ESS Tech, Inc. (NYSE:GWH) Q1 2023 Results Conference Call May 9, 2023 4:30 PM ET
Company Participants
Eric Dresselhuys - Chief Executive Officer
Vince Canino - COO
Benjamin Heng - SVP of Engineering
Mark Bindon - Vice President of Customer Success
Steve Figgatt - CEO, Sycamore International
Paul Lau - Manager, Tech Solutions Architect
Tony Rabb - Chief Financial Officer
Conference Call Participants
Colin Rusch - Oppenheimer
Chip Moore - EF Hutton
Elijah Obasanya - Loop Capital
Operator
Welcome to ESS Tech, Inc.'s First Quarter 2023 Earnings Call and Operational Review.
Please be advised that our remarks today, including the answers to your questions, may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act. These forward-looking statements are subject to risks and uncertainties that could cause actual results to be materially different from the expectations contemplated by these forward-looking statements. Those risks include, among others, matters that we have described in our earnings release as well as our filings with the SEC, including our annual report on Form 10-K and our quarterly reports on Form 10-Q. We disclaim any obligation to update these forward-looking statements.
During this conference call, we may discuss certain non-GAAP financial measures, including adjusted net income and adjusted EBITDA. Reconciliations of these measures to the closest GAAP measures can be found in the earnings release we issued today.
With that, I'll turn the call over to Eric Dresselhuys, ESS' CEO. Eric?
Eric Dresselhuys
Today, I will make some opening remarks about the quarter followed by a deeper dive on our business operations. Many of you have expressed interest in learning more. So, I'm excited to have Vince, Ben, Mark and Tony on the call today to spend some extra time updating you on our progress. As you have likely seen by now, our financial results related to revenue recognition in Q1 did not meet our expectations. As you may remember from our previous call, we gained momentum at the end of 2022 with increased energy warehouse shipments and had hoped to start recognizing more revenue for these shipments sooner.
We were able to recognize revenue for two units in Q1. One of those was delivered to Schiphol Airport in Amsterdam, and we've been pleased with the excitement generated from its delivery. However, while 10 of the shipped units have arrived in port due to delays with that project, they are still awaiting final delivery. This means that we have yet to recognize revenue for those units. We have also built nine additional energy warehouses in Q1 for that project. But given the project delays, we are waiting to ship the units until we receive clarity on project timing.