Tigo Energy Q4 2023 Earnings Call Transcript

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Provided by Quartr
February 13, 2024

There are 6 speakers on the call.

Operator

Good afternoon, and welcome to Tygo Energy's Fiscal 4th Quarter and Full Year 2023 Earnings At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session. Joining us from Tiger are Sri Alon, CEO and Bill Roschlein, CFO. As a reminder, this call is being recorded. I would now like to turn the call over to Bill Roschlein, Chief Financial Officer.

Speaker 1

Thank you, operator. We would like to remind everyone that some of the matters we'll discuss on this call, including our expected business outlook and anticipated costs, The marketing trends statements about our current and future inventory levels and its impact on future financial results, inventory supply, its impact on our customer shipments and our revenue for the fiscal Q4 and full year 2023, our ability to penetrate new markets and expand our market share, including in international markets, expand our continued expansion of and investments in our product portfolio are all forward looking statements and as such are subject to unknown and known risks and uncertainties, including but not limited to, a few of those factors described in today's press release and discussed in the Risk Factors section of our quarterly report on Form 10 Q for the quarter ended September 30, 2023, and other reports we may file with the SEC from time to time. These risks and uncertainties could cause actual results to differ materially from those expressed on this call. These forward looking statements are made only as of the date when made. During our call, we will reference certain non GAAP financial measures.

Speaker 1

We include non GAAP to GAAP reconciliations in a press release furnished as an exhibit to our Form 8 ks. Non GAAP financial measures provided should not be as a substitute for or superior to the measures of financial performance prepared in accordance with GAAP. Finally, I'd like to remind everyone that today's conference call is being webcast and a recording will be made available for replay at Tygo's Investor Relations website at investors. Tigoenergy.com. I would like to now turn the call over to Tygo's CEO, Zvi Elan.

Speaker 1

Zvi?

Speaker 2

Thank you, Bill. To begin today's discussion, I will give some background on our company, recent performance and market trends before turning the call over to our CFO, Bill Roschlein. He will discuss our financial results for the quarter and the year in more depth as well as provide our outlook for 2024. After that, I will share some closing remarks before opening the call for questions. All right.

Speaker 2

Let's begin. For those of you who may be new to our story, Tygo Energy is a global provider of intelligent solar and energy storage Founded in 2,007, our mission is to deliver smart hardware and software solutions that enhance safety, increased energy yield and lower operating costs for residential, commercial and utility scale systems. Tygo's offering includes 3 main product categories: Tygo's TS4 MLPE, GO ESS Energy and Storage Solutions and our Energy Intelligence, or EI, software platform. Our Tygo TS4 is our largest selling product, consisting of a series of flexibly designed MLP solutions to meet particular needs of a broad base of installers. Our superior MLP design provides a number of important benefits to customers.

Speaker 2

1st, Our NLP has an energy efficient design that operates on an as needed duty cycle, which optimizes the MPPT of solar streams when compared to solutions requiring constant optimization and high duty cycle. Our design is so efficient, in fact, that it is housed in a plastic casing instead of a metal one that uses a heat sink. 2nd, our NLP solution provides customers with a high reliability product and a very low failure rate. Higher reliability is driven by the lower component count duty cycle and design. 3rd, Our MLP are quick and easy to install in about 10 seconds each.

Speaker 2

You literally clip the MLP to the back of the panel and connect the wires. And lastly, we provide flexibility. TAGO products are certified to work with more than 1600 inverters across all market segments, including the resi, C and I and utility marketplaces today, while operating in 7 continents. In addition to our MLP solutions, the go the TiGo Go Energy Storage Systems product line or Go ESS is our line of products that provide energy storage solutions based on modular components that are intuitive and flexible to install and are optimized to work together. Go we assess includes the Go inverter, a hybrid inverter that can be configured with the battery and automatic transfer switch in a DC coupled architecture.

Speaker 2

The Go battery, which provides high density and high surge power with up to 6 modules of 5 kilowatt hour incremental building blocks and 2.5 kilowatt continuous power per module. The Go ETS or automatic transfer switch, a central hub for managing power loads and sources, including solar battery systems or a generator. And last but not least, the Go EV charger, A newly launched smart charging station for electric vehicles that is available as both a single phase or a 3 phase charger and up to 22 kilowatts and can be wall mounted or outdoor Indooroutdoor. Overall, Go ESS enables dynamic, customizable interaction between the energy source and loads with the maximum flexibility for energy utilization references and is compatible with the Tygo MLPE product. Moreover, the system includes the battery can be commissioned in about 10 minutes.

Speaker 2

Lastly, our ei or energy intelligent products make up Tygo's ei software platform. Our AI products, including monitoring fleet management and our flagship Predict Plus software platform. We have integrated and scaled Predict Plus offering in particular, as it is a unique software offering that provides customers with the ability to both accurately predict production and consumption of energy with near real time window segments and manage energy demand and load balancing to drive ROI and profitability. Our Predict plus software solutions enables utilities and VPPs to manage this so called dark curve challenges posted by changes in electricity demand and generations throughout the days. We anticipate that these 3 product categories will continue to constitute the main products for TiGrow moving forward, And we expect to continue investing in their growth, especially for our GO ESS and EI solutions.

Speaker 2

We believe that the opportunity for the solar energy storage solutions is large and durable, both in the United States as well as internationally. Turning now to the review of our recent operational results and demand outlook. As we discussed on our last call, our business faced order push outs and cancellation that ramped more significantly than expected through the second half of last year, largely driven by elevated inventory levels in the channel. In the Q4, these headwinds created significant uncertainties and limited our performance, resulting in a $9,200,000 in revenue and an adjusted EBITDA loss of $11,600,000 In response, we made what we believe were several prudent restructuring steps in the quarter, which included reducing staff levels by 15% to better align our cost structure with the current environment. However, when viewed holistically, 2023 was a transformational year highlighted by growth for Tygo.

Speaker 2

Our team drove overall revenue growth of 78.6 percent to $145,200,000 for the full year. Our international expansion was particularly successful as our EMEA business more than doubled in revenue and our APAC business grew more than 50% in 2023. Also, we deployed our 10,000,000 TIGO TAS4 device, significant milestone for our business, an indicator of how far Tiger has gone. We made significant progress across our product categories as well as we had successful year converting new customers to our TS4 platform, including the GoodWe, Solix Power and InterCraft Solar as a new licensee for our rapid shutdown technology. Tier 4 revenue grew 69% to $119,000,000 compared to $70,000,000 in 2022, which we believe was driven by the market realization of our technology significant advantages.

Speaker 2

Also, our Go ESS solution grew steadily last year in the 1st full year of availability in the market, In part because successful launch in the German market, the U. S. Market, Go ESS represented only 9% of our 2023 revenue, but 22% of our 2023 bookings, which encourages us that we'll see continued Go BSS progress in the Q1 of 2024 as well. For our ei software solutions, we notched several wins, including our increased collaboration with EDF Renewables in Israel for them to utilize our Predict plus technology. During the year, we expanded the Predict plus software platform, including improved profit analysis modules, advanced algorithms for production and load forecasting, and the new billing module for IPP and virtual power suppliers.

Speaker 2

Our ARR grew to currently represented $800,000 per year. Lastly, we launched the GreenClub service program in 2023 to provide a premium support experience for first time residential and our new existing commercial installers of Tygo Systems. This program is expected to enhance customer confidence in the Safety, security and reliability of TAGO products installations and features 6 point design inspection along with an on call and post installation support services. We already have many customers who have signed up for the service and several completed the full cycle and received the GreenLab Certification for their sites. Early feedback has been overwhelmingly positive.

Speaker 2

This effort will continue to enhance the market service while increasing the usage of the tiger products. As we turn to 2024, we believe that the ongoing inventory question cycle is nearing completion and the distribution inventory weeks will normalize by the end of Q1. Also as noted, Last quarter, monitoring services registration occur once a solar panel system installation has been completed for the end customer and provides us with an indication of the level of product sell through. The number of customers that signed up for the in the quarter for the Tyco module level monitoring services continued A similar pace with Q3, which indicates to us and demand remains stable. As we look further into 2024, overall outlook for EMEA in 2024 is continued growth, I'll be at a more moderate pace compared to 2023.

Speaker 2

In the Americas, high interest rates and net metering policies still have a potential to delay the recovery until the second half of the year at the macro level. Although we do expect to gain ABL traction with the expanding list of TPOs serving the market and that could be significant catalyst for growth for us in the region. We believe that there is still significant runway for expansion to new geographies as well as giving us confidence that we can continue increasing our international footprint in 2024. Overall, as we navigate an uncertain beginning of 2024, we are managing our business to be both cautious and responsive. We are cautiously optimistic that we are nearing the end of the industry wide inventory rebalancing cycle, but will remain responsive to the macroeconomics environment.

Speaker 2

We also remain committed to our 3 major initiatives in 2024. 1, cost effectiveness. We will continue to sell advantages of using the Tyco product to lower the electrical balance of system cost in the solar installation. 2, market expansion. We will continue our market penetration of underserved markets, especially in new geographies such as South America, Asia Pacific and Eastern Europe.

Speaker 2

These regions represent under tapped geographies where rapid shutdown is gaining traction, and we believe we are positioned well to capture the additional market share in these areas. 3, product suite expansion. As mentioned previously, our Go ESS product represents 9% of our business, while our ei software platform represents a nominal percent of our business today. And we see both product lines as highly underpenetrated areas for growth for our business. Further improving and growing this product is an important part of our strategy for 2024.

Speaker 2

With that, I will turn the call over to Bill to discuss the Q4 and full year 2023 financial results and 2024 outlook in greater details. Bill? Thanks, Vi. Revenue for the Q4 2023 decreased 70 to $9,200,000 from $30,900,000 in

Speaker 1

the prior year period. By geography, EMEA revenue was $3,700,000 or 40 percent of total revenues. Americas revenue was $3,400,000 or 37 percent of total revenues and APAC was $2,100,000 or 23 percent of total revenues for the quarter. Go ESS represented 14% of total revenues in the quarter compared to 8.4% last quarter and 7.3% in the prior year comparable period. Revenue for the full year 2023 increased 79% to $145,200,000 from $81,300,000 in the prior year period.

Speaker 1

By geography, EMEA revenue was $109,300,000 or 75 percent of total revenues, Americas revenue was $25,200,000 or 17 percent of total revenues, And APAC revenue was $10,800,000 or 7 percent of total revenues for the year. Go ESS for the year represented 9 point percent of total revenues in the year compared to 4% in the full year 2022. Gross profit in the Q4 of 2023 was $2,900,000 or 31.1 percent of revenue compared to $10,000,000 or 32.2 percent of revenue in the comparable year ago period. On a sequential quarter basis, gross margins increased by 6.8 gross margin points due primarily to lower warranty costs and the sale of fully reserved inventories. Gross profit in the full year 2023 was $51,300,000 or 35.3 percent of revenue compared to $24,800,000 or 30.5 percent of revenue in the comparable year ago period.

Speaker 1

On an annual basis, Gross margins increased by 4.8 gross margin points. The year over year increase was primarily due to cost down initiatives and leveraging our fixed costs across a larger revenue base. Total operating expenses for the Q4 were $16,400,000 and compared to $7,800,000 in the prior year period. The increase was primarily driven by higher headcount expenses compared to the year ago period. Total operating expenses for the full year of 2023 were $59,600,000 compared to $25,700,000 in the prior year period.

Speaker 1

The yearly increase was driven primarily by higher headcount expenses and legal consulting and compliance costs associated with our transition becoming a public company. Operating loss for the Q4 totaled $13,500,000 compared to an operating profit of $2,200,000 in the prior year comparable period. Operating loss for the full year 2023 totaled $8,300,000 compared to $900,000 in the prior year comparable period. Net loss for the Q4 totaled $14,800,000 compared to a net income of $900,000 in the prior year period. Net loss for the full year 2023 totaled $1,000,000 compared to a net loss of $7,000,000 for the full year 2022.

Speaker 1

Adjusted EBITDA loss in the 4th quarter totaled $11,600,000 compared to adjusted EBITDA of $2,700,000 in the prior year period. Adjusted EBITDA in the full year totaled $1,000,000 compared to an adjusted EBITDA of $2,500,000 in the full year 2022. As a reminder, adjusted EBITDA represents operating profit as adjusted for depreciation, amortization, stock based compensation and M and A transaction expenses. Primary shares outstanding were 58,800,000 for the Q4 of 2023. Cash, cash equivalents, Short and long term marketable securities totaled $33,200,000 at December 31, 2023.

Speaker 1

Accounts receivable net decreased in the 4th quarter to $6,900,000 or 68 days outstanding compared to $20,400,000 last quarter and $15,800,000 in the year ago comparable period. Inventories net were $61,800,000 compared with $57,400,000 last quarter $24,900,000 in the year ago comparable period. Over the past several months, We have made substantial progress in reducing our inventory commitments and expect to destock our inventories to more normalized levels over the coming quarters. Before I turn the call back over to Zvi, I'll now take a few minutes to provide our financial outlook in our 2024 Q1. As a reminder, Tygo provides quarterly guidance for revenue as well as adjusted EBITDA, and we believe these metrics to be key indicators for the overall performance of our business.

Speaker 1

The following projections reflect our Q1 expectations in light of the previously discussed industry wide macroeconomic uncertainty. We expect revenue in the Q1 ending March 31, 2024 to range between $9,000,000 $14,000,000 We expect adjusted EBITDA loss to range between $8,000,000 $12,000,000 That completes my summary, and I'd like

Speaker 2

to now turn the call back over to Zvi for final remarks. Zvi? Thanks, Bill. Overall, we are confident in our team's ability to manage the current macroeconomics environment and in the long term growth perspective for our business. We look forward to providing additional updates in the coming quarters.

Speaker 2

With that, operator, please open the call for questions.

Speaker 3

Thank

Operator

Our first question comes from Phil Shen with ROTH Capital Partners. Your line is open.

Speaker 3

Hi, everyone. Thanks for taking my questions. Wanted to get through the destocking outlook. And I think, as Vee, you mentioned that it should be done by the end of Q1. I was wondering if you could talk through what the sellout was In Q4 and then what you expected to be in Q1, our checks suggest that your stock in Rotterdam still seems quite high.

Speaker 3

And so how much longer do you think that gets worked through? And what kind of risk is there that this carries over Into Q2. Thanks.

Speaker 2

Hi, Phil. Thanks for the question. First of all, for clarification, Rotterdam is our own inventory. That's part of the $61,000,000 we mentioned that inventory we have. The inventory the distribution continues to get depleted as I've highlighted actually I started I believe Tiger was the first one to actually highlight that back in September last year, and we are consistently continuing.

Speaker 2

Our rate of installations is steady. It did not come down. And as a result, We have seen a depletion, a lowering of the inventory at our distribution, both in Europe and other locations. And we indicated that we believe that we will get close to normal towards the end of Q1, and we are still maintaining that position. I don't want to make any pre announcements here, but I can tell you we are very confident that The business is starting to turn around for us in the different regions.

Speaker 3

Got it. Okay. Thank you. Can you talk about from a cash flow standpoint, You have $33,000,000 of cash at the end of Q4, that was $13 ish million of burn in Q4, I think. And then So what kind of cash could you generate from inventory in Q1?

Speaker 3

And what kind of Overall, should we expect for Q1? Thanks.

Speaker 1

So I can there's 3 factors in liquidity, the first being the improved economic environment, which we all know about, which we at this like we mentioned, We're seeing that improve. The second is that we have dramatically been able to reduce the amount of required purchases from our contract manufacturers such that we can be in a position to convert the $61,400,000 into cash. And the third I'll mention is that we are in discussions with certain parties around credit facilities to enhance our balance sheet flexibility. So the combination of all three, we believe will provide us with ample and sufficient liquidity. As a general rule, given the guidance, 60% of the revenue is cost of goods sold.

Speaker 1

So I leave it to you to calculate what that conversion to cash looks like, but it's essentially 60% of the $9,000,000 to $14,000,000 that we guided.

Speaker 3

Okay, got it. Can you talk through timing of the credit facilities And those negotiations and then are we talking about a $30,000,000 credit line or maybe $70,000,000 What kind of ballpark could it be? Thanks.

Speaker 1

I can't go beyond what I just what I mentioned at this point since they're fluid negotiations, sorry.

Speaker 3

Okay. Back to the sell through, do you think Sell through is at a bottom. I think you kind of talked through that a little bit already. And so you're Talking about Zvi that things are improving, but can you give any quantification of Remind us again what your biggest market is? Is it Netherlands or is it Germany?

Speaker 3

And some of the kind of metrics from some of the countries that Can you give us some confidence that you have that visibility? Thanks.

Speaker 2

In Europe, Germany is the largest market. We have a fairly strong footprint in Italy, in the Netherlands, Eastern Europe, we have several countries. Czech Republic has been a fairly strong supporter and provider of revenue for us. As far as the depletion of the inventory, we see basically in all territories, we see but in Number of distributors, not just a small number, is coming down. And also the number of installations continues at the same pace in the different geographies.

Speaker 2

So it's not in just one location, which gives us confidence by the numbers that we are tracking what we have seen now for the last 4, 5 months, 6 months.

Speaker 3

Okay. Got it. And so when you think about the trajectory of revenue by quarter, so you've given us Q1 official guidance, But with the seasonal strength that comes from Q2 and Q3, What do you think we could see for Q2 and Q3? Without giving guidance, maybe you can point us to some Qualitative description of what the year might look like? Thanks.

Speaker 1

I'll just start off by saying I think it's more than what's in your model,

Speaker 3

Okay, great. Okay.

Speaker 2

This is very qualitative still.

Speaker 3

Okay. And one other thing, some of our checks suggest the Chinese are actually doing quite well. So think of SunGrow, Huawei, GrowWatt. And their channel material was cleared, has been cleared. And so they're not dealing with that anymore.

Speaker 3

It seems like they're maintaining price. But I've heard from distributors that Their mix of their business like the Chinese inverter mix of the overall European business is increasing. What are your thoughts on the competitive dynamics there? We're also hearing that some of them might be launching optimizers that might challenge you guys, Maybe like a sun grow. Talk to us about the risks you see and the competitive dynamics?

Speaker 3

Thanks.

Speaker 2

Most welcome. So first of all, if you recall back in at IntuSolar last year that promotion to try and drive market changes started by Huawei, There were 1 or 2 additional suppliers who tried the same, and we know At least from facts, we are collecting that that didn't produce the expected results, and they stopped. And actually, prices stabilized. And now it's really just depletion of inventory, which is really the key. We do see, however, that the glut of Chinese suppliers is still dominating the market and not necessarily with new products as much as just the depletion of the inventory.

Speaker 2

And as such, our optimizers work with Pretty much all of them, and we don't prefer 1 or the other. Yes, Huawei has been Pushing an MLP now for the last 6 or 7 years, Sun Go might be a newcomer to the market, at least they announced it. In both cases, their optimizers work only with their own inverter and as a matter of fact, not with older inverters, only with the subset of the inverters. So from a competitive perspective, we feel and see that our position is actually fairly good. In addition, I will say that we see an increase In demand for rapid shutdown, stand alone and specifically just in the residential, but also seeing the high in larger scale systems and we are the number one supplier in that space and Neither SolarEdge, Huawei and or Sunpro have a rapid shutdown solution only.

Speaker 2

So we still maintain that our position is going to continue to be fairly strong. And the fact that the 2 of them actually, the latest one is Sangou. Huawei has been around for quite some time, But the fact that they are jumping in is only to demonstrate that the MLP market is vibrant, vivid and needed. And so we believe as an independent supplier in the space, we will maintain our leverage.

Speaker 3

Great. Thanks very much guys. I'll pass it on.

Speaker 2

Most welcome.

Operator

One moment for our next question. Our next question comes from Eric Stine with Craig Hallum. Your line is open.

Speaker 4

Hi, Zvi. Hi, Bill.

Speaker 2

Hi, Eric. Hi, Eric. Hey. So maybe I'll just get at some of

Speaker 3

the previous questions, just ask them differently. I mean, do you have an estimate of how much maybe over the

Speaker 4

I mean, do you have an estimate of how much maybe over the last quarter or 2 you have under shipped As you try to help the process of the channel clearing, just trying to get an idea of kind of Where true demand might be, as we think about Q1 and then obviously improvement going forward? So

Speaker 2

we normally Did not measure it this way because we don't under ship. We have plenty of inventory. And so unless we were able to supply from existing backlog or new orders we have received, we did not under ship. And so that whatever the shipment, it was a true demand.

Speaker 4

Okay. Right. So true demand, But a thought of what would it be, let's say, that the inventory was somewhat normalized, the $9,000,000 you did this quarter. I mean, Any thoughts you have, even from a high level, that $9,000,000 would have been X, whatever that number may be, I'm just trying to get a sense of kind of that level set demand under a more normalized environment.

Speaker 1

So we took more than 50% haircut from the Q2 highs as a result of this environment. And so I mean, just a really broad brush stroke is just at least a few percent or more.

Speaker 4

Okay, got it. And I know you're not guiding to Q2. I guess

Speaker 1

I'll have to take a

Speaker 4

look at where Phil's estimates are To get a line on that, but okay, that helps. Maybe then just coming back to working capital, helpful what you're talking about, Yes.

Speaker 2

As Bill said, better than his estimate.

Speaker 4

Correct. Yes, I heard that loud and clear. I'll add one more. Okay.

Speaker 1

I'll just add that We continue to make the investments and have purposely been very thoughtful in How we instituted our cost restructuring in the last quarter and It's a reasonable number. It's sort of in line with what our competitors have done. But In the same vein, it reflects our expectations with a much more promising outlook.

Speaker 4

Right. Understood. And I would assume that if things, for whatever reason don't play out that way there's there would be more that you could do. I guess I'm curious, I mean Is that fair? Do you think there is more room if needed?

Speaker 4

Or do you feel like this kind of strikes a good balance between cutting costs here near term, but also keeping the situation in place for growth, which you obviously expect to come going forward?

Speaker 1

So there are a couple of things. There is always more. We definitely grew our top line and our OpEx in 2023 and 79% growth in the year. So the things that we want to be cognizant of are that the market is turning, Our product is selling. The monitoring solutions are steady.

Speaker 1

The end demand is steady and we don't want to miss out. So If the market turns one way or the other, we'll react. But we there There's still some questions about true demand. And as we get further along into this quarter, us along with others, we'll have some more commentary on where we think that is. But we know it's much higher than We're guiding to right now.

Speaker 4

Yes, yes, understood. Maybe just last one for me. Working capital, obviously, as you kind of laid out, We can back into how much you worked down that inventory here in Q1. But Maybe just thinking about it longer term, I mean, it's obviously going to depend on what your sales expectations are. But do you have kind of A number that you think is the right number?

Speaker 4

I mean, clearly, as things kind of turned down in the second half, you were unable to shut off the as you said, some of the automatic purchases from the contract manufacturer. Is there a number, whether it's a percentage of the 61, that you think is a more realistic level based on where the business stands today in the outlook?

Speaker 1

Yes, I can we have been thinking about this frequently. And our inventory position of $61,400,000 or $61 and change should be at $30,000,000 or below. Dollars 30,000,000 or below is a $50,000,000 a quarter or $200,000,000 in revenue and a one turn per quarter. So at least 30,000,000 where inventory level should be, which would generate cash for the 1,000,000 obviously for us. Now from there, we can tune it.

Speaker 1

But the fact that we're Again, we're thinking that's how we're thinking of being able to support $50,000,000 in revenue because again, We don't want to come up short when the market turns. We want to be able to respond and take advantage of the market upturn.

Speaker 4

Okay, that's helpful. Thank you.

Operator

Our next question comes from Gus Richard with Northland. Your line is open.

Speaker 2

Yes. Thanks for taking the question. I'm just wondering if you could talk

Speaker 5

a little bit about your market share as we went through this shortage period beginning of last of 'twenty two. And as there was a shortage, your revenues ramped relative to your competitors a little bit faster and It's come down a little bit faster. And I'm wondering how is it a reasonable assumption that before that surge in demand that you had X percentage of market share relative to your competitors. Are you asymptoting to that level or coming back to that level. Could you just talk a little bit about that?

Speaker 1

Sure. So We don't look at every competitor in the landscape and there is a lack of third party data to tie that all together. But within MLPE, if you look at Sedge and we look at what they report and we do note that In 2022, they had $23,800,000 in MLPE units. And as we've disclosed, we had 2,600,000 That was 11% of SEDGE's total. We also look at 2023 with some forecasting done by the analysts, with Sedge at somewhere around 17.3, 17.5 ish.

Speaker 1

And we sold almost 4,200,000 units.

Speaker 2

That puts us at

Speaker 1

24% of the MLP units that Sedge had. So clearly, we've gained share.

Speaker 5

Right. Now, post that bubble, are you going to maintain that share you think? Or Are you going to kind of go back to where you were before or is it somewhere in between? And then if I've done the math on this, It feels like your revenue is kind of stable around or sell out, if you will, demand around $20,000,000 to $25,000,000 Are those numbers Kind of correct? And what do you think your end state market share might be?

Speaker 1

I don't know if I can give you full answers on those questions precisely. Again, I don't Again, the principal 3rd party reports that puts the largest amount of share With Sedge and Enphase and then we are 3rd, but a distant 3rd. But as I just mentioned, we have gained share And we believe we'll continue to gain share as we've outlined in this call and in our release. And that along with just the greenfield revenue coming from Go ESS and our software, That's completely new revenue. So we went from 2.5% in Go EFS to more than 13.5%.

Speaker 1

And so that's 100% revenue market share gain. I mean that's all new stuff. And so the combination of our base business, MLPE, as I mentioned, comes from 11% to 24%, and then we tack on going from 2 and change to 13.5%, that's very significant. So I don't really see a world where we're not gaining share.

Speaker 2

Okay. Thanks for taking my questions. Welcome.

Operator

Ladies and gentlemen, this does conclude the Q and A portion of today's call. Thank you for joining us today for Tycho's 4th quarter and full year 2023 earnings conference call. You may now disconnect.

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