Gravity energy storage solutions provider Energy Vault Holdings Inc (NYSE:NRGV) on Tuesday posted USD 145.9 million (EUR 138m) of revenue for 2022 and guided for a 2023 range of USD 325 million-425 million.
This means that even at the higher end of the forecast, the company’s top line this year will probably be below what it hoped for previously. Last summer, Energy Vault guided for a two-year aggregate revenue of about USD 680 million for 2022 and 2023.
Robert Piconi, chairman and CEO of Energy Vault, commented that the new range mainly reflects a shift in the contracting strategy on roughly 1 GWh of projects where the company continues to be the integrator of choice while the customer procures the battery modules directly.
“While this results in lower revenue, it will enable us to expand the total number of projects with customers and realise higher percentage gross margins on these projects in line with our focus on double-digit unit economics and reducing supply chain, execution risk and working capital exposure,” Piconi explained and added that the new forecast allows for any potential customer-driven delays, particularly in the final quarter of 2023.
He also commented on the topic of managing the company’s operating expenses. “While revenue will be growing from two to three times 2022 levels, we are holding our operating expense flat from our Q4 2022 annualised run rate.”
Energy Vault has ended its first year as a publicly traded company with a negative EBITDA of USD 11.4 million. In 2023, the loss is seen to expand further to between USD 50 million and USD 70 million. Gross margin is expected to be in the range of 10% to 15%.
The company’s contracted and signed booked orders now amount to 1,635 MWh, representing a total value of USD 540 million. Total signed contracts and project awards now reach 5.2 GWh for a potential revenue of USD 2 billion over the coming years.
(USD 1.0 = EUR 0.948)
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