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Bloom Energy Reports Fourth Quarter and Full Year 2022 Financial Results

Bloom Energy Corporation (NYSE: BE) today announced its financial results for the fourth quarter and full year ended December 31, 2022. The company surpassed $1 billion for full year revenues for the first time.

Fourth Quarter Highlights

  • Revenue of $462.6 million in the fourth quarter of 2022, an increase of 35.1% compared to $342.5 million in the fourth quarter of 2021. Product and Service revenue of $400.2 million in the fourth quarter of 2022, an increase of 41.4% compared to $283.0 million in the fourth quarter of 2021.
  • Gross margin of 15.4% in the fourth quarter of 2022, a decline of 4.6 percentage points compared to 20.1% in the fourth quarter of 2021.
  • Non-GAAP gross margin of 30.4% in the fourth quarter of 2022, an increase of 9.2 percentage points compared to 21.2% in the fourth quarter of 2021.
  • Operating loss of ($40.6) million in the fourth quarter of 2022, an increase of $27.1 million compared to ($13.5) million in the fourth quarter of 2021.
  • Non-GAAP operating income of $59.0 million in the fourth quarter of 2022, an increase of $53.7 million compared to $5.3 million in the fourth quarter of 2021.

Total Year Highlights

  • Revenue of $1,199.1 million in 2022, an increase of 23.3% compared to $972.2 million in 2021. Product and Service revenue of $1,031.6 million in 2022, an increase of 27.7% compared to $807.7 million in 2021.
  • Gross margin of 12.4% in 2022, a decline of 8.0 percentage points compared to 20.3% in 2021.
  • Non-GAAP gross margin of 23.0% in 2022, an increase of 1.3 percentage points compared to 21.7% in 2021.
  • Operating loss of ($261.0) million in 2022, an increase of $146.5 million compared to ($114.5) million in 2021.
  • Non-GAAP operating loss of ($33.5) million in 2022, an improvement of $4.9 million compared to ($38.4) million in 2021.
  • Record ending backlog of $10.0 billion in the fourth quarter of 2022, compared to $8.5 billion in 2021.

Increases in fourth quarter and total year revenue of 35.1% and 23.3%, respectively, were primarily driven by increases in product acceptances and improved pricing. Cost of goods sold was impacted by non-cash impairment charges relating to the repowering of PPA IV in the fourth quarter and the repowering of PPA IIIa in the second quarter, which were excluded in our non-GAAP reporting.

Commenting on the fourth quarter and full year earnings, KR Sridhar founder, chairman and CEO of Bloom Energy said, "Bloom Energy finished 2022 in a very strong position as our resilient and sustainable energy solutions experienced wider adoption and we were aided by good tailwinds. We expect this trend to continue in 2023 and beyond. Our revenue and non-GAAP gross margin were records for the fourth quarter and for the full year and we closed 2022 with a $10 billion backlog, the strongest order book in our company's history. Bloom is now a predictable growth company. We offer the world a unique, mature, and proven platform solution at scale - a solution that can be deployed today with a clear pathway to a net-zero future."

Greg Cameron, executive vice president and CFO of Bloom Energy, added, “This year was about achieving strong commercial, operational and financial results which positions us to be a leader in the global energy transition. The demand for our AlwaysOn energy server is evidenced by our record backlog. The company is clearly at an inflection point to build on our mature technology platform, solid record of accomplishment and robust growth roadmap. We’re extremely excited about our future.”

Summary of Key Financial Metrics

Preliminary Summary GAAP Profit and Loss Statements

($000)

Q422

Q322

Q421

FY22

FY21

Revenue

462,577

 

292,274

 

342,471

 

1,199,125

 

972,176

 

Cost of Revenue

391,199

 

241,330

 

273,768

 

1,050,837

 

774,595

 

Gross Profit

71,377

 

50,944

 

68,703

 

148,288

 

197,581

 

Gross Margin

15.4

%

17.4

%

20.1

%

12.4

%

20.3

%

Operating Expenses

111,945

 

103,536

 

82,208

 

409,280

 

312,083

 

Operating Loss

(40,568

)

(52,592

)

(13,505

)

(260,992

)

(114,502

)

Operating Margin

(8.8

%)

(18.0

%)

(3.9

%)

(21.8

%)

(11.8

%)

Non-operating Expenses

6,604

 

4,485

 

19,818

 

40,416

 

49,943

 

Net Loss

(47,172

)

(57,077

)

(33,323

)

(301,408

)

(164,445

)

GAAP EPS

 

($0.23

)

($0.31

)

($0.19

)

($1.62

)

($0.95

)

 

Preliminary Summary Non-GAAP Financial Information1

($000)

Q422

Q322

Q421

FY22

FY21

Revenue

462,577

 

292,274

 

342,471

 

1,199,125

 

972,176

 

Cost of Revenue

321,823

 

236,349

 

269,706

 

923,052

 

760,784

 

Gross Profit

140,754

 

55,925

 

72,765

 

276,073

 

211,392

 

Gross Margin

30.4

%

19.1

%

21.2

%

23.0

%

21.7

%

Operating Expenses

81,722

 

84,449

 

67,448

 

309,542

 

249,762

 

Operating Income (Loss)

59,032

 

(28,524

)

5,317

 

(33,469

)

(38,370

)

Operating Margin

12.8

%

(9.8

%)

1.6

%

(2.8

%)

(3.9

%)

Adjusted EBITDA

74,449

 

(13,076

)

18,692

 

30,131

 

14,031

 

EPS

$0.27

 

($0.20

)

($0.05

)

($0.41

)

($0.55

)

1.

A detailed reconciliation of GAAP to Non-GAAP financial measures is provided at the end of this press release

Outlook

Full-year 2023 Outlook:

Revenue:

$1.4 - $1.5 billion

Product & Service Revenue:

$1.25 - $1.35 billion

Non-GAAP Gross Margin:

25%

Non-GAAP Operating Margin:

Positive

Bloom Will host an investor conference at the NYSE on May 23, 2023.

Acceptances

We use acceptances as a key operating metric to measure the volume of our completed Energy Server installation activity from period to period. Acceptance typically occurs upon transfer of control to our customers, which depending on the contract terms is when the system is shipped and delivered to our customers, when the system is shipped and delivered and is physically ready for startup and commissioning, or when the system is shipped and delivered and is turned on and producing power.

Conference Call Details

Bloom will host a conference call today, February 9, 2023, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) to discuss its financial results. To participate in the live call, analysts and investors may call +1 (844) 200-6205 and enter the passcode: 531331. Those calling from outside the United States may dial +1 (929) 526-1599 and enter the same passcode: 531331. A simultaneous live webcast will also be available under the Investor Relations section on our website at https://investor.bloomenergy.com/. Following the webcast, an archived version will be available on Bloom’s website for one year. A telephonic replay of the conference call will be available for one week following the call, by dialing +1 (866) 813-9403 or + 44 204-525-0658 and entering passcode 527751.

Use of Non-GAAP Financial Measures

This release includes certain non-GAAP financial measures as defined by the rules and regulations of the Securities and Exchange Commission (SEC). These non-GAAP financial measures are in addition to, and not a substitute for or superior to, measures of financial performance prepared in accordance with U.S. GAAP. There are a number of limitations related to the use of these non-GAAP financial measures versus their nearest GAAP equivalents. For example, other companies may calculate non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. Bloom urges you to review the reconciliations of its non-GAAP financial measures to the most directly comparable U.S. GAAP financial measures set forth in this press release, and not to rely on any single financial measure to evaluate our business. With respect to Bloom’s expectations regarding its 2023 Outlook, Bloom is not able to provide a quantitative reconciliation of non-GAAP gross margin and non-GAAP operating margin measures to the corresponding GAAP measures without unreasonable efforts due to the uncertainty regarding, and the potential variability of, reconciling items such as stock-based compensation expense. Material changes to reconciling items could have a significant effect on future GAAP results and, as such, we believe that any reconciliation provided would imply a degree of precision that could be confusing or misleading to investors.

About Bloom Energy

Bloom Energy empowers businesses and communities to responsibly take charge of their energy. The company’s leading solid oxide platform for distributed generation of electricity and hydrogen is changing the future of energy. Fortune 100 companies turn to Bloom Energy as a trusted partner to deliver lower carbon energy today and a net-zero future. For more information, visit www.bloomenergy.com.

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: adoption of Bloom’s energy servers; the predictability of Bloom’s growth; pathway to a net-zero future; Bloom’s positioning operationally and financially; demand for Bloom’s energy servers; being at an inflection point; Bloom’s growth roadmap; Bloom’s expectations regarding its growth plans and future; Bloom’s financial outlook for 2023. 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 United States and international markets; timing and development of an ecosystem for the hydrogen market, including in the South Korean market; continued incentives in the South Korean market; the timing and pace of adoption of hydrogen for stationary power; the risk of manufacturing defects; the accuracy of Bloom’s estimates regarding the useful life of its Energy Servers; delays in the development and introduction of new products or updates to existing products; Bloom’s ability to secure partners in order to commercialize its electrolyzer and carbon capture products; the impact of the COVID-19 pandemic on the global economy and its potential impact on Bloom’s business; supply constraints; the availability of rebates, tax credits and other tax benefits; changes in the regulatory landscape; Bloom’s reliance on tax equity financing arrangements; Bloom’s reliance upon a limited number of customers; Bloom’s lengthy sales and installation cycle, construction, utility interconnection and other delays and cost overruns related to the installation of its Energy Servers; business and economic conditions and growth trends in commercial and industrial energy markets; global macroeconomic conditions, including rising interest rates, recession fears and inflationary pressures, or geopolitical events or conflicts; overall electricity generation market; Bloom’s ability to protect its intellectual property; and other risks and uncertainties detailed in Bloom’s SEC filings from time to time. More information on potential factors that may impact Bloom’s business are set forth in Bloom’s periodic reports filed with the SEC, including our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2022, June 30, 2022 and September 30, 2022 as filed with the SEC on May 6, 2022, August 9, 2022 and November 3, 2022, respectively, as well as subsequent reports filed with or furnished to the SEC from time to time. These reports are available on Bloom’s website at www.bloomenergy.com and the SEC’s website at www.sec.gov. Bloom assumes no obligation to, and does not currently intend to, update any such forward-looking statements.

The Investor Relations section of Bloom’s website at investor.bloomenergy.com contains a significant amount of information about Bloom Energy, including financial and other information for investors. Bloom encourages investors to visit this website from time to time, as information is updated and new information is posted.

Condensed Consolidated Balance Sheets (preliminary & unaudited) (in thousands)

 

 

December 31,

 

 

 

2022

 

 

 

2021

 

Assets

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents1

 

$

348,498

 

 

$

396,035

 

Restricted cash1

 

 

51,515

 

 

 

92,540

 

Accounts receivable less allowance for doubtful accounts of $119 as of December 31, 2022 and 20211

 

 

250,995

 

 

 

87,789

 

Contract assets

 

 

46,727

 

 

 

25,201

 

Inventories1

 

 

268,394

 

 

 

143,370

 

Deferred cost of revenue

 

 

46,191

 

 

 

25,040

 

Customer financing receivable1

 

 

 

 

 

5,784

 

Prepaid expenses and other current assets1

 

 

43,643

 

 

 

30,661

 

Total current assets

 

 

1,055,963

 

 

 

806,420

 

Property, plant and equipment, net1

 

 

600,414

 

 

 

604,106

 

Operating lease right-of-use assets1

 

 

126,955

 

 

 

106,660

 

Customer financing receivable1

 

 

 

 

 

39,484

 

Restricted cash1

 

 

118,353

 

 

 

126,539

 

Deferred cost of revenue

 

 

4,737

 

 

 

1,289

 

Other long-term assets1

 

 

40,205

 

 

 

41,073

 

Total assets

 

$

1,946,627

 

 

$

1,725,571

 

Liabilities, redeemable convertible preferred stock, redeemable noncontrolling interest and stockholders’ equity (deficit)

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable1

 

$

161,770

 

 

$

72,967

 

Accrued warranty

 

 

17,332

 

 

 

11,746

 

Accrued expenses and other current liabilities1

 

 

144,183

 

 

 

114,138

 

Deferred revenue and customer deposits1

 

 

159,048

 

 

 

89,975

 

Operating lease liabilities1

 

 

16,227

 

 

 

13,101

 

Financing obligations

 

 

17,363

 

 

 

14,721

 

Recourse debt

 

 

12,716

 

 

 

8,348

 

Non-recourse debt1

 

 

13,307

 

 

 

17,483

 

Total current liabilities

 

 

541,946

 

 

 

342,479

 

Deferred revenue and customer deposits1

 

 

56,392

 

 

 

90,310

 

Operating lease liabilities1

 

 

132,363

 

 

 

106,187

 

Financing obligations

 

 

442,063

 

 

 

461,900

 

Recourse debt

 

 

273,076

 

 

 

283,483

 

Non-recourse debt1

 

 

112,480

 

 

 

217,416

 

Other long-term liabilities

 

 

9,491

 

 

 

16,772

 

Total liabilities

 

$

1,567,811

 

 

$

1,518,547

 

Commitments and contingencies

 

 

 

 

Redeemable convertible preferred stock, Series A: no shares and 10,000,000 shares authorized and no shares issued and outstanding at December 31, 2022 and December 31, 2021, respectively.

 

 

 

 

 

208,551

 

Redeemable noncontrolling interest

 

 

 

 

 

300

 

Stockholders’ (deficit) equity:

 

 

 

 

Common stock: $0.0001 par value; Class A shares - 600,000,000 shares authorized and 179,165,539 shares and 160,627,544 shares issued and outstanding and Class B shares - 600,000,000 shares authorized and 15,802,146 shares and 15,832,863 shares issued and outstanding at December 31, 2022 and December 31, 2021, respectively.

 

 

20

 

 

 

18

 

Additional paid-in capital

 

 

3,906,491

 

 

 

3,219,081

 

Accumulated other comprehensive loss

 

 

(1,251

)

 

 

(350

)

Accumulated deficit

 

 

(3,564,483

)

 

 

(3,263,075

)

Total stockholders' equity (deficit) attributable to Class A and Class B common stockholders

 

 

340,777

 

 

 

(44,326

)

Noncontrolling interest

 

 

38,039

 

 

 

42,499

 

Total stockholders' equity (deficit)

 

$

378,816

 

 

$

(1,827

)

Total liabilities, redeemable convertible preferred stock, redeemable noncontrolling interest and stockholders' equity (deficit)

 

$

1,946,627

 

 

$

1,725,571

 

1

We have variable interest entities related to PPAs and joint venture in the Republic of Korea, which represent a portion of the consolidated balances recorded within these financial statement line items in the consolidated balance sheets.

Condensed Consolidated Statements of Operations (preliminary & unaudited) (in thousands, except per share data)

 

 

Years Ended December 31,

 

 

 

2022

 

 

 

2021

 

 

 

2020

 

 

 

 

 

 

 

 

Revenue:

 

 

 

 

 

 

Product

 

$

880,664

 

 

$

663,512

 

 

$

518,633

 

Installation

 

 

92,120

 

 

 

96,059

 

 

 

101,887

 

Service

 

 

150,954

 

 

 

144,184

 

 

 

109,633

 

Electricity

 

 

75,387

 

 

 

68,421

 

 

 

64,094

 

Total revenue

 

 

1,199,125

 

 

 

972,176

 

 

 

794,247

 

Cost of revenue:

 

 

 

 

 

 

Product

 

 

616,178

 

 

 

471,654

 

 

 

332,724

 

Installation

 

 

104,111

 

 

 

110,214

 

 

 

116,542

 

Service

 

 

168,491

 

 

 

148,286

 

 

 

132,329

 

Electricity

 

 

162,057

 

 

 

44,441

 

 

 

46,859

 

Total cost of revenue

 

 

1,050,837

 

 

 

774,595

 

 

 

628,454

 

Gross profit

 

 

148,288

 

 

 

197,581

 

 

 

165,793

 

Operating expenses:

 

 

 

 

 

 

Research and development

 

 

150,606

 

 

 

103,396

 

 

 

83,577

 

Sales and marketing

 

 

90,934

 

 

 

86,499

 

 

 

55,916

 

General and administrative

 

 

167,740

 

 

 

122,188

 

 

 

107,085

 

Total operating expenses

 

 

409,280

 

 

 

312,083

 

 

 

246,578

 

Loss from operations

 

 

(260,992

)

 

 

(114,502

)

 

 

(80,785

)

Interest income

 

 

3,887

 

 

 

262

 

 

 

1,475

 

Interest expense

 

 

(53,493

)

 

 

(69,025

)

 

 

(76,276

)

Interest expense - related parties

 

 

 

 

 

 

 

 

(2,513

)

Loss on extinguishment of debt

 

 

(8,955

)

 

 

 

 

 

(12,878

)

Other income (expense), net

 

 

4,998

 

 

 

(8,139

)

 

 

(8,318

)

Gain (loss) on revaluation of embedded derivatives

 

 

566

 

 

 

(919

)

 

 

464

 

Loss before income taxes

 

 

(313,989

)

 

 

(192,323

)

 

 

(178,831

)

Income tax provision

 

 

1,097

 

 

 

1,046

 

 

 

256

 

Net loss

 

 

(315,086

)

 

 

(193,369

)

 

 

(179,087

)

Less: Net loss attributable to noncontrolling interest

 

 

(13,378

)

 

 

(28,896

)

 

 

(21,513

)

Net loss attributable to Class A and Class B common stockholders

 

 

(301,708

)

 

 

(164,473

)

 

 

(157,574

)

Less: Net income (loss) attributable to redeemable noncontrolling interest

 

 

(300

)

 

 

(28

)

 

 

(21

)

Net loss before portion attributable to redeemable noncontrolling interest and noncontrolling interest

 

$

(301,408

)

 

$

(164,445

)

 

$

(157,553

)

Net loss per share available to Class A and Class B common stockholders, basic and diluted

 

$

(1.62

)

 

$

(0.95

)

 

$

(1.14

)

Weighted average shares used to compute net loss per share available to Class A and Class B common stockholders, basic and diluted

 

 

185,907

 

 

 

173,438

 

 

 

138,722

 

Condensed Consolidated Statement of Cash Flows (preliminary & unaudited) (in thousands)

 

 

Years Ended December 31,

 

 

 

2022

 

 

 

2021

 

 

 

2020

 

Cash flows from operating activities:

 

 

 

 

 

 

Net loss

 

$

(315,086

)

 

$

(193,369

)

 

$

(179,087

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

 

61,608

 

 

 

53,454

 

 

 

52,279

 

Non-cash lease expense

 

 

20,155

 

 

 

9,708

 

 

 

5,328

 

Write-off of assets related to PPA IIIa and PPA IV

 

 

113,514

 

 

 

 

 

 

 

Revaluation of derivative contracts

 

 

(9,583

)

 

 

17,532

 

 

 

(497

)

Stock-based compensation expense

 

 

112,259

 

 

 

73,274

 

 

 

73,893

 

Gain on remeasurement of investment

 

 

 

 

 

(1,966

)

 

 

 

Contingent consideration remeasurement

 

 

 

 

 

(3,623

)

 

 

 

Interest expense on interest rate swap settlement

 

 

 

 

 

(641

)

 

 

 

Loss on extinguishment of debt

 

 

8,955

 

 

 

 

 

 

11,785

 

Amortization of warrants and debt issuance costs

 

 

3,032

 

 

 

3,797

 

 

 

6,455

 

Unrealized foreign currency exchange loss (gain)

 

 

(3,267

)

 

 

44

 

 

 

19

 

Other

 

 

3,532

 

 

 

 

 

 

4,346

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

Accounts receivable

 

 

(162,864

)

 

 

8,608

 

 

 

(61,702

)

Contract assets

 

 

(21,525

)

 

 

(21,874

)

 

 

 

Inventories

 

 

(124,878

)

 

 

(885

)

 

 

(33,004

)

Deferred cost of revenue

 

 

(24,282

)

 

 

17,567

 

 

 

19,910

 

Customer financing receivable

 

 

2,510

 

 

 

5,428

 

 

 

5,159

 

Prepaid expenses and other current assets

 

 

(17,590

)

 

 

1,520

 

 

 

(3,124

)

Other long-term assets

 

 

(2,617

)

 

 

(2,854

)

 

 

2,904

 

Operating lease right-of-use assets and operating lease liabilities

 

 

3,016

 

 

 

(12,953

)

 

 

(2,855

)

Financing lease liabilities

 

 

896

 

 

 

1,142

 

 

 

 

Accounts payable

 

 

86,498

 

 

 

13,017

 

 

 

(622

)

Accrued warranty

 

 

5,586

 

 

 

1,481

 

 

 

(241

)

Accrued expenses and other current liabilities

 

 

43,243

 

 

 

(2,144

)

 

 

17,753

 

Deferred revenue and customer deposits

 

 

35,156

 

 

 

(22,677

)

 

 

(12,972

)

Other long-term liabilities

 

 

(9,991

)

 

 

(4,300

)

 

 

(4,523

)

Net cash used in operating activities

 

 

(191,723

)

 

 

(60,714

)

 

 

(98,796

)

Cash flows from investing activities:

 

 

 

 

 

 

Purchase of property, plant and equipment

 

 

(116,823

)

 

 

(49,810

)

 

 

(37,913

)

Net cash acquired from step acquisition

 

 

 

 

 

3,114

 

 

 

 

Net cash used in investing activities

 

 

(116,823

)

 

 

(46,696

)

 

 

(37,913

)

Cash flows from financing activities:

 

 

 

 

 

 

Proceeds from issuance of debt

 

 

 

 

 

135,989

 

 

 

300,000

 

Proceeds from issuance of debt to related parties

 

 

 

 

 

 

 

 

30,000

 

Repayment of debt of PPA IIIa and PPA IV

 

 

(100,705

)

 

 

 

 

 

 

Repayment of debt

 

 

(19,881

)

 

 

(123,374

)

 

 

(176,522

)

Repayment of debt - related parties

 

 

 

 

 

 

 

 

(2,105

)

Make-whole payment related to PPA IIIa and PPA IV debt

 

 

(6,553

)

 

 

 

 

 

 

Debt issuance costs

 

 

 

 

 

(1,950

)

 

 

(13,247

)

Proceeds from financing obligations

 

 

3,261

 

 

 

16,849

 

 

 

26,279

 

Repayment of financing obligations

 

 

(35,543

)

 

 

(13,642

)

 

 

(10,756

)

Contributions from noncontrolling interest

 

 

2,815

 

 

 

 

 

 

6,513

 

Distributions to redeemable noncontrolling interests

 

 

 

 

 

(49

)

 

 

(45

)

Distributions and payments to noncontrolling interests

 

 

(6,854

)

 

 

(5,789

)

 

 

(7,577

)

Purchase of noncontrolling interest of PPA IV and PPA V

 

 

(12,000

)

 

 

 

 

 

 

Proceeds from issuance of common stock

 

 

15,279

 

 

 

89,790

 

 

 

23,491

 

Proceeds from issuance of redeemable convertible preferred stock, net

 

 

 

 

 

208,551

 

 

 

 

Proceeds from Class A common share offering

 

 

385,396

 

 

 

 

 

 

 

Public share offering costs

 

 

(13,775

)

 

 

 

 

 

 

Other

 

 

(76

)

 

 

 

 

 

 

Net cash provided by financing activities

 

 

211,364

 

 

 

306,375

 

 

 

176,031

 

Effect of exchange rate changes on cash, cash equivalent and restricted cash

 

 

434

 

 

 

(561

)

 

 

 

Net (decrease) increase in cash, cash equivalents and restricted cash

 

 

(96,748

)

 

 

198,404

 

 

 

39,322

 

Cash, cash equivalents, and restricted cash:

 

 

 

 

 

 

Beginning of period

 

 

615,114

 

 

 

416,710

 

 

 

377,388

 

End of period

 

$

518,366

 

 

$

615,114

 

 

$

416,710

 

 

 

 

 

 

 

 

Reconciliation of GAAP to Non-GAAP Financial Measures (preliminary & unaudited) (in thousands, except percentages)

 

Q422

Q322

Q421

FY22

FY21

GAAP revenue

462,577

 

292,274

 

342,471

 

1,199,125

 

972,126

 

GAAP cost of sales

391,199

 

241,330

 

273,768

 

1,050,837

 

774,595

 

GAAP gross profit

71,377

 

50,944

 

68,703

 

148,288

 

197,581

 

Non-GAAP adjustments:

 

 

 

 

 

Stock-based compensation expense

5,346

 

4,981

 

4,062

 

18,955

 

13,811

 

PPA IIIa and PPA IV repowering related impairment charges

64,030

 

-

 

-

 

108,830

 

-

 

Non-GAAP gross profit

140,754

 

55,925

 

72,765

 

276,073

 

211,392

 

 

 

 

 

 

 

GAAP gross margin %

15.4

%

17.4

%

20.1

%

12.4

%

20.3

%

Non-GAAP adjustments

15.0

%

1.7

%

1.2

%

10.7

%

1.4

%

Non-GAAP gross margin %

30.4

%

19.1

%

21.2

%

23.0

%

21.7

%

 

Q422

Q322

Q421

FY22

FY21

GAAP loss from operations

(40,568

)

(52,592

)

(13,505

)

(260,992

)

(114,502

)

Non-GAAP adjustments:

 

 

 

 

 

Stock-based compensation expense

31,027

 

24,031

 

18,823

 

113,965

 

76,132

 

PPA IIIa and PPA IV repowering related impairment charges

68,535

 

-

 

-

 

113,335

 

-

 

Amortization of acquired intangible assets

37

 

37

 

-

 

223

 

-

 

Non-GAAP loss from operations

59,032

 

(28,524

)

5,318

 

(33,469

)

(38,370

)

 

 

 

 

 

 

GAAP operating margin %

(8.8

%)

(18.0

%)

(3.9

%)

(21.8

%)

(11.8

%)

Non-GAAP adjustments

21.5

%

8.2

%

5.5

%

19.0

%

7.8

%

Non-GAAP operating margin %

12.8

%

(9.8

%)

1.6

%

(2.8

%)

(3.9

%)

GAAP Net Loss to non-GAAP Net Loss and Computation of non-GAAP Net Loss per Share (EPS) (preliminary & unaudited) (in thousands)

 

Q422

Q322

Q421

FY22

FY21

Net loss to Common Stockholders

 

(47,172

)

 

(57,077

)

 

(33,323

)

 

(301,408

)

 

(164,445

)

Non-GAAP adjustments:

 

 

 

 

 

Loss for non-controlling interests

 

(3,611

)

 

(3,315

)

 

(15,182

)

 

(13,678

)

 

(28,924

)

Loss (gain) on derivative liabilities

 

56

 

 

(54

)

 

13,356

 

 

(566

)

 

15,000

 

Loss (gain) on the fair value adjustments for certain PPA Contracts

 

73,252

 

 

 

 

 

 

122,290

 

 

(1,053

)

Interest expense on Interest rate swap settlement

 

 

 

 

 

10,879

 

 

 

 

10,879

 

Contingent consideration remeasurement

 

 

 

 

 

(3,623

)

 

 

 

(3,623

)

Stock-based compensation expense

 

31,027

 

 

24,031

 

 

18,822

 

 

113,965

 

 

76,132

 

Amortization of intangible assets

 

37

 

 

37

 

 

 

 

223

 

 

 

Loss on China JV Investment

 

 

 

 

 

 

 

1,446

 

 

 

Goodwill Impairment

 

 

 

 

 

 

 

2,000

 

 

 

Adjusted Net Loss

 

53,596

 

 

(36,378

)

 

(9,071

)

 

(75,728

)

 

(96,034

)

 

 

 

 

 

 

Net loss to Common Stockholders per share

$

(0.23

)

$

(0.31

)

$

(0.19

)

$

(1.62

)

$

(0.95

)

Adjusted net loss per share (EPS)

$

0.27

 

$

(0.20

)

$

(0.05

)

$

(0.41

)

$

(0.55

)

GAAP weighted average shares outstanding attributable to common, Basic and Diluted

 

201,200

 

 

186,487

 

 

175,922

 

 

185,907

 

 

173,438

 

GAAP Net Loss to Adjusted EBITDA reconciliation (preliminary & unaudited) (in thousands)

 

Q422

Q322

Q421

FY22

FY21

Net loss to Common Stockholders

(47,172

)

(57,077

)

(33,323

)

(301,408

)

(164,445

)

Loss for non-controlling interests

(3,611

)

(3,315

)

(15,182

)

(13,678

)

(28,924

)

Loss (gain) on derivative liabilities

56

 

(54

)

13,356

 

(566

)

15,000

 

Loss (gain) on the fair value adjustments for certain PPA Contracts

73,257

 

 

 

122,290

 

(1,053

)

Interest expense on Interest rate swap settlement

 

 

10,879

 

 

10,879

 

Contingent consideration remeasurement

 

 

(3,623

)

 

(3,623

)

Stock-based compensation expense

31,027

 

24,031

 

18,822

 

113,965

 

76,132

 

Amortization of intangible assets

37

 

37

 

 

223

 

 

Loss on China JV Investment

 

 

 

1,446

 

 

Goodwill impairment

 

 

 

2,000

 

 

Adjusted Net Income (Loss)

53,596

 

(36,378

)

(9,071

)

(75,728

)

(96,034

)

Depreciation & amortization

15,418

 

15,448

 

13,375

 

61,600

 

53,454

 

Provision for income tax

209

 

336

 

451

 

1,097

 

1,046

 

Interest expense (income), Other expense (income), net

5,227

 

7,518

 

13,937

 

43,162

 

55,545

 

Adjusted EBITDA

74,449

 

(13,076

)

18,692

 

30,131

 

14,031

 

Use of non-GAAP financial measures

To supplement Bloom Energy condensed consolidated financial statement information presented on GAAP basis, Bloom Energy provides financial measures including non-GAAP gross profit (loss), non-GAAP gross margin, non-GAAP operating profit (loss), (non-GAAP earnings from operations), non-GAAP operating profit (loss) margin, non-GAAP net earnings, non-GAAP basic, diluted net earnings per share and Adjusted EBITDA. Bloom Energy also provides forecasts of non-GAAP gross margin and non-GAAP operating margin.

These non-GAAP financial measures are not computed in accordance with, or as an alternative to, GAAP in the United States.

  • 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 net earnings per share is diluted net 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 Bloom Energy

Non-GAAP gross profit (loss) and non-GAAP gross margin are defined to exclude charges relating to stock-based compensation expense and PPA IIIa/PPA IV repowerings related impairment charge. Non-GAAP operating profit (loss) (non-GAAP earnings from operations) and non-GAAP operating margin are defined to exclude any charges relating to stock-based compensation expense, PPA IIIa/PPA IV repowerings related impairment charge and the amortization of acquired intangible assets. Non-GAAP net earnings and non-GAAP diluted net earnings per share consist of net earnings or diluted net earnings per share excluding stock-based compensation, loss for non-controlling interest, loss (gain) on derivatives liabilities, loss (gain) on the fair value adjustments for certain PPA derivatives, goodwill impairment, loss on China JV investment, PPA IIIa/PPA IV repowerings related impairment charge, loss on extinguishment of debt related to PPA IIIa/PPA IV repowerings and the amortization of acquired intangible assets. Adjusted EBITDA is defined as net income (loss) before interest expense, income tax expense, depreciation and amortization expense, stock-based compensation, loss for non-controlling interest, loss (gain) on derivatives liabilities, loss (gain) on the fair value adjustments for certain PPA derivatives, goodwill impairment, loss on China JV investment, PPA IIIa repowering related impairment charge, loss on extinguishment of debt related to PPA IIIa/PPA IV repowerings.

Bloom Energy management uses these non-GAAP financial measures for purposes of evaluating Bloom Energy’s historical and prospective financial performance, as well as Bloom Energy’s performance relative to its competitors. Bloom Energy believes that excluding the items mentioned above from these non-GAAP financial measures allows Bloom Energy management to better understand Bloom Energy’s consolidated financial performance as management does not believe that the excluded items are reflective of ongoing operating results. More specifically, Bloom Energy management excludes each of those items mentioned above for the following reasons:

  • 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 of Bloom Energy current operating performance and comparisons to Bloom Energy operating performance in other periods.
  • 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.
  • Loss (gain) on derivatives liabilities represents non-cash adjustments to the fair value of the embedded derivatives associated with the convertible notes and other derivatives.
  • Loss (gain) on the fair value adjustments for certain PPA derivatives represents non-cash adjustments to the fair value of the derivative forward contract for one PPA entity (our Third PPA company), a wholly owned subsidiary.
  • PPA IIIa and PPA IV repowering related impairment charge represents non-cash impairment charges on old server units decommissioned upon repowering.
  • Loss on debt extinguishment related to PPA IIIa and PPA IV repowerings.
  • Goodwill impairment related to the acquisition of BE Japan in Q2 2021.
  • Amortization of acquired intangible assets.
  • Loss on China JV investment upon sale of our equity interest.
  • Interest expense on interest rate swap settlement.
  • Contingent consideration remeasurement.
  • 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.

Backlog is defined as the total Product, Installation and Service Revenue associated with systems that have not yet been accepted and the Service revenue associated with systems that have been accepted but not yet placed into service. Investors rely on our backlog to make estimates of future Company revenue. Backlog is used by the Company's management to project future revenue, manufacturing, and CAPEX investments. When assessing backlog, management assumes annual renewals per contract terms, which generally varies from 6, 10, 15 or 20 years.

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 Bloom Energy results as reported under GAAP. Some of the limitations in relying on these non-GAAP financial measures are:

  • 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 net earnings per share can have a material impact on the equivalent GAAP earnings measure.
  • Loss for non-controlling interest, loss (gain) on derivatives liabilities, loss (gain) on the fair value adjustments for certain PPA derivatives, though not directly affecting Bloom Energy cash position, represents 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 net 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 net 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

Bloom Energy compensates for the limitations on its use of non-GAAP financial measures by relying primarily on its GAAP results and using non-GAAP financial measures only as a supplement. Bloom Energy also provides a reconciliation of each non-GAAP financial measure to its most directly comparable GAAP measure within this news release and in other written materials that include these non-GAAP financial measures, and Bloom Energy encourages investors to review those reconciliations carefully.

Usefulness of non-GAAP financial measures to investors

Bloom Energy believes that providing financial measures including non-GAAP gross profit (loss), non-GAAP gross margin, non-GAAP operating profit (non-GAAP earnings from operations), non-GAAP operating profit (loss) margin, non-GAAP net earnings, non-GAAP diluted net earnings per share in addition to the related GAAP measures provides investors with greater transparency to the information used by Bloom Energy management in its financial and operational decision making and allows investors to see Bloom Energy’s results “through the eyes” of management. Bloom Energy further believes that providing this information better enables Bloom Energy investors to understand Bloom Energy’s operating performance and to evaluate the efficacy of the methodology and information used by Bloom Energy management to evaluate and measure such performance. Disclosure of these non-GAAP financial measures also facilitates comparisons of Bloom Energy’s operating performance with the performance of other companies in Bloom Energy’s industry that supplement their GAAP results with non-GAAP financial measures that may be calculated in a similar manner.

Contacts

Investor Relations:

Ed Vallejo

Bloom Energy

+1 (267) 370-9717

Media:

Virginia Citrano

Bloom Energy

press@bloomenergy.com

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