Otovo has recorded another remarkable quarter of growth as the Oslo-based company continues to deliver at-scale in the European market.
For Q2, Otovo has recorded:
● Strong sales, installations, revenue and margin, showing an ability to shift focus to quality and more profitable sales in a high-pressure environment:
○ 2,398 sales versus 1,183 same quarter last year, up 2.0x
○ 1,745 installations versus 864 same quarter last year, up 2.0x
○ £16mn/$19.1mn revenue generated versus £5.3mn/$6.3mn same quarter last year, up 3.0x
○ £3.5mn/$4.1mn gross profit generated versus £825k/$985k same quarter last year, up 4.1x
● Business health up, manifesting itself in all major metrics: improving ticket size, gross margins, and subscriptions as share of revenues. In Q2 Otovo also had three countries with positive margin on an EBITDA generated basis.
● European momentum: solar markets are booming, and Europe is set for a decade of high activity. Otovo is on track for continental leadership with ongoing scaling in Germany, Portugal, UK and Austria. Three more markets to be added in the second half of 2022, as planned.
● Strong outlook, with solid pipeline and confidence in ability to deliver more than £41.2mn/$49.2mn in H2 and expecting gradually easing supply chain conditions.
Commenting on Q2 results, Andreas Thorsheim, Otovo CEO, said: “I’m proud of all Otovistas for having defied a really difficult period and come out with more than twice as many installations as a year ago. Our marketplace model is now proven, and with smoother terrain ahead I think we are going to keep crushing the numbers. We made a conscious choice to optimise for what we can deliver in the second half, and we filled the pipeline with bigger and more valuable systems, with more batteries and a higher subscription share. Europe needs more clean power fast and Otovo has an ability to deliver at speed and at scale across the continent. This is the time where we really step up.”
With an increased installer ecosystem and more capacity than ever, Otovo grew installations 20 percent sequentially from Q1 and 102 percent from the same quarter last year. The value of the installations was up 200 percent, as ticket sizes grew from a combination of bigger systems, more batteries, and higher markups.
Otovo can confirm that three of its markets were profitable in the period. Norway, Spain and Italy were all positive on the basis of EBITDA generated. The volumes and profitability of sold units indicate those levels will be sustained. Otovo will bring more markets above zero gradually, while entering and scaling in new markets leveraging our proven playbook. Consistent sales have built a solid pipeline, and with improving throughput Otovo expects to deliver projects worth more than £41.2mn/$49.2mn in 2022 H2.
In its first year of offering batteries, Otovo has sold approximately 1,700 home batteries, at a value of £8.5mn/$10.1mn.
Commenting on battery sales, Thorsheim said: “Batteries have been holding a lot of promise, but the technology hasn’t been consumer ready and the cost has been too high for this to be a mass market hit. It’s been feeling a bit like mobile phones in the 1990s, cool but not really there yet. In our first year we have sold 1,700 batteries, worth more than 10m euros. One in four customers buys a battery with their solar panels on average in our European markets. Italy and Germany are leading the way with seven out of ten customers adding batteries to their home energy system. Honestly I think that in a generation, there will be a battery in every home in Europe. Within a few years it’s going to be unusual not to add a battery when you buy a solar energy system, an electric vehicle charger or a heat pump.”
The story of Otovo’s battery offering is one of restraint. The six-year-old solar energy company headquartered in Oslo, Norway has been considering adding energy storage to its product offering for European homeowners since the beginning.
But the prices have been coming down consistently, so it was a matter of time before they would hit the spot where energy started making sense to consumers across Europe. According to Bloomberg New Energy Finance, battery pack prices, which were above $1,200 per kilowatt-hour in 2010, have fallen 89% in real terms to $132/kWh in 2021.
