Business Overview
Beam Global (NASDAQ:BEEM) is a leading innovator in the clean technology space, developing and manufacturing high-quality, renewably energized infrastructure products for electric vehicle (EV) charging, outdoor media, energy security, and disaster preparedness. The company's unique and patented solutions are transforming the way the world charges and powers its vehicles, while also providing critical emergency power capabilities.Beam Global's product portfolio includes the EV ARC™, a rapidly deployed, off-grid EV charging system powered by integrated solar panels and battery storage; the Solar Tree® DCFC, a single-column mounted smart generation and energy storage system capable of providing 150kW DC fast charging; the EV ARC™ DCFC, a DC fast charging system comprised of four interconnected EV ARC™ units; the EV-Standard™, a lamp standard, EV charging, and emergency power product; and the UAV ARC™, an off-grid, renewably energized and rapidly deployed product for charging aerial drone fleets.
The company's key differentiators include its patented renewable energy products that dramatically reduce the cost, time, and complexity of EV charging infrastructure installation and operation compared to traditional, utility grid-tied alternatives. Beam Global's proprietary energy storage solutions, first-to-market advantage, and ability to operate during grid outages set it apart from the competition.
In 2022, Beam Global expanded its capabilities through the acquisition of All Cell Technologies, LLC, a battery technology company. This acquisition has enabled the company to offer its Beam AllCell™ energy storage technology, a highly flexible lithium-ion and/or lithium iron phosphate battery platform architecture with a unique safety mechanism to prevent thermal runaway.
More recently, in October 2023, Beam Global acquired Amiga DOO Kraljevo, a Serbian manufacturer of specialized steel structures and equipment, including streetlights, communication towers, and energy infrastructure. This strategic acquisition has strengthened Beam's European presence, increased its production and engineering capabilities, and provided access to new customer segments.
Financial Performance
Beam Global reported annual revenue of $67,353,000 in 2023, a significant increase from the previous year. However, the company continued to operate at a net loss, with an annual net income of -$16,059,999. The company's annual operating cash flow was -$13,307,000, and its annual free cash flow was -$14,364,000.In the first quarter of 2024, Beam Global generated record revenues of $14,561,000, a 12% increase compared to the same period in 2023. The company's gross profit margin improved significantly, reaching 10.2% in Q1 2024, up from just 0.04% in the same quarter of the prior year. This improvement was primarily driven by cost reduction initiatives and increased production efficiencies.
The company's net loss for Q1 2024 was $3,037,000, a notable improvement from the $3,831,000 net loss reported in Q1 2023. Excluding non-cash expenses, the net loss for the quarter was $1,900,000, or 13% of revenue.
Beam Global's cash balance as of March 31, 2024, was $4,962,000, down from $10,393,000 at the end of 2023. The decrease was primarily due to cash payments for the Amiga acquisition and increased inventory levels at the company's European operations.
Geographical and Revenue Breakdown
Beam Global's revenues are primarily derived from the United States, with 84% of Q1 2024 revenues coming from federal, state, and local government customers. The remaining 16% of revenues were generated from commercial customers.During the first quarter of 2024, 27% of revenues were derived from customers located in California, down from 60% in the same period of 2023. International sales, primarily in Europe, accounted for 11% of Q1 2024 revenues, up from 10% in Q1 2023.
Product-wise, Beam Global's revenues are primarily generated from product sales, which accounted for $13,570,000, or 93% of total revenues in Q1 2024. Maintenance fees, professional services, and shipping and handling made up the remaining 7% of revenues.
Liquidity
Beam Global's liquidity position remains a focus, as the company continues to operate at a net loss and generate negative operating and free cash flow. However, the company has taken steps to improve its financial position, including entering into a $100 million supply chain line of credit agreement with OCI Limited in 2023.Additionally, in 2022, Beam Global entered into a $30 million common stock purchase agreement with B. Riley Principal Capital II, LLC, under which the company has the right, but not the obligation, to sell up to 2 million shares of its common stock over a 24-month period.
The company's management remains focused on improving gross profitability and achieving positive cash flow, with a particular emphasis on efficiency and cost reduction initiatives. Beam Global's recent acquisition of Amiga is expected to contribute to these efforts, as the company leverages Amiga's manufacturing capabilities and lower-cost operating environment in Europe.
Outlook
Looking ahead, Beam Global is optimistic about the growth opportunities in the electric vehicle charging infrastructure market, both in the United States and internationally. The company's innovative products, strategic acquisitions, and focus on operational efficiency position it well to capitalize on the increasing demand for sustainable EV charging solutions.Risks and Challenges
Despite the company's progress, Beam Global continues to face several risks and challenges. The company's reliance on government and commercial customers, as well as the timing of their purchasing decisions, can lead to uneven order patterns and revenue recognition. Additionally, the company operates in a highly competitive market, and its ability to maintain its technological edge and cost advantages is crucial.Beam Global's ongoing need for capital to fund its operations and growth initiatives also presents a risk, as the company may need to raise additional funds through equity or debt financing, which could result in dilution to shareholders or increased debt obligations.