Release Date: November 12, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Nuvve Holding Corp (NASDAQ:NVVE) has successfully reduced expenses with minimal impact on operational capabilities, leading to increased margins.
• Sales in the school bus business are picking up, driven by EPA funding rounds, which will positively impact future revenues.
• The company has secured a significant project with the Fresno Economic Opportunity Commission, providing a strong baseline revenue for 2025.
• Nuvve Holding Corp (NASDAQ:NVVE) has improved gross margins due to better pricing and a higher mix of service revenues.
• The company has increased its megawatts under management by 37.3% compared to the previous year, indicating growth in its core business operations.

Negative Points

• Total revenues for the third quarter decreased compared to the same period last year, impacted by non-recurring sales and delays in EPA funding.
• Year-to-date revenues have declined by 3.2 million compared to the prior year period, primarily due to reduced hardware sales.
• The company experienced a decrease in its hardware and service backlog by 0.7 million from the previous quarter.
• Nuvve Holding Corp (NASDAQ:NVVE) has a low cash position, with only 0.3 million in cash as of September 30, 2024.
• The expiration of capital contribution commitments from joint venture partners resulted in a reduction in mezzanine equity to zero.

Q & A Highlights

• Warning! GuruFocus has detected 5 Warning Signs with NVVE.

Q: Can you provide an overview of Nuvve's financial performance for the third quarter of 2024? A: David Robson, CFO, reported that Nuvve generated total revenues of $1.9 million in Q3 2024, up from $0.8 million in Q2 2024. The increase was driven by higher service and hardware revenues. Despite a year-over-year revenue decline, gross margins improved due to better pricing and a higher mix of service revenues. Operating costs were reduced significantly, contributing to a net loss decrease to $1.6 million from $8.6 million in Q3 2023.

Q: What are the key projects contributing to Nuvve's revenue and future outlook? A: Gregory Pollen, CEO, highlighted the Fresno Economic Opportunity Commission project as a significant contributor, providing critical cash flow and a strong revenue baseline for 2025. The project involves Nuvve's VGI software platform, which integrates various energy resources to optimize site energy consumption and participate in grid services markets.

Q: How is Nuvve addressing the challenges in the school bus business? A: The CEO noted that sales in the school bus segment are improving after a slow start due to delays in EPA funding notifications. Progress is being made with EPA rounds two and three, and the company is preparing for round four, which is expected to benefit Q4 revenue and extend into 2025.

Q: Can you elaborate on Nuvve's collaboration with High Power Corporation and other strategic partnerships? A: Nuvve has signed a contract with E Formula for a project in Taiwan, involving 90+ charging stations and stationary storage. This project is expected to break ground in February and has a 20-year lifespan. Additionally, Nuvve is working with Wise EV LLC on public infrastructure projects and negotiating debt financing for these initiatives.

Q: What steps is Nuvve taking to improve its financial stability and cash flow? A: The CFO mentioned that Nuvve is focusing on reducing operating expenses and improving gross margins. The company has also secured convertible loans and bridge loans from executives to support operations. Efforts are ongoing to manage cash tightly and diversify revenue sources for more stability.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.