Bloom Energy Reports Third Quarter 2024 Financial Results
Reiterating 2024 Financial Guidance
Announcing World’s Largest Fuel Cell Installation
Third Quarter Highlights
-
Revenue of
$330.4 million in the third quarter of 2024, a decrease of 17.5% year-over-year. - Gross margin of 23.8% in the third quarter of 2024, an increase of 25.1 percentage points year-over-year; Non-GAAP gross margin of 25.2% in the third quarter of 2024, a decrease of 6.4 percentage points year-over-year.
-
Operating loss of
$9.7 million in the third quarter of 2024, an improvement of$94.1 million year-over-year; Non-GAAP operating profit of$8.1 million in the third quarter of 2024, a decrease of$43.7 million year-over-year. - Announced what is expected to be the world’s largest single site fuel cell installation, supporting partner SK Eternix, to begin commercial operations in 2025.
- Announced follow on orders from Quanta, expected to create the world’s largest fuel cell islanded microgrid site.
“Today we are announcing an 80 MW power project using
Summary of Key Financial Metrics
Summary of GAAP Profit and Loss Statements
( |
Q3’24 |
Q2’24 |
Q3’23 |
||||||
Revenue |
|
330,399 |
|
|
335,767 |
|
|
400,268 |
|
Cost of Revenue |
|
251,665 |
|
|
267,245 |
|
|
405,482 |
|
Gross Profit (Loss) |
|
78,734 |
|
|
68,522 |
|
|
(5,214 |
) |
Gross Margin |
|
23.8 |
% |
|
20.4 |
% |
|
(1.3 |
)% |
Operating Expenses |
|
88,385 |
|
|
91,650 |
|
|
98,494 |
|
Operating Loss |
|
(9,651 |
) |
|
(23,128 |
) |
|
(103,708 |
) |
Operating Margin |
|
(2.9 |
)% |
|
(6.9 |
)% |
|
(25.9 |
)% |
Non-operating Expenses |
|
5,060 |
|
|
38,659 |
|
|
65,291 |
|
Net Loss to Common Stockholders |
|
(14,711 |
) |
|
(61,787 |
) |
|
(168,999 |
) |
GAAP EPS, Basic and Diluted |
$ |
(0.06 |
) |
$ |
(0.27 |
) |
$ |
(0.80 |
) |
Summary of Non-GAAP Financial Information 1
( |
Q3’24 |
Q2’24 |
Q3’23 |
||||||
Revenue |
|
330,399 |
|
|
335,767 |
|
|
400,268 |
|
Cost of Revenue |
|
247,066 |
|
|
262,611 |
|
|
273,888 |
|
Gross Profit |
|
83,332 |
|
|
73,156 |
|
|
126,380 |
|
Gross Margin |
|
25.2 |
% |
|
21.8 |
% |
|
31.6 |
% |
Operating Expenses |
|
75,229 |
|
|
76,344 |
|
|
74,580 |
|
Operating Profit (Loss) |
|
8,104 |
|
|
(3,188 |
) |
|
51,800 |
|
Operating Margin |
|
2.5 |
% |
|
(0.9 |
)% |
|
12.9 |
% |
Adjusted EBITDA |
|
21,344 |
|
|
10,219 |
|
|
66,415 |
|
Non-GAAP EPS, Basic |
$ |
(0.01 |
) |
$ |
(0.06 |
) |
$ |
0.20 |
|
Non-GAAP EPS, Diluted |
$ |
(0.01 |
) |
$ |
(0.06 |
) |
$ |
0.15 |
|
- 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: |
~28% |
|
• Non-GAAP Operating Income: |
|
Conference Call Details
Bloom will host a conference call today,
Use of Non-GAAP Financial Measures
This press release includes certain non-GAAP financial measures as defined by the rules and regulations of the
About
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 and hydrogen 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 Electrolyzer 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 Investor Relations section of Bloom’s website at investor.bloomenergy.com contains a significant amount of information about
Condensed Consolidated Balance Sheets (unaudited) (in thousands, except share data) |
||||||||
|
|
|
|
|
||||
|
|
|
2024 |
|
|
|
2023 |
|
Assets |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents1 |
|
$ |
495,677 |
|
|
$ |
664,593 |
|
Restricted cash1 |
|
|
22,548 |
|
|
|
46,821 |
|
Accounts receivable less allowance for credit losses of |
|
|
590,794 |
|
|
|
340,740 |
|
Contract assets3 |
|
|
121,074 |
|
|
|
41,366 |
|
Inventories1 |
|
|
584,484 |
|
|
|
502,515 |
|
Deferred cost of revenue4 |
|
|
40,648 |
|
|
|
45,984 |
|
Prepaid expenses and other current assets1, 5 |
|
|
47,663 |
|
|
|
51,148 |
|
Total current assets |
|
|
1,902,888 |
|
|
|
1,693,167 |
|
Property, plant and equipment, net1 |
|
|
484,505 |
|
|
|
493,352 |
|
Operating lease right-of-use assets1, 6 |
|
|
133,143 |
|
|
|
139,732 |
|
Restricted cash1 |
|
|
30,926 |
|
|
|
33,764 |
|
Deferred cost of revenue |
|
|
3,539 |
|
|
|
3,454 |
|
Other long-term assets1, 7 |
|
|
49,516 |
|
|
|
50,208 |
|
Total assets |
|
$ |
2,604,517 |
|
|
$ |
2,413,677 |
|
Liabilities and stockholders’ equity |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable1, 8 |
|
$ |
124,272 |
|
|
$ |
132,078 |
|
Accrued warranty9 |
|
|
15,009 |
|
|
|
19,326 |
|
Accrued expenses and other current liabilities1, 10 |
|
|
130,331 |
|
|
|
130,879 |
|
Deferred revenue and customer deposits1, 11 |
|
|
142,056 |
|
|
|
128,922 |
|
Operating lease liabilities1, 12 |
|
|
20,195 |
|
|
|
20,245 |
|
Financing obligations |
|
|
20,921 |
|
|
|
38,972 |
|
Recourse debt |
|
|
114,139 |
|
|
|
— |
|
Total current liabilities |
|
|
566,923 |
|
|
|
470,422 |
|
Deferred revenue and customer deposits1, 13 |
|
|
34,796 |
|
|
|
19,140 |
|
Operating lease liabilities1, 14 |
|
|
135,159 |
|
|
|
141,939 |
|
Financing obligations |
|
|
390,539 |
|
|
|
405,824 |
|
Recourse debt |
|
|
1,008,734 |
|
|
|
842,006 |
|
Non-recourse debt1, 15 |
|
|
4,563 |
|
|
|
4,627 |
|
Other long-term liabilities |
|
|
8,811 |
|
|
|
9,049 |
|
Total liabilities |
|
$ |
2,149,525 |
|
|
$ |
1,893,007 |
|
Commitments and contingencies |
|
|
|
|
||||
Stockholders’ equity: |
|
|
|
|
||||
Common stock: |
|
|
23 |
|
|
|
21 |
|
Additional paid-in capital |
|
|
4,435,152 |
|
|
|
4,370,343 |
|
Accumulated other comprehensive loss |
|
|
(1,818 |
) |
|
|
(1,687 |
) |
Accumulated deficit |
|
|
(4,002,413 |
) |
|
|
(3,866,599 |
) |
Total equity attributable to common stockholders |
|
|
430,944 |
|
|
|
502,078 |
|
Noncontrolling interest |
|
|
24,048 |
|
|
|
18,592 |
|
Total stockholders’ equity |
|
$ |
454,992 |
|
|
$ |
520,670 |
|
Total liabilities and stockholders’ equity |
|
$ |
2,604,517 |
|
|
$ |
2,413,677 |
|
1 We have a variable interest entity related to a joint venture in the |
2 Including amounts from related parties of |
3 Including amounts from related parties of |
4 Including amounts from related parties of |
5 Including amounts from related parties of |
6 Including amounts from related parties of |
7 Including amounts from related parties of |
8 Including amounts from related parties of |
9 Including amounts from related parties of |
10 Including amounts from related parties of |
11 Including amounts from related parties of |
12 Including amounts from related parties of |
13 Including amounts from related parties of |
14 Including amounts from related parties of |
15 Including amounts from related parties of |
Condensed Consolidated Statements of Operations (unaudited) (in thousands, except per share data) |
||||||||||||
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Three Months Ended
|
||||||
|
|
|
|
|
|
|
||||||
Revenue: |
|
|
|
|
|
|
||||||
Product |
|
$ |
233,770 |
|
|
$ |
226,308 |
|
|
$ |
304,976 |
|
Installation |
|
|
32,052 |
|
|
|
42,733 |
|
|
|
21,916 |
|
Service |
|
|
50,761 |
|
|
|
52,531 |
|
|
|
47,535 |
|
Electricity |
|
|
13,816 |
|
|
|
14,195 |
|
|
|
25,841 |
|
Total revenue1 |
|
|
330,399 |
|
|
|
335,767 |
|
|
|
400,268 |
|
Cost of revenue: |
|
|
|
|
|
|
||||||
Product |
|
|
155,124 |
|
|
|
161,332 |
|
|
|
182,832 |
|
Installation |
|
|
35,688 |
|
|
|
44,298 |
|
|
|
25,902 |
|
Service |
|
|
51,363 |
|
|
|
52,401 |
|
|
|
57,370 |
|
Electricity |
|
|
9,490 |
|
|
|
9,214 |
|
|
|
139,378 |
|
Total cost of revenue2 |
|
|
251,665 |
|
|
|
267,245 |
|
|
|
405,482 |
|
Gross profit (loss) |
|
|
78,734 |
|
|
|
68,522 |
|
|
|
(5,214 |
) |
Operating expenses: |
|
|
|
|
|
|
||||||
Research and development |
|
|
36,315 |
|
|
|
37,364 |
|
|
|
35,126 |
|
Sales and marketing |
|
|
14,667 |
|
|
|
17,901 |
|
|
|
20,002 |
|
General and administrative3 |
|
|
37,403 |
|
|
|
36,385 |
|
|
|
43,366 |
|
Total operating expenses |
|
|
88,385 |
|
|
|
91,650 |
|
|
|
98,494 |
|
Loss from operations |
|
|
(9,651 |
) |
|
|
(23,128 |
) |
|
|
(103,708 |
) |
Interest income |
|
|
6,456 |
|
|
|
6,430 |
|
|
|
7,419 |
|
Interest expense4 |
|
|
(16,763 |
) |
|
|
(15,376 |
) |
|
|
(68,037 |
) |
Other income (expense), net |
|
|
5,821 |
|
|
|
(985 |
) |
|
|
(1,577 |
) |
Loss on extinguishment of debt |
|
|
— |
|
|
|
(27,182 |
) |
|
|
(1,415 |
) |
Loss on revaluation of embedded derivatives |
|
|
(386 |
) |
|
|
(88 |
) |
|
|
(114 |
) |
Loss before income taxes |
|
|
(14,523 |
) |
|
|
(60,329 |
) |
|
|
(167,432 |
) |
Income tax provision |
|
|
109 |
|
|
|
856 |
|
|
|
646 |
|
Net loss |
|
|
(14,632 |
) |
|
|
(61,185 |
) |
|
|
(168,078 |
) |
Less: Net income attributable to noncontrolling interest |
|
|
79 |
|
|
|
602 |
|
|
|
921 |
|
Net loss attributable to common stockholders |
|
$ |
(14,711 |
) |
|
$ |
(61,787 |
) |
|
$ |
(168,999 |
) |
Net loss per share available to common stockholders, basic and diluted |
|
$ |
(0.06 |
) |
|
$ |
(0.27 |
) |
|
$ |
(0.80 |
) |
Weighted average shares used to compute net loss per share available to common stockholders, basic and diluted |
|
|
227,957 |
|
|
|
227,167 |
|
|
|
210,930 |
|
1 Including related party revenue of |
2 Including related party cost of revenue of |
3 Including related party general and administrative expenses of |
4 Including related party interest expense of |
Condensed Consolidated Statement of Cash Flows (unaudited) (in thousands) |
||||||||||||
|
|
|
|
|
|
|
||||||
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Three Months Ended
|
||||||
Cash flows from operating activities: |
|
|
|
|
|
|
||||||
Net loss |
|
$ |
(14,632 |
) |
|
$ |
(61,185 |
) |
|
$ |
(168,078 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
|
||||||
Depreciation and amortization |
|
|
13,240 |
|
|
|
13,407 |
|
|
|
14,615 |
|
Non-cash lease expense |
|
|
9,175 |
|
|
|
8,980 |
|
|
|
8,356 |
|
Gain on disposal of property, plant and equipment |
|
|
(17 |
) |
|
|
(13 |
) |
|
|
(19 |
) |
Revaluation of derivative contracts |
|
|
386 |
|
|
|
88 |
|
|
|
114 |
|
Impairment of assets |
|
|
— |
|
|
|
— |
|
|
|
130,111 |
|
Derecognition of loan commitment asset related to SK ecoplant Second Tranche Closing |
|
|
— |
|
|
|
— |
|
|
|
52,792 |
|
Stock-based compensation expense |
|
|
17,689 |
|
|
|
19,191 |
|
|
|
21,315 |
|
Amortization of debt issuance costs |
|
|
1,862 |
|
|
|
1,603 |
|
|
|
1,514 |
|
Gain from terminations of failed sale-and-leaseback transactions |
|
|
(5,003 |
) |
|
|
— |
|
|
|
— |
|
Loss on extinguishment of debt |
|
|
— |
|
|
|
27,182 |
|
|
|
1,415 |
|
Unrealized foreign currency exchange (gain) loss |
|
|
(1,496 |
) |
|
|
418 |
|
|
|
1,517 |
|
Other |
|
|
105 |
|
|
|
(50 |
) |
|
|
— |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
||||||
Accounts receivable1 |
|
|
(67,064 |
) |
|
|
(175,657 |
) |
|
|
16,100 |
|
Contract assets2 |
|
|
(30,687 |
) |
|
|
(56,599 |
) |
|
|
(108,692 |
) |
Inventories |
|
|
(64,141 |
) |
|
|
5,862 |
|
|
|
(8,969 |
) |
Deferred cost of revenue3 |
|
|
7,796 |
|
|
|
7,592 |
|
|
|
(8,370 |
) |
Prepaid expenses and other assets4 |
|
|
(8,716 |
) |
|
|
7,537 |
|
|
|
(22,807 |
) |
Other long-term assets5 |
|
|
4,646 |
|
|
|
(1,800 |
) |
|
|
10,219 |
|
Operating lease right-of-use assets and operating lease liabilities |
|
|
(9,325 |
) |
|
|
(9,216 |
) |
|
|
(8,432 |
) |
Financing lease liabilities |
|
|
173 |
|
|
|
223 |
|
|
|
171 |
|
Accounts payable |
|
|
23,882 |
|
|
|
8,206 |
|
|
|
(41,589 |
) |
Accrued warranty6 |
|
|
2,621 |
|
|
|
3,191 |
|
|
|
1,631 |
|
Accrued expenses and other current liabilities7 |
|
|
13,819 |
|
|
|
19,789 |
|
|
|
4,782 |
|
Deferred revenue and customer deposits8 |
|
|
36,231 |
|
|
|
6,013 |
|
|
|
(30,275 |
) |
Other long-term liabilities |
|
|
(13 |
) |
|
|
(257 |
) |
|
|
(590 |
) |
Net cash used in operating activities |
|
|
(69,469 |
) |
|
|
(175,495 |
) |
|
|
(133,169 |
) |
Cash flows from investing activities: |
|
|
|
|
|
|
||||||
Purchase of property, plant and equipment |
|
|
(14,292 |
) |
|
|
(12,019 |
) |
|
|
(21,357 |
) |
Proceeds from sale of property, plant and equipment |
|
|
14 |
|
|
|
15 |
|
|
|
— |
|
Net cash used in investing activities |
|
|
(14,278 |
) |
|
|
(12,004 |
) |
|
|
(21,357 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
||||||
Proceeds from issuance of debt9 |
|
|
— |
|
|
|
402,500 |
|
|
|
— |
|
Payment of debt issuance costs |
|
|
(438 |
) |
|
|
(12,323 |
) |
|
|
(3,711 |
) |
Repayment of debt |
|
|
— |
|
|
|
(140,990 |
) |
|
|
(118,538 |
) |
Proceeds from financing obligations |
|
|
464 |
|
|
|
— |
|
|
|
— |
|
Repayment of financing obligations |
|
|
(9,767 |
) |
|
|
(5,041 |
) |
|
|
(4,747 |
) |
Buyout of noncontrolling interest |
|
|
— |
|
|
|
— |
|
|
|
(6,864 |
) |
Distributions and payments to noncontrolling interest |
|
|
— |
|
|
|
— |
|
|
|
(2,265 |
) |
Proceeds from issuance of common stock |
|
|
4,141 |
|
|
|
159 |
|
|
|
6,745 |
|
Dividend paid |
|
|
— |
|
|
|
(1,468 |
) |
|
|
— |
|
Other |
|
|
— |
|
|
|
— |
|
|
|
(285 |
) |
Net cash (used in) provided by financing activities |
|
|
(5,600 |
) |
|
|
242,837 |
|
|
|
(129,665 |
) |
Effect of exchange rate changes on cash, cash equivalent, and restricted cash |
|
|
694 |
|
|
|
(256 |
) |
|
|
(657 |
) |
Net (decrease) increase in cash, cash equivalents, and restricted cash |
|
|
(88,653 |
) |
|
|
55,082 |
|
|
|
(284,848 |
) |
Cash, cash equivalents, and restricted cash: |
|
|
|
|
|
|
||||||
Beginning of period |
|
|
637,804 |
|
|
|
582,722 |
|
|
|
922,544 |
|
End of period |
|
$ |
549,151 |
|
|
$ |
637,804 |
|
|
$ |
637,696 |
|
1 Including changes in related party balances of |
2 Including changes in related party balances of |
3 Including changes in related party balances of |
4 Including changes in related party balances of |
5 Including changes in related party balances of |
6 Including changes in related party balances of |
7 Including changes in related party balances of |
8 Including changes in related party balances of |
9 Including changes in related party balances of |
Reconciliation of GAAP to Non-GAAP Financial Measures (unaudited) (in thousands, except percentages) |
||||||
|
Q3’24 |
Q2’24 |
Q3’23 |
|||
GAAP revenue |
330,399 |
|
335,767 |
|
400,268 |
|
GAAP cost of sales |
251,665 |
|
267,245 |
|
405,482 |
|
GAAP gross profit (loss) |
78,734 |
|
68,522 |
|
(5,214 |
) |
Non-GAAP adjustments: |
|
|
|
|||
Stock-based compensation expense |
3,778 |
|
4,110 |
|
5,581 |
|
Restructuring |
90 |
|
116 |
|
725 |
|
Impairment of assets |
— |
|
— |
|
123,700 |
|
Other |
731 |
|
408 |
|
1,588 |
|
Non-GAAP gross profit |
83,332 |
|
73,156 |
|
126,380 |
|
|
|
|
|
|||
GAAP gross margin % |
23.8 |
% |
20.4 |
% |
(1.3 |
)% |
Non-GAAP adjustments |
1.4 |
% |
1.4 |
% |
32.9 |
% |
Non-GAAP gross margin % |
25.2 |
% |
21.8 |
% |
31.6 |
% |
|
Q3’24 |
Q2’24 |
Q3’23 |
|||
GAAP loss from operations |
(9,651 |
) |
(23,128 |
) |
(103,708 |
) |
Non-GAAP adjustments: |
|
|
|
|||
Stock-based compensation expense |
17,057 |
|
19,423 |
|
21,564 |
|
Restructuring |
(70 |
) |
73 |
|
2,226 |
|
Impairment of assets |
— |
|
— |
|
130,088 |
|
Other |
768 |
|
445 |
|
1,630 |
|
Non-GAAP income (loss) from operations |
8,104 |
|
(3,188 |
) |
51,800 |
|
|
|
|
|
|||
GAAP operating margin % |
(2.9 |
)% |
(6.9 |
)% |
(25.9 |
)% |
Non-GAAP adjustments |
5.4 |
% |
5.9 |
% |
38.8 |
% |
Non-GAAP operating margin % |
2.5 |
% |
(0.9 |
)% |
12.9 |
% |
Reconciliation of GAAP Net Loss to non-GAAP Net (Loss) Income and Computation of non-GAAP Net (Loss) Earnings per Share (EPS) (unaudited) (in thousands, except share data) |
|||||||||
|
Q3’24 |
Q2’24 |
Q3’23 |
||||||
Net loss to Common Stockholders |
|
(14,711 |
) |
|
(61,787 |
) |
|
(168,999 |
) |
Non-GAAP adjustments: |
|
|
|
||||||
Add back: gain for non-controlling interests |
|
79 |
|
|
602 |
|
|
921 |
|
Stock-based compensation expense |
|
17,057 |
|
|
19,423 |
|
|
21,564 |
|
Gain on failed sale-and-leaseback transactions |
|
(4,991 |
) |
|
— |
|
|
— |
|
Loss on derivative liabilities |
|
386 |
|
|
88 |
|
|
114 |
|
Impairment of assets |
|
— |
|
|
— |
|
|
130,088 |
|
Interest expense on SK loan commitment |
|
— |
|
|
— |
|
|
52,792 |
|
Loss on extinguishment of debt |
|
— |
|
|
27,182 |
|
|
1,415 |
|
Restructuring |
|
(70 |
) |
|
73 |
|
|
2,226 |
|
Other |
|
768 |
|
|
445 |
|
|
1,630 |
|
Adjusted Net (Loss) Profit |
|
(1,481 |
) |
|
(13,974 |
) |
|
41,751 |
|
|
|
|
|
||||||
Adjusted net (loss) earnings per share (EPS), Basic |
$ |
(0.01 |
) |
$ |
(0.06 |
) |
$ |
0.20 |
|
Adjusted net (loss) earnings per share (EPS), Diluted |
$ |
(0.01 |
) |
$ |
(0.06 |
) |
$ |
0.15 |
|
Weighted average shares outstanding attributable to common stockholders, Basic |
|
227,957 |
|
|
227,167 |
|
|
210,930 |
|
Weighted-average shares outstanding attributable to common stockholders, Diluted |
|
227,957 |
|
|
227,167 |
|
|
274,337 |
|
Reconciliation of GAAP Net Loss to Adjusted EBITDA (unaudited) (in thousands) |
||||||
|
Q3’24 |
Q2’24 |
Q3’23 |
|||
Net loss to Common Stockholders |
(14,711 |
) |
(61,787 |
) |
(168,999 |
) |
Add back: gain for non-controlling interests |
79 |
|
602 |
|
921 |
|
Stock-based compensation expense |
17,057 |
|
19,423 |
|
21,564 |
|
Gain on failed sale-and-leaseback transactions |
(4,991 |
) |
— |
|
— |
|
Loss on derivative liabilities |
386 |
|
88 |
|
114 |
|
Impairment of assets |
— |
|
— |
|
130,088 |
|
Interest expense on SK loan commitment |
— |
|
— |
|
52,792 |
|
Loss on extinguishment of debt |
— |
|
27,182 |
|
1,415 |
|
Restructuring |
(70 |
) |
73 |
|
2,226 |
|
Other |
768 |
|
445 |
|
1,630 |
|
Adjusted Net (Loss) Profit |
(1,481 |
) |
(13,974 |
) |
41,751 |
|
|
|
|
|
|||
Depreciation & amortization |
13,240 |
|
13,407 |
|
14,615 |
|
Income tax provision |
109 |
|
856 |
|
646 |
|
Interest expense, Other income (expense), net |
9,476 |
|
9,930 |
|
9,403 |
|
Adjusted EBITDA |
21,344 |
|
10,219 |
|
66,415 |
|
Use of non-GAAP financial measures
To supplement
These non-GAAP financial measures are not computed in accordance with, or as an alternative to, GAAP in
- The GAAP measure most directly comparable to non-GAAP gross profit 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) 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) profit is net loss.
- The GAAP measure most directly comparable to non-GAAP diluted (loss) earnings 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
Non-GAAP gross profit and non-GAAP gross margin are defined to exclude charges relating to stock-based compensation expense, restructuring (expense reversals) charges, impairment of assets, and other charges. Non-GAAP net (loss) profit and non-GAAP diluted (loss) earnings per share consist of net loss or diluted net loss per share excluding gain for non-controlling interest, charges relating to stock-based compensation expense, gain on failed sale-and-leaseback transactions, loss on derivatives liabilities, impairment of assets, interest expense on SK loan commitment, loss on extinguishment of debt, restructuring (expense reversals) charges, and other charges. Adjusted EBITDA is defined as net loss before interest expense, income tax provision, depreciation and amortization expense, gain for non-controlling interest, charges relating to stock-based compensation expense, gain on failed sale-and-leaseback transactions, loss on derivatives liabilities, impairment of assets, interest expense on SK loan commitment, loss on extinguishment of debt, restructuring (expense reversals) charges, and other charges.
-
Gain for non-controlling interest represents allocation to the non-controlling interests under the hypothetical liquidation at book value (HLBV) method and is associated with
Bloom Energy legacy PPA entity, PPA V, which was sold in the third quarter of fiscal year 2023, and the joint venture in theRepublic of Korea . -
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 ofBloom Energy current operating performance and comparisons toBloom Energy operating performance in other periods. -
Gain on failed sale-and-leaseback transactions of
$5.0 million as a result of termination of four Managed Services sites. - Loss on derivatives liabilities represents non-cash adjustments to the fair value of the embedded derivatives.
-
Impairment of assets represents non-cash impairment charge on decommissioned server units upon repowering of
$123.7 million and non-cash impairment charge on non-recoverable production insurance of$6.4 million , both as a result of PPA V repowering, which commenced in the third quarter of fiscal year 2023. - 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 in the third quarter of fiscal year 2023.
-
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 dueAugust 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 extinguishment of debt for the three months endedSeptember 30, 2023 , of$1.4 million was recognized as a result of the repayment onAugust 24, 2023 , of 3.04% Senior Secured Notes dueJune 2031 as part of the PPA V repowering, and consists in its entirety of derecognition of debt issuance costs. - Restructuring charges and reversals, if any, are represented by severance expense, facility closure costs, and others.
-
Other represents (1) PPA V sales property tax of
$1.6 million related to PPA V repowering of old server units, which commenced in the third quarter of fiscal year 2023; (2) site termination costs of$0.4 million and$0.7 million for the three months endedJune 30, 2024 , and the three months endedSeptember 30, 2024 , respectively; and (3) immaterial amounts of quarterly amortization of acquired intangible assets. - Adjusted EBITDA is defined as Adjusted Net (Loss) Profit before depreciation and amortization expense, provision for income tax provision, interest expense, other income (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 Net Loss to non-GAAP Net (Loss) Income and Computation of non-GAAP Net (Loss) Earnings 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
- 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 income (loss), non-GAAP operating margin, non-GAAP net (loss) profit, and non-GAAP diluted (loss) earnings per share can have a material impact on the equivalent GAAP earnings measure.
- Gain for non-controlling interest and loss on derivatives liabilities, though not directly affecting Bloom Energy’s cash position, represent the gain (loss) in value of certain assets and liabilities. The expense associated with this gain (loss) in value is excluded from non-GAAP net (loss) profit, and non-GAAP diluted (loss) earnings 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 loss (non-GAAP earnings from operations), non-GAAP operating margin, non-GAAP net profit (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
Usefulness of non-GAAP financial measures to investors
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