Bloom Energy Corporation (NYSE: BE) reported today its total
revenue for the third quarter ended September 30, 2023, grew 37%
compared with the third quarter of 2022. The record revenue for the
quarter was driven by continued growth in Product and Service
revenue.
Third Quarter Highlights
- Revenue of $400.3 million in the third quarter of 2023, an
increase of 36.9% compared to $292.3 million in the third quarter
of 2022. Product and Service revenue of $352.5 million in the third
quarter of 2023, an increase of 40.7% compared to $250.6 million in
the third quarter of 2022.
- Gross margin of (1.3%) in the third quarter of 2023, a decrease
of 18.7 percentage points compared to 17.4% in the third quarter of
2022.
- Non-GAAP gross margin of 31.6% in the third quarter of 2023, an
increase of 12.4 percentage points compared to 19.1% in the third
quarter of 2022.
- Operating loss of $103.7 million in the third quarter of 2023,
a decrease of $51.1 million compared to $52.6 million in the third
quarter of 2022.
- Non-GAAP operating profit of $51.8 million in the third quarter
of 2023, an improvement of $80.3 million compared to a non-GAAP
operating loss of $28.5 million in the third quarter of 2022.
“Bloom Energy is executing at a high level on innovation and
growth,” said KR Sridhar, Chairman and CEO of Bloom Energy. “AI
adoption across all sectors of our society will become a forcing
function for data centers to adopt Bloom energy servers as a
quickly deployable primary power solution. The ability to quickly
deploy our energy servers together with our CHP solution for data
center cooling and carbon capture for sustainability creates a real
competitive advantage over virtually all alternatives in the
marketplace. We are excited with our results and future
prospects.”
Greg Cameron, President and CFO of Bloom Energy, added, “We had
a very strong third quarter and are executing across our company.
We achieved record third quarter revenues with expanding margins.
We have made significant progress on reducing our costs as we
continue to invest and innovate for our future. We are well
positioned to meet our 2023 goals.”
Summary of Key Financial Metrics
Preliminary Summary of GAAP Profit and Loss
Statements
($000), except EPS data
Q3’23
Q2’23
Q3’22
Q3’23 YTD
Q3’22 YTD
Revenue
400,268
301,095
292,274
976,554
736,549
Cost of Revenue
405,482
244,745
241,330
871,151
659,638
Gross (Loss) Profit
(5,214
)
56,350
50,944
105,403
76,911
Gross Margin
(1.3
%)
18.7
%
17.4
%
10.8
%
10.4
%
Operating Expenses
98,494
110,806
103,536
327,248
297,335
Operating Loss
(103,708
)
(54,456
)
(52,592
)
(221,845
)
(220,424
)
Operating Margin
(25.9
%)
(18.1
%)
(18.0
%)
(22.7
%)
(29.9
%)
Non-operating Expenses
65,291
11,607
4,485
84,782
33,812
Net Loss to Common Stockholders
(168,999
)
(66,061
)
(57,077
)
(306,627
)
(254,236
)
GAAP EPS, Basic and Diluted
$
(0.80
)
$
(0.32
)
$
(0.31
)
$
(1.47
)
$
(1.41
)
Preliminary Summary of Non-GAAP Financial
Information1
($000), except EPS data
Q3’23
Q2’23
Q3’22
Q3’23 YTD
Q3’22 YTD
Revenue
400,268
301,095
292,274
976,554
736,549
Cost of Revenue
273,888
239,678
236,349
730,329
556,430
Gross Profit
126,380
61,418
55,925
246,225
180,119
Gross Margin
31.6
%
20.4
%
19.1
%
25.2
%
24.5
%
Operating Expenses
74,580
87,357
84,449
254,457
272,620
Operating Income (Loss)
51,800
(25,940
)
(28,524
)
(8,232
)
(92,501
)
Operating Margin
12.9
%
(8.6
%)
(9.8
%)
(0.8
%)
(12.6
%)
Adjusted EBITDA
66,415
(8,421
)
(13,076
)
42,051
(46,320
)
Basic EPS
$
0.20
$
(0.17
)
$
(0.20
)
$
(0.19
)
$
(0.72
)
Diluted EPS
$
0.15
$
(0.17
)
$
(0.20
)
$
(0.19
)
$
(0.72
)
- A detailed reconciliation of GAAP to Non-GAAP financial
measures is provided at the end of this press release
Outlook
Bloom reaffirms outlook for the full-year 2023:
•
Revenue, billion:
$1.4 - $1.5
•
Product & Service Revenue, billion:
$1.25 - $1.35
•
Non-GAAP Gross Margin:
~25%
•
Non-GAAP Operating Margin:
Positive
Conference Call Details
Bloom will host a conference call today, November 8, 2023, at
2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) to discuss its
financial results. To participate in the live call, analysts and
investors may call toll-free dial-in number: +1 (888) 330-2443 and
toll-dial-in-number +1 (240) 789-2728. The conference ID is
4781037. A simultaneous live webcast will also be available under
the Investor Relations section on our website at
https://investor.bloomenergy.com/. Following the webcast, an
archived version will be available on Bloom’s website for one year.
A telephonic replay of the conference call will be available for
one week following the call, by dialing +1 (800) 770-2030 or +1
(647) 362 9199 and entering passcode 4781037.
Use of Non-GAAP Financial Measures
This release includes certain non-GAAP financial measures as
defined by the rules and regulations of the Securities and Exchange
Commission (SEC). These non-GAAP financial measures are in addition
to, and not a substitute for or superior to, measures of financial
performance prepared in accordance with U.S. GAAP. There are a
number of limitations related to the use of these non-GAAP
financial measures versus their nearest GAAP equivalents. For
example, other companies may calculate non-GAAP financial measures
differently or may use other measures to evaluate their
performance, all of which could reduce the usefulness of our
non-GAAP financial measures as tools for comparison. Bloom urges
you to review the reconciliations of its non-GAAP financial
measures to the most directly comparable U.S. GAAP financial
measures set forth in this press release, and not to rely on any
single financial measure to evaluate our business. With respect to
Bloom’s expectations regarding its 2023 Outlook, Bloom is not able
to provide a quantitative reconciliation of non-GAAP gross margin
and non-GAAP operating margin measures to the corresponding GAAP
measures without unreasonable efforts due to the uncertainty
regarding, and the potential variability of, reconciling items such
as stock-based compensation expense. Material changes to
reconciling items could have a significant effect on future GAAP
results and, as such, we believe that any reconciliation provided
would imply a degree of precision that could be confusing or
misleading to investors.
About Bloom Energy
Bloom Energy empowers businesses and communities to responsibly
take charge of their energy. The company’s leading solid oxide
platform for distributed generation of electricity and hydrogen is
changing the future of energy. Fortune 100 companies turn to Bloom
Energy as a trusted partner to deliver lower carbon energy today
and a net-zero future. For more information, visit
www.bloomenergy.com.
Forward-Looking Statements
This press release contains certain forward-looking statements,
which are subject to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements generally relate to future events or our future
financial or operating performance. In some cases, you can identify
forward-looking statements because they contain words such as
“anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,”
“may,” “should,” “will” and “would” or the negative of these words
or similar terms or expressions that concern Bloom’s expectations,
strategy, priorities, plans or intentions. These forward-looking
statements include, but are not limited to, Bloom’s expectations
regarding: innovation and solutions; customer reaction to Bloom’s
products; Bloom’s liquidity position; market demand for energy
solutions; and Bloom’s 2023 outlook for revenue and profitability.
Readers are cautioned that these forward-looking statements are
only predictions and may differ materially from actual future
events or results due to a variety of factors including, but not
limited to: Bloom’s limited operating history; the emerging nature
of the distributed generation market and rapidly evolving market
trends; the significant losses Bloom has incurred in the past; the
significant upfront costs of Bloom’s Energy Servers and Bloom’s
ability to secure financing for its products; Bloom’s ability to
drive cost reductions and to successfully mitigate against
potential price increases; Bloom’s ability to service its existing
debt obligations; Bloom’s ability to be successful in new markets;
the ability of the Bloom Energy Server to operate on the fuel
source a customer will want; the success of the strategic
partnership with SK ecoplant in the United States and international
markets; timing and development of an ecosystem for the hydrogen
market, including in the South Korean market; continued incentives
in the South Korean market; adapting to the new government bidding
process in the South Korean market; the timing and pace of adoption
of hydrogen for stationary power; the risk of manufacturing
defects; the accuracy of Bloom’s estimates regarding the useful
life of its Energy Servers; delays in the development and
introduction of new products or updates to existing products;
Bloom’s ability to secure partners in order to commercialize its
electrolyzer and carbon capture products; supply constraints; the
availability of rebates, tax credits and other tax benefits;
changes in the regulatory landscape; Bloom’s reliance on tax equity
financing arrangements; Bloom’s reliance upon a limited number of
customers; Bloom’s lengthy sales and installation cycle,
construction, utility interconnection and other delays and cost
overruns related to the installation of its Energy Servers;
business and economic conditions and growth trends in commercial
and industrial energy markets; global macroeconomic conditions,
including rising interest rates, recession fears and inflationary
pressures, or geopolitical events or conflicts; overall electricity
generation market; Bloom’s ability to protect its intellectual
property; and other risks and uncertainties detailed in Bloom’s SEC
filings from time to time. More information on potential factors
that may impact Bloom’s business are set forth in Bloom’s periodic
reports filed with the SEC, including our Annual Report on Form
10-K for the year ended December 31, 2022 as filed with the SEC on
February 21, 2023 and our Quarterly Reports on Form 10-Q for the
quarters ended March 31, 2023, June 30, 2023, and September 30,
2023, as filed with the SEC on May 9, 2023, August 3, 2023, and
November 8, 2023, respectively, as well as subsequent reports filed
with or furnished to the SEC from time to time. These reports are
available on Bloom’s website at www.bloomenergy.com and the SEC’s
website at www.sec.gov. Bloom assumes no obligation to, and does
not currently intend to, update any such forward-looking
statements.
The Investor Relations section of Bloom’s website at
investor.bloomenergy.com contains a significant amount of
information about Bloom Energy, including financial and other
information for investors. Bloom encourages investors to visit this
website from time to time, as information is updated and new
information is posted.
Condensed Consolidated Balance Sheets
(preliminary & unaudited) (in thousands, except share data)
September 30,
December 31,
2023
2022
Assets
Current assets:
Cash and cash equivalents1
$
557,384
$
348,498
Restricted cash1
42,614
51,515
Accounts receivable less allowance for
doubtful accounts of $119 as of September 30, 2023 and December 31,
20221, 2
334,495
250,995
Contract assets3
143,875
46,727
Inventories1
475,649
268,394
Deferred cost of revenue4
62,212
46,191
Prepaid expenses and other current
assets1
66,243
43,643
Total current assets
1,682,472
1,055,963
Property, plant and equipment, net1
490,535
600,414
Operating lease right-of-use assets1
127,973
126,955
Restricted cash1
37,698
118,353
Deferred cost of revenue
4,286
4,737
Other long-term assets1
33,208
40,205
Total assets
$
2,376,172
$
1,946,627
Liabilities and stockholders’
equity
Current liabilities:
Accounts payable1
$
153,793
$
161,770
Accrued warranty
16,537
17,332
Accrued expenses and other current
liabilities1, 5
116,480
144,183
Deferred revenue and customer deposits1,
6
119,157
159,048
Operating lease liabilities1
16,666
16,227
Financing obligations
39,093
17,363
Recourse debt
—
12,716
Non-recourse debt1
—
13,307
Total current liabilities
461,726
541,946
Deferred revenue and customer
deposits1
14,499
56,392
Operating lease liabilities1
133,602
132,363
Financing obligations
410,365
442,063
Recourse debt
840,492
273,076
Non-recourse debt1
1,483
112,480
Other long-term liabilities
8,805
9,491
Total liabilities
$
1,870,972
$
1,567,811
Commitments and contingencies
Stockholders’ equity:
Common stock: $0.0001 par value; Class A
shares - 600,000,000 shares authorized and 223,860,870 shares and
189,864,722 shares issued and outstanding and Class B shares -
600,000,000 shares authorized and 0 shares and 15,799,968 shares
issued and outstanding at September 30, 2023 and December 31, 2022,
respectively
21
20
Additional paid-in capital
4,360,080
3,906,491
Accumulated other comprehensive loss
(2,378
)
(1,251
)
Accumulated deficit
(3,871,110
)
(3,564,483
)
Total equity attributable to common
stockholders
486,613
340,777
Noncontrolling interest
18,587
38,039
Total stockholders’ equity
$
505,200
$
378,816
Total liabilities and stockholders’
equity
$
2,376,172
$
1,946,627
1
We have a variable interest entity related
to PPA V and a joint venture in the Republic of Korea, which
represent a portion of the consolidated balances recorded within
these financial statement line items.
In August 2023, we sold the PPA V entity
as a result of the PPA V Repowering of Energy Servers, as such the
consolidated balances recorded within these financial statement
line items as of September 30, 2023 exclude PPA V balances.
2
Including amounts from related parties of
$247.9 million and $4.3 million as of September 30, 2023 and
December 31, 2022, respectively.
3
Including amounts from related parties of
$3.4 million as of September 30, 2023. There was no respective
related party amounts as of December 31, 2022.
4
Including amounts from related parties of
$23.4 million as of September 30, 2023. There was no respective
related party amounts as of December 31, 2022.
5
Including amounts from related parties of
$5.7 million as of September 30, 2023. There was no respective
related party amounts as of December 31, 2022.
6
Including amounts from related parties of
$11.1 million as of September 30, 2023. There was no respective
related party amounts as of December 31, 2022.
Condensed Consolidated Statements of
Operations (preliminary & unaudited) (in thousands, except net
loss per share data)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2023
2022
2023
2022
Revenue:
Product
$
304,976
$
213,243
$
713,427
$
520,415
Installation
21,916
22,682
66,762
48,964
Service
47,535
37,347
130,496
111,012
Electricity
25,841
19,002
65,869
56,158
Total revenue1
400,268
292,274
976,554
736,549
Cost of revenue:
Product
182,832
158,176
457,591
393,337
Installation
25,902
28,333
77,881
57,836
Service
57,370
41,792
165,877
124,646
Electricity
139,378
13,029
169,802
83,819
Total cost of revenue
405,482
241,330
871,151
659,638
Gross (loss) profit
(5,214
)
50,944
105,403
76,911
Operating expenses:
Research and development
35,126
36,146
122,309
112,286
Sales and marketing
20,002
23,275
73,935
65,084
General and administrative
43,366
44,115
131,004
119,965
Total operating expenses
98,494
103,536
327,248
297,335
Loss from operations
(103,708
)
(52,592
)
(221,845
)
(220,424
)
Interest income
7,419
1,109
13,771
1,364
Interest expense
(68,037
)
(13,099
)
(93,736
)
(41,000
)
Other (expense) income, net
(1,577
)
4,472
(3,660
)
254
Loss on extinguishment of debt
(1,415
)
—
(4,288
)
(4,233
)
(Loss) gain on revaluation of embedded
derivatives
(114
)
54
(1,213
)
623
Loss before income taxes
(167,432
)
(60,056
)
(310,971
)
(263,416
)
Income tax provision
646
336
1,083
888
Net loss
(168,078
)
(60,392
)
(312,054
)
(264,304
)
Less: Net gain (loss) attributable to
noncontrolling interest
921
(3,315
)
(5,427
)
(9,768
)
Net loss attributable to common
stockholders
(168,999
)
(57,077
)
(306,627
)
(254,536
)
Less: Net loss attributable to redeemable
noncontrolling interest
—
—
—
(300
)
Net loss before portion attributable to
redeemable noncontrolling interest and noncontrolling interest
$
(168,999
)
$
(57,077
)
$
(306,627
)
$
(254,236
)
Net loss per share available to common
stockholders, basic and diluted
$
(0.80
)
$
(0.31
)
$
(1.47
)
$
(1.41
)
Weighted average shares used to compute
net loss per share available to common stockholders, basic and
diluted
210,930
186,487
208,798
180,762
1
Including related party revenue of $125.7
million and $361.0 million for the three and nine months ended
September 30, 2023, respectively and $12.5 million and $30.2
million for the three and nine months ended September 30, 2022,
respectively.
Condensed Consolidated Statement of Cash
Flows (preliminary & unaudited) (in thousands)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2023
2022
2023
2022
Cash flows from operating
activities:
Net loss
$
(168,078
)
$
(60,392
)
$
(312,054
)
$
(264,304
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
14,615
15,485
50,283
46,182
Non-cash lease expense
8,356
9,353
24,540
18,153
(Loss) gain on disposal of property, plant
and equipment
(19
)
—
177
(523
)
Revaluation of derivative contracts
114
(11,320
)
1,213
(9,640
)
Impairment of assets related to PPA V and
PPA IIIa
130,111
—
130,111
44,800
Derecognition of loan commitment asset
related to SK ecoplant Second Tranche Closing
52,792
—
52,792
—
Stock-based compensation
21,315
23,686
77,160
81,460
Amortization of warrants and debt issuance
costs
1,514
704
3,300
2,355
Loss on extinguishment of debt
1,415
—
4,288
4,233
Unrealized foreign currency exchange
loss
1,517
810
3,029
3,086
Other
—
—
—
3,487
Changes in operating assets and
liabilities:
Accounts receivable1
16,100
6,820
(83,851
)
15,758
Contract assets2
(108,692
)
7,606
(97,148
)
(567
)
Inventories
(8,969
)
(47,973
)
(206,315
)
(110,797
)
Deferred cost of revenue3
(8,370
)
139
(15,914
)
(8,856
)
Customer financing receivable
—
—
—
2,510
Prepaid expenses and other current
assets
(22,807
)
(9,953
)
(20,849
)
(15,766
)
Other long-term assets
10,219
(730
)
13,634
(730
)
Operating lease right-of-use assets and
operating lease liabilities
(8,432
)
(260
)
(23,879
)
2,162
Finance lease liabilities
171
451
907
499
Accounts payable
(41,589
)
(11,943
)
(5,695
)
38,642
Accrued warranty
1,631
1,597
(795
)
1,597
Accrued expenses and other current
liabilities4
4,782
18,519
(30,937
)
502
Deferred revenue and customer
deposits5
(30,275
)
(2,558
)
(57,041
)
(12,716
)
Other long-term liabilities
(590
)
(9,980
)
(1,320
)
(9,980
)
Net cash used in operating activities
(133,169
)
(69,939
)
(494,364
)
(168,453
)
Cash flows from investing
activities:
Purchase of property, plant and
equipment
(21,335
)
(36,179
)
(67,485
)
(80,907
)
Proceeds from sale of property, plant and
equipment
(22
)
—
3
—
Net cash used in investing activities
(21,357
)
(36,179
)
(67,482
)
(80,907
)
Cash flows from financing
activities:
Proceeds from issuance of debt
(35
)
—
633,983
—
Payment of debt issuance costs
(3,711
)
—
(19,539
)
—
Repayment of debt of PPA V and PPA
IIIa
(118,538
)
—
(118,538
)
(30,212
)
Debt make-whole payment related to PPA
IIIa debt
—
—
—
(2,413
)
Repayment of recourse debt
—
(6,533
)
(72,852
)
(17,262
)
Proceeds from financing obligations
—
—
2,702
—
Repayment of financing obligations
(4,747
)
(12,346
)
(13,475
)
(28,821
)
Distributions and payments to
noncontrolling interests
(2,265
)
(1,557
)
(2,265
)
(5,972
)
Proceeds from issuance of common stock
6,745
7,852
16,003
15,150
Proceeds from public share offering
—
385,396
—
385,396
Public share offering costs
—
(13,407
)
—
(13,407
)
Buyout of noncontrolling interest
(6,864
)
—
(6,864
)
—
Proceeds from issuance of Series B
redeemable convertible preferred stock
—
—
310,957
—
Contributions from noncontrolling
interest
—
2,815
6,979
2,815
Purchase of capped call related to
convertible notes
—
—
(54,522
)
—
Other
(250
)
(63
)
(408
)
(63
)
Net cash (used in) provided by financing
activities
(129,665
)
362,157
682,161
305,211
Effect of exchange rate changes on cash,
cash equivalent and restricted cash
(657
)
(896
)
(985
)
(1,643
)
Net (decrease) increase in cash, cash
equivalents and restricted cash
(284,848
)
255,143
119,330
54,208
Cash, cash equivalents and restricted
cash:
Beginning of period
922,544
414,179
518,366
615,114
End of period
637,696
669,322
637,696
669,322
1
Including changes in related party
balances of $241.9 million and $6.8 million for the three months
ended September 30, 2023 and 2022, respectively, and $243.6 million
and $8.2 million for the nine months ended September 30, 2023 and
2022, respectively.
2
Including changes in related party
balances of $3.4 million for the three and nine months ended
September 30, 2023. There were no associated related party balances
for the three and nine months ended September 30, 2022.
3
Including changes in related party
balances of $23.4 million for the three and nine months ended
September 30, 2023. There were no associated related party balances
for the three and nine months ended September 30, 2022.
4
Including changes in related party
balances of $5.7 million for the three and nine months ended
September 30, 2023. There were no associated related party balances
for the three and nine months ended September 30, 2022.
5
Including changes in related party
balances of $11.1 million for the three and nine months ended
September 30, 2023. There were no associated related party balances
for the three and nine months ended September 30, 2022.
Reconciliation of GAAP to Non-GAAP
Financial Measures (preliminary & unaudited) (in thousands,
except percentages)
Q3’23
Q2’23
Q3’22
Q3’23 YTD
Q3’22 YTD
GAAP revenue
400,268
301,095
292,274
976,554
736,549
GAAP cost of sales
405,482
244,745
241,330
871,151
659,638
GAAP gross (loss) profit
(5,214
)
56,350
50,944
105,403
76,911
Non-GAAP adjustments:
Stock-based compensation expense
5,581
5,067
4,981
14,809
13,608
Impairment charge (PPA V, PPA IIIa)
123,700
—
—
123,700
44,800
Restructuring charges
725
—
—
725
—
PPA V Sales property tax
1,588
—
—
1,588
—
Non-GAAP gross profit
126,380
61,417
55,925
246,225
135,319
GAAP gross margin %
(1.3
%)
18.7
%
17.4
%
10.8
%
10.4
%
Non-GAAP adjustments
32.9
%
1.7
%
1.7
%
14.4
%
7.9
%
Non-GAAP gross margin %
31.6
%
20.4
%
19.1
%
25.2
%
18.4
%
Q3’23
Q2’23
Q3’22
Q3’23 YTD
Q3’22 YTD
GAAP loss from operations
(103,708
)
(54,456
)
(52,592
)
(221,845
)
(220,424
)
Non-GAAP adjustments:
Stock-based compensation expense
21,564
28,479
24,031
79,596
82,938
Impairment charge (PPA V, PPA IIIa)
130,088
—
—
130,088
44,800
PPA V Sales property tax
1,588
—
—
1,588
—
Restructuring charges
2,226
—
—
2,226
—
Amortization of acquired intangible
assets
42
37
37
115
185
Non-GAAP profit (loss) from
operations
51,800
(25,940
)
(28,524
)
(8,232
)
(92,501
)
GAAP operating margin %
(25.9
%)
(18.1
%)
(18.0
%)
(22.7
%)
(29.9
%)
Non-GAAP adjustments
38.8
%
9.5
%
8.2
%
21.9
%
17.4
%
Non-GAAP operating margin %
12.9
%
(8.6
%)
(9.8
%)
(0.8
%)
(12.6
%)
Reconciliation of GAAP Net Loss to
non-GAAP Net Profit (Loss) and Computation of non-GAAP Net Profit
(Loss) per Share (EPS) (preliminary & unaudited) (in thousands,
except share data)
Q3’23
Q2’23
Q3’22
Q3’23 YTD
Q3’22 YTD
Net loss to Common Stockholders
(168,999
)
(66,061
)
(57,077
)
(306,627
)
(254,236
)
Non-GAAP adjustments:
Add back: Gain (loss) for non-controlling
interests
921
(2,998
)
(3,315
)
(5,427
)
(10,068
)
Loss (gain) on derivative liabilities
114
1,216
(54
)
1,213
(623
)
Impairment charge (PPA V, PPA IIIa and
Goodwill)
130,088
—
—
130,088
46,757
Loss on China JV investment
—
—
—
—
1,446
Loss on extinguishment of debt
1,415
2,873
—
4,288
4,233
Amortization of acquired intangible
assets
42
37
37
115
185
Restructuring charges
2,226
—
—
2,226
—
PPA V Sales property tax
1,588
—
—
1,588
—
Stock-based compensation expense
21,564
28,479
24,031
79,596
82,938
Interest expense on SK loan commitment
52,792
—
—
52,792
—
Adjusted Net Profit (Loss)
41,751
(36,454
)
(36,378
)
(40,148
)
(129,368
)
Adjusted net profit (loss) per share
(EPS), Basic
$
0.20
$
(0.17
)
$
(0.20
)
$
(0.19
)
$
(0.72
)
Adjusted net profit (loss) per share
(EPS), Diluted
$
0.15
$
(0.17
)
$
(0.20
)
$
(0.19
)
$
(0.72
)
Weighted average shares outstanding
attributable to common, Basic
210,930
208,692
186,487
208,798
180,762
Weighted-average shares outstanding
attributable to common, Diluted
274,337
208,692
186,487
208,798
180,762
Reconciliation of GAAP Net Loss to
Adjusted EBITDA (preliminary & unaudited) (in thousands)
Q3’23
Q2’23
Q3’22
Q3’23 YTD
Q3’22 YTD
Net loss to Common Stockholders
(168,999
)
(66,061
)
(57,077
)
(306,627
)
(254,236
)
Add back: (Gain) loss for non-controlling
interests
921
(2,998
)
(3,315
)
(5,427
)
(10,068
)
Loss (gain) on derivative liabilities
114
1,216
(54
)
1,213
(623
)
Impairment charge (PPA V, PPA IIIa and
Goodwill)
130,088
—
—
130,088
46,757
Loss on China JV investment
—
—
—
—
1,446
Loss on extinguishment of debt
1,415
2,873
—
4,288
4,233
Stock-based compensation expense
21,564
28,479
24,031
79,596
82,938
Restructuring charges
2,226
—
—
2,226
—
PPA V Sales property tax
1,588
—
—
1,588
—
Amortization of acquired intangible
assets
42
37
37
115
185
Interest expense on SK loan commitment
52,792
—
—
52,792
—
Adjusted Net Profit (Loss)
41,751
(36,454
)
(36,378
)
(40,148
)
(129,368
)
Depreciation & amortization
14,615
17,519
15,485
50,283
46,182
Income tax provision
646
178
336
1,083
888
Interest expense (income), Other expense
(income), net
9,403
10,336
7,518
30,833
35,978
Adjusted EBITDA
66,415
(8,421
)
(13,076
)
42,051
(46,320
)
Use of non-GAAP financial measures
To supplement Bloom Energy condensed consolidated financial
statement information presented on a GAAP basis, Bloom Energy
provides financial measures including non-GAAP gross profit (loss),
non-GAAP gross margin, non-GAAP operating profit (loss) (non-GAAP
earnings from operations), non-GAAP operating profit (loss) margin,
non-GAAP net earnings, non-GAAP basic and diluted earnings per
share and Adjusted EBITDA. Bloom Energy also provides forecasts of
non-GAAP gross margin and non-GAAP operating margin.
These non-GAAP financial measures are not computed in accordance
with, or as an alternative to, GAAP in the United States.
- The GAAP measure most directly comparable to non-GAAP gross
profit (loss) is gross profit (loss).
- The GAAP measure most directly comparable to non-GAAP gross
margin is gross margin.
- The GAAP measure most directly comparable to non-GAAP operating
profit (loss) (non-GAAP earnings from operations) is operating
profit (loss) (earnings from operations).
- The GAAP measure most directly comparable to non-GAAP operating
margin is operating margin.
- The GAAP measure most directly comparable to non-GAAP net
earnings is net earnings.
- The GAAP measure most directly comparable to non-GAAP diluted
earnings per share is diluted earnings per share.
- The GAAP measure most directly comparable to Adjusted EBITDA is
net earnings.
Reconciliations of each of these non-GAAP financial measures to
GAAP information are included in the tables above or elsewhere in
the materials accompanying this news release.
Use and economic substance of non-GAAP financial measures
used by Bloom Energy
Non-GAAP gross profit (loss) and non-GAAP gross margin are
defined to exclude charges relating to stock-based compensation
expense, PPA V and PPA IIIa repowering related impairment charges,
restructuring charges, and PPA V Sales property tax. Non-GAAP net
earnings and non-GAAP diluted earnings per share consist of net
earnings or diluted net earnings per share excluding charges
relating to stock-based compensation expense, gain (loss) for
non-controlling interest, loss (gain) on derivatives liabilities,
PPA V and PPA IIIa repowering related impairment charges, goodwill
impairment, interest expense on SK loan commitment, restructuring
charges, PPA V Sales property tax, loss on debt extinguishment,
loss on China JV investment and the amortization of acquired
intangible assets. Adjusted EBITDA is defined as net profit (loss)
before interest expense, provision for income tax, depreciation and
amortization expense, charges relating to stock-based compensation
expense, gain (loss) for non-controlling interest, loss (gain) on
derivatives liabilities, PPA V and PPA IIIa repowering related
impairment charges, goodwill impairment, interest expense on SK
loan commitment, restructuring charges, PPA V Sales property tax,
loss on debt extinguishment, loss on China JV investment and the
amortization of acquired intangible assets. Bloom Energy management
uses these non-GAAP financial measures for purposes of evaluating
Bloom Energy’s historical and prospective financial performance, as
well as Bloom Energy’s performance relative to its competitors.
Bloom Energy believes that excluding the items mentioned above from
these non-GAAP financial measures allows Bloom Energy management to
better understand Bloom Energy’s consolidated financial performance
as management does not believe that the excluded items are
reflective of ongoing operating results. More specifically, Bloom
Energy management excludes each of those items mentioned above for
the following reasons:
- Stock-based compensation expense consists of equity awards
granted based on the estimated fair value of those awards at grant
date. Although stock-based compensation is a key incentive offered
to our employees, Bloom Energy excludes these charges for the
purpose of calculating these non-GAAP measures, primarily because
they are non-cash expenses and such an exclusion facilitates a more
meaningful evaluation of Bloom Energy current operating performance
and comparisons to Bloom Energy operating performance in other
periods.
- Gain (loss) for non-controlling interest represents allocation
to the non-controlling interests under the hypothetical liquidation
at book value (HLBV) method and are associated with our Bloom
Energy legacy PPA entities and the joint venture in the Republic of
Korea.
- Loss (gain) on derivatives liabilities represents non-cash
adjustments to the fair value of the embedded derivatives.
- PPA V repowering related impairment charge represents non-cash
impairment charge on old server units decommissioned upon
repowering of $123.7 million and non-cash impairment charge on
non-recoverable production insurance of $6.4 million.
- PPA IIIa repowering related impairment charge represents
non-cash impairment charges on old server units decommissioned upon
repowering of $44.8 million.
- Goodwill impairment related to the acquisition of BE Japan in
Q2 2021.
- Interest expense on SK loan commitment recognized as a result
of automatic conversion of 13.5 million shares of our Series B
redeemable convertible preferred stock to shares of our Class A
common stock.
- Restructuring charges represented by severance expense recorded
in the third quarter of 2023.
- PPA V Sales property tax related to PPA V repowering of old
server units.
- Loss on debt extinguishment related to PPA V and PPA IIIa
repowering.
- Loss on China JV investment upon sale of our equity
interest.
- Amortization of acquired intangible assets.
- Adjusted EBITDA is defined as Adjusted Net Income (Loss) before
depreciation and amortization expense, provision for income tax,
interest expense (income), other expense (income), net. We use
Adjusted EBITDA to measure the operating performance of our
business, excluding specifically identified items that we do not
believe directly reflect our core operations and may not be
indicative of our recurring operations.
For more information about these non-GAAP financial measures,
please see the tables captioned “Reconciliation of GAAP to Non-GAAP
Financial Measures,” “Reconciliation of GAAP Net Loss to non-GAAP
Net Profit (Loss) and Computation of non-GAAP Net Profit (Loss) per
Share (EPS),” and “Reconciliation of GAAP Net Loss to Adjusted
EBITDA” set forth in this release, which should be read together
with the preceding financial statements prepared in accordance with
GAAP.
Material limitations associated with use of non-GAAP
financial measures
These non-GAAP financial measures have limitations as analytical
tools, and these measures should not be considered in isolation or
as a substitute for analysis of Bloom Energy results as reported
under GAAP. Some of the limitations in relying on these non-GAAP
financial measures are:
- Items such as stock-based compensation expense that is excluded
from non-GAAP gross profit (loss), non-GAAP gross margin, non-GAAP
operating expenses, non-GAAP operating profit (loss) (non-GAAP
earnings from operations), non-GAAP operating margin, non-GAAP net
earnings, and non-GAAP diluted earnings per share can have a
material impact on the equivalent GAAP earnings measure.
- Gain (loss) for non-controlling interest and loss (gain) on
derivatives liabilities, though not directly affecting Bloom
Energy's cash position, represent the loss (gain) in value of
certain assets and liabilities. The expense associated with this
loss (gain) in value is excluded from non-GAAP net earnings, and
non-GAAP diluted earnings per share and can have a material impact
on the equivalent GAAP earnings measure.
- Other companies may calculate non-GAAP gross profit, non-GAAP
gross profit margin, non-GAAP operating profit (non-GAAP earnings
from operations), non-GAAP operating profit margin, non-GAAP net
earnings, non-GAAP diluted earnings per share and Adjusted EBITDA
differently than Bloom Energy does, limiting the usefulness of
those measures for comparative purposes.
Compensation for limitations associated with use of non-GAAP
financial measures
Bloom Energy compensates for the limitations on its use of
non-GAAP financial measures by relying primarily on its GAAP
results and using non-GAAP financial measures only as a supplement.
Bloom Energy also provides a reconciliation of each non-GAAP
financial measure to its most directly comparable GAAP measure
within this news release and in other written materials that
include these non-GAAP financial measures, and Bloom Energy
encourages investors to review those reconciliations carefully.
Usefulness of non-GAAP financial measures to
investors
Bloom Energy believes that providing financial measures
including non-GAAP gross profit (loss), non-GAAP gross margin,
non-GAAP operating profit (loss) (non-GAAP earnings from
operations), non-GAAP operating profit (loss) margin, non-GAAP net
earnings, non-GAAP diluted earnings per share in addition to the
related GAAP measures provides investors with greater transparency
to the information used by Bloom Energy management in its financial
and operational decision making and allows investors to see Bloom
Energy’s results “through the eyes” of management. Bloom Energy
further believes that providing this information better enables
Bloom Energy investors to understand Bloom Energy’s operating
performance and to evaluate the efficacy of the methodology and
information used by Bloom Energy management to evaluate and measure
such performance. Disclosure of these non-GAAP financial measures
also facilitates comparisons of Bloom Energy’s operating
performance with the performance of other companies in Bloom
Energy’s industry that supplement their GAAP results with non-GAAP
financial measures that may be calculated in a similar manner.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231108608052/en/
Investor Relations: Ed Vallejo Bloom Energy +1 (267)
370-9717 Media: Amanda Song Bloom Energy
press@bloomenergy.com
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