Beam Global (BEEM) Reports Substantial Revenue Growth in Q3 2023
Beam Global (NASDAQ:BEEM) announces a 149% increase in quarterly revenue year-over-year.
Year-to-date revenues surge by 236%, with significant improvements in gross profit margins.
Company reports successful oversubscribed public offering and a robust pipeline of $112M.
Beam Global (NASDAQ:BEEM) remains debt-free with a $100 million line of credit untouched.
On November 14, 2023, Beam Global (NASDAQ:BEEM) released its 8-K filing, announcing its financial results for the third quarter ended September 30, 2023. The company, a leading provider of innovative and sustainable infrastructure solutions for transportation electrification and energy security, reported a significant increase in revenues and gross profits, alongside strategic expansion moves in Europe.
Financial Performance Overview
Beam Global (NASDAQ:BEEM) reported a remarkable increase in quarterly revenue, reaching $16.5 million, which represents a 149% growth compared to the third quarter of 2022. Year-to-date revenues also saw a substantial rise, amounting to $47.3 million, marking a 236% increase over the previous year. This growth is primarily attributed to heightened sales to federal, state, and local governments.
The company's gross profit for the third quarter stood at $0.3 million, or 2% of sales, showing a significant improvement from a gross loss in the same period last year. Year-to-date gross profit, excluding non-cash items, reached $1.5 million, or 3% of revenues, demonstrating a 9% improvement in gross profit margin over 2022.
Operational Highlights and Expansion
Desmond Wheatley, CEO of Beam Global, highlighted the company's record-breaking quarter, stating:
"The Beam team delivered another record-breaking quarter while also continuing to improve our products and sell them to an ever-expanding group of quality customers."
Wheatley also emphasized the company's successful expansion into Europe, with the acquisition of Amiga DOO, which added a significant number of employees and facilities to the company's operations. The European team is already actively engaging with customers and integrating with the American team to enhance Beam Global's market presence.
Financial Health and Capitalization
Beam Global (NASDAQ:BEEM) remains in a strong financial position, ending the quarter debt-free with $14.8 million in cash, a significant increase from the end of 2022. The company's working capital also saw a substantial boost, from $6.8 million to $34.4 million, thanks in part to a successful public offering that raised $25 million net of expenses. This capital raise is intended to support the European acquisition and strengthen the company's balance sheet.
Despite the impressive revenue growth, Beam Global (NASDAQ:BEEM) reported a net loss of $3.6 million, or 22% of revenue for the third quarter, which is an improvement compared to the net loss of $6.8 million, or 103% of revenue, for the same period in 2022. The year-to-date net loss includes non-cash expense items such as depreciation, intellectual property amortization, and non-cash compensation expense.
Looking Forward
With a backlog of $31 million and a pipeline of over $112 million as of September 30, 2023, Beam Global (NASDAQ:BEEM) is well-positioned for future growth. The company's strategic initiatives, including its expansion into the European market and its focus on sustainable infrastructure products, are expected to continue driving its success.
Beam Global (NASDAQ:BEEM) will host a conference call to discuss the financial results and provide updates on corporate developments, where management will also address questions from participants.
For value investors and potential GuruFocus.com members, Beam Global's (NASDAQ:BEEM) latest earnings report reflects a company on the rise, with significant revenue growth and strategic expansion positioning it for potential long-term success. The full details of the financial results can be reviewed in the company's 8-K filing.
Explore the complete 8-K earnings release (here) from Beam Global for further details.
This article first appeared on GuruFocus.
