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Bloom Energy Reports Second Quarter 2024 Financial Results

Reiterating 2024 financial guidance

Bloom Energy Corporation (NYSE: BE) reported today its financial results for the second quarter ended June 30, 2024. The company reported revenue of $335.8 million for the second quarter of 2024.

Second Quarter Highlights

  • Revenue of $335.8 million in the second quarter of 2024, an increase of 11.5% year-over-year.
  • Gross margin of 20.4% in the second quarter of 2024, an increase of 1.7 percentage points year-over-year; Non-GAAP gross margin of 21.8% in the second quarter of 2024, an increase of 1.4 percentage points year-over-year.
  • Operating loss of $23.1 million in the second quarter of 2024, an improvement of $31.3 million year-over-year; Non-GAAP operating loss of $3.2 million in the second quarter of 2024, an improvement of $22.7 million year-over-year.
  • Strengthened our balance sheet through the issuance of 3% convertible green notes.
  • Announced agreement with CoreWeave, a leader in AI, to power the high-performance data center owned by Chirisa Technology Parks located in Volo, Illinois.
  • Silicon Valley Power received municipal approval to enter into an agreement using Bloom fuel cells to power 20-megawatts of AWS data centers in Santa Clara, CA.

KR Sridhar, CEO of Bloom Energy, said, “It is now widely understood that demand for electricity is expected to far exceed available supply through the grid. It is presenting Bloom with a huge opportunity. We are seeing high levels of commercial interest in our products and solutions. We continue to execute well, advance our technology and build out our team for future growth.”

Dan Berenbaum, CFO of Bloom Energy, added, “We delivered record revenue and non-GAAP profitability for a second quarter and strengthened our balance sheet through the issuance of our 3% convertible green notes. We are confident in our commercial pipeline, and we are reaffirming our prior 2024 financial guidance.”

Summary of Key Financial Metrics

Summary of GAAP Profit and Loss Statements

       

($000), except EPS data

 

Q2’24

 

Q1’24

 

Q2’23

Revenue

 

 

335,767

 

 

 

235,298

 

 

 

301,095

 

Cost of Revenue

 

 

267,245

 

 

 

197,222

 

 

 

244,745

 

Gross Profit

 

 

68,522

 

 

 

38,076

 

 

 

56,350

 

Gross Margin

 

 

20.4

%

 

 

16.2

%

 

 

18.7

%

Operating Expenses

 

 

91,650

 

 

 

87,093

 

 

 

110,806

 

Operating Loss

 

 

(23,128

)

 

 

(49,017

)

 

 

(54,456

)

Operating Margin

 

 

(6.9

)%

 

 

(20.8

)%

 

 

(18.1

)%

Non-operating Expenses

 

 

38,659

 

 

 

8,507

 

 

 

11,607

 

Net Loss to Common Stockholders

 

 

(61,787

)

 

 

(57,524

)

 

 

(66,061

)

GAAP EPS, Basic and Diluted

 

$

(0.27

)

 

$

(0.25

)

 

$

(0.32

)

Summary of Non-GAAP Financial Information1

       

($000), except EPS data

 

Q2’24

 

Q1’24

 

Q2’23

Revenue

 

 

335,767

 

 

 

235,298

 

 

 

301,095

 

Cost of Revenue

 

 

262,611

 

 

 

194,071

 

 

 

239,678

 

Gross Profit

 

 

73,156

 

 

 

41,226

 

 

 

61,418

 

Gross Margin

 

 

21.8

%

 

 

17.5

%

 

 

20.4

%

Operating Expenses

 

 

76,344

 

 

 

71,962

 

 

 

87,357

 

Operating Loss

 

 

(3,188

)

 

 

(30,736

)

 

 

(25,939

)

Operating Margin

 

 

(0.9

)%

 

 

(13.1

)%

 

 

(8.6

)%

Adjusted EBITDA

 

 

10,219

 

 

 

(18,218

)

 

 

(8,421

)

Non-GAAP EPS, Basic and Diluted

 

$

(0.06

)

 

$

(0.17

)

 

$

(0.17

)

(1) 

 

A detailed reconciliation of GAAP to Non-GAAP financial measures is provided at the end of this press release

Outlook

Bloom reaffirms outlook for the full-year 2024:

• 

Revenue:                                                                              

$1.4 - $1.6B

• 

Non-GAAP Gross Margin:                                                                   

~28%

• 

Non-GAAP Operating Income:                                                        

$75 - $100M

Conference Call Details

Bloom will host a conference call today, August 8, 2024, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) to discuss its financial results. To participate in the live call, analysts and investors may call toll-free dial-in number: +1 (888) 596-4144 and toll-dial-in-number +1 (646) 968-2525. The conference ID is 9501971. A simultaneous live webcast will also be available under the Investor Relations section on our website at https://investor.bloomenergy.com/. Following the webcast, an archived version will be available on Bloom's website for one year. A telephonic replay of the conference call will be available for one week following the call, by dialing +1 (800) 770-2030 and entering passcode 9501971

Use of Non-GAAP Financial Measures

This press release includes certain non-GAAP financial measures as defined by the rules and regulations of the Securities and Exchange Commission (SEC). These non-GAAP financial measures are in addition to, and not a substitute for or superior to, measures of financial performance prepared in accordance with U.S. GAAP. There are a number of limitations related to the use of these non-GAAP financial measures versus their nearest GAAP equivalents. For example, other companies may calculate non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. Bloom urges you to review the reconciliations of its non-GAAP financial measures to the most directly comparable U.S. GAAP financial measures set forth in this press release, and not to rely on any single financial measure to evaluate our business. With respect to Bloom’s expectations regarding its 2024 Outlook, Bloom is not able to provide a quantitative reconciliation of non-GAAP gross margin and non-GAAP operating income measures to the corresponding GAAP measures without unreasonable efforts due to the uncertainty regarding, and the potential variability of, reconciling items such as stock-based compensation expense. Material changes to reconciling items could have a significant effect on future GAAP results and, as such, we believe that any reconciliation provided would imply a degree of precision that could be confusing or misleading to investors.

About Bloom Energy

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

Forward-Looking Statements

This press release contains certain forward-looking statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “should,” “will” and “would” or the negative of these words or similar terms or expressions that concern Bloom’s expectations, strategy, priorities, plans or intentions. These forward-looking statements include, but are not limited to, Bloom’s expectations regarding: innovation and solutions; customer reaction to Bloom’s products; Bloom’s liquidity position; market demand for energy solutions; and Bloom’s 2024 outlook for revenue and profitability. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results due to a variety of factors including, but not limited to: Bloom’s limited operating history; the emerging nature of the distributed generation market and rapidly evolving market trends; the significant losses Bloom has incurred in the past; the significant upfront costs of Bloom’s Energy Servers and Bloom’s ability to secure financing for its products; Bloom’s ability to drive cost reductions and to successfully mitigate against potential price increases; Bloom’s ability to service its existing debt obligations; Bloom’s ability to be successful in new markets; government incentive programs including the scheduled expiration of the Investment Tax Credit at the end of 2024; the ability of the Bloom Energy Server to operate on the fuel source a customer will want; the success of the strategic partnership with SK ecoplant in the United States and international markets; timing and development of an ecosystem for the hydrogen market, including in the South Korean market; continued incentives in the South Korean market; adapting to the new government bidding process in the South Korean market; the timing and pace of adoption of hydrogen for stationary power; the risk of manufacturing defects; the accuracy of Bloom’s estimates regarding the useful life of its Energy Servers; delays in the development and introduction of new products or updates to existing products; supply constraints; the availability of rebates, tax credits and other tax benefits; changes in the regulatory landscape; Bloom’s reliance upon a limited number of customers; Bloom’s lengthy sales and installation cycle, construction, utility interconnection and other delays and cost overruns related to the installation of its Energy Servers, including inventories with distributors; business and economic conditions and growth trends in commercial and industrial energy markets; global macroeconomic conditions, including rising interest rates, recession fears and inflationary pressures, or geopolitical events or conflicts; overall electricity generation market; management transitions; Bloom’s ability to protect its intellectual property; and other risks and uncertainties detailed in Bloom’s SEC filings from time to time. More information on potential factors that may impact Bloom’s business are set forth in Bloom’s periodic reports filed with the SEC, including our Annual Report on Form 10-K for the year ended December 31, 2023 and Quarterly Report on Form 10-Q for the quarter ended March 31, 2024, as filed with the SEC on February 15, 2024 and May 9, 2024, respectively, as well as subsequent reports filed with or furnished to the SEC from time to time. These reports are available on Bloom’s website at www.bloomenergy.com and the SEC’s website at www.sec.gov. Bloom assumes no obligation to, and does not currently intend to, update any such forward-looking statements.

The Investor Relations section of Bloom’s website at investor.bloomenergy.com contains a significant amount of information about Bloom Energy, including financial and other information for investors. Bloom encourages investors to visit this website from time to time, as information is updated and new information is posted.

Condensed Consolidated Balance Sheets (unaudited)

(in thousands, except share data)

 

 

 

June 30,

 

December 31,

 

 

2024

 

2023

Assets

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents1

 

$

581,684

 

 

$

664,593

 

Restricted cash1

 

 

25,167

 

 

 

46,821

 

Accounts receivable less allowance for credit losses of $119 as of June 30, 2024 and December 31, 20231, 2

 

 

524,000

 

 

 

340,740

 

Contract assets3

 

 

90,388

 

 

 

41,366

 

Inventories1

 

 

520,216

 

 

 

502,515

 

Deferred cost of revenue4

 

 

48,457

 

 

 

45,984

 

Prepaid expenses and other current assets1, 5

 

 

40,102

 

 

 

51,148

 

Total current assets

 

 

1,830,014

 

 

 

1,693,167

 

Property, plant and equipment, net1

 

 

494,377

 

 

 

493,352

 

Operating lease right-of-use assets1, 6

 

 

134,972

 

 

 

139,732

 

Restricted cash1

 

 

30,953

 

 

 

33,764

 

Deferred cost of revenue

 

 

3,565

 

 

 

3,454

 

Other long-term assets1, 7

 

 

54,163

 

 

 

50,208

 

Total assets

 

$

2,548,044

 

 

$

2,413,677

 

Liabilities and stockholders’ equity

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable1, 8

 

$

104,201

 

 

$

132,078

 

Accrued warranty

 

 

12,388

 

 

 

19,326

 

Accrued expenses and other current liabilities1, 9

 

 

116,399

 

 

 

130,879

 

Deferred revenue and customer deposits1, 10

 

 

112,032

 

 

 

128,922

 

Operating lease liabilities1, 11

 

 

20,123

 

 

 

20,245

 

Financing obligations

 

 

28,332

 

 

 

38,972

 

Total current liabilities

 

 

393,475

 

 

 

470,422

 

Deferred revenue and customer deposits1, 12

 

 

28,589

 

 

 

19,140

 

Operating lease liabilities1, 13

 

 

137,209

 

 

 

141,939

 

Financing obligations

 

 

408,384

 

 

 

405,824

 

Recourse debt

 

 

1,121,011

 

 

 

842,006

 

Non-recourse debt1, 14

 

 

4,347

 

 

 

4,627

 

Other long-term liabilities

 

 

8,479

 

 

 

9,049

 

Total liabilities

 

$

2,101,494

 

 

$

1,893,007

 

Commitments and contingencies

 

 

 

 

Stockholders’ equity:

 

 

 

 

Common stock: $0.0001 par value; Class A shares — 600,000,000 shares authorized and 227,556,594 shares and 224,717,533 shares issued and outstanding, and Class B shares — 470,092,742 shares and 600,000,000 shares authorized and no shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively

 

 

23

 

 

 

21

 

Additional paid-in capital

 

 

4,413,233

 

 

 

4,370,343

 

Accumulated other comprehensive loss

 

 

(2,301

)

 

 

(1,687

)

Accumulated deficit

 

 

(3,987,702

)

 

 

(3,866,599

)

Total equity attributable to common stockholders

 

 

423,253

 

 

 

502,078

 

Noncontrolling interest

 

 

23,297

 

 

 

18,592

 

Total stockholders’ equity

 

$

446,550

 

 

$

520,670

 

Total liabilities and stockholders’ equity

 

$

2,548,044

 

 

$

2,413,677

1

 

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

2

 

Including amounts from related parties of $348.2 million and $262.0 million as of June 30, 2024 and December 31, 2023, respectively.

3

 

Including amounts from related parties of $0.9 million and $6.9 million as of June 30, 2024 and December 31, 2023, respectively.

4

 

Including amounts from related parties of $0.9 million as of December 31, 2023. There were no amounts from related parties as of June 30, 2024.

5

 

Including amounts from related parties of $1.3 million and $2.3 million as of June 30, 2024 and December 31, 2023, respectively.

6

 

Including amounts from related parties of $1.7 million and $2.0 million as of June 30, 2024 and December 31, 2023, respectively.

7

 

Including amounts from related parties of $9.5 million and $9.1 million as of June 30, 2024 and December 31, 2023, respectively.

8

 

Including amounts from related parties of $0.1 million as of December 31, 2023. There were no amounts from related parties as of June 30, 2024.

9

 

Including amounts from related parties of $5.8 million and $3.4 million as of June 30, 2024 and December 31, 2023, respectively.

10

 

Including amounts from related parties of $8.6 million and $1.7 million as of June 30, 2024 and December 31, 2023, respectively.

11

 

Including amounts from related parties of $0.4 million and $0.4 million as of June 30, 2024 and December 31, 2023, respectively.

12

 

Including amounts from related parties of $4.3 million and $6.7 million as of June 30, 2024 and December 31, 2023, respectively.

13

 

Including amounts from related parties of $1.3 million and $1.6 million as of June 30, 2024 and December 31, 2023, respectively.

14

 

Including amounts from related parties of $4.3 million and $4.6 million as of June 30, 2024 and December 31, 2023, respectively.

Condensed Consolidated Statements of Operations (unaudited)|

(in thousands, except per share data)

 

 

 

Three Months

Ended

June 30, 2024

 

Three Months

Ended

March 31, 2024

 

Three Months

Ended

June 30, 2023

 

 

 

 

 

 

 

Revenue:

 

 

 

 

 

 

Product

 

$

226,308

 

 

$

153,364

 

 

$

214,706

 

Installation

 

 

42,733

 

 

 

11,444

 

 

 

24,321

 

Service

 

 

52,531

 

 

 

56,460

 

 

 

42,298

 

Electricity

 

 

14,195

 

 

 

14,030

 

 

 

19,770

 

Total revenue1

 

 

335,767

 

 

 

235,298

 

 

 

301,095

 

Cost of revenue:

 

 

 

 

 

 

Product

 

 

161,332

 

 

 

115,757

 

 

 

145,146

 

Installation

 

 

44,298

 

 

 

15,353

 

 

 

26,879

 

Service

 

 

52,401

 

 

 

56,506

 

 

 

57,263

 

Electricity

 

 

9,214

 

 

 

9,606

 

 

 

15,457

 

Total cost of revenue

 

 

267,245

 

 

 

197,222

 

 

 

244,745

 

Gross profit

 

 

68,522

 

 

 

38,076

 

 

 

56,350

 

Operating expenses:

 

 

 

 

 

 

Research and development

 

 

37,364

 

 

 

35,485

 

 

 

41,493

 

Sales and marketing

 

 

17,901

 

 

 

13,599

 

 

 

26,822

 

General and administrative2

 

 

36,385

 

 

 

38,009

 

 

 

42,491

 

Total operating expenses

 

 

91,650

 

 

 

87,093

 

 

 

110,806

 

Loss from operations

 

 

(23,128

)

 

 

(49,017

)

 

 

(54,456

)

Interest income

 

 

6,430

 

 

 

7,531

 

 

 

4,357

 

Interest expense3

 

 

(15,376

)

 

 

(14,546

)

 

 

(13,953

)

Other expense, net4

 

 

(985

)

 

 

(1,170

)

 

 

(740

)

Loss on extinguishment of debt

 

 

(27,182

)

 

 

 

 

 

(2,873

)

(Loss) gain on revaluation of embedded derivatives

 

 

(88

)

 

 

158

 

 

 

(1,216

)

Loss before income taxes

 

 

(60,329

)

 

 

(57,044

)

 

 

(68,881

)

Income tax provision (benefit)

 

 

856

 

 

 

(501

)

 

 

178

 

Net loss

 

 

(61,185

)

 

 

(56,543

)

 

 

(69,059

)

Less: Net income (loss) attributable to noncontrolling interest

 

 

602

 

 

 

981

 

 

 

(2,998

)

Net loss attributable to common stockholders

 

$

(61,787

)

 

$

(57,524

)

 

$

(66,061

)

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

 

$

(0.27

)

 

$

(0.25

)

 

$

(0.32

)

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

 

 

227,167

 

 

 

225,587

 

 

 

208,692

 

1

 

Including related party revenue of $86.8 million, $122.2 million and $4.6 million for the three months ended June 30, 2024, March 31, 2024, and June 30, 2023, respectively.

2

 

Including related party general and administrative expenses of $0.2 million and $0.2 million for the three months ended June 30, 2024, and March 31, 2024, respectively. There were no related party general and administrative expenses for the three months ended June 30, 2023.

3

 

Including related party interest expense of $0.1 million and $0.1 million for the three months ended June 30, 2024, and March 31, 2024, respectively. There were no related party general and administrative expenses for the three months ended June 30, 2023.

4

 

Including related party other expense, net of $0.4 million and $0.5 million for the three months ended June 30, 2024, and March 31, 2024, respectively. There were no related party general and administrative expenses for the three months ended June 30, 2023.

Condensed Consolidated Statement of Cash Flows (unaudited)

(in thousands)

 

 

 

 

 

 

 

 

 

 

Three Months

Ended

June 30, 2024

 

Three Months

Ended

March 31, 2024

 

Three Months

Ended

June 30, 2023

Cash flows from operating activities:

 

 

 

 

 

 

Net loss

 

$

(61,185

)

 

$

(56,543

)

 

$

(69,059

)

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

 

 

 

 

 

 

Depreciation and amortization

 

 

13,407

 

 

 

12,518

 

 

 

17,518

 

Non-cash lease expense

 

 

8,980

 

 

 

8,951

 

 

 

8,250

 

(Gain) loss on disposal of property, plant and equipment

 

 

(13

)

 

 

(2

)

 

 

5

 

Revaluation of derivative contracts

 

 

88

 

 

 

(158

)

 

 

1,216

 

Stock-based compensation expense

 

 

19,191

 

 

 

18,136

 

 

 

28,102

 

Amortization of debt issuance costs

 

 

1,603

 

 

 

1,471

 

 

 

1,121

 

Loss on extinguishment of debt

 

 

27,182

 

 

 

 

 

 

2,873

 

Unrealized foreign currency exchange loss

 

 

418

 

 

 

1,136

 

 

 

1,484

 

Other

 

 

(50

)

 

 

(50

)

 

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

Accounts receivable1

 

 

(175,657

)

 

 

(7,615

)

 

 

(21,079

)

Contract assets2

 

 

(56,599

)

 

 

7,578

 

 

 

12,595

 

Inventories

 

 

5,862

 

 

 

(24,965

)

 

 

(69,680

)

Deferred cost of revenue3

 

 

7,592

 

 

 

(10,183

)

 

 

(13,337

)

Prepaid expenses and other assets4

 

 

7,537

 

 

 

3,509

 

 

 

6,485

 

Other long-term assets5

 

 

(1,800

)

 

 

(2,155

)

 

 

3,543

 

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

 

 

(9,216

)

 

 

(8,807

)

 

 

(7,940

)

Financing lease liabilities

 

 

223

 

 

 

97

 

 

 

492

 

Accounts payable6

 

 

8,206

 

 

 

(33,455

)

 

 

62,729

 

Accrued warranty

 

 

3,191

 

 

 

(10,129

)

 

 

5,450

 

Accrued expenses and other liabilities7

 

 

19,789

 

 

 

(32,996

)

 

 

(3,442

)

Deferred revenue and customer deposits8

 

 

6,013

 

 

 

(13,454

)

 

 

(13,658

)

Other long-term liabilities

 

 

(257

)

 

 

(150

)

 

 

(153

)

Net cash used in operating activities

 

 

(175,495

)

 

 

(147,266

)

 

 

(46,485

)

Cash flows from investing activities:

 

 

 

 

 

 

Purchase of property, plant and equipment

 

 

(12,019

)

 

 

(21,435

)

 

 

(19,576

)

Proceeds from sale of property, plant and equipment

 

 

15

 

 

 

7

 

 

 

25

 

Net cash used in investing activities

 

 

(12,004

)

 

 

(21,428

)

 

 

(19,551

)

Cash flows from financing activities:

 

 

 

 

 

 

Proceeds from issuance of debt9

 

 

402,500

 

 

 

 

 

 

634,018

 

Payment of debt issuance costs

 

 

(12,323

)

 

 

 

 

 

(15,828

)

Repayment of debt

 

 

(140,990

)

 

 

 

 

 

(62,960

)

Proceeds from financing obligations

 

 

 

 

 

1,334

 

 

 

1,539

 

Repayment of financing obligations

 

 

(5,041

)

 

 

(4,958

)

 

 

(4,462

)

Proceeds from issuance of common stock

 

 

159

 

 

 

6,816

 

 

 

733

 

Proceeds from issuance of redeemable convertible preferred stock

 

 

 

 

 

 

 

 

310,957

 

Contributions from noncontrolling interest

 

 

 

 

 

3,958

 

 

 

6,979

 

Dividend paid

 

 

(1,468

)

 

 

 

 

 

 

Purchase of capped calls

 

 

 

 

 

 

 

 

(54,522

)

Other

 

 

 

 

 

 

 

 

(158

)

Net cash provided by financing activities

 

 

242,837

 

 

 

7,150

 

 

 

816,296

 

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

 

 

(256

)

 

 

(912

)

 

 

(204

)

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

 

 

55,082

 

 

 

(162,456

)

 

 

750,056

 

Cash, cash equivalents, and restricted cash:

 

 

 

 

 

 

Beginning of period

 

 

582,722

 

 

 

745,178

 

 

 

172,488

 

End of period

 

$

637,804

 

 

$

582,722

 

 

$

922,544

1

 

Including changes in related party balances of $55.8 million, $30.3 million and $2.6 million for the three months ended June 30, 2024, March 31, 2024, and June 30, 2023, respectively.

2

 

Including changes in related party balances of $2.7 million and $3.3 million for the three months ended June 30, 2024 and March 31, 2024, respectively. There were no changes in related party balances for the three months ended June 30, 2023.

3

 

Including changes in related party balances of  $0.9 million for the three months ended March 31, 2024. There were no changes in related party balances for the three months ended June 30, 2024, and June 30, 2023.

4

 

Including changes in related party balances of $0.9 million and $0.1 million for the three months ended June 30, 2024 and March 31, 2024, respectively. There were no changes in related party balances for the three months ended June 30, 2023.

5

 

Including changes in related party balances of $0.4 million and $0.8 million for the three months ended June 30, 2024 and March 31, 2024, respectively. There were no changes in related party balances for the three months ended June 30, 2023.

6

 

Including changes in related party balances of $0.1 million for the three months ended  March 31, 2024. There were no changes in related party balances for the three months ended June 30, 2024, and June 30, 2023.

7

 

Including changes in related party balances of $0.3 million and $2.7 million for the three months ended June 30, 2024 and March 31, 2024, respectively. There were no changes in related party balances for the three months ended June 30, 2023.

8

 

Including changes in related party balances of $3.6 million and $0.8 million for the three months ended June 30, 2024 and March 31, 2024, respectively. There were no changes in related party balances for the three months ended June 30, 2023.

9

 

Including changes in related party balances of $0.1 million and $0.2 million for the three months ended June 30, 2024 and March 31, 2024, respectively. There were no changes in related party balances for the three months ended June 30, 2023.

Reconciliation of GAAP to Non-GAAP Financial Measures

(unaudited)

(in thousands, except percentages)

       

 

 

Q2’24

 

Q1’24

 

Q2’23

GAAP revenue

 

335,767

 

 

235,298

 

 

301,095

 

GAAP cost of sales

 

267,245

 

 

197,222

 

 

244,745

 

GAAP gross profit

 

68,522

 

 

38,076

 

 

56,350

 

Non-GAAP adjustments:

 

 

 

 

 

 

Stock-based compensation expense

 

4,110

 

 

3,814

 

 

5,067

 

Restructuring

 

116

 

 

(663

)

 

 

Other

 

408

 

 

 

 

 

Non-GAAP gross profit

 

73,156

 

 

41,226

 

 

61,417

 

GAAP gross margin %

 

20.4

%

 

16.2

%

 

18.7

%

Non-GAAP adjustments

 

1.4

%

 

1.3

%

 

1.7

%

Non-GAAP gross margin %

 

21.8

%

 

17.5

%

 

20.4

%

 

 

Q2’24

 

Q1’24

 

Q2’23

GAAP loss from operations

 

(23,128

)

 

(49,017

)

 

(54,456

)

Non-GAAP adjustments:

 

 

 

 

 

 

Stock-based compensation expense

 

19,423

 

 

18,860

 

 

28,479

 

Restructuring

 

73

 

 

(616

)

 

 

Other

 

445

 

 

37

 

 

37

 

Non-GAAP loss from operations

 

(3,188

)

 

(30,736

)

 

(25,940

)

GAAP operating margin %

 

(6.9

)%

 

(20.8

)%

 

(18.1

)%

Non-GAAP adjustments

 

5.9

%

 

7.8

%

 

9.5

%

Non-GAAP operating margin %

 

(0.9

)%

 

(13.1

)%

 

(8.6

)%

Reconciliation of GAAP Net Loss to non-GAAP Net Loss and Computation of non-GAAP Net Loss per Share (EPS)

(unaudited)

(in thousands, except share data)

       

 

 

Q2’24

 

Q1’24

 

Q2’23

Net loss to Common Stockholders

 

 

(61,787

)

 

 

(57,524

)

 

 

(66,061

)

Non-GAAP adjustments:

 

 

 

 

 

 

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

 

 

602

 

 

 

981

 

 

 

(2,998

)

Loss (gain) on derivative liabilities

 

 

88

 

 

 

(158

)

 

 

1,216

 

Loss on extinguishment of debt

 

 

27,182

 

 

 

 

 

 

2,873

 

Stock-based compensation expense

 

 

19,423

 

 

 

18,860

 

 

 

28,479

 

Restructuring

 

 

73

 

 

 

(616

)

 

 

 

Other

 

 

445

 

 

 

25

 

 

 

37

 

Adjusted Net Loss

 

 

(13,974

)

 

 

(38,432

)

 

 

(36,454

)

 

 

 

 

 

 

 

Adjusted net loss per share (EPS), Basic and Diluted

 

$

(0.06

)

 

$

(0.17

)

 

$

(0.17

)

Weighted average shares outstanding attributable to common stockholders, Basic and Diluted

 

 

227,167

 

 

 

225,587

 

 

 

208,692

 

Reconciliation of GAAP Net Loss to Adjusted EBITDA

(unaudited)

(in thousands)

       

 

 

Q2’24

 

Q1’24

 

Q2’23

Net loss to Common Stockholders

 

(61,787

)

 

(57,524

)

 

(66,061

)

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

 

602

 

 

981

 

 

(2,998

)

Loss (gain) on derivative liabilities

 

88

 

 

(158

)

 

1,216

 

Loss on extinguishment of debt

 

27,182

 

 

 

 

2,873

 

Stock-based compensation expense

 

19,423

 

 

18,860

 

 

28,479

 

Restructuring

 

73

 

 

(616

)

 

 

Other

 

445

 

 

25

 

 

37

 

Adjusted Net Loss

 

(13,974

)

 

(38,432

)

 

(36,454

)

 

 

 

 

 

 

 

Depreciation & amortization

 

13,407

 

 

12,518

 

 

17,519

 

Income tax provision (benefit)

 

856

 

 

(501

)

 

178

 

Interest expense, Other expense, net

 

9,930

 

 

8,197

 

 

10,336

 

Adjusted EBITDA

 

10,219

 

 

(18,218

)

 

(8,421

)

Use of non-GAAP financial measures

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

These non-GAAP financial measures are not computed in accordance with, or as an alternative to, GAAP in the United States.

  • The GAAP measure most directly comparable to non-GAAP gross profit is gross profit.
  • The GAAP measure most directly comparable to non-GAAP gross margin is gross margin.
  • The GAAP measure most directly comparable to non-GAAP operating loss is operating loss.
  • The GAAP measure most directly comparable to non-GAAP operating margin is operating margin.
  • The GAAP measure most directly comparable to non-GAAP net loss is net loss.
  • The GAAP measure most directly comparable to non-GAAP diluted loss per share is diluted loss per share.
  • The GAAP measure most directly comparable to Adjusted EBITDA is net loss.

Reconciliations of each of these non-GAAP financial measures to GAAP information are included in the tables above or elsewhere in the materials accompanying this news release.

Use and economic substance of non-GAAP financial measures used by Bloom Energy

Non-GAAP gross profit and non-GAAP gross margin are defined to exclude charges relating to stock-based compensation expense, restructuring (expense reversals) charges, and other charges. Non-GAAP net loss and non-GAAP diluted loss per share consist of net loss or diluted net loss per share excluding charges relating to stock-based compensation expense, gain (loss) for non-controlling interest, loss (gain) on derivatives liabilities, restructuring (expense reversals) charges, loss on extinguishment of debt, and other charges. Adjusted EBITDA is defined as net loss before interest expense, income tax provision (benefit), depreciation and amortization expense, charges relating to stock-based compensation expense, gain (loss) for non-controlling interest, loss (gain) on derivatives liabilities, restructuring (expense reversals) charges, loss on extinguishment of debt, and other charges. Bloom Energy management uses these non-GAAP financial measures for purposes of evaluating Bloom Energy’s historical and prospective financial performance, as well as Bloom Energy’s performance relative to its competitors. Bloom Energy believes that excluding the items mentioned above from these non-GAAP financial measures allows Bloom Energy management to better understand Bloom Energy’s consolidated financial performance as management does not believe that the excluded items are reflective of ongoing operating results. More specifically, Bloom Energy management excludes each of those items mentioned above for the following reasons:

  • Stock-based compensation expense consists of equity awards granted based on the estimated fair value of those awards at grant date. Although stock-based compensation is a key incentive offered to our employees, Bloom Energy excludes these charges for the purpose of calculating these non-GAAP measures, primarily because they are non-cash expenses and such an exclusion facilitates a more meaningful evaluation of Bloom Energy current operating performance and comparisons to Bloom Energy operating performance in other periods.
  • Gain (loss) for non-controlling interest represents allocation to the non-controlling interests under the hypothetical liquidation at book value (HLBV) method and are associated with our Bloom Energy legacy PPA entities and the joint venture in the Republic of Korea.
  • Loss (gain) on derivatives liabilities represents non-cash adjustments to the fair value of the embedded derivatives.
  • Loss on debt extinguishment for the three months ended June 30, 2024, related to the partial repurchase of the 2.5% Green Convertible Senior Notes due August 2025 and comprised of 22.6% premium upon partial repurchase of $26.0 million and $1.2 million of debt issuance cost write-off.Loss on debt extinguishment for the three months ended June 30, 2023, related to the redemption on July 1, 2023 of 10.25% senior secured notes due March 2027 and comprised of 4% premium upon redemption of $2.3 million and $0.6 million of debt issuance cost write-off.
  • Restructuring charges and reversals, if any, are represented by severance expense, facility closure costs, and others.
  • Other represents site termination costs of $0.4 million for the three months ended June 30, 2024, immaterial amounts of quarterly amortization of acquired intangible assets, PPA sales property tax, and other gain from termination of a managed service agreement.
  • Adjusted EBITDA is defined as Adjusted Net Loss before depreciation and amortization expense, provision for income tax, interest expense, other expense, net. We use Adjusted EBITDA to measure the operating performance of our business, excluding specifically identified items that we do not believe directly reflect our core operations and may not be indicative of our recurring operations.

For more information about these non-GAAP financial measures, please see the tables captioned “Reconciliation of GAAP to Non-GAAP Financial Measures,” “Reconciliation of GAAP Loss to non-GAAP Net Loss and Computation of non-GAAP Net Loss per Share (EPS),” and “Reconciliation of GAAP Net Loss to Adjusted EBITDA” set forth in this release, which should be read together with the preceding financial statements prepared in accordance with GAAP.

Material limitations associated with use of non-GAAP financial measures

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

  • Items such as stock-based compensation expense that is excluded from non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating loss, non-GAAP operating margin, non-GAAP net loss, and non-GAAP diluted loss per share can have a material impact on the equivalent GAAP earnings measure.
  • Gain (loss) for non-controlling interest and loss (gain) on derivatives liabilities, though not directly affecting Bloom Energy’s cash position, represent the loss (gain) in value of certain assets and liabilities. The expense associated with this loss (gain) in value is excluded from non-GAAP net loss, and non-GAAP diluted loss per share and can have a material impact on the equivalent GAAP earnings measure.
  • Other companies may calculate non-GAAP gross profit (loss), non-GAAP gross margin, non-GAAP operating profit (loss) (non-GAAP earnings from operations), non-GAAP operating margin, non-GAAP net earnings (loss), non-GAAP diluted earnings (loss) per share and Adjusted EBITDA differently than Bloom Energy does, limiting the usefulness of those measures for comparative purposes.

Compensation for limitations associated with use of non-GAAP financial measures

Bloom Energy compensates for the limitations on its use of non-GAAP financial measures by relying primarily on its GAAP results and using non-GAAP financial measures only as a supplement. Bloom Energy also provides a reconciliation of each non-GAAP financial measure to its most directly comparable GAAP measure within this news release and in other written materials that include these non-GAAP financial measures, and Bloom Energy encourages investors to review those reconciliations carefully.

Usefulness of non-GAAP financial measures to investors

Bloom Energy believes that providing financial measures including non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating loss, non-GAAP operating margin, non-GAAP net loss, non-GAAP diluted loss per share in addition to the related GAAP measures provides investors with greater transparency to the information used by Bloom Energy management in its financial and operational decision making and allows investors to see Bloom Energy’s results “through the eyes” of management. Bloom Energy further believes that providing this information better enables Bloom Energy investors to understand Bloom Energy’s operating performance and to evaluate the efficacy of the methodology and information used by Bloom Energy management to evaluate and measure such performance. Disclosure of these non-GAAP financial measures also facilitates comparisons of Bloom Energy’s operating performance with the performance of other companies in Bloom Energy’s industry that supplement their GAAP results with non-GAAP financial measures that may be calculated in a similar manner.

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