Bloom Energy (BE) 5 Aug 212021 Q2 Earnings call transcript

Good afternoon, and welcome to the Bloom Energy Second Quarter 2021 Earnings Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session, and instructions will follow at that time.

As a reminder, this conference call is being recorded. I would now like to turn the conference over to Investor Relations. ahead. go Please

on our Good us operator. conference in and you Form have thank To with the press Thank full in SEC with the filed recent statement. SEC Bloom afternoon today's Energy's products, year new revise factors actual joining looking on furnished are we call our on this and results, earnings XXXX second from for earnings include supplement release have you, company's call future X-K conference on everyone could XXXX. we the QX call. time, including quarter supplemental cause call. Relations website. Form time for XX-Q. strategy, discussed important contained statements These statements any Investor business and with and along financial we will it identifies the financial our include and detail our and outlook discussing information differ that performance. regarding risks those risk reports obligation most This will statements made subject matters to that to documents that assume position, forward-looking liquidity, periodically our future posted from no in about to to financial to XX-K market, reference events as results forward be today XXXX throughout statements this documents uncertainties materially These We The forward-looking

Accepted non-GAAP press and GAAP and in measures with the A GAAP. measures in reconciliation Relations performance in earnings in is prepared our Accounting our non-GAAP release a are prepared call and earnings Generally The to GAAP for measures release, financial available on and not are Investor of with website. refer financial During in XXXX our XXXX or included financial U.S. to QX between substitute superior non-GAAP Principles accordance accordance addition and this press we financial measures. QX to not

overview Founder, Sridhar, of quarter, Officer; will now And the are Chief after in quarter. will K. prepared they K.R. Greg call On Cameron, Officer. call K.R. I Chairman business highlights R. Financial review and and an will Executive questions. the and the take turn remarks financial the today of with highlights Chief over operating begin to the the Greg will

day, energy Greg. of I'll the are, for Good the very my and you much three turning predictability. and us our resiliency, electricity joining it before From that and this thank when picture and big company market the a on to perspective, matter over sustainability on key comes progress to state energy it call. thoughts share attributes cost

Here propositions. are the these with in value trends to see we respect marketplace the that

per the ability lingers strikes. they companies the outages operational double in to World The this that States, one year. XXX% after disruptions of resiliency. is industrial basis the XXXX even is on in First, and United month experienced just power a Bank's the impacting from typical number microgrids research a to that and states of to operate increased are Bloom adverse situation The a month. global month number power That is ago. least in for worldwide outages the lost disaster time reported X.XX once energy years two major in worse. in report increase XXXX. XXXX. at outages This availability. ballooned shows Energy all just a around They're of Their X.XX power XXX on had Contrast the companies everyday events to and world disasters with cause These and which life. supply In on impact our a commercial XXXX period businesses witnessing XX frequency power experiencing natural that reliability on that prolonged the

protected microgrids grid utility site and of Bloom microgrid business or the experienced time. disruption several hundred from Our locations outages our power customers XXXX XX% during

The of sustainability Now has second Wildlife Power Forward proposition X.X the tracked Federation's to report sustainability. and companies World decarbonization. to value commitments the

XXXX, We decarbonize are XXX aggressive Fortune commitment, way seeing In to a of or XX in. emission companies leading XXX companies, goals are zero a dramatic waiting for set related climate shift setting in XX% businesses energy are not the kick Businesses footprint. to carbon net offset and efforts their nearly timelines. are with making the regulation

a Bloom future-proof As platform companies their targets fuel approach continuity science-based to needs. come, flexible satisfy years and meet their ways sustainability simultaneously while a commitments to their Energy business for pathway the look for to enhancing resiliency with and

to let's Now, predictability. turn cost

replaced need and Policy be online be resilient disasters, about facts assets for to expensive consumers. few with associated generation and come enable power are electricity. to by of transportation stranded operating will In the grid climate-related shouldered by reconstructing, framework updates rate mandate nation's cleaner and our coal structure a grid electrification regulatory newer upgrading and to assets will are Here and aging more future the alternators. building, that to costs and aging will need decommissioned nuclear like the

and big set and developments Bloom. of Again, price come to All will unpredictable lead for escalations contrast steep these consumers. of to tags with utility prices

years have costs electricity our prices we reduce ability to the offer customers. demonstrated Over our our and to lower

of confident We are trend. committed this to continuing and

cost Bloom the solution on behind predictability. Our meter always offers

with years. can for customers their electricity up in rates tolling us to lock XX Our

grid-based electricity down. coming of increases, our costs costs are as So

Bloom's grid-based and well resiliency, rates. cost and year space. grow. see perfect opportunity is the this first our energy the as of are Bloom in well a towing of half on promise for and unpredictable of provider executed delivered seize transforming believe a underscore predictability While facts we solution as I cost and we offer sustainability. firm I Energy this in to positioned We the core predictable these value electricity it and

about want investments. to Now, I year-to-date key talk and progress our

long-term want future to technology future important infrastructure. is I in confident areas are we and to solutions fulfill demand are putting That are and capital and customers. These our growth, on offer and The they value work our advance people focus technology value now We create further two to our our investing our leadership and investments the investment will shareholders. leadership. why for enable

fuel technology our with leadership. for excess up start Bloom for servers electrolyzer the Bloom is XX% solid This today. to a across is product not renewable concept, efficient we advantages energy hydrogen unveiled other few waste a and reality. development a just company to a proven a most to It weeks deployment unique offers ago the multiple economy. clean It Energy the relies produce used Electrolyzer. energy intermittent date efficient same It than applications high or broad me major electricity our market on-site functioning of a that hydrogen sources The proprietary more hydrogen leap by forward technology the to on and Let provide hydrogen In product any is platform and electrolyzer commercially heat. on and variety energy oxide using efficiency. at including but

input price its efficiency market hydrogen any to produce Given than a alternative through expected at hydrogen on make Bloom and the options lower Energy's electrolysis is Electrolyzer to today.

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also path progress our we the centuries-old milestones industry. maritime key in achievement two marketplace of a continues marine decarbonize on as the to Our announced

for design cell for Service. vessels fuel classification We the maritime initial an liquefied received has with also society. Shipping approval carrier power Bureau heavy gas an Qualification engineless New premier and as natural international verified powered source Our Samsung DNV, a as Technology industries of were American of from principle part alternative

more megawatt landfill heat in months ecoplant. and is this announced ever silicon And solid are company. Korea's biogas, and developments In a oxide with segment. have market we'll that collaboration committed utility valley we will sector is to deployed Energy new initiative. first in first servers The project construction the a project. CHP about year ahead. leader share technology our in to combined X.X begin biogas marks on the system scale power installation SK Bloom be the and South operational with are investing marine biogas We cell this And fuel we This and this major based use today a

and of Now, Since more let the than jobs total number the investments to in people me infrastructure. XX%. increased Bloom our of start its our briefly pandemic, turn by has

accelerate and sales more our hires this headcount in R&D operations Additional demand. our will create The marketing demand hires in will will fulfill innovations. and increased

United opened who's services, over energy Sales Business Also, oversaw of the which our Energy, and our three in progress to factory the sales NextEra welcome scale President, in turn our served Commercial and that, expanded will to are Director reach energy Vice of Dubai in field presence. have sites through offices in and We for are States our I the joining want Billy it Billy America, with and over the Jose and generation These hire Prior staff our focus And want One clean where Head electric and of Fremont, to new With that assets. investments he on developments Inc., and Officer. reflect Chief utility of Greg, production San and Japan, go we development at columns confidence Billy. me to he solar and provider extend support and and Welcome fuel let Brooks, facility Sales the critical Energy financials. capability headquarters our solutions to a as executive I'm was our who be Latin Global excited X.X international enhance is football manufacturing emphasize adding made. in will our Executive abroad our growth. future to including of general company Executive CEO the making on in particular key California, that cell the Americas. Development where Bloom

of made half half K.R. I'll to Thanks XXXX. detail. the each our a first Yes. more busy great wanted achieved the record we've and some accomplished in quarter deal products We I revenue progress of in through year. roadmap acceptances We these We to But technology to had deliver go our a first new on give through highlights. the market. in of

We the of to in invest meet both our capacity U.S. manufacturing to demand. capability in and continue needed We build the the commercial out internationally. future commence

chain like the roughly on flat global from last we hold As the manufacturing quarters. these over focus pressures us cost other relentless costs The pressures. has product to we've to emerge offset businesses supply pandemic enabled reduction experienced few team's our some

across strength Given our of we're are seeing targets. our all business, XXXX we reaffirming the

performance. go our First, financial through me let

progress And the the the the I'll release we the this for foundation the of we've of growth is and to the previous quarter's that momentum to have that kept for strong out are closer to creates be relative Building Please versus analyst to XXXX our year. laid slide and made note, earnings prior day. us at quarters. We information website. proud supplemental for referring and the that beyond. last And we've how format milestones you the continue presentation business we like performing off

call quarter, were quarter to to quarter deals Acceptances up of up I've in on as I equity the XX% the pleased versus I'm mix basis, these the team second our to a points and timing expected spoke versus points market our XX% and record second in completion having one risks offerings. to In quarter. annual our relationship of of look of of partners why business XXXX. you XX%, acceptances acceptances. encouraged the accepted second to Although, our our XXX XX revenue financing our second of totaled financing to XXXX, quarter. is tax quarter's our X.X $XXX.X provide reasons down quarter challenges the non-GAAP roughly quarter for gross quarter the support Revenue all of not We last versus partners financing quarter impacted quarter second the our is increasing XXXX. but the were revenue. achieved XX million worked second the report megawatts testament this prior On an at of quarter. attractiveness financings second margins with versus The the simply margins. the This

second initial the legacy margin. non-GAAP will Also global overall These overall of product As outlined EPC to to In profile we within secured ensuring with earnings quarter the mentioned and they're pressures the quarter's mix efforts first the our the backlog. is outlier emerging realities to last project few of were margins. project partners margin the down In years the project margin the pandemic opening, very XXXX, driver. at project while XX two reduction rest the XX tied some flat last that project experiencing quarter from gross had manufacturing the profitable. our earn the is reinforce service costs installations I product quarters. future as negatively the development on was X% primary installations. at the level not are find results relatively historical lockdowns, XXXX business I the over expected call, we we cost the of second impacting This quarter, next our in Also, to largely an versus of return of perform XX% The indicative as U.S. in U.S. quarter a we installations. lower had megawatt our a to

freight by component are We and our increases being in impacted on costs. pressures manufacturing

to We've offset are margin to most the the remainder we pressures. through likely the these they initiatives creating year of three gross While non-GAAP pressure. expect to of to of these points temporary, pressures be two implemented persist cost of

our our priced reduce the year and to of form we've from material to costs or partnered manufacturing Asia. supply examples, consolidated shipments commodity lean purchases We've with As remainder the costs. heads for teams cross-functional chain

successful cost. environment been reducing to quarter commercial aggressively our post-pandemic to we are business we'll XXXX. offsetting strategy. the up keeping So primary increased scale Non-GAAP in tenant $XX.X million in costs reduce and as flat. operating our we've expenses model in the and And roughly our to our remain costs the expand fundamental the product far $XX.X we as growth to drivers is increases control our our from exit more A capability, ensure of technology second to of million, product support quarter The our increase second grow. environment invest continued to commitment our is ready committed

technology and in our tariffs include the us adding this product grow growth processes analysis across growth. quarter support strategy. international for product we've a have accelerate and We expansion to to to Within our sales and investing geographies go-to-market and in investments our support innovation lines in detailed these and significant materials markets confidence Commercially, our business our made strengthening several resources in to commercial adding we're talent our lovers. ability needed of international and strategy, conducting new markets engineers U.S.

are meet For and our operational and building to and control external added expertise needs. example, deploying in are in units our we've investments demonstration we our the resources functions technical accounting environment regulatory compliance current leveraging within

expense external repeat. our Many not are base. are based investments and project will within increases the in headcount While now of our

decrease As such quarters. we expect in operating expenses to subsequent

of gross second $X.XX non-gaap and to XX.X million improved the revenue these For working the investment had the EBITDA five losses of a vehicles an customer prior positive margins executed In with as lower be cfoa non-GAAP we EPS of slide in non-GAAP percentage operating to our analysis flow to loss and expenses. operating our With respect quarter top-line growth we debt result loss XXXX adjusted increased million were expect year. fuel cash quarter financing $XX.X as million. non-GAAP Adjusted expense of second capital. I and a year a the to for loss was $XX.X comparable operating the the of

while XXXX the versus $XXX.X year second been debt brief quarter reflecting technology million had quarter Our $XX.X remained efforts Last the total first provide at to million, underway the to first balances flat our relative several $XXX $XXX our CMO, versus versus improved million has cash recourse and to last debt recourse reduced, We've last update I want accomplishments. our deleveraging presentation Moore's million a Sharelynn quarter. quarter.

position XXXX are our us that for out the K.R. As on we and laid well XXXX milestones lead, in beyond. for track

and energy specifications put in to We continue the in servers to performance according data. service fifth more continue The to are Bloom gather make X.X. generation progress demonstration to we our the of operationalizing performing units server

Fremont, we've we facility stacks we assembly new To facility is gigawatt stack our cell expect make manufacturing the future fuel perform Sunnyvale manufacturing build facility. add to lines As stack to is add one our our we in manufacturing. in demand, need in several additional X.X previously and to capacity meet Delaware staff final operationalized of years. discussed, Newark California large in our Bloom over This in enough and coming California. facility the in being

with the X.X. While the ago roughly we've capacity XXXX. created allocate we we of to Highlighted, most shipments we'll commercial to the X.X back short-term fan time meet electrolyzer operationalize, energy demand. X.X in unveiled need operationalize it's K.R. new require This of a Beginning through this allow while date XX our clean efficient we tooling. to demand fall become portion enough bloom Electrolyzer, our weeks A hydrogen providing apparent Bloom as year. shift manufacturing leverage us the will to we to expected produce few more next capacity, that meet investment X.X expect can we additional will Bloom bloom to XXXX manufacture stacks/ XXXX, Bloom our Once

our we'll move excited with To of or lab on working announced energy's clean through third department first several shipping from coming also in gas test commitment the hydrogen on-site we're National the use biogas Laboratory nuclear capitalizing to second quarter quickly to of in opportunities, energy months. Idaho and first have to customers innovation our reflecting In installations are that We renewable the create electrolyzers. natural and to the commercial in the electrolyzer. commissioned our be and U.S. should the Bloom

secure working year. a technology and capture expected carbon lab we Our performing in is this as to demonstration the are

platform our competitive noted, previously address platform I've different flexibility market unique the a As provides Bloom's same and by for its to technology multiple through clear the with advantage approach needs. us end opportunities customers’ leveraging

discussed, expand we As the we products do they XXXX as to expect new we needs. our to But meet are significantly previously revenue. product offerings not customers’ to our contribute imperative

Importantly, this growth to value to products for and base key geographies, clients and which profits us we are shareholders. the create ensuring of expand to that diversified enables our industries approach revenue our have across stream and drive multiple

only momentum pipeline to and in with percentage While opportunities that on provide always backlog we on energy reflects pipeline. larger opportunities a increases offering the transactions. international bookings large current in The include continue we've of server pipeline, to our for states, are annually. we greater In megawatt made see and our new commercial product changes focus

our Brooks partners customer very to U.S. discussed join needs. we and in Muhammad's traction identifying K.R. the finding team is team are have leadership. gaining As already Azeez sales Internationally are seeing his C&I leader and potential excited of Billy benefits as the

through and We look XXXX opportunities we the pipeline into our reaffirming we bookings. by target. and slide XXXX all additional forward seven, and are this moving these On are encouraged to our highlight of progress outlook and

a timing $XXX on between expect to the $X depending late we billion million revenue, For few projects. year of

XX. achieve gross our our supply through believe of managing year chain and are pressures will margins I total non-GAAP We we

roughly to of non-GAAP our of targeting revenue. We invest X% will while capability operating continue our in income

on flow outlook We are XQ encouraged our cash performance and CFOA approaching by as in positive. maintain our

are be While third These aspects that our on framework project completions, not expecting similar targets. op and accounted in not EBITDA. annual I a on looked our of the to few a quarter I to non-GAAP quarter. in expect highlight. in should are that yearly wanted gross result we XXXX do at slight I change quarter third margin Based stress basis. second likely and would revenue provide our be do guidance similar quarterly an I'm margins should to improvements There for and business improvement

weighted quarter. always business more the particularly Our fourth is to half, second the

half be expected to I'd of operating project the we year the year different. had in quarter summary very In timing a very are future. completions, our performance strong second first the in of and this expect confident we Given in no the

We and operations new are customers gaining new opportunities seeing in and commercial geographies. are we our momentum with

and We our are meet investing teams to customers’ to and origination front-end our in technology, expand manufacturing continue needs. platform

the to a is business Our Bloom profitable a believe offer fuel our We on deals be up a there real line well-positioned management demonstrated feel Simply put, in distributed in questions. this improving for value in results. open flexibility with platform-like focus in we that that, and With products decarbonization other doing no that's and operational We're our real driving robust service for is excellence, the generation. let's as is products creates revenue. which leader discipline sector operator, has Energy and shareholders. platform high-quality companies with pipeline of team financial

sir. Thank you

Morgan and question Stanley. We Please Our will begin go of our Instructions] from Stephen [Operator Byrd session. question first ahead. now answer

are Hope afternoon. well? doing all Good you Hi.

Yes, Stephen, how are you?

I of I'm update a the thorough doing capture. wanted to carbon on for first talk you. on well. topics. Thank Thanks lot

kind prepared to carbon You -- scale of it think capture. on that we more any roll technology a a the wanting Is should before to broadly. you gave you for during the pilot Is Or steps on small I'm capability is next pilot. How kind think of about kind kind And all about start of by of broad the out deployment? an this thinking of would remarks. I you of update chance showing customers development? there a begin your of sort this it cadence likely mentioned

about it can being you clear Steven with as is that scale. that the anything intent the being Bloom we in the in and carbon for would to both really terms we footprint be a you in the meaningful, you said big stent move that front of start would make So know, the we on as on we commercial of as it. do a needle Again on are the would pilot able well see everything cadence world it as

of capture single So large thinking every to tube. at obviously, the in not a to Not in scale in has place be is about megawatts is hundreds carbon a It way the in be it to That which has scale. test work. this. laboratory, these working in

our So, commercial are -- going want partner we now. very And but in reconciliation clearly infrastructure what encouraged bills. with they're engagement as utility a support. well megawatt we state/federal they're of by it's partners some and the start saying that scale, with as people the take to but the with will that with partners We to our in with

one natural democrats is capture carbon think upon of ways I the with figure common and gas. to areas both that out agree republicans

things the the more goal sweet this with want pilot see quickly into like great spot we more the getting as be clearly law, likely looking these we with a as that enacted these and solutions expect will we start can. with of or and we what faster large there we utilities have as and So proclamations with should to

of the though terms support so to the deployment package. to perhaps, giving I'd federal touch your some bipartisan credit for I'm hydrogens 'm hydrogens on I the not And business other you I rate the package law? fairly curious helpful. as extent view -- was But electrolyzes, frankly became smaller your well. Curious, of might broader of that package support. see as thought for of your any broader you growth, large mentioned well. -- the impacts to really on green really thinking that know reconciliation on may include that thought enough to That's do elements what in I about

change as clear getting in from a that country. is be finding are all early only a technology, there So, American is of it And competitive days least climate viewed with a understanding American us what It get. and the is decarbonization, what hill American the Of reading which manufacturing for importance in are in this technology of we at need we to also to hearing benefit not gain is hydrogen, this the out therefore in advantage area it's national we terms of needs what and importance. national a on for are of jobs but leader industries. our companies leadership to with in we

you and at to Bloom we Bloom what commercial electrolyzers if manufactured it we skill. technology. So it an look off, high Bloom and with try at able check integrate box American do is at temperature the technology. innovative And an American is how are to

leg We a up have on everybody else.

have green our industries then And those have, things into decarbonize like you the account steel, they So put able industries can to hard take advantage together because like U.S. and chemicals. when you're to that, combine to to growth. policies are extremely world. about do. those the the what to mean thing will is for bullish right are reasons the It necessary. It's future These product sell a we our

make. an is the and investment that to I is for investment think right the country it's the making it country

meaningfully. contract I legacy I'm older touch Greg, of think about maybe mentioned is impact for And that. or just number, the ASP results. thinking did that, wonder you think that -- to had then fall What some bit? lastly And an a going around you Can of that. financial through a the on The I'm mix. you just I little gave of terms Understood. me that color it trying the ASP in as to impacting I just guess,

think understandable. cost, forward? I'm might to product look keeping decompose costs and which this is You're able that ASP flat, impact But reduce just but you're not trying the what in going that environment to like about

half. I'll context Steve, are down product our little on And you give costs a that. for X% first Yes, the year-over-year a little

of the made. proud team the progress we're So, has

one not We our flat we last we to And quarter always We significantly your and in digits. backlog year. It's the quarter the But in couple like expectations. And outlier sales framework second off part be to particular. double versus deal our down for the the year-over-year. was are -- down it it of impact quarters. was did price. were down financial within that an point, the the on It and margins. impact backlog the deal were first in It's did in And previously.

to guys Listen, that call that But we give lot other important back with or grow it. on we that we've somebody And going quarter's So the I that that it. world. pretty look as the backlog, last got you do through transaction can got of think we're back with a some to sense around going we relationship forward. deals some think look project development with learned like we've I tried of no

was of year truly as it's this -- the part its the just a it is outlier. whole So -- bit well quarter ASP framework comes of impact part in for both through margin. the And an little as this in

you. on. pass I'll it good. Very Thank

Thanks, Steven.

Our from Strauss Mark go JPMorgan. next of question ahead. Please

for Yes. our Good questions. you afternoon. much very taking Thank

your less How start margins your wanted we bit are a installations. Just could evolving Some to there? of a expectations more to the Can conversations occur go that start you give finding to are color back current comments and and variability seeing? those in maybe partners some EPC as just what result? around when for us for

Thanks Mark. your promotion. again, And congratulations on Yes.

voice. your hear to good it's So

Thank you.

in of a engage that Listen, order on able made our to to third that them progress. level we're the runs who EPC parties need do to need we're and business. going to the Tavi they're Joe able to a going our that installation group a we've lot standards of outside be legwork of stuff team of with the has installations to the provide lot to sure done and make

of than a as it made The really If trying not on we've be well. marketing we really broaden Sharelynn front is or side. other Think in do is it. the to And looking that probably partner, expertise they're a financing for as it's amount can partners just going end it bring a through a the technology with as progress partner where that tremendous integration able to somebody can. as but Moore's do relationship the at team to lower not them place around we replicate who's that do partners channel only can the of somebody EPC, or cost what can

that's So something create really value it. need a to lot of find we for to going

this some at of cycle, or we that of go And look it'll larger be coming months which that those as contracted they're one, the it do one third relationships. by to will from in be business We award are projects but until need partners to the the We through project little frustrating today able our customer, timing. that's of about the things twelve that. six think things given You our you now. a is different do some EPC installation from use a bit in party point our are to us. a two, another is But secure a

percentage. this think for primarily a were smaller those for standard a region of get hopeful or see installation be by going it see you probably if year I see. done get to through to think you year, into as they'll one by specific the our I'm track, current installations about Probably more we're this maybe I next of But who with to start And project two our or a you'll but you'll a partner then, on in for a through begin move smaller everything able somebody and then started be to as with a finished take year partnership year. in can customer. larger size, large do that's our deal done next some project course Bloom. that And pipeline kilowatt you'll

range? below of then, case some the upside risk they scenario is in if to of these if calling and there kind there or thinking a larger the late risks or And if December the grand if just guidance that vice magnitude can project out? come about is you January. you're above But your worst of about doesn't of all in matter comes guidance of guidance or in, things none I your downside, excellent. the your them projects mean, risk versa come early scheme talk really the Okay,

Yes.

of at we late standpoint around January can those. upside over I versus standpoint, the So it installed risk of deals doesn't the make difference we from early project say, up those timing happen. be those truly billion. And I course is a systems I look as a and get are three from deals because year. an don't XXX like December, on that and any between would that the happen. a the and two there's would as that that And always risk each the the given there But out sold they are look amount couple $X through manufacture There's that a the of difference where

that So growth think a you really into where facilitate upside as year help I going about about be this are and the it's year opportunity really next as with online still for next more year. number get we to we capacity have to billion to think

helpful. Very much. very Thank you Okay.

Mark. Thanks

Mandloi And Credit speakers, our of question from next Maheep Suisse.

You your may question. ask

and product this Greg the if the taking the [ph]. that Korea frac talk launch announce on Maybe can Hey, a for probably thanks pilots And about in later and opportunity. in good question. teams one year you you new electrolyzer South afternoon just the the U.S. did and

feedback So discussions revenue in think on the the understand opportunity XXXX from maybe what today? XXXX with wanted are initial in or about how should getting and to customers recognition you you electrolyzer

think from they hydrogen, to I again that congratulations about at made. your and Look too respect we're hear on K.R. promotion right? Nice Look, announcements welcome. super it doing today, are the you. and that we things Maheep, excited to the with

on quarter both This market economical. shipping as National unit to a carbon to speed a nuclear for power more is we Laboratory. hydrogen zero well from a Idaho be as to This the lifeline are

in when they this a is plants power possible running during theme understand capacity not big integration is of it's National full the electrolyzer. the nuclear Department potential the huge Energy, it, U.S. is daytime, step. high the energy and day nuclear and because arbitrage Idaho of would like temperature For way at the the them. we entire about thinking the nighttime our it that plants be are That With it be solar huge future industry cited the of This zero Laboratory in carbon Department a sun can if shining to as can already drain And can sites providing economic large be go hydrogen things the industrial it's in these and can for make is the and nuclear is nitrogen. a and time where heat on hydrogen electrically, And projects -- quantities. the like during power that. made and that

at entire importance this. can practically So just if the look end to end appreciate system you of you it the

our Bloom knocking that door and pick single choose opportunities day at conviction many only the that we are every to of come deliberate ones So have at very we the on.

that's So the say, come choose ones to amount it to part. the that of yes not is the we opportunities hard to us. It's

Okay.

and hydrogen. second that to made And you make heat electricity can Heliogen. again, announcement The is we use

going a get production for of energy sunny that for of costs. to with [ph] steel heat and You high the day is is production Any using can about out areas. in substitute These that in array with heat the because barrels coming like diversion heat concentrating to and excited the of projects other built of we worth any million Hughes opportunity. These XX% potentially trying industry. renewable That's only part significant scale needed. market the use game XXX are to and only equivalent. energy are Bloom They'll place numbers. why acres And of large is process significant working a a that a very we decarbonize make portion are are that cost happen to in small changer, electrolysis and electricity oil as electrolyzer. use offset not process millions decarbonize manufacturers the dent electricity the hydrogen is numbers. and of I heat It’s material that that waste hard a to that's that and quantities, heat custom in Working for which solar hydrogen temperature Baker build way

So right those in we're dollar our is the and the our maximum can going focused and now segments is what that to focus. that focus decarbonization have hydrogen from That's a after on. economically just has impact fact invested it

for We long this are game. in the

today our ahead prototypes of We with strategy. else have early a even what far we're clear anybody doing But in field. the is

-- going one financing small half could helpful And to? arrangements maybe or related think else? That's just the really of something about K.R. how that those housekeeping. Was And If about just remind one we for forward or in it the tax talk was QX, what in should equity financing Got XXXX? it. customer us second

Yes.

a we the if financing secured just the side. teams our only order in our acceptances team we we course it, in the issues our teams quarter us but we a the out we through at time decided we had our that quarter. for to which an things engaged sure okay, our place got forward, year, provider's amazing series you structures that did through job. our if basically incredibly begun absolute when had not second of solved. raised quarter So, remember And those other tax risk last went we and through to of and quarter providers. acceptances. facing process provider work Coming type PPA making was this We and the were to into the the what facilitate already our solved said negotiation of team, XXXX other equity traditional vehicles, needed. was, worked Not The going But the the participate with year customers to like off we had

So of in with we quarter. for as the for effort half, look nearly in we're the second that have don't the second forward we've with providers we that And really made happy us. front relationships

sources capital are go brought. transactions were we Some new the on we as that Bloom as we brought and forward. We previous resilient others folks we've of with that them see worked

about the the and we So that built relationships our we're there. excited team progress made very

All good. That's right. Thanks lot. a Yes.

Thanks.

Our next question from Fargo. Michael of Blum Wells

ask You your question. may

Thank afternoon you. everybody. Good

Michael. Hi,

marine made about the you at talk with to your space announcement of Samsung. on July the wanted I end

update thing about schedule of that in I'm looking you you're your just the that of announcement on arena in in announcement? commercialization efforts Are your one Just that ahead signal for Thanks. light progress on with that commercialization? basically arena. an schedule? Does

K.R. Yes. This is

answer Michael. that me Let question,

is sooner to our highly able one the that I they working team So, least classes, very is right? with out that's interest other get engineering we and our we DMV, at -- timeline. ship there our then kudos with right? put of say moves our a accomplish at forward. looking international on It this builders in in look with what and And than at country a were cargo ships. terms partners. you this you what had that's XX% emissions out economy maritime prestigious. they're classification when came would had in step Samsung found with originally to if was of which that But a year different principle we our if step Samsung partner approval at And we approval when significant a a that announcement trying or be is big So, in were announcement started could ships, society, because we world's look it'll X% when big deal, And is big forward. and that's what And from to for was be two.

including big is passenger other other of outside itself continents. other ships ships opportunity. in U.S. industry builders kinds of getting from But inquiries And in the that a big. ships and cargo So the ship is here very started we maritime And

So cruise liners.

Bureau And what a advisory we we technology approval. from that's ABS, them an global got. And services. the we was and is the Bureau to which of try important certification got is to Shipping again American simultaneously them American a had very is qualification. And we entity, technology which then is get So of a went what and Shipping what new

a top as from future ABS is reason really gas, on heavy so we had this, using the them. than be in whether consumers much So this proofing the which again, do sooner well think dirty But can of or hydrogen this. proof XXXX, that approval to that that. This the future case will foresight. used oil final to from we We natural the But technologies speaks fall. much not it for the cleaner be originally this solution that we organization. planned. can the our will push go future international for it's We believe And -- best expected there a why that is even are many the they're are and option of which in heavy maritime in ammonia can primed too today is seeing be as we're they industry tremendous

for you Thank all that's that. Great. all I And had.

Thanks, Mike.

And our Brothers. Tilley question of [ph] Sparks Noel from next

You may go ahead.

Hi, good afternoon.

general a working terms couple things. if Just biogas you in of talk I projects you're was the about could wondering on.

whether Just a something about of they a like. new in curious little And for cells? fuel and example instance implementation particular to specifically about bit I'm newer, advantage applications are sources what the like are like or sources those like for well-established landfill take

the renewable believe fastest applications. quickest mission get whole We the power right, that especially way natural gas, part this, No. of for zero is base-load is scale biogas critical in probably to to carbon

treatment waste landfills. you water plants waste, if of So, atmosphere has plants put and three each in those and treatment And right? of on think dairy So solid Think that sour of take one they different from wastewater Think animal gas. categories. fall being coming atmosphere. what the is commercial going of common into all of characteristics. the harmful is is than them which is for more to COX significantly to of in them, methane But absence its go lot opportunity a there a to the

you can in is important want highly you way So is, if most you power. thing. pollution, a with and a way do air create if decarbonize use then to probably no that no And to the that reliable finding trap water next efficient thing what the use

So opportunities excited here. about are we three

and of is in We wastewater said comes see plant. amount an gas that enormous We in doing we'll the come are large taking to lot which -- project, with gas of this and landfill months as opportunity operational it about the be talking a of treatment Because company producing power. we within life. no of a plant a drop treatment for people bring play. with sufficient to only thereby not everyday needs is all bottles only essential out to drink. But is power for you operate our play. and water It's that there It's it's in wastewater resiliency. electricity biogas decarbonization When not can its

drop food You helicopters. from can

flush whole toilet have. your doesn't of you not a options bunch If there's

what we beauty power there need to medium this be economically the don't that out. modular soon projects And that's very and be table. is large We gas animal life and system make everyday go for we waste the able some very we will systems. essential are facilities to scale our and to and about of to use get and wired. operational be bring to And the implement to able can and talking this we our small scale able dairy do It's that where Okay. can use

is opportunity. there huge think a I

about are We excited it.

field see trying in grow future. You'll this us to the

and I that your discussion backlog. for interested the the in was Thanks about Great. update. pipeline And

deal then be sort turns an heading where stage mentioned it and backlog. it's costing general you would source And deal deal. any higher and just on horizons seeing trend in which give curious probably to per in of where assume point of a that great. Can you given momentum size that per maybe as I'm at I deal what or walk or just days? these lower. the the insight the through this hitting a sort the close on a size just And you sales marketing your were You given increase we're in costs signed sounds commercial terms, of a

Greg. its Noel,

is and they they think well team course in progress in converts expanding making had and materials from that and we of in internationally. the we the teams this making the for So in needed, sure as analysis that we bookings forward drove with the happy around go really the In that look this months that those that as And pipeline XX expanding. that the cost all and think pipeline the about the six that and right what's it things. the coaching the they the we needed, at we're it. those really team's was the U.S. over In quarter needed, as next pipeline

tied we acquisition just dealings I model consumer in put each see would more and the every and is So confident more really progress and making how here. think accelerating don't that sure place opportunities in I where This as getting see day. the we it about that that you cost like advertising to a looks of we're the and in not you've got what we is amount were

So, thanks Noel.

say not to We question. So I looking more for a think out we to who get run time. apologize to. We're had closing. the half had couple we into couple this are here putting still questions just in this -- is everybody getting in performance happy I'll of quarter We first to just backlog ask a how a comments and this we revenue. in I executing strong year. wanted very of we've

our just pipeline and in us We our to there. confidence continuing commercial for to as front And to giving for invest guidance hone on are gaining seeing talking our manufacturing our end this as it's resources. technology, about reaffirming capabilities confidence what We're I the as in in well we're our in know was out year.

a But And still opportunities I'm those on quarter second are flows. targeting and in any had. that getting around operating cash going the confidence year. are X% that performance We We're we and we've the margins those margin. gross cost how offset on expecting that more continue the our on pressures had we're that confident invest we can we're to seeing we're based to for deliver

as I'm power -- as forward. look have -- holding we Although, I'm targets still still holding to a update approach in is and go our business

everybody Thank Thank quarter you. performance. want So in third everybody I and forward XX look getting talking back days together their interest in to we'll for time their Bloom. and to about thank for

Thank conference for This concludes call. all today's joining. you

now Goodbye. may disconnect. You