Bloom Energy Reports Second Quarter 2024 Financial Results
Reiterating 2024 financial guidance
Second Quarter Highlights
-
Revenue of
$335.8 million in the second quarter of 2024, an increase of 11.5% year-over-year. - Gross margin of 20.4% in the second quarter of 2024, an increase of 1.7 percentage points year-over-year; Non-GAAP gross margin of 21.8% in the second quarter of 2024, an increase of 1.4 percentage points year-over-year.
-
Operating loss of
$23.1 million in the second quarter of 2024, an improvement of$31.3 million year-over-year; Non-GAAP operating loss of$3.2 million in the second quarter of 2024, an improvement of$22.7 million year-over-year. - Strengthened our balance sheet through the issuance of 3% convertible green notes.
-
Announced agreement with CoreWeave, a leader in AI, to power the high-performance data center owned by Chirisa Technology Parks located in
Volo, Illinois . -
Silicon Valley Power received municipal approval to enter into an agreement using Bloom fuel cells to power 20-megawatts of AWS data centers inSanta Clara, CA.
KR Sridhar, CEO of
Summary of Key Financial Metrics
Summary of GAAP Profit and Loss Statements |
||||||||||||
( |
Q2’24 |
Q1’24 |
Q2’23 |
|||||||||
Revenue |
|
335,767 |
|
|
235,298 |
|
|
301,095 |
|
|||
Cost of Revenue |
|
267,245 |
|
|
197,222 |
|
|
244,745 |
|
|||
Gross Profit |
|
68,522 |
|
|
38,076 |
|
|
56,350 |
|
|||
Gross Margin |
|
20.4 |
% |
|
16.2 |
% |
|
18.7 |
% |
|||
Operating Expenses |
|
91,650 |
|
|
87,093 |
|
|
110,806 |
|
|||
Operating Loss |
|
(23,128 |
) |
|
(49,017 |
) |
|
(54,456 |
) |
|||
Operating Margin |
|
(6.9 |
)% |
|
(20.8 |
)% |
|
(18.1 |
)% |
|||
Non-operating Expenses |
|
38,659 |
|
|
8,507 |
|
|
11,607 |
|
|||
Net Loss to Common Stockholders |
|
(61,787 |
) |
|
(57,524 |
) |
|
(66,061 |
) |
|||
GAAP EPS, Basic and Diluted |
$ |
(0.27 |
) |
$ |
(0.25 |
) |
$ |
(0.32 |
) |
Summary of Non-GAAP Financial Information 1 |
||||||||||||
( |
Q2’24 |
Q1’24 |
Q2’23 |
|||||||||
Revenue |
|
335,767 |
|
|
235,298 |
|
|
301,095 |
|
|||
Cost of Revenue |
|
262,611 |
|
|
194,071 |
|
|
239,678 |
|
|||
Gross Profit |
|
73,156 |
|
|
41,226 |
|
|
61,418 |
|
|||
Gross Margin |
|
21.8 |
% |
|
17.5 |
% |
|
20.4 |
% |
|||
Operating Expenses |
|
76,344 |
|
|
71,962 |
|
|
87,357 |
|
|||
Operating Loss |
|
(3,188 |
) |
|
(30,736 |
) |
|
(25,939 |
) |
|||
Operating Margin |
|
(0.9 |
)% |
|
(13.1 |
)% |
|
(8.6 |
)% |
|||
Adjusted EBITDA |
|
10,219 |
|
|
(18,218 |
) |
|
(8,421 |
) |
|||
Non-GAAP EPS, Basic and Diluted |
$ |
(0.06 |
) |
$ |
(0.17 |
) |
$ |
(0.17 |
) |
(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: |
~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; government incentive programs including the scheduled expiration of the Investment Tax Credit at the end of 2024; 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)
|
||||||||
|
|
|
|
|
||||
|
|
2024 |
|
2023 |
||||
Assets |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents1 |
|
$ |
581,684 |
|
|
$ |
664,593 |
|
Restricted cash1 |
|
|
25,167 |
|
|
|
46,821 |
|
Accounts receivable less allowance for credit losses of |
|
|
524,000 |
|
|
|
340,740 |
|
Contract assets3 |
|
|
90,388 |
|
|
|
41,366 |
|
Inventories1 |
|
|
520,216 |
|
|
|
502,515 |
|
Deferred cost of revenue4 |
|
|
48,457 |
|
|
|
45,984 |
|
Prepaid expenses and other current assets1, 5 |
|
|
40,102 |
|
|
|
51,148 |
|
Total current assets |
|
|
1,830,014 |
|
|
|
1,693,167 |
|
Property, plant and equipment, net1 |
|
|
494,377 |
|
|
|
493,352 |
|
Operating lease right-of-use assets1, 6 |
|
|
134,972 |
|
|
|
139,732 |
|
Restricted cash1 |
|
|
30,953 |
|
|
|
33,764 |
|
Deferred cost of revenue |
|
|
3,565 |
|
|
|
3,454 |
|
Other long-term assets1, 7 |
|
|
54,163 |
|
|
|
50,208 |
|
Total assets |
|
$ |
2,548,044 |
|
|
$ |
2,413,677 |
|
Liabilities and stockholders’ equity |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable1, 8 |
|
$ |
104,201 |
|
|
$ |
132,078 |
|
Accrued warranty |
|
|
12,388 |
|
|
|
19,326 |
|
Accrued expenses and other current liabilities1, 9 |
|
|
116,399 |
|
|
|
130,879 |
|
Deferred revenue and customer deposits1, 10 |
|
|
112,032 |
|
|
|
128,922 |
|
Operating lease liabilities1, 11 |
|
|
20,123 |
|
|
|
20,245 |
|
Financing obligations |
|
|
28,332 |
|
|
|
38,972 |
|
Total current liabilities |
|
|
393,475 |
|
|
|
470,422 |
|
Deferred revenue and customer deposits1, 12 |
|
|
28,589 |
|
|
|
19,140 |
|
Operating lease liabilities1, 13 |
|
|
137,209 |
|
|
|
141,939 |
|
Financing obligations |
|
|
408,384 |
|
|
|
405,824 |
|
Recourse debt |
|
|
1,121,011 |
|
|
|
842,006 |
|
Non-recourse debt1, 14 |
|
|
4,347 |
|
|
|
4,627 |
|
Other long-term liabilities |
|
|
8,479 |
|
|
|
9,049 |
|
Total liabilities |
|
$ |
2,101,494 |
|
|
$ |
1,893,007 |
|
Commitments and contingencies |
|
|
|
|
||||
Stockholders’ equity: |
|
|
|
|
||||
Common stock: |
|
|
23 |
|
|
|
21 |
|
Additional paid-in capital |
|
|
4,413,233 |
|
|
|
4,370,343 |
|
Accumulated other comprehensive loss |
|
|
(2,301 |
) |
|
|
(1,687 |
) |
Accumulated deficit |
|
|
(3,987,702 |
) |
|
|
(3,866,599 |
) |
Total equity attributable to common stockholders |
|
|
423,253 |
|
|
|
502,078 |
|
Noncontrolling interest |
|
|
23,297 |
|
|
|
18,592 |
|
Total stockholders’ equity |
|
$ |
446,550 |
|
|
$ |
520,670 |
|
Total liabilities and stockholders’ equity |
|
$ |
2,548,044 |
|
|
$ |
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)|
|
||||||||||||
|
|
Three Months
|
|
Three Months
|
|
Three Months
|
||||||
|
|
|
|
|
|
|
||||||
Revenue: |
|
|
|
|
|
|
||||||
Product |
|
$ |
226,308 |
|
|
$ |
153,364 |
|
|
$ |
214,706 |
|
Installation |
|
|
42,733 |
|
|
|
11,444 |
|
|
|
24,321 |
|
Service |
|
|
52,531 |
|
|
|
56,460 |
|
|
|
42,298 |
|
Electricity |
|
|
14,195 |
|
|
|
14,030 |
|
|
|
19,770 |
|
Total revenue1 |
|
|
335,767 |
|
|
|
235,298 |
|
|
|
301,095 |
|
Cost of revenue: |
|
|
|
|
|
|
||||||
Product |
|
|
161,332 |
|
|
|
115,757 |
|
|
|
145,146 |
|
Installation |
|
|
44,298 |
|
|
|
15,353 |
|
|
|
26,879 |
|
Service |
|
|
52,401 |
|
|
|
56,506 |
|
|
|
57,263 |
|
Electricity |
|
|
9,214 |
|
|
|
9,606 |
|
|
|
15,457 |
|
Total cost of revenue |
|
|
267,245 |
|
|
|
197,222 |
|
|
|
244,745 |
|
Gross profit |
|
|
68,522 |
|
|
|
38,076 |
|
|
|
56,350 |
|
Operating expenses: |
|
|
|
|
|
|
||||||
Research and development |
|
|
37,364 |
|
|
|
35,485 |
|
|
|
41,493 |
|
Sales and marketing |
|
|
17,901 |
|
|
|
13,599 |
|
|
|
26,822 |
|
General and administrative2 |
|
|
36,385 |
|
|
|
38,009 |
|
|
|
42,491 |
|
Total operating expenses |
|
|
91,650 |
|
|
|
87,093 |
|
|
|
110,806 |
|
Loss from operations |
|
|
(23,128 |
) |
|
|
(49,017 |
) |
|
|
(54,456 |
) |
Interest income |
|
|
6,430 |
|
|
|
7,531 |
|
|
|
4,357 |
|
Interest expense3 |
|
|
(15,376 |
) |
|
|
(14,546 |
) |
|
|
(13,953 |
) |
Other expense, net4 |
|
|
(985 |
) |
|
|
(1,170 |
) |
|
|
(740 |
) |
Loss on extinguishment of debt |
|
|
(27,182 |
) |
|
|
— |
|
|
|
(2,873 |
) |
(Loss) gain on revaluation of embedded derivatives |
|
|
(88 |
) |
|
|
158 |
|
|
|
(1,216 |
) |
Loss before income taxes |
|
|
(60,329 |
) |
|
|
(57,044 |
) |
|
|
(68,881 |
) |
Income tax provision (benefit) |
|
|
856 |
|
|
|
(501 |
) |
|
|
178 |
|
Net loss |
|
|
(61,185 |
) |
|
|
(56,543 |
) |
|
|
(69,059 |
) |
Less: Net income (loss) attributable to noncontrolling interest |
|
|
602 |
|
|
|
981 |
|
|
|
(2,998 |
) |
Net loss attributable to common stockholders |
|
$ |
(61,787 |
) |
|
$ |
(57,524 |
) |
|
$ |
(66,061 |
) |
Net loss per share available to common stockholders, basic and diluted |
|
$ |
(0.27 |
) |
|
$ |
(0.25 |
) |
|
$ |
(0.32 |
) |
Weighted average shares used to compute net loss per share available to common stockholders, basic and diluted |
|
|
227,167 |
|
|
|
225,587 |
|
|
|
208,692 |
|
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)
|
||||||||||||
|
|
|
|
|
|
|
||||||
|
|
Three Months
|
|
Three Months
|
|
Three Months
|
||||||
Cash flows from operating activities: |
|
|
|
|
|
|
||||||
Net loss |
|
$ |
(61,185 |
) |
|
$ |
(56,543 |
) |
|
$ |
(69,059 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
|
||||||
Depreciation and amortization |
|
|
13,407 |
|
|
|
12,518 |
|
|
|
17,518 |
|
Non-cash lease expense |
|
|
8,980 |
|
|
|
8,951 |
|
|
|
8,250 |
|
(Gain) loss on disposal of property, plant and equipment |
|
|
(13 |
) |
|
|
(2 |
) |
|
|
5 |
|
Revaluation of derivative contracts |
|
|
88 |
|
|
|
(158 |
) |
|
|
1,216 |
|
Stock-based compensation expense |
|
|
19,191 |
|
|
|
18,136 |
|
|
|
28,102 |
|
Amortization of debt issuance costs |
|
|
1,603 |
|
|
|
1,471 |
|
|
|
1,121 |
|
Loss on extinguishment of debt |
|
|
27,182 |
|
|
|
— |
|
|
|
2,873 |
|
Unrealized foreign currency exchange loss |
|
|
418 |
|
|
|
1,136 |
|
|
|
1,484 |
|
Other |
|
|
(50 |
) |
|
|
(50 |
) |
|
|
— |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
||||||
Accounts receivable1 |
|
|
(175,657 |
) |
|
|
(7,615 |
) |
|
|
(21,079 |
) |
Contract assets2 |
|
|
(56,599 |
) |
|
|
7,578 |
|
|
|
12,595 |
|
Inventories |
|
|
5,862 |
|
|
|
(24,965 |
) |
|
|
(69,680 |
) |
Deferred cost of revenue3 |
|
|
7,592 |
|
|
|
(10,183 |
) |
|
|
(13,337 |
) |
Prepaid expenses and other assets4 |
|
|
7,537 |
|
|
|
3,509 |
|
|
|
6,485 |
|
Other long-term assets5 |
|
|
(1,800 |
) |
|
|
(2,155 |
) |
|
|
3,543 |
|
Operating lease right-of-use assets and operating lease liabilities |
|
|
(9,216 |
) |
|
|
(8,807 |
) |
|
|
(7,940 |
) |
Financing lease liabilities |
|
|
223 |
|
|
|
97 |
|
|
|
492 |
|
Accounts payable6 |
|
|
8,206 |
|
|
|
(33,455 |
) |
|
|
62,729 |
|
Accrued warranty |
|
|
3,191 |
|
|
|
(10,129 |
) |
|
|
5,450 |
|
Accrued expenses and other liabilities7 |
|
|
19,789 |
|
|
|
(32,996 |
) |
|
|
(3,442 |
) |
Deferred revenue and customer deposits8 |
|
|
6,013 |
|
|
|
(13,454 |
) |
|
|
(13,658 |
) |
Other long-term liabilities |
|
|
(257 |
) |
|
|
(150 |
) |
|
|
(153 |
) |
Net cash used in operating activities |
|
|
(175,495 |
) |
|
|
(147,266 |
) |
|
|
(46,485 |
) |
Cash flows from investing activities: |
|
|
|
|
|
|
||||||
Purchase of property, plant and equipment |
|
|
(12,019 |
) |
|
|
(21,435 |
) |
|
|
(19,576 |
) |
Proceeds from sale of property, plant and equipment |
|
|
15 |
|
|
|
7 |
|
|
|
25 |
|
Net cash used in investing activities |
|
|
(12,004 |
) |
|
|
(21,428 |
) |
|
|
(19,551 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
||||||
Proceeds from issuance of debt9 |
|
|
402,500 |
|
|
|
— |
|
|
|
634,018 |
|
Payment of debt issuance costs |
|
|
(12,323 |
) |
|
|
— |
|
|
|
(15,828 |
) |
Repayment of debt |
|
|
(140,990 |
) |
|
|
— |
|
|
|
(62,960 |
) |
Proceeds from financing obligations |
|
|
— |
|
|
|
1,334 |
|
|
|
1,539 |
|
Repayment of financing obligations |
|
|
(5,041 |
) |
|
|
(4,958 |
) |
|
|
(4,462 |
) |
Proceeds from issuance of common stock |
|
|
159 |
|
|
|
6,816 |
|
|
|
733 |
|
Proceeds from issuance of redeemable convertible preferred stock |
|
|
— |
|
|
|
— |
|
|
|
310,957 |
|
Contributions from noncontrolling interest |
|
|
— |
|
|
|
3,958 |
|
|
|
6,979 |
|
Dividend paid |
|
|
(1,468 |
) |
|
|
— |
|
|
|
— |
|
Purchase of capped calls |
|
|
— |
|
|
|
— |
|
|
|
(54,522 |
) |
Other |
|
|
— |
|
|
|
— |
|
|
|
(158 |
) |
Net cash provided by financing activities |
|
|
242,837 |
|
|
|
7,150 |
|
|
|
816,296 |
|
Effect of exchange rate changes on cash, cash equivalent and restricted cash |
|
|
(256 |
) |
|
|
(912 |
) |
|
|
(204 |
) |
Net increase (decrease) in cash, cash equivalents, and restricted cash |
|
|
55,082 |
|
|
|
(162,456 |
) |
|
|
750,056 |
|
Cash, cash equivalents, and restricted cash: |
|
|
|
|
|
|
||||||
Beginning of period |
|
|
582,722 |
|
|
|
745,178 |
|
|
|
172,488 |
|
End of period |
|
$ |
637,804 |
|
|
$ |
582,722 |
|
|
$ |
922,544 |
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
|
|||||||||
|
Q2’24 |
Q1’24 |
Q2’23 |
||||||
GAAP revenue |
335,767 |
|
235,298 |
|
301,095 |
|
|||
GAAP cost of sales |
267,245 |
|
197,222 |
|
244,745 |
|
|||
GAAP gross profit |
68,522 |
|
38,076 |
|
56,350 |
|
|||
Non-GAAP adjustments: |
|
|
|
||||||
Stock-based compensation expense |
4,110 |
|
3,814 |
|
5,067 |
|
|||
Restructuring |
116 |
|
(663 |
) |
— |
|
|||
Other |
408 |
|
— |
|
— |
|
|||
Non-GAAP gross profit |
73,156 |
|
41,226 |
|
61,417 |
|
|||
GAAP gross margin % |
20.4 |
% |
16.2 |
% |
18.7 |
% |
|||
Non-GAAP adjustments |
1.4 |
% |
1.3 |
% |
1.7 |
% |
|||
Non-GAAP gross margin % |
21.8 |
% |
17.5 |
% |
20.4 |
% |
|
Q2’24 |
Q1’24 |
Q2’23 |
||||||
GAAP loss from operations |
(23,128 |
) |
(49,017 |
) |
(54,456 |
) |
|||
Non-GAAP adjustments: |
|
|
|
||||||
Stock-based compensation expense |
19,423 |
|
18,860 |
|
28,479 |
|
|||
Restructuring |
73 |
|
(616 |
) |
— |
|
|||
Other |
445 |
|
37 |
|
37 |
|
|||
Non-GAAP loss from operations |
(3,188 |
) |
(30,736 |
) |
(25,940 |
) |
|||
GAAP operating margin % |
(6.9 |
)% |
(20.8 |
)% |
(18.1 |
)% |
|||
Non-GAAP adjustments |
5.9 |
% |
7.8 |
% |
9.5 |
% |
|||
Non-GAAP operating margin % |
(0.9 |
)% |
(13.1 |
)% |
(8.6 |
)% |
Reconciliation of GAAP Net Loss to non-GAAP Net Loss and Computation of non-GAAP Net Loss per Share (EPS)
|
||||||||||||
|
Q2’24 |
Q1’24 |
Q2’23 |
|||||||||
Net loss to Common Stockholders |
|
(61,787 |
) |
|
(57,524 |
) |
|
(66,061 |
) |
|||
Non-GAAP adjustments: |
|
|
|
|||||||||
Add back: gain (loss) for non-controlling interests |
|
602 |
|
|
981 |
|
|
(2,998 |
) |
|||
Loss (gain) on derivative liabilities |
|
88 |
|
|
(158 |
) |
|
1,216 |
|
|||
Loss on extinguishment of debt |
|
27,182 |
|
|
— |
|
|
2,873 |
|
|||
Stock-based compensation expense |
|
19,423 |
|
|
18,860 |
|
|
28,479 |
|
|||
Restructuring |
|
73 |
|
|
(616 |
) |
|
— |
|
|||
Other |
|
445 |
|
|
25 |
|
|
37 |
|
|||
Adjusted Net Loss |
|
(13,974 |
) |
|
(38,432 |
) |
|
(36,454 |
) |
|||
|
|
|
|
|||||||||
Adjusted net loss per share (EPS), Basic and Diluted |
$ |
(0.06 |
) |
$ |
(0.17 |
) |
$ |
(0.17 |
) |
|||
Weighted average shares outstanding attributable to common stockholders, Basic and Diluted |
|
227,167 |
|
|
225,587 |
|
|
208,692 |
|
Reconciliation of GAAP Net Loss to Adjusted EBITDA
|
|||||||||
|
Q2’24 |
Q1’24 |
Q2’23 |
||||||
Net loss to Common Stockholders |
(61,787 |
) |
(57,524 |
) |
(66,061 |
) |
|||
Add back: gain (loss) for non-controlling interests |
602 |
|
981 |
|
(2,998 |
) |
|||
Loss (gain) on derivative liabilities |
88 |
|
(158 |
) |
1,216 |
|
|||
Loss on extinguishment of debt |
27,182 |
|
— |
|
2,873 |
|
|||
Stock-based compensation expense |
19,423 |
|
18,860 |
|
28,479 |
|
|||
Restructuring |
73 |
|
(616 |
) |
— |
|
|||
Other |
445 |
|
25 |
|
37 |
|
|||
Adjusted Net Loss |
(13,974 |
) |
(38,432 |
) |
(36,454 |
) |
|||
|
|
|
|
||||||
Depreciation & amortization |
13,407 |
|
12,518 |
|
17,519 |
|
|||
Income tax provision (benefit) |
856 |
|
(501 |
) |
178 |
|
|||
Interest expense, Other expense, net |
9,930 |
|
8,197 |
|
10,336 |
|
|||
Adjusted EBITDA |
10,219 |
|
(18,218 |
) |
(8,421 |
) |
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 is gross profit.
- The GAAP measure most directly comparable to non-GAAP gross margin is gross margin.
- The GAAP measure most directly comparable to non-GAAP operating loss is operating loss.
- The GAAP measure most directly comparable to non-GAAP operating margin is operating margin.
- The GAAP measure most directly comparable to non-GAAP net loss is net loss.
- The GAAP measure most directly comparable to non-GAAP diluted loss per share is diluted loss per share.
- The GAAP measure most directly comparable to Adjusted EBITDA is net loss.
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 and non-GAAP gross margin are defined to exclude charges relating to stock-based compensation expense, restructuring (expense reversals) charges, and other charges. Non-GAAP net loss and non-GAAP diluted loss per share consist of net loss or diluted net loss per share excluding charges relating to stock-based compensation expense, gain (loss) for non-controlling interest, loss (gain) on derivatives liabilities, restructuring (expense reversals) charges, loss on extinguishment of debt, and other charges. Adjusted EBITDA is defined as net loss before interest expense, income tax provision (benefit), depreciation and amortization expense, charges relating to stock-based compensation expense, gain (loss) for non-controlling interest, loss (gain) on derivatives liabilities, restructuring (expense reversals) charges, loss on extinguishment of debt, and other charges.
-
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 . - Loss (gain) on derivatives liabilities represents non-cash adjustments to the fair value of the embedded derivatives.
-
Loss on debt extinguishment for the three months ended
June 30, 2024 , related to the partial repurchase of the 2.5% Green Convertible Senior Notes dueAugust 2025 and comprised of 22.6% premium upon partial repurchase of$26.0 million and$1.2 million of debt issuance cost write-off.Loss on debt extinguishment for the three months endedJune 30, 2023 , related to the redemption onJuly 1, 2023 of 10.25% senior secured notes dueMarch 2027 and comprised of 4% premium upon redemption of$2.3 million and$0.6 million of debt issuance cost write-off. - Restructuring charges and reversals, if any, are represented by severance expense, facility closure costs, and others.
-
Other represents site termination costs of
$0.4 million for the three months endedJune 30, 2024 , immaterial amounts of quarterly amortization of acquired intangible assets, PPA sales property tax, and other gain from termination of a managed service agreement. - Adjusted EBITDA is defined as Adjusted Net Loss before depreciation and amortization expense, provision for income tax, interest expense, other expense, 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 Loss to non-GAAP Net Loss and Computation of non-GAAP Net 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, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating loss, non-GAAP operating margin, non-GAAP net loss, and non-GAAP diluted loss 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 loss, and non-GAAP diluted loss per share and can have a material impact on the equivalent GAAP earnings measure.
-
Other companies may calculate non-GAAP gross profit (loss), non-GAAP gross margin, non-GAAP operating profit (loss) (non-GAAP earnings from operations), non-GAAP operating margin, non-GAAP net earnings (loss), non-GAAP diluted earnings (loss) 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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