The energy storage provider beat fiscal year guidance for both revenue and adjusted gross profit.

Fluence Energy, a global energy storage product and service provider, announced the financial results for the fiscal year 2023, ended Sep. 30, 2023.

The company posted FY 2023 revenues of $2.2 billion and $673 million for the fourth quarter. This represents a year-over-year revenue growth of 85% over 2022. Sequential growth quarter-to-quarter was 25%.

Fluence improved its gross margins to about 6.4%, increasing from the 5.2% margin losses in fiscal year 2022. Fourth quarter gross margins improved to 11.3%.

Net losses totaled $105 million for FY 2023, an improvement from the losses of $289 million in 2022. Net income was $4.8 million for the fourth quarter, representing a key milestone of profitability for the growing energy storage provider.

“I’m pleased to report that we reached a transformative milestone in the fourth quarter, achieving profitability for the first time,” said Julian Nebreda, president and chief executive officer, Fluence.

The company posted a strong quarterly order intake of $737 million, representing a 30% increase over fiscal third quarter results. The company’s total order backlog is $2.9 billion as of the end of FY 2023. The company held $463 million in cash, up 11% from the third quarter.

“As we look ahead, our market outlook is more robust than ever. We see a world hungry for sustainable energy solutions, and we believe that Fluence is at the forefront, ready to meet that demand head-on as evidenced by our recently launched Gridstack Pro product,” said Nebreda.

The company posted the following strategic objectives for its business moving forward:

Fiscal year 2024 revenue guidance of a range of $2.7 billion to $3.3 billion and fiscal year 2024 adjusted EBITDA guidance of a range of $50 million to $80 million.
Targeting $80 million of annual recurring revenue from services and digital businesses by end of FY 2024.
Entered into a new $400 million asset backed lending (ABL) facility secured by its inventory, intended to provide additional tools to manage working capital.

“This milestone [of profitability] isn’t just a financial achievement; it’s a testament to the incredible potential of battery energy storage to shape a more sustainable and resilient future,” said Nebreda.