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Bloom Energy Announces Third Quarter 2022 Financial Results

November 03, 2022

Bloom Energy Corporation (NYSE: BE) today announced financial results for its third quarter ended September 30, 2022.

Third Quarter Highlights

  • Record third quarter revenue of $292.3 million in 2022, an increase of 41.1% compared to $207.2 in the third quarter of 2021.
  • Gross Margin of 17.4% in the third quarter of 2022, compared to gross margin of 17.8% in the third quarter of 2021.
  • Non-GAAP gross margin was 19.1% in the third quarter of 2022, compared to non-GAAP gross margin of 19.2% in the third quarter of 2021.
  • Raised $388.7 million through new class A common stock offering.
  • Reaffirming our 2022 financial outlook.

Commenting on third quarter results, KR Sridhar, founder, chairman, and CEO of Bloom Energy said, “Bloom Energy is continuing to execute at a high level. Our commercial and industrial consumers want pragmatic solutions that can power their growth today and meet their zero-carbon needs in the future. In Bloom, our customers have a peerless platform that is purposeful and practical, offering energy security, economic security, and environmental security.”

Greg Cameron, executive vice president and CFO of Bloom Energy added, “We had a very strong operating quarter, delivering record third quarter revenue and strengthening our liquidity position to fund our growth. We remain confident in our business and are reaffirming our 2022 financial guidance.”

Summary of Key Financial Metrics

Preliminary Summary GAAP Profit and Loss Statements

($000)

Q322

Q222

Q321

Revenue

 

292,274

 

 

243,236

 

 

207,228

 

Cost of Revenue

 

241,330

 

 

245,206

 

 

170,345

 

Gross Profit (loss)

 

50,944

 

 

(1,970

)

 

36,833

 

Gross Margin %

 

17.4

%

 

(0.8

%)

 

17.8

%

Operating Expenses

 

103,536

 

 

100,203

 

 

80,772

 

Operating Loss

 

(52,592

)

 

(102,173

)

 

(43,889

)

Operating Margin %

(18.0

%)

 

(42.0

%)

 

(21.2

)%

Non-operating Expenses1

 

4,485

 

 

16,627

 

 

8,481

 

Net Loss

 

(57,077

)

 

(118,800

)

 

(52,370

)

EPS

$

(0.31

)

$

(0.67

)

$

(0.30

)

1. Includes non-operating expenses, tax provision, noncontrolling interest, and redeemable noncontrolling interest

Preliminary Summary Non-GAAP Financial Information 1

($000)

Q322

Q222

Q321

Revenue

 

292,274

 

 

243,236

 

 

207,228

 

Cost of Revenue

 

236,349

 

 

195,639

 

 

167,400

 

Gross Profit

 

55,925

 

 

47,597

 

 

39,828

 

Gross Margin %

 

19.1

%

 

19.6

%

 

19.2

%

Operating Expenses

 

84,449

 

 

72,223

 

 

62,571

 

Operating loss

 

(28,524

)

 

(24,626

)

 

(22,923

)

Operating Margin %

 

(9.8

%)

 

(10.1

%)

 

(11.1

%)

Adjusted EBITDA

 

(13,076

)

 

(8,314

)

 

(9,777

)

EPS

$

(0.20

)

$

(0.20

)

$

(0.20

)

  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 2022:

• Revenue

$1.1 - $1.15 billion

• Product & Service Revenue

$1 billion

• Non-GAAP Gross Margin

~24%

• Non-GAAP Operating Margin

~1%

• Cash Flow from Operations

Positive

Acceptances

We use acceptances as a key operating metric to measure the volume of our completed Energy Server installation activity from period to period. Acceptance typically occurs upon transfer of control to our customers, which depending on the contract terms is when the system is shipped and delivered to our customers, when the system is shipped and delivered and is physically ready for startup and commissioning, or when the system is shipped and delivered and is turned on and producing power.

Conference Call Details

Bloom will host a conference call today, November 3, 2022, 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) 200-6205 and enter the passcode: 450417. Those calling from outside the United States may dial +1 (929) 526-1599 and enter the same passcode: 450417. 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 (866) 813-9403 or + 44 204-525-0658 entering passcode 242063.

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. 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 2022 Outlook, Bloom is 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 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 (see SEC Staff Non-GAAP C&DI 102.10 and the Adopting Release).

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 around the world 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 revenue growth, margin expansion and its innovative solutions; Bloom’s expectations regarding its growth plans and Bloom’s financial outlook for 2022. 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; 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; 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; Bloom’s ability to secure partners in order to commercialize its electrolyzer and carbon capture products; the impact of the COVID-19 pandemic on the global economy and its potential impact on Bloom’s business; the availability of rebates, tax credits and other tax benefits; changes in the regulatory landscape; Bloom’s reliance on tax equity financing arrangements; 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; 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; 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 Quarterly Reports on Form 10-Q for the quarters ended March 31, 2022 and June 30, 2022 as filed with the SEC on May 6, 2022 and August 9, 2022, 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 (preliminary & unaudited)

(in thousands)

 

 

 

September 30,

 

December 31,

 

 

 

2022

 

 

 

2021

 

Assets

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

492,120

 

 

$

396,035

 

Restricted cash

 

 

42,104

 

 

 

92,540

 

Accounts receivable

 

 

71,184

 

 

 

87,789

 

Contract assets

 

 

25,768

 

 

 

25,201

 

Inventories

 

 

254,895

 

 

 

143,370

 

Deferred cost of revenue

 

 

31,812

 

 

 

25,040

 

Customer financing receivable

 

 

 

 

 

5,784

 

Prepaid expenses and other current assets

 

 

46,489

 

 

 

30,661

 

Total current assets

 

 

964,372

 

 

 

806,420

 

Property, plant and equipment, net

 

 

646,768

 

 

 

604,106

 

Operating lease right-of-use assets

 

 

114,053

 

 

 

106,660

 

Customer financing receivable

 

 

 

 

 

39,484

 

Restricted cash

 

 

135,098

 

 

 

126,539

 

Deferred cost of revenue

 

 

3,462

 

 

 

1,289

 

Other long-term assets

 

 

38,316

 

 

 

41,073

 

Total assets

 

$

1,902,069

 

 

$

1,725,571

 

Liabilities, redeemable convertible preferred stock, redeemable noncontrolling interest and stockholders’ equity (deficit)

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

120,444

 

 

$

72,967

 

Accrued warranty

 

 

13,344

 

 

 

11,746

 

Accrued expenses and other current liabilities

 

 

102,010

 

 

 

114,138

 

Deferred revenue and customer deposits

 

 

98,841

 

 

 

89,975

 

Operating lease liabilities

 

 

12,671

 

 

 

13,101

 

Financing obligations

 

 

16,682

 

 

 

14,721

 

Recourse debt

 

 

12,792

 

 

 

8,348

 

Non-recourse debt

 

 

15,943

 

 

 

17,483

 

Total current liabilities

 

 

392,727

 

 

 

342,479

 

Deferred revenue and customer deposits

 

 

68,727

 

 

 

90,310

 

Operating lease liabilities

 

 

122,412

 

 

 

106,187

 

Financing obligations

 

 

443,665

 

 

 

461,900

 

Recourse debt

 

 

274,742

 

 

 

283,483

 

Non-recourse debt

 

 

179,955

 

 

 

217,416

 

Other long-term liabilities

 

 

8,917

 

 

 

16,772

 

Total liabilities

 

 

1,491,145

 

 

 

1,518,547

 

Redeemable convertible preferred stock

 

 

208,551

 

 

 

208,551

 

Redeemable noncontrolling interest

 

 

 

 

 

300

 

Stockholders’ equity (deficit):

 

 

 

 

Common stock

 

 

19

 

 

 

18

 

Additional paid-in capital

 

 

3,691,715

 

 

 

3,219,081

 

Accumulated other comprehensive loss

 

 

(1,531

)

 

 

(350

)

Accumulated deficit

 

 

(3,517,311

)

 

 

(3,263,075

)

Total equity (deficit) attributable to Class A and Class B common stockholders

 

 

172,892

 

 

 

(44,326

)

Noncontrolling interest

 

 

29,481

 

 

 

42,499

 

Total stockholders' equity (deficit)

 

$

202,373

 

 

$

(1,827

)

Total liabilities, redeemable convertible preferred stock, redeemable noncontrolling interest and stockholders' equity (deficit)

 

$

1,902,069

 

 

$

1,725,571

 

Condensed Consolidated Statements of Operations (preliminary & unaudited)

(in thousands, except per share data)

 

 

 

Three Months Ended

September 30,

 

 

 

2022

 

 

 

2021

 

 

 

 

 

 

Revenue:

 

 

 

 

Product

 

$

213,243

 

 

$

128,550

 

Installation

 

 

22,682

 

 

 

22,172

 

Service

 

 

37,347

 

 

 

39,251

 

Electricity

 

 

19,002

 

 

 

17,255

 

Total revenue

 

 

292,274

 

 

 

207,228

 

Cost of revenue:

 

 

 

 

Product

 

 

158,176

 

 

 

93,704

 

Installation

 

 

28,333

 

 

 

25,616

 

Service

 

 

41,792

 

 

 

39,586

 

Electricity

 

 

13,029

 

 

 

11,439

 

Total cost of revenue

 

 

241,330

 

 

 

170,345

 

Gross profit

 

 

50,944

 

 

 

36,883

 

Operating expenses:

 

 

 

 

Research and development

 

 

36,146

 

 

 

27,634

 

Sales and marketing

 

 

23,275

 

 

 

20,124

 

General and administrative

 

 

44,115

 

 

 

33,014

 

Total operating expenses

 

 

103,536

 

 

 

80,772

 

Loss from operations

 

 

(52,592

)

 

 

(43,889

)

Interest income

 

 

1,109

 

 

 

72

 

Interest expense

 

 

(13,099

)

 

 

(14,514

)

Loss on extinguishment of debt

 

 

 

 

 

 

Other income, net

 

 

4,472

 

 

 

2,011

 

Gain (loss) on revaluation of embedded derivatives

 

 

54

 

 

 

(184

)

Loss before income taxes

 

 

(60,056

)

 

 

(56,504

)

Income tax provision

 

 

336

 

 

 

158

 

Net loss

 

 

(60,392

)

 

 

(56,662

)

Less: Net loss attributable to noncontrolling interest

 

 

(3,315

)

 

 

(4,309

)

Net loss attributable to Class A and Class B common stockholders

 

$

(57,077

)

 

$

(52,353

)

Less: Net income attributable to redeemable noncontrolling interest

 

 

 

 

 

17

 

Net loss before portion attributable to redeemable noncontrolling interest and noncontrolling interest

 

$

(57,077

)

 

$

(52,370

)

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

 

$

(0.31

)

 

$

(0.30

)

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

 

 

186,487

 

 

 

174,269

 

Condensed Consolidated Statement of Cash Flows (preliminary & unaudited)

(in thousands)

 

 

 

Nine Months Ended

September 30,

 

 

 

2022

 

 

 

2021

 

Cash flows from operating activities:

 

 

 

 

Net loss

 

$

(264,304

)

 

$

(144,864

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

Depreciation and amortization

 

 

46,182

 

 

 

40,079

 

Non-cash lease expense

 

 

18,153

 

 

 

7,161

 

Gain on sale of property, plant and equipment

 

 

(523

)

 

 

 

Write-off of assets related to PPA IIIa

 

 

44,800

 

 

 

 

Revaluation of derivative liabilities

 

 

(9,640

)

 

 

486

 

Stock-based compensation

 

 

81,460

 

 

 

57,309

 

Gain on remeasurement of investment

 

 

 

 

 

(1,966

)

Loss on extinguishment of debt

 

 

4,233

 

 

 

 

Amortization of warrants and debt issuance costs

 

 

2,355

 

 

 

2,824

 

Unrealized foreign currency exchange loss

 

 

3,086

 

 

 

184

 

Other

 

 

3,487

 

 

 

 

Changes in operating assets and liabilities:

 

 

 

 

Accounts receivable

 

 

15,758

 

 

 

34,236

 

Contract assets

 

 

(567

)

 

 

(24,418

)

Inventories

 

 

(110,797

)

 

 

(39,953

)

Deferred cost of revenue

 

 

(8,856

)

 

 

7,307

 

Customer financing receivable

 

 

2,510

 

 

 

4,022

 

Prepaid expenses and other assets

 

 

(15,766

)

 

 

236

 

Other long-term assets

 

 

(730

)

 

 

(374

)

Operating lease right-of-use assets and operating lease liabilities

 

 

2,162

 

 

 

(7,593

)

Finance lease liabilities

 

 

499

 

 

 

 

Accounts payable

 

 

38,642

 

 

 

37,795

 

Accrued warranty

 

 

1,597

 

 

 

(2,357

)

Accrued expenses and other liabilities

 

 

502

 

 

 

(26,178

)

Deferred revenue and customer deposits

 

 

(12,716

)

 

 

(53,181

)

Other long-term liabilities

 

 

(9,980

)

 

 

1,289

 

Net cash used in operating activities

 

 

(168,453

)

 

 

(107,956

)

Cash flows from investing activities:

 

 

 

 

Purchase of property, plant and equipment

 

 

(80,907

)

 

 

(44,625

)

Net cash acquired from step acquisition

 

 

 

 

 

3,114

 

Net cash used in investing activities

 

 

(80,907

)

 

 

(41,511

)

Cash flows from financing activities:

 

 

 

 

Repayment of debt of PPA IIIa

 

 

(30,212

)

 

 

 

Repayment of debt

 

 

(17,262

)

 

 

(11,017

)

Debt make-whole payment related to PPA IIIa debt

 

 

(2,413

)

 

 

 

Proceeds from financing obligations

 

 

 

 

 

7,534

 

Repayment of financing obligations

 

 

(28,821

)

 

 

(10,174

)

Contributions from noncontrolling interests

 

 

2,815

 

 

 

 

Distributions to redeemable noncontrolling interests

 

 

 

 

 

(37

)

Distributions to noncontrolling interests

 

 

(5,972

)

 

 

(5,285

)

Proceeds from issuance of common stock

 

 

15,150

 

 

 

72,109

 

Proceeds from Class A common share offering

 

 

385,396

 

 

 

 

Public share offering costs

 

 

(13,407

)

 

 

 

Other cash payments

 

 

(63

)

 

 

 

Net cash provided by financing activities

 

 

305,211

 

 

 

53,130

 

Effect of exchange rate changes on cash, cash equivalent and restricted cash

 

 

(1,643

)

 

 

(472

)

Net decrease in cash, cash equivalents and restricted cash

 

 

54,208

 

 

 

(96,809

)

Cash, cash equivalents and restricted cash:

 

 

 

 

Beginning of period

 

 

615,114

 

 

 

416,710

 

End of period

 

$

669,322

 

 

$

319,901

 

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

(in thousands, except percentages)

 

 

Q322

Q222

Q321

GAAP revenue

292,274

 

243,236

 

207,228

 

GAAP cost of sales

241,330

 

245,206

 

170,345

 

GAAP gross profit (loss)

50,944

 

(1,970

)

36,883

 

Non-GAAP adjustments:

 

 

 

Stock-based compensation expense

4,981

 

4,767

 

2,945

 

PPA IIIa repowering impairment charge

-

 

44,800

 

-

 

Non-GAAP gross profit

55,925

 

47,597

 

39,828

 

 

 

 

 

GAAP gross margin %

17.4

%

(0.8

%)

17.8

%

Non-GAAP adjustments

1.7

%

20.4

%

1.4

%

Non-GAAP gross margin %

19.1

%

19.6

%

19.2

%

 

Q322

Q222

Q321

GAAP loss from operations

(52,592

)

(102,173

)

(43,889

)

Non-GAAP adjustments:

 

 

 

Stock-based compensation expense

24,031

 

32,599

 

20,966

 

PPA IIIa repowering impairment charge

-

 

44,800

 

-

 

Amortization of acquired intangible assets

37

 

148

 

-

 

Non-GAAP loss from operations

(28,524

)

(24,626

)

(22,923

)

 

 

 

 

GAAP operating margin %

(18.0

%)

(42.0

%)

(21.2

%)

Non-GAAP adjustments

8.2

%

31.9

%

10.1

%

Non-GAAP operating margin %

(9.8

%)

(10.1

%)

(11.1

%)

GAAP Net Loss to non-GAAP Net Loss and Computation of non-GAAP Net Loss per Share (EPS) (preliminary & unaudited)

(in thousands)

 

 

Q322

Diluted net earnings per share

Q222

Diluted net earnings per share

Q321

Diluted net earnings per share

GAAP net loss

(57,077

)

$

(0.31

)

(118,800

)

$

(0.67

)

(52,370

)

$

(0.30

)

Non-GAAP adjustments:

 

 

 

 

 

 

Loss for non-controlling interests and redeemable noncontrolling interest

(3,315

)

 

(0.02

)

(2,365

)

 

(0.01

)

(4,292

)

 

(0.02

)

Loss (gain) on derivatives liabilities

(54

)

 

(0.00

)

(38

)

 

(0.00

)

184

 

 

0.00

 

Gain on the fair value adjustments for certain PPA derivatives

-

 

 

-

 

-

 

 

-

 

(125

)

 

(0.00

)

Goodwill impairment

-

 

 

-

 

1,957

 

 

0.01

 

-

 

 

-

 

Loss on JV investment

-

 

 

-

 

1,446

 

 

0.01

 

-

 

 

-

 

PPA IIIa repowering impairment charge

-

 

 

-

 

44,800

 

 

0.25

 

-

 

 

-

 

Loss on extinguishment of debt related to PPA IIIa

-

 

 

-

 

4,233

 

 

0.02

 

-

 

 

-

 

Amortization of acquired intangible assets

37

 

 

0.00

 

148

 

 

0.00

 

-

 

 

-

 

Stock-based compensation expense

24,031

 

 

0.13

 

32,599

 

 

0.18

 

20,966

 

 

0.12

 

Non-GAAP net loss

(36,378

)

$

(0.20

)

(36,020

)

$

(0.20

)

(35,637

)

$

(0.20

)

 

 

Q322

Q222

Q321

Numerator:

 

 

 

 

GAAP net loss

 

 

(57,077

)

 

(118,800

)

 

(52,370

)

Non-GAAP net loss

 

 

(36,378

)

 

(36,020

)

 

(35,637

)

 

 

 

 

 

Denominator:

 

 

 

 

Weighted-average shares used to compute basic net earnings per share

 

 

186,487

 

 

178,507

 

 

174,269

 

Weighted-average shares used to compute diluted net earnings per share

 

 

186,487

 

 

178,507

 

 

174,269

 

 

 

 

 

 

GAAP net earnings per share

 

 

 

 

Basic

 

$

(0.31

)

$

(0.67

)

$

(0.30

)

Diluted

 

$

(0.31

)

$

(0.67

)

$

(0.30

)

 

 

 

 

 

Non-GAAP net earnings per share

 

 

 

 

Basic

 

$

(0.20

)

$

(0.20

)

$

(0.20

)

Diluted

 

$

(0.20

)

$

(0.20

)

$

(0.20

)

GAAP Net Loss to Adjusted EBITDA reconciliation (preliminary & unaudited) (in thousands)

 

 

Q322

Q222

Q321

GAAP net loss

(57,077

)

(118,800

)

(52,370

)

Non-GAAP adjustments:

 

 

 

Loss for non-controlling interests and redeemable noncontrolling interest

(3,315

)

(2,365

)

(4,292

)

Loss (gain) on derivatives liabilities

(54

)

(38

)

184

 

Gain on the fair value adjustments for certain PPA derivatives

-

 

-

 

(125

)

Goodwill impairment

-

 

1,957

 

-

 

Stock-based compensation expense

24,031

 

32,599

 

20,966

 

Depreciation & Amortization

15,485

 

16,461

 

13,271

 

Provision (benefit) for Income Tax

336

 

(12

)

158

 

Loss on China JV investment

-

 

1,446

 

-

 

Loss on extinguishment of debt related to PPA IIIa repowering

-

 

4,233

 

-

 

PPA IIIa repowering impairment charge

-

 

44,800

 

-

 

Interest Expense / Other Misc

7,518

 

11,405

 

12,431

 

Adjusted EBITDA

(13,076

)

(8,314

)

(9,777

)

Use of non-GAAP financial measures

To supplement Bloom Energy condensed consolidated financial statement information presented on GAAP basis, Bloom Energy provides financial measures including non-GAAP gross profit (loss), non-GAAP gross margin, non-GAAP operating profit (loss), (non-GAAP earnings from operations), non-GAAP operating profit (loss) margin, non-GAAP net earnings, non-GAAP basic, diluted net earnings per share and Adjusted EBITDA. Bloom Energy also provides forecasts of non-GAAP gross profit margin and non-GAAP operating profit (loss) margin.

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 (loss) 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 profit (loss) (non-GAAP earnings from operations) is operating profit (loss) (earnings from operations).
  • The GAAP measure most directly comparable to non-GAAP operating margin is operating margin.
  • The GAAP measure most directly comparable to non-GAAP net earnings is net earnings.
  • The GAAP measure most directly comparable to non-GAAP diluted net earnings per share is diluted net earnings per share.
  • The GAAP measure most directly comparable to Adjusted EBITDA is net earnings.

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 (loss) and non-GAAP gross margin are defined to exclude charges relating to stock-based compensation expense and PPA IIIa repowering related impairment charge. Non-GAAP operating profit (loss) (non-GAAP earnings from operations) and non-GAAP operating margin are defined to exclude any charges relating to stock-based compensation expense, PPA IIIa repowering related impairment charge and the amortization of acquired intangible assets. Non-GAAP net earnings and non-GAAP diluted net earnings per share consist of net earnings or diluted net earnings per share excluding stock-based compensation, loss for non-controlling interest, loss (gain) on derivatives liabilities, loss (gain) on the fair value adjustments for certain PPA derivatives, goodwill impairment, loss on China JV investment, PPA IIIa repowering related impairment charge, loss on extinguishment of debt related to PPA IIIa repowering and the amortization of acquired intangible assets. Adjusted EBITDA is defined as net income (loss) before interest expense, income tax expense, depreciation and amortization expense, stock-based compensation, loss for non-controlling interest, loss (gain) on derivatives liabilities, loss (gain) on the fair value adjustments for certain PPA derivatives, goodwill impairment, loss on China JV investment, PPA IIIa repowering related impairment charge, loss on extinguishment of debt related to PPA IIIa repowering.

Bloom Energy management uses these non-GAAP financial measures for purposes of evaluating Bloom Energy historical and prospective financial performance, as well as Bloom Energy 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 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.
  • 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.
  • Loss (gain) on derivatives liabilities represents non-cash adjustments to the fair value of the embedded derivatives associated with the convertible notes and other derivatives.
  • Loss (gain) on the fair value adjustments for certain PPA derivatives represents non-cash adjustments to the fair value of the derivative forward contract for one PPA entity (our Third PPA company), a wholly owned subsidiary.
  • PPA IIIa repowering related impairment charge represents non-cash impairment charges on old server units decommissioned upon repowering.
  • Loss on debt extinguishment related to PPA IIIa repowering.
  • Goodwill impairment related to the acquisition of BE Japan in Q2 2021.
  • Amortization of acquired intangible assets.
  • Loss on China JV investment upon sale of our equity interest.
  • Adjusted weighted average shares outstanding attributable to common (Basic and Diluted) includes adjustments to reflect assumed conversion of certain convertible promissory notes.
  • 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.

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 (loss), non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating profit (loss) (non-GAAP earnings from operations), non-GAAP operating margin, non-GAAP net earnings, and non-GAAP diluted net earnings per share can have a material impact on the equivalent GAAP earnings measure.
  • Loss for non-controlling interest, loss (gain) on derivatives liabilities, loss (gain) on the fair value adjustments for certain PPA derivatives, though not directly affecting Bloom Energy cash position, represents 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 earnings, and non-GAAP diluted net earnings per share and can have a material impact on the equivalent GAAP earnings measure.
  • Other companies may calculate non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP operating profit (non-GAAP earnings from operations), non-GAAP operating profit margin, non-GAAP net earnings, non-GAAP diluted net earnings 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 (loss), non-GAAP gross margin, non-GAAP operating profit (non-GAAP earnings from operations), non-GAAP operating profit (loss) margin, non-GAAP net earnings, non-GAAP diluted net 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 results “through the eyes” of management. Bloom Energy further believes that providing this information better enables Bloom Energy investors to understand Bloom Energy 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 operating performance with the performance of other companies in Bloom Energy industry that supplement their GAAP results with non-GAAP financial measures that may be calculated in a similar manner.

Investor Relations:
Ed Vallejo
Bloom Energy
+1 (267) 370-9717
Edward.vallejo@bloomenergy.com

Media:
Virginia Citrano
Bloom Energy
press@bloomenergy.com

Source: Bloom Energy
Categories: Press Releases
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