Bloom Energy(BE) - 2025 Q1 - Quarterly Report

Financial Performance - Total revenue for the three months ended March 31, 2025, was $326,021,000, representing an increase of 38.5% compared to $235,298,000 for the same period in 2024[15] - Product revenue increased to $211,869,000, up 38.2% from $153,364,000 year-over-year[15] - Gross profit for the first quarter of 2025 was $88,707,000, compared to $38,076,000 in the first quarter of 2024, reflecting a significant improvement[15] - Net loss attributable to common stockholders decreased to $23,814,000, compared to a net loss of $57,524,000 in the prior year, indicating a reduction of 58.7%[15] - The company reported a comprehensive loss attributable to common stockholders of $23,491,000 for the three months ended March 31, 2025, compared to $57,976,000 in the same period of 2024[17] - The company reported a net loss of $23.414 million for the three months ended March 31, 2025, compared to a net loss of $56.543 million for the same period in 2024, representing a 58.6% improvement in losses year-over-year[23] Cash Flow and Assets - Total current assets as of March 31, 2025, were $2,008,878,000, a slight decrease from $2,044,127,000 at the end of 2024[12] - Cash and cash equivalents were $794,751,000, a decrease from $802,851,000 at the end of 2024[12] - Total cash, cash equivalents, and restricted cash decreased to $831.358 million as of March 31, 2025, down from $950.971 million at the beginning of the period, reflecting a net decrease of $119.613 million[23] - The company incurred net cash used in operating activities of $110.682 million for the three months ended March 31, 2025, compared to $147.266 million for the same period in 2024, indicating a reduction of 24.8% in cash outflow[23] - Customer deposits decreased by $63.5 million to $156.6 million as of March 31, 2025, primarily due to certain deposits becoming non-refundable[44] - Accounts receivable stood at $334.0 million, slightly down from $335.8 million at the end of 2024[43] Expenses and Liabilities - Research and development expenses rose to $40,612,000, up from $35,485,000, reflecting a 14.0% increase year-over-year[15] - Total liabilities decreased to $2,006,529,000 as of March 31, 2025, down from $2,072,138,000 at the end of 2024[12] - Total accrued expenses and other current liabilities were $104.296 million as of March 31, 2025, a decrease of about 24.6% from $138.450 million as of December 31, 2024[64] - Total debt as of March 31, 2025, was $1.154 billion, with recourse debt amounting to $1.150 billion and non-recourse debt at $4.069 million[67] Stock and Compensation - The company issued 2,044,407 restricted stock awards during the three months ended March 31, 2025[20] - Stock-based compensation increased to $30.054 million for the three months ended March 31, 2025, compared to $18.136 million for the same period in 2024, reflecting a 65.8% increase[23] - The total number of shares available for grant under stock plans increased from 35,263,475 shares at December 31, 2024, to 43,186,881 shares at March 31, 2025, after adding 9,978,870 shares and granting 3,102,537 shares[101] Revenue Breakdown - Total revenue increased by $90.7 million, or 38.6%, for the three months ended March 31, 2025, driven by a $58.5 million increase in product revenue and a $22.2 million increase in installation revenue[180] - Product revenue increased by $58.5 million, or 38.1%, primarily due to increased demand and improved pricing from site repowerings[181] - Installation revenue surged by $22.2 million, or 194.0%, driven by the timing of achieving key project milestones[182] - Electricity revenue rose by $12.9 million, or 92.1%, mainly due to a one-time settlement of a customer contract[185] Strategic Initiatives and Market Conditions - The company has entered into a landmark 1 GW supply agreement with a utility customer, which includes a 100 MW order in 2024, indicating strong future demand for its Energy Server systems[138] - The demand for power is significantly outpacing available grid-based generation supply, driven by the electrification of transportation, rapid AI adoption, and federal incentives for domestic manufacturing[134] - The company anticipates that rising utility rates due to infrastructure investments will make its energy solutions more cost-competitive across various markets[138] - The expiration of the ITC for fuel cells operating on non-zero-carbon fuels at the end of fiscal 2024 could materially impact U.S. bookings, revenue, and gross margins in 2025 and beyond[140] Operational Challenges - The company faced challenges in hiring and retention in manufacturing, although these constraints have improved since 2022[153] - Supply chain constraints due to inflation and geopolitical tensions could impact costs, with an expected gross margin impact of approximately 1% for fiscal year 2025 due to tariffs[149] - The company has seen lengthening sales cycles, which may delay anticipated bookings and adversely affect revenue, margins, and cash flow[147] Future Outlook - The company plans to seek additional funding through equity or debt financing to support future growth initiatives[30] - The company expects to continue capital investments to expand production capacity, funded by cash on hand and operational cash flow[167] - The company has sufficient capital to operate over the next 12 months, with plans to enter equity or debt markets as needed for business expansion[170]