Fluence Energy, Inc.

and thank you for standing by. Welcome to the Fluence Energy fourth quarter 2022 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there'll be a question-and-answer session. To ask a question during the session, you'll need to press star 1-1 on your telephone. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Lexi Tinmaye, Vice President of Investor Relations, please go ahead.

Thank you. Good morning and welcome to Fluent Energy's fourth quarter 2022 earnings conference call. A copy of our earnings presentation, press release, and supplementary metric sheet covering financial results along with supporting statements and schedules, including reconciliations and disclosures regarding non-GAAP financial measures are posted of our website at FluenceEnergy.com. Joining me on this morning's call are Julio Navreda, our President and Chief Executive Officer, Manu Seau, our Chief Financial Officer, and Rebecca Boll, our Chief Product Officer. During the course of this call, Fluence Management may make certain forward-looking statements regarding various matters relating to our business and company that are not historical facts. Such statements are based upon current expectations and certain assumptions and are, therefore, subject to certain risks and uncertainties. Many factors could cause actual results to differ materially. Please refer to our SEC filings for our forward-looking statements and for more information regarding certain risks and uncertainties that could impact our future results. You are cautioned to not place undue reliance on these forward-looking statements. only as of today. Also, please note that the company undertakes no duty to update or revise forward-looking statements for new information. This call will also reference non-GAAP measures that we view as important in assessing the performance of our business. A reconciliation of these non-GAAP measures to the most comparable GAAP measure is available in our earnings materials on the company's investor relations website. Following our prepared comments, we will conduct a question and answer session with our team. During this time, to give more participants an opportunity to speak on this call, please limit yourself to one initial question and one follow-up. Thank you very much. I'll now turn the call over to Julian. Thank you, Lex.

I would like to send a warm welcome to our investors, analysts, and employees who are participating on today's call. Additionally, I would like to welcome a new CEO. our new CFO. Manu joined us in September and has already made a significant impact on the organization in a short period of time. Welcome, Manu. Today, I will provide a brief update on our business and then review our strategic objectives, as well as some examples of the actions we've already taken towards this goal. Following my remarks, Manu will discuss our financial performance, as well as our outlook for fiscal year 2021. I'm pleased to report that our team recognized $442 million of revenue in the quarter. Delivered our highest quarterly revenue in Fluency Eastern and deployed more than 1 gigawatt hour of energy storage solutions. More importantly, we achieved positive growth margins for the quarter, both on an adjusted and gap basis. Our demand was strong across all three of our business lines, and new orders were approximately $560 million. Furthermore, our signed contract backlog as of September 30 was $2.2 billion and year-to-year increase of around 30%. Lastly, our recurring revenue risk, which consists of our services and digital business, experienced strong growth throughout the quarter. Notably, our service attachment rate of 190% for the first quarter was in line with our expectations, illustrating the catch-up in service contracts we anticipated during our previous earnings group. Our digital business added nearly one gig of assets under management since the third quarter, providing us visibility to future revenue. Turning to slide five, over the past 90 days, the senior management team and I have conducted a deep dive potential funding support. We confirmed that Fluent's energy storage solution business has tremendous tailwinds across the globe, including from the Inflation Reduction Act in the United States, often owned and hired, and Europe's growing desire for increased energy security and independence. Although our digital business has strong potential, we have determined that the platform and business model will benefit from simplification and tighter integration with our storage solutions. For example, our Cori Mosaic product is not able to expand into new markets quickly due to its current tech architecture.