Eos Energy Enterprises Inc (EOSE) Reports Q3 2023 Financial Results
Eos Energy Enterprises Inc (NASDAQ:EOSE) reported a revenue of $0.7 million in Q3 2023, a significant decrease from $6.1 million in the same quarter of 2022.
The company's operating expenses decreased by 12% compared to Q3 2022, primarily due to a reduction in outside services.
EOSE's cash balance as of September 30, 2023, was $58.0 million.
The company's booked orders for the first nine months of fiscal year 2023 amounted to $92.7 million, resulting in an order backlog of $539 million as of September 30, 2023.
On November 6, 2023, Eos Energy Enterprises Inc (NASDAQ:EOSE), a leading provider of safe, scalable, efficient, and sustainable zinc-based long duration energy storage systems, announced its financial results for the third quarter ended September 30, 2023.
Financial Performance
The company's revenue for Q3 2023 was $0.7 million, a significant decrease from $6.1 million in Q3 2022. This decrease was due to the company beginning commercial production and shipping its first Eos Z3 energy storage systems. The cost of goods sold was $21.3 million, a 57% year-over-year decrease, driven by lower volume partially offset by one-time non-cash accounting adjustments for project commissioning and inventory reserves.
Operating Expenses and Cash Balance
EOSE's operating expenses for the quarter were $17.3 million, a 12% decrease compared to Q3 2022, primarily driven by a reduction in outside services. The company's cash balance as of September 30, 2023, was $58.0 million.
Booked Orders and Backlog
The company booked orders of $92.7 million for the first nine months of fiscal year 2023, resulting in an order backlog of $539 million as of September 30, 2023, a 19% increase compared to September 30, 2022.
2023 Outlook
EOSE provided an update to its 2023 outlook, announcing that 2023 revenue and booked orders are both expected to come in below previous guidance as the company focuses capital and resources on delivery of critical customer commitments and the launch of the first state of the art manufacturing line in 2Q24. The company reaffirmed its 2023 outlook regarding a 15% product cost reduction from Eos Z3 product launch.
CEO Commentary
Eos Chief Executive Officer Joe Mastrangelo said, In just 12 months, we completed the design and developed, manufactured, and shipped our first Eos Z3 cube, incorporating our time-tested 15-year chemistry in a simpler manufacturing process, along with a streamlined energy system configuration. The team is focused on providing stationary storage solutions that are fully manufactured in the United States and provide both the flexibility and safety the market requires.
Mastrangelo concluded, The first Z3 customer shipment is a testament to the entire Eos team and the work they do every day to meet the challenges and capture the opportunities of scaling the company. As we look at the rest of the year and into 2024, we are focused on execution, driving down costs, and building our first state-of-the-art manufacturing line that supports our path to profitability.
Explore the complete 8-K earnings release (here) from Eos Energy Enterprises Inc for further details.
This article first appeared on GuruFocus.
