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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230209005625/en/
Investor Relations: Ed Vallejo Bloom Energy +1 (267)
370-9717
Media: Virginia Citrano Bloom Energy
press@bloomenergy.com
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