Q2 2024 Enlight Renewable Energy Ltd Earnings Call
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Good day, and thank you for standing by.
Operator: Welcome to Enlight's second quarter 2024 earnings call. Please be advised that today's conference is being recorded. I would now like to hand the conference over to Yonah Weisz, Director. Please go ahead.
Young Advice: Welcome to the NN life second quarter 'twenty 'twenty full earnings call. Please be advised that today's conference is being recorded I would now like to hand, the conference over to young advice director. Please go ahead.
Yonah Weisz: Thank you, operator. Good morning, everyone.
Speaker Change: Thank you operator, good morning, everyone and thank you for joining our second quarter 2024 earnings conference call for an like renewable energy.
Yonah Weisz: And thank you for joining our second quarter 2024 earnings conference call for Enlight Renewable Energy. Before beginning this call, I would like to draw participants' attention to the following: certain statements made on the call today, including, but not limited to, statements regarding business strategy and plan. Our Project Portfolio.
Speaker Change: Before beginning this call I would like to draw participants attention to the following.
Speaker Change: Certain statements made on the call today, including but not limited to statements regarding business strategies and plans.
Speaker Change: Our project portfolio.
Speaker Change: The market opportunity.
Speaker Change: Utility demand and potential growth.
Yonah Weisz: Discussions with Commercial Counterparties and Financing Sources. Pricing Trends for Materials. Progress of company projects, including anticipated timing of related approvals and project completion and anticipated production delays. Expected impact from various regulatory developments, completion of development, the potential impact of the current conflicts in Israel on our operations and financial condition and company actions designed to mitigate such impact, and the company's future financial and operational results and guidance, including revenue and Adjusted EBITDA, are forward-looking statements within the meaning of U.S. federal securities laws, which reflect management's best judgment based on currently available information.
Speaker Change: <unk> with commercial Counterparties and financing sources.
Speaker Change: Pricing trends for materials.
Speaker Change: Yes, I've company projects, including anticipated timing of related approvals and project completion and anticipated production debates.
Speaker Change: Expected impact from various regulatory developments completion of development.
Speaker Change: The impact of the current conflicts in Israel on the operations.
Speaker Change: As a condition and company options designed to mitigate such impact and the company's future financial and operational results and guidance, including revenue and adjusted EBITDA.
Our forward looking statements within the meaning of U S Federal Securities laws, which reflect management's best judgment based on currently available information.
Yonah Weisz: We reference certain project metrics in this earnings call, and additional information about such metrics can be found in our earnings release. These statements involve risks and uncertainties that may cause actual results to differ from our expectations. Please refer to our 2023 Annual Report filed with the SEC on March 28, 2024, and other filings for more information on the specific factors that could cause actual results to differ materially from our forward-looking statements.
Speaker Change: We referenced certain project metrics in this earnings call and additional information about such metrics can be found in our earnings release.
Speaker Change: These statements involve risks and uncertainties that may cause actual results to differ from our expectations.
Speaker Change: Please refer to our 2023 annual report filed with the SEC On March 28, 2024, and other filings for more information on the specific factors that could cause actual results to differ materially from our forward looking statements.
Yonah Weisz: Although we believe these expectations are reasonable, we undertake no obligation to revise any statements to reflect changes that occur after this call. Additionally, non-IFRS financial measures may be discussed on this call. These non-IFRS measures should be considered in addition to and not as a substitute for or in isolation from our results prepared in accordance with IFRS.
Speaker Change: Although we believe these expectations are reasonable we undertake no obligation to revise any statements to reflect changes that occur after this call.
Speaker Change: Additionally, non <unk> financial measures may be discussed on the call.
Speaker Change: These non <unk> measures should be considered in addition to and not as a substitute for or in isolation from our results prepared in accordance with IRS.
Yonah Weisz: Reconciliations to the Most Directly Comparable IFRS Financial Measures are available in the earnings release and the earnings presentation for today's call, which are posted on our Investor Relations webpage. With me this morning is Gilad Yavetz, CEO and co-founder of Enlight. Nir Yehuda, CFO of Enlight, and Adam Pishl, CEO and co-founder of Clonera. Gilad will provide some opening remarks. And we'll then turn the call over to Adam for a review of our U.S. activity, and then to Nir for a review of our second quarter results. Our executive team will then be available to answer your questions.
Speaker Change: We can filiation to the most directly comparable <unk>.
Speaker Change: The financial measures are available in the earnings release and the earnings presentation for today's call, which are posted on our Investor Relations webpage.
Speaker Change: With me. This morning are <unk>, CEO and co founder of a night.
Yehuda: Near Yehuda C F O have a night.
Yehuda: And Adam Piszel, CEO and cofounder of <unk>.
Speaker Change: <unk> will provide some opening remarks.
Speaker Change: And we'll then turn the call over to Adam for a review of our U S activity and then tenure for a review of our second quarter results.
Speaker Change: Our executive team will then be available to answer your questions.
Gilad Yavetz: Thank you, Yonah, and thank you all for joining us today. Enlight continues to deliver excellent performance as we progress through 2024, and we are pleased to present a very strong set of financial results for the first half and second quarter of 2024. Comparing the first half of 2024 to the same period in 2023, revenue grew 42% to $175 million, adjusted EBITDA grew 33% to $126 million, net income dropped to $34 million, and cash flow from operations was lowered by 4% to $91 million.
Speaker Change: Thank you your honor and thank you all for joining us today.
Speaker Change: <unk> continues to deliver excellent performance as we progress through 2024, and we are pleased to present, a very strong set of financial results for the <unk> second quarter 2024.
Speaker Change: Comparing the first half of 'twenty 'twenty four for the same period in 2023.
Speaker Change: Revenue grew 42% to $175 million.
Speaker Change: Adjusted EBITDA grew 33% to $126 million.
Speaker Change: Net income dropped to $34 million.
Speaker Change: Cash flow from operation was lower by 4% to $91 million.
Gilad Yavetz: On a quarter-to-quarter basis, compared to last year, revenue was up 61% to $85 million, and adjusted EBITDA grew 39% to $58 million. Net income was $9 million versus $22 million, driven by inflation indexation impacts and the Clinera-Earnhardt calculation, which Nir will explain in more detail later on, while cash flow from operations rose to $56 million, up 42%.
Speaker Change: On a quarter to quarter basis, compared to last year revenue was up 61% to $85 million and adjusted EBITDA grew 39% to $58 million.
Speaker Change: Net income was $9 million versus 22 million driven by inflation indexation impacts and the cleaner aeronautical inhibition, which Neil will expand in more detail later on while cash flow from operations rose to $56 million up 42%.
Gilad Yavetz: On the back of these results, we are pleased to increase our full year 2024 guidance ranges. We now expect 2024 revenues of $345 million to $360 million, up from $330 million to $360 million. Additionally, we now expect 2024 EBITDA of $245 to $260 million, up from $235 to $255. This represents an increase of $5 million and $7.5 million at the midpoint, respectively.
Neil: On the back of these results. We are pleased to increase our full year 2024 guidance ranges. We now expect 2020 for revenues of 345 million to 360 million up from 330 million to 300.
Speaker Change: 60 minutes.
Neil: While we now expect 2020 for EBITDA of $245 million to $260 million up from 235 to 255.
Neil: This represents an increase of 5 million and $7 5 million at the midpoint respectively.
Gilad Yavetz: Enlight is now in the midst of delivering on its major expansion plan, and we continue to execute on the builder of our mature portfolio. Since the beginning of 2024, we have completed construction on 0.5 gigawatt and 1.4 gigawatt hours of capacity, including our flagship Atrisco solar and energy storage project in New Mexico. This capacity is expected to contribute $71 million in revenues and $56 million in EBITDA on a full year basis.
Neil: In light is now in the midst of delivering on its major expansion plan and we continue to execute on the build out of our mature portfolio.
Neil: From the beginning of 'twenty 'twenty four we have completed construction on 0.5, Gigawatts and one four gigawatt hour of capacity, including our flagship at risk of solar and energy storage project in New Mexico.
Neil: This capacity is expected to contribute $71 million in revenue and $56 million in EBITDA on a full year basis.
Gilad Yavetz: In the next two quarters, we will start with construction capex on 810 megawatts and more than 2 gigawatt hours at three additional projects in the US, which are expected to contribute $132 million in revenues and $106 million in EBITDA on an annual basis when fully operational. In the next three years, our global generation and storage capacity will triple, reaching 5.4 gigawatts and 5.9 gigawatt hours by 2027. The United States is now experiencing a transformation in electricity demand.
Neil: In the next two quarters, we will start with construction Capex on 810 megawatts and more than two gigawatt hour at three additional projects in the in the U S, which are expected to contribute $132 million in revenues and $106 million in EBITDA on an annual basis.
Neil: When fully operational.
Neil: In the next three years, our global generation and storage capacity will triple reaching five four gigawatts and five nine gigawatt hours by 2027.
Neil: The United States is now experiencing a transformation in electricity demand.
Gilad Yavetz: Power consumption is rising fast, and it's estimated that two-thirds of the growth in U.S. power demand till the end of this decade can be attributed to the electricity needs of data centers, AI, and electric vehicles alone. This is being reflected in higher PPA prices.
Neil: Power consumption is rising fast and it's estimated that two thirds of the growth in the U S power demand.
Speaker Change: This can be.
Attributed with the electricity needs of data centers.
Speaker Change: An electric vehicle alone.
Speaker Change: This is being reflected in higher PPA prices and light is uniquely positioned for a tight power market environment with a broad set of projects that are deliverable in the short to medium term.
Gilad Yavetz: Enlight is uniquely positioned for a tight power market environment with a broad set of projects that are deliverable in the short to medium term. These include our flagship Atrisco project with 364 megawatts and 1.2 gigawatt-hour capacity located in New Mexico, where we have recently achieved financial close for the energy storage portion of the complex for more than $400 million in loans and tax equity. This completes the financing for the entire Etruscan complex, with the solar portion financed in December 2021. Construction has been completed, with the gradual commencement of the solar component planned to begin in the coming weeks.
Speaker Change: These include our flagship at risk of project with 364 megawatts and one two gigawatt hour capacity located in new Mexico.
Speaker Change: We have recently achieved financial close for the energy storage portion of the complex for more than $400 million in loans and tax equity.
Speaker Change: This completes the financing for the entire at Frisco complex with the solar portion financed in December 2023.
Speaker Change: At risk construction has been completed with the gradual commencement of the solar component planned to begin in the coming weeks.
Gilad Yavetz: We expect full COD of the co-located solar and energy storage complex to be reached by the end of the year. We are also beginning to build additional capacity in the Western U.S. with country acreage, quail ranch, and roadrunner, three major projects totaling 810 megawatts and 2.0 gigawatt hours of capacity. We are now completing development and expect construction CAPEX to begin by the end of 2024. Equipment prices remain favorable, with panel and battery prices having fallen by around 25 to 30 percent from the start of 2023.
We expect we will be co located solar and energy storage complex to be reached by the end of the year.
Speaker Change: We are also beginning to build additional capacity in the western U S with country acreage quell ranch and Roadrunner three major projects totaling 810 megawatts and two points gigawatt hour capacity.
Speaker Change: We are now completing development and expect construction capex to begin by the end of 2024.
Speaker Change: Equipment prices remained favorable with patterns and battery prices, having fallen by around 25% to 30% from the start of 2023.
Gilad Yavetz: All these factors create extremely beneficial tailwinds for the project that we will be building between now and 2027, which we expect to yield an attractive unlevered return of approximately 10.5%. Adding in financing between 5.5% to 6% results in leveraged returns for the need-to-hide team.
Speaker Change: All these factors create extremely beneficial tailwind for the project that we will be building between now and 2027, which we expect to yield an attractive unlevered return of approximately 10, 5%.
Speaker Change: Adding in financing between five 5% to 6% result in leverage returns in the mid to high teens.
Gilad Yavetz: Our European projects are benefiting from robust market conditions. Spanish electricity prices, now in the 60 to 70 euro range, are resulting in excellent financial performance at Chakam. The profitability of this project is well above what we modelled when we first planned it, and we have already recovered half of our equity investment in the past three years. We have hedged 65% of Hekam's anticipated 2024 generation for €100 per MWh and have already begun billing up a hedge for 2025, which so far covers 45% of next year's output at a price of €64 per MWh.
Speaker Change: Our European project are benefiting from robust market conditions.
Speaker Change: Furnish electricity prices now in the 60 to 70 <unk> range are resulting in excellent financial performance of Chicago.
Speaker Change: The profitability of this project is well above what we modeled when first planet and we have already recovered half of our equity investment in the past three years.
Speaker Change: We have hedged 65% of anticipated 2020 for generation for 100 <unk> per megawatt hour.
Speaker Change: And they've already begun billing up hedged for 2025 with so far coverage, 45% of next year's output at a price of 64 euro per megawatt hour.
Gilad Yavetz: Chikama continues to excel on an operational level with generation volumes up 14% and 17% for the second quarter of 24 and first half of 24, respectively, when compared to the same periods last year. Construction at Project Pupin in Serbia continues on pace with turbines now being delivered and installed on site. This 94 megawatts wind farm achieved financial close last quarter and is scheduled to reach COD during the second half of 2025. Finally, Tepolza, a 60-megawatt fully-merged solar project, began operation on schedule at the end of July, marking the completion of our fifth project in Hungary.
Speaker Change: The camera continues to excel on an operational level with generation volumes up 14% and 17% for the second quarter of 24 in the first half 'twenty four respectively, when compared to the same periods last year.
Speaker Change: Construction at project propane in Serbia continues on pace with Durbin is now being delivered and installed on site.
Speaker Change: This 94 megawatts wind farm achieved financial close last quarter and is scheduled to reach CODI during the second half of 2025.
Speaker Change: Finally to pulse 60 megawatts fully merchant solar project began operation on schedule at the end of July.
Speaker Change: Marking the completion of our fifth project in Hungary.
Gilad Yavetz: Enlight keeps broadening its presence in Israel. Yesh and Reem, two projects that are part of the 248 megawatt and 593 megawatt-hour Israel solar and storage cluster, reach COD during the second quarter. The cluster is approaching its full capacity with three more projects left to be completed during 2024. We also received approval for 200 megawatts of additional interconnect to Israel's national grid, which will be used to expand the offtake of existing projects as well as support the launch of new ones.
Speaker Change: <unk> keeps on broadening its presence in Israel, yes, two projects that are part of the 248 megawatts and 593 megawatt hour, Israel solar and storage cluster rig <unk> during the second quarter. The cluster is approaching its full capacity with Fremont.
Speaker Change: <unk> left to be completed during 2024.
We also received approval for 200 megawatts of additional interconnect to Israel's national grid, which will be used to expand the uptake of existing projects as well as support the launching of new ones.
Gilad Yavetz: On the commercial side, we continue to expand our reach into Israel's newly deregulated power system. Our joint venture with Electropower to supply electricity to the country's household sector was formally launched in July, and we signed five additional PPAs with industrial customers. This quarter showed strong financial performance, which is reflected in our results and increased guidance range. The U.S. market presents a compelling opportunity to drive Enlight's rapid growth. Power demand continues to rise, while equipment costs remain low, resulting in higher PPA prices and attractive projects.
Speaker Change: On the commercial side, we continue to expand our reach into Israel newly deregulated power sector.
Speaker Change: Our joint venture with electric power to supply electricity to the country's household sector was formally launched in July and we signed five additional ppas with industrial customers.
Speaker Change: To summer.
This quarter showed strong financial performance, which is reflected in our results and increased guidance ranges.
Speaker Change: U S market presents a compelling opportunity to drive some lights rapid growth.
Speaker Change: Power demand continues to rise while equipment costs remain low resulting in higher PPA prices and attractive project returns, we continue to progress with our development goals and projects on a global scale.
Gilad Yavetz: We continue to progress with our development goals and project CODs on a global scale. And it is exactly such an environment that positions Enlight to realize its dual goal of delivering higher-than-market growth and higher-than-market profitability. I'd now like to hand the call over to Adam. Thank you, Gilad.
Speaker Change: It is exactly such an environment, which positions <unk> to realize its dual goal of delivering higher than market growth at higher than market returns.
Speaker Change: I would now like to hand, the call over to Adam.
Adam Piszel: Thank you good luck.
Adam Pishl: Enlight and Clean Air continue to deliver on our rapid expansion strategy in the U.S. renewable energy market. We are currently focused on commissioning the Atrisco project, as well as financing and starting construction on the Quail Ranch, Roadrunner, and Country Acres projects. Together, these four projects total approximately 1.2 gigawatts of solar and 3.2 gigawatt hours of energy storage capacity. Let us begin with a closer look at Atrisco.
Adam Piszel: In light and clean Eric continued to deliver on our rapid expansion strategy in the U S. Renewable energy market. We are currently focused on commissioning the <unk> project as well as financing and starting construction on the <unk> ranch.
Adam Piszel: Good runner and country acreage projects.
Adam Piszel: Together. These four projects total approximately one two gigawatts of solar and 3.2 gigawatt hours of energy storage capacity.
Adam Pishl: This project has a capacity of 364 megawatts of solar and 1.2 gigawatt hours of energy storage and is one of the largest battery projects in the U.S. The first portion of the solar facility is expected to be connected to the grid imminently. And we expect the remaining solar and energy storage components to be connected and achieve COD later this year. In addition, we recently reached financial close on the energy storage portion of the project, receiving more than $400 million of debt and tax equity from top-tier lenders, including HSBC and U.S. Bank. This financing from the world's leading banks demonstrates the quality of our projects and our ability to fund our growth. We are proud to have earned their trust and are excited to build upon these key relationships.
Adam Piszel: Let us begin with a closer to looking at Trustco. This project has a capacity of 364 megawatts of solar and one two gigawatt hours of energy storage and is one of the largest battery projects in the U S.
Adam Piszel: The first portion of the solar facility is expected to be connected to the grid eminently.
Adam Piszel: We expect the remaining solar and energy storage components to be connected and achieve Cfd later this year.
Adam Piszel: In addition, we recently reached financial close on the energy storage portion of the project receiving more than $400 million of debt and tax equity from top tier lenders, including HSBC and U S Bank.
Adam Piszel: This financing from the world's leading banks demonstrates the quality of our projects and our ability to fund our growth.
Adam Piszel: We are proud to have earned their trust and are excited to build upon these key relationships.
Adam Pishl: As Atrisco nears completion, we continue to focus on Country Acres, Quail Ranch, and Roadrunner. These projects total 810 megawatts of solar and over 2 gigawatt hours of energy storage capacity. All three projects are nearing construction. Development of Country Acres, a 392 megawatt energy and 688 megawatt hour battery project in California, is progressing. And we are finalizing details with the utility. Quail Ranch, a New Mexico project, is a 128-megawatt solar and 400-megawatt-hour storage brownfield expansion of Atrisco.
Speaker Change: As of Trustco nears completion, we continue to focus on country acres quell ranch and Roadrunner.
Speaker Change: These projects total 810 megawatts of solar and over two gigawatt hours of energy storage capacity.
Speaker Change: All three projects are nearing construction development of country acres, a 392 megawatt energy and 688 megawatt hour battery project in California is progressing and we are finalizing details with the utility.
Speaker Change: <unk> ranch in the Mexico project is a 128 megawatt solar and 400 megawatt hour storage brownfield expansion of the trust scale <unk>.
Speaker Change: It awaits regulatory and legal approval of the PPA and Esa agreements.
Adam Pishl: Awaiting regulatory and legal approval of the PPA and ESA agreements, Roadrunner is a 290 megawatt solar and 940 megawatt-hour energy storage project in Arizona. It is currently awaiting government permits ahead of construction. The COVAR complex is currently made up of three projects totaling 1.2 gigawatts of solar and 824 megawatt hours of energy storage, with the potential to expand the energy storage portion to an additional 3.2 gigawatt hours, making it the largest complex we have announced in the U.S. The project has been delayed due to the interconnection queue reform announced by APS in the third quarter of 2023.
Speaker Change: Roadrunner is at 290 megawatt solar and 940 megawatt hour energy storage project in Arizona. It is currently awaiting government permits ahead of construction.
Speaker Change: We are also excited to highlight our CFR complex in Arizona.
Speaker Change: The sale of our complex is currently made up of three projects totaling one two gigawatts of solar and 824 megawatt hours of energy storage with the potential to expand the energy storage portion to an additional three two gigawatt hours, making it the largest complex we've announced in the U S.
Speaker Change: The project has been delayed due to the interconnection queue reform announced by Aps in the third quarter of 2023.
Adam Pishl: This process is still ongoing, and we continue to work with the utility to help enable completion of the interconnection facilities as rapidly as possible. The energy market continues to provide compelling support for our project fundamentals. Increased demand for renewable energy is reinforcing PPA pricing, which reflects the scarcity of new projects. However, both solar module and battery prices are lower than at the beginning of last year. Additionally, there are some indications interest rates may begin to drop, which would have a positive impact on our cost of finance.
Speaker Change: This process is still ongoing and we continue to work with the utility to help enable completion of the interconnection facilities as rapidly as possible.
Speaker Change: The energy market continues to provide compelling support for our project fundamentals.
Increased demand for renewable energy is reinforcing PPA pricing, which reflects the scarcity of new projects, both solar module and battery prices are lower than at the beginning of last year.
Speaker Change: Additionally, there is some indication interest rates may begin to drop which would have a positive impact on our cost of finance.
Adam Pishl: Our relationship with suppliers remains strong, and we have been able to adapt to the new AD-CBD framework. For example, one of our key panel suppliers has relocated cell production to non-affected Southeast Asian countries, which enables a stable supply of modules for future projects. In light of the current US regulatory environment, we're expanding relationships with suppliers to further diversify our supply chain and pursue more domestic content qualification. These important partnerships are able to adapt to changing market conditions and continue to deliver high quality projects are propelling our U.S. expansion strategy. I'd now like to turn the call over to Nir for a review of our quarterly results, Mayor.
Speaker Change: Our relationship with suppliers remains strong and we have been able to adapt to the new CBD framework. For example, one of our key panel suppliers has relocated self production to non affected southeast Asian countries, which enables a stable supply of modules for future projects.
Speaker Change: In light of the current U S regulatory environment, we're expanding relationships with suppliers to further diversify our supply chain and pursue more domestic content qualifications.
Speaker Change: These important partnerships, our ability to adapt to changing market conditions and continuing to deliver high quality projects are propelling our U S expansion strategy.
I would now like to turn the call over to near for review of our quarterly results.
Nir Yehuda: Thank you, Adam. In the second quarter of 2024, the company's revenue increased to 84 million, up from 53 million last year, a growth rate of 61 percent. Growth was mainly driven by new projects compared to last year, as well as higher production and inflation indexation at some of our operational projects. This is the second quarter of 2023, when new projects in the US, Hungary, and Israel started selling electricity. The most important of these is Genesis Wings, which contributed $10 million to revenue, followed by the Israel Storage and Solar Cluster, which added an additional $6 million. Bjorn Berg, with a limited amount of power during the second quarter of 2023, contributed $5 million this year.
Near: Thank you Adam in the second quarter of 2004, the company revenue increased to $84 million up from $53 million last year, the growth rate of 61% year over year.
Near: Growth was mainly driven by new projects compared to last year as well as higher external inflation indexation.
Near: Some of our operational project.
Near: In the second quarter of 'twenty, three where new project in the U S ongoing in Israel started selling electricity.
Near: Most important of these genesis, which contributed $10 million to revenue.
Near: By the Israeli storage and solar glass.
Near: An additional 6 million beyond that.
Near: Limited the amount of viewing the second quarter of 'twenty three contributed $5 million in this quarter.
Nir Yehuda: The Tama revenue increased 37% year-over-year to $13 million, as the project benefited from positive pricing and production. We sold electricity at an average of 71 euros per megawatt versus 58 euros per megawatt for the same period, while production was up 40% from the same period last year. The average price realized through our hedging strategy was 85 EUR per MW, covering 70% of the quarter production. However, talent market conditions have significantly filled up with prices in the range of 60 to 70 EUR per month.
Near: <unk> revenue increased 37% year over year to 13 million deployed has benefited from positive pricing and production trends, we told electricity and then <unk> 71 per megawatt.
Near: Sir.
Near: Megawatt for the same period this year.
Near: Production was up 40% from the same period last year.
Near: The average realized through our hedging strategy was 85.
Near: Covering 70% of the quarter production.
Near: Current market condition, that's significantly up.
Speaker Change: I think in the range of 60 to 70 per megawatt.
Nir Yehuda: Finally, the reclassification of financial asset projects in Israel shows that asset projects boosted revenue by five years. The second quarter net income decreased from $22 million last year to $9 million this year, a decline of 58% year-over-year. The impact of new projects added $6 million. In addition, we experienced a significant inflation impact on our second denominated debt, which resulted in non-cash financial expenses of $5 million. We also expect revenues to rise higher due to the index linkage for the majority of our electricity PPAs in Israel, which we reflected in our financial statement starting for 2025 onward. Overall, this represents a net benefit to the country. The reclassification of the financial assets reduced financial income by $3 million.
Speaker Change: Finally, the reclassification of financial assets projected in Israel, the fixed asset.
Speaker Change: <unk> by $5 million.
Speaker Change: Second quarter net income decreased from $22 million last year to $9 million this year.
Speaker Change: A 58% year over year, the impact of new projects added $6 million.
Speaker Change: This year, we experienced significant inflation impact on our second denominated debt, which resulted in a noncash financial expenses of 5 million.
Speaker Change: We expect revenue to right.
Speaker Change: The index linkage for the majority of our electricity PPA in Israel, which will be reflected in our financials definitely starting for 'twenty five onwards.
Speaker Change: Although this represents a net benefit to the company.
Speaker Change: The reclassification of the financial assets reduced financial income by $3 million. In addition, other income in the second quarter of last year was higher by $10 million net of tax.
Nir Yehuda: In addition, other income in the second quarter of last year was higher by $10 million net of tax due to one-off benefits linked to the change in the Clean Air and Air Not Calculation and recognition of LDs from Siemens Gamesa due to the delay in reaching full production at Project Bureau in Beirut. In the second quarter of 2004, the company's adjusted EBITDA grew by 39% to $58 million, compared to $42 million for the same period in 2010.
Speaker Change: One of benefits linked to changes in our calculation.
Speaker Change: Combination of LDL from Siemens Gamesa due to the delay in reaching full production with project billing.
Speaker Change: In the second quarter of 24, the company adjusted EBITDA grew by 39% to $58 million compared to 42 million for the same period in 2003.
Nir Yehuda: On the whole, Adjusted EBITDA growth was driven by the same positive factor which affected our revenue growth and which contributed $24 million. Note that Adjusted EBITDA for Q2 of 2023 was boosted by $8 million from recognition of NDIS compensation. Look at our balance sheet. Enlight achieved the major financial closing of Atrisco Energy Storage in the U.S. at the end of July.
Speaker Change: <unk> adjusted EBITDA growth was driven by the same positive factor, which affected our revenue growth and which contributed 24 million note that adjusted EBITDA for the second quarter of 'twenty, three where good stead by $8 million for recognition of this compensation.
Speaker Change: Looking to our balance sheet and like to keep the major financial closing of at risk for energy storage in the U S. At the end of July.
Nir Yehuda: We raised $407 million in term loans and tax equity for the construction of the energy storage component of the project. When added to the $303 million raised at the financial close of the solar portion in December 2023, the total financing and tax equity amount to $710 million for the entire solar energy storage complex. Financial and tax equity arrangements for the entire Atrisco project are now complete.
Speaker Change: $407 million in term loans and tax equity for the construction of energy storage component of the project when adding the 303 million way the financial close of the solar portion in December 'twenty, three the total financing and tax equity amount to $710 million for the entire solar energy.
Speaker Change: It's complex financial and tax equity arrangement or the entire that risk of project now complete we also recycled $234 million on the axis capital back to light as a result of this transaction. This fund will be used.
Nir Yehuda: We also recycled $234 million of the excess capital back to Enlight as a result of this transaction. This fund will be used to propel Enlight's future growth. In addition, Enlight has 320 million of revolving credit facilities at the Israeli Bank, of which 170 million have been drawn as of the publication of this report. Moreover, in the second quarter of 2014, cash flow for operations was 56 million, an increase of 42% year over year. Moving to 24 guidance.
Speaker Change: And like future growth forward.
Speaker Change: In addition in light has $320 million revolving credit facility at the Israeli bank of which $170 million has been drawn and as that was the publication of this report more in the second quarter of 2004 gets the full duration.
Speaker Change: $56 million, an increase of 42 percentage year over year.
Nir Yehuda: Given the strong set of results we delivered for the second quarter and first half of 24, we are raising our financial outlook for the year. On the back of sound operational performance, as well as O&M and SG&A cost savings, our range for 24 revenue guidance rises to $345 to $360 million from $335 and $360 million previously. And our adjusted EBITDA guidance range rises to $245 to $260 million from $235 to $255 million per year.
Speaker Change: Moving to 2000 <unk> guidance given the strong set of results we delivered for the second quarter and first half of 'twenty four.
Speaker Change: Turning to our financial outlook for the year on the back of sound operational performance as well as well and SG&A cost saving our range for 'twenty for revenue guidance drives us to $345 million to $360 million.
Speaker Change: And 35 and 360 million previously.
Speaker Change: Adjusted EBITDA guidance range to 200.
Speaker Change: And $45 million to $260 million from $235 and 255 million patients.
Nir Yehuda: This represents an increase of $5 million and $7.5 million from previous midpoints, respectively, and further demonstrates the financial strength of the company as it continues to deliver rapid growth and expansion. I will now turn the call over to the operator for questions.
Speaker Change: Present, an increase of 5 million and $7 5 million from the previous midpoint, respectively, and further demonstrate the financial strength of the company as it continues to deliver rapid growth and expansion.
Speaker Change: I will now turn the call over to the operator for questions.
Operator: Thank you. To ask a question, you will need to press star 1 and 1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1 and 1 again. Please stand by while we compile the Q&A queue. Our first question comes from the line of Justin Clare from Roth Capital Partners. Please go ahead; your line is open.
Speaker Change: Thank you.
Speaker Change: Ask a question you will need to press star one and one on your telephone and wait for your name to be announced to withdraw. Your question. Please press star one and one again please.
Speaker Change: Please standby, while we compile the Q&A queue.
Speaker Change: Yes.
Speaker Change: Our first question comes from the line of Justin Clare from Roth Capital Partners. Please go ahead. Your line is open.
Justin Clare: Hi, thanks for taking the question. So, first off, I was wondering if you could just share how much of your capacity that is currently planned for completion through 2027 is uncontracted at this point. And maybe if you could just talk about your strategy for contracting the remainder of your open capacity, share when you might be able to sign PPAs for the uncontracted amount, and then just, you know, do you anticipate PPAs likely to be above where you've contracted other assets recently? It sounds like PPA prices are continuing to move upwards. Maybe you could comment on what you're seeing there.
Justin Clare: Hi, Thanks for taking the question so first off.
Justin Clare: Was wondering if you could just share how much of your capacity that is currently planned for completion through.
Speaker Change: 2027 is <unk> at this point and maybe if you could just talk about your strategy for contracting the remainder of your open capacity.
Speaker Change: Sure when you might be able to sign ppas for the UN contracted amount and then just do you anticipate PPA is likely to be above where you've contracted other assets recently it sounds like PPA prices are continuing to move upward. So maybe you can just comment on what youre seeing there.
Yonah Weisz: Yonah, why don't you take this question, so Adam can compliment you?
Speaker Change: Now why are you why don't you take this question and Adam can content engine.
Yonah Weisz: Justin, hi there. Thanks for your question. At this point, most of our projects are contracted. However, we do have some open PPAs on the far end of our mature portfolio. However, the important thing to point out here is that our advanced development portfolio, which is a bit further out than our mature portfolio, is completely uncontracted. We do have a sense, given the demand that we see in the United States, that PPAs will remain at the levels that we see today and have the potential for increasing.
Adam Piszel: Just that high that thanks for your question.
Speaker Change: At this point.
Speaker Change: We have some most of our most of our projects are contracted we.
Speaker Change: We do have some open.
Speaker Change: Ppas on the far end of our mature portfolio.
Speaker Change: However, the important thing to point out here is that our advanced development portfolio.
Speaker Change: <unk>.
Speaker Change: Again, a bit further out than a mature portfolio is completely UN contracted.
Speaker Change: And we do have a sense given the demand that we see in the United States that Ppas will remain.
Speaker Change: At the levels that we see today and have potential for increases.
Adam Pishl: Yeah, thank you for your question. And thank you. Thank you, Yonah. Just to add a little bit of color there, certainly those PPAs we expect to continue to be at this level or higher in the future. We are actively, with some of the projects that we currently have, actively renegotiating PPA prices and receiving higher rates than were previously contracted as well.
Speaker Change: Yes. Thank you for your question and thank you. Thank you.
Speaker Change: Just to add a little bit of color there certainly those.
Speaker Change: Ppas, we expect to continue to be at this level or higher in the future.
Speaker Change: We are actively with some of the projects that we currently have actively renegotiating PPA prices.
Speaker Change: And receiving higher rates than were previously contracted as well.
Justin Clare: Okay, great. And then maybe we can shift to the supply chain here. You know, I was wondering if you could just share where you are in the procurement process. As we look at Quail Ranch, Roadrunner, and Country Acres, it sounds like you do have a cell supplier now that's manufacturing in countries that are unaffected by the ADCVD, the new framework that was put in place. I'm wondering, is that supplier currently in the process of ramping up new manufacturing facilities? Is supply available today? And then maybe you could comment on just where you're seeing module prices for US projects. Has that moved upward since the introduction of this new ADCVD framework?
Speaker Change: Okay Alright, great.
Speaker Change: Then maybe just shifting to.
Speaker Change: The supply chain here.
Speaker Change: I was wondering if you could just share where you are in the procurement process as we look at Quail Ranch road runner country acres.
Speaker Change: It sounds like you do have a cell supplier now that's manufacturing in countries that are unaffected by the <unk>.
Speaker Change: The new framework that was put in place.
Speaker Change: <unk>.
Speaker Change: Is that supplier currently in the process of ramping up new manufacturing facilities is supply available today.
Speaker Change: And then maybe you could comment on just where youre seeing module prices for U S projects.
Speaker Change: Moved upward since the.
Speaker Change: Introduction of this new ADC Muni framework.
Gilad Yavetz: Yeah, I can start, and then Adam, you can compliment me if you like. Hi, it's Gilad. So, in general, as you asked, as you said in your question, we have secured the line of supply for panels for three projects in the U.S. through a non-ADCBD impacted country. It means that we have a reliable source of supply for all the 800 megawatts in countries that are not impacted, so not from the four countries in Southeast Asia, rather than in India.
Speaker Change: Yes, I can start and then you can complement me if you like high three labs so in general.
Speaker Change: <unk>.
Speaker Change: As you said in your question. So we have secured.
Speaker Change: The line.
Speaker Change: Our supply floor panels for the product in the U S.
Speaker Change: Don.
Speaker Change: 80, CVD impacted currencies. It means that we have a reliable source of supply for all the 800 megawatts.
Speaker Change: In countries that are not impacted so not from the four countries in southeast Asia rather than.
Speaker Change: In India.
Speaker Change: <unk>.
Speaker Change: In terms of the trend on the price so.
Gilad Yavetz: And in terms of the trend in price, we see, of course, I think we need to start with the base trend. So the price before tariffs and then prices after tariffs. So if we analyze prices before tariffs, we see a very sharp drop in base panel prices throughout the world. Today, before tariffs, we are on $110 per kilowatt on the international market. And we see the same trend for batteries. We are now on $170 per kilowatt.
Speaker Change: We see of course, I think we need to start with the base trend. So before tariffs and then prices after the tariffs. So if we analyze pricing before tariffs that we see.
Speaker Change: And a very sharp drops in the base panel prices throughout the world.
Speaker Change: Today.
Speaker Change: Before.
Speaker Change: We are on $110 per kilowatt.
Speaker Change: On the international market and we see the same trend for batteries, we are now on $170.
Speaker Change: Per kilowatt and we see this trend going down so towards 'twenty clarity, we will we believe or analysts estimate that prices will go down to 70 and 110, respectively.
Gilad Yavetz: And we see this trend going down. So towards 2030, we will, we believe, or analysts estimate that prices will go down to $70 from $110. So in the U.S., with the tariff, of course, prices are higher, but still lower than what we saw at the beginning of 2023. We are about 25 percent lower than and sometimes 30 percent lower than the prices that we assumed in our model in 2023. Therefore, the returns for the projects right now are increasing in the overall through this higher level of PPA prices, as we mentioned before, lower levels of panels in the U.S. overall after the tariff.
Speaker Change: In the U S with the tariff cost prices are higher but still lower than what we saw at the beginning of 2023, we are about 25% lower than sometimes 30% lower than the prior to that.
Speaker Change: We assumed in our model in 2023, therefore, the returns for the project right now are increasing in the overall.
Speaker Change: Through this higher level of PPA prices as we mentioned before lower level off.
Speaker Change: Patterns in the U S in the overall after the Paris.
Gilad Yavetz: And let's say the stabilized financing costs that we see with some positive trend of the cost of finance even declining. So, overall, we see better returns. We mentioned in our presentation an average return for the new project of ten point five percent before leverage, which is even a rough return because only EBITDA to EBITDA. So if you take the long-term result, it's even better. And, of course, after leverage with a cost of capital around six percent and maybe lower returns, which is a deeper thing. So we think we see good trends in the market right now.
Speaker Change: And that's a destabilized financing costs that we see with some positive trends.
Justin Clare: Okay, great. That's, that's very helpful. One more question, just on domestic content here, the potential for the adder, I was wondering if you think you could secure the domestic content adder for any of your battery storage projects with CODs in 2025 or 2026? Sounds like there are different suppliers that are offering alternative approaches to qualifications, some with domestic cells, some without. So I was wondering if that has been factored into your model and what the potential is for securing that adder.
Speaker Change: So just wondering if that has been factored into your model and what the potential is for for securing that adder.
Gilad Yavetz: So we'll start with Atrisco. Atrisco, as you know, is based on Tesla batteries, and they have the potential to qualify for the tax equity adder. We will know that for sure on COD.
Speaker Change: So we'll start with a critical eye Transco as you know is based on Tesla batteries and.
Speaker Change: They have potential to qualify for the tax.
Speaker Change: Equity either we will know that for sure <unk>. So.
Speaker Change: So currently its not model it it's a pure upside and we will see in the future.
Gilad Yavetz: So currently, it's not modeled, it's a pure upside, and we will see in the future regarding additional projects in the US. So in the project where we will use Tesla, so there is a potential for the US content, of course, it's, you know, it varies from project to project to clear the line. But there is a clear potential for that. And for the rest of the suppliers, I believe the potential is a little bit down the road towards 26, 27.
Speaker Change: Regarding additional projects in the U S. So in the project, where we will use.
Speaker Change: And Tesla. So there is a potential for the U S content of course, it's a.
Speaker Change: It varies from project to project to clear the line.
Speaker Change: But there is a clear potential for that and for the rest of the suppliers. They believe the potential is a little bit down the road towards 'twenty six 'twenty seven.
Justin Clare: Okay, great. I appreciate it. Thank you.
Speaker Change: Okay, Great I appreciate it thank you.
Speaker Change: Thank you.
Operator: Once again, to ask a question, you will need to press star one and one on your telephone and wait for your name to be announced. To withdraw your question, please press star one and one again. We'll now move on to our next question. Our next question comes from the line of Maheep Mandloi from Mizuho. Please go ahead; your line is open.
Speaker Change: Once again to ask a question you will need to press star one on one on your telephone and wait for your name to be announced to withdraw. Your question. Please press star one on one again.
Speaker Change: Well now move on to our next question.
Speaker Change: Oh.
Speaker Change: Our next question comes from the line of Mohit month Loy from Mizuho. Please go ahead. Your line is open.
Maheep Mandloi: Hey, hello, and thanks for taking the questions here. Just following on the last question there, can you confirm on the unlevered returns, does that assume your latest module cost assumptions as a supplier move to the US? And on the Tesla content or other domestic suppliers, does it also include the domestic content, or is that still an upside to the yields there?
Speaker Change: Hey.
Mohit Mangloy: Hello, guys. Thanks for taking the questions just wondering with the last question can you confirm on the Unlevered returns does that assume.
Speaker Change: Your latest module cost assumptions I just supply in the U S.
Speaker Change: And on the desktop contender other domestic suppliers does it also include the domestic contango that's an.
Speaker Change: An upside to the user.
Nir Yehuda: So, the tax equity adder for domestic content is still not included, so it's an upside on which we will know in the coming months. And on the brownfield side, the sport side is included.
Speaker Change: So the tax the tax equity either for domestic content is still not included so it's an upside on which way we will know in the coming months.
Speaker Change: And on the brownfield side for at risk launches included.
Maheep Mandloi: And maybe one question just on slide 18, I think it was 18, where you kind of like show the timeline of projects to be delivered in Virginia or the list of projects with construction on the development. Could you maybe talk about the timeline of when do you expect those to be installed or COD in Virginia and what kind of returns are looking over there as well?
Speaker Change: Perfect perfect.
Speaker Change: And then maybe one question just on slide I think it was.
Speaker Change: 18, where you kind of like show the timeline of the projects.
Speaker Change: Projects to be delivered in Virginia, no delay so far this with the.
Speaker Change: Construction on the development could you just maybe talk about the timeline on when do you expect those to be installed.
Speaker Change: Install or CRB, and Virginia, and what kind of returns you are looking at with that as well.
Yonah Weisz: Yeah, a great question. Thanks.
Speaker Change: Yeah. Great question. Thanks, So are we do have quite.
Yonah Weisz: So we do have, you know, quite a substantial portfolio there in PGM, comparing, let's say, in light of the fact that Cleanera is a developer whose expertise is usually in the West, and 70% of the portfolio comes from the West. Having said so, we do have a couple of projects, about five to seven projects in PJM, still in the permitting phase, so we are still under development. We will see in the future.
Yonah Weisz: We got some good interconnection responses. We hope to complete the permitting. So this is an upside that we will see for the future, for the next quarter, on how we develop. In the meantime, we do have, after the three projects that Adam mentioned in his remarks, Quail Ranch, Roadrunner, and Country Acres, we do have additional, a bunch of projects that are really approaching maturity in terms of completion of development. We see a very strong trend of construction in 2025, after the three projects mentioned or following the three projects that were mentioned. So we see, I believe that we are starting to see the fruits of our investments, together with Cleanera, on the development side in the U.S., and very large projects are coming to fruition.
Maheep Mandloi: And then this last one on slide 14 of the portfolio, I think it looks like you pushed out some CNN megawatts from 2026 to 2027. Sorry if I missed this earlier. Could you just remind us what project that is or what's causing it? Yonah, would you like to take the answer?
Speaker Change: 2026 to 2027, I'm, sorry, if I missed this earlier could you just remind us what what project that is what's causing that.
Speaker Change: Would you like to take the answer.
Yonah Weisz: Sure. Maheep, may I ask you just, could you repeat the question?
Speaker Change: Sure.
Speaker Change: Let me ask you just could you repeat the question.
Maheep Mandloi: Yeah, and if I look at the 2026 mature portfolio size, including the pre-construction, it seems 300 megawatts lower than what you had the last quarter. It looks like the project was moved out from 2026 to 2027. I just want to understand what that is about.
Speaker Change: Yes, if I look at the 2026.
Speaker Change: Your portfolio size of it including a pre construction the team 300 megawatt slower than what you had last quarter. So it looks like project was moved out from 'twenty to 'twenty six 'twenty seven.
Speaker Change: I understand what drove that.
Yonah Weisz: Thank you very much for that. I'll just take you back a quarter. In Q1, we talked about Rustic Hills moving out to 2027 in order to benefit from what we believe will be a healthy domestic panel production industry in the United States. We moved Rustic Hills out to 2027 in order to plan to get those domestically produced panels at or in addition to the IRA adder for domestic content. And that was a worthwhile move for us. And so we've done the same thing in this quarter for Gemstone and Kogan.
Speaker Change: Thank you very much for that.
Speaker Change: Yes, so I'll just take you back a quarter.
Speaker Change: In Q1, we talked about rustic hills moving out to 2027 in order to benefit from what we believe will be a.
Speaker Change: A healthy domestic panel production at panel production industry in the United States.
Speaker Change: And so we moved dress to kill us out to 2027.
Speaker Change: And in order to plan to get those domestically produced panels.
Speaker Change: At.
Speaker Change: Or in addition to the IRI added four domestic content and that was a worthwhile move for us until we've done the same thing in this quarter for gemstone and Kogan and Thats. The 300 megawatt would you have seen transferred into 2027.
Yonah Weisz: And that's the 300 megawatts which you've seen transferred into 2027. Again, from the idea of by that time, we'll have a good amount of domestic content eligible panels to purchase, which is better for us. At the same time, the utility, which we're in touch with, is not really under any pressure for that immediate supply. And so they're agreeing with this move as well.
Speaker Change: Again from the idea of but that time will have a good amount of domestic content eligible panels to purchase which is better for us.
Speaker Change: At the same time, the utility, which we're in touch with is not really.
Speaker Change: Any pressure for that immediate supply and so there are green agreeing with this move as well.
Maheep Mandloi: Got it. Thank you.
Speaker Change: Got it.
Speaker Change: Thank you.
Speaker Change: Thank you.
Speaker Change: Thank you.
Operator: We'll now move on to our next question. Our next question comes from the line of David Paz from Wolf Research. Please go ahead, your line is open.
Speaker Change: We will now move on to our next question.
Speaker Change: Our next question comes from the line of David Paz from Wolfe Research. Please go ahead. Your line is open.
Speaker Change: Yeah.
David Paz: Good morning.
David Paz: All right, good morning. Can you elaborate, please, on the interconnection queue reform for COBAR in Arizona? Are you waiting for a specific regulatory order? When do you expect clarity on that issue?
David Paz: Hi, good morning.
David Paz: Can you elaborate please on the interconnection queue reform foreseeable bar and Arizona are you away.
Speaker Change: We're waiting on a specific regulatory order when do you expect clarity.
Speaker Change: On that issue.
Adam Pishl: Adam, would you like to take the question?
Speaker Change: Adam would you like to take the question.
Adam Pishl: Yeah, so we've been working very closely with utility. That discussion is ongoing. We expect to receive clarity on that in the coming month.
Adam Piszel: Yes, so we've been working very closely with utility that that discussion is ongoing we expect to receive clarity on that.
Speaker Change: Coming months.
David Paz: And is that the gating item? Do you have to do a subsequent filing or proceeding?
Speaker Change: And is that the gating I am do you have to do a subsequent filing are proceeding.
Adam Pishl: That is the gating item, and we expect the utility to be very helpful in this process. And so we expect that to close out here pretty quickly.
Speaker Change: That is the gating item and we expect the utility has been very helpful. In this process and so we expect that to close out here pretty quickly.
David Paz: Great. And you may have just addressed this in a previous question, but how much capacity is in the advanced development book that is not in your mature projects, but you footnote it in your slides. Is that what you just described in the previous question with Gemstone and Kogan or those other plants?
Speaker Change: Great and you may have just addressed this on the previous question, but.
Speaker Change: How much capacity is in the advanced development book.
Speaker Change: That is not in your mature projects, but you footnoted in your slides is that what you just described the previous question with gemstone in cogan or those other plants.
Yonah Weisz: There are much bigger plans, so Yonah, maybe you can go over the main projects that are in the queue after the three next ones in the U.S. and mention also a little bit about the progress in Europe and Israel as well. That is the aggregating.
Speaker Change: There are a lot bigger plants.
Oscar: Maybe you can go over the main projects that are in the queue Oscar.
Speaker Change: Great next one in the U S and you mentioned also the progress in Europe, and Israel as well that is aggregating.
David Paz: Okay, again, you're asking as to what's in the box.
Speaker Change: Okay again.
Speaker Change: You, you're asking as to what's in the advanced development portfolio.
Yonah Weisz: Let's put it on the slide, the immature project. Forgive me. Could you repeat that?
David Paz: Sure, in your mature projects portfolio, there's a footnote that says that it excludes some events, some projects in 2027 in your advanced development book that are not illustrated. I'm just curious what that potential could be for 2020, or that could be pulled into your Metro Projects book. Sure, it could be... It could be around 4 gigawatts of generation and up to 14 gigawatts of storage.
Yonah Weisz: Okay, great. Thank you. Can you, Yonah, could you elaborate a little bit about Silver and Snowflake and the other projects and give some color on what we have in line after the three projects that were mentioned specifically as mature?
Yonah Weisz: On FioBar, we have essentially a very large potential capacity of uncontracted David Paz, Yonah Weisz, David Paz, Julien Dumoulin, Jason Ellsworth, Yosef Lefkovitz, and storage capacity, and that is uncontracted as well. We also have projects which we may be working on in the Balkans, as well as looking for Italy and Spain as well.
Oscar: Of generation capacity and approximately two gigawatts of.
Oscar: Right.
Oscar: Storage capacity and that is on that is unconstructed as well.
Oscar: We also have projects in which we may be working on.
Speaker Change: In the Balkans.
Speaker Change: As well as.
Speaker Change: Also looking for Italy, and Spain as well.
Speaker Change: Yeah.
David Paz: Great. Okay. Thank you.
Speaker Change: Great Okay.
Speaker Change: Thank you.
Operator: Thank you. We'll now move on to our next question. This next question comes from the line of Adiel Hassidim from Banklumi.
Speaker Change: Thank you well now move onto our next question.
Operator: Please go ahead, your line is open. And there is no response. That concludes today's question and answer session. So I'll hand the call back to Yonah for closing remarks.
Speaker Change: Okay.
Speaker Change: Our next question comes from the line of at Yale has is Dan from Bank Leumi. Please go ahead. Your line is open.
Speaker Change: Yeah.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Yes.
Speaker Change: There is no response that concludes today's question and answer session. So I'll hand, the call back to <unk> for closing remarks.
Yonah Weisz: Thank you everyone for joining us, and we look forward to speaking with you next quarter.
Speaker Change: Thank you everyone for joining us and we look forward to speaking with you next quarter.
Operator: This concludes today's conference call. Thank you for participating. You may now disconnect. Speakers, please stand by.
Speaker Change: This concludes today's conference call. Thank you for participating you may now disconnect speakers. Please standby.
Speaker Change: Right.