All posts by manageBattleRoad

Nextracker: Working to Optimize the Solar Grid

Nextracker logoNextracker (NASDAQ: NXT), a provider of solar tracking solutions for solar power projects, was founded in 2013 by a team led by Daniel Shugar.  Today, Nextracker is headquartered in Fremont, California, where it still led by Shugar, who acts as the company’s Chairman and CEO, as well as one of Shugar’s founding partners, Alex Au, the company’s current CTO.  Operating with a March 31st fiscal year end, Nextracker recorded fiscal 2022 revenue of $1.5 billion, a 21 percent increase over the prior year.

Nextracker debuted on the NASDAQ on February 9th, 2023, in 30.6 million Class A common stock at an IPO share price of $24, the company netted roughly $700 million from the offering, and holds a market cap of roughly $1.4 billion.   When added to the company’s pre-IPO cash balance of $84 million, Nextracker held $818 million in cash with no debt immediately after the offering.  With a recent share price of $31, the company carries a market cap of roughly $1.4 billion.

Nextracker’s mission is to be the leading energy solutions firm in the world that enables the smartest, most reliable, and most productive solar power solutions for future generations.  The company has grown into a top provider of intelligent and integrated hardware and software solar tracker offerings that are used in both utility-scale and ground-mounted solar projects worldwide.  Nextracker’s solutions allow solar panels to follow the sun’s path across the sky, and optimize power output and performance based on this data.  With these solutions, Nextracker has led the solar industry in gigawatts shipped both globally and domestically every year since 2016.

The largest gating factors that prohibit the immense growth in the popularity of solar power solutions are cost and energy output.  Nextracker’s systems address both of these concerns, as its solar tracking offerings enable solar panels to generate the most power output possible in the most cost-efficient manner.  Nextracker claims that solar trackers produce up to 25 percent more energy than solar power projects that do not track the sun.

Historically, the solar industry has operated using its established standard sun-tracking architecture that enables rows of solar panels to move in tandem as a single unit to follow the path of the sun.  Nextracker has created the next-generation solar tracker that empowers solar panels to move independently – rather than as a single unit – to allow for more precise positioning and provide more value to customers.  We note that Nextracker currently boasts roughly 170 patents worldwide, with approximately 70 issued in the United States.

Nextracker’s customers generally encompass engineering, procurement, and construction companies (EPCs), in addition to solar project developers and owners.  Nextracker’s more than 200 customers hail from over 30 countries spanning six continents around the world.  Moreover, in fiscal 2022, 62 percent of Nextracker’s revenue came from the United States, with the remaining 38 percent of sales generated abroad.  We note that in fiscal 2021 and fiscal 2022, Nextracker had one customer, SOLV Energy, contribute at least ten percent of total revenue. For the six month period ended September 30, 2022, the company recorded a gross margin of 13 percent, along with an operating margin of eight percent.

Tags: Independent IPO research, IPO research on Manufacturing Stocks, Independent Research on Nextracker.

Mobileye Global (NASDAQ: MBLY)

Mobileye Global LogoMobileye Global (NASDAQ: MBLY), a provider of advanced driver assistance systems (ADAS) and autonomous driving technologies, is a recent addition to our Battle Road IPO Review. Founded in 1999 by Amnon Shashua, a Hebrew University professor and researcher, the company first deployed its solutions on vehicles in 2007.  Today, Mobileye is headquartered in Jerusalem, Israel, where it is still led by Shashua, who acts as the company’s CEO, President, and Director.

Mobileye first debuted on the New York Stock Exchange on August 1st, 2014.  The company continued trading on the exchange until March 2017, when it was purchased by Intel for $15.3 billion.  At the time, Mobileye’s market cap was roughly $10.5 billion. Intel’s thinking at the time, was that Mobileye’s ADAS offerings, essentially software embedded on a computer chip, would complement Intel’s core chip offerings. Perhaps realizing the lack of synergy with its core business, Intel elected to carve out the business, while retaining voting rights. Thus, Mobileye returned to trading desks on October 26th, 2022 as a spinoff of Intel.  This late-October IPO entailed the sale of 47.2 million Class A common stock shares, inclusive of the underwriters’ 30-day option to purchase up to an additional 6.2 million shares, with all shares coming from the company.  Mobileye also sold 4.8 million Class A common stock shares to General Atlantic in a private placement for gross proceeds of $100 million.  In total, with a 2022 IPO share price of $21, Mobileye generated net cash of roughly $1 billion from the IPO and private placement.  When added to the company’s pre-IPO cash balance of $774 million, Mobileye possessed $1.8 billion in cash with no debt immediately after the offering.

Mobileye is a pioneer in the production of advanced driver assistance systems (ADAS) and autonomous driving technologies and solutions.  Mobileye’s offerings are based on its expansive purpose-built software and hardware technologies that are made to supply the necessary functions to enhance ADAS and autonomous driving.  Further, these technologies can already be leveraged in vehicles to provide mission-critical activities that make roads and vehicles safer, and can be delivered at the edge or in the cloud.

Mobileye projects that the current total addressable market for its ADAS solutions is $16 billion, and the company predicts that its total addressable market will rise to $480 billion by the end of 2030, inclusive of the ADAS segment as well as the autonomous vehicle market.  Mobileye has carved out a solid share of this current market, as the company generated 2020 revenue of $967 million with a net loss of $196 million.  In 2021, Mobileye’s revenue jumped 43 percent to $1.4 billion, and the company’s net loss shrunk to $75 million.  Mobileye notes that essentially all of its revenue currently comes from its commercially deployed ADAS products.