Fluence Energy, a utility-scale energy storage firm, reported a 66% narrower net loss of $12.9 million in the second quarter (Q2) of financial year (FY) 2023-24 from $37.4 million last year as it reigned in its operating expenses.

Despite an 11% fall in quarterly revenue from $698 million last year to $623 million in the second quarter, Fluence’s gross profit more than doubled from $30 million last year to $64 million.

Gross profit margin improved to about 10.3%, compared to 4.4% for the same quarter last year.

The adjusted Earnings Before Interest, Tax, depreciation, and Amortization (EBITDA) also improved to negative $6.1 million from an approximately negative $27.7 million for the second quarter last year, mainly due to lower operating costs.

Its operating expenses were $74 million, representing 11.9% of quarterly revenue, down from 17% in the first quarter.

“We delivered our third consecutive quarter of double-digit gross margin,” said CEO Julian Nebreda in a post-earnings conference call with analysts, adding that the company recognized more than $700 million of new orders.

The company’s solution business contracts stood at 900 MW in the quarter, service business at 500 MW, and digital business at 3.1 GW.

Digital backlog increased by approximately 75% compared to the same quarter last year.

The company said it was on track to start U.S. battery module production in 2024, which is expected to enable its products to meet the criteria for domestic content incentives under the Inflation Reduction Act.

1H 2024

The company’s net loss nearly halved to $38.4 million in the first two quarters of 2024 from $74.6 million in the same period last year.

Its revenue in the first half of the year dropped by 2% to $987 million from $1 billion last year. Despite lower revenue, the company’s gross profit for the period more than doubled to $100.5 million as it reduced the cost of goods sold.

In an exclusive interview with Mercom last year, Nebreda revealed the company’s plans to step up manufacturing in India to add value to the ambitions of transition economies like India, which are committed to clean energy.

The company reported a record intake of $1.1 billion in orders in the previous quarter.