Plug Power(US:PLUG)2019-05-08 18:55Financial Data and Key Metrics Changes - The company experienced a decline in gross billings during the first quarter, despite shipping 65% more GenDrives units compared to Q1 2018, primarily due to the timing of a project financing deal that closed six days after the quarter ended [6][7] - EBITDA improved by over $3 million compared to the prior quarter, attributed to lower service costs [6] - The company expects gross billings of $55 million to $60 million in Q2, indicating over 100% sequential growth [7] Business Line Data and Key Metrics Changes - The launch of the new 30 kilowatt ProGen hydrogen engine for e-mobility applications was highlighted, emphasizing its modular and scalable architecture [8] - The ProGen product line is expected to play a significant role in vehicle electrification globally, with contracts already executed for this program [8] Market Data and Key Metrics Changes - The company is focusing on expanding its presence in the hydrogen market, with significant interest noted in the industry, likening it to the solar market in 2007 [12] - The partnership with CHEM in South Africa is expected to generate substantial revenue in the latter half of the year [15] Company Strategy and Development Direction - The company is reiterating its guidance for the year, projecting gross bookings of $235 million to $240 million and positive EBITDA for the full year [7] - The strategy includes a focus on expanding into adjacent markets and enhancing the sales funnel, particularly in Europe and Asia [21] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment with the growth billing numbers but remains optimistic about future announcements and the overall pipeline [6][28] - The company is cautious about revenue guidance, emphasizing a historical track record of meeting expectations [29] Other Important Information - The company is experiencing a temporary dip in R&D spending, which is expected to return to normal levels in the next quarter [16][18] - Restricted cash is projected to be released at a rate of $20 million to $22 million over the next four years, aligning with project agreements [24] Q&A Session Summary Question: Inquiry about upcoming EV announcements and distributor partnerships - Management indicated that a major distributor announcement is expected in June, which could significantly enhance their global reach [11] Question: Clarification on the impact of the CHEM partnership - The partnership is focused on South Africa and is expected to yield substantial revenue opportunities in the second half of the year [15] Question: Financial housekeeping regarding R&D spending - Management clarified that the recent dip in R&D spending is likely a timing issue and not indicative of a long-term trend [16][18] Question: Discussion on sales funnel and market expansion - Management reported a growing sales funnel with significant activity expected in Europe and Asia, with potential deals in the $35 million range [21] Question: Understanding the impact of restricted cash on operations - Management explained that the timing of cash collections can affect quarter-end numbers, but restricted cash does not directly impact operating cash flow [46][47] Question: Interest in mobility and delivery van markets - Management confirmed ongoing interest in Class 4 to 6 delivery vans, with plans to expand offerings to Class A trucks in the future [49]