Release Date: November 29, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Eguana Technologies Inc (EGTYF, Financial) has made significant progress in utility channels, particularly with BC Hydro, showcasing their smart battery integration.
- The company has reduced cash expenses by approximately 50% year-to-date compared to 2023, demonstrating effective cost management.
- Eguana Technologies Inc (EGTYF) has developed a comprehensive technology stack, including hardware and cloud services, which is a major differentiator in the utility market.
- The company has successfully integrated new battery technology into its product line, achieving higher density and lower costs, which is expected to improve gross margins.
- Eguana Technologies Inc (EGTYF) has maintained a strong company culture, resulting in minimal turnover despite significant cost-cutting measures.
Negative Points
- Revenue for Q3 2024 was significantly lower at 0.3 million CAD compared to 2.5 million CAD in the same quarter of 2023, due to macroeconomic factors and a downturn in consumer spending.
- The company faced challenges with international partnerships, leading to the closure of operations in Europe and Australia due to lack of traction.
- Eguana Technologies Inc (EGTYF) continues to experience financial constraints, which may impact future business options.
- The renewable energy market remains constrained, with high distribution channel inventories and low consumer spending affecting sales.
- The company has faced slow payments from partners, impacting cash flow, although progress payments are being received.
Q & A Highlights
Q: How much of a discount did you have to give BC Hydro for this exclusivity?
A: Justin Holland, CEO: We did not have to give any pricing discounts. The units have been sold at full value. This is going into specific feeder lines to strengthen the grid for BC Hydro and to provide concrete data on the effectiveness of fully integrated batteries on a power grid.
Q: Is VPC paying the bills?
A: Justin Holland, CEO: Yes, they are paying their bills, although it is slow. We receive progress payments weekly or biweekly, amounting to about 1.1 million. We continue to work directly with the DPC and Omega teams and anticipate ongoing collections.
Q: Can you go into more detail on the IOU and smart meter company collaboration?
A: Justin Holland, CEO: It is a longer-term collaboration that is very exciting, particularly for the development team. It provides direct channel entry into tier one or larger utilities. More information will be shared as the collaboration develops.
Q: Are you changing manufacturers with the new manufacturing capacity in Canada?
A: Justin Holland, CEO: We are not changing manufacturers. We are happy with the quality from Omega. We are changing some of the box build capacity for assembly and testing to prepare for potential changes in the political landscape and tariffs between Canada and the US.
Q: How much turnover has there been with all the cost-cutting?
A: Justin Holland, CEO: We have had very little turnover related to cost-cutting. The team has been exceptional, continuing to drive their objectives forward. We have not lost many team members and have not jeopardized any of our objectives despite cutting almost 50% of costs.
Q: Why will BC Hydro be different from previous big announcements?
A: Justin Holland, CEO: This engagement is further down the process path. We already have 200 consumer sites identified, with over 40 having had site assessments. We have finished goods available, and the target is to complete the program by spring 2025, which is a fast timeline.
Q: Do you think your technology is the best for residential utility applications, and if so, why?
A: Brent Harris, COO: Our technology is the best because it was developed specifically for this application. Unlike other storage products adapted from solar or off-grid inverters, our technology integrates easily with utilities and DERMS partners, offering superior performance and readiness.
Q: When will BC Hydro revenue come in?
A: Justin Holland, CEO: We expect shipments to happen this year, showing revenues in Q1. The utility's objective is to finish the entire program by spring 2025, ensuring timely revenue recognition.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
