Press Release Details

Bloom Energy Reports Record Revenue in Third Quarter 2023 Financial Results

November 8, 2023

Bloom Energy Corporation (NYSE: BE) reported today its total revenue for the third quarter ended September 30, 2023, grew 37% compared with the third quarter of 2022. The record revenue for the quarter was driven by continued growth in Product and Service revenue.

Third Quarter Highlights

  • Revenue of $400.3 million in the third quarter of 2023, an increase of 36.9% compared to $292.3 million in the third quarter of 2022. Product and Service revenue of $352.5 million in the third quarter of 2023, an increase of 40.7% compared to $250.6 million in the third quarter of 2022.
  • Gross margin of (1.3%) in the third quarter of 2023, a decrease of 18.7 percentage points compared to 17.4% in the third quarter of 2022.
  • Non-GAAP gross margin of 31.6% in the third quarter of 2023, an increase of 12.4 percentage points compared to 19.1% in the third quarter of 2022.
  • Operating loss of $103.7 million in the third quarter of 2023, a decrease of $51.1 million compared to $52.6 million in the third quarter of 2022.
  • Non-GAAP operating profit of $51.8 million in the third quarter of 2023, an improvement of $80.3 million compared to a non-GAAP operating loss of $28.5 million in the third quarter of 2022.

“Bloom Energy is executing at a high level on innovation and growth,” said KR Sridhar, Chairman and CEO of Bloom Energy. “AI adoption across all sectors of our society will become a forcing function for data centers to adopt Bloom energy servers as a quickly deployable primary power solution. The ability to quickly deploy our energy servers together with our CHP solution for data center cooling and carbon capture for sustainability creates a real competitive advantage over virtually all alternatives in the marketplace. We are excited with our results and future prospects.”

Greg Cameron, President and CFO of Bloom Energy, added, “We had a very strong third quarter and are executing across our company. We achieved record third quarter revenues with expanding margins. We have made significant progress on reducing our costs as we continue to invest and innovate for our future. We are well positioned to meet our 2023 goals.”

Summary of Key Financial Metrics

Preliminary Summary of GAAP Profit and Loss Statements

($000), except EPS data

Q3’23

Q2’23

Q3’22

Q3’23 YTD

Q3’22 YTD

Revenue

 

400,268

 

 

301,095

 

 

292,274

 

 

976,554

 

 

736,549

 

Cost of Revenue

 

405,482

 

 

244,745

 

 

241,330

 

 

871,151

 

 

659,638

 

Gross (Loss) Profit

 

(5,214

)

 

56,350

 

 

50,944

 

 

105,403

 

 

76,911

 

Gross Margin

 

(1.3

%)

 

18.7

%

 

17.4

%

 

10.8

%

 

10.4

%

Operating Expenses

 

98,494

 

 

110,806

 

 

103,536

 

 

327,248

 

 

297,335

 

Operating Loss

 

(103,708

)

 

(54,456

)

 

(52,592

)

 

(221,845

)

 

(220,424

)

Operating Margin

 

(25.9

%)

 

(18.1

%)

 

(18.0

%)

 

(22.7

%)

 

(29.9

%)

Non-operating Expenses

 

65,291

 

 

11,607

 

 

4,485

 

 

84,782

 

 

33,812

 

Net Loss to Common Stockholders

 

(168,999

)

 

(66,061

)

 

(57,077

)

 

(306,627

)

 

(254,236

)

GAAP EPS, Basic and Diluted

$

(0.80

)

$

(0.32

)

$

(0.31

)

$

(1.47

)

$

(1.41

)

Preliminary Summary of Non-GAAP Financial Information 1

($000), except EPS data

Q3’23

Q2’23

Q3’22

Q3’23 YTD

Q3’22 YTD

Revenue

 

400,268

 

 

301,095

 

 

292,274

 

 

976,554

 

 

736,549

 

Cost of Revenue

 

273,888

 

 

239,678

 

 

236,349

 

 

730,329

 

 

556,430

 

Gross Profit

 

126,380

 

 

61,418

 

 

55,925

 

 

246,225

 

 

180,119

 

Gross Margin

 

31.6

%

 

20.4

%

 

19.1

%

 

25.2

%

 

24.5

%

Operating Expenses

 

74,580

 

 

87,357

 

 

84,449

 

 

254,457

 

 

272,620

 

Operating Income (Loss)

 

51,800

 

 

(25,940

)

 

(28,524

)

 

(8,232

)

 

(92,501

)

Operating Margin

 

12.9

%

 

(8.6

%)

 

(9.8

%)

 

(0.8

%)

 

(12.6

%)

Adjusted EBITDA

 

66,415

 

 

(8,421

)

 

(13,076

)

 

42,051

 

 

(46,320

)

Basic EPS

$

0.20

 

$

(0.17

)

$

(0.20

)

$

(0.19

)

$

(0.72

)

Diluted EPS

$

0.15

 

$

(0.17

)

$

(0.20

)

$

(0.19

)

$

(0.72

)

  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 2023:

Revenue, billion:

 

$1.4 - $1.5

Product & Service Revenue, billion:

 

$1.25 - $1.35

Non-GAAP Gross Margin:

 

~25%

Non-GAAP Operating Margin:

 

Positive

Conference Call Details

Bloom will host a conference call today, November 8, 2023, 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) 330-2443 and toll-dial-in-number +1 (240) 789-2728. The conference ID is 4781037. 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 or +1 (647) 362 9199 and entering passcode 4781037.

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 2023 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.

About Bloom Energy

Bloom Energy empowers businesses and communities to responsibly take charge of their energy. The company’s leading solid oxide platform for distributed generation of electricity and hydrogen is changing the future of energy. Fortune 100 companies turn to Bloom Energy as a trusted partner to deliver lower carbon energy today and a net-zero future. For more information, visit www.bloomenergy.com.

Forward-Looking Statements

This press release contains certain forward-looking statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “should,” “will” and “would” or the negative of these words or similar terms or expressions that concern Bloom’s expectations, strategy, priorities, plans or intentions. These forward-looking statements include, but are not limited to, Bloom’s expectations regarding: innovation and solutions; customer reaction to Bloom’s products; Bloom’s liquidity position; market demand for energy solutions; and Bloom’s 2023 outlook for revenue and profitability. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results due to a variety of factors including, but not limited to: Bloom’s limited operating history; the emerging nature of the distributed generation market and rapidly evolving market trends; the significant losses Bloom has incurred in the past; the significant upfront costs of Bloom’s Energy Servers and Bloom’s ability to secure financing for its products; Bloom’s ability to drive cost reductions and to successfully mitigate against potential price increases; Bloom’s ability to service its existing debt obligations; Bloom’s ability to be successful in new markets; 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; Bloom’s ability to secure partners in order to commercialize its electrolyzer and carbon capture products; supply constraints; 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 Annual Report on Form 10-K for the year ended December 31, 2022 as filed with the SEC on February 21, 2023 and our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2023, June 30, 2023, and September 30, 2023, as filed with the SEC on May 9, 2023, August 3, 2023, and November 8, 2023, 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, except share data)

 

 

 

September 30,

 

December 31,

 

 

2023

 

2022

Assets

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents1

 

$

557,384

 

 

$

348,498

 

Restricted cash1

 

 

42,614

 

 

 

51,515

 

Accounts receivable less allowance for doubtful accounts of $119 as of September 30, 2023 and December 31, 20221, 2

 

 

334,495

 

 

 

250,995

 

Contract assets3

 

 

143,875

 

 

 

46,727

 

Inventories1

 

 

475,649

 

 

 

268,394

 

Deferred cost of revenue4

 

 

62,212

 

 

 

46,191

 

Prepaid expenses and other current assets1

 

 

66,243

 

 

 

43,643

 

Total current assets

 

 

1,682,472

 

 

 

1,055,963

 

Property, plant and equipment, net1

 

 

490,535

 

 

 

600,414

 

Operating lease right-of-use assets1

 

 

127,973

 

 

 

126,955

 

Restricted cash1

 

 

37,698

 

 

 

118,353

 

Deferred cost of revenue

 

 

4,286

 

 

 

4,737

 

Other long-term assets1

 

 

33,208

 

 

 

40,205

 

Total assets

 

$

2,376,172

 

 

$

1,946,627

 

Liabilities and stockholders’ equity

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable1

 

$

153,793

 

 

$

161,770

 

Accrued warranty

 

 

16,537

 

 

 

17,332

 

Accrued expenses and other current liabilities1, 5

 

 

116,480

 

 

 

144,183

 

Deferred revenue and customer deposits1, 6

 

 

119,157

 

 

 

159,048

 

Operating lease liabilities1

 

 

16,666

 

 

 

16,227

 

Financing obligations

 

 

39,093

 

 

 

17,363

 

Recourse debt

 

 

 

 

 

12,716

 

Non-recourse debt1

 

 

 

 

 

13,307

 

Total current liabilities

 

 

461,726

 

 

 

541,946

 

Deferred revenue and customer deposits1

 

 

14,499

 

 

 

56,392

 

Operating lease liabilities1

 

 

133,602

 

 

 

132,363

 

Financing obligations

 

 

410,365

 

 

 

442,063

 

Recourse debt

 

 

840,492

 

 

 

273,076

 

Non-recourse debt1

 

 

1,483

 

 

 

112,480

 

Other long-term liabilities

 

 

8,805

 

 

 

9,491

 

Total liabilities

 

$

1,870,972

 

 

$

1,567,811

 

Commitments and contingencies

 

 

 

 

Stockholders’ equity:

 

 

 

 

Common stock: $0.0001 par value; Class A shares - 600,000,000 shares authorized and 223,860,870 shares and 189,864,722 shares issued and outstanding and Class B shares - 600,000,000 shares authorized and 0 shares and 15,799,968 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively

 

 

21

 

 

 

20

 

Additional paid-in capital

 

 

4,360,080

 

 

 

3,906,491

 

Accumulated other comprehensive loss

 

 

(2,378

)

 

 

(1,251

)

Accumulated deficit

 

 

(3,871,110

)

 

 

(3,564,483

)

Total equity attributable to common stockholders

 

 

486,613

 

 

 

340,777

 

Noncontrolling interest

 

 

18,587

 

 

 

38,039

 

Total stockholders’ equity

 

$

505,200

 

 

$

378,816

 

Total liabilities and stockholders’ equity

 

$

2,376,172

 

 

$

1,946,627

1

We have a variable interest entity related to PPA V and a joint venture in the Republic of Korea, which represent a portion of the consolidated balances recorded within these financial statement line items.

In August 2023, we sold the PPA V entity as a result of the PPA V Repowering of Energy Servers, as such the consolidated balances recorded within these financial statement line items as of September 30, 2023 exclude PPA V balances.

2

Including amounts from related parties of $247.9 million and $4.3 million as of September 30, 2023 and December 31, 2022, respectively.

3

Including amounts from related parties of $3.4 million as of September 30, 2023. There was no respective related party amounts as of December 31, 2022.

4

Including amounts from related parties of $23.4 million as of September 30, 2023. There was no respective related party amounts as of December 31, 2022.

5

Including amounts from related parties of $5.7 million as of September 30, 2023. There was no respective related party amounts as of December 31, 2022.

6

Including amounts from related parties of $11.1 million as of September 30, 2023. There was no respective related party amounts as of December 31, 2022.

Condensed Consolidated Statements of Operations (preliminary & unaudited) (in thousands, except net loss per share data)

 

 

 

Three Months Ended

September 30,

 

Nine Months Ended

September 30,

 

 

2023

 

2022

 

2023

 

2022

Revenue:

 

 

 

 

 

 

 

 

Product

 

$

304,976

 

 

$

213,243

 

 

$

713,427

 

 

$

520,415

 

Installation

 

 

21,916

 

 

 

22,682

 

 

 

66,762

 

 

 

48,964

 

Service

 

 

47,535

 

 

 

37,347

 

 

 

130,496

 

 

 

111,012

 

Electricity

 

 

25,841

 

 

 

19,002

 

 

 

65,869

 

 

 

56,158

 

Total revenue1

 

 

400,268

 

 

 

292,274

 

 

 

976,554

 

 

 

736,549

 

Cost of revenue:

 

 

 

 

 

 

 

 

Product

 

 

182,832

 

 

 

158,176

 

 

 

457,591

 

 

 

393,337

 

Installation

 

 

25,902

 

 

 

28,333

 

 

 

77,881

 

 

 

57,836

 

Service

 

 

57,370

 

 

 

41,792

 

 

 

165,877

 

 

 

124,646

 

Electricity

 

 

139,378

 

 

 

13,029

 

 

 

169,802

 

 

 

83,819

 

Total cost of revenue

 

 

405,482

 

 

 

241,330

 

 

 

871,151

 

 

 

659,638

 

Gross (loss) profit

 

 

(5,214

)

 

 

50,944

 

 

 

105,403

 

 

 

76,911

 

Operating expenses:

 

 

 

 

 

 

 

 

Research and development

 

 

35,126

 

 

 

36,146

 

 

 

122,309

 

 

 

112,286

 

Sales and marketing

 

 

20,002

 

 

 

23,275

 

 

 

73,935

 

 

 

65,084

 

General and administrative

 

 

43,366

 

 

 

44,115

 

 

 

131,004

 

 

 

119,965

 

Total operating expenses

 

 

98,494

 

 

 

103,536

 

 

 

327,248

 

 

 

297,335

 

Loss from operations

 

 

(103,708

)

 

 

(52,592

)

 

 

(221,845

)

 

 

(220,424

)

Interest income

 

 

7,419

 

 

 

1,109

 

 

 

13,771

 

 

 

1,364

 

Interest expense

 

 

(68,037

)

 

 

(13,099

)

 

 

(93,736

)

 

 

(41,000

)

Other (expense) income, net

 

 

(1,577

)

 

 

4,472

 

 

 

(3,660

)

 

 

254

 

Loss on extinguishment of debt

 

 

(1,415

)

 

 

 

 

 

(4,288

)

 

 

(4,233

)

(Loss) gain on revaluation of embedded derivatives

 

 

(114

)

 

 

54

 

 

 

(1,213

)

 

 

623

 

Loss before income taxes

 

 

(167,432

)

 

 

(60,056

)

 

 

(310,971

)

 

 

(263,416

)

Income tax provision

 

 

646

 

 

 

336

 

 

 

1,083

 

 

 

888

 

Net loss

 

 

(168,078

)

 

 

(60,392

)

 

 

(312,054

)

 

 

(264,304

)

Less: Net gain (loss) attributable to noncontrolling interest

 

 

921

 

 

 

(3,315

)

 

 

(5,427

)

 

 

(9,768

)

Net loss attributable to common stockholders

 

 

(168,999

)

 

 

(57,077

)

 

 

(306,627

)

 

 

(254,536

)

Less: Net loss attributable to redeemable noncontrolling interest

 

 

 

 

 

 

 

 

 

 

 

(300

)

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

 

$

(168,999

)

 

$

(57,077

)

 

$

(306,627

)

 

$

(254,236

)

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

 

$

(0.80

)

 

$

(0.31

)

 

$

(1.47

)

 

$

(1.41

)

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

 

 

210,930

 

 

 

186,487

 

 

 

208,798

 

 

 

180,762

 

1

Including related party revenue of $125.7 million and $361.0 million for the three and nine months ended September 30, 2023, respectively and $12.5 million and $30.2 million for the three and nine months ended September 30, 2022, respectively.

Condensed Consolidated Statement of Cash Flows (preliminary & unaudited)(in thousands)

 

 

 

Three Months Ended

September 30,

 

Nine Months Ended

September 30,

 

 

2023

 

2022

 

2023

 

2022

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net loss

 

$

(168,078

)

 

$

(60,392

)

 

$

(312,054

)

 

$

(264,304

)

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

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

14,615

 

 

 

15,485

 

 

 

50,283

 

 

 

46,182

 

Non-cash lease expense

 

 

8,356

 

 

 

9,353

 

 

 

24,540

 

 

 

18,153

 

(Loss) gain on disposal of property, plant and equipment

 

 

(19

)

 

 

 

 

 

177

 

 

 

(523

)

Revaluation of derivative contracts

 

 

114

 

 

 

(11,320

)

 

 

1,213

 

 

 

(9,640

)

Impairment of assets related to PPA V and PPA IIIa

 

 

130,111

 

 

 

 

 

 

130,111

 

 

 

44,800

 

Derecognition of loan commitment asset related to SK ecoplant Second Tranche Closing

 

 

52,792

 

 

 

 

 

 

52,792

 

 

 

 

Stock-based compensation

 

 

21,315

 

 

 

23,686

 

 

 

77,160

 

 

 

81,460

 

Amortization of warrants and debt issuance costs

 

 

1,514

 

 

 

704

 

 

 

3,300

 

 

 

2,355

 

Loss on extinguishment of debt

 

 

1,415

 

 

 

 

 

 

4,288

 

 

 

4,233

 

Unrealized foreign currency exchange loss

 

 

1,517

 

 

 

810

 

 

 

3,029

 

 

 

3,086

 

Other

 

 

 

 

 

 

 

 

 

 

 

3,487

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable1

 

 

16,100

 

 

 

6,820

 

 

 

(83,851

)

 

 

15,758

 

Contract assets2

 

 

(108,692

)

 

 

7,606

 

 

 

(97,148

)

 

 

(567

)

Inventories

 

 

(8,969

)

 

 

(47,973

)

 

 

(206,315

)

 

 

(110,797

)

Deferred cost of revenue3

 

 

(8,370

)

 

 

139

 

 

 

(15,914

)

 

 

(8,856

)

Customer financing receivable

 

 

 

 

 

 

 

 

 

 

 

2,510

 

Prepaid expenses and other current assets

 

 

(22,807

)

 

 

(9,953

)

 

 

(20,849

)

 

 

(15,766

)

Other long-term assets

 

 

10,219

 

 

 

(730

)

 

 

13,634

 

 

 

(730

)

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

 

 

(8,432

)

 

 

(260

)

 

 

(23,879

)

 

 

2,162

 

Finance lease liabilities

 

 

171

 

 

 

451

 

 

 

907

 

 

 

499

 

Accounts payable

 

 

(41,589

)

 

 

(11,943

)

 

 

(5,695

)

 

 

38,642

 

Accrued warranty

 

 

1,631

 

 

 

1,597

 

 

 

(795

)

 

 

1,597

 

Accrued expenses and other current liabilities4

 

 

4,782

 

 

 

18,519

 

 

 

(30,937

)

 

 

502

 

Deferred revenue and customer deposits5

 

 

(30,275

)

 

 

(2,558

)

 

 

(57,041

)

 

 

(12,716

)

Other long-term liabilities

 

 

(590

)

 

 

(9,980

)

 

 

(1,320

)

 

 

(9,980

)

Net cash used in operating activities

 

 

(133,169

)

 

 

(69,939

)

 

 

(494,364

)

 

 

(168,453

)

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Purchase of property, plant and equipment

 

 

(21,335

)

 

 

(36,179

)

 

 

(67,485

)

 

 

(80,907

)

Proceeds from sale of property, plant and equipment

 

 

(22

)

 

 

 

 

 

3

 

 

 

 

Net cash used in investing activities

 

 

(21,357

)

 

 

(36,179

)

 

 

(67,482

)

 

 

(80,907

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Proceeds from issuance of debt

 

 

(35

)

 

 

 

 

 

633,983

 

 

 

 

Payment of debt issuance costs

 

 

(3,711

)

 

 

 

 

 

(19,539

)

 

 

 

Repayment of debt of PPA V and PPA IIIa

 

 

(118,538

)

 

 

 

 

 

(118,538

)

 

 

(30,212

)

Debt make-whole payment related to PPA IIIa debt

 

 

 

 

 

 

 

 

 

 

 

(2,413

)

Repayment of recourse debt

 

 

 

 

 

(6,533

)

 

 

(72,852

)

 

 

(17,262

)

Proceeds from financing obligations

 

 

 

 

 

 

 

 

2,702

 

 

 

 

Repayment of financing obligations

 

 

(4,747

)

 

 

(12,346

)

 

 

(13,475

)

 

 

(28,821

)

Distributions and payments to noncontrolling interests

 

 

(2,265

)

 

 

(1,557

)

 

 

(2,265

)

 

 

(5,972

)

Proceeds from issuance of common stock

 

 

6,745

 

 

 

7,852

 

 

 

16,003

 

 

 

15,150

 

Proceeds from public share offering

 

 

 

 

 

385,396

 

 

 

 

 

 

385,396

 

Public share offering costs

 

 

 

 

 

(13,407

)

 

 

 

 

 

(13,407

)

Buyout of noncontrolling interest

 

 

(6,864

)

 

 

 

 

 

(6,864

)

 

 

 

Proceeds from issuance of Series B redeemable convertible preferred stock

 

 

 

 

 

 

 

 

310,957

 

 

 

 

Contributions from noncontrolling interest

 

 

 

 

 

2,815

 

 

 

6,979

 

 

 

2,815

 

Purchase of capped call related to convertible notes

 

 

 

 

 

 

 

 

(54,522

)

 

 

 

Other

 

 

(250

)

 

 

(63

)

 

 

(408

)

 

 

(63

)

Net cash (used in) provided by financing activities

 

 

(129,665

)

 

 

362,157

 

 

 

682,161

 

 

 

305,211

 

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

 

 

(657

)

 

 

(896

)

 

 

(985

)

 

 

(1,643

)

Net (decrease) increase in cash, cash equivalents and restricted cash

 

 

(284,848

)

 

 

255,143

 

 

 

119,330

 

 

 

54,208

 

Cash, cash equivalents and restricted cash:

 

 

 

 

 

 

 

 

Beginning of period

 

 

922,544

 

 

 

414,179

 

 

 

518,366

 

 

 

615,114

 

End of period

 

 

637,696

 

 

 

669,322

 

 

 

637,696

 

 

 

669,322

 

1

Including changes in related party balances of $241.9 million and $6.8 million for the three months ended September 30, 2023 and 2022, respectively, and $243.6 million and $8.2 million for the nine months ended September 30, 2023 and 2022, respectively.

2

Including changes in related party balances of $3.4 million for the three and nine months ended September 30, 2023. There were no associated related party balances for the three and nine months ended September 30, 2022.

3

Including changes in related party balances of $23.4 million for the three and nine months ended September 30, 2023. There were no associated related party balances for the three and nine months ended September 30, 2022.

4

Including changes in related party balances of $5.7 million for the three and nine months ended September 30, 2023. There were no associated related party balances for the three and nine months ended September 30, 2022.

5

Including changes in related party balances of $11.1 million for the three and nine months ended September 30, 2023. There were no associated related party balances for the three and nine months ended September 30, 2022.

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

 

 

Q3’23

Q2’23

Q3’22

Q3’23 YTD

Q3’22 YTD

GAAP revenue

400,268

 

301,095

 

292,274

 

976,554

 

736,549

 

GAAP cost of sales

405,482

 

244,745

 

241,330

 

871,151

 

659,638

 

GAAP gross (loss) profit

(5,214

)

56,350

 

50,944

 

105,403

 

76,911

 

Non-GAAP adjustments:

 

 

 

 

 

Stock-based compensation expense

5,581

 

5,067

 

4,981

 

14,809

 

13,608

 

Impairment charge (PPA V, PPA IIIa)

123,700

 

 

 

123,700

 

44,800

 

Restructuring charges

725

 

 

 

725

 

 

PPA V Sales property tax

1,588

 

 

 

1,588

 

 

Non-GAAP gross profit

126,380

 

61,417

 

55,925

 

246,225

 

135,319

 

GAAP gross margin %

(1.3

%)

18.7

%

17.4

%

10.8

%

10.4

%

Non-GAAP adjustments

32.9

%

1.7

%

1.7

%

14.4

%

7.9

%

Non-GAAP gross margin %

31.6

%

20.4

%

19.1

%

25.2

%

18.4

%

 

Q3’23

Q2’23

Q3’22

Q3’23 YTD

Q3’22 YTD

GAAP loss from operations

(103,708

)

(54,456

)

(52,592

)

(221,845

)

(220,424

)

Non-GAAP adjustments:

 

 

 

 

 

Stock-based compensation expense

21,564

 

28,479

 

24,031

 

79,596

 

82,938

 

Impairment charge (PPA V, PPA IIIa)

130,088

 

 

 

130,088

 

44,800

 

PPA V Sales property tax

1,588

 

 

 

1,588

 

 

Restructuring charges

2,226

 

 

 

2,226

 

 

Amortization of acquired intangible assets

42

 

37

 

37

 

115

 

185

 

Non-GAAP profit (loss) from operations

51,800

 

(25,940

)

(28,524

)

(8,232

)

(92,501

)

GAAP operating margin %

(25.9

%)

(18.1

%)

(18.0

%)

(22.7

%)

(29.9

%)

Non-GAAP adjustments

38.8

%

9.5

%

8.2

%

21.9

%

17.4

%

Non-GAAP operating margin %

12.9

%

(8.6

%)

(9.8

%)

(0.8

%)

(12.6

%)

Reconciliation of GAAP Net Loss to non-GAAP Net Profit (Loss) and Computation of non-GAAP Net Profit (Loss) per Share (EPS) (preliminary & unaudited) (in thousands, except share data)

 

 

Q3’23

Q2’23

Q3’22

Q3’23 YTD

Q3’22 YTD

Net loss to Common Stockholders

 

(168,999

)

 

(66,061

)

 

(57,077

)

 

(306,627

)

 

(254,236

)

Non-GAAP adjustments:

 

 

 

 

 

Add back: Gain (loss) for non-controlling interests

 

921

 

 

(2,998

)

 

(3,315

)

 

(5,427

)

 

(10,068

)

Loss (gain) on derivative liabilities

 

114

 

 

1,216

 

 

(54

)

 

1,213

 

 

(623

)

Impairment charge (PPA V, PPA IIIa and Goodwill)

 

130,088

 

 

 

 

 

 

130,088

 

 

46,757

 

Loss on China JV investment

 

 

 

 

 

 

 

 

 

1,446

 

Loss on extinguishment of debt

 

1,415

 

 

2,873

 

 

 

 

4,288

 

 

4,233

 

Amortization of acquired intangible assets

 

42

 

 

37

 

 

37

 

 

115

 

 

185

 

Restructuring charges

 

2,226

 

 

 

 

 

 

2,226

 

 

 

PPA V Sales property tax

 

1,588

 

 

 

 

 

 

1,588

 

 

 

Stock-based compensation expense

 

21,564

 

 

28,479

 

 

24,031

 

 

79,596

 

 

82,938

 

Interest expense on SK loan commitment

 

52,792

 

 

 

 

 

 

52,792

 

 

 

Adjusted Net Profit (Loss)

 

41,751

 

 

(36,454

)

 

(36,378

)

 

(40,148

)

 

(129,368

)

 

 

 

 

 

 

Adjusted net profit (loss) per share (EPS), Basic

$

0.20

 

$

(0.17

)

$

(0.20

)

$

(0.19

)

$

(0.72

)

Adjusted net profit (loss) per share (EPS), Diluted

$

0.15

 

$

(0.17

)

$

(0.20

)

$

(0.19

)

$

(0.72

)

Weighted average shares outstanding attributable to common, Basic

 

210,930

 

 

208,692

 

 

186,487

 

 

208,798

 

 

180,762

 

Weighted-average shares outstanding attributable to common, Diluted

 

274,337

 

 

208,692

 

 

186,487

 

 

208,798

 

 

180,762

 

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

 

 

Q3’23

Q2’23

Q3’22

Q3’23 YTD

Q3’22 YTD

Net loss to Common Stockholders

(168,999

)

(66,061

)

(57,077

)

(306,627

)

(254,236

)

Add back: (Gain) loss for non-controlling interests

921

 

(2,998

)

(3,315

)

(5,427

)

(10,068

)

Loss (gain) on derivative liabilities

114

 

1,216

 

(54

)

1,213

 

(623

)

Impairment charge (PPA V, PPA IIIa and Goodwill)

130,088

 

 

 

130,088

 

46,757

 

Loss on China JV investment

 

 

 

 

1,446

 

Loss on extinguishment of debt

1,415

 

2,873

 

 

4,288

 

4,233

 

Stock-based compensation expense

21,564

 

28,479

 

24,031

 

79,596

 

82,938

 

Restructuring charges

2,226

 

 

 

2,226

 

 

PPA V Sales property tax

1,588

 

 

 

1,588

 

 

Amortization of acquired intangible assets

42

 

37

 

37

 

115

 

185

 

Interest expense on SK loan commitment

52,792

 

 

 

52,792

 

 

Adjusted Net Profit (Loss)

41,751

 

(36,454

)

(36,378

)

(40,148

)

(129,368

)

Depreciation & amortization

14,615

 

17,519

 

15,485

 

50,283

 

46,182

 

Income tax provision

646

 

178

 

336

 

1,083

 

888

 

Interest expense (income), Other expense (income), net

9,403

 

10,336

 

7,518

 

30,833

 

35,978

 

Adjusted EBITDA

66,415

 

(8,421

)

(13,076

)

42,051

 

(46,320

)

Use of non-GAAP financial measures

To supplement Bloom Energy condensed 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 profit (loss) (non-GAAP earnings from operations), non-GAAP operating profit (loss) margin, non-GAAP net earnings, non-GAAP basic and diluted earnings per share and Adjusted EBITDA. Bloom Energy also provides forecasts of non-GAAP gross margin and non-GAAP operating 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 earnings per share is diluted 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, PPA V and PPA IIIa repowering related impairment charges, restructuring charges, and PPA V Sales property tax. Non-GAAP net earnings and non-GAAP diluted earnings per share consist of net earnings or diluted net earnings per share excluding charges relating to stock-based compensation expense, gain (loss) for non-controlling interest, loss (gain) on derivatives liabilities, PPA V and PPA IIIa repowering related impairment charges, goodwill impairment, interest expense on SK loan commitment, restructuring charges, PPA V Sales property tax, loss on debt extinguishment, loss on China JV investment and the amortization of acquired intangible assets. Adjusted EBITDA is defined as net profit (loss) before interest expense, provision for income tax, depreciation and amortization expense, charges relating to stock-based compensation expense, gain (loss) for non-controlling interest, loss (gain) on derivatives liabilities, PPA V and PPA IIIa repowering related impairment charges, goodwill impairment, interest expense on SK loan commitment, restructuring charges, PPA V Sales property tax, loss on debt extinguishment, loss on China JV investment and the amortization of acquired intangible assets. Bloom Energy management uses these non-GAAP financial measures for purposes of evaluating Bloom Energy’s historical and prospective financial performance, as well as Bloom Energy’s performance relative to its competitors. Bloom Energy believes that excluding the items mentioned above from these non-GAAP financial measures allows Bloom Energy management to better understand Bloom Energy’s consolidated financial performance as management does not believe that the excluded items are reflective of ongoing operating results. More specifically, Bloom Energy management excludes each of those items mentioned above for the following reasons:

  • Stock-based compensation expense consists of equity awards granted based on the estimated fair value of those awards at grant date. Although stock-based compensation is a key incentive offered to our employees, Bloom Energy excludes these charges for the purpose of calculating these non-GAAP measures, primarily because they are non-cash expenses and such an exclusion facilitates a more meaningful evaluation of Bloom Energy current operating performance and comparisons to Bloom Energy operating performance in other periods.
  • Gain (loss) for non-controlling interest represents allocation to the non-controlling interests under the hypothetical liquidation at book value (HLBV) method and are associated with our Bloom Energy legacy PPA entities and the joint venture in the Republic of Korea.
  • Loss (gain) on derivatives liabilities represents non-cash adjustments to the fair value of the embedded derivatives.
  • PPA V repowering related impairment charge represents non-cash impairment charge on old server units decommissioned upon repowering of $123.7 million and non-cash impairment charge on non-recoverable production insurance of $6.4 million.
  • PPA IIIa repowering related impairment charge represents non-cash impairment charges on old server units decommissioned upon repowering of $44.8 million.
  • Goodwill impairment related to the acquisition of BE Japan in Q2 2021.
  • 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.
  • Restructuring charges represented by severance expense recorded in the third quarter of 2023.
  • PPA V Sales property tax related to PPA V repowering of old server units.
  • Loss on debt extinguishment related to PPA V and PPA IIIa repowering.
  • Loss on China JV investment upon sale of our equity interest.
  • Amortization of acquired intangible assets.
  • Adjusted EBITDA is defined as Adjusted Net Income (Loss) before depreciation and amortization expense, provision for income tax, interest expense (income), other expense (income), 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 Profit (Loss) and Computation of non-GAAP Net Profit (Loss) per Share (EPS),” and “Reconciliation of GAAP Net Loss to Adjusted EBITDA” set forth in this release, which should be read together with the preceding financial statements prepared in accordance with GAAP.

Material limitations associated with use of non-GAAP financial measures

These non-GAAP financial measures have limitations as analytical tools, and these measures should not be considered in isolation or as a substitute for analysis of Bloom Energy results as reported under GAAP. Some of the limitations in relying on these non-GAAP financial measures are:

  • Items such as stock-based compensation expense that is excluded from non-GAAP gross profit (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 earnings per share can have a material impact on the equivalent GAAP earnings measure.
  • Gain (loss) for non-controlling interest and loss (gain) on derivatives liabilities, though not directly affecting Bloom Energy's cash position, represent the loss (gain) in value of certain assets and liabilities. The expense associated with this loss (gain) in value is excluded from non-GAAP net earnings, and non-GAAP diluted 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 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 (loss) (non-GAAP earnings from operations), non-GAAP operating profit (loss) margin, non-GAAP net earnings, non-GAAP diluted 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.

Investor Relations:
Ed Vallejo
Bloom Energy
+1 (267) 370-9717

Media:
Amanda Song
Bloom Energy
press@bloomenergy.com

Source: Bloom Energy