Manufacturer of the solar balance of system components, Shoals Technologies Group, recorded revenue of $68 million in the first quarter (Q1) of 2022, a year-over-year (YoY) increase of 49% from $45.6 million in the same period last year.

The company stated that the spike in revenue was primarily driven by a record increase of 73% in revenue from components and a 40% increase in revenue from system solutions. The company recorded higher battery storage and solar product shipments to many new customers.

Shoals’ combine-as-you-go system approach, under which new customers prioritize buying components before transitioning to system solutions, led to the increase in revenues from system solutions which signifies a quarter-over-quarter (QoQ) contribution of 69% to the revenue.

The overall operational expenses amounted to $16.2 million in Q1, a YoY growth of 80% from $9 million in the same period last year.

Shoals’ gross profit rose 40% YoY to $26.3 million in Q1 from $19 million in the same period a year ago. The company attributed a higher mix of components sales in the quarter, which carried lower margins than system solutions and higher raw materials and logistics costs to the increased gross profit percentage.

The company recorded an adjusted Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) of $16.5 million, a YoY increase of 17% from $14.1 million in Q1 2021.

Shoals reported a net loss of $4.6 million in the quarter, 45% more YoY from $8.3 million in the same period last year. The company said that the loss was primarily due to debt repayment loss in the prior year, partially offset by higher general and administrative expenses and higher interest expenses in Q1 2022.

The company’s general and administrative expenses amounted to $13.9 million in Q1, a YoY rise of 104% from $6.8 million. The company said the rise in expenditure was due to higher non-cash stock-based compensation, planned increases in payroll expense due to higher headcount to support growth, and new product initiatives with new public company costs.

Shoals accumulated a net income of $10 million from operations in Q1 2022, a minor increase of 1.01% from $9.9 million in the same period last year.

Referring to Shoals’ big lead assembly (BLA), the company’s CEO Jason Whitaker, said, “Demand for the new products we introduced recently continues to grow with customer orders for our battery storage and wire management offerings, particularly strong. We continue to see strong growth across our business with our backlog and awarded orders up 67% year-over-year. We converted seven additional customers to BLA during the quarter, representing as much as two gigawatts of demand. We now have six times as many BLA customers as we did a year ago.”

Earlier this year, Shoals announced a new production unit in Tennessee’s Portland spread across 219,000 square feet. The facility is scheduled to be operational by the second quarter of the current fiscal.

Last February, Shoals Technologies raised $2.2 billion in Initial Public Offering and announced the closure of its upsized IPO comprising 88,550,000 shares of Class A common stock.