based
software products have a combined portfolio
of more than 22.3 GW of assets contracted or
under management globally.
Our market advantage is fortified by offering
our customers an ecosystem of solutions
and key competitive differentiators including
bankability, scale, supply chain security, and
industry-leading safety. This competitive
advantage is corroborated by the 2023 Battery
Energy Storage System Integrator Report
published by S&P Global Commodity Insights,
which ranked Fluence #1 both globally and
in the U.S. based on installed and contracted
capacity.
As we look to the next fiscal year, our worldclass global team remains aligned under five
strategic objectives, driven by the themes of
speed and competitiveness. We are also driven
by our purposeful mission     together we are
transforming the way we power our world. To
our shareholders, thank you for your trust and
unwavering support. We expect to continue the
momentum with even greater accomplishments
on the horizon to deliver increased shareholder
value.
Julian Nebreda
PRESIDENT & CHIEF EXECUTIVE OFFICER
FLUENCE

Forward-Looking Statements
This Annual Report contains forward-looking statements within the meaning
of the federal securities laws. See the discussion under    Cautionary Statement
Regarding Forward-Looking Information    in our enclosed Annual Report on
Form 10-K for the fiscal year ended September 30, 2023.
Reconciliation of GAAP to Non-GAAP Measures (Unaudited)
The following table presents our non-GAAP measures for the periods indicated.
Three Months Ended
September 30,
($ in thousands)
2023
2022
Change
Change %
Net loss
$4,817
$(56,185)
$61,002
109%
Interest (income), net
(1,137)
(1,175)
38
(3)%
Income tax expense
6,607
1,850
4,757
257%
Depreciation and amortization
2,814
2,216
598
27%
Stock-based compensation (a)
5,503
9,129
(3,626)
(40)%
Other expenses (b)
1,245
1,566
(321)
(21)%
Adjusted EBITDA
$19,849
$(42,599)
$62,448
147%
Add (deduct):
(a) Includes awards that will be settled in shares and awards that will be settled in cash.
(b) Amount for the three months ended September 30, 2023 includes approximately $1.2 million of costs related to the restructuring plan, including severance.
Amount for the three months ended September 30, 2022 includes approximately $1.6 million of costs related to severance only. Costs related to the COVID-19
pandemic and the cargo loss incident, which the Company had historically excluded from Adjusted EBITDA, are no longer excluded. Adjusted EBITDA results for
the three months ended September 30, 2022 have been recast for comparative purposes.

1/26/2024 Letter Continued (Full PDF)

 

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