Dragonfly Energy Holdings Corp., maker of Battle Born Batteries and an industry leader in energy storage, today reported its financial and operational results for the first quarter ended March 31.
Q1 2024 financial highlights:
- Net Sales were $12.5 million, compared to $18.8 million in Q1 2023
- Gross Profit was $3.1 million, compared to $4.7 million in Q1 2023
- Operating expenses were $8.9 million, compared to $14.6 million in Q1 2023
- Net Loss of $10.4 million, compared to Net Income of $4.8 million in Q1 2023
Operational and business highlights:
- The company has begun taking orders for its Battle Born All-Electric auxiliary power units (APUs) and Battle Born Liftgate Power Systems from trucking providers and fleet operators
- Announced certification of the company’s energy storage products for use in oil and gas operations in North America
- Announced partnership with the National Forest Foundation to plant trees in honor of Earth Day
- Announced the results of a cost and sustainability assessment of the company’s patented dry electrode battery manufacturing process, which concluded that Dragonfly Energy’s process was significantly more sustainable than conventional battery cell manufacturing processes
- Announced partnership with Velociti Inc. to provide the company’s customers access to Velociti’s Instant ROI and VeloCare programs when deploying its Battle Born All-Electric APU
- Announced receipt of the Business of the Year award for 2024 at the annual Nevada Business Awards
- Announced the successful production of lithium battery cells with PFAS-free electrodes, in anticipation of tightening regulation of “forever chemicals”
“I am incredibly excited about where Dragonfly Energy stands right now as a company and our opportunities for growth over the long-term,” said Denis Phares, CEO of Dragonfly Energy. “Combining a valuable brand, a robust intellectual property portfolio, a recovering core market and the potential for rapid expansion into significant adjacent markets we believe uniquely positions us to further transform the battery industry. Our focus remains on the cost-effective domestic manufacturing of lithium battery cells, a technology we expect will be a critical component of the global energy landscape for decades to come.”
First quarter 2024 Net Sales were $12.5 million, compared to $18.8 million in the first quarter of 2023. This decrease was primarily due to lower battery and accessory sales offset by a higher average sales price. For the first quarter 2024, direct-to-consumers net sales decreased by $4.8 million, compared to $10 million in the first quarter of 2023 due to decreased customer demand for our products due to rising interest rates and inflation. OEM revenue decreased by $1.5 million, compared to $8.7 million in the first quarter of 2023 primarily due to the company’s largest RV customer changing the company’s product from a standard offering to an option. Excluding this customer, RV OEM sales were up 69% year over year for the first quarter 2024, largely due to sales to new customers such as Forest River, as well as standardization expansion of the Battle Born Batteries brand of products across Airstream and nuCamp’s product lines.
First quarter 2024 Gross Profit was $3.1 million, compared to $4.7 million in the first quarter of 2023. The decrease in the company’s gross profit was primarily due to a lower unit volume of sales.
The company had a Net Loss of $10.4 million, or $0.17 per diluted share, in the first quarter of 2024, compared to Net Income of $4.8 million or $0.10 per diluted share in the first quarter of 2023. This result was driven by lower sales partially offset by lower cost of goods sold, lower operating expenses and a decrease in other income. EBITDA in the first quarter of 2024 was $5.3 million, compared to $8.9 million in the first quarter of 2023.
Q2 2024 guidance:
- Net Sales are expected to range between $14 to $15 million
- Gross Margin is expected in the range of 24% to 26%
- Operating Expenses are expected to be in a range of $8.5 to $9.5 million