Reiterating 2024 Financial Guidance
Announcing World’s Largest Fuel Cell
Installation
Bloom Energy Corporation (NYSE: BE) reported today its financial
results for the third quarter ended September 30, 2024. The company
reported revenue of $330.4 million for the third quarter of
2024.
Third Quarter Highlights
- Revenue of $330.4 million in the third quarter of 2024, a
decrease of 17.5% year-over-year.
- Gross margin of 23.8% in the third quarter of 2024, an increase
of 25.1 percentage points year-over-year; Non-GAAP gross margin of
25.2% in the third quarter of 2024, a decrease of 6.4 percentage
points year-over-year.
- Operating loss of $9.7 million in the third quarter of 2024, an
improvement of $94.1 million year-over-year; Non-GAAP operating
profit of $8.1 million in the third quarter of 2024, a decrease of
$43.7 million year-over-year.
- Announced what is expected to be the world’s largest single
site fuel cell installation, supporting partner SK Eternix, to
begin commercial operations in 2025.
- Announced follow on orders from Quanta, expected to create the
world’s largest fuel cell islanded microgrid site.
“Today we are announcing an 80 MW power project using Bloom
Energy fuel cells” said KR Sridhar, Founder, Chairman and CEO of
Bloom Energy. “We are thrilled to partner with SK Eternix to
deliver the world’s largest fuel cell power system and make it
operational in 2025. A fuel cell project of this scale is a proof
point for how Bloom Energy can power large AI data centers going
forward.”
Dan Berenbaum, CFO of Bloom Energy added, “Bloom is a
project-based business, which can lead to quarterly variability -
our year-to-date results and our expectations for a strong close to
2024 reflect this. We are confident in our ability to execute based
on our identified projects and contracting activities, and we are
thus reaffirming our 2024 financial guidance.”
Summary of Key Financial Metrics
Summary of GAAP Profit and Loss Statements
($000), except EPS data
Q3’24
Q2’24
Q3’23
Revenue
330,399
335,767
400,268
Cost of Revenue
251,665
267,245
405,482
Gross Profit (Loss)
78,734
68,522
(5,214
)
Gross Margin
23.8
%
20.4
%
(1.3
)%
Operating Expenses
88,385
91,650
98,494
Operating Loss
(9,651
)
(23,128
)
(103,708
)
Operating Margin
(2.9
)%
(6.9
)%
(25.9
)%
Non-operating Expenses
5,060
38,659
65,291
Net Loss to Common Stockholders
(14,711
)
(61,787
)
(168,999
)
GAAP EPS, Basic and Diluted
$
(0.06
)
$
(0.27
)
$
(0.80
)
Summary of Non-GAAP Financial Information1
($000), except EPS data
Q3’24
Q2’24
Q3’23
Revenue
330,399
335,767
400,268
Cost of Revenue
247,066
262,611
273,888
Gross Profit
83,332
73,156
126,380
Gross Margin
25.2
%
21.8
%
31.6
%
Operating Expenses
75,229
76,344
74,580
Operating Profit (Loss)
8,104
(3,188
)
51,800
Operating Margin
2.5
%
(0.9
)%
12.9
%
Adjusted EBITDA
21,344
10,219
66,415
Non-GAAP EPS, Basic
$
(0.01
)
$
(0.06
)
$
0.20
Non-GAAP EPS, Diluted
$
(0.01
)
$
(0.06
)
$
0.15
- 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, November 7, 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
5744085. 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 5744085
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 and
hydrogen 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 Electrolyzer 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 as filed with the SEC on February 15, 2024
and our Quarterly Reports on Form 10-Q for the quarter ended March
31, 2024 and June 30, 2024, as filed with the SEC on May 9, 2024
and August 8, 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)
September 30,
December 31,
2024
2023
Assets
Current assets:
Cash and cash equivalents1
$
495,677
$
664,593
Restricted cash1
22,548
46,821
Accounts receivable less allowance for
credit losses of $119 as of September 30, 2024, and December 31,
20231, 2
590,794
340,740
Contract assets3
121,074
41,366
Inventories1
584,484
502,515
Deferred cost of revenue4
40,648
45,984
Prepaid expenses and other current
assets1, 5
47,663
51,148
Total current assets
1,902,888
1,693,167
Property, plant and equipment, net1
484,505
493,352
Operating lease right-of-use assets1,
6
133,143
139,732
Restricted cash1
30,926
33,764
Deferred cost of revenue
3,539
3,454
Other long-term assets1, 7
49,516
50,208
Total assets
$
2,604,517
$
2,413,677
Liabilities and stockholders’
equity
Current liabilities:
Accounts payable1, 8
$
124,272
$
132,078
Accrued warranty9
15,009
19,326
Accrued expenses and other current
liabilities1, 10
130,331
130,879
Deferred revenue and customer deposits1,
11
142,056
128,922
Operating lease liabilities1, 12
20,195
20,245
Financing obligations
20,921
38,972
Recourse debt
114,139
—
Total current liabilities
566,923
470,422
Deferred revenue and customer deposits1,
13
34,796
19,140
Operating lease liabilities1, 14
135,159
141,939
Financing obligations
390,539
405,824
Recourse debt
1,008,734
842,006
Non-recourse debt1, 15
4,563
4,627
Other long-term liabilities
8,811
9,049
Total liabilities
$
2,149,525
$
1,893,007
Commitments and contingencies
Stockholders’ equity:
Common stock: $0.0001 par value; Class A
shares — 600,000,000 shares authorized and 228,509,625 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 September 30, 2024, and December 31,
2023, respectively
23
21
Additional paid-in capital
4,435,152
4,370,343
Accumulated other comprehensive loss
(1,818
)
(1,687
)
Accumulated deficit
(4,002,413
)
(3,866,599
)
Total equity attributable to common
stockholders
430,944
502,078
Noncontrolling interest
24,048
18,592
Total stockholders’ equity
$
454,992
$
520,670
Total liabilities and stockholders’
equity
$
2,604,517
$
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 $349.5 million and $262.0 million as of September 30, 2024, and
December 31, 2023, respectively.
3 Including amounts from related parties
of $0.8 million and $6.9 million as of September 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 September 30, 2024.
5 Including amounts from related parties
of $1.1 million and $2.3 million as of September 30, 2024, and
December 31, 2023, respectively.
6 Including amounts from related parties
of $1.7 million and $2.0 million as of September 30, 2024, and
December 31, 2023, respectively.
7 Including amounts from related parties
of $9.1 million and $9.1 million as of September 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 September 30, 2024.
9 Including amounts from related parties
of $2.8 million and $1.3 million as of September 30, 2024, and
December 31, 2023, respectively.
10 Including amounts from related parties
of $7.6 million and $3.4 million as of September 30, 2024, and
December 31, 2023, respectively.
11 Including amounts from related parties
of $7.1 million and $1.7 million as of September 30, 2024, and
December 31, 2023, respectively.
12 Including amounts from related parties
of $0.5 million and $0.4 million as of September 30, 2024, and
December 31, 2023, respectively.
13 Including amounts from related parties
of $6.3 million and $6.7 million as of September 30, 2024, and
December 31, 2023, respectively.
14 Including amounts from related parties
of $1.2 million and $1.6 million as of September 30, 2024, and
December 31, 2023, respectively.
15 Including amounts from related parties
of $4.6 million and $4.6 million as of September 30, 2024, and
December 31, 2023, respectively.
Condensed Consolidated
Statements of Operations (unaudited)
(in thousands, except per
share data)
Three Months Ended September
30, 2024
Three Months Ended June 30,
2024
Three Months Ended September
30, 2023
Revenue:
Product
$
233,770
$
226,308
$
304,976
Installation
32,052
42,733
21,916
Service
50,761
52,531
47,535
Electricity
13,816
14,195
25,841
Total revenue1
330,399
335,767
400,268
Cost of revenue:
Product
155,124
161,332
182,832
Installation
35,688
44,298
25,902
Service
51,363
52,401
57,370
Electricity
9,490
9,214
139,378
Total cost of revenue2
251,665
267,245
405,482
Gross profit (loss)
78,734
68,522
(5,214
)
Operating expenses:
Research and development
36,315
37,364
35,126
Sales and marketing
14,667
17,901
20,002
General and administrative3
37,403
36,385
43,366
Total operating expenses
88,385
91,650
98,494
Loss from operations
(9,651
)
(23,128
)
(103,708
)
Interest income
6,456
6,430
7,419
Interest expense4
(16,763
)
(15,376
)
(68,037
)
Other income (expense), net
5,821
(985
)
(1,577
)
Loss on extinguishment of debt
—
(27,182
)
(1,415
)
Loss on revaluation of embedded
derivatives
(386
)
(88
)
(114
)
Loss before income taxes
(14,523
)
(60,329
)
(167,432
)
Income tax provision
109
856
646
Net loss
(14,632
)
(61,185
)
(168,078
)
Less: Net income attributable to
noncontrolling interest
79
602
921
Net loss attributable to common
stockholders
$
(14,711
)
$
(61,787
)
$
(168,999
)
Net loss per share available to common
stockholders, basic and diluted
$
(0.06
)
$
(0.27
)
$
(0.80
)
Weighted average shares used to compute
net loss per share available to common stockholders, basic and
diluted
227,957
227,167
210,930
1 Including related party revenue of
$126.6 million, $86.8 million and $125.7 million for the three
months ended September 30, 2024, June 30, 2024, and September 30,
2023, respectively.
2 Including related party cost of revenue
of $0.1 million for the three months ended, June 30, 2024. Related
party cost of revenue for the three months ended September 30,
2024, was immaterial. There were no related party cost of revenue
for the three months ended September 30, 2023.
3 Including related party general and
administrative expenses of $0.2 million and $0.2 million for the
three months ended September 30, 2024, and June 30, 2024,
respectively. There were no related party general and
administrative expenses for the three months ended September 30,
2023.
4 Including related party interest expense
of $0.1 million and $0.1 million for the three months ended
September 30, 2024, and June 30, 2024, respectively. There were no
related party general and administrative expenses for the three
months ended September 30, 2023.
Condensed Consolidated
Statement of Cash Flows (unaudited)
(in thousands)
Three Months Ended September
30, 2024
Three Months Ended June 30,
2024
Three Months Ended September
30, 2023
Cash flows from operating
activities:
Net loss
$
(14,632
)
$
(61,185
)
$
(168,078
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
13,240
13,407
14,615
Non-cash lease expense
9,175
8,980
8,356
Gain on disposal of property, plant and
equipment
(17
)
(13
)
(19
)
Revaluation of derivative contracts
386
88
114
Impairment of assets
—
—
130,111
Derecognition of loan commitment asset
related to SK ecoplant Second Tranche Closing
—
—
52,792
Stock-based compensation expense
17,689
19,191
21,315
Amortization of debt issuance costs
1,862
1,603
1,514
Gain from terminations of failed
sale-and-leaseback transactions
(5,003
)
—
—
Loss on extinguishment of debt
—
27,182
1,415
Unrealized foreign currency exchange
(gain) loss
(1,496
)
418
1,517
Other
105
(50
)
—
Changes in operating assets and
liabilities:
Accounts receivable1
(67,064
)
(175,657
)
16,100
Contract assets2
(30,687
)
(56,599
)
(108,692
)
Inventories
(64,141
)
5,862
(8,969
)
Deferred cost of revenue3
7,796
7,592
(8,370
)
Prepaid expenses and other assets4
(8,716
)
7,537
(22,807
)
Other long-term assets5
4,646
(1,800
)
10,219
Operating lease right-of-use assets and
operating lease liabilities
(9,325
)
(9,216
)
(8,432
)
Financing lease liabilities
173
223
171
Accounts payable
23,882
8,206
(41,589
)
Accrued warranty6
2,621
3,191
1,631
Accrued expenses and other current
liabilities7
13,819
19,789
4,782
Deferred revenue and customer
deposits8
36,231
6,013
(30,275
)
Other long-term liabilities
(13
)
(257
)
(590
)
Net cash used in operating activities
(69,469
)
(175,495
)
(133,169
)
Cash flows from investing
activities:
Purchase of property, plant and
equipment
(14,292
)
(12,019
)
(21,357
)
Proceeds from sale of property, plant and
equipment
14
15
—
Net cash used in investing activities
(14,278
)
(12,004
)
(21,357
)
Cash flows from financing
activities:
Proceeds from issuance of debt9
—
402,500
—
Payment of debt issuance costs
(438
)
(12,323
)
(3,711
)
Repayment of debt
—
(140,990
)
(118,538
)
Proceeds from financing obligations
464
—
—
Repayment of financing obligations
(9,767
)
(5,041
)
(4,747
)
Buyout of noncontrolling interest
—
—
(6,864
)
Distributions and payments to
noncontrolling interest
—
—
(2,265
)
Proceeds from issuance of common stock
4,141
159
6,745
Dividend paid
—
(1,468
)
—
Other
—
—
(285
)
Net cash (used in) provided by financing
activities
(5,600
)
242,837
(129,665
)
Effect of exchange rate changes on cash,
cash equivalent, and restricted cash
694
(256
)
(657
)
Net (decrease) increase in cash, cash
equivalents, and restricted cash
(88,653
)
55,082
(284,848
)
Cash, cash equivalents, and restricted
cash:
Beginning of period
637,804
582,722
922,544
End of period
$
549,151
$
637,804
$
637,696
1 Including changes in related party
balances of $1.4 million, $55.8 million, and $241.9 million for the
three months ended September 30, 2024, June 30, 2024, and September
30, 2023, respectively.
2 Including changes in related party
balances of $0.1 million, $2.7 million, and $3.4 million for the
three months ended September 30, 2024, June 30, 2024, and September
30, 2023, respectively.
3 Including changes in related party
balances of $23.4 million for the three months ended September 30,
2023. There were no changes in related party balances for the three
months ended September 30, 2024, and June 30, 2024.
4 Including changes in related party
balances of $0.2 million and $0.9 million for the three months
ended September 30, 2024, and June 30, 2024, respectively. There
were no changes in related party balances for the three months
ended September 30, 2023.
5 Including changes in related party
balances of $0.4 million and $0.4 million for the three months
ended September 30, 2024, and June 30, 2024, respectively. There
were no changes in related party balances for the three months
ended September 30, 2023.
6 Including changes in related party
balances of $0.2 million, $0.4 million, and $0.1 million for the
three months ended September 30, 2024, June 30, 2024, and September
30, 2023, respectively.
7 Including changes in related party
balances of $1.8 million, $0.3 million, and $5.7 million for the
three months ended September 30, 2024, June 30, 2024, and September
30, 2023, respectively.
8 Including changes in related party
balances of $0.5 million, $3.6 million, and $11.1 million for the
three months ended September 30, 2024, June 30, 2024, and September
30, 2023, respectively.
9 Including changes in related party
balances of $0.2 million and $0.1 million for the three months
ended September 30, 2024, and June 30, 2024, respectively. There
were no changes in related party balances for the three months
ended September 30, 2023.
Reconciliation of GAAP to
Non-GAAP Financial Measures
(unaudited)
(in thousands, except
percentages)
Q3’24
Q2’24
Q3’23
GAAP revenue
330,399
335,767
400,268
GAAP cost of sales
251,665
267,245
405,482
GAAP gross profit (loss)
78,734
68,522
(5,214
)
Non-GAAP adjustments:
Stock-based compensation expense
3,778
4,110
5,581
Restructuring
90
116
725
Impairment of assets
—
—
123,700
Other
731
408
1,588
Non-GAAP gross profit
83,332
73,156
126,380
GAAP gross margin %
23.8
%
20.4
%
(1.3
)%
Non-GAAP adjustments
1.4
%
1.4
%
32.9
%
Non-GAAP gross margin %
25.2
%
21.8
%
31.6
%
Q3’24
Q2’24
Q3’23
GAAP loss from operations
(9,651
)
(23,128
)
(103,708
)
Non-GAAP adjustments:
Stock-based compensation expense
17,057
19,423
21,564
Restructuring
(70
)
73
2,226
Impairment of assets
—
—
130,088
Other
768
445
1,630
Non-GAAP income (loss) from
operations
8,104
(3,188
)
51,800
GAAP operating margin %
(2.9
)%
(6.9
)%
(25.9
)%
Non-GAAP adjustments
5.4
%
5.9
%
38.8
%
Non-GAAP operating margin %
2.5
%
(0.9
)%
12.9
%
Reconciliation of GAAP Net
Loss to non-GAAP Net (Loss) Income and Computation of non-GAAP Net
(Loss) Earnings per Share (EPS)
(unaudited)
(in thousands, except share
data)
Q3’24
Q2’24
Q3’23
Net loss to Common Stockholders
(14,711
)
(61,787
)
(168,999
)
Non-GAAP adjustments:
Add back: gain for non-controlling
interests
79
602
921
Stock-based compensation expense
17,057
19,423
21,564
Gain on failed sale-and-leaseback
transactions
(4,991
)
—
—
Loss on derivative liabilities
386
88
114
Impairment of assets
—
—
130,088
Interest expense on SK loan commitment
—
—
52,792
Loss on extinguishment of debt
—
27,182
1,415
Restructuring
(70
)
73
2,226
Other
768
445
1,630
Adjusted Net (Loss) Profit
(1,481
)
(13,974
)
41,751
Adjusted net (loss) earnings per share
(EPS), Basic
$
(0.01
)
$
(0.06
)
$
0.20
Adjusted net (loss) earnings per share
(EPS), Diluted
$
(0.01
)
$
(0.06
)
$
0.15
Weighted average shares outstanding
attributable to common stockholders, Basic
227,957
227,167
210,930
Weighted-average shares outstanding
attributable to common stockholders, Diluted
227,957
227,167
274,337
Reconciliation of GAAP Net
Loss to Adjusted EBITDA
(unaudited)
(in thousands)
Q3’24
Q2’24
Q3’23
Net loss to Common Stockholders
(14,711
)
(61,787
)
(168,999
)
Add back: gain for non-controlling
interests
79
602
921
Stock-based compensation expense
17,057
19,423
21,564
Gain on failed sale-and-leaseback
transactions
(4,991
)
—
—
Loss on derivative liabilities
386
88
114
Impairment of assets
—
—
130,088
Interest expense on SK loan commitment
—
—
52,792
Loss on extinguishment of debt
—
27,182
1,415
Restructuring
(70
)
73
2,226
Other
768
445
1,630
Adjusted Net (Loss) Profit
(1,481
)
(13,974
)
41,751
Depreciation & amortization
13,240
13,407
14,615
Income tax provision
109
856
646
Interest expense, Other income (expense),
net
9,476
9,930
9,403
Adjusted EBITDA
21,344
10,219
66,415
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 (loss), non-GAAP
gross margin, non-GAAP operating income (loss), non-GAAP operating
margin, non-GAAP net (loss) profit, non-GAAP basic and diluted
(loss) earnings per share and Adjusted EBITDA. Bloom Energy also
provides forecasts of non-GAAP gross margin and non-GAAP operating
income.
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 (loss).
- The GAAP measure most directly comparable to non-GAAP gross
margin is gross margin.
- The GAAP measure most directly comparable to non-GAAP operating
income (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) profit is net loss.
- The GAAP measure most directly comparable to non-GAAP diluted
(loss) earnings 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, impairment of assets,
and other charges. Non-GAAP net (loss) profit and non-GAAP diluted
(loss) earnings per share consist of net loss or diluted net loss
per share excluding gain for non-controlling interest, charges
relating to stock-based compensation expense, gain on failed
sale-and-leaseback transactions, loss on derivatives liabilities,
impairment of assets, interest expense on SK loan commitment, loss
on extinguishment of debt, restructuring (expense reversals)
charges, and other charges. Adjusted EBITDA is defined as net loss
before interest expense, income tax provision, depreciation and
amortization expense, gain for non-controlling interest, charges
relating to stock-based compensation expense, gain on failed
sale-and-leaseback transactions, loss on derivatives liabilities,
impairment of assets, interest expense on SK loan commitment, loss
on extinguishment of debt, restructuring (expense reversals)
charges, 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:
- Gain for non-controlling interest represents allocation to the
non-controlling interests under the hypothetical liquidation at
book value (HLBV) method and is associated with Bloom Energy legacy
PPA entity, PPA V, which was sold in the third quarter of fiscal
year 2023, and the joint venture in the Republic of Korea.
- 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 on failed sale-and-leaseback transactions of $5.0 million
as a result of termination of four Managed Services sites.
- Loss on derivatives liabilities represents non-cash adjustments
to the fair value of the embedded derivatives.
- Impairment of assets represents non-cash impairment charge on
decommissioned server units upon repowering of $123.7 million and
non-cash impairment charge on non-recoverable production insurance
of $6.4 million, both as a result of PPA V repowering, which
commenced in the third quarter of fiscal year 2023.
- Interest expense on SK loan commitment recognized as a result
of automatic conversion of 13.5 million shares of our Series B
redeemable convertible preferred stock to shares of our Class A
common stock in the third quarter of fiscal year 2023.
- 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 extinguishment of debt for
the three months ended September 30, 2023, of $1.4 million was
recognized as a result of the repayment on August 24, 2023, of
3.04% Senior Secured Notes due June 2031 as part of the PPA V
repowering, and consists in its entirety of derecognition of debt
issuance costs.
- Restructuring charges and reversals, if any, are represented by
severance expense, facility closure costs, and others.
- Other represents (1) PPA V sales property tax of $1.6 million
related to PPA V repowering of old server units, which commenced in
the third quarter of fiscal year 2023; (2) site termination costs
of $0.4 million and $0.7 million for the three months ended June
30, 2024, and the three months ended September 30, 2024,
respectively; and (3) immaterial amounts of quarterly amortization
of acquired intangible assets.
- Adjusted EBITDA is defined as Adjusted Net (Loss) Profit before
depreciation and amortization expense, provision for income tax
provision, interest expense, other income (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 Net Loss to non-GAAP Net (Loss) Income and
Computation of non-GAAP Net (Loss) Earnings 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 income (loss), non-GAAP
operating margin, non-GAAP net (loss) profit, and non-GAAP diluted
(loss) earnings per share can have a material impact on the
equivalent GAAP earnings measure.
- Gain for non-controlling interest and loss on derivatives
liabilities, though not directly affecting Bloom Energy’s cash
position, represent the gain (loss) in value of certain assets and
liabilities. The expense associated with this gain (loss) in value
is excluded from non-GAAP net (loss) profit, and non-GAAP diluted
(loss) earnings 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 loss (non-GAAP earnings
from operations), non-GAAP operating margin, non-GAAP net profit
(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 income (loss), non-GAAP operating margin, non-GAAP net
(loss) profit, non-GAAP diluted (loss) earnings 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/20241107734576/en/
Investor Relations: Michael Tierney Bloom Energy
investor@bloomenergy.com
Media: Katja Gagen press@bloomenergy.com
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