Q1'25 Earnings April 30, 2025 Forward-looking statements and non-GAAP financial measures 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. 2 Bloom's Mission To Make Clean, Reliable Energy Affordable for Everyone in the World." 3 This pre ...

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]

Financial Data and Key Metrics Changes - The company reported record revenue for Q1 of $326 million, representing a 39% year-over-year increase [20] - Gross margin improved to 28.7%, up over 1,000 basis points from 17.5% in Q1 2024 [21] - Operating income was $13.2 million compared to a loss of $30.7 million in Q1 2024 [21] - EBITDA reached $25.2 million, a significant improvement from a negative $18.2 million in Q1 2024 [21] - Non-GAAP EPS was $0.03 per share, compared to a loss of $0.17 per share a year ago [21] - The company reiterated its 2025 revenue guidance of $1.65 billion to $1.85 billion, with a non-GAAP gross margin of approximately 29% [22] Business Line Data and Key Metrics Changes - The services business was highlighted as profitable for the fifth consecutive quarter, indicating strong performance and a growing backlog [23] - The company is experiencing robust activity in large load advanced manufacturing operations, AI-related hardware, and essential services like healthcare [11][12] - The international business, particularly in Korea, remains strong, with growth in other international markets off a small base [12] Market Data and Key Metrics Changes - The demand for electricity is expected to continue expanding, with major users accepting on-site generation as a necessity [7] - The AI data center sector shows no signs of slowdown, with significant investments in data center capacity growth [9] - The commercial and industrial sector is divided into two segments: large load advanced manufacturing and consumer-facing businesses, with the latter experiencing longer decision-making cycles due to economic uncertainty [11][12] Company Strategy and Development Direction - The company is focused on growing its business amidst a super cycle in electricity infrastructure growth, driven by increasing demand for on-site power generation [16] - The diversification of the customer base across sectors and geographies is seen as a key strength, providing resilience against external factors [13] - The company is committed to mitigating the impact of tariffs through supply chain strength and cost reduction initiatives [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting 2025 revenue guidance despite potential project delays due to supply chain issues [33] - The company believes that the debate over the necessity of on-site power generation is settled, with a strong demand for their solutions [34] - Management emphasized the importance of maintaining strong fiscal discipline and innovative cost reduction strategies to navigate challenges [22][76] Other Important Information - The CFO will be exiting the company on May 1, with the Chief Accounting Officer assuming the role of acting principal financial officer [17] - The company has a strong leadership team and finance organization to ensure continuity during the transition [17] Q&A Session Summary Question: Impact on pipeline conversion timing - Management noted that while there may be some shifts in project timelines, they remain confident in their ability to meet guidance based on strong customer demand [30][34] Question: Clarification on margin guidance and tariffs - Management reiterated the gross margin guidance of 29%, stating that they will find ways to mitigate the impact of tariffs without passing costs onto customers [31][32] Question: Utility partnerships versus direct customer engagement - Management indicated that both utility partnerships and direct customer engagement are important, with a preference for working with utilities for large loads [42][43] Question: Sensitivity to tariffs and repowering margins - Management expressed confidence in their ability to manage costs and maintain guidance despite potential tariff increases [50][52] Question: Supply chain resilience and sourcing materials - Management confirmed that critical materials do not come from contested supply chains, emphasizing a diverse and resilient supply chain strategy [55][56] Question: Customer traction outside the U.S. - Management highlighted targeted efforts in Europe and Asia, particularly in Italy, Germany, the UK, and Taiwan, as part of their international growth strategy [59][60] Question: Power demand in the commercial and industrial sector - Management noted a significant shift towards islanded power solutions, with strong demand from large load factories due to extended interconnection times [62][63]

Financial Data and Key Metrics Changes - The company reported record revenue for Q1 at $326 million, a 39% increase year-over-year [22] - Gross margin improved to 28.7%, up over 1,000 basis points from 17.5% in Q1 of 2024 [23] - Operating income was $13.2 million compared to a loss of $30.7 million in the same quarter last year [23] - EBITDA reached $25.2 million, a significant improvement from a negative $18.2 million in Q1 of 2024 [23] - Non-GAAP EPS was $0.03 per share, compared to a loss of $0.17 per share a year ago [23] Business Line Data and Key Metrics Changes - The services business was highlighted as profitable for the fifth consecutive quarter, indicating strong performance and improvement [25] - The company is experiencing robust activity in large load advanced manufacturing operations, AI-related hardware, and essential services like healthcare [12][13] - The international business, particularly in Korea, remains strong, contributing to overall growth [14] Market Data and Key Metrics Changes - Demand for electricity is expected to continue expanding, with major users accepting on-site generation as a necessity [10] - The company noted that AI data centers are committed to investing in capacity growth, indicating no slowdown in this sector [11] - The commercial and industrial segment is seeing varied activity, with large load operations remaining strong while consumer-facing businesses may delay decision-making [13][14] Company Strategy and Development Direction - The company is focused on growing its business amidst a super cycle in electricity infrastructure growth, driven by demand for on-site power generation [18] - A multi-country strategy is in place to mitigate tariff impacts, with a strong emphasis on maintaining manufacturing in the U.S. [16][33] - The company is actively working with utilities to expand its market presence, indicating a dual approach to customer engagement [44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting 2025 revenue guidance despite potential project delays due to supply chain issues [36] - The company is committed to maintaining its gross margin guidance of approximately 29%, despite anticipated tariff impacts [33][17] - Management highlighted the importance of resilience in the supply chain, emphasizing that critical materials do not come from contested supply chains [61][62] Other Important Information - The CFO will be exiting the company on May 1, with an interim CFO appointed to ensure continuity [20] - The company has a strong leadership team and finance organization, which is expected to maintain performance during the transition [20] Q&A Session Summary Question: Impact on pipeline conversion timing due to supply chain issues - Management indicated strong confidence in the pipeline and does not foresee significant delays in project commissioning [36] Question: Clarification on margin guidance amidst tariff impacts - Management reiterated the gross margin guidance of 29%, stating that they will find ways to mitigate tariff impacts without passing costs to customers [33] Question: Future growth drivers between direct customer engagement and utility partnerships - Management believes both direct engagement and utility partnerships will drive product deployment, with a strong focus on utilities for large loads [44] Question: Sensitivity of margins to potential tariff increases - Management expressed confidence in their ability to manage costs and maintain guidance despite potential tariff changes [52] Question: Update on customer traction outside the U.S. and Korea - The company is targeting specific countries in Europe and Asia for expansion, with a strategic approach to international growth [65] Question: Size of backlog at the end of Q1 - Management stated that backlog comments are provided annually, but reiterated confidence in the strong commercial pipeline [95] Question: Timing for new gas grid infrastructure for utility agreements - Management indicated that timing for gas infrastructure varies by location, but does not expect it to be a significant delay for customers [108]

Revenue Performance - Record Q1 revenue of $326.0 million, representing a 38.6% increase from $235.3 million in Q1 2024[6] - Product and service revenue reached $265.4 million, up 26.5% compared to $209.8 million in Q1 2024[6] - Total revenue for Q1 2025 was $326.0 million, a decrease of 43% compared to $572.4 million in Q4 2024 and an increase of 38.6% from $235.3 million in Q1 2024[27] - GAAP revenue for Q1 2025 was $326.0 million, a 38.4% increase from $235.3 million in Q1 2024[34] Profitability Metrics - Gross margin improved to 27.2%, an increase of 11.0 percentage points from 16.2% in Q1 2024[6] - Non-GAAP gross margin was 28.7%, up 11.2 percentage points from 17.5% in Q1 2024[6] - Gross profit for Q1 2025 was $88.7 million, resulting in a gross margin of approximately 27.2%, compared to $219.3 million and 38.3% in Q4 2024[27] - Non-GAAP gross profit for Q1 2025 was $93.5 million, with a non-GAAP gross margin of 28.7%[34] - Adjusted net profit for Q1 2025 was $6.4 million, with adjusted earnings per share (EPS) of $0.03[37] - Adjusted EBITDA for Q1 2025 was $25.2 million, significantly lower than $147.3 million in Q4 2024[39] Operating Loss and Expenses - Operating loss narrowed to $19.1 million, an improvement of $29.9 million from a loss of $49.0 million in Q1 2024[6] - Non-GAAP operating profit of $13.2 million, an improvement of $43.9 million from a non-GAAP operating loss of $30.7 million in Q1 2024[6] - Operating expenses for Q1 2025 totaled $107.8 million, a slight decrease from $114.6 million in Q4 2024[27] - The company reported a GAAP operating loss of $19.1 million in Q1 2025, compared to an operating income of $104.7 million in Q4 2024[34] Cash Flow and Liquidity - Cash used in operating activities for Q1 2025 was $110.7 million, compared to cash provided of $484.2 million in Q4 2024[30] - Cash, cash equivalents, and restricted cash at the end of Q1 2025 were $831.4 million, down from $950.9 million at the end of Q4 2024[32] - The company experienced a net decrease in cash of $119.6 million in Q1 2025, compared to an increase of $401.8 million in Q4 2024[32] Guidance and Future Outlook - The company reaffirms its 2025 revenue guidance of $1.65 billion to $1.85 billion[15] - Non-GAAP gross margin guidance for 2025 is approximately 29%[15] - Non-GAAP operating income guidance for 2025 is projected between $135 million and $165 million[15] - The company anticipates growing demand driven by AI, data center needs, and industrial electrification[5] Stockholder Equity and Liabilities - Total stockholders' equity increased to $601.5 million as of March 31, 2025, up from $585.2 million at the end of 2024[23] - The company had total liabilities of $2.6 billion as of March 31, 2025, down from $2.7 billion at the end of 2024[23] Research and Development - Research and development expenses for Q1 2025 were $40.6 million, up from $39.5 million in Q4 2024[27] Non-GAAP Financial Measures - Bloom Energy provides non-GAAP financial measures to enhance transparency for investors, allowing them to view results from management's perspective[51] - Non-GAAP measures include non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income (loss), and non-GAAP diluted earnings per share, which can significantly impact GAAP earnings measures[49] - The company emphasizes that other firms may calculate non-GAAP measures differently, which limits comparability[49] - Income attributable to noncontrolling interest and gains or losses on derivative liabilities are excluded from non-GAAP net earnings, affecting the overall financial picture[49] - The use of non-GAAP measures is intended to help investors better understand Bloom Energy's operating performance and decision-making processes[51] - Non-GAAP financial measures facilitate comparisons with other companies in the industry that also use similar non-GAAP calculations[51]

Core Insights - The focus on artificial intelligence (AI) stocks has primarily been on semiconductor companies like Nvidia, which has experienced price volatility despite its strong position in AI chip design [1] - Conservative investors can consider alternative investments in companies that support AI growth without directly investing in AI stocks [2] Group 1: Challenges in AI - AI technology, while impressive, has limitations such as generating inaccurate information and difficulties in rendering certain images [3] - A significant challenge for AI is its high energy consumption, with electricity demand from data centers projected to increase by 300% over the next decade [5][6] Group 2: Investment Opportunities - Bloom Energy is positioned to meet the urgent power needs of AI and data centers, with a $2.5 billion product backlog and a $9 billion service backlog as of the end of 2024 [9] - Dominion Energy, a regulated utility, is experiencing a surge in demand for data center connections, with requests increasing by 88% in less than six months, which is likely to lead to earnings growth of 5% to 7% annually [11] - Brookfield Renewable focuses on clean energy solutions and has a multi-year, 10.5-gigawatt deal with Microsoft to support AI data centers, indicating strong growth potential in both clean energy and AI [13]

Industry Overview - The global shift towards renewable energy has significantly increased the demand for reliable energy storage solutions due to the intermittent nature of sources like solar and wind [1] - Global electricity consumption is expected to rise rapidly from 2025 to 2027, creating growth opportunities for renewable energy and battery storage companies [2][3] - The International Energy Agency (IEA) forecasts that by 2025, renewables will account for over one-third of global electricity generation, surpassing coal [3] Investment Opportunities - Companies in the renewable energy and battery storage sectors are positioned for profitable growth due to stable electricity demand, government incentives, and technological advancements that lower production costs [4] - Ameren (AEE) is expanding its renewable portfolio with plans to add 4,200 MW of renewable generation and 1,000 MW of battery storage by 2030, supported by a $16.2 billion investment plan [6][7][8] - CMS Energy aims to add 9 GW of solar and 4 GW of wind capacity by 2045, with a $5.2 billion investment in renewables planned for 2025-2029 [9][10] Company Highlights - Bloom Energy (BE) has deployed approximately 1.4 GW of its Energy Server systems globally, enhancing its position in the renewable energy market [11] - Bloom Energy's collaboration with Equinix aims to provide sustainable on-site power for data centers, with projected sales growth of 18.3% for 2025 [12] - Stem Inc. has established itself as a leading clean energy software provider, with over 16,000 customers and significant projects in battery storage and solar asset management [13][14][15]

2024 Financial Highlights - Record annual revenue reached $1.47 billion[7] - Record annual non-GAAP gross margin was 28.7%[7] - Full-year positive cash flow from operating activities was generated at $92 million[7] - The service business achieved non-GAAP profitability every quarter[7] 2024 Commercial Performance - Healthy product backlog of $2.5 billion[7] - Significant new agreements were made with SVP and AEP[7] - The largest islanded microgrid in CA was established[7] - The world's largest single site fuel cell project, 80MW with SK Eternix, was announced[7] 2024 Financial Results (YoY Comparison) - Q4 2024 revenue increased by 60.4% to $572 million, compared to $357 million in Q4 2023[9] - Full year 2024 revenue increased by 10.5% to $1.474 billion, compared to $1.333 billion in 2023[9] - Q4 2024 non-GAAP gross margin was 39.3%, a 11.9 percentage point increase from 27.4% in Q4 2023[9] - Full year 2024 non-GAAP gross margin was 28.7%, a 2.9 percentage point increase from 25.8% in 2023[9] - Full year 2024 non-GAAP operating income was $108 million, compared to $19 million in 2023[9] Backlog - Product backlog remained at $2.5 billion[12] - Service backlog increased by 6% to $9.6 billion[12] 2025 Guidance - Total revenue is projected to be between $1.65 billion and $1.85 billion[15] - Non-GAAP gross margin is expected to be approximately 29%[15] - Non-GAAP operating income is projected to be between $135 million and $165 million[15]

Energy Server Systems - Bloom Energy has deployed approximately 1.4 gigawatts of Energy Server systems across more than 1,000 locations in 9 countries[20] - The Energy Server systems can achieve up to 99.999% availability, making them suitable for critical applications like AI and data centers[25] - Bloom Energy's Energy Server system is designed to operate in islanded microgrid mode, allowing for rapid deployment within months compared to years for traditional providers[28] - The modular design of the Energy Server system allows for flexible deployment configurations, enhancing its adaptability to customer needs[34] - The Energy Server system can achieve 85% combined efficiency in 2024, with a goal of reaching 90% through continuous improvement[8] - The Energy Server system can produce carbon-neutral electricity with near-zero air pollution and water usage by converting biogas to electricity[8] - The modular design of the Energy Server system allows for scalability from kW to hundreds of MWs, providing operational advantages and high availability[8] - The Energy Server system exhibits a 99.9% availability rate, which can be increased to 99.999% with added redundancy, suitable for mission-critical applications[9] - The Energy Server system can be configured as a microgrid solution, providing flexibility and reliability without dependency on transmission lines[8] - The company aims to provide sustainability benefits today while offering multiple pathways to long-term decarbonization through its technologies[41] Market and Customer Base - The U.S. is the largest market for Bloom Energy, with significant customers in utilities, data centers, and healthcare sectors[29] - Bloom Energy has grown its footprint in South Korea to nearly 600 megawatts of deployed Energy Server equipment since 2018[30] - Revenue from three major customers accounted for approximately 23%, 16%, and 14% of total revenue for the year ended December 31, 2024[71] - A substantial portion of the company’s revenue and backlog is derived from a limited number of customers, which poses a risk to financial stability[106] - In the year ended December 31, 2024, three customers accounted for approximately 23%, 16%, and 14% of total revenue, indicating a reliance on a limited customer base[133] Research and Development - The company has invested significantly in research and development, focusing on advanced material science solutions to improve the Energy Server system[46] - As of December 31, 2024, the company holds 358 active patents and 148 pending patent applications in the U.S., with an international portfolio of 177 active patents[50] Financial Performance and Risks - The company has experienced supply chain disruptions, with lead times for some components increasing due to shortages and delays, although these constraints are expected to ease by 2025[60] - The company anticipates that 25% tariffs on U.S. imports of steel and aluminum will adversely impact raw material costs[61] - The company had a workforce of 2,127 full-time employees as of December 31, 2024, with a decrease of 11% compared to fiscal year 2023 due to restructuring actions initiated in September 2023[96] - The company does not intend to pay dividends for the foreseeable future, which may affect stockholder returns[114] - The company has incurred significant losses in the past and may not achieve profitability in future periods[110] - The company's financial condition and results of operations are likely to fluctuate significantly, which could lead to stock price declines[211] - The company expects to continue incurring net losses in future periods as it expands operations domestically and internationally[207] Regulatory Environment - The company is subject to various federal, state, and local regulations that can impact the market for its products, including electricity pricing and interconnection requirements[87][88] - Environmental compliance costs can be significant, and violations may result in substantial fines and penalties, impacting the company's financial performance[90] - The expiration of the Fuel Cell Net Energy Metering (FC NEM) tariff in California at the end of 2023 may impact future sales of Energy Server systems in that jurisdiction[129] - The company faces risks associated with regulatory changes that could impact demand for its products[110] - Changes in availability of rebates, tax credits, and financial incentives could adversely affect demand and sales financing, potentially harming business results[174] Competition and Market Challenges - The company faces competition in the distributed energy generation and hydrogen production markets, which may affect future growth and market acceptance[106] - The company faces significant competition from traditional energy suppliers and other fuel cell companies, which may limit growth opportunities[131] - The company may face challenges in attracting and retaining key employees, which could hinder its growth[114] - The company may need to develop new strategies for protecting its intellectual property as it expands into new markets[201] Supply Chain and Manufacturing - The global supply chain for raw materials, including semiconductors and specialty metals, has faced significant strain, potentially causing delays and increased costs[155] - The company has made significant investments to expand its supply chain, including entering into contractual relationships with suppliers[156] - Long-term supply agreements may result in excess inventory or higher costs, negatively impacting financial results[158] - The company relies on long-term supply agreements, which could lead to excess inventory or insufficient supply if suppliers fail to deliver[110] Sustainability and Environmental Impact - The company is committed to sustainability, focusing on resource efficiency and responsible design, while also addressing climate change impacts on energy systems[73] - The current generation of Energy Server systems produces carbon emissions, which may lead to regulatory scrutiny and impact customer procurement policies[188] Legal and Intellectual Property - The company is involved in legal proceedings that could have a material adverse effect on its business and financial condition[197] - The company may need to defend against claims of intellectual property infringement, which could incur substantial costs[204] - The company's product liability insurance may not cover all potential claims, posing a risk to business and financial stability[195]

Fourth Quarter Highlights Total Year Highlights KR Sridhar, Founder, Chairman, and CEO of Bloom Energy said, "We are the solution of choice for powering AI, whether that's large data centers that need reliable power now, or businesses that are going to use AI for productivity gains. Our proven solution is ready to be deployed at GW scale starting this year." Dan Berenbaum, CFO of Bloom Energy added, "As expected, we closed 2024 with record quarterly results. We expect our commercial momentum to continue int ...