Summary of Third Quarter Financials:
Revenue was $188.6M in the third quarter of 2022, compared to $143.9M for the third
quarter of 2021 including warrant charges. Revenue growth stemmed from the core
material handling market, new products and markets, and recent acquisitions. Revenue for
the third quarter of 2022 includes $8.6M in warrant charges versus $1.3M in the third
quarter of 2021. We recently shared that our 2022 revenue could be potentially 5-10% below
our prior previous target of $900-$925M given some larger projects potentially being
completed in 2023 instead of 2022 due to timing and broader supply chain issues. We
believe it is important to note that the midpoint of our updated projection still reflects
potential growth of nearly 70% year over year. We want to remind you that this is not a
demand issue; this is largely a function of delays due to supply chain and timing of some
large projects.
Overall company gross margin of negative 24% decreased 3% sequentially and was down
2% year over year. Gross margin in the fuel cell systems, related infrastructure and
equipment was 19% in the third quarter, flat sequentially. This line item now consists of a
blended margin from both more mature fuel cell applications for the material handling
business, as well as rapidly scaling new product lines including electrolyzers, on-road
mobility, and stationary power. In addition, fuel margin remained under significant
pressure due to increased hydrogen molecule cost associated with historically higher
natural gas prices and continued supplier disruptions.