Pineapple Energy Inc. (NASDAQ:PEGY) Q4 2022 Earnings Call Transcript

Kyle Udseth: Yes. So in terms of the financials, I don’t feel comfortable disclosing it now just because we haven’t talked about that with Eguana and I want to respect the partnership. You know, I think that some amount of that’s probably going to be public or you can at least back into approximations when we file our Q1 results and you see the financials on certain line items. But just at Eguana, we haven’t talked about it. I don’t really want to get too much into the terms. But it’s a meaningful starting point amount of revenue for the E-Gear business. And then in terms of the technology itself, a couple things; one, the technology has been in place and has been deployed across thousands of systems in Hawaii over the past couple years.

Those are majority our own systems. It was one of the reasons Eguana has been such a good partner is because we have full access to the battery cabinet to deploy our hardware, our firmware, and then our software, aggregating the distributed energy resources and kind of talking up to the cloud layer into the utility. And so it’s well proven and tested and I don’t believe there’s any device that can match our capability set for being able to interface with the utility over as many standards meet the needs of every different tariff and grid services program there and control as many different states of the consumer battery, whether it’s across ZigBee or Bluetooth or a WiFi connection or that, it uses IEEE 2030.5 standard. So it’s really best-in-class technology and it’s in the field and proven.

I think it has applications far beyond the Hawaiian market. And I think that’s in a sense, what this licensing deal is all about is that Eguana has a strategy to go much more broadly than Hawaii or some of the markets that they’ve had the majority of the installs with these devices to date. And it’s really why they wanted to do this is they want to be able to have this best-in-class energy management control device and that hardware, firmware, software that they can now customize, and that pairing together and go expand into other markets both domestically and abroad.

Donovan Schafer: Okay. And I’ll take €“ I’ll jump back in the queue, or I guess, you can just check in, operator, if there are other questions in the queue. I’ll let other people take a turn and I’ll jump back in line, but otherwise I certainly have more questions. So we can go either way. Operator?

Operator: Feel free to finish your questions now, sir.

Donovan Schafer: Sure. Okay. Yes, so for the guidance for 2023, $80 million to $85 million. Yes, now we’re pretty much at the end of the first quarter. I’m curious, if you can help us get some kind of cadence. You made comments around seasonality. And I think in Long Island or New York, it’s sort of a second quarter, third quarter, and then Hawaii, it’s more third quarter, fourth quarter or the peak seasons. But you figure if you’re a fast growing company and everything that might override a lot of the seasonality anyway. So would we see like sequential improvements in revenue throughout the year? Or is it still going to be maybe like moderation in the fourth quarter given SUNation the bigger piece of things, just any kind of elaboration around color €“ I mean, sorry, like cadence of revenue in the year that’d be great.