Reiterating 2024 financial guidance
Bloom Energy Corporation (NYSE: BE) reported today its financial
results for the second quarter ended June 30, 2024. The company
reported revenue of $335.8 million for the second quarter of
2024.
Second Quarter Highlights
- Revenue of $335.8 million in the second quarter of 2024, an
increase of 11.5% year-over-year.
- Gross margin of 20.4% in the second quarter of 2024, an
increase of 1.7 percentage points year-over-year; Non-GAAP gross
margin of 21.8% in the second quarter of 2024, an increase of 1.4
percentage points year-over-year.
- Operating loss of $23.1 million in the second quarter of 2024,
an improvement of $31.3 million year-over-year; Non-GAAP operating
loss of $3.2 million in the second quarter of 2024, an improvement
of $22.7 million year-over-year.
- Strengthened our balance sheet through the issuance of 3%
convertible green notes.
- Announced agreement with CoreWeave, a leader in AI, to power
the high-performance data center owned by Chirisa Technology Parks
located in Volo, Illinois.
- Silicon Valley Power received municipal approval to enter into
an agreement using Bloom fuel cells to power 20-megawatts of AWS
data centers in Santa Clara, CA.
KR Sridhar, CEO of Bloom Energy, said, “It is now widely
understood that demand for electricity is expected to far exceed
available supply through the grid. It is presenting Bloom with a
huge opportunity. We are seeing high levels of commercial interest
in our products and solutions. We continue to execute well, advance
our technology and build out our team for future growth.”
Dan Berenbaum, CFO of Bloom Energy, added, “We delivered record
revenue and non-GAAP profitability for a second quarter and
strengthened our balance sheet through the issuance of our 3%
convertible green notes. We are confident in our commercial
pipeline, and we are reaffirming our prior 2024 financial
guidance.”
Summary of Key Financial Metrics
Summary of GAAP Profit and Loss
Statements
($000), except EPS data
Q2’24
Q1’24
Q2’23
Revenue
335,767
235,298
301,095
Cost of Revenue
267,245
197,222
244,745
Gross Profit
68,522
38,076
56,350
Gross Margin
20.4
%
16.2
%
18.7
%
Operating Expenses
91,650
87,093
110,806
Operating Loss
(23,128
)
(49,017
)
(54,456
)
Operating Margin
(6.9
)%
(20.8
)%
(18.1
)%
Non-operating Expenses
38,659
8,507
11,607
Net Loss to Common Stockholders
(61,787
)
(57,524
)
(66,061
)
GAAP EPS, Basic and Diluted
$
(0.27
)
$
(0.25
)
$
(0.32
)
Summary of Non-GAAP Financial
Information1
($000), except EPS data
Q2’24
Q1’24
Q2’23
Revenue
335,767
235,298
301,095
Cost of Revenue
262,611
194,071
239,678
Gross Profit
73,156
41,226
61,418
Gross Margin
21.8
%
17.5
%
20.4
%
Operating Expenses
76,344
71,962
87,357
Operating Loss
(3,188
)
(30,736
)
(25,939
)
Operating Margin
(0.9
)%
(13.1
)%
(8.6
)%
Adjusted EBITDA
10,219
(18,218
)
(8,421
)
Non-GAAP EPS, Basic and Diluted
$
(0.06
)
$
(0.17
)
$
(0.17
)
(1)
A detailed reconciliation of GAAP to
Non-GAAP financial measures is provided at the end of this press
release
Outlook
Bloom reaffirms outlook for the full-year 2024:
•
Revenue:
$1.4 - $1.6B
•
Non-GAAP Gross
Margin:
~28%
•
Non-GAAP Operating
Income:
$75 - $100M
Conference Call Details
Bloom will host a conference call today, August 8, 2024, at 2:00
p.m. Pacific Time (5:00 p.m. Eastern Time) to discuss its financial
results. To participate in the live call, analysts and investors
may call toll-free dial-in number: +1 (888) 596-4144 and
toll-dial-in-number +1 (646) 968-2525. The conference ID is
9501971. A simultaneous live webcast will also be available under
the Investor Relations section on our website at
https://investor.bloomenergy.com/. Following the webcast, an
archived version will be available on Bloom's website for one year.
A telephonic replay of the conference call will be available for
one week following the call, by dialing +1 (800) 770-2030 and
entering passcode 9501971
Use of Non-GAAP Financial Measures
This press release includes certain non-GAAP financial measures
as defined by the rules and regulations of the Securities and
Exchange Commission (SEC). These non-GAAP financial measures are in
addition to, and not a substitute for or superior to, measures of
financial performance prepared in accordance with U.S. GAAP. There
are a number of limitations related to the use of these non-GAAP
financial measures versus their nearest GAAP equivalents. For
example, other companies may calculate non-GAAP financial measures
differently or may use other measures to evaluate their
performance, all of which could reduce the usefulness of our
non-GAAP financial measures as tools for comparison. Bloom urges
you to review the reconciliations of its non-GAAP financial
measures to the most directly comparable U.S. GAAP financial
measures set forth in this press release, and not to rely on any
single financial measure to evaluate our business. With respect to
Bloom’s expectations regarding its 2024 Outlook, Bloom is not able
to provide a quantitative reconciliation of non-GAAP gross margin
and non-GAAP operating income measures to the corresponding GAAP
measures without unreasonable efforts due to the uncertainty
regarding, and the potential variability of, reconciling items such
as stock-based compensation expense. Material changes to
reconciling items could have a significant effect on future GAAP
results and, as such, we believe that any reconciliation provided
would imply a degree of precision that could be confusing or
misleading to investors.
About Bloom Energy
Bloom Energy empowers businesses and communities to responsibly
take charge of their energy. The company’s leading solid oxide
platform for distributed generation of electricity and hydrogen is
changing the future of energy. Fortune 100 companies turn to Bloom
Energy as a trusted partner to deliver lower carbon energy today
and a net-zero future. For more information, visit
www.bloomenergy.com.
Forward-Looking Statements
This press release contains certain forward-looking statements,
which are subject to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements generally relate to future events or our future
financial or operating performance. In some cases, you can identify
forward-looking statements because they contain words such as
“anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,”
“may,” “should,” “will” and “would” or the negative of these words
or similar terms or expressions that concern Bloom’s expectations,
strategy, priorities, plans or intentions. These forward-looking
statements include, but are not limited to, Bloom’s expectations
regarding: innovation and solutions; customer reaction to Bloom’s
products; Bloom’s liquidity position; market demand for energy
solutions; and Bloom’s 2024 outlook for revenue and profitability.
Readers are cautioned that these forward-looking statements are
only predictions and may differ materially from actual future
events or results due to a variety of factors including, but not
limited to: Bloom’s limited operating history; the emerging nature
of the distributed generation market and rapidly evolving market
trends; the significant losses Bloom has incurred in the past; the
significant upfront costs of Bloom’s Energy Servers and Bloom’s
ability to secure financing for its products; Bloom’s ability to
drive cost reductions and to successfully mitigate against
potential price increases; Bloom’s ability to service its existing
debt obligations; Bloom’s ability to be successful in new markets;
government incentive programs including the scheduled expiration of
the Investment Tax Credit at the end of 2024; the ability of the
Bloom Energy Server to operate on the fuel source a customer will
want; the success of the strategic partnership with SK ecoplant in
the United States and international markets; timing and development
of an ecosystem for the hydrogen market, including in the South
Korean market; continued incentives in the South Korean market;
adapting to the new government bidding process in the South Korean
market; the timing and pace of adoption of hydrogen for stationary
power; the risk of manufacturing defects; the accuracy of Bloom’s
estimates regarding the useful life of its Energy Servers; delays
in the development and introduction of new products or updates to
existing products; supply constraints; the availability of rebates,
tax credits and other tax benefits; changes in the regulatory
landscape; Bloom’s reliance upon a limited number of customers;
Bloom’s lengthy sales and installation cycle, construction, utility
interconnection and other delays and cost overruns related to the
installation of its Energy Servers, including inventories with
distributors; business and economic conditions and growth trends in
commercial and industrial energy markets; global macroeconomic
conditions, including rising interest rates, recession fears and
inflationary pressures, or geopolitical events or conflicts;
overall electricity generation market; management transitions;
Bloom’s ability to protect its intellectual property; and other
risks and uncertainties detailed in Bloom’s SEC filings from time
to time. More information on potential factors that may impact
Bloom’s business are set forth in Bloom’s periodic reports filed
with the SEC, including our Annual Report on Form 10-K for the year
ended December 31, 2023 and Quarterly Report on Form 10-Q for the
quarter ended March 31, 2024, as filed with the SEC on February 15,
2024 and May 9, 2024, respectively, as well as subsequent reports
filed with or furnished to the SEC from time to time. These reports
are available on Bloom’s website at www.bloomenergy.com and the
SEC’s website at www.sec.gov. Bloom assumes no obligation to, and
does not currently intend to, update any such forward-looking
statements.
The Investor Relations section of Bloom’s website at
investor.bloomenergy.com contains a significant amount of
information about Bloom Energy, including financial and other
information for investors. Bloom encourages investors to visit this
website from time to time, as information is updated and new
information is posted.
Condensed Consolidated Balance
Sheets (unaudited) (in thousands, except share data)
June 30,
December 31,
2024
2023
Assets
Current assets:
Cash and cash equivalents1
$
581,684
$
664,593
Restricted cash1
25,167
46,821
Accounts receivable less allowance for
credit losses of $119 as of June 30, 2024 and December 31, 20231,
2
524,000
340,740
Contract assets3
90,388
41,366
Inventories1
520,216
502,515
Deferred cost of revenue4
48,457
45,984
Prepaid expenses and other current
assets1, 5
40,102
51,148
Total current assets
1,830,014
1,693,167
Property, plant and equipment, net1
494,377
493,352
Operating lease right-of-use assets1,
6
134,972
139,732
Restricted cash1
30,953
33,764
Deferred cost of revenue
3,565
3,454
Other long-term assets1, 7
54,163
50,208
Total assets
$
2,548,044
$
2,413,677
Liabilities and stockholders’
equity
Current liabilities:
Accounts payable1, 8
$
104,201
$
132,078
Accrued warranty
12,388
19,326
Accrued expenses and other current
liabilities1, 9
116,399
130,879
Deferred revenue and customer deposits1,
10
112,032
128,922
Operating lease liabilities1, 11
20,123
20,245
Financing obligations
28,332
38,972
Total current liabilities
393,475
470,422
Deferred revenue and customer deposits1,
12
28,589
19,140
Operating lease liabilities1, 13
137,209
141,939
Financing obligations
408,384
405,824
Recourse debt
1,121,011
842,006
Non-recourse debt1, 14
4,347
4,627
Other long-term liabilities
8,479
9,049
Total liabilities
$
2,101,494
$
1,893,007
Commitments and contingencies
Stockholders’ equity:
Common stock: $0.0001 par value; Class A
shares — 600,000,000 shares authorized and 227,556,594 shares and
224,717,533 shares issued and outstanding, and Class B shares —
470,092,742 shares and 600,000,000 shares authorized and no shares
issued and outstanding at June 30, 2024 and December 31, 2023,
respectively
23
21
Additional paid-in capital
4,413,233
4,370,343
Accumulated other comprehensive loss
(2,301
)
(1,687
)
Accumulated deficit
(3,987,702
)
(3,866,599
)
Total equity attributable to common
stockholders
423,253
502,078
Noncontrolling interest
23,297
18,592
Total stockholders’ equity
$
446,550
$
520,670
Total liabilities and stockholders’
equity
$
2,548,044
$
2,413,677
1
We have a variable interest entity related
to a joint venture in the Republic of Korea, which represents a
portion of the consolidated balances recorded within these
financial statement line items.
2
Including amounts from related parties of
$348.2 million and $262.0 million as of June 30, 2024 and
December 31, 2023, respectively.
3
Including amounts from related parties of
$0.9 million and $6.9 million as of June 30, 2024 and
December 31, 2023, respectively.
4
Including amounts from related parties of
$0.9 million as of December 31, 2023. There were no amounts
from related parties as of June 30, 2024.
5
Including amounts from related parties of
$1.3 million and $2.3 million as of June 30, 2024 and
December 31, 2023, respectively.
6
Including amounts from related parties of
$1.7 million and $2.0 million as of June 30, 2024 and
December 31, 2023, respectively.
7
Including amounts from related parties of
$9.5 million and $9.1 million as of June 30, 2024 and
December 31, 2023, respectively.
8
Including amounts from related parties of
$0.1 million as of December 31, 2023. There were no amounts
from related parties as of June 30, 2024.
9
Including amounts from related parties of
$5.8 million and $3.4 million as of June 30, 2024 and
December 31, 2023, respectively.
10
Including amounts from related parties of
$8.6 million and $1.7 million as of June 30, 2024 and
December 31, 2023, respectively.
11
Including amounts from related parties of
$0.4 million and $0.4 million as of June 30, 2024 and
December 31, 2023, respectively.
12
Including amounts from related parties of
$4.3 million and $6.7 million as of June 30, 2024 and
December 31, 2023, respectively.
13
Including amounts from related parties of
$1.3 million and $1.6 million as of June 30, 2024 and
December 31, 2023, respectively.
14
Including amounts from related parties of
$4.3 million and $4.6 million as of June 30, 2024 and
December 31, 2023, respectively.
Condensed Consolidated
Statements of Operations (unaudited)| (in thousands, except per
share data)
Three Months Ended June 30,
2024
Three Months Ended March 31,
2024
Three Months Ended June 30,
2023
Revenue:
Product
$
226,308
$
153,364
$
214,706
Installation
42,733
11,444
24,321
Service
52,531
56,460
42,298
Electricity
14,195
14,030
19,770
Total revenue1
335,767
235,298
301,095
Cost of revenue:
Product
161,332
115,757
145,146
Installation
44,298
15,353
26,879
Service
52,401
56,506
57,263
Electricity
9,214
9,606
15,457
Total cost of revenue
267,245
197,222
244,745
Gross profit
68,522
38,076
56,350
Operating expenses:
Research and development
37,364
35,485
41,493
Sales and marketing
17,901
13,599
26,822
General and administrative2
36,385
38,009
42,491
Total operating expenses
91,650
87,093
110,806
Loss from operations
(23,128
)
(49,017
)
(54,456
)
Interest income
6,430
7,531
4,357
Interest expense3
(15,376
)
(14,546
)
(13,953
)
Other expense, net4
(985
)
(1,170
)
(740
)
Loss on extinguishment of debt
(27,182
)
—
(2,873
)
(Loss) gain on revaluation of embedded
derivatives
(88
)
158
(1,216
)
Loss before income taxes
(60,329
)
(57,044
)
(68,881
)
Income tax provision (benefit)
856
(501
)
178
Net loss
(61,185
)
(56,543
)
(69,059
)
Less: Net income (loss) attributable to
noncontrolling interest
602
981
(2,998
)
Net loss attributable to common
stockholders
$
(61,787
)
$
(57,524
)
$
(66,061
)
Net loss per share available to common
stockholders, basic and diluted
$
(0.27
)
$
(0.25
)
$
(0.32
)
Weighted average shares used to compute
net loss per share available to common stockholders, basic and
diluted
227,167
225,587
208,692
1
Including related party revenue of
$86.8 million, $122.2 million and $4.6 million for
the three months ended June 30, 2024, March 31, 2024, and June 30,
2023, respectively.
2
Including related party general and
administrative expenses of $0.2 million and $0.2 million
for the three months ended June 30, 2024, and March 31, 2024,
respectively. There were no related party general and
administrative expenses for the three months ended June 30,
2023.
3
Including related party interest expense
of $0.1 million and $0.1 million for the three months
ended June 30, 2024, and March 31, 2024, respectively. There were
no related party general and administrative expenses for the three
months ended June 30, 2023.
4
Including related party other expense, net
of $0.4 million and $0.5 million for the three months
ended June 30, 2024, and March 31, 2024, respectively. There were
no related party general and administrative expenses for the three
months ended June 30, 2023.
Condensed Consolidated
Statement of Cash Flows (unaudited) (in thousands)
Three Months Ended June 30,
2024
Three Months Ended March 31,
2024
Three Months Ended June 30,
2023
Cash flows from operating
activities:
Net loss
$
(61,185
)
$
(56,543
)
$
(69,059
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
13,407
12,518
17,518
Non-cash lease expense
8,980
8,951
8,250
(Gain) loss on disposal of property, plant
and equipment
(13
)
(2
)
5
Revaluation of derivative contracts
88
(158
)
1,216
Stock-based compensation expense
19,191
18,136
28,102
Amortization of debt issuance costs
1,603
1,471
1,121
Loss on extinguishment of debt
27,182
—
2,873
Unrealized foreign currency exchange
loss
418
1,136
1,484
Other
(50
)
(50
)
—
Changes in operating assets and
liabilities:
Accounts receivable1
(175,657
)
(7,615
)
(21,079
)
Contract assets2
(56,599
)
7,578
12,595
Inventories
5,862
(24,965
)
(69,680
)
Deferred cost of revenue3
7,592
(10,183
)
(13,337
)
Prepaid expenses and other assets4
7,537
3,509
6,485
Other long-term assets5
(1,800
)
(2,155
)
3,543
Operating lease right-of-use assets and
operating lease liabilities
(9,216
)
(8,807
)
(7,940
)
Financing lease liabilities
223
97
492
Accounts payable6
8,206
(33,455
)
62,729
Accrued warranty
3,191
(10,129
)
5,450
Accrued expenses and other
liabilities7
19,789
(32,996
)
(3,442
)
Deferred revenue and customer
deposits8
6,013
(13,454
)
(13,658
)
Other long-term liabilities
(257
)
(150
)
(153
)
Net cash used in operating activities
(175,495
)
(147,266
)
(46,485
)
Cash flows from investing
activities:
Purchase of property, plant and
equipment
(12,019
)
(21,435
)
(19,576
)
Proceeds from sale of property, plant and
equipment
15
7
25
Net cash used in investing activities
(12,004
)
(21,428
)
(19,551
)
Cash flows from financing
activities:
Proceeds from issuance of debt9
402,500
—
634,018
Payment of debt issuance costs
(12,323
)
—
(15,828
)
Repayment of debt
(140,990
)
—
(62,960
)
Proceeds from financing obligations
—
1,334
1,539
Repayment of financing obligations
(5,041
)
(4,958
)
(4,462
)
Proceeds from issuance of common stock
159
6,816
733
Proceeds from issuance of redeemable
convertible preferred stock
—
—
310,957
Contributions from noncontrolling
interest
—
3,958
6,979
Dividend paid
(1,468
)
—
—
Purchase of capped calls
—
—
(54,522
)
Other
—
—
(158
)
Net cash provided by financing
activities
242,837
7,150
816,296
Effect of exchange rate changes on cash,
cash equivalent and restricted cash
(256
)
(912
)
(204
)
Net increase (decrease) in cash, cash
equivalents, and restricted cash
55,082
(162,456
)
750,056
Cash, cash equivalents, and restricted
cash:
Beginning of period
582,722
745,178
172,488
End of period
$
637,804
$
582,722
$
922,544
1
Including changes in related party
balances of $55.8 million, $30.3 million and
$2.6 million for the three months ended June 30, 2024, March
31, 2024, and June 30, 2023, respectively.
2
Including changes in related party
balances of $2.7 million and $3.3 million for the three
months ended June 30, 2024 and March 31, 2024, respectively. There
were no changes in related party balances for the three months
ended June 30, 2023.
3
Including changes in related party
balances of $0.9 million for the three months ended
March 31, 2024. There were no changes in related party balances for
the three months ended June 30, 2024, and June 30, 2023.
4
Including changes in related party
balances of $0.9 million and $0.1 million for the three
months ended June 30, 2024 and March 31, 2024, respectively. There
were no changes in related party balances for the three months
ended June 30, 2023.
5
Including changes in related party
balances of $0.4 million and $0.8 million for the three
months ended June 30, 2024 and March 31, 2024, respectively. There
were no changes in related party balances for the three months
ended June 30, 2023.
6
Including changes in related party
balances of $0.1 million for the three months ended
March 31, 2024. There were no changes in related party balances for
the three months ended June 30, 2024, and June 30, 2023.
7
Including changes in related party
balances of $0.3 million and $2.7 million for the three
months ended June 30, 2024 and March 31, 2024, respectively. There
were no changes in related party balances for the three months
ended June 30, 2023.
8
Including changes in related party
balances of $3.6 million and $0.8 million for the three
months ended June 30, 2024 and March 31, 2024, respectively. There
were no changes in related party balances for the three months
ended June 30, 2023.
9
Including changes in related party
balances of $0.1 million and $0.2 million for the three
months ended June 30, 2024 and March 31, 2024, respectively. There
were no changes in related party balances for the three months
ended June 30, 2023.
Reconciliation of GAAP to
Non-GAAP Financial Measures (unaudited) (in thousands, except
percentages)
Q2’24
Q1’24
Q2’23
GAAP revenue
335,767
235,298
301,095
GAAP cost of sales
267,245
197,222
244,745
GAAP gross profit
68,522
38,076
56,350
Non-GAAP adjustments:
Stock-based compensation expense
4,110
3,814
5,067
Restructuring
116
(663
)
—
Other
408
—
—
Non-GAAP gross profit
73,156
41,226
61,417
GAAP gross margin %
20.4
%
16.2
%
18.7
%
Non-GAAP adjustments
1.4
%
1.3
%
1.7
%
Non-GAAP gross margin %
21.8
%
17.5
%
20.4
%
Q2’24
Q1’24
Q2’23
GAAP loss from operations
(23,128
)
(49,017
)
(54,456
)
Non-GAAP adjustments:
Stock-based compensation expense
19,423
18,860
28,479
Restructuring
73
(616
)
—
Other
445
37
37
Non-GAAP loss from operations
(3,188
)
(30,736
)
(25,940
)
GAAP operating margin %
(6.9
)%
(20.8
)%
(18.1
)%
Non-GAAP adjustments
5.9
%
7.8
%
9.5
%
Non-GAAP operating margin %
(0.9
)%
(13.1
)%
(8.6
)%
Reconciliation of GAAP Net
Loss to non-GAAP Net Loss and Computation of non-GAAP Net Loss per
Share (EPS) (unaudited) (in thousands, except share data)
Q2’24
Q1’24
Q2’23
Net loss to Common Stockholders
(61,787
)
(57,524
)
(66,061
)
Non-GAAP adjustments:
Add back: gain (loss) for non-controlling
interests
602
981
(2,998
)
Loss (gain) on derivative liabilities
88
(158
)
1,216
Loss on extinguishment of debt
27,182
—
2,873
Stock-based compensation expense
19,423
18,860
28,479
Restructuring
73
(616
)
—
Other
445
25
37
Adjusted Net Loss
(13,974
)
(38,432
)
(36,454
)
Adjusted net loss per share (EPS),
Basic and Diluted
$
(0.06
)
$
(0.17
)
$
(0.17
)
Weighted average shares outstanding
attributable to common stockholders, Basic and Diluted
227,167
225,587
208,692
Reconciliation of GAAP Net
Loss to Adjusted EBITDA (unaudited) (in thousands)
Q2’24
Q1’24
Q2’23
Net loss to Common Stockholders
(61,787
)
(57,524
)
(66,061
)
Add back: gain (loss) for non-controlling
interests
602
981
(2,998
)
Loss (gain) on derivative liabilities
88
(158
)
1,216
Loss on extinguishment of debt
27,182
—
2,873
Stock-based compensation expense
19,423
18,860
28,479
Restructuring
73
(616
)
—
Other
445
25
37
Adjusted Net Loss
(13,974
)
(38,432
)
(36,454
)
Depreciation & amortization
13,407
12,518
17,519
Income tax provision (benefit)
856
(501
)
178
Interest expense, Other expense, net
9,930
8,197
10,336
Adjusted EBITDA
10,219
(18,218
)
(8,421
)
Use of non-GAAP financial measures
To supplement Bloom Energy consolidated financial statement
information presented on a GAAP basis, Bloom Energy provides
financial measures including non-GAAP gross profit, non-GAAP gross
margin, non-GAAP operating loss, non-GAAP operating loss margin,
non-GAAP net loss, non-GAAP basic and diluted loss per share and
Adjusted EBITDA. Bloom Energy also provides forecasts of non-GAAP
gross margin and non-GAAP operating profit (loss).
These non-GAAP financial measures are not computed in accordance
with, or as an alternative to, GAAP in the United States.
- The GAAP measure most directly comparable to non-GAAP gross
profit is gross profit.
- The GAAP measure most directly comparable to non-GAAP gross
margin is gross margin.
- The GAAP measure most directly comparable to non-GAAP operating
loss is operating loss.
- The GAAP measure most directly comparable to non-GAAP operating
margin is operating margin.
- The GAAP measure most directly comparable to non-GAAP net loss
is net loss.
- The GAAP measure most directly comparable to non-GAAP diluted
loss per share is diluted loss per share.
- The GAAP measure most directly comparable to Adjusted EBITDA is
net loss.
Reconciliations of each of these non-GAAP financial measures to
GAAP information are included in the tables above or elsewhere in
the materials accompanying this news release.
Use and economic substance of non-GAAP financial measures
used by Bloom Energy
Non-GAAP gross profit and non-GAAP gross margin are defined to
exclude charges relating to stock-based compensation expense,
restructuring (expense reversals) charges, and other charges.
Non-GAAP net loss and non-GAAP diluted loss per share consist of
net loss or diluted net loss per share excluding charges relating
to stock-based compensation expense, gain (loss) for
non-controlling interest, loss (gain) on derivatives liabilities,
restructuring (expense reversals) charges, loss on extinguishment
of debt, and other charges. Adjusted EBITDA is defined as net loss
before interest expense, income tax provision (benefit),
depreciation and amortization expense, charges relating to
stock-based compensation expense, gain (loss) for non-controlling
interest, loss (gain) on derivatives liabilities, restructuring
(expense reversals) charges, loss on extinguishment of debt, and
other charges. Bloom Energy management uses these non-GAAP
financial measures for purposes of evaluating Bloom Energy’s
historical and prospective financial performance, as well as Bloom
Energy’s performance relative to its competitors. Bloom Energy
believes that excluding the items mentioned above from these
non-GAAP financial measures allows Bloom Energy management to
better understand Bloom Energy’s consolidated financial performance
as management does not believe that the excluded items are
reflective of ongoing operating results. More specifically, Bloom
Energy management excludes each of those items mentioned above for
the following reasons:
- Stock-based compensation expense consists of equity awards
granted based on the estimated fair value of those awards at grant
date. Although stock-based compensation is a key incentive offered
to our employees, Bloom Energy excludes these charges for the
purpose of calculating these non-GAAP measures, primarily because
they are non-cash expenses and such an exclusion facilitates a more
meaningful evaluation of Bloom Energy current operating performance
and comparisons to Bloom Energy operating performance in other
periods.
- Gain (loss) for non-controlling interest represents allocation
to the non-controlling interests under the hypothetical liquidation
at book value (HLBV) method and are associated with our Bloom
Energy legacy PPA entities and the joint venture in the Republic of
Korea.
- Loss (gain) on derivatives liabilities represents non-cash
adjustments to the fair value of the embedded derivatives.
- Loss on debt extinguishment for the three months ended June 30,
2024, related to the partial repurchase of the 2.5% Green
Convertible Senior Notes due August 2025 and comprised of 22.6%
premium upon partial repurchase of $26.0 million and $1.2 million
of debt issuance cost write-off.Loss on debt extinguishment for the
three months ended June 30, 2023, related to the redemption on July
1, 2023 of 10.25% senior secured notes due March 2027 and comprised
of 4% premium upon redemption of $2.3 million and $0.6 million of
debt issuance cost write-off.
- Restructuring charges and reversals, if any, are represented by
severance expense, facility closure costs, and others.
- Other represents site termination costs of $0.4 million for the
three months ended June 30, 2024, immaterial amounts of quarterly
amortization of acquired intangible assets, PPA sales property tax,
and other gain from termination of a managed service
agreement.
- Adjusted EBITDA is defined as Adjusted Net Loss before
depreciation and amortization expense, provision for income tax,
interest expense, other expense, net. We use Adjusted EBITDA to
measure the operating performance of our business, excluding
specifically identified items that we do not believe directly
reflect our core operations and may not be indicative of our
recurring operations.
For more information about these non-GAAP financial measures,
please see the tables captioned “Reconciliation of GAAP to Non-GAAP
Financial Measures,” “Reconciliation of GAAP Loss to non-GAAP Net
Loss and Computation of non-GAAP Net Loss per Share (EPS),” and
“Reconciliation of GAAP Net Loss to Adjusted EBITDA” set forth in
this release, which should be read together with the preceding
financial statements prepared in accordance with GAAP.
Material limitations associated with use of non-GAAP
financial measures
These non-GAAP financial measures have limitations as analytical
tools, and these measures should not be considered in isolation or
as a substitute for analysis of Bloom Energy results as reported
under GAAP. Some of the limitations in relying on these non-GAAP
financial measures are:
- Items such as stock-based compensation expense that is excluded
from non-GAAP gross profit, non-GAAP gross margin, non-GAAP
operating expenses, non-GAAP operating loss, non-GAAP operating
margin, non-GAAP net loss, and non-GAAP diluted loss per share can
have a material impact on the equivalent GAAP earnings
measure.
- Gain (loss) for non-controlling interest and loss (gain) on
derivatives liabilities, though not directly affecting Bloom
Energy’s cash position, represent the loss (gain) in value of
certain assets and liabilities. The expense associated with this
loss (gain) in value is excluded from non-GAAP net loss, and
non-GAAP diluted loss per share and can have a material impact on
the equivalent GAAP earnings measure.
- Other companies may calculate non-GAAP gross profit (loss),
non-GAAP gross margin, non-GAAP operating profit (loss) (non-GAAP
earnings from operations), non-GAAP operating margin, non-GAAP net
earnings (loss), non-GAAP diluted earnings (loss) per share and
Adjusted EBITDA differently than Bloom Energy does, limiting the
usefulness of those measures for comparative purposes.
Compensation for limitations associated with use of non-GAAP
financial measures
Bloom Energy compensates for the limitations on its use of
non-GAAP financial measures by relying primarily on its GAAP
results and using non-GAAP financial measures only as a supplement.
Bloom Energy also provides a reconciliation of each non-GAAP
financial measure to its most directly comparable GAAP measure
within this news release and in other written materials that
include these non-GAAP financial measures, and Bloom Energy
encourages investors to review those reconciliations carefully.
Usefulness of non-GAAP financial measures to
investors
Bloom Energy believes that providing financial measures
including non-GAAP gross profit, non-GAAP gross margin, non-GAAP
operating loss, non-GAAP operating margin, non-GAAP net loss,
non-GAAP diluted loss per share in addition to the related GAAP
measures provides investors with greater transparency to the
information used by Bloom Energy management in its financial and
operational decision making and allows investors to see Bloom
Energy’s results “through the eyes” of management. Bloom Energy
further believes that providing this information better enables
Bloom Energy investors to understand Bloom Energy’s operating
performance and to evaluate the efficacy of the methodology and
information used by Bloom Energy management to evaluate and measure
such performance. Disclosure of these non-GAAP financial measures
also facilitates comparisons of Bloom Energy’s operating
performance with the performance of other companies in Bloom
Energy’s industry that supplement their GAAP results with non-GAAP
financial measures that may be calculated in a similar manner.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240808758547/en/
Investor Relations: Michael Tierney Bloom Energy
investor@bloomenergy.com
Media: Bloom Energy press@bloomenergy.com
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