European car charger company Wallbox N.V. had a seemingly impressive year: 230,000 chargers sold, an expansion into 21 countries, and big-name partnerships with Nissan, Lyft, and more. The company took in $155 million in revenue, a 100% increase from 2021. However, the notable growth was completely offset by the operating loss of $143 million, more than twice that of 2021.
CEO Enric Asuncion said the blame for the miss was multifaceted: Wallbox partners, which distribute and resell its chargers, did not replenish their inventory at the expected rate due to sufficient stock. The There is also the geographic mix of sales: The company, which recently opened a Texas facility, is based in Barcelona and most of its sales come from Europe, where some sectors were weaker than others. Finally, in general, Q4 earnings in a given year will flag compared to Q1 of that same year, although he acknowledged the ordering pattern this time around was “unusual.”
The overall result of this, as well as downward revisions for the European EV market, is Wallbox’s ‘cost reduction program’ announced in January, which entails laying off 15% of its current workforce to generate more than $52 million in savings. “We’ve evaluated the investment profile project by project, function by function,” Asuncion said.
The actions are not expected to impact revenue but instead emphasize near-term growth goals.
"The areas impacted by these cost reductions predominantly have longer-term horizons, and while that is important, given the market variability we’ve experienced over the last year, they will be paused for the foreseeable future," he said.
Forecasts for 2023 were optimistic, and a full year revenue anywhere from $253 and $305 million. If achieved, it would represent a year-over-year growth rate between 60% and 100%.
The positive outlook, along with the layoffs, are expected to drive the business to profitability a year ahead of schedule. By Q4 2023, executives anticipate the adjusted EBITDA to breakeven and a positive adjusted EBITDA for the full year of 2024.
After reporting earnings, Wallbox stock (Ticker: WBX) remained largely stable the following days. Over the past six months, however, they have lost nearly half their value.