Zinc battery firm Eos Energy Enterprises had a disappointing Q4 2022 with revenue falling both year-on-year and quarter-on-quarter, although its orders booked and order backlog continue to grow strongly.
In its full-year results for 2022, the company said revenue reached US$17.9 million, nearly four times higher than the US$4.6 million the prior year. But the final quarter of the year did not follow the same trend, and perhaps should come as no surprise after the company warned in November that it would not achieve its initial guidance for full-year 2022 revenues.
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Q4 2022 revenue of US$2.7 million was less than half that of the previous quarter – US$6 million in Q3 2022 – and 13% lower than the US$3.1 million reported for Q4 2021.
The full-year figure was 64% lower than the US$50 million in 2022 revenue Eos was initially guiding for before announcing in November that target would not be achieved, hinting that supply chain issues were the cause. Supply chain has been an issue across the sector and was a major talking point at Energy Storage Summit last week.
Q4 revenue was mainly driven by the completion of an 80MWh project for developer Pine Gate Renewables. A major order booked during the period was a 3MW/35MWh system for a hybrid renewables microgrid in California part-funded by the California Public Utilities Commission.
Eos sells a stackable energy storage system based on proprietary zinc hybrid cathode technology configured for different applications. Its main product is the Eos Cube for the commercial and industrial (C&I) or utility-scale sectors.
Eos has grown its ‘booked orders’ by 146% to 1.4GWh, worth US$338.6 million in revenues. Booked orders means deals with legally binding agreements executed by both parties. Its ‘orders backlog’ meanwhile grew even faster at 214% to 1.9GWh and its pipeline, which includes technical proposals and non-binding quotes, is now at 29GWh.
CEO Joe Mastrangelo said: “Heading into 2023, we believe we are in one of the strongest positions in our company’s history as we continue to see a shift in the demand for longer duration energy storage. The passage of the Inflation Reduction Act and our progression through the DOE loan due diligence phase provides the growth catalysts to expand our increasingly commercially viable technology.”
The firm is mainly targeting California, Texas and New York.
The company’s share price sits at US$2.19 at the time of writing and does not appear to have been materially affected by the results which were within the new guidance. See all previous Energy-Storage.news coverage of Eos Energy Enterprises here.
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