Bloom Energy Corporation (NYSE: BE) today announced financial
results for its second quarter ended June 30, 2022.
Second Quarter Highlights
- Record second quarter revenue of $243.2 million in 2022 on 471
acceptances.
- Deployed first fuel cells in the European Union with Ferrari
and announced first USA electrolyzer order with LSB
Industries.
- Commenced operations in our new Fremont facility which is
expected to add a gigawatt of capacity by 2023.
- Reaffirming our 2022 financial outlook.
Commenting on second quarter results, KR Sridhar, founder,
chairman, and CEO of Bloom Energy said, “Bloom Energy is continuing
to innovate, execute and deliver value in a multitude of energy
transformation market segments. In this ever-changing energy
marketplace and policy environment, the flexibility of our platform
is a unique advantage and strength that sets Bloom Energy apart in
the energy industry.”
Greg Cameron, executive vice president and CFO of Bloom Energy
added, “We had a very strong operating quarter delivering record Q2
revenue, expanding our margins and building the manufacturing
capacity to support our growth. We remain confident in our business
and are reaffirming our 2022 financial guidance. With our solid
record of accomplishments, we believe the company is at an
inflection point to build upon our mature technology platform and
achieve our robust growth roadmap given.”
Summary of Key Financial Metrics
Preliminary Summary GAAP Profit and
Loss Statements
($000)
Q222
Q122
Q221
Revenue
243,236
201,039
228,470
Cost of Revenue
245,206
173,102
191,126
Gross Profit (loss)
(1,970)
27,937
37,344
Gross Margin %
(0.8%)
13.9%
16.3%
Operating Expenses
100,203
93,596
80,055
Operating Loss
(102,173)
(65,659)
(42,711)
Operating Margin %
(42.0%)
(32.7%)
(18.7%)
Non-operating Expenses1
16,627
12,700
11,152
Net Loss
(118,800)
(78,359)
(53,863)
EPS
$ (0.67)
$ (0.44)
$ (0.31)
1. Includes non-operating expenses, tax provision,
noncontrolling interest, and redeemable noncontrolling interest
Preliminary Summary Non-GAAP Financial
Information1
($000)
Q222
Q122
Q221
Revenue
243,236
201,039
228,470
Cost of Revenue
195,639
169,242
187,322
Gross Profit
47,597
31,797
41,148
Gross Margin %
19.6%
15.8%
18.0%
Operating Expenses
72,223
71,148
64,726
Operating loss
(24,626)
(39,351)
(23,578)
Operating Margin %
(10.1%)
(19.6%)
(10.3%)
Adjusted EBITDA
(8,314)
(24,967)
(10,947)
EPS
$ (0.20)
$ (0.32)
$ (0.23)
- A detailed reconciliation of GAAP to Non-GAAP financial
measures is provided at the end of this press release
Outlook
- Bloom reaffirms outlook for the full-year 2022:
• Revenue:
$1.1 - $1.15 billion
• Product & Service Revenue:
$1 billion
• Non-GAAP Gross Margin:
~24%
• Non-GAAP Operating Margin:
~1%
• Cash Flow from Operations:
Positive
Acceptances
We use acceptances as a key operating metric to measure the
volume of our completed Energy Server installation activity from
period to period. Acceptance typically occurs upon transfer of
control to our customers, which depending on the contract terms is
when the system is shipped and delivered to our customers, when the
system is shipped and delivered and is physically ready for startup
and commissioning, or when the system is shipped and delivered and
is turned on and producing power.
Conference Call Details
Bloom will host a conference call today, August 9, 2022, at 2:00
p.m. Pacific Time (5:00 p.m. Eastern Time) to discuss its financial
results. To participate in the live call, analysts and investors
may call +1 (844) 200-6205 and enter the passcode: 346737. Those
calling from outside the United States may dial +1 (929) 526-1599
and enter the same passcode: 346737. A simultaneous live webcast
will also be available under the Investor Relations section on our
website at https://investor.bloomenergy.com/. Following the
webcast, an archived version will be available on Bloom’s website
for one year. A telephonic replay of the conference call will be
available for one week following the call, by dialing +1 (866)
813-9403 or + 44 204-525-0658 entering passcode 050636.
Use of Non-GAAP Financial Measures
This release includes certain non-GAAP financial measures as
defined by the rules and regulations of the Securities and Exchange
Commission (SEC). These non-GAAP financial measures are in addition
to, and not a substitute for or superior to, measures of financial
performance prepared in accordance with U.S. GAAP. There are a
number of limitations related to the use of these non-GAAP
financial measures versus their nearest GAAP equivalents. For
example, other companies may calculate non-GAAP financial measures
differently or may use other measures to evaluate their
performance, all of which could reduce the usefulness of our
non-GAAP financial measures as tools for comparison. Bloom urges
you to review the reconciliations of its non-GAAP financial
measures to the most directly comparable U.S. GAAP financial
measures set forth in this press release, and not to rely on any
single financial measure to evaluate our business. With respect to
Bloom’s expectations regarding its 2022 Outlook, Bloom is not able
to provide a quantitative reconciliation of non-GAAP gross margin
and non-GAAP operating margin measures to the corresponding GAAP
measures without unreasonable efforts.
About Bloom Energy
Bloom Energy empowers businesses and communities to responsibly
take charge of their energy. The company’s leading solid oxide
platform for distributed generation of electricity and hydrogen is
changing the future of energy. Fortune 100 companies around the
world turn to Bloom Energy as a trusted partner to deliver lower
carbon energy today and a net-zero future. For more information,
visit www.bloomenergy.com.
Forward-Looking Statements
This press release contains certain forward-looking statements,
which are subject to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements generally relate to future events or our future
financial or operating performance. In some cases, you can identify
forward-looking statements because they contain words such as
“anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,”
“may,” “should,” “will” and “would” or the negative of these words
or similar terms or expressions that concern Bloom’s expectations,
strategy, priorities, plans or intentions. These forward-looking
statements include, but are not limited to, Bloom’s expectations
regarding revenue growth, margin expansion and its innovative
solutions; Bloom’s expectations regarding its growth plans,
including those regarding output from the Fremont facility, and
Bloom’s financial outlook for 2022. Readers are cautioned that
these forward-looking statements are only predictions and may
differ materially from actual future events or results due to a
variety of factors including, but not limited to, Bloom’s limited
operating history; the emerging nature of the distributed
generation market and rapidly evolving market trends; the
significant losses Bloom has incurred in the past; the significant
upfront costs of Bloom’s Energy Servers and Bloom’s ability to
secure financing for its products; Bloom’s ability to drive cost
reductions and to successfully mitigate against potential price
increases; Bloom’s ability to service its existing debt
obligations; Bloom’s ability to be successful in new markets; the
ability of the Bloom Energy Server to operate on the fuel source a
customer will want; the success of the strategic partnership with
SK ecoplant in the United States and international markets; timing
and development of an ecosystem for the hydrogen market, including
in the South Korean market; continued incentives in the South
Korean market; the timing and pace of adoption of hydrogen for
stationary power; the risk of manufacturing defects; the accuracy
of Bloom’s estimates regarding the useful life of its Energy
Servers; delays in the development and introduction of new products
or updates to existing products; Bloom’s ability to secure partners
in order to commercialize its electrolyzer and carbon capture
products; the impact of the COVID-19 pandemic on the global economy
and its potential impact on Bloom’s business; the availability of
rebates, tax credits and other tax benefits; changes in the
regulatory landscape; Bloom’s reliance on tax equity financing
arrangements; Bloom’s reliance upon a limited number of customers;
Bloom’s lengthy sales and installation cycle, construction, utility
interconnection and other delays and cost overruns related to the
installation of its Energy Servers; business and economic
conditions and growth trends in commercial and industrial energy
markets; global macroeconomic conditions, including rising interest
rates, recession fears and inflationary pressures, or geopolitical
events or conflicts; overall electricity generation market; Bloom’s
ability to protect its intellectual property; and other risks and
uncertainties detailed in Bloom’s SEC filings from time to time.
More information on potential factors that may impact Bloom’s
business are set forth in Bloom’s periodic reports filed with the
SEC, including our Quarterly Report on Form 10-Q for the quarter
ended March 31, 2022 as filed with the SEC on May 6, 2022, as well
as subsequent reports filed with or furnished to the SEC from time
to time. These reports are available on Bloom’s website at
www.bloomenergy.com and the SEC’s website at www.sec.gov. Bloom
assumes no obligation to, and does not currently intend to, update
any such forward-looking statements.
The Investor Relations section of Bloom’s website at
investor.bloomenergy.com contains a significant amount of
information about Bloom Energy, including financial and other
information for investors. Bloom encourages investors to visit this
website from time to time, as information is updated and new
information is posted.
Condensed Consolidated Balance Sheets
(preliminary & unaudited)
(in thousands)
June 30,
December 31,
2022
2021
Assets
Current assets:
Cash and cash equivalents
$
235,638
$
396,035
Restricted cash
50,293
92,540
Accounts receivable
77,972
87,789
Contract assets
33,374
25,201
Inventories
206,707
143,370
Deferred cost of revenue
30,110
25,040
Customer financing receivable
—
5,784
Prepaid expenses and other current
assets
35,155
30,661
Total current assets
669,249
806,420
Property, plant and equipment, net
628,759
604,106
Operating lease right-of-use assets
110,362
106,660
Customer financing receivable
—
39,484
Restricted cash
128,248
126,539
Deferred cost of revenue
5,310
1,289
Other long-term assets
38,905
41,073
Total assets
$
1,580,833
$
1,725,571
Liabilities, redeemable convertible
preferred stock, redeemable noncontrolling interest and
stockholders’ deficit
Current liabilities:
Accounts payable
$
134,020
$
72,967
Accrued warranty
9,319
11,746
Accrued expenses and other current
liabilities
101,204
114,138
Deferred revenue and customer deposits
93,237
89,975
Operating lease liabilities
12,581
13,101
Financing obligations
16,159
14,721
Recourse debt
12,434
8,348
Non-recourse debt
14,734
17,483
Total current liabilities
393,688
342,479
Deferred revenue and customer deposits
76,890
90,310
Operating lease liabilities
118,291
106,187
Financing obligations
447,595
461,900
Recourse debt
278,538
283,483
Non-recourse debt
183,555
217,416
Other long-term liabilities
18,646
16,772
Total liabilities
1,517,203
1,518,547
Redeemable convertible preferred stock
208,551
208,551
Redeemable noncontrolling interest
—
300
Stockholders’ deficit:
Common stock
18
18
Additional paid-in capital
3,284,261
3,219,081
Accumulated other comprehensive loss
(1,000
)
(350
)
Accumulated deficit
(3,460,234
)
(3,263,075
)
Total deficit attributable to Class A and
Class B common stockholders
(176,955
)
(44,326
)
Noncontrolling interest
32,034
42,499
Total stockholders' deficit
$
(144,921
)
$
(1,827
)
Total liabilities, redeemable convertible
preferred stock, redeemable noncontrolling interest and
stockholders' deficit
$
1,580,833
$
1,725,571
Condensed Consolidated Statements
of Operations (preliminary & unaudited)
(in thousands, except per share
data)
Three Months Ended
June 30,
2022
2021
Revenue:
Product
$
173,625
$
146,867
Installation
12,729
28,879
Service
38,426
35,707
Electricity
18,456
17,017
Total revenue
243,236
228,470
Cost of revenue:
Product
129,419
108,891
Installation
16,730
36,515
Service
41,028
35,565
Electricity
58,029
10,155
Total cost of revenue
245,206
191,126
Gross (loss) profit
(1,970
)
37,344
Operating expenses:
Research and development
41,614
25,673
Sales and marketing
20,475
22,727
General and administrative
38,114
31,655
Total operating expenses
100,203
80,055
Loss from operations
(102,173
)
(42,711
)
Interest income
196
76
Interest expense
(13,814
)
(14,553
)
Loss on extinguishment of debt
(4,233
)
—
Other (expense) income, net
(1,191
)
22
Gain (loss) on revaluation of embedded
derivatives
38
(942
)
Loss before income taxes
(121,177
)
(58,108
)
Income tax (benefit) provision
(12
)
313
Net loss
(121,165
)
(58,421
)
Less: Net loss attributable to
noncontrolling interest
(2,365
)
(4,536
)
Net loss attributable to Class A and Class
B common stockholders
$
(118,800
)
$
(53,885
)
Less: Net loss attributable to redeemable
noncontrolling interest
—
(22
)
Net loss before portion attributable to
redeemable noncontrolling interest and noncontrolling interest
$
(118,800
)
$
(53,863
)
Net loss per share available to Class A
and Class B common stockholders, basic and diluted
$
(0.67
)
$
(0.31
)
Weighted average shares used to compute
net loss per share available to Class A and Class B common
stockholders, basic and diluted
178,507
172,749
Condensed Consolidated Statement of Cash
Flows (preliminary & unaudited)
(in thousands)
Six Months Ended
June 30,
2022
2021
Cash flows from operating
activities:
Net loss
$
(203,912
)
$
(88,202
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
30,697
26,808
Non-cash lease expense
8,800
4,520
Gain on sale of property, plant and
equipment
(523
)
—
Write-off of assets related to PPA
IIIa
44,800
—
Revaluation of derivative liabilities
1,680
462
Stock-based compensation
57,774
36,343
Loss on extinguishment of debt
4,233
—
Amortization of warrants and debt issuance
costs
1,651
1,900
Other
3,487
—
Changes in operating assets and
liabilities:
Accounts receivable
9,817
41,718
Contract assets
(8,173
)
(15,311
)
Inventories
(62,824
)
(21,026
)
Deferred cost of revenue
(8,995
)
4,984
Customer financing receivable
2,510
2,636
Prepaid expenses and other assets
(5,813
)
6,246
Operating lease right-of-use assets and
operating lease liabilities
2,422
(5,140
)
Finance lease liabilities
48
—
Accounts payable
51,982
29,449
Accrued expenses and other liabilities
(18,017
)
(17,261
)
Deferred revenue and customer deposits
(10,158
)
(43,428
)
Net cash used in operating activities
(98,514
)
(35,302
)
Cash flows from investing
activities:
Purchase of property, plant and
equipment
(44,728
)
(34,460
)
Net cash used in investing activities
(44,728
)
(34,460
)
Cash flows from financing
activities:
Repayment of debt of PPA IIIa
(30,212
)
—
Repayment of debt
(10,729
)
(7,838
)
Debt make-whole payment related to PPA
IIIa debt
(2,413
)
—
Proceeds from financing obligations
—
7,123
Repayment of financing obligations
(16,475
)
(6,387
)
Distributions to redeemable noncontrolling
interests
—
(17
)
Distributions to noncontrolling
interests
(4,415
)
(4,745
)
Proceeds from issuance of common stock
5,981
65,668
Proceeds from exercise of options
1,317
—
Net cash (used in) provided by financing
activities
(56,946
)
53,804
Effect of exchange rate changes on cash,
cash equivalent and restricted cash
(747
)
(224
)
Net decrease in cash, cash equivalents and
restricted cash
(200,935
)
(16,182
)
Cash, cash equivalents and restricted
cash:
Beginning of period
615,114
416,710
End of period
$
414,179
$
400,528
Reconciliation of GAAP to Non-GAAP
Financial Measures (preliminary & unaudited) (in thousands,
except percentages)
Q222
Q122
Q221
GAAP revenue
243,236
201,039
228,470
GAAP cost of sales
245,206
173,102
191,126
GAAP gross profit (loss)
(1,970)
27,937
37,344
Non-GAAP adjustments:
Stock-based compensation expense
4,767
3,860
3,804
PPA IIIa repowering impairment charge
44,800
-
-
Non-GAAP gross profit
47,597
31,797
41,148
GAAP gross margin %
(0.8%)
13.9%
16.3%
Non-GAAP adjustments
20.4%
1.9%
1.7%
Non-GAAP gross margin %
19.6%
15.8%
18.0%
Q222
Q122
Q221
GAAP loss from operations
(102,173)
(65,659)
(42,711)
Non-GAAP adjustments:
Stock-based compensation expense
32,599
26,308
19,133
PPA IIIa repowering impairment charge
44,800
-
-
Amortization of acquired intangible
assets
148
-
-
Non-GAAP loss from operations
(24,626)
(39,351)
(23,578)
GAAP operating margin %
(42.0%)
(32.7%)
(18.7%)
Non-GAAP adjustments
31.9%
13.1%
8.4%
Non-GAAP operating margin %
(10.1%)
(19.6%)
(10.3%)
GAAP Net Loss to non-GAAP Net Loss and
Computation of non-GAAP Net Loss per Share (EPS) (preliminary &
unaudited) (in thousands)
Q222
Diluted net earnings per
share
Q122
Diluted net earnings per
share
Q221
Diluted net earnings per
share
GAAP net loss
(118,800)
$ (0.67)
(78,359)
$ (0.44)
(53,863)
$ (0.31)
Non-GAAP adjustments:
Loss for non-controlling interests and
redeemable noncontrolling interest
(2,365)
(0.01)
(4,388)
(0.02)
(4,558)
(0.03)
Loss (gain) on derivatives liabilities
(38)
(0.00)
(531)
(0.00)
942
0.01
Gain on the fair value adjustments for
certain PPA derivatives
-
-
-
-
(735)
(0.00)
Goodwill impairment
1,957
0.01
-
-
-
-
Loss on JV investment
1,446
0.01
-
-
-
-
PPA IIIa repowering impairment charge
44,800
0.25
-
-
-
-
Loss on extinguishment of debt related to
PPA IIIa
4,233
0.02
-
-
-
-
Amortization of acquired intangible
assets
148
0.00
-
-
-
-
Stock-based compensation expense
32,599
0.18
26,308
0.15
19,133
0.11
Non-GAAP net loss
(36,020)
$ (0.20)
(56,970)
$ (0.32)
(39,081)
$ (0.23)
Q122
Q122
Q121
Numerator:
GAAP net loss
(118,800)
(78,359)
(53,863)
Non-GAAP net loss
(36,020)
(56,970)
(39,081)
Denominator:
Weighted-average shares used to compute
basic net earnings per share
178,507
177,189
172,749
Weighted-average shares used to compute
diluted net earnings per share
178,507
177,189
172,749
GAAP net earnings per share
Basic
$ (0.67)
$ (0.44)
$ (0.31)
Diluted
$ (0.67)
$ (0.44)
$ (0.31)
Non-GAAP net earnings per share
Basic
$ (0.20)
$ (0.32)
$ (0.23)
Diluted
$ (0.20)
$ (0.32)
$ (0.23)
GAAP Net Loss to Adjusted EBITDA
reconciliation (preliminary & unaudited) (in thousands)
Q222
Q122
Q221
GAAP net loss
(118,800)
(78,359)
(53,863)
Non-GAAP adjustments:
Loss for non-controlling interests and
redeemable noncontrolling interest
(2,365)
(4,388)
(4,558)
Loss (gain) on derivatives liabilities
(38)
(531)
942
Gain on the fair value adjustments for
certain PPA derivatives
-
-
(735)
Goodwill impairment
1,957
-
-
Stock-based compensation expense
32,599
26,308
19,133
Depreciation & Amortization
16,461
14,384
13,366
Provision (benefit) for Income Tax
(12)
564
313
Loss on China JV investment
1,446
-
-
Loss on extinguishment of debt related to
PPA IIIa repowering
4,233
-
-
PPA IIIa repowering impairment charge
44,800
-
-
Interest Expense / Other Misc
11,405
17,055
14,455
Adjusted EBITDA
(8,314)
(24,967)
(10,947)
Use of non-GAAP financial measures
To supplement Bloom Energy condensed consolidated financial
statement information presented on GAAP basis, Bloom Energy
provides financial measures including non-GAAP gross profit (loss),
non-GAAP gross margin, non-GAAP operating profit (loss), (non-GAAP
earnings from operations), non-GAAP operating profit (loss) margin,
non-GAAP net earnings, non-GAAP basic, diluted net earnings per
share and Adjusted EBITDA. Bloom Energy also provides forecasts of
non-GAAP gross profit margin and non-GAAP operating profit (loss)
margin.
These non-GAAP financial measures are not computed in accordance
with, or as an alternative to, GAAP in the United States.
- The GAAP measure most directly comparable to non-GAAP gross
profit (loss) is gross profit (loss).
- The GAAP measure most directly comparable to non-GAAP gross
margin is gross margin.
- The GAAP measure most directly comparable to non-GAAP operating
profit (loss) (non-GAAP earnings from operations) is operating
profit (loss) (earnings from operations).
- The GAAP measure most directly comparable to non-GAAP operating
margin is operating margin.
- The GAAP measure most directly comparable to non-GAAP net
earnings is net earnings.
- The GAAP measure most directly comparable to non-GAAP diluted
net earnings per share is diluted net earnings per share.
- The GAAP measure most directly comparable to Adjusted EBITDA is
net earnings.
Reconciliations of each of these non-GAAP financial measures to
GAAP information are included in the tables above or elsewhere in
the materials accompanying this news release.
Use and economic substance of non-GAAP financial measures
used by Bloom Energy
Non-GAAP gross profit (loss) and non-GAAP gross margin are
defined to exclude charges relating to stock-based compensation
expense and PPA IIIa repowering related impairment charge. Non-GAAP
operating profit (loss) (non-GAAP earnings from operations) and
non-GAAP operating margin are defined to exclude any charges
relating to stock-based compensation expense, PPA IIIa repowering
related impairment charge and the amortization of acquired
intangible assets. Non-GAAP net earnings and non-GAAP diluted net
earnings per share consist of net earnings or diluted net earnings
per share excluding stock-based compensation, loss for
non-controlling interest, loss (gain) on derivatives liabilities,
loss (gain) on the fair value adjustments for certain PPA
derivatives, goodwill impairment, loss on China JV investment, PPA
IIIa repowering related impairment charge, loss on extinguishment
of debt related to PPA IIIa repowering and the amortization of
acquired intangible assets. Adjusted EBITDA is defined as net
income (loss) before interest expense, income tax expense,
depreciation and amortization expense, stock-based compensation,
loss for non-controlling interest, loss (gain) on derivatives
liabilities, loss (gain) on the fair value adjustments for certain
PPA derivatives, goodwill impairment, loss on China JV investment,
PPA IIIa repowering related impairment charge, loss on
extinguishment of debt related to PPA IIIa repowering.
Bloom Energy management uses these non-GAAP financial measures
for purposes of evaluating Bloom Energy historical and prospective
financial performance, as well as Bloom Energy performance relative
to its competitors. Bloom Energy believes that excluding the items
mentioned above from these non-GAAP financial measures allows Bloom
Energy management to better understand Bloom Energy consolidated
financial performance as management does not believe that the
excluded items are reflective of ongoing operating results. More
specifically, Bloom Energy management excludes each of those items
mentioned above for the following reasons:
- Stock-based compensation expense consists of equity awards
granted based on the estimated fair value of those awards at grant
date. Although stock-based compensation is a key incentive offered
to our employees, Bloom Energy excludes these charges for the
purpose of calculating these non-GAAP measures, primarily because
they are non-cash expenses and such an exclusion facilitates a more
meaningful evaluation of Bloom Energy current operating performance
and comparisons to Bloom Energy operating performance in other
periods.
- Loss for non-controlling interest represents allocation to the
non-controlling interests under the hypothetical liquidation at
book value (HLBV) method and are associated with our Bloom Energy
legacy PPA entities.
- Loss (gain) on derivatives liabilities represents non-cash
adjustments to the fair value of the embedded derivatives
associated with the convertible notes and other derivatives.
- Loss (gain) on the fair value adjustments for certain PPA
derivatives represents non-cash adjustments to the fair value of
the derivative forward contract for one PPA entity (our Third PPA
company), a wholly owned subsidiary.
- PPA IIIa repowering related impairment charge represents
non-cash impairment charges on old server units decommissioned upon
repowering.
- Loss on debt extinguishment related to PPA IIIa
repowering.
- Goodwill impairment related to the acquisition of BE Japan in
Q2 2021.
- Amortization of acquired intangible assets.
- Loss on China JV investment upon sale of our equity
interest.
- Adjusted weighted average shares outstanding attributable to
common (Basic and Diluted) includes adjustments to reflect assumed
conversion of certain convertible promissory notes.
- Adjusted EBITDA is defined as net income (loss) before interest
expense, income tax expense, non-controlling interest,
revaluations, stock-based compensation and depreciation and
amortization expense. We use Adjusted EBITDA to measure the
operating performance of our business, excluding specifically
identified items that we do not believe directly reflect our core
operations and may not be indicative of our recurring
operations.
Material limitations associated with use of non-GAAP
financial measures
These non-GAAP financial measures have limitations as analytical
tools, and these measures should not be considered in isolation or
as a substitute for analysis of Bloom Energy results as reported
under GAAP. Some of the limitations in relying on these non-GAAP
financial measures are:
- Items such as stock-based compensation expense that is excluded
from non-GAAP gross profit (loss), non-GAAP gross margin, non-GAAP
operating expenses, non-GAAP operating profit (loss) (non-GAAP
earnings from operations), non-GAAP operating margin, non-GAAP net
earnings, and non-GAAP diluted net earnings per share can have a
material impact on the equivalent GAAP earnings measure.
- Loss for non-controlling interest, loss (gain) on derivatives
liabilities, loss (gain) on the fair value adjustments for certain
PPA derivatives, though not directly affecting Bloom Energy cash
position, represents the loss (gain) in value of certain assets and
liabilities. The expense associated with this loss (gain) in value
is excluded from non-GAAP net earnings, and non-GAAP diluted net
earnings per share and can have a material impact on the equivalent
GAAP earnings measure.
- Other companies may calculate non-GAAP gross profit, non-GAAP
gross profit margin, non-GAAP operating profit (non-GAAP earnings
from operations), non-GAAP operating profit margin, non-GAAP net
earnings, non-GAAP diluted net earnings per share and Adjusted
EBITDA differently than Bloom Energy does, limiting the usefulness
of those measures for comparative purposes.
Compensation for limitations associated with use of non-GAAP
financial measures
Bloom Energy compensates for the limitations on its use of
non-GAAP financial measures by relying primarily on its GAAP
results and using non-GAAP financial measures only as a supplement.
Bloom Energy also provides a reconciliation of each non-GAAP
financial measure to its most directly comparable GAAP measure
within this news release and in other written materials that
include these non-GAAP financial measures, and Bloom Energy
encourages investors to review those reconciliations carefully.
Usefulness of non-GAAP financial measures to
investors
Bloom Energy believes that providing financial measures
including non-GAAP gross profit (loss), non-GAAP gross margin,
non-GAAP operating profit (non-GAAP earnings from operations),
non-GAAP operating profit (loss) margin, non-GAAP net earnings,
non-GAAP diluted net earnings per share in addition to the related
GAAP measures provides investors with greater transparency to the
information used by Bloom Energy management in its financial and
operational decision making and allows investors to see Bloom
Energy results “through the eyes” of management. Bloom Energy
further believes that providing this information better enables
Bloom Energy investors to understand Bloom Energy operating
performance and to evaluate the efficacy of the methodology and
information used by Bloom Energy management to evaluate and measure
such performance. Disclosure of these non-GAAP financial measures
also facilitates comparisons of Bloom Energy operating performance
with the performance of other companies in Bloom Energy industry
that supplement their GAAP results with non-GAAP financial measures
that may be calculated in a similar manner.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220809005497/en/
Investor Relations: Ed Vallejo Bloom Energy +1 (267)
370-9717 Edward.vallejo@bloomenergy.com
Media: Jennifer Duffourg Bloom Energy +1 (480) 341-5464
jennifer.duffourg@bloomenergy.com
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