Bloom Energy Reports First Quarter 2024 Financial Results
Reiterating guidance for 2024
First Quarter Highlights
-
Revenue of
$235.3 million in the first quarter of 2024, a decrease of 14.5% compared to$275.2 million in the first quarter of 2023. Product and service revenue of$209.8 million in the first quarter of 2024, a decrease of 10.5% compared to$234.4 million in the first quarter of 2023. - Gross margin of 16.2% in the first quarter of 2024, a decrease of 3.5 percentage points compared to 19.7% in the first quarter of 2023.
- Non-GAAP gross margin of 17.5% in the first quarter of 2024, a decrease of 3.7 percentage points compared to 21.2% in the first quarter of 2023.
-
Operating loss of
$49.0 million in the first quarter of 2024, an improvement of$14.7 million compared to operating loss of$63.7 million in the first quarter of 2023. -
Non-GAAP operating loss of
$30.7 million in the first quarter of 2024, an improvement of$3.4 million compared to a non-GAAP operating loss of$34.1 million in the first quarter of 2023.
“We are seeing strong market interest, increasing momentum, and robust commercial activity across diverse end markets,” said KR Sridhar, Founder, Chairman and CEO of
Summary of Key Financial Metrics
Summary of GAAP Profit and Loss Statements
( |
Q1’24 |
Q4’23 |
Q1’23 |
||||||
Revenue |
|
235,298 |
|
|
356,917 |
|
|
275,191 |
|
Cost of Revenue |
|
197,222 |
|
|
264,526 |
|
|
220,924 |
|
Gross Profit |
|
38,076 |
|
|
92,391 |
|
|
54,267 |
|
Gross Margin |
|
16.2 |
% |
|
25.9 |
% |
|
19.7 |
% |
Operating Expenses |
|
87,093 |
|
|
79,452 |
|
|
117,948 |
|
Operating (Loss) Income |
|
(49,017 |
) |
|
12,939 |
|
|
(63,681 |
) |
Operating Margin |
|
(20.8 |
)% |
|
3.6 |
% |
|
(23.1 |
)% |
Non-operating Expenses |
|
8,507 |
|
|
8,428 |
|
|
7,886 |
|
Net (Loss) Income to Common Stockholders |
|
(57,524 |
) |
|
4,511 |
|
|
(71,567 |
) |
GAAP EPS, Basic |
$ |
(0.25 |
) |
$ |
0.02 |
|
$ |
(0.35 |
) |
GAAP EPS, Diluted |
$ |
(0.25 |
) |
$ |
0.02 |
|
$ |
(0.35 |
) |
Summary of Non-GAAP Financial Information 1
( |
Q1’24 |
Q4’23 |
Q1’23 |
||||||
Revenue |
|
235,298 |
|
|
356,917 |
|
|
275,191 |
|
Cost of Revenue |
|
194,071 |
|
|
259,138 |
|
|
216,763 |
|
Gross Profit |
|
41,226 |
|
|
97,779 |
|
|
58,428 |
|
Gross Margin |
|
17.5 |
% |
|
27.4 |
% |
|
21.2 |
% |
Operating Expenses |
|
71,962 |
|
|
70,368 |
|
|
92,520 |
|
Operating (Loss) Income |
|
(30,736 |
) |
|
27,411 |
|
|
(34,092 |
) |
Operating Margin |
|
(13.1 |
)% |
|
7.7 |
% |
|
(12.4 |
)% |
Adjusted EBITDA |
|
(18,218 |
) |
|
39,760 |
|
|
(15,942 |
) |
Non-GAAP EPS, Basic |
$ |
(0.17 |
) |
$ |
0.09 |
|
$ |
(0.22 |
) |
Non-GAAP EPS, Diluted |
$ |
(0.17 |
) |
$ |
0.07 |
|
$ |
(0.22 |
) |
1. |
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 2024:
• Revenue: • Non-GAAP Gross Margin: • Non-GAAP Operating Income: |
|
Conference Call Details
Bloom will host a conference call today,
Use of Non-GAAP Financial Measures
This press release includes certain non-GAAP financial measures as defined by the rules and regulations of the
About
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 2024 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 Investor Relations section of Bloom’s website at investor.bloomenergy.com contains a significant amount of information about
Condensed Consolidated Balance Sheets (unaudited) (in thousands, except share data) |
||||||||
|
|
|
|
|
||||
|
|
|
2024 |
|
|
|
2023 |
|
Assets |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents1 |
|
$ |
515,957 |
|
|
$ |
664,593 |
|
Restricted cash1 |
|
|
51,387 |
|
|
|
46,821 |
|
Accounts receivable less allowance for credit losses of |
|
|
348,422 |
|
|
|
340,740 |
|
Contract assets3 |
|
|
33,788 |
|
|
|
41,366 |
|
Inventories1 |
|
|
526,351 |
|
|
|
502,515 |
|
Deferred cost of revenue4 |
|
|
56,051 |
|
|
|
45,984 |
|
Prepaid expenses and other current assets1, 5 |
|
|
47,639 |
|
|
|
51,148 |
|
Total current assets |
|
|
1,579,595 |
|
|
|
1,693,167 |
|
Property, plant and equipment, net1 |
|
|
496,225 |
|
|
|
493,352 |
|
Operating lease right-of-use assets1, 6 |
|
|
138,941 |
|
|
|
139,732 |
|
Restricted cash1 |
|
|
15,378 |
|
|
|
33,764 |
|
Deferred cost of revenue |
|
|
3,552 |
|
|
|
3,454 |
|
Other long-term assets1, 7 |
|
|
52,363 |
|
|
|
50,208 |
|
Total assets |
|
$ |
2,286,054 |
|
|
$ |
2,413,677 |
|
Liabilities and stockholders’ equity |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable1, 8 |
|
$ |
94,231 |
|
|
$ |
132,078 |
|
Accrued warranty |
|
|
9,197 |
|
|
|
19,326 |
|
Accrued expenses and other current liabilities1, 9 |
|
|
99,307 |
|
|
|
130,879 |
|
Deferred revenue and customer deposits1, 10 |
|
|
94,696 |
|
|
|
128,922 |
|
Operating lease liabilities1, 11 |
|
|
20,513 |
|
|
|
20,245 |
|
Financing obligations |
|
|
36,727 |
|
|
|
38,972 |
|
Total current liabilities |
|
|
354,671 |
|
|
|
470,422 |
|
Deferred revenue and customer deposits1, 12 |
|
|
39,912 |
|
|
|
19,140 |
|
Operating lease liabilities1, 13 |
|
|
141,024 |
|
|
|
141,939 |
|
Financing obligations |
|
|
404,728 |
|
|
|
405,824 |
|
Recourse debt |
|
|
843,477 |
|
|
|
842,006 |
|
Non-recourse debt1, 14 |
|
|
4,458 |
|
|
|
4,627 |
|
Other long-term liabilities |
|
|
8,634 |
|
|
|
9,049 |
|
Total liabilities |
|
$ |
1,796,904 |
|
|
$ |
1,893,007 |
|
Commitments and contingencies |
|
|
|
|
||||
Stockholders’ equity: |
|
|
|
|
||||
Common stock: |
|
|
21 |
|
|
|
21 |
|
Additional paid-in capital |
|
|
4,394,148 |
|
|
|
4,370,343 |
|
Accumulated other comprehensive loss |
|
|
(2,139 |
) |
|
|
(1,687 |
) |
Accumulated deficit |
|
|
(3,925,915 |
) |
|
|
(3,866,599 |
) |
Total equity attributable to common stockholders |
|
|
466,115 |
|
|
|
502,078 |
|
Noncontrolling interest |
|
|
23,035 |
|
|
|
18,592 |
|
Total stockholders’ equity |
|
$ |
489,150 |
|
|
$ |
520,670 |
|
Total liabilities and stockholders’ equity |
|
$ |
2,286,054 |
|
|
$ |
2,413,677 |
|
1 |
We have a variable interest entity related to a joint venture in the |
2 |
Including amounts from related parties of |
3 |
Including amounts from related parties of |
4 |
Including amounts from related parties of |
5 |
Including amounts from related parties of |
6 |
Including amounts from related parties of |
7 |
Including amounts from related parties of |
8 |
Including amounts from related parties of |
9 |
Including amounts from related parties of |
10 |
Including amounts from related parties of |
11 |
Including amounts from related parties of |
12 |
Including amounts from related parties of |
13 |
Including amounts from related parties of |
14 |
Including amounts from related parties of |
Condensed Consolidated Statements of Operations (unaudited) (in thousands, except per share data) |
||||||||||||
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Three Months Ended
|
||||||
|
|
|
|
|
|
|
||||||
Revenue: |
|
|
|
|
|
|
||||||
Product |
|
$ |
153,364 |
|
|
$ |
261,819 |
|
|
$ |
193,745 |
|
Installation |
|
|
11,444 |
|
|
|
26,033 |
|
|
|
20,525 |
|
Service |
|
|
56,460 |
|
|
|
52,569 |
|
|
|
40,663 |
|
Electricity |
|
|
14,030 |
|
|
|
16,496 |
|
|
|
20,258 |
|
Total revenue1 |
|
|
235,298 |
|
|
|
356,917 |
|
|
|
275,191 |
|
Cost of revenue: |
|
|
|
|
|
|
||||||
Product |
|
|
115,757 |
|
|
|
172,514 |
|
|
|
129,613 |
|
Installation |
|
|
15,353 |
|
|
|
27,854 |
|
|
|
25,100 |
|
Service |
|
|
56,506 |
|
|
|
55,050 |
|
|
|
51,244 |
|
Electricity |
|
|
9,606 |
|
|
|
9,108 |
|
|
|
14,967 |
|
Total cost of revenue |
|
|
197,222 |
|
|
|
264,526 |
|
|
|
220,924 |
|
Gross profit |
|
|
38,076 |
|
|
|
92,391 |
|
|
|
54,267 |
|
Operating expenses: |
|
|
|
|
|
|
||||||
Research and development |
|
|
35,485 |
|
|
|
33,556 |
|
|
|
45,690 |
|
Sales and marketing |
|
|
13,599 |
|
|
|
16,026 |
|
|
|
27,111 |
|
General and administrative2 |
|
|
38,009 |
|
|
|
29,871 |
|
|
|
45,147 |
|
Total operating expenses |
|
|
87,093 |
|
|
|
79,452 |
|
|
|
117,948 |
|
(Loss) income from operations |
|
|
(49,017 |
) |
|
|
12,939 |
|
|
|
(63,681 |
) |
Interest income |
|
|
7,531 |
|
|
|
6,114 |
|
|
|
1,995 |
|
Interest expense3 |
|
|
(14,546 |
) |
|
|
(14,563 |
) |
|
|
(11,746 |
) |
Other (expense) income, net4 |
|
|
(1,170 |
) |
|
|
867 |
|
|
|
(1,343 |
) |
Gain (loss) on revaluation of embedded derivatives |
|
|
158 |
|
|
|
(428 |
) |
|
|
117 |
|
(Loss) income before income taxes |
|
|
(57,044 |
) |
|
|
4,930 |
|
|
|
(74,658 |
) |
Income tax (benefit) provision |
|
|
(501 |
) |
|
|
811 |
|
|
|
259 |
|
Net (loss) income |
|
|
(56,543 |
) |
|
|
4,117 |
|
|
|
(74,917 |
) |
Less: Net income (loss) attributable to noncontrolling interest |
|
|
981 |
|
|
|
(394 |
) |
|
|
(3,350 |
) |
Net (loss) income attributable to common stockholders |
|
|
(57,524 |
) |
|
|
4,511 |
|
|
|
(71,567 |
) |
Net (loss) income per share available to common stockholders, basic |
|
$ |
(0.25 |
) |
|
$ |
0.02 |
|
|
$ |
(0.35 |
) |
Net (loss) income per share available to common stockholders, diluted |
|
$ |
(0.25 |
) |
|
$ |
0.02 |
|
|
$ |
(0.35 |
) |
Weighted average shares used to compute net (loss) income per share available to common stockholders, basic |
|
|
225,587 |
|
|
|
224,204 |
|
|
|
206,724 |
|
Weighted average shares used to compute net (loss) income per share available to common stockholders, diluted |
|
|
225,587 |
|
|
|
274,366 |
|
|
|
206,724 |
|
|
|
|
|
|
|
|
1 |
Including related party revenue of |
2 |
Including related party general and administrative expenses of |
3 |
Including related party interest expense of |
4 |
Including related party other expense, net of |
Condensed Consolidated Statement of Cash Flows (unaudited) (in thousands) |
||||||||||||
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Three Months Ended
|
||||||
Cash flows from operating activities: |
|
|
|
|
|
|
||||||
Net (loss) income |
|
$ |
(56,543 |
) |
|
$ |
4,117 |
|
|
$ |
(74,917 |
) |
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: |
|
|
|
|
|
|
||||||
Depreciation and amortization |
|
|
12,518 |
|
|
|
12,349 |
|
|
|
18,150 |
|
Non-cash lease expense |
|
|
8,951 |
|
|
|
9,079 |
|
|
|
7,934 |
|
(Gain) loss on disposal of property, plant and equipment |
|
|
(2 |
) |
|
|
234 |
|
|
|
191 |
|
Revaluation of derivative contracts |
|
|
(158 |
) |
|
|
428 |
|
|
|
(117 |
) |
Stock-based compensation expense |
|
|
18,136 |
|
|
|
7,320 |
|
|
|
27,743 |
|
Amortization of warrants and debt issuance costs |
|
|
1,471 |
|
|
|
1,472 |
|
|
|
665 |
|
Unrealized foreign currency exchange loss (gain) |
|
|
1,136 |
|
|
|
(2,411 |
) |
|
|
28 |
|
Other |
|
|
(50 |
) |
|
|
404 |
|
|
|
— |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
||||||
Accounts receivable1 |
|
|
(7,615 |
) |
|
|
(6,037 |
) |
|
|
(78,872 |
) |
Contract assets2 |
|
|
7,578 |
|
|
|
102,509 |
|
|
|
(1,051 |
) |
Inventories |
|
|
(24,965 |
) |
|
|
(25,374 |
) |
|
|
(127,666 |
) |
Deferred cost of revenue3 |
|
|
(10,183 |
) |
|
|
17,569 |
|
|
|
5,793 |
|
Prepaid expenses and other assets4 |
|
|
3,509 |
|
|
|
15,095 |
|
|
|
(4,527 |
) |
Other long-term assets5 |
|
|
(2,155 |
) |
|
|
(17,000 |
) |
|
|
(128 |
) |
Operating lease right-of-use assets and operating lease liabilities |
|
|
(8,807 |
) |
|
|
(8,922 |
) |
|
|
(7,507 |
) |
Financing lease liabilities |
|
|
97 |
|
|
|
104 |
|
|
|
244 |
|
Accounts payable6 |
|
|
(33,455 |
) |
|
|
(23,385 |
) |
|
|
(26,835 |
) |
Accrued warranty |
|
|
(10,129 |
) |
|
|
2,789 |
|
|
|
(7,876 |
) |
Accrued expenses and other liabilities7 |
|
|
(32,996 |
) |
|
|
17,152 |
|
|
|
(32,277 |
) |
Deferred revenue and customer deposits8 |
|
|
(13,454 |
) |
|
|
14,406 |
|
|
|
(13,108 |
) |
Other long-term liabilities |
|
|
(150 |
) |
|
|
(65 |
) |
|
|
(577 |
) |
Net cash (used in) provided by operating activities |
|
|
(147,266 |
) |
|
|
121,833 |
|
|
|
(314,710 |
) |
Cash flows from investing activities: |
|
|
|
|
|
|
||||||
Purchase of property, plant and equipment |
|
|
(21,435 |
) |
|
|
(16,254 |
) |
|
|
(26,574 |
) |
Proceeds from sale of property, plant and equipment |
|
|
7 |
|
|
|
11 |
|
|
|
— |
|
Net cash used in investing activities |
|
|
(21,428 |
) |
|
|
(16,243 |
) |
|
|
(26,574 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
||||||
Proceeds from issuance of debt9 |
|
|
— |
|
|
|
3,144 |
|
|
|
— |
|
Payment of debt issuance costs |
|
|
— |
|
|
|
(197 |
) |
|
|
— |
|
Repayment of debt |
|
|
— |
|
|
|
— |
|
|
|
(9,892 |
) |
Proceeds from financing obligations |
|
|
1,334 |
|
|
|
2,291 |
|
|
|
1,163 |
|
Repayment of financing obligations |
|
|
(4,958 |
) |
|
|
(4,970 |
) |
|
|
(4,266 |
) |
Proceeds from issuance of common stock |
|
|
6,816 |
|
|
|
942 |
|
|
|
8,525 |
|
Contributions from noncontrolling interest |
|
|
3,958 |
|
|
|
— |
|
|
|
— |
|
Proceeds from issuance of redeemable convertible preferred stock |
|
|
— |
|
|
|
— |
|
|
|
310,957 |
|
Payment of issuance costs related to redeemable convertible preferred stock |
|
|
— |
|
|
|
(22 |
) |
|
|
— |
|
Net cash provided by financing activities |
|
|
7,150 |
|
|
|
1,188 |
|
|
|
306,487 |
|
Effect of exchange rate changes on cash, cash equivalent and restricted cash |
|
|
(912 |
) |
|
|
704 |
|
|
|
(124 |
) |
Net (decrease) increase in cash, cash equivalents and restricted cash |
|
|
(162,456 |
) |
|
|
107,482 |
|
|
|
(34,921 |
) |
Cash, cash equivalents, and restricted cash: |
|
|
|
|
|
|
||||||
Beginning of period |
|
|
745,178 |
|
|
|
637,696 |
|
|
|
518,366 |
|
End of period |
|
$ |
582,722 |
|
|
$ |
745,178 |
|
|
$ |
483,445 |
|
|
|
|
|
|
|
|
1 |
Including changes in related party balances of |
2 |
Including changes in related party balances of |
3 |
Including changes in related party balances of |
4 |
Including changes in related party balances of |
5 |
Including changes in related party balances of |
6 |
Including changes in related party balances of |
7 |
Including changes in related party balances of |
8 |
Including changes in related party balances of |
9 |
Including changes in related party balances of |
Reconciliation of GAAP to Non-GAAP Financial Measures (unaudited) (in thousands, except percentages) |
||||||
|
Q1’24 |
Q4’23 |
Q1’23 |
|||
GAAP revenue |
235,298 |
|
356,917 |
|
275,191 |
|
GAAP cost of sales |
197,222 |
|
264,526 |
|
220,924 |
|
GAAP gross profit |
38,076 |
|
92,391 |
|
54,267 |
|
Non-GAAP adjustments: |
|
|
|
|||
Stock-based compensation expense |
3,814 |
|
2,693 |
|
4,161 |
|
Restructuring |
(663 |
) |
2,695 |
|
— |
|
Non-GAAP gross income |
41,226 |
|
97,779 |
|
58,428 |
|
GAAP gross margin % |
16.2 |
% |
25.9 |
% |
19.7 |
% |
Non-GAAP adjustments |
1.3 |
% |
1.5 |
% |
1.5 |
% |
Non-GAAP gross margin % |
17.5 |
% |
27.4 |
% |
21.2 |
% |
|
Q1’24 |
Q4’23 |
Q1’23 |
|||
GAAP (loss) income from operations |
(49,017 |
) |
12,939 |
|
(63,681 |
) |
Non-GAAP adjustments: |
|
|
|
|||
Stock-based compensation expense |
18,860 |
|
7,500 |
|
29,553 |
|
Restructuring |
(616 |
) |
6,940 |
|
— |
|
Other |
37 |
|
34 |
|
37 |
|
Non-GAAP (loss) income from operations |
(30,736 |
) |
27,411 |
|
(34,092 |
) |
GAAP operating margin % |
(20.8 |
)% |
3.6 |
% |
(23.1 |
)% |
Non-GAAP adjustments |
7.8 |
% |
4.1 |
% |
10.8 |
% |
Non-GAAP operating margin % |
(13.1 |
)% |
7.7 |
% |
(12.4 |
)% |
Reconciliation of GAAP Net (Loss) Income to non-GAAP Net (Loss) Income and Computation of non-GAAP Net (Loss) Income per Share (EPS) (unaudited) (in thousands, except share data) |
|||||||||
|
Q1’24 |
Q4’23 |
Q1’23 |
||||||
Net (loss) income to Common Stockholders |
|
(57,524 |
) |
|
4,511 |
|
|
(71,567 |
) |
Non-GAAP adjustments: |
|
|
|
||||||
Add back: gain (loss) for non-controlling interests |
|
981 |
|
|
(394 |
) |
|
(3,350 |
) |
(Gain) loss on derivative liabilities |
|
(158 |
) |
|
428 |
|
|
(117 |
) |
Restructuring |
|
(616 |
) |
|
6,940 |
|
|
— |
|
Stock-based compensation expense |
|
18,860 |
|
|
7,500 |
|
|
29,553 |
|
Other |
|
25 |
|
|
437 |
|
|
37 |
|
Adjusted Net (Loss) Income |
|
(38,432 |
) |
|
19,421 |
|
|
(45,445 |
) |
|
|
|
|
||||||
Adjusted net (loss) income per share (EPS), Basic |
$ |
(0.17 |
) |
$ |
0.09 |
|
$ |
(0.22 |
) |
Adjusted net (loss) income per share (EPS), Diluted |
$ |
(0.17 |
) |
$ |
0.07 |
|
$ |
(0.22 |
) |
Weighted average shares outstanding attributable to common stockholders, Basic |
|
225,587 |
|
|
224,204 |
|
|
206,724 |
|
Weighted-average shares outstanding attributable to common stockholders, Diluted |
|
225,587 |
|
|
274,366 |
|
|
206,724 |
|
Reconciliation of GAAP Net (Loss) Income to Adjusted EBITDA (unaudited) (in thousands) |
||||||
|
Q1’24 |
Q4’23 |
Q1’23 |
|||
Net (loss) income to Common Stockholders |
(57,524 |
) |
4,511 |
|
(71,567 |
) |
Add back: gain (loss) for non-controlling interests |
981 |
|
(394 |
) |
(3,350 |
) |
(Gain) loss on derivative liabilities |
(158 |
) |
428 |
|
(117 |
) |
Restructuring |
(616 |
) |
6,940 |
|
— |
|
Stock-based compensation expense |
18,860 |
|
7,500 |
|
29,553 |
|
Other |
25 |
|
437 |
|
37 |
|
Adjusted Net (Loss) Income |
(38,432 |
) |
19,421 |
|
(45,445 |
) |
|
|
|
|
|||
Depreciation & amortization |
12,518 |
|
12,349 |
|
18,150 |
|
Income tax (benefit) provision |
(501 |
) |
811 |
|
259 |
|
Interest expense, Other expense, net |
8,197 |
|
7,179 |
|
11,094 |
|
Adjusted EBITDA |
(18,218 |
) |
39,760 |
|
(15,942 |
) |
Use of non-GAAP financial measures
To supplement
These non-GAAP financial measures are not computed in accordance with, or as an alternative to, GAAP in
- 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 income (loss) (non-GAAP earnings from operations) is operating income (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
Non-GAAP gross profit (loss) and non-GAAP gross margin are defined to exclude charges relating to stock-based compensation expense and restructuring (expense reversals) charges. 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, (gain) loss on derivatives liabilities, restructuring (expense reversals) charges, amortization of acquired intangible assets, and other (gain) loss. Adjusted EBITDA is defined as net income (loss) before interest expense, income tax (benefit) provision, depreciation and amortization expense, charges relating to stock-based compensation expense, gain (loss) for non-controlling interest, (gain) loss on derivatives liabilities, restructuring (expense reversals) charges, amortization of acquired intangible assets, and other (gain) loss.
-
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 ofBloom Energy current operating performance and comparisons toBloom 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 theRepublic of Korea . - (Gain) loss on derivatives liabilities represents non-cash adjustments to the fair value of the embedded derivatives.
- Restructuring charges and reversals, if any, are represented by severance expense, facility closure costs, and others.
- Other represents amortization of acquired intangible assets and gain (loss) incurred upon closure of one of our managed services deals in the fourth quarter of fiscal 2023.
- 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) Income to non-GAAP Net (Loss) Income and Computation of non-GAAP Net (Loss) Income per Share (EPS),” and “Reconciliation of GAAP Net (Loss) Income 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
- 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 income (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 income (non-GAAP earnings from operations), non-GAAP operating income 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
Usefulness of non-GAAP financial measures to investors
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