Nuvve (NVVE) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue declined 62% year-over-year to $0.8 million, mainly due to EPA funding delays and lower product sales, but net loss narrowed by 51% to $3.9 million as cost controls and reduced operating expenses took effect.

• Orders are expected to increase in the next three quarters, with some 2024 revenue shifting into 2025.

• Strategic partnerships, new SPVs, and major fleet electrification projects, such as the Fresno EOC initiative and collaborations with Wise EV and Great Power, are being launched to accelerate technology deployment and provide upfront cash.

• Focus remains on large project execution, diversifying revenue sources, and expanding megawatts under management, which rose to 27.1 MW as of June 30, 2024.

• Backlog as of June 30, 2024, was $18.2 million, expected to be recognized through 2026.

Financial highlights

• Q2 2024 revenue was $0.8 million, down from $2.12 million in Q2 2023, with product revenue at $0.37 million, services at $0.19 million, and grants at $0.13 million.

• Gross margin improved to 10.1% in Q2 2024 from 4.8% in Q2 2023, driven by better hardware pricing and a higher mix of services and grants.

• Net loss attributable to common stockholders decreased to $3.9 million in Q2 2024 from $8 million in Q2 2023, aided by lower operating expenses and non-cash gains from warrant revaluation.

• Operating expenses for Q2 2024 were $6.0 million, down from $8.5 million year-over-year.

• Cash and cash equivalents stood at $1.4 million as of June 30, 2024.

Outlook and guidance

• Revenue guidance for 2024 ($15M–$20M) has been withdrawn due to project and funding delays; no updated guidance will be provided.

• Management expects continued operating losses and negative cash flows, with additional funding needed to support operations until profitability is achieved.

• Revenue from the $18.2 million backlog is anticipated from 2024 through 2026.

• Expectation for increased orders and revenue in the next three quarters, with some revenue shifting to 2025.

• Continued focus on cost control and operational efficiency.