Energy Vault Reports First Quarter 2024 Financial Results

• Revenue of $7.8 million from recognition of Utility and IPP storage projects, in-line with expectations; Licensing revenue from GESSOL in Southern Africa is expected later in 2024
• GAAP Gross Margin of 26.7% driven by strong management and execution on US battery projects
• Cash OpEx of $16.7 million, improved 22% year-over-year and 14% quarter-over-quarter
• Quarter-end Cash and Cash Equivalents of $136.8 million, within Q1 guidance range of $125 – 150 million

Energy Vault Holdings, Inc., a leader in sustainable, grid-scale energy storage solutions, announced financial results for the first quarter ended March 31, 2024.

“In the first quarter of 2024, the Energy Vault team continued to execute on the most important priority set at the beginning of 2023 – deployments of our first energy storage projects across multiple customers delivered on time, on budget and at the quality, safety and performance levels that meet or exceed our customer expectations,” said Robert Piconi, Chairman and CEO of Energy Vault. “We are looking forward to our Investor & Analyst Day tomorrow where we will provide insight to the Company’s strategy, business model, customer testimonials on executed projects, new product updates and 2024-25 financial guidance. We also plan to provide updates on the Gravity Energy Storage System (GESS) project in Rudong, China, our project in Snyder, Texas, new territory expansions, and project awards.”

First Quarter 2024 Financial Highlights

• First quarter revenue of $7.8 million from Utility and IPP storage projects with NV Energy and Jupiter Power, in line with prior year seasonality; GESSOL licensing revenue expected to be recognized later this year.
• First quarter GAAP gross margin of 26.7% and gross profit of $2.1 million driven by strong commissioning and construction project management, and a favorable mix of higher margin service delivery.
• First quarter net loss improved $10 million or 32% year-over-year to $(21.1) million from $(31.2) million due to lower operating expenses and higher other income.
• Cash OpEx of $16.7 million improved 22% year-over-year and 14% quarter-over-quarter due to cost-side measures undertaken in Q4 2023.
• Adjusted EBITDA improved $4.6 million or 24% year-over-year to $(14.4) million from $(19.0) million due to lower operating expenses.
• Total cash and cash equivalents of $136.8 million and no debt on the balance sheet as of March 31, 2024. Cash balance was in-line with our previously-provided Q1 2024 guidance. Restricted cash of $1.0 million as of March 31, 2024 declined from $35.6 million as of December 31, 2023.
• 2024-2025 financial guidance including revenue, gross margin, Adjusted EBITDA and year-end cash balance will be provided at our Investor & Analyst Day tomorrow, May 9^th, 2024.

Operating and Other Highlights

• Continued commissioning, testing, energization and initial operation of the first 25MW, 100MWh GESS in Rudong, China with China Tianying Inc (CNTY) (CN:000035). Extended contract with Atlas Renewable from 7.5 to 15 years.
• Completed and began commercial operation on the 440 MWh Battery Energy Storage System (BESS) with NV Energy. Built on the site of a decommissioned coal-fired electric generating facility, the grid-tied BESS, one of the largest in Nevada, is a 2-hour 220 MW system designed to store and dispatch excess renewable energy, including wind and solar power.
• Continued construction of the largest green hydrogen long duration energy storage system in the US with PG&E in Calistoga, California. The project is supported by a 10.5-year tolling agreement with commercial operation expected in summer 2024. This solidifies Energy Vault’s global leadership role in long duration energy storage and green hydrogen technology for multi-day and ultra-long duration micro-grids.
• All other operating and commercial highlights will be reviewed at the Investor and Analyst Day.