Tigo Energy, Inc.

Welcome to TIGO's Energy Financial Second Quarter 2024 Earnings Conference Call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a questions and answer session. Join us today from TIGO are Zivi Alon, CEO, and Bill Rushline, CFO. As a reminder, this call is being recorded. I would now like to turn the call over to Bill Rushline, Chief Financial Officer.

Thank you, Operator. We'd like to remind everyone that some of the matters we'll discuss on this call, including our expected business outlook, our ability to increase our revenues, reach cash flow breakeven, adjusted EBITDA breakeven, become profitable, and our overall long-term growth prospects, expectations regarding recovery in our industry, statements about demand for our products, our competitive position, our current and future inventory levels and their impact on future financial results, inventory supply and its impact on our customer shipments and our revenue, and adjusted EBITDA for the third fiscal quarter 2024, our ability to penetrate new markets and expand our market share, including expansion in international markets and investments in our product portfolio, are forward-looking. and as such are subject to known and unknown risks and uncertainties including but not limited to those factors described in today's press release and discussed in the risk factors section of our annual report on Form 10-K for the fiscal year ended December 31st, 2023. Our quarterly report on Form 10-Q for the fiscal quarter ended June 30th, 2024 and other reports we may file with the SEC from time to time. These risks and uncertainties could cause actual results to differ materially from those expressed on this call. These forward-looking statements are made only as of the date when made. During our call today, we will reference certain non-GAAP financial measures. We include non-GAAP and GAAP reconciliations in our press release furnished as an exhibit to our Form 8K. The non-GAAP financial measures should not be considered as a substitute for or superior to the measures of financial performance prepared in accordance with GAAP. Finally, I would like to remind everyone that this conference call is being webcast and a recording will be made available for replay at Tygo's investor relations website at investors.tygoenergy.com. I would now like to turn the call over to Tygo CEO, Zvi Alon. Zvi?

Thank you, Bill. To begin today's discussion, I will give some background on our company. its recent performance and market trends before turning the call over to our CFO, Bill Roschlein. He will discuss our financial results for the quarter in more depth, as well as provide financial outlook for the third quarter of 2024. After that, I will discuss the demand outlook and share some closing remarks before opening the call for questions. All right, let's begin. For those of you who may be new to our journey, Tygo Energy is recognized as a global leader in intelligent solar and energy storage solutions. Established in 2007, our mission is to provide smart hardware and software solutions that improve safety, enhance energy use, and reduce operating costs of residential, commercial, and utility-scale systems. At Tygo, we offer three primarily product lines. The TS4 MLPE, module-level power electronics, our flagship product, which offers a range of flexibly designed MLPE solutions to meet the diverse needs of installers worldwide. Second, GO ESS energy and storage solutions, a line of energy storage solutions built on modular components designed to be intuitive and flexible during the installation. Our GO ESS range includes the GO Inverter, GO Battery, GO ATS, and GO EV Charger. And the third one, Energy Intelligence, or our EI software platform, which includes monitoring, fleet management, and our flagship PredictPlus EI-based prediction tool for energy production and consumption. Now let's discuss our recent operational results and demand outlook. As mentioned in our last quarterly call, our revenue stabilized during the first quarter of the year, and we are pleased to report a significant sequential revenue growth of up to 30% this quarter, surpassing many of our peers during this period of extended market recovery. We conclude Q2 with $12.7 million in revenue within the previously stated guidance and shipped 378,000 MLPE devices, which translates to approximately 151 megawatts DC, assuming a panel size of about 400 watts. Our CNI business saw an increased activity highlighted by Tygo's selection as the rapid shutdown technology provider for 142 megawatt power solar installation for a large ETC in Spain, marking our largest order in history. Once installed, we believe that this will represent the largest utility project globally to deploy MLPE. We are proud to deliver the best in class with our newly introduced TS4X product at large scale. We also welcome Midnight Solar as our latest rapid shutdown licensee. This agreement empowers them to deploy innovative products containing TIGOS rapid shutdown intellectual property for compliance with safety regulations. Geographically, The EMEA region grew 20.9% sequentially and represents 55% of our total revenue in the quarter. During the quarter, we saw solid sales growth in Germany, Italy, and the United Kingdom. The Americas grew 3.6% sequentially and represents 22% of our revenue during the quarter. During the quarter, we saw solid sales growth in Brazil, driven by increasing regulatory requirements for rapid shutdown capabilities in that country. The Asia-Pacific region grew more than 124% sequentially and represents 23% of our revenue during the quarter. During the quarter, we saw solid sales growth in Singapore, Australia, and in the Philippines. Turning to an update to our newest line of MLPE. The TS4x, as a reminder, the TS4x family represents a culmination of multi-year effort to provide the CNI and utility marketplace with leading edge MLPE that are designed to satisfy the several key industrial needs. The TS4x MLPE products offer higher power, higher current solution, and maximum design flexibility, all while enabling lower overall system costs than alternatives. We are pleased to report that we have received a great reception since last quarter's rollout. We believe the TS4X family will continue to prove its safest most reliable most cost effective and most flexible and highest power mlp solution in the market in addition to the ts4x we would also like to highlight some other recent announcements we've made including the unveiling of the new tygo and story installer loyalty program for residential tv installers in a mia at inter solar europe 2024 This program will recognize the dedication of professionalism of installers who choose the Tygo solution, further supporting their continued success and emphasizing the vitality of all members of the Solox value chain. Within our EI software product line, we recently introduced a new three-tiered paid service offering with the flagship solution EI Professional. offering a centralized view of critical health and performance data or systems under management. Beyond scalable monitoring experience and simple flat price model, the ultimate SIT-EI professional package includes one-click enrollment of company-wide unlimited SIT subscription access, covering all systems under management. A portfolio-wide dashboard with prioritized view into critical data such as health status, production, performance, equipment status, local data, location data, and commissioning time tracking. And time setting feature including advanced tagging, grouping, and site filtering for improved management, maintenance, optimization, and trend analysis. The standard system by system monitoring view, now named EI Basic, remains free of charge and includes module-level resolution and insight into third-party hardware. More advanced monitoring analytics tools, historical data, and minute-level monitoring resolution, among others, are available via simple in-platform upgrades to EI Premium. Finally, we are pleased to announce that more than 520 solar installations have been enrolled in our Tygo Green Glove program, which provides premium customer experience for every phase of system installation for CNI installers. And with that, I would like to turn over to Bill.