Nuvve (NVVE) Q3 2024 earnings summary

Executive summary

• Q3 2024 marked a turning point with increased sales, improved margins, and expense reductions, though revenue was down 29% year-over-year to $1.92 million due to lower product sales, partially offset by higher services and grant revenue.

• Net loss for Q3 2024 improved to $1.65 million from $8.6 million in Q3 2023, driven by reduced operating expenses.

• Major project launches, including the Fresno EOC hub, and international partnerships such as with Taiwan Power Company, contributed to revenue and future baseline income.

• Leadership provided bridge loans and closed a convertible loan post-quarter to support liquidity; Nuvve became 100% owner of Levo Mobility LLC in October 2024.

• Backlog at September 30, 2024, was $17.5 million, expected to be recognized through 2026.

Financial highlights

• Q3 2024 revenue was $1.92M, up from $0.8M in Q2 2024 but down from $2.7M in Q3 2023; year-to-date revenue through September 2024 was $3.5M, down from $6.7M year-over-year.

• Gross margin for Q3 2024 improved to 49.3% from 9.0% in Q3 2023; year-to-date gross margin was $1.5M or 36.1%, up from $0.9M or 10.1% prior year.

• Net loss attributable to common stockholders improved to $1.65M in Q3 2024 from $8.6M in Q3 2023; nine months 2024 net loss was $12.33M (2023: $23.98M).

• Cash at September 30, 2024, was $0.3M, with an additional $3.1M raised via convertible notes in October; cash used in operations for nine months was $12.2M.

• Weighted average shares outstanding for Q3 2024: 666,894; net loss per share: $(2.47).

Outlook and guidance

• Revenue from key projects, especially Fresno EOC, expected to provide baseline income into 2025; backlog of $17.5M anticipated to convert to revenue from 2024 through 2026.

• Anticipated further growth in megawatts under management and backlog as new orders are commissioned.

• Cash burn expected to improve due to lower operating costs and better gross margins, but management expects continued operating losses and negative cash flows, requiring additional funding until profitability.

• Growth expected in commercial operations, with company-owned charging stations to become a smaller share of business.