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Bloom Energy Announces Fourth Quarter 2020 and Full Year 2020 Financial Results

February 10, 2021

Q4 Revenue of $249.4 million; an increase of 16.8% from Q419; 2020 Full Year Revenue of $794.2 million, an increase of 1.1% over 2019

Q4 GAAP Gross Margin of 25.5%; Non-GAAP Gross Margin of 27.0%

Q4 GAAP Operating Margin of (1.8%); Non-GAAP Operating Margin of 4.8%

Q4 GAAP EPS of ($0.16); Adjusted EPS of ($0.08)

SAN JOSE, Calif.--(BUSINESS WIRE)-- Bloom Energy Corporation (NYSE: BE) today announced financial results for its fourth quarter and full year that ended December 31, 2020.

Fourth Quarter Financial Highlights

  • Revenue of $249.4 million in the fourth quarter of 2020, an increase of 16.8% compared to revenue of $213.5 million in the fourth quarter of 2019, primarily driven by a 16.6% increase in acceptances.
  • 450 acceptances, or 45.0 megawatts (MW), a 16.6% increase year-over-year. Recall that an acceptance typically occurs when the system is turned on and producing full power. For orders where one of our partners performs the installation, our acceptance criteria are different. Those acceptances are generally achieved when the systems are shipped or delivered to our partner. Upon acceptance, the customer order is moved from product backlog and is recognized as revenue.
  • Gross margin of 25.5% in the fourth quarter of 2020, an increase of 13.8 percentage points compared to gross margin of 11.7% in the fourth quarter of 2019, primarily driven by an improvement in product gross margin from 10.5% to 38.8% over the same period. This improvement in product gross margins was driven by product cost reductions outpacing ASP reductions.
  • Excluding stock-based compensation, non-GAAP gross margin was 27.0% in the fourth quarter of 2020, an increase of 11.3 percentage points compared to non-GAAP gross margin of 15.7% in the fourth quarter of 2019, primarily driven by an improvement in product gross margin.
  • Operating margin of (1.8%) in the fourth quarter of 2020, an improvement of 20.6 percentage points compared to operating margin of (22.4%) in the fourth quarter of 2019, driven by the improvements in gross margin and a $14.6 million reduction in stock-based compensation expenses burdening operating expenses.
  • Excluding stock-based compensation, non-GAAP operating margin was 4.8% in the fourth quarter of 2020, an improvement of 10.3 percentage points compared to non-GAAP operating margin of (5.5%) in the fourth quarter of 2019, driven by an improvement in gross margin.
  • GAAP EPS of ($0.16) and Adjusted EPS of ($0.08) in the fourth quarter of 2020, compared to GAAP EPS of ($0.58) and Adjusted EPS of ($0.29) in the fourth quarter of 2019.

Full Year 2020 Financial Highlights

  • Revenue of $794.2 million in 2020, an increase of 1.1% compared to revenue of $785.2 million in 2019, primarily driven by an 11.1% increase in acceptances and offset by the favorable impact of the PPA II upgrade on revenue in 2019.
  • 1,326 acceptances, or 132.6 MW, an 11.1% increase versus full year 2019.
  • Gross margin of 20.9% in 2020, an increase of 8.5 percentage points compared to gross margin of 12.4% in 2019, primarily driven by an improvement in product gross margin of from 21.9% to 35.8%. This improvement was driven by our product cost reductions outpacing ASP reductions.
  • Excluding stock-based compensation, non-GAAP gross margin of 23.1% in 2020, an increase of 4.9 percentage points compared to non-GAAP gross margin of 18.2% in 2019, driven primarily by an improvement in product gross margin.
  • Operating margin of (10.2%) in 2020, an improvement of 19.4 percentage points compared to operating margin of (29.6%) in 2019, driven by the improvement in gross margin and a $94.4 million reduction in stock-based compensation expenses burdening operating expenses.
  • Excluding stock-based compensation, non-GAAP operating margin of (0.9%) in 2020, an improvement of 3.8 percentage points compared to non-GAAP operating margin of (4.7%) in 2019, driven primarily by an improvement in gross margin.
  • GAAP EPS of ($1.14) and Adjusted EPS of ($0.67) in 2020, compared to GAAP EPS of ($2.67) and Adjusted EPS of ($1.07) in 2019.

KR Sridhar, founder, chairman, and chief executive officer, Bloom Energy, commented: “2020 was a year unlike any other in modern history as we dealt with the dual challenges of the COVID-19 global pandemic and an uncertain economy. Yet, Bloom Energy’s management team and employees proved resilient in executing our business plan, delivering strong financial performance, solid operating results and significantly improving our balance sheet. We are well-positioned for growth as we implement our technology road map and build applications for the Bloom Energy Server that solve critical energy problems like resiliency, reducing carbon emissions and costs. As we enter 2021, there are many positive developments. The Biden Administration is embracing proactive climate change policies and continuing a low-interest environment while focusing on critical infrastructure investments that fit well with our strategic approach. And, beyond the United States, there is significant momentum in Asia and opportunities to grow in other markets around the world. We believe our work in 2020 provides a spring board for success in 2021 and beyond.”

Greg Cameron, executive vice president and chief financial officer, Bloom Energy, commented: “We were encouraged by the financial performance during the fourth quarter of 2020 across revenue, gross margin, operating income and cash. Our bookings in the second half of the year gained momentum, and we have a strong backlog for 2021 that provides high project visibility into our 2021 guidance framework and improving cash flow outlook. We continue to make significant progress on reducing our product costs, and our technology investments remain on track.”

Summary of Key Financial Metrics

Preliminary Summary GAAP Profit and Loss Statements

 

($000)

Q420

Q320

Q419

FY20

FY19

 

Revenue

249,387

200,305

213,543

794,247

785,177

Cost of Revenue

185,761

144,318

188,595

628,454

687,590

Gross Profit

63,626

55,987

24,948

165,793

97,587

Gross Margin

25.5%

28.0%

11.7%

20.9%

12.4%

Operating Expenses

68,144

56,359

72,820

246,578

330,391

Operating Loss

(4,518)

(372)

(47,872)

(80,785)

(232,804)

Operating Margin

(1.8%)

(0.2%)

(22.4%)

(10.2%)

(29.6%)

Non-operating Expenses1

22,620

11,582

20,415

76,768

74,064

Net Loss

(27,138)

(11,954)

(68,287)

(157,553)

(306,868)

GAAP EPS

($0.16)

($0.09)

($0.58)

($1.14)

($2.67)

1.

Non-Operating Expenses and tax provision and non-controlling interest

Preliminary Summary Non-GAAP Financial Information 1
 

($000)

Q420

Q320

Q419

FY20

FY19

 

Revenue

249,387

200,305

213,543

794,247

785,177

Cost of Revenue2

182,097

140,750

180,001

610,979

642,161

Gross Profit 2

67,290

59,555

33,542

183,268

143,016

Gross Margin 2

27.0%

29.7%

15.7%

23.1%

18.2%

Operating Expenses2

55,300

44,192

45,356

190,160

179,529

Operating Income (loss) 2

11,990

15,363

(11,814)

(6,892)

(36,513)

Operating Margin 2

4.8%

7.7%

(5.5%)

(0.9%)

(4.7%)

Adjusted EBITDA 3

25,521

27,673

1,188

45,497

42,915

Adjusted EPS 4

($0.08)

($0.04)

($0.29)

($0.67)

($1.07)

1.

Reference pages 12-15 for detailed reconciliation of GAAP to Non-GAAP financial measures

2.

Excludes stock-based compensation

3.

Adjusted EBITDA is net income (loss) excluding non-controlling interest, gain (loss) on derivative revaluations, fair value adjustment for PPA derivatives, stock-based compensation, provision for income taxes, depreciation and amortization, interest expense and other one-time items

4.

Adjusted EPS is net income (loss) excluding non-controlling interest, gain (loss) on derivative revaluations, fair value adjustment for PPA derivatives and stock-based compensation using the adjusted Weighted Average Shares Outstanding (WASO) share count

Revenue and Margin Highlights

Revenue in the fourth quarter of 2020 included $171.8 million of product revenue, $28.8 million of installation revenue, $32.1 million of service revenue, and $16.6 million of electricity revenue. For the full year 2020, Bloom Energy achieved $518.6 million of product revenue, $101.9 million of installation revenue, $109.6 million of service revenue and $64.1 million of electricity revenue.

GAAP gross margin in the fourth quarter of 2020 was 25.5%, up 13.8 percentage points compared to the fourth quarter of 2019 and 20.9% for the full year 2020, up 8.5 percentage points versus full year 2019. Non-GAAP gross margin in the fourth quarter of 2020 was 27.0%, up 11.3 percentage points compared to the fourth quarter of 2019 and 23.1% for the full year 2020, up 4.9 percentage points versus full year 2019. The improvement in margins for both the fourth quarter and full year 2020 was driven by lower product costs, better performance on installations and higher product margins.

Balance Sheet Highlights

Bloom Energy’s cash position, including restricted cash, as of December 31, 2020 was $416.7 million, compared to $504.4 million as of September 30, 2020. Bloom ended the year with $527.1 million of debt, a decrease of $180.1 million from the third quarter of 2020, which included a reduction of $175.5 million in recourse debt.

2021 Outlook

Bloom announced the following outlook for the full-year 2021:

  • Revenue: $950 million - $1 billion
  • Non-GAAP Gross Margin*: ~25%
  • Non-GAAP Operating Margin*: ~3%
  • Cash Flow from Operations: Approaching Positive

*Non-GAAP gross margin and non-GAAP operating margin only exclude stock-based compensation.

Conference Call Details

We will host a conference call today, February 10, 2021, 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 +1 (844) 828-0524 and enter the passcode: 5175667. Those calling from outside the United States may dial +1 (647) 689-5146 and enter the same passcode: 5175667. 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 our website for one year. A telephonic replay of the conference call will be available for one week following the call, by dialing +1 (800) 585-8367 or +1 (416) 621-4642 and entering passcode 5175667.

Use of Non-GAAP Financial Measures

This 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. We urge you to review the reconciliations of our 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 our expectations regarding our 2021 Outlook, we are not able to provide a quantitative reconciliation of non-GAAP gross margin and non-GAAP operating margin measures to the corresponding GAAP measures without unreasonable efforts.

About Bloom Energy

Bloom Energy’s mission is to make clean, reliable energy affordable for everyone in the world. Bloom’s product, the Bloom Energy Server, delivers highly reliable and resilient, always-on electric power that is clean, cost-effective, and ideal for microgrid applications. Bloom’s customers include many Fortune 100 companies and leaders in manufacturing, data centers, healthcare, retail, higher education, utilities, and other industries. 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, expectations for growth as we implement our technology roadmap and build new applications; the pace of development of new product markets; the ability of the new Administration to enact new climate change policies; our ability for growth outside the United States; our plans for growth and success in 2021 and beyond; our expectations regarding improving cash flow; our ability to reduce our product costs; our ability to introduce new product; and our financial outlook for 2021. 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, our limited operating history, the emerging nature of the distributed generation market, the significant losses we have incurred in the past, our ability to service our existing debt obligations, the significant upfront costs of our Energy Servers, the ability to secure financing for our products, the risk of manufacturing defects, the accuracy of our estimates regarding the useful life of our Energy Servers, the availability of rebates, tax credits and other tax benefits, our reliance on tax equity financing arrangements, our reliance upon a limited number of customers, our lengthy sales and installation cycle, construction, utility interconnection and other delays and cost overruns related to the installation of our Energy Servers, business and economic conditions and growth trends in commercial and industrial energy markets, global economic conditions and uncertainties in the geopolitical environment, overall electricity generation market, the impact of the COVID-19 pandemic on the global economy and its potential impact on our supply chain, installation operations, demand for our products, our ability to protect our intellectual property, the restatement of our financial statements as announced in our Current Report on Form 8-K filed with the SEC on February 12, 2020 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 its Annual Report on Form 10-K for the year ended on December 31, 2019 as filed with the SEC on March 31, 2020, and its Quarterly Report on Form 10-Q for the quarter ended September 30, 2020 as filed with the SEC on November 6, 2020, 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. We encourage investors to visit this website from time to time, as information is updated and new information is posted.

Condensed Consolidated Balance Sheets (preliminary & unaudited)

(in thousands)

 

December 31,

 

2020

 

 

2019

 

Assets

 

 

Current assets:

 

 

Cash and cash equivalents

$

246,947

 

$

202,823

 

Restricted cash

52,470

 

30,804

 

Accounts receivable

99,513

 

37,828

 

Inventories

142,059

 

109,606

 

Deferred cost of revenue

41,469

 

58,470

 

Customer financing receivable

5,428

 

5,108

 

Prepaid expenses and other current assets

30,718

 

28,068

 

Total current assets

618,604

 

472,707

 

Property, plant and equipment, net

600,628

 

607,059

 

Operating lease right-of-use assets

35,621

 

 

Customer financing receivable, non-current

45,268

 

50,747

 

Restricted cash, non-current

117,293

 

143,761

 

Deferred cost of revenue, non-current

2,462

 

6,665

 

Other long-term assets

34,511

 

41,652

 

Total assets

$

1,454,387

 

$

1,322,591

 

Liabilities, Redeemable Noncontrolling Interest, Stockholders’ Deficit and Noncontrolling Interest

 

 

Current liabilities:

 

 

Accounts payable

$

58,334

 

$

55,579

 

Accrued warranty

10,263

 

10,333

 

Accrued expenses and other current liabilities

112,004

 

70,284

 

Deferred revenue and customer deposits

114,286

 

89,192

 

Operating lease liabilities

7,899

 

 

Financing obligations

12,745

 

10,993

 

Current portion of recourse debt

 

304,627

 

Current portion of non-recourse debt

120,846

 

8,273

 

Current portion of recourse debt from related parties

 

20,801

 

Current portion of non-recourse debt from related parties

 

3,882

 

Total current liabilities

436,377

 

573,964

 

Derivative liabilities

4,989

 

17,551

 

Deferred revenue and customer deposits, net of current portion

87,463

 

125,529

 

Operating lease liabilities, net of current portion

41,849

 

 

Financing obligations, non-current

459,981

 

446,165

 

Long-term portion of recourse debt

168,008

 

75,962

 

Long-term portion of non-recourse debt

102,045

 

192,180

 

Long-term portion of non-recourse debt from related parties

 

31,087

 

Other long-term liabilities

12,279

 

28,013

 

Total liabilities

1,312,991

 

1,490,451

 

 

 

 

Redeemable noncontrolling interest

377

 

443

 

Stockholders’ deficit:

 

 

Common stock

17

 

12

 

Additional paid-in capital

3,182,753

 

2,686,759

 

Accumulated other comprehensive income (loss)

(9

)

19

 

Accumulated deficit

(3,103,937

)

(2,946,384

)

Total stockholders’ equity (deficit)

78,824

 

(259,594

)

Noncontrolling interest

62,195

 

91,291

 

Total liabilities, redeemable noncontrolling interest, stockholders' deficit and noncontrolling interest

$

1,454,387

 

$

1,322,591

Condensed Consolidated Statements of Operations (preliminary & unaudited)

(in thousands, except per share data)

 

 

 

Three Months Ended
December 31,

 

Years Ended
December 31,

 

 

 

2020

 

 

 

2019

 

 

2020

 

 

2019

 

Revenue:

 

 

 

 

Product

$

171,801

 

$

158,427

 

$

518,633

 

$

557,336

 

Installation

 

28,827

 

 

14,429

 

101,887

 

60,826

 

Service

 

32,137

 

 

25,628

 

109,633

 

95,786

 

Electricity

 

16,622

 

 

15,059

 

64,094

 

71,229

 

Total revenue

 

249,387

 

 

213,543

 

794,247

 

785,177

 

Cost of revenue:

 

 

 

 

Product

 

105,071

 

 

141,782

 

332,724

 

435,479

 

Installation

 

29,604

 

 

16,901

 

116,542

 

76,487

 

Service

 

39,493

 

 

17,127

 

132,329

 

100,238

 

Electricity

 

11,593

 

 

12,785

 

46,859

 

75,386

 

Total cost of revenue

 

185,761

 

 

188,595

 

628,454

 

687,590

 

Gross profit

 

63,626

 

 

24,948

 

165,793

 

97,587

 

Operating expenses:

 

 

 

 

Research and development

 

21,690

 

 

22,148

 

83,577

 

104,168

 

Sales and marketing

 

18,840

 

 

17,357

 

55,916

 

73,573

 

General and administrative

 

27,614

 

 

33,315

 

107,085

 

152,650

 

Total operating expenses

 

68,144

 

 

72,820

 

246,578

 

330,391

 

Loss from operations

 

(4,518

)

 

(47,872

)

(80,785

)

(232,804

)

Interest income

 

70

 

 

862

 

1,475

 

5,661

 

Interest expense

 

(21,246

)

 

(21,635

)

(76,276

)

(87,480

)

Interest expense to related parties

 

 

 

(1,933

)

(2,513

)

(6,756

)

Other income (expense), net

 

(4,176

)

 

138

 

(8,318

)

706

 

Loss on extinguishment of debt

 

 

 

 

(12,878

)

 

Gain (loss) on revaluation of embedded derivatives

 

(1,737

)

 

(540

)

464

 

(2,160

)

Loss before income taxes

 

(31,607

)

 

(70,980

)

(178,831

)

(322,833

)

Income tax provision

 

(16

)

 

31

 

256

 

633

 

Net loss

 

(31,591

)

 

(71,011

)

(179,087

)

(323,466

)

Less: Net loss attributable to noncontrolling interests and redeemable noncontrolling interests

 

(4,453

)

 

(5,178

)

(21,534

)

(19,052

)

Net loss attributable to Class A and Class B common stockholders

 

(27,138

)

 

(65,833

)

(157,553

)

(304,414

)

Less: deemed dividend to noncontrolling interest

 

 

 

(2,454

)

 

(2,454

)

Net loss available to Class A and Class B common stockholders

$

(27,138

)

$

(68,287

)

$

(157,553

)

$

(306,868

)

Net loss per share available to Class A and Class B common stockholders, basic and diluted

$

(0.16

)

$

(0.58

)

$

(1.14

)

$

(2.67

)

Weighted average shares used to compute net loss per share attributable to Class A and Class B common stockholders, basic and diluted

 

165,975

 

 

118,588

 

138,722

 

115,118

 

Condensed Consolidated Statement of Cash Flows (preliminary & unaudited)

(in thousands)

 

 

Years Ended
December 31,

 

2020

 

 

2019

 

Cash flows from operating activities:

 

 

Net loss

$

(179,087

)

$

(323,466

)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

 

 

Depreciation and amortization

52,279

 

78,584

 

Non cash lease expense

5,328

 

 

Write-off of property, plant and equipment, net

38

 

3,117

 

Impairment of equity method investment

4,236

 

11,302

 

Write-off of PPA II and PPA IIIb decommissioned assets

 

70,543

 

Debt make-whole expense

 

5,934

 

Revaluation of derivative contracts

(497

)

2,779

 

Stock-based compensation

73,893

 

196,291

 

Loss on long-term REC purchase contract

72

 

53

 

Loss on extinguishment of debt

11,785

 

 

Amortization of debt issuance and premium cost, net

6,455

 

22,130

 

Changes in operating assets and liabilities:

 

 

Accounts receivable

(61,685

)

51,952

 

Inventories

(33,004

)

18,425

 

Deferred cost of revenue

19,910

 

(21,992

)

Customer financing receivable and other

5,159

 

5,520

 

Prepaid expenses and other current assets

(3,124

)

8,643

 

Operating lease right-of-use assets

(2,752

)

 

Other long-term assets

2,904

 

3,618

 

Accounts payable

(620

)

(11,310

)

Accrued warranty

(241

)

(6,603

)

Accrued expenses and other current liabilities

17,753

 

6,728

 

Deferred revenue and customer deposits

(12,972

)

37,146

 

Other long-term liabilities

(4,523

)

4,376

 

Net cash (used in) provided by operating activities

(98,693

)

163,770

 

Cash flows from investing activities:

 

 

Purchase of property, plant and equipment

(37,913

)

(51,053

)

Proceeds from maturity of marketable securities

 

104,500

 

Net cash (used in) provided by investing activities

(37,913

)

53,447

 

 

 

Years Ended
December 31,

 

2020

 

 

2019

 

 

 

Cash flows from financing activities:

 

 

Proceeds from issuance of debt

300,000

 

 

Proceeds from issuance of debt to related parties

30,000

 

 

Repayment of debt

(176,522

)

(119,277

)

Repayment of debt to related parties

(2,105

)

(2,200

)

Debt make-whole payment

 

(5,934

)

Debt issuance costs

(13,247

)

 

Proceeds from financing obligations

26,279

 

72,334

 

Repayment of financing obligations

(10,859

)

(8,954

)

Contributions from noncontrolling interest

6,513

 

 

Payments to noncontrolling and redeemable noncontrolling interests

 

(56,459

)

Distributions to noncontrolling and redeemable noncontrolling interests

(7,622

)

(12,537

)

Proceeds from issuance of common stock

23,491

 

12,713

 

Net cash provided by (used in) financing activities

175,928

 

(120,314

)

Net increase in cash, cash equivalents, and restricted cash

39,322

 

96,903

 

Cash, cash equivalents, and restricted cash:

 

 

Beginning of period

377,388

 

280,485

 

End of period

$

416,710

 

$

377,388

 

Reconciliation of GAAP to Non-GAAP Financial Measures (preliminary & unaudited) (in thousands)

Gross Profit and Gross Margin to Gross Profit Excluding Stock-Based Compensation and Gross Margin Excluding Stock-Based Compensation

Gross margin and gross profit excluding stock-based compensation (SBC) are supplemental measures of operating performance that do not represent and should not be considered alternatives to gross margin or gross profit, as determined under GAAP. These measures remove the impact of stock-based compensation. We believe that gross margin and gross profit excluding stock-based compensation supplement the GAAP measures and enable us to more effectively evaluate our performance period-over-period. A reconciliation of gross margin and gross profit excluding stock-based compensation to gross margin and gross profit, the most directly comparable GAAP measures, and the computation of gross margin excluding stock-based compensation are as follows:

 

Q420

Q320

Q419

FY20

FY19

Revenue

249,387

200,305

213,543

794,247

785,177

Gross Profit

63,626

55,987

24,948

165,793

97,587

Gross Margin %

25.5%

28.0%

11.7%

20.9%

12.4%

Stock-based compensation (Cost of Revenue)

3,664

3,568

8,594

17,475

45,429

Gross Profit excluding SBC

67,290

59,555

33,542

183,268

143,016

Gross Margin excluding SBC %

27.0%

29.7%

15.7%

23.1%

18.2%

Cost of Revenue and Operating Expenses to Cost of Revenue and Operating Expenses Excluding Stock-Based Compensation

Cost of revenue and operating expenses excluding stock-based compensation are a supplemental measure of operating performance that does not represent and should not be considered an alternative to cost of revenue and operating expenses, as determined under GAAP. This measure removes the impact of stock-based compensation. We believe that cost of revenue and operating expenses excluding stock-based compensation supplements the GAAP measure and enables us to more effectively evaluate our performance period-over-period. A reconciliation of cost of revenue and operating expenses excluding stock-based compensation to cost of revenue and operating expenses, the most directly comparable GAAP measure, are as follows:

 

Q420

Q320

Q419

FY20

FY19

Cost of Revenue

185,761

144,318

188,595

628,454

687,590

Stock-Based Compensation - Cost of Revenue

3,664

3,568

8,594

17,475

45,429

Cost of Revenue – Excluding SBC

182,097

140,750

180,001

610,979

642,161

 

Q420

Q320

Q419

FY20

FY19

Operating Expenses

68,144

56,359

72,820

246,578

330,391

Stock-Based Compensation - Operating Expenses

12,844

12,167

27,464

56,418

150,862

Operating Expenses – Excluding SBC

55,300

44,192

45,356

190,160

179,529

Operating Loss to Operating Income (Loss) Excluding Stock-Based Compensation

Operating income (loss) excluding stock-based compensation is a supplemental measure of operating performance that does not represent and should not be considered an alternative to operating loss, as determined under GAAP. This measure removes the impact of stock-based compensation. We believe that operating income (loss) excluding stock-based compensation supplements the GAAP measure and enables us to more effectively evaluate our performance period-over-period. A reconciliation of operating income (loss) excluding stock-based compensation to operating loss, the most directly comparable GAAP measure, and the computation of operating income (loss) excluding stock-based compensation are as follows:

 

 

Q420

Q320

Q419

FY20

FY19

Operating Loss

 

(4,518)

(372)

(47,872)

(80,785)

(232,804)

Stock-based compensation

 

16,508

15,735

36,058

73,893

196,291

Operating Income (loss) excluding SBC

 

11,990

15,363

(11,814)

(6,892)

(36,513)

Net Loss to Adjusted Net Loss and Computation of Adjusted Net Loss per Share (EPS)

Adjusted net loss and adjusted net loss per share are supplemental measures of operating performance that do not represent and should not be considered alternatives to net loss and net loss per share, as determined under GAAP. These measures remove the impact of the non-controlling interests associated with our legacy PPA entities, the revaluation of derivatives, fair market value adjustment for the PPA derivatives, and stock-based compensation, all of which are non-cash charges. We believe that adjusted net loss and adjusted net loss per share supplement GAAP measures and enable us to more effectively evaluate our performance period-over-period. A reconciliation of adjusted net loss to net loss, the most directly comparable GAAP measure, and the computation of adjusted net loss per share are as follows:

 

Q420

Q320

Q419

FY20

FY19

Net loss to Common Stockholders

(27,138)

(11,954)

(68,287)

(157,553)

(306,868)

Deemed dividend to noncontrolling interest

-

-

2,454

-

2,454

Loss (gain) on extinguishment of debt

-

(1,220)

-

12,878

-

Loss for non-controlling interests1

(4,453)

(5,922)

(5,178)

(21,534)

(19,052)

Loss (gain) on derivatives liabilities2

1,737

(1,505)

540

(464)

2,160

Loss (gain) on the Fair Value Adjustments for certain PPA derivatives3

140

(726)

(634)

110

844

Stock-based compensation

16,508

15,735

36,058

73,893

196,291

Adjusted Net Loss

(13,206)

(5,592)

(35,047)

(92,670)

(124,171)

 

 

 

 

 

 

Net loss to Common Stockholders per share

$ (0.16)

$ (0.09)

$ (0.58)

$ (1.14)

$ (2.67)

Adjusted net loss per share (EPS)

$ (0.08)

$ (0.04)

$ (0.29)

$ (0.67)

$ (1.07)

GAAP weighted average shares outstanding attributable to common, Basic and Diluted (thousands)

165,975

138,964

118,588

138,722

115,118

Adjusted weighted average shares outstanding attributable to common, Basic and Diluted (thousands)4

165,975

138,964

119,532

138,722

116,061

1.

Represents the profits and losses allocated to the non-controlling interests under the hypothetical liquidation at book value (HLBV) method

2.

Represents the adjustments to the fair value of the embedded derivatives associated with the convertible notes and other derivatives

3.

Represents the adjustments to the fair value of the derivative forward contract for one PPA entity (our first PPA company), a wholly owned subsidiary

4.

Includes adjustments to reflect assumed conversion of certain convertible promissory notes

Net Loss to Adjusted EBITDA

Adjusted EBITDA is a non-GAAP supplemental measure of operating performance that does not represent and should not be considered an alternative to operating loss or cash flow from operations, as determined by GAAP. Adjusted EBITDA is defined as net income (loss) before interest expense, income tax expense, non-controlling interest, revaluations, stock-based compensation and depreciation and amortization expense. 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. Adjusted EBITDA may not be comparable to similarly titled measures provided by other companies due to potential differences in methods of calculations. A reconciliation of Adjusted EBITDA to net loss is as follows:

 

Q420

Q320

Q419

FY20

FY19

Net loss to Common Stockholders

(27,138)

(11,954)

(68,287)

(157,553)

(306,868)

Deemed dividend to noncontrolling interest

-

-

2,454

-

2,454

Loss (gain) on extinguishment of debt

-

(1,220)

-

12,878

-

Loss for non-controlling interests1

(4,453)

(5,922)

(5,178)

(21,534)

(19,052)

Loss (gain) on derivatives liabilities2

1,737

(1,505)

540

(464)

2,160

Loss (gain) on the Fair Value Adjustments for certain PPA derivatives3

140

(726)

(634)

110

844

Stock-based compensation

16,508

15,735

36,058

73,893

196,291

Depreciation & Amortization

13,391

13,036

13,636

52,279

78,584

Provision (benefit) for Income Tax

(16)

7

31

256

633

Interest Expense (Income), Other Expense (Income), net

25,352

20,222

22,568

85,632

87,869

Adjusted EBITDA

25,521

27,673

1,188

45,497

42,915

1.

Represents the profits and losses allocated to the non-controlling interests under the hypothetical liquidation at book value (HLBV) method

2.

Represents the adjustments to the fair value of the embedded derivatives associated with the convertible notes and other derivatives

3.

Represents the adjustments to the fair value of the derivative forward contract for one PPA entity (our first PPA company)

 

Investor Relations:
investor@bloomenergy.com

Media:
Jennifer Duffourg
Bloom Energy
+1 (480) 341-5464
jennifer.duffourg@bloomenergy.com

Source: Bloom Energy Corporation

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