US-headquartered electronics manufacturer Tigo Energy has published its financial results for the first quarter of 2024, which include revenues of US$9.8 million and gross profit of US$2.8 million, figures broadly in line with the company’s performance in the previous quarter.
Between the fourth quarter of 2023 and the first quarter of 2024, revenue grew by US$0.6 million, from US$9.2 million, while gross profit fell marginally, by US$0.1 million from US$2.9 million. Operating expenses were similarly stable from the previous quarter, falling from US$16.4 million in the final quarter of 2023 to US$11.9 million in the first quarter of 2024.
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Tigo Energy’s adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) losses reached US$6.3 million, an improvement over the losses of US$11.6 million endured in the previous quarter.
These results are broadly in line with the forecasts made by the company earlier this year, and while many of these figures deviate little from the last quarter’s results, they are strikingly different to the figures posted 12 months earlier. Between the first quarters of 2023 and 2024, revenue fell by 80.4%, while gross profit fell by 84.9%, which are illustrated in the graph below.
At the time, Tigo Energy chair and CEO Zvi Alon attributed the company’s strong performance in the second quarter of 2023 to the loosening of “supply constraints” that had limited product shipments in 2023.
In the following quarter, Alon argued that “a significant number of customers delayed scheduled shipments,” and the company’s stable financial performance in the following quarters suggests that these figures reflect a business-as-usual scenario, as opposed to the anomalously strong financial performance reported in the first half of 2023.
“This quarter, we started seeing meaningful progress in the reduction of industry-wide inventory overhang challenges that have persisted since the second quarter of 2023,” said Alon of the latest results. “Looking ahead, we expect our revenues and profitability to continue to improve over the remainder of 2024.”
“We are seeing a more stabilised environment in the US market and pockets of growth and recovery within the EMEA region, including restocking activity among our customers as they start to replenish their inventory.”
Alon also highlighted the launch of the company’s TS4-X series of module optimisers as a positive development. Earlier this month, VP of business development Evgeny Finkel spoke to PV Tech Premium about another of the company’s products, its Predict+ suite of forecasting tools, and how technologies such as AI can have a significant impact on the efficacy of solar projects, considering the “rapid changes” in external factors, such as power prices and weather events, that such projects are exposed to.
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