Highlights:
(1) All time high installation pace
• 3,214 installations versus 1,745 same quarter last year, up 84%
• 2,215 unit sales versus 2,398 same quarter last year, down 8%, sequentially up 13% from Q1, accelerating the pickup from the previous quarter.
• IFRS Revenues up 2x versus last year, helped by higher ticket sizes
• Gross margin at 21%; Gross margin generated at 24%
(2) Strong quarter for subscription portfolio
• Substantial capital deployed: NOK 133m Subscription SPV Capex versus NOK 31m same quarter last year, up 4.2x
• Strong uptick in IRR, at 12.4% for projects installed this quarter v.s. 9.7% same quarter last year
(3) Opex and efficiency improving as business scales
• Created a shared service center in Madrid, reducing cost, improving flexibility and enhancing access to international talent
• Reduced 50 FTEs in mature markets and lowered need of ∼50 FTEs in new markets, taking down our country operating costs
(4) Set up for high speeds and improved profitability into 2024 - 2H of 2023 expected to look similar on installations as 1H with expected improvement in sales.
***
This was once again a record quarter for Otovo in terms of installations, as Otovo grew to a run rate of thirteen thousand installed units per year.
- With another set of record installation numbers and more revenue per customer, good things came together this quarter for all time high revenues. With barriers removed in installations and value chains, and a seeming start to a rebound in sales, our view is rather hopeful for the autumn, says Otovo’s founder and CEO, Andreas Thorsheim.
Q2 was also a strong quarter in terms of margins, with a substantial improvement to IFRS reported margins back above 21%. Gross margin generated that also accounts for the value creation in the subscription segment came in at 24%. This quarter, Otovo brought its operations and marketing resources together in Madrid in order to harness the pan-European position built over the last few years, leveraging a flexible, cost-effective and highly skilled central team.
Being exposed to 13 different European markets with varying customer acquisition costs enables Otovo to grow where it is more cost-effective and value accretive, a capability which reaches its full potential when paired with an ability to move operational and human resources.
- The added focus on shared resources in Madrid, which complements our capital light marketplace model gives us a lot of flexibility. This strategy gives us a cost advantage over competitors with more resource-intensive models, strengthening our competitive position, Thorsheim comments.
With our exposure across Europe, currency was a major topic this quarter as the NOK weakened relative to other currencies. This had a strong positive effect on reported revenues, ticket sizes, gross profits, as well as portfolio value.
- Moreover, throughout the quarter, the cost of solar hardware continued to fall, rendering solar more affordable for consumers, as did installer labour. I see this trend continuing and helping to boost sales, says Thorsheim.
***
Please find attached the quarterly report and the quarterly presentation that Andreas Thorsheim (CEO) and Petter Ulset (CFO), will provide at the webcast at 09:00 13 July, that can be obtained through the following link: https://my.demio.com/ref/0lJ9X3Pza1Di1Vkf
***
Disclosure Regulation
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
Metrics used in this notice are defined in the attached financial report.
***
About Otovo: For homeowners, Otovo is the easiest way to get solar panels on the roof, and batteries in the home. Otovo is a marketplace that organizes hundreds of local, high quality and qualified energy installers. The company uses its proprietary technology to analyze the potential of any home and finds the best price and installer for customers based on an automatic bidding process between available installers.
Follow us on investor.otovo.com for reports, financial calendar, contact details and more.