Bloom Energy Reports Fourth Quarter and Full Year 2023 Financial Results with Record Full Year Revenues
Fourth Quarter Highlights
-
Revenue of
$356.9 million in the fourth quarter of 2023, a decrease of 22.8% compared to$462.6 million in the fourth quarter of 2022. Product and service revenue of$314.4 million in the fourth quarter of 2023, a decrease of 21.4% compared to$400.2 million in the fourth quarter of 2022. - Gross margin of 25.9% in the fourth quarter of 2023, an increase of 10.5 percentage points compared to 15.4% in the fourth quarter of 2022.
- Non-GAAP gross margin of 27.4% in the fourth quarter of 2023, a decrease of 3.0 percentage points compared to 30.4% in the fourth quarter of 2022.
-
Operating profit of
$12.9 million in the fourth quarter of 2023, an improvement of$53.5 million compared to operating loss of$40.6 million in the fourth quarter of 2022. -
Non-GAAP operating profit of
$27.4 million in the fourth quarter of 2023, a decrease of$31.6 million compared to a non-GAAP operating profit of$59.0 million in the fourth quarter of 2022.
Total Year Highlights
-
Revenue of
$1,333.5 million in 2023, an increase of 11.2% compared to$1,199.1 million in 2022. Product and service revenue of$1,158.3 million in 2023, an increase of 12.3% compared to$1,031.6 million in 2022. - Gross margin of 14.8% in 2023, an increase of 2.4 percentage points compared to 12.4% in 2022.
- Non-GAAP gross margin of 25.8% in 2023, an increase of 2.8 percentage points compared to 23.0% in 2022.
-
Operating loss of
$208.9 million in 2023, an improvement of$52.1 million compared to operating loss of$261.0 million in 2022. -
Non-GAAP operating profit of
$19.2 million in 2023, an improvement of$52.7 million compared to a non-GAAP operating loss of$33.5 million in 2022.
“At Bloom Energy, our relentless focus on operational excellence and innovation helped us achieve a year of record revenue in 2023,” said KR Sridhar, Founder, Chairman and CEO of
Chief Financial Officer Transition
Bloom today announced that President and CFO
Summary of Key Financial Metrics
Summary of GAAP Profit and Loss Statements
( |
Q4'23 |
Q3'23 |
Q4'22 |
FY 23 |
FY 22 |
||||||||||
Revenue |
|
356,917 |
|
|
400,268 |
|
|
462,577 |
|
|
1,333,470 |
|
|
1,199,125 |
|
Cost of Revenue |
|
264,526 |
|
|
405,482 |
|
|
391,199 |
|
|
1,135,676 |
|
|
1,050,837 |
|
Gross Profit (Loss) |
|
92,391 |
|
|
(5,214 |
) |
|
71,377 |
|
|
197,794 |
|
|
148,288 |
|
Gross Margin |
|
25.9 |
% |
|
(1.3 |
) % |
|
15.4 |
% |
|
14.8 |
% |
|
12.4 |
% |
Operating Expenses |
|
79,452 |
|
|
98,494 |
|
|
111,945 |
|
|
406,701 |
|
|
409,280 |
|
Operating (Loss) Profit |
|
12,939 |
|
|
(103,708 |
) |
|
(40,568 |
) |
|
(208,907 |
) |
|
(260,992 |
) |
Operating Margin |
|
3.6 |
% |
|
(25.9 |
) % |
|
(8.8 |
) % |
|
(15.7 |
) % |
|
(21.8 |
) % |
Non-operating Expenses |
|
8,428 |
|
|
65,291 |
|
|
6,604 |
|
|
93,209 |
|
|
40,416 |
|
Net (Loss) Profit to Common Stockholders |
|
4,511 |
|
|
(168,999 |
) |
|
(47,172 |
) |
|
(302,116 |
) |
|
(301,408 |
) |
GAAP EPS, Basic |
$ |
0.02 |
|
$ |
(0.80 |
) |
$ |
(0.23 |
) |
$ |
(1.42 |
) |
$ |
(1.62 |
) |
GAAP EPS, Diluted |
$ |
0.02 |
|
$ |
(0.80 |
) |
$ |
(0.23 |
) |
$ |
(1.42 |
) |
$ |
(1.62 |
) |
Summary of Non-GAAP Financial Information 1
( |
Q4'23 |
Q3'23 |
Q4'22 |
FY 23 |
FY 22 |
||||||||||
Revenue |
|
356,917 |
|
|
400,268 |
|
|
462,577 |
|
|
1,333,470 |
|
|
1,199,125 |
|
Cost of Revenue |
|
259,138 |
|
|
273,888 |
|
|
321,823 |
|
|
989,464 |
|
|
923,052 |
|
Gross Profit |
|
97,779 |
|
|
126,380 |
|
|
140,754 |
|
|
344,006 |
|
|
276,073 |
|
Gross Margin |
|
27.4 |
% |
|
31.6 |
% |
|
30.4 |
% |
|
25.8 |
% |
|
23.0 |
% |
Operating Expenses |
|
70,368 |
|
|
74,580 |
|
|
81,722 |
|
|
324,825 |
|
|
309,542 |
|
Operating Profit (Loss) |
|
27,411 |
|
|
51,800 |
|
|
59,032 |
|
|
19,181 |
|
|
(33,469 |
) |
Operating Margin |
|
7.7 |
% |
|
12.9 |
% |
|
12.8 |
% |
|
1.4 |
% |
|
(2.8 |
) % |
Adjusted EBITDA |
|
39,760 |
|
|
66,415 |
|
|
74,458 |
|
|
81,791 |
|
|
30,139 |
|
Non-GAAP EPS, Basic |
$ |
0.09 |
|
$ |
0.20 |
|
$ |
0.27 |
|
$ |
(0.10 |
) |
$ |
(0.41 |
) |
Non-GAAP EPS, Diluted |
$ |
0.07 |
|
$ |
0.15 |
|
$ |
0.22 |
|
$ |
(0.10 |
) |
$ |
(0.41 |
) |
- A detailed reconciliation of GAAP to Non-GAAP financial measures is provided at the end of this press release
Outlook
Bloom provides outlook for the full-year 2024:
• Revenue: |
|
||
• Non-GAAP Gross Margin: |
~28% | ||
• 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
Consolidated Balance Sheets (in thousands, except share data) |
||||||||
|
|
|
||||||
|
|
|
2023 |
|
|
|
2022 |
|
Assets |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents1 |
|
$ |
664,593 |
|
|
$ |
348,498 |
|
Restricted cash1 |
|
|
46,821 |
|
|
|
51,515 |
|
Accounts receivable less allowance for credit losses of |
|
|
340,740 |
|
|
|
250,995 |
|
Contract assets3 |
|
|
41,366 |
|
|
|
46,727 |
|
Inventories1 |
|
|
502,515 |
|
|
|
268,394 |
|
Deferred cost of revenue4 |
|
|
45,984 |
|
|
|
46,191 |
|
Prepaid expenses and other current assets1, 5 |
|
|
51,148 |
|
|
|
43,643 |
|
Total current assets |
|
|
1,693,167 |
|
|
|
1,055,963 |
|
Property, plant and equipment, net1 |
|
|
493,352 |
|
|
|
600,414 |
|
Operating lease right-of-use assets1, 6 |
|
|
139,732 |
|
|
|
126,955 |
|
Restricted cash1 |
|
|
33,764 |
|
|
|
118,353 |
|
Deferred cost of revenue |
|
|
3,454 |
|
|
|
4,737 |
|
Other long-term assets1, 7 |
|
|
50,208 |
|
|
|
40,205 |
|
Total assets |
|
$ |
2,413,677 |
|
|
$ |
1,946,627 |
|
Liabilities and stockholders’ equity |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable1, 8 |
|
$ |
132,078 |
|
|
$ |
161,770 |
|
Accrued warranty |
|
|
19,326 |
|
|
|
17,332 |
|
Accrued expenses and other current liabilities1, 9 |
|
|
130,879 |
|
|
|
144,183 |
|
Deferred revenue and customer deposits1, 10 |
|
|
128,922 |
|
|
|
159,048 |
|
Operating lease liabilities1, 11 |
|
|
20,245 |
|
|
|
16,227 |
|
Financing obligations |
|
|
38,972 |
|
|
|
17,363 |
|
Recourse debt |
|
|
— |
|
|
|
12,716 |
|
Non-recourse debt1 |
|
|
— |
|
|
|
13,307 |
|
Total current liabilities |
|
|
470,422 |
|
|
|
541,946 |
|
Deferred revenue and customer deposits1, 12 |
|
|
19,140 |
|
|
|
56,392 |
|
Operating lease liabilities1, 13 |
|
|
141,939 |
|
|
|
132,363 |
|
Financing obligations |
|
|
405,824 |
|
|
|
442,063 |
|
Recourse debt |
|
|
842,006 |
|
|
|
273,076 |
|
Non-recourse debt1, 14 |
|
|
4,627 |
|
|
|
112,480 |
|
Other long-term liabilities |
|
|
9,049 |
|
|
|
9,491 |
|
Total liabilities |
|
$ |
1,893,007 |
|
|
$ |
1,567,811 |
|
Commitments and contingencies |
|
|
|
|
||||
Stockholders’ equity: |
|
|
|
|
||||
Common stock: |
|
|
21 |
|
|
|
20 |
|
Additional paid-in capital |
|
|
4,370,343 |
|
|
|
3,906,491 |
|
Accumulated other comprehensive loss |
|
|
(1,687 |
) |
|
|
(1,251 |
) |
Accumulated deficit |
|
|
(3,866,599 |
) |
|
|
(3,564,483 |
) |
Total equity attributable to common stockholders |
|
|
502,078 |
|
|
|
340,777 |
|
Noncontrolling interest |
|
|
18,592 |
|
|
|
38,039 |
|
Total stockholders’ equity |
|
$ |
520,670 |
|
|
$ |
378,816 |
|
Total liabilities and stockholders’ equity |
|
$ |
2,413,677 |
|
|
$ |
1,946,627 |
|
1 |
We have variable interest entities related to the PPA V and a joint venture in the |
|
In |
||
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 |
Consolidated Statements of Operations (in thousands, except per share data) |
||||||||||||||||||||
|
|
Q4'23 |
|
Q3'23 |
|
Q4'22 |
|
FY 23 |
|
FY 22 |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenue: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Product |
|
$ |
261,819 |
|
|
$ |
304,976 |
|
|
$ |
360,249 |
|
|
$ |
975,245 |
|
|
$ |
880,664 |
|
Installation |
|
|
26,033 |
|
|
|
21,916 |
|
|
|
43,156 |
|
|
|
92,796 |
|
|
|
92,120 |
|
Service |
|
|
52,569 |
|
|
|
47,535 |
|
|
|
39,942 |
|
|
|
183,065 |
|
|
|
150,954 |
|
Electricity |
|
|
16,496 |
|
|
|
25,841 |
|
|
|
19,230 |
|
|
|
82,364 |
|
|
|
75,387 |
|
Total revenue1 |
|
|
356,917 |
|
|
|
400,268 |
|
|
|
462,577 |
|
|
|
1,333,470 |
|
|
|
1,199,125 |
|
Cost of revenue: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Product |
|
|
172,514 |
|
|
|
182,832 |
|
|
|
222,841 |
|
|
|
630,105 |
|
|
|
616,178 |
|
Installation |
|
|
27,854 |
|
|
|
25,902 |
|
|
|
46,275 |
|
|
|
105,735 |
|
|
|
104,111 |
|
Service |
|
|
55,050 |
|
|
|
57,370 |
|
|
|
43,845 |
|
|
|
220,927 |
|
|
|
168,491 |
|
Electricity |
|
|
9,108 |
|
|
|
139,378 |
|
|
|
78,238 |
|
|
|
178,909 |
|
|
|
162,057 |
|
Total cost of revenue2 |
|
|
264,526 |
|
|
|
405,482 |
|
|
|
391,199 |
|
|
|
1,135,676 |
|
|
|
1,050,837 |
|
Gross profit (loss) |
|
|
92,391 |
|
|
|
(5,214 |
) |
|
|
71,377 |
|
|
|
197,794 |
|
|
|
148,288 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Research and development |
|
|
33,556 |
|
|
|
35,126 |
|
|
|
38,320 |
|
|
|
155,865 |
|
|
|
150,606 |
|
Sales and marketing |
|
|
16,026 |
|
|
|
20,002 |
|
|
|
25,850 |
|
|
|
89,961 |
|
|
|
90,934 |
|
General and administrative3 |
|
|
29,871 |
|
|
|
43,366 |
|
|
|
47,775 |
|
|
|
160,875 |
|
|
|
167,740 |
|
Total operating expenses |
|
|
79,452 |
|
|
|
98,494 |
|
|
|
111,945 |
|
|
|
406,701 |
|
|
|
409,280 |
|
(Loss) profit from operations |
|
|
12,939 |
|
|
|
(103,708 |
) |
|
|
(40,568 |
) |
|
|
(208,907 |
) |
|
|
(260,992 |
) |
Interest income |
|
|
6,114 |
|
|
|
7,419 |
|
|
|
2,523 |
|
|
|
19,885 |
|
|
|
3,887 |
|
Interest expense4 |
|
|
(14,563 |
) |
|
|
(68,037 |
) |
|
|
(12,493 |
) |
|
|
(108,299 |
) |
|
|
(53,493 |
) |
Other (expense) income, net |
|
|
867 |
|
|
|
(1,577 |
) |
|
|
4,743 |
|
|
|
(2,793 |
) |
|
|
4,998 |
|
Loss on extinguishment of debt |
|
|
— |
|
|
|
(1,415 |
) |
|
|
(4,723 |
) |
|
|
(4,288 |
) |
|
|
(8,955 |
) |
(Loss) gain on revaluation of embedded derivatives |
|
|
(428 |
) |
|
|
(114 |
) |
|
|
(56 |
) |
|
|
(1,641 |
) |
|
|
566 |
|
(Loss) profit before income taxes |
|
|
4,930 |
|
|
|
(167,432 |
) |
|
|
(50,574 |
) |
|
|
(306,043 |
) |
|
|
(313,989 |
) |
Income tax provision |
|
|
811 |
|
|
|
646 |
|
|
|
209 |
|
|
|
1,894 |
|
|
|
1,097 |
|
Net (loss) profit |
|
|
4,117 |
|
|
|
(168,078 |
) |
|
|
(50,783 |
) |
|
|
(307,937 |
) |
|
|
(315,086 |
) |
Less: Net (loss) gain attributable to noncontrolling interest |
|
|
(394 |
) |
|
|
921 |
|
|
|
(3,611 |
) |
|
|
(5,821 |
) |
|
|
(13,378 |
) |
Net (loss) gain attributable to common stockholders |
|
|
4,511 |
|
|
|
(168,999 |
) |
|
|
(47,172 |
) |
|
|
(302,116 |
) |
|
|
(301,708 |
) |
Less: Net loss attributable to redeemable noncontrolling interest |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(300 |
) |
Net (loss) gain before portion attributable to redeemable noncontrolling interest and noncontrolling interest |
|
$ |
4,511 |
|
|
$ |
(168,999 |
) |
|
$ |
(47,172 |
) |
|
$ |
(302,116 |
) |
|
$ |
(301,408 |
) |
Net (loss) gain per share available to common stockholders, basic |
|
$ |
0.02 |
|
|
$ |
(0.80 |
) |
|
$ |
(0.23 |
) |
|
$ |
(1.42 |
) |
|
$ |
(1.62 |
) |
Net (loss) gain per share available to common stockholders, diluted |
|
$ |
0.02 |
|
|
$ |
(0.80 |
) |
|
$ |
(0.23 |
) |
|
$ |
(1.42 |
) |
|
$ |
(1.62 |
) |
Weighted average shares used to compute net loss per share available to common stockholders, basic |
|
|
224,204 |
|
|
|
210,930 |
|
|
|
201,173 |
|
|
|
212,681 |
|
|
|
185,907 |
|
Weighted average shares used to compute net loss per share available to common stockholders, diluted |
|
|
274,366 |
|
|
|
210,930 |
|
|
|
201,173 |
|
|
|
212,681 |
|
|
|
185,907 |
|
|
|
|
|
|
|
|
|
|
|
|
1 |
Including related party revenue of |
|
2 |
Including related party cost of revenue of |
|
3 |
Including related party general and administrative expenses of |
|
4 |
Including related party interest expense of |
Consolidated Statement of Cash Flows (in thousands) |
||||||||||||||||||||
|
|
Q4'23 |
|
Q3'23 |
|
Q4'22 |
|
FY 23 |
|
FY 22 |
||||||||||
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Net (loss) gain |
|
$ |
4,117 |
|
|
$ |
(168,078 |
) |
|
$ |
(50,783 |
) |
|
$ |
(307,937 |
) |
|
$ |
(315,086 |
) |
Adjustments to reconcile net (loss) gain to net cash used in operating activities: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Depreciation and amortization |
|
|
12,349 |
|
|
|
14,615 |
|
|
|
15,426 |
|
|
|
62,609 |
|
|
|
61,608 |
|
Non-cash lease expense |
|
|
9,079 |
|
|
|
8,356 |
|
|
|
2,002 |
|
|
|
33,619 |
|
|
|
20,155 |
|
Loss (gain) on disposal of property, plant and equipment |
|
|
234 |
|
|
|
(19 |
) |
|
|
523 |
|
|
|
411 |
|
|
|
— |
|
Revaluation of derivative contracts |
|
|
428 |
|
|
|
114 |
|
|
|
56 |
|
|
|
1,641 |
|
|
|
(9,583 |
) |
Impairment of assets related to PPAs |
|
|
— |
|
|
|
130,088 |
|
|
|
68,714 |
|
|
|
130,088 |
|
|
|
113,514 |
|
Derecognition of loan commitment asset related to SK ecoplant Second Tranche Closing |
|
|
— |
|
|
|
52,792 |
|
|
|
— |
|
|
|
52,792 |
|
|
|
— |
|
Stock-based compensation expense |
|
|
7,320 |
|
|
|
21,315 |
|
|
|
30,799 |
|
|
|
84,480 |
|
|
|
112,259 |
|
Amortization of warrants and debt issuance costs |
|
|
1,472 |
|
|
|
1,514 |
|
|
|
677 |
|
|
|
4,772 |
|
|
|
3,032 |
|
Loss on extinguishment of debt |
|
|
— |
|
|
|
1,415 |
|
|
|
4,723 |
|
|
|
4,288 |
|
|
|
8,955 |
|
Unrealized foreign currency exchange loss (gain) |
|
|
(2,411 |
) |
|
|
1,517 |
|
|
|
(6,353 |
) |
|
|
618 |
|
|
|
(3,267 |
) |
Other |
|
|
404 |
|
|
|
23 |
|
|
|
45 |
|
|
|
450 |
|
|
|
3,532 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Accounts receivable1 |
|
|
(6,037 |
) |
|
|
16,100 |
|
|
|
(178,622 |
) |
|
|
(89,888 |
) |
|
|
(162,864 |
) |
Contract assets2 |
|
|
102,509 |
|
|
|
(108,692 |
) |
|
|
(20,958 |
) |
|
|
5,361 |
|
|
|
(21,525 |
) |
Inventories |
|
|
(25,374 |
) |
|
|
(8,969 |
) |
|
|
(14,081 |
) |
|
|
(231,689 |
) |
|
|
(124,878 |
) |
Deferred cost of revenue3 |
|
|
17,569 |
|
|
|
(8,370 |
) |
|
|
(15,426 |
) |
|
|
1,655 |
|
|
|
(24,282 |
) |
Customer financing receivable |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,510 |
|
Prepaid expenses and other assets4 |
|
|
15,095 |
|
|
|
(22,807 |
) |
|
|
(1,824 |
) |
|
|
(5,754 |
) |
|
|
(17,590 |
) |
Other long-term assets5 |
|
|
(17,000 |
) |
|
|
10,219 |
|
|
|
(1,887 |
) |
|
|
(3,366 |
) |
|
|
(2,617 |
) |
Operating lease right-of-use assets and operating lease liabilities |
|
|
(8,922 |
) |
|
|
(8,432 |
) |
|
|
854 |
|
|
|
(32,801 |
) |
|
|
3,016 |
|
Financing lease liabilities |
|
|
104 |
|
|
|
171 |
|
|
|
397 |
|
|
|
1,011 |
|
|
|
896 |
|
Accounts payable6 |
|
|
(23,385 |
) |
|
|
(41,589 |
) |
|
|
47,856 |
|
|
|
(29,080 |
) |
|
|
86,498 |
|
Accrued warranty |
|
|
2,789 |
|
|
|
1,631 |
|
|
|
3,989 |
|
|
|
1,994 |
|
|
|
5,586 |
|
Accrued expenses and other liabilities7 |
|
|
17,152 |
|
|
|
4,782 |
|
|
|
42,741 |
|
|
|
(13,785 |
) |
|
|
43,243 |
|
Deferred revenue and customer deposits8 |
|
|
14,406 |
|
|
|
(30,275 |
) |
|
|
47,872 |
|
|
|
(42,635 |
) |
|
|
35,156 |
|
Other long-term liabilities |
|
|
(65 |
) |
|
|
(590 |
) |
|
|
(11 |
) |
|
|
(1,385 |
) |
|
|
(9,991 |
) |
Net cash (used in) provided by operating activities |
|
|
121,833 |
|
|
|
(133,169 |
) |
|
|
(23,271 |
) |
|
|
(372,531 |
) |
|
|
(191,723 |
) |
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Purchase of property, plant and equipment |
|
|
(16,254 |
) |
|
|
(21,335 |
) |
|
|
(35,916 |
) |
|
|
(83,739 |
) |
|
|
(116,823 |
) |
Proceeds from sale of property, plant and equipment |
|
|
11 |
|
|
|
(22 |
) |
|
|
— |
|
|
|
14 |
|
|
|
— |
|
Net cash used in investing activities |
|
|
(16,243 |
) |
|
|
(21,357 |
) |
|
|
(35,916 |
) |
|
|
(83,725 |
) |
|
|
(116,823 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Proceeds from issuance of debt9 |
|
|
3,144 |
|
|
|
— |
|
|
|
— |
|
|
|
637,127 |
|
|
|
— |
|
Payment of debt issuance costs |
|
|
(197 |
) |
|
|
(3,711 |
) |
|
|
— |
|
|
|
(19,736 |
) |
|
|
— |
|
Repayment of debt |
|
|
— |
|
|
|
(118,538 |
) |
|
|
(73,112 |
) |
|
|
(191,390 |
) |
|
|
(120,586 |
) |
Make-whole payment related to PPA IIIa and PPA IV debt |
|
|
— |
|
|
|
— |
|
|
|
(4,140 |
) |
|
|
— |
|
|
|
(6,553 |
) |
Purchase of capped call options related to convertible notes |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(54,522 |
) |
|
|
— |
|
Proceeds from financing obligations |
|
|
2,291 |
|
|
|
— |
|
|
|
3,261 |
|
|
|
4,993 |
|
|
|
3,261 |
|
Repayment of financing obligations |
|
|
(4,970 |
) |
|
|
(4,747 |
) |
|
|
(6,722 |
) |
|
|
(18,445 |
) |
|
|
(35,543 |
) |
Distributions and payments to noncontrolling interest |
|
|
— |
|
|
|
(2,265 |
) |
|
|
(882 |
) |
|
|
(2,265 |
) |
|
|
(6,854 |
) |
Proceeds from issuance of common stock |
|
|
942 |
|
|
|
6,745 |
|
|
|
129 |
|
|
|
16,945 |
|
|
|
15,279 |
|
Proceeds from public share offering |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
385,396 |
|
Payment of public share offering costs |
|
|
— |
|
|
|
— |
|
|
|
(368 |
) |
|
|
(35 |
) |
|
|
(13,775 |
) |
Buyout of noncontrolling interest |
|
|
— |
|
|
|
(6,864 |
) |
|
|
(12,000 |
) |
|
|
(6,864 |
) |
|
|
(12,000 |
) |
Proceeds from issuance of redeemable convertible preferred stock |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
310,957 |
|
|
|
— |
|
Payment of issuance costs related to redeemable convertible preferred stock |
|
|
(22 |
) |
|
|
— |
|
|
|
— |
|
|
|
(395 |
) |
|
|
— |
|
Contributions from noncontrolling interest |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6,979 |
|
|
|
2,815 |
|
Other |
|
|
— |
|
|
|
(285 |
) |
|
|
(13 |
) |
|
|
— |
|
|
|
(76 |
) |
Net cash provided by (used in) financing activities |
|
|
1,188 |
|
|
|
(129,665 |
) |
|
|
(93,847 |
) |
|
|
683,349 |
|
|
|
211,364 |
|
Effect of exchange rate changes on cash, cash equivalent and restricted cash |
|
|
704 |
|
|
|
(657 |
) |
|
|
2,078 |
|
|
|
(281 |
) |
|
|
434 |
|
Net increase (decrease) increase in cash, cash equivalents and restricted cash |
|
|
107,482 |
|
|
|
(284,848 |
) |
|
|
(150,956 |
) |
|
|
226,812 |
|
|
|
(96,748 |
) |
Cash, cash equivalents and restricted cash: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Beginning of period |
|
|
637,696 |
|
|
|
922,544 |
|
|
|
669,322 |
|
|
|
518,366 |
|
|
|
615,114 |
|
End of period |
|
$ |
745,178 |
|
|
$ |
637,696 |
|
|
$ |
518,366 |
|
|
$ |
745,178 |
|
|
$ |
518,366 |
|
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 balance of |
|
7 |
Including changes in related party balances of |
|
8 |
Including changes in related party balances of |
|
9 |
Including changes in related party balance of |
Reconciliation of GAAP to Non-GAAP Financial Measures (unaudited) (in thousands, except percentages) |
||||||||||
|
Q4'23 |
Q3'23 |
Q4'22 |
FY 23 |
FY 22 |
|||||
GAAP revenue |
356,917 |
|
400,268 |
|
462,577 |
|
1,333,470 |
|
1,199,125 |
|
GAAP cost of sales |
264,526 |
|
405,482 |
|
391,199 |
|
1,135,676 |
|
1,050,837 |
|
GAAP gross profit (loss) |
92,391 |
|
(5,214 |
) |
71,377 |
|
197,794 |
|
148,288 |
|
Non-GAAP adjustments: |
|
|
|
|
|
|||||
Stock-based compensation expense |
2,693 |
|
5,581 |
|
5,346 |
|
17,504 |
|
18,955 |
|
Impairment charge (PPA V, PPA IV, PPA IIIa) |
— |
|
123,700 |
|
64,030 |
|
123,700 |
|
108,830 |
|
Restructuring charges |
2,695 |
|
725 |
|
— |
|
3,420 |
|
— |
|
PPA V Sales property tax |
— |
|
1,588 |
|
— |
|
1,588 |
|
— |
|
Non-GAAP gross profit |
97,779 |
|
126,380 |
|
140,754 |
|
344,006 |
|
276,073 |
|
GAAP gross margin % |
25.9 |
% |
(1.3 |
) % |
15.4 |
% |
14.8 |
% |
12.4 |
% |
Non-GAAP adjustments |
1.5 |
% |
32.9 |
% |
15.0 |
% |
11.0 |
% |
10.7 |
% |
Non-GAAP gross margin % |
27.4 |
% |
31.6 |
% |
30.4 |
% |
25.8 |
% |
23.0 |
% |
|
Q4'23 |
Q3'23 |
Q4'22 |
FY 23 |
FY 22 |
|||||
GAAP (loss) profit from operations |
12,939 |
|
(103,708 |
) |
(40,568 |
) |
(208,907 |
) |
(260,992 |
) |
Non-GAAP adjustments: |
|
|
|
|
|
|||||
Stock-based compensation expense |
7,500 |
|
21,564 |
|
31,027 |
|
87,095 |
|
113,965 |
|
Impairment charge (PPA V, PPA IV, PPA IIIa) |
— |
|
130,088 |
|
68,535 |
|
130,088 |
|
113,335 |
|
PPA V Sales property tax |
— |
|
1,588 |
|
— |
|
1,588 |
|
— |
|
Restructuring charges |
6,940 |
|
2,226 |
|
— |
|
9,166 |
|
— |
|
Amortization of acquired intangible assets |
34 |
|
42 |
|
37 |
|
151 |
|
223 |
|
Non-GAAP profit (loss) from operations |
27,411 |
|
51,800 |
|
59,032 |
|
19,181 |
|
(33,469 |
) |
GAAP operating margin % |
3.6 |
% |
(25.9 |
) % |
(8.8 |
) % |
(15.7 |
) % |
(21.8 |
) % |
Non-GAAP adjustments |
4.1 |
% |
38.9 |
% |
21.5 |
% |
17.1 |
% |
19.0 |
% |
Non-GAAP operating margin % |
7.7 |
% |
12.9 |
% |
12.8 |
% |
1.4 |
% |
(2.8 |
) % |
Reconciliation of GAAP Net Profit (loss) to non-GAAP Net Profit (Loss) and Computation of non-GAAP Net Profit (Loss) per Share (EPS) (unaudited) (in thousands, except share data) |
|||||||||||||||
|
Q4'23 |
Q3'23 |
Q4'22 |
FY 23 |
FY 22 |
||||||||||
Net (loss) profit to Common Stockholders |
|
4,511 |
|
|
(168,999 |
) |
|
(47,172 |
) |
|
(302,116 |
) |
|
(301,408 |
) |
Non-GAAP adjustments: |
|
|
|
|
|
||||||||||
Add back: (Loss) gain for non-controlling interests |
|
(394 |
) |
|
921 |
|
|
(3,611 |
) |
|
(5,821 |
) |
|
(13,678 |
) |
Loss (gain) on derivative liabilities |
|
428 |
|
|
114 |
|
|
56 |
|
|
1,641 |
|
|
(566 |
) |
Impairment charge (PPA V, PPA IV, PPA IIIa) |
|
— |
|
|
130,088 |
|
|
68,535 |
|
|
130,088 |
|
|
113,335 |
|
Loss on China JV investment |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1,446 |
|
Loss on extinguishment of debt |
|
— |
|
|
1,415 |
|
|
4,723 |
|
|
4,288 |
|
|
8,955 |
|
Amortization of acquired intangible assets |
|
34 |
|
|
42 |
|
|
37 |
|
|
151 |
|
|
223 |
|
Restructuring charges |
|
6,940 |
|
|
2,226 |
|
|
— |
|
|
9,166 |
|
|
— |
|
PPA V Sales property tax |
|
— |
|
|
1,588 |
|
|
— |
|
|
1,588 |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
2,000 |
|
Interest expense on SK loan commitment |
|
— |
|
|
52,792 |
|
|
— |
|
|
52,792 |
|
|
— |
|
Stock-based compensation expense |
|
7,500 |
|
|
21,564 |
|
|
31,027 |
|
|
87,095 |
|
|
113,965 |
|
Other loss |
|
403 |
|
|
— |
|
|
— |
|
|
403 |
|
|
— |
|
Adjusted Net (Loss) Profit |
|
19,421 |
|
|
41,751 |
|
|
53,596 |
|
|
(20,724 |
) |
|
(75,728 |
) |
|
|
|
|
|
|
||||||||||
Adjusted net (loss) profit per share (EPS), Basic |
$ |
0.09 |
|
$ |
0.20 |
|
$ |
0.27 |
|
$ |
(0.10 |
) |
$ |
(0.41 |
) |
Adjusted net (loss) profit per share (EPS), Diluted |
$ |
0.07 |
|
$ |
0.15 |
|
$ |
0.22 |
|
$ |
(0.10 |
) |
$ |
(0.41 |
) |
Weighted average shares outstanding attributable to common, Basic |
|
224,204 |
|
|
210,930 |
|
|
201,173 |
|
|
212,681 |
|
|
185,907 |
|
Weighted-average shares outstanding attributable to common, Diluted |
|
274,366 |
|
|
274,337 |
|
|
238,775 |
|
|
212,681 |
|
|
185,907 |
|
Reconciliation of GAAP Net Profit (loss) to Adjusted EBITDA (unaudited) (in thousands) |
||||||||||
|
Q4'23 |
Q3'23 |
Q4'22 |
FY 23 |
FY 22 |
|||||
Net (loss) profit to Common Stockholders |
4,511 |
|
(168,999 |
) |
(47,172 |
) |
(302,116 |
) |
(301,408 |
) |
Add back: (Loss) gain for non-controlling interests |
(394 |
) |
921 |
|
(3,611 |
) |
(5,821 |
) |
(13,678 |
) |
Loss (gain) on derivative liabilities |
428 |
|
114 |
|
56 |
|
1,641 |
|
(566 |
) |
Impairment charge (PPA V, PPA IV, PPA IIIa) |
— |
|
130,088 |
|
68,535 |
|
130,088 |
|
113,335 |
|
Loss on China JV investment |
— |
|
— |
|
— |
|
— |
|
1,446 |
|
Loss on extinguishment of debt |
— |
|
1,415 |
|
4,723 |
|
4,288 |
|
8,955 |
|
Amortization of acquired intangible assets |
34 |
|
42 |
|
37 |
|
151 |
|
223 |
|
Restructuring charges |
6,940 |
|
2,226 |
|
— |
|
9,166 |
|
— |
|
PPA V Sales property tax |
— |
|
1,588 |
|
— |
|
1,588 |
|
— |
|
|
— |
|
— |
|
— |
|
— |
|
2,000 |
|
Interest expense on SK loan commitment |
— |
|
52,792 |
|
— |
|
52,792 |
|
— |
|
Stock-based compensation expense |
7,500 |
|
21,564 |
|
31,027 |
|
87,095 |
|
113,965 |
|
Other loss |
403 |
|
— |
|
— |
|
403 |
|
— |
|
Adjusted Net (Loss) Profit |
19,421 |
|
41,751 |
|
53,596 |
|
(20,724 |
) |
(75,728 |
) |
|
|
|
|
|
|
|||||
Depreciation & amortization |
12,349 |
|
14,615 |
|
15,426 |
|
62,609 |
|
61,608 |
|
Income tax provision |
811 |
|
646 |
|
209 |
|
1,894 |
|
1,097 |
|
Interest expense, Other expense, net |
7,179 |
|
9,403 |
|
5,227 |
|
38,012 |
|
43,162 |
|
Adjusted EBITDA |
39,760 |
|
66,415 |
|
74,458 |
|
81,791 |
|
30,139 |
|
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 profit (loss) (non-GAAP earnings from operations) is operating profit (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, PPA V, PPA IV and PPA IIIa repowering related impairment charges, restructuring charges, and PPA V Sales property tax. 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, (loss) gain for non-controlling interest, loss (gain) on derivatives liabilities, PPA V, PPA IV and PPA IIIa repowering related impairment charges, goodwill impairment, interest expense on SK loan commitment, restructuring charges, PPA V Sales property tax, managed services impairment loss, loss on debt extinguishment, loss on China JV investment and the amortization of acquired intangible assets. Adjusted EBITDA is defined as net profit (loss) before interest expense, provision for income tax, depreciation and amortization expense, charges relating to stock-based compensation expense, (loss) gain for non-controlling interest, loss (gain) on derivatives liabilities, PPA V. PPA IV and PPA IIIa repowering related impairment charges, goodwill impairment, interest expense on SK loan commitment, restructuring charges, PPA V Sales property tax, managed services impairment loss, loss on debt extinguishment, loss on China JV investment and the amortization of acquired intangible assets.
-
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. -
(Loss) gain 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 . - Loss (gain) on derivatives liabilities represents non-cash adjustments to the fair value of the embedded derivatives.
-
PPA V repowering related impairment charge represents non-cash impairment charge on old server units decommissioned upon repowering of
$123.7 million and non-cash impairment charge on non-recoverable production insurance of$6.4 million . -
PPA IV repowering related impairment charge represents non-cash impairment charges on old server units decommissioned upon repowering of
$64.0 million and non-cash impairment charge on non-recoverable production insurance of$4.5 million . -
PPA IIIa repowering related impairment charge represents non-cash impairment charges on old server units decommissioned upon repowering of
$44.8 million . -
Goodwill impairment related to the acquisition of BE Japan in Q2 2021. - Interest expense on SK loan commitment recognized as a result of automatic conversion of 13.5 million shares of our Series B redeemable convertible preferred stock to shares of our Class A common stock.
-
Restructuring charges represented by severance expense of
$5.3 million , facility closure costs of$2.6 million , and other restructuring expenses of$1.3 million recorded in fiscal 2023. - PPA V Sales property tax related to PPA V repowering of old server units.
- Other loss incurred upon closure of one of our managed services deals in the fourth quarter of fiscal 2023.
- Loss on debt extinguishment related to PPA V, PPA IV and PPA IIIa repowering.
- Loss on China JV investment upon sale of our equity interest.
- Amortization of acquired intangible assets.
- 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 to non-GAAP Net Profit (Loss) and Computation of non-GAAP Net Profit (Loss) per Share (EPS),” and “Reconciliation of GAAP Net Loss 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 profit (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 profit (non-GAAP earnings from operations), non-GAAP operating profit 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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