Tue, May 14, 8:03 PM (419 days ago)
Tigo Energy, Inc.'s Q1 2024 10-Q filing highlights a significant decline in financial performance compared to Q1 2023. Net revenue fell by 80.4% to $9.8 million, primarily due to decreased demand in the U.S. and European markets, resulting in elevated inventory levels with distributors and installers. Gross profit dropped by 84.9% to $2.8 million, with gross margin decreasing by 8.5% to 28.2%, impacted by sales promotions and discounts on the GO ESS product line. Operating expenses increased, with research and development up by 11.6% and general and administrative expenses rising by 34.2%, driven by higher personnel-related stock-based compensation and professional fees. The company reported a net loss of $11.5 million, compared to a net income of $6.9 million in Q1 2023. Cash flow from operations was negative at $11.3 million, reflecting the higher net loss. However, the company improved its liquidity position, ending the quarter with $21.9 million in cash, cash equivalents, and marketable securities, due to sales and maturities of marketable securities. Tigo Energy has implemented cost-saving measures, including a 25% reduction in staffing levels, expected to save approximately $7.3 million in 2024. The company remains focused on inventory reduction and anticipates positive working capital cash conversion throughout the year.