Why did NRGV's Q4 2024 earnings fall short of forecasts?

NRGV's Q4 2024 earnings fell short of forecasts due to several key factors:

1. **Revenue Shortfall**: Energy Vault reported a revenue shortfall, generating $33.5 million for the quarter, which contributed to a full-year total of $46.2 million. This fell slightly below its guidance, impacting investor sentiment and earnings.
2. **Lower-than-Expected Revenue**: The company attributed the shortfall to declining lithium-ion battery prices, the timing of revenue recognition for projects in Australia, and its decision to retain $100 million in projects on its balance sheet instead of recognizing them as revenue.
3. **Increased Credit Losses**: Energy Vault's financial performance was further impacted by a provision for credit losses related to a gravity license from a customer in 2022. Delays in payment receipt led to this reserve, emphasizing the importance of timely cash flow management.
4. **Strategic Shift Impact**: The company is transitioning to an "own and operate" model, which boosted its backlog to $660 million but temporarily reduced near-term revenue by approximately $150 million.

In summary, Energy Vault's Q4 2024 earnings fell short due to revenue shortfall, lower-than-expected revenue, increased credit losses, and strategic shift impact.