Fluence Energy Inc (NASDAQ:FLNC) stock surges 23.31% (As on December 13, 11:27:28 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the fourth quarter of FY 22. Adjusted gross margin of approximately (0.2%) for the year and 3% for the fourth quarter compared to 2.2% for fiscal 2021 and 1% for the third quarter. Strong quarterly order intake of $560 million driven by contract for the world’s largest storage-as-transmission project in Germany with TransnetBW. Total Backlog of $2.2 billion as of September 30, 2022, an increase from total Backlog as of June 30, 2022 of $2.1 billion. the company has ended the quarter with total cash in excess of $500 million.

FLNC in the fourth quarter of FY 22 has reported the adjusted loss per share of 36 cents, beating the analysts’ estimates for the adjusted loss per share of 30 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 76 percent to $441.98 million in the fourth quarter of FY 22, beating the analysts’ estimates for revenue by 22.13%.

Meanwhile, during September 2022, the company has signed a $225+ million contract for the world’s largest energy-storage-as-transmission project, located in Germany with a planned completion in 2025. During November 2022, the company executed a $500+ million contract with Orsted requiring highly complex solutions that will be completed during fiscal years 2023 and 2024, thus increasing the backlog with non-related parties. Further, In September 2022 the company had opened a contract manufacturing facility in Utah, the second facility globally, to better serve regional delivery and address ongoing supply chain constraints; this facility is well positioned to capture incentives from the IRA with the forthcoming battery module manufacturing

Furthermore, the demand for the offerings remains robust and is expected to be amplified by the incentives under the Inflation Reduction Act of 2022 (the “IRA”) in the United States, which supports the adoption of energy storage products. In addition, the current energy crisis in Europe further demonstrates the need for energy security and independence, which provides additional opportunities for energy storage.

The Company is initiating fiscal year 2023 total revenue guidance of approximately $1.4 billion to $1.7 billion. Additionally, the Company is initiating fiscal year 2023 Adjusted Gross Profit guidance of approximately $60 million to $100 million.