FTC Solar Battles Revenue Blues, Eyes Adjusted EBITDA Profitability In Q4
Portfolio Pulse from Lekha Gupta
FTC Solar, Inc. (NASDAQ:FTCI) reported a first-quarter FY24 revenue of $12.59 million, missing the consensus estimate and showing a 45.7% decline year-over-year. The company's adjusted EBITDA loss widened to $(10.7) million from $(7.15) million in the same quarter last year. Despite the revenue blues, FTC Solar aims for adjusted EBITDA profitability by Q4 FY24, with an outlook for Q2 revenue significantly below consensus. Shares fell 3.49% to $0.5308.
May 10, 2024 | 1:48 pm
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NEGATIVE IMPACT
FTC Solar reported lower than expected Q1 FY24 revenue and a widened adjusted EBITDA loss, but aims for profitability in Q4. The Q2 revenue outlook is significantly below consensus, impacting investor sentiment.
The reported revenue miss and year-over-year decline, along with a widened adjusted EBITDA loss, negatively impact investor sentiment in the short term. The significantly lower Q2 revenue outlook compared to consensus further dampens expectations. However, the company's aim for Q4 profitability provides a potential positive long-term outlook, but the immediate reaction is negative, as reflected in the stock price drop.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100