Bloom Energy(BE) - 2019 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company reported a year-over-year revenue growth of 25.2%, totaling $929.1 million for 2019 [27] - Non-GAAP gross margin for Q4 2019 was 25.8%, up 7.7 percentage points from Q4 2018 [26] - Average product cost decreased by 17.7% year-over-year, from $3,672 per kilowatt in 2018 to $3,021 in 2019 [16] Business Line Data and Key Metrics Changes - The sales backlog increased to 1,983 systems, a 43% increase from 2018 [10] - Microgrid contributions in the sales pipeline grew from 21% in 2018 to 45% by the end of 2019 [12] - Acceptances for the year reached a record 1,194 systems, up 47.6% from 2018 [27] Market Data and Key Metrics Changes - In the U.S. market, the company deployed microgrid solutions at Stop & Shop stores, leading to repeat orders for 40 grocery stores [11] - In South Korea, the company secured contracts with 4 out of 6 major generation companies by the end of 2019 [14] Company Strategy and Development Direction - The company aims to continue cost reduction efforts and develop its 7.5 platform, with a focus on low carbon solutions [48] - The strategy emphasizes the importance of resiliency and adaptability in energy solutions, particularly in light of the COVID-19 pandemic [49] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the immediate impacts of COVID-19 on operations but expressed confidence in the company's strong backlog and demand for resilient power solutions [54][55] - The company expects a stronger second half of 2020 due to the backlog from 2019, despite challenges in the first half [44] Other Important Information - The company is in the process of refinancing $330 million of debt, with a focus on maintaining a strong capital structure [36][37] - The total electricity revenue in 2019 was approximately $72 million, with future contracted revenue estimated at $4.3 billion [29] Q&A Session Summary Question: Impact of COVID-19 on business operations - Management highlighted that normal operations are affected, with potential disruptions in supply chain and installation capabilities [53] Question: Carbon capture technology and business prospects - Management discussed the potential for carbon capture, emphasizing the scalability and cost-effectiveness of future solutions [58][59] Question: Gross margin and installed system costs outlook - Management explained that gross margins are influenced by average selling prices and total installed system costs, with expectations for improvement in the future [62][66] Question: Timing between bookings and acceptances - Management clarified that the gap is due to the installation process, which typically takes 9 to 10 months from booking to acceptance [75]