Name: First Solar Inc. (NASDAQ:FSLR) | Analysis of Revenues
Creator: Stock Analysis on Net

Analysis of Revenues

Revenues as Reported

Revenues as Reported

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First Solar Inc., income statement, revenues

US$ in thousands

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Solar modules	3,296,809)	2,428,278)	2,331,380)	1,736,060)	1,460,116)
Solar power systems	19,951)	153,290)	513,362)	794,797)	1,148,856)
O&M services	1,861)	11,995)	43,060)	115,590)	107,705)
Energy generation	(19)	25,756)	37,614)	61,948)	54,539)
EPC services	—)	—)	(2,039)	2,937)	291,901)
Net sales	3,318,602)	2,619,319)	2,923,377)	2,711,332)	3,063,117)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Net sales exhibited a volatile trajectory between 2019 and 2023, characterized by an initial decline and subsequent recovery. After decreasing from 3,063,117 thousand USD in 2019 to a low of 2,619,319 thousand USD in 2022, total revenue reached a five-year peak of 3,318,602 thousand USD by the end of 2023. This overall growth is primarily attributed to a fundamental shift in the revenue mix, transitioning from a diversified portfolio of services and systems toward a concentrated focus on product sales.

Solar Module Revenue Growth: A consistent and significant upward trend is observed in solar module sales. Revenue in this segment grew from 1,460,116 thousand USD in 2019 to 3,296,809 thousand USD in 2023. By the final year of the analysis, solar modules became the primary driver of total net sales, accounting for nearly the entirety of the company's revenue stream.
Decline in Solar Power Systems: A sharp contraction occurred in the solar power systems segment. Revenue fell from 1,148,856 thousand USD in 2019 to just 19,951 thousand USD in 2023. This represents a near-total phase-out of this revenue stream over the five-year period.
Erosion of Service-Based Revenue: Revenue from O&M services and energy generation showed a steady decline. O&M services dropped from 107,705 thousand USD in 2019 to 1,861 thousand USD in 2023, while energy generation decreased from 54,539 thousand USD in 2019 to a marginal negative value of -19 thousand USD in 2023.
Discontinuation of EPC Services: EPC services experienced a rapid collapse in value, plummeting from 291,901 thousand USD in 2019 to -2,039 thousand USD in 2021, with no reported figures for the subsequent two years, indicating the cessation of this business activity.

The data indicates a strategic pivot in the business model. The company has transitioned from an integrated provider of solar systems, engineering, procurement, and construction (EPC), and ongoing maintenance, to a specialized manufacturer focused almost exclusively on the production and sale of solar modules.

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