Reiterating guidance for 2024
Bloom Energy Corporation (NYSE: BE) reported today its financial
results for the first quarter ended March 31, 2024. The company
reported revenue of $235.3 million for the first quarter of
2024.
First Quarter Highlights
- Revenue of $235.3 million in the first quarter of 2024, a
decrease of 14.5% compared to $275.2 million in the first quarter
of 2023. Product and service revenue of $209.8 million in the first
quarter of 2024, a decrease of 10.5% compared to $234.4 million in
the first quarter of 2023.
- Gross margin of 16.2% in the first quarter of 2024, a decrease
of 3.5 percentage points compared to 19.7% in the first quarter of
2023.
- Non-GAAP gross margin of 17.5% in the first quarter of 2024, a
decrease of 3.7 percentage points compared to 21.2% in the first
quarter of 2023.
- Operating loss of $49.0 million in the first quarter of 2024,
an improvement of $14.7 million compared to operating loss of $63.7
million in the first quarter of 2023.
- Non-GAAP operating loss of $30.7 million in the first quarter
of 2024, an improvement of $3.4 million compared to a non-GAAP
operating loss of $34.1 million in the first quarter of 2023.
“We are seeing strong market interest, increasing momentum, and
robust commercial activity across diverse end markets,” said KR
Sridhar, Founder, Chairman and CEO of Bloom Energy. “In addition to
data centers, we view AI hardware supply chain industries as a good
growth opportunity for Bloom, both in the US and in Asia. Our
customer wins on islanded-power mode without need for grid
interconnection demonstrates an ideal solution for customers
seeking time-to-power advantages.”
Greg Cameron, outgoing President and CFO of Bloom Energy, said,
“I’d like to thank KR, the Board, and the entire Bloom team for
allowing me to be part of this amazing journey. Over the past four
years, we have accomplished a great deal to position Bloom to be a
leader in the Energy Transition. While I may no longer be part of
this journey, I’m very excited for the opportunities for Bloom
Energy that lie ahead.”
Dan Berenbaum, incoming CFO of Bloom Energy, added, “I'm
energized by what I've seen in my short time at Bloom. It's clear
that we have a robust commercial pipeline and a path for meaningful
ongoing product cost reduction. I'm looking forward to working with
the team to deliver on the promise of our clean energy
solutions.”
Summary of Key Financial Metrics
Summary of GAAP Profit and Loss Statements
($000), except EPS data
Q1’24
Q4’23
Q1’23
Revenue
235,298
356,917
275,191
Cost of Revenue
197,222
264,526
220,924
Gross Profit
38,076
92,391
54,267
Gross Margin
16.2
%
25.9
%
19.7
%
Operating Expenses
87,093
79,452
117,948
Operating (Loss) Income
(49,017
)
12,939
(63,681
)
Operating Margin
(20.8
)%
3.6
%
(23.1
)%
Non-operating Expenses
8,507
8,428
7,886
Net (Loss) Income to Common
Stockholders
(57,524
)
4,511
(71,567
)
GAAP EPS, Basic
$
(0.25
)
$
0.02
$
(0.35
)
GAAP EPS, Diluted
$
(0.25
)
$
0.02
$
(0.35
)
Summary of Non-GAAP Financial Information1
($000), except EPS data
Q1’24
Q4’23
Q1’23
Revenue
235,298
356,917
275,191
Cost of Revenue
194,071
259,138
216,763
Gross Profit
41,226
97,779
58,428
Gross Margin
17.5
%
27.4
%
21.2
%
Operating Expenses
71,962
70,368
92,520
Operating (Loss) Income
(30,736
)
27,411
(34,092
)
Operating Margin
(13.1
)%
7.7
%
(12.4
)%
Adjusted EBITDA
(18,218
)
39,760
(15,942
)
Non-GAAP EPS, Basic
$
(0.17
)
$
0.09
$
(0.22
)
Non-GAAP EPS, Diluted
$
(0.17
)
$
0.07
$
(0.22
)
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:
• Non-GAAP Gross Margin:
• Non-GAAP Operating Income:
$1.4 - $1.6B ~28% $75 - $100M
Conference Call Details
Bloom will host a conference call today, May 9, 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) 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 and
entering passcode 4781037.
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;
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 upon a
limited number of customers; Bloom’s lengthy sales and installation
cycle, construction, utility interconnection and other delays and
cost overruns related to the installation of its Energy Servers,
including inventories with distributors; business and economic
conditions and growth trends in commercial and industrial energy
markets; global macroeconomic conditions, including rising interest
rates, recession fears and inflationary pressures, or geopolitical
events or conflicts; overall electricity generation market;
management transitions; Bloom’s ability to protect its intellectual
property; and other risks and uncertainties detailed in Bloom’s SEC
filings from time to time. More information on potential factors
that may impact Bloom’s business are set forth in Bloom’s periodic
reports filed with the SEC, including our Annual Report on Form
10-K for the year ended December 31, 2023 as filed with the SEC on
February 15, 2024, 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)
March 31,
December 31,
2024
2023
Assets
Current assets:
Cash and cash equivalents1
$
515,957
$
664,593
Restricted cash1
51,387
46,821
Accounts receivable less allowance for
credit losses of $119 as of March 31, 2024 and December 31, 20231,
2
348,422
340,740
Contract assets3
33,788
41,366
Inventories1
526,351
502,515
Deferred cost of revenue4
56,051
45,984
Prepaid expenses and other current
assets1, 5
47,639
51,148
Total current assets
1,579,595
1,693,167
Property, plant and equipment, net1
496,225
493,352
Operating lease right-of-use assets1,
6
138,941
139,732
Restricted cash1
15,378
33,764
Deferred cost of revenue
3,552
3,454
Other long-term assets1, 7
52,363
50,208
Total assets
$
2,286,054
$
2,413,677
Liabilities and stockholders’
equity
Current liabilities:
Accounts payable1, 8
$
94,231
$
132,078
Accrued warranty
9,197
19,326
Accrued expenses and other current
liabilities1, 9
99,307
130,879
Deferred revenue and customer deposits1,
10
94,696
128,922
Operating lease liabilities1, 11
20,513
20,245
Financing obligations
36,727
38,972
Total current liabilities
354,671
470,422
Deferred revenue and customer deposits1,
12
39,912
19,140
Operating lease liabilities1, 13
141,024
141,939
Financing obligations
404,728
405,824
Recourse debt
843,477
842,006
Non-recourse debt1, 14
4,458
4,627
Other long-term liabilities
8,634
9,049
Total liabilities
$
1,796,904
$
1,893,007
Commitments and contingencies
Stockholders’ equity:
Common stock: $0.0001 par value; Class A
shares — 600,000,000 shares authorized and 226,933,763 shares and
224,717,533 shares issued and outstanding and Class B shares —
600,000,000 shares authorized and no shares issued and outstanding
at March 31, 2024 and December 31, 2023, respectively
21
21
Additional paid-in capital
4,394,148
4,370,343
Accumulated other comprehensive loss
(2,139
)
(1,687
)
Accumulated deficit
(3,925,915
)
(3,866,599
)
Total equity attributable to common
stockholders
466,115
502,078
Noncontrolling interest
23,035
18,592
Total stockholders’ equity
$
489,150
$
520,670
Total liabilities and stockholders’
equity
$
2,286,054
$
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
$292.4 million and $262.0 million as of March 31, 2024 and December
31, 2023, respectively.
3
Including amounts from related parties of
$3.5 million and $6.9 million as of March 31, 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 March 31, 2024.
5
Including amounts from related parties of
$2.2 million and $2.3 million as of March 31, 2024 and December 31,
2023, respectively.
6
Including amounts from related parties of
$1.9 million and $2.0 million as of March 31, 2024 and December 31,
2023, respectively.
7
Including amounts from related parties of
$8.3 million and $9.1 million as of March 31, 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 March 31, 2024.
9
Including amounts from related parties of
$6.1 million and $3.4 million as of March 31, 2024 and December 31,
2023, respectively.
10
Including amounts from related parties of
$5.7 million and $1.7 million as of March 31, 2024 and December 31,
2023, respectively.
11
Including amounts from related parties of
$0.4 million and $0.4 million as of March 31, 2024 and December 31,
2023, respectively.
12
Including amounts from related parties of
$3.5 million and $6.7 million as of March 31, 2024 and December 31,
2023, respectively.
13
Including amounts from related parties of
$1.4 million and $1.6 million as of March 31, 2024 and December 31,
2023, respectively.
14
Including amounts from related parties of
$4.5 million and $4.6 million as of March 31, 2024 and December 31,
2023, respectively.
Condensed Consolidated Statements
of Operations (unaudited)
(in thousands, except per share
data)
Three Months Ended March 31,
2024
Three Months Ended December
31, 2023
Three Months Ended March 31,
2023
Revenue:
Product
$
153,364
$
261,819
$
193,745
Installation
11,444
26,033
20,525
Service
56,460
52,569
40,663
Electricity
14,030
16,496
20,258
Total revenue1
235,298
356,917
275,191
Cost of revenue:
Product
115,757
172,514
129,613
Installation
15,353
27,854
25,100
Service
56,506
55,050
51,244
Electricity
9,606
9,108
14,967
Total cost of revenue
197,222
264,526
220,924
Gross profit
38,076
92,391
54,267
Operating expenses:
Research and development
35,485
33,556
45,690
Sales and marketing
13,599
16,026
27,111
General and administrative2
38,009
29,871
45,147
Total operating expenses
87,093
79,452
117,948
(Loss) income from operations
(49,017
)
12,939
(63,681
)
Interest income
7,531
6,114
1,995
Interest expense3
(14,546
)
(14,563
)
(11,746
)
Other (expense) income, net4
(1,170
)
867
(1,343
)
Gain (loss) on revaluation of embedded
derivatives
158
(428
)
117
(Loss) income before income taxes
(57,044
)
4,930
(74,658
)
Income tax (benefit) provision
(501
)
811
259
Net (loss) income
(56,543
)
4,117
(74,917
)
Less: Net income (loss) attributable to
noncontrolling interest
981
(394
)
(3,350
)
Net (loss) income attributable to common
stockholders
(57,524
)
4,511
(71,567
)
Net (loss) income per share available to
common stockholders, basic
$
(0.25
)
$
0.02
$
(0.35
)
Net (loss) income per share available to
common stockholders, diluted
$
(0.25
)
$
0.02
$
(0.35
)
Weighted average shares used to compute
net (loss) income per share available to common stockholders,
basic
225,587
224,204
206,724
Weighted average shares used to compute
net (loss) income per share available to common stockholders,
diluted
225,587
274,366
206,724
1
Including related party revenue of $122.2
million, $126.2 million, and $0.8 million, and for the three months
ended March 31, 2024, three months ended December 31, 2023, and
three months ended March 31, 2023, respectively.
2
Including related party general and
administrative expenses of $0.2 million and $0.2 million for the
three months ended March 31, 2024 and three months ended December
31, 2023, respectively. There were no related party general and
administrative expenses for the three months ended March 31,
2023.
3
Including related party interest expense
of $0.1 million for the three months ended March 31, 2024. There
was no related party interest expense for the three months ended
December 31, 2023 and three months ended March 31, 2023.
4
Including related party other expense, net
of $(0.5) million for the three months ended March 31, 2024. There
was no related party other expense, net for the three months ended
December 31, 2023 and three months ended March 31, 2023.
Condensed Consolidated Statement
of Cash Flows (unaudited)
(in thousands)
Three Months Ended March 31,
2024
Three Months Ended December
31, 2023
Three Months Ended March 31,
2023
Cash flows from operating
activities:
Net (loss) income
$
(56,543
)
$
4,117
$
(74,917
)
Adjustments to reconcile net (loss) income
to net cash (used in) provided by operating activities:
Depreciation and amortization
12,518
12,349
18,150
Non-cash lease expense
8,951
9,079
7,934
(Gain) loss on disposal of property, plant
and equipment
(2
)
234
191
Revaluation of derivative contracts
(158
)
428
(117
)
Stock-based compensation expense
18,136
7,320
27,743
Amortization of warrants and debt issuance
costs
1,471
1,472
665
Unrealized foreign currency exchange loss
(gain)
1,136
(2,411
)
28
Other
(50
)
404
—
Changes in operating assets and
liabilities:
Accounts receivable1
(7,615
)
(6,037
)
(78,872
)
Contract assets2
7,578
102,509
(1,051
)
Inventories
(24,965
)
(25,374
)
(127,666
)
Deferred cost of revenue3
(10,183
)
17,569
5,793
Prepaid expenses and other assets4
3,509
15,095
(4,527
)
Other long-term assets5
(2,155
)
(17,000
)
(128
)
Operating lease right-of-use assets and
operating lease liabilities
(8,807
)
(8,922
)
(7,507
)
Financing lease liabilities
97
104
244
Accounts payable6
(33,455
)
(23,385
)
(26,835
)
Accrued warranty
(10,129
)
2,789
(7,876
)
Accrued expenses and other
liabilities7
(32,996
)
17,152
(32,277
)
Deferred revenue and customer
deposits8
(13,454
)
14,406
(13,108
)
Other long-term liabilities
(150
)
(65
)
(577
)
Net cash (used in) provided by operating
activities
(147,266
)
121,833
(314,710
)
Cash flows from investing
activities:
Purchase of property, plant and
equipment
(21,435
)
(16,254
)
(26,574
)
Proceeds from sale of property, plant and
equipment
7
11
—
Net cash used in investing activities
(21,428
)
(16,243
)
(26,574
)
Cash flows from financing
activities:
Proceeds from issuance of debt9
—
3,144
—
Payment of debt issuance costs
—
(197
)
—
Repayment of debt
—
—
(9,892
)
Proceeds from financing obligations
1,334
2,291
1,163
Repayment of financing obligations
(4,958
)
(4,970
)
(4,266
)
Proceeds from issuance of common stock
6,816
942
8,525
Contributions from noncontrolling
interest
3,958
—
—
Proceeds from issuance of redeemable
convertible preferred stock
—
—
310,957
Payment of issuance costs related to
redeemable convertible preferred stock
—
(22
)
—
Net cash provided by financing
activities
7,150
1,188
306,487
Effect of exchange rate changes on cash,
cash equivalent and restricted cash
(912
)
704
(124
)
Net (decrease) increase in cash, cash
equivalents and restricted cash
(162,456
)
107,482
(34,921
)
Cash, cash equivalents, and restricted
cash:
Beginning of period
745,178
637,696
518,366
End of period
$
582,722
$
745,178
$
483,445
1
Including changes in related party
balances of $30.3 million, $14.2 million, and $4.3 million for the
three months ended March 31, 2024, three months ended December 31,
2023, and three months ended March 31, 2023, respectively.
2
Including changes in related party
balances of $3.3 million and $3.5 million for the three months
ended March 31, 2024 and three months ended December 31, 2023,
respectively. There were no associated related party balances as of
March 31, 2023.
3
Including changes in related party
balances of $0.9 million and $22.5 million for the three months
ended March 31, 2024 and three months ended December 31, 2023,
respectively. There were no associated related party balances as of
March 31, 2023.
4
Including changes in related party
balances of $0.1 million and $7.6 million for the three months
ended March 31, 2024 and three months ended December 31, 2023,
respectively. There were no associated related party balances as of
March 31, 2023.
5
Including changes in related party
balances of $0.8 million and $7.1 million for the three months
ended March 31, 2024 and three months ended December 31, 2023,
respectively. There were no associated related party balances as of
March 31, 2023.
6
Including changes in related party
balances of $0.1 million and $0.1 million for the three months
ended March 31, 2024 and three months ended December 31, 2023,
respectively. There were no associated related party balances as of
March 31, 2023.
7
Including changes in related party
balances of $2.7 million and $2.3 million for the three months
ended March 31, 2024 and three months ended December 31, 2023,
respectively. There were no associated related party balances as of
March 31, 2023.
8
Including changes in related party
balances of $0.8 million and $2.7 million for the three months
ended March 31, 2024 and three months ended December 31, 2023,
respectively. There were no associated related party balances as of
March 31, 2023.
9
Including changes in related party
balances of $0.2 million and $4.6 million for the three months
ended March 31, 2024 and three months ended December 31, 2023,
respectively. There were no associated related party balances as of
March 31, 2023.
Reconciliation of GAAP to
Non-GAAP Financial Measures
(unaudited)
(in thousands, except
percentages)
Q1’24
Q4’23
Q1’23
GAAP revenue
235,298
356,917
275,191
GAAP cost of sales
197,222
264,526
220,924
GAAP gross profit
38,076
92,391
54,267
Non-GAAP adjustments:
Stock-based compensation expense
3,814
2,693
4,161
Restructuring
(663
)
2,695
—
Non-GAAP gross income
41,226
97,779
58,428
GAAP gross margin %
16.2
%
25.9
%
19.7
%
Non-GAAP adjustments
1.3
%
1.5
%
1.5
%
Non-GAAP gross margin %
17.5
%
27.4
%
21.2
%
Q1’24
Q4’23
Q1’23
GAAP (loss) income from
operations
(49,017
)
12,939
(63,681
)
Non-GAAP adjustments:
Stock-based compensation expense
18,860
7,500
29,553
Restructuring
(616
)
6,940
—
Other
37
34
37
Non-GAAP (loss) income from
operations
(30,736
)
27,411
(34,092
)
GAAP operating margin %
(20.8
)%
3.6
%
(23.1
)%
Non-GAAP adjustments
7.8
%
4.1
%
10.8
%
Non-GAAP operating margin %
(13.1
)%
7.7
%
(12.4
)%
Reconciliation of GAAP Net (Loss)
Income to non-GAAP Net (Loss) Income and Computation of non-GAAP
Net (Loss) Income per Share (EPS)
(unaudited)
(in thousands, except share
data)
Q1’24
Q4’23
Q1’23
Net (loss) income to Common
Stockholders
(57,524
)
4,511
(71,567
)
Non-GAAP adjustments:
Add back: gain (loss) for non-controlling
interests
981
(394
)
(3,350
)
(Gain) loss on derivative liabilities
(158
)
428
(117
)
Restructuring
(616
)
6,940
—
Stock-based compensation expense
18,860
7,500
29,553
Other
25
437
37
Adjusted Net (Loss) Income
(38,432
)
19,421
(45,445
)
Adjusted net (loss) income per share
(EPS), Basic
$
(0.17
)
$
0.09
$
(0.22
)
Adjusted net (loss) income per share
(EPS), Diluted
$
(0.17
)
$
0.07
$
(0.22
)
Weighted average shares outstanding
attributable to common stockholders, Basic
225,587
224,204
206,724
Weighted-average shares outstanding
attributable to common stockholders, Diluted
225,587
274,366
206,724
Reconciliation of GAAP Net (Loss)
Income to Adjusted EBITDA
(unaudited)
(in thousands)
Q1’24
Q4’23
Q1’23
Net (loss) income to Common
Stockholders
(57,524
)
4,511
(71,567
)
Add back: gain (loss) for non-controlling
interests
981
(394
)
(3,350
)
(Gain) loss on derivative liabilities
(158
)
428
(117
)
Restructuring
(616
)
6,940
—
Stock-based compensation expense
18,860
7,500
29,553
Other
25
437
37
Adjusted Net (Loss) Income
(38,432
)
19,421
(45,445
)
Depreciation & amortization
12,518
12,349
18,150
Income tax (benefit) provision
(501
)
811
259
Interest expense, Other expense, net
8,197
7,179
11,094
Adjusted EBITDA
(18,218
)
39,760
(15,942
)
Use of non-GAAP financial measures
To supplement Bloom Energy consolidated financial statement
information presented on a GAAP basis, Bloom Energy provides
financial measures including non-GAAP gross profit (loss), non-GAAP
gross margin, non-GAAP operating income (loss) (non-GAAP earnings
from operations), non-GAAP operating income (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 income.
These non-GAAP financial measures are not computed in accordance
with, or as an alternative to, GAAP in the United States.
- The GAAP measure most directly comparable to non-GAAP gross
profit (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
income (loss) (non-GAAP earnings from operations) is operating
income (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 and restructuring (expense reversals) charges. 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, (gain) loss on derivatives liabilities,
restructuring (expense reversals) charges, amortization of acquired
intangible assets, and other (gain) loss. Adjusted EBITDA is
defined as net income (loss) before interest expense, income tax
(benefit) provision, depreciation and amortization expense, charges
relating to stock-based compensation expense, gain (loss) for
non-controlling interest, (gain) loss on derivatives liabilities,
restructuring (expense reversals) charges, amortization of acquired
intangible assets, and other (gain) loss. 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.
- (Gain) loss on derivatives liabilities represents non-cash
adjustments to the fair value of the embedded derivatives.
- Restructuring charges and reversals, if any, are represented by
severance expense, facility closure costs, and others.
- Other represents amortization of acquired intangible assets and
gain (loss) incurred upon closure of one of our managed services
deals in the fourth quarter of fiscal 2023.
- 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) Income to
non-GAAP Net (Loss) Income and Computation of non-GAAP Net (Loss)
Income per Share (EPS),” and “Reconciliation of GAAP Net (Loss)
Income 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 income (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 income (non-GAAP earnings
from operations), non-GAAP operating income 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 income (loss) (non-GAAP earnings from
operations), non-GAAP operating income (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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240509653383/en/
Investor Relations: Ed Vallejo Bloom Energy
investor@bloomenergy.com
Media: Bloom Energy press@bloomenergy.com
Bloom Energy (NYSE:BE)
Historical Stock Chart
Von Aug 2024 bis Sep 2024
Bloom Energy (NYSE:BE)
Historical Stock Chart
Von Sep 2023 bis Sep 2024