Bloom Energy (BE) 3 Aug 232023 Q2 Earnings call transcript

Good evening, ladies and gentlemen. Thank you for attending Bloom Energy's Quarter Two 2023 Earnings Conference Call. My name is Anna, and I'll be the moderator for today's call. [Operator Instructions]

I will now pass the conference over to your host, Ed Vallejo, Vice President of Investor Relations. proceed. Please

furnished good second you call. Relations call the quarter this that call, reference and for joining To will SEC everybody. XXXX we with conference Energy's quarter our supplemental and to website. Bloom XXXX we it on afternoon Form you, release this have for Thank Investor us supplement earnings X-K Thank press second posted with along our throughout earnings information conference financial

statements in both your call, our conference prepared the make liquidity upon our remarks are These about Company's statements to this include position, results, During expectations, performance. our and estimates answers in our future strategy, and and questions, forward-looking products, and statements outlook future new assumptions. financial year events financial These may we expectations predictions markets, full that based business XXXX. represent regarding for

they and and discussed any However, in including made future assume statements statements to with the XX-K recently events, with our as to obligation no call. uncertainties We subject forward-looking on and SEC most known as filed deal in documents today's risks filed Forms are numerous XX-Q. our these revise detail unknown

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

And as our financial the the President will Greg well take call Joining of we Chief Chairman will K.R. with and of as quarter year. review after Greg today Financial outlook our remarks, Cameron, then and highlights our Chief me have to an the for Founder, K.R. overview Officer. the prepared Executive business, questions. time begin Officer; and will on Sridhar, the are operating and your

KR. I the will now over call turn to

Hello, for York Day. see we all many Investor person so And great Exchange really New for Stock at in joining was It the our appreciate this everyone. again, of today so us call. to you you

reduced At continuing our Bloom, sheet great we second are and make the We our strengthened revenues, our progress. grew in costs, to quarter. balance

trying the company We are not the energy dedicated But and can today. great future that we're also. for to as meet a ever, needs, build just

of headlines. on month it deadly the of at news electricity. are all me, month all of energy demand We reading the recorded just transformation, clear. for looking the And of in them, July. planet the we probably watching and on are exited history. the was electrification everything, the and And you are Like digital The heatwaves, climate messages extremely hottest raising

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the prices electric fail. insult century, we add steeply. to are And to grid it's outages. The just limit the And, it or the stretched not living here in and being run rising believe are has to really with injury, power to power threat this of constant

are of about and all note anxious. taking anxious they the spiking are energy becoming costs. this, are really becoming security leaders and Business energy They

about goals they're very getting that, and going And how concerned in to their it. meet they're to addition decarbonization

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have we solution this for you. And

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And control. to alternative heard, listen when we you want and want the what you, is an customers, we you

that that to that want make Because have want you the a record. solution contracts. us problem also lock capital say not tell a You big worried or doesn't investments, the up while flexibility. not Bloom, yourself about term switching do long at you're a reliability, You That's to you want you track in

if a not And you operating to location move. the the switch better years want to flexibility, years to that. you is to to continue now, now You want want five solution, you from five free be from able operating, you're want there's where where if to

customer for to very needs flexible, asking it's you're at or that's series the We same last new And option a concerns have by the proven brand offering words, week, it reliable time, a XX. and costs to and transact. doesn't hidden launching simple responded other these In hassles.

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and is customers the by six are by addressing how XX this salient how concerns points the of Series simple met XX the explain offering. the just me about Let needs Series And

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concern cost So checked.

worried to the about business days XX of the of your two, mismatch, time issues talked How's signing to contract. growing or power proceed? units supply about demand that you our within Number availability because power guarantee ship we from a

yes, There And are concern. is Number years, on offer XX five deal offer. heard me right, for baseload long-term three, contracts capital contract market upfront years, shortest check the with we breaker no our always you, in investments power. for investments. that right? And Series a the you Five

four, about operating Number the installing, you're or worried maintaining, energy servers.

by additional at for handled bloom all no It's you cost.

they the that become need and Number keep on a five, your anytime But meantime, it you gas little or to run hydrogen business biogas, on hydrogen it live. becomes want soon be can later, available. depending bit operating to you you available, and or in when could on until run where natural

we Yes, all meet yes yes, your goals. sustainability can and

things run can hydrogen later. can on run later, on run natural today. you on you you can today, all it until it You today, it can those come, biogas can But it run gas you run

mirror, provide utilities, not for coops them. from ask they customers love six, the utilities get Absolutely, their to solution can it yes. And company? Number municipalities with us? you solution would and the turn a to they power directly community And to really independently-owned in offering can We through partner And everybody both in hear makes a other we or is serve behind mirror can them. it from XX for the of win-win. front And the to customer. solution. Series In want easy this and words, the

then concerns Okay, addressed. all six

Now, do to take reflective we to be why minute our And that, use me let three But me able just another a points highlight to also innovative it's explain I let of and is to And products launch before offerings. similarly, you. this explain that significant. had. just very

prices. the energy that's use decarbonize. Number one, half is the energy rising generation. steam challenging This currently the most globally, most struggling generation. industrial for the is for of sector of about with economy And Yes, customers XX%, the steam to that they're all

heavily these to are devices, forth consumers up data And sometimes that all to large power. centers. our big of those centers just XX% transformation for operating back They where two, relies between that very centers needs network power digital Number and data of cooling that and on send traffic go. information goes information providing and our towards

can the So operate. computers

uses Number three, are than we electricity how conventionally, is all as hydrofluorocarbons, provided hundreds the air medium, do today. predominantly more as to harmful And by HFCs cooling refrigeration energy. of conditioning that and HFCs the COX the cooling or is. refrigeration a and That's environment and that times of air conditioning refrigerant, source

launched we see, we opportunity solution. the and days and an Bloom, At an heat ago, Two did look at to scenario enhanced we we power innovate. see combined what

is explain me to Let's this what you.

that operate servers us to high comes high the industry, at temperature provide to And secret operation Energy it the we the temperature. is to sauce When that enables Bloom in highest efficiencies customers. Our them. electricity electrical our provide the

-- thing, high heat. producing that are that operating Here's also servers operating temperature at they and another produce those electricity, when

Our energy industrial our for that high use enhanced and CHP as our heat you're customers and by temperature their it offering simply industrial can customer. widely for XX% taps said, used it's as into customers an if steam it heat, is The it of customers, steam about I generation. to process delivers a byproduct, needs

be can zero. for money a refrigeration HFCs. significant win and company, without get generator and that cooling, costs, their use steam used they their added for environment. incurring the The It or talked to hydrofluorocarbons the value that use. don't air win to we It's or fuel and another has because about streams absorption benefit emissions. are save this chillers it's conditioning they our They for any major customers operating lower additional a carbon These

We favorably them, to will very for with and react to customers. CHP, the it's these markets. and and application construction customers solution and to people thanks the global to how they impact from U.S. people providing as very IRA, well has had forward if has ITC the great and refining, I that industries, of to today new Europe processing global in attractive if customers, before industrial petroleum Pulp to offering. industrial this commence have. that as do HVAC of industrial It CHP partnering incentives now, you the product with Paper bill do look primary are to the Historically, business solutions XXXX. chemicals passed, This And January projects, expect metals they prevalent. food segment working U.S. benefits to

pause with two be with I'll examples. those here, questions. you back to answer I'll and

me to over Greg let For hand it Greg? now, Cameron.

Thanks KR.

product our second XX% nearly product versus with up XXX Let our last points. had few me are quarter record Over down XX% strong costs quarter XXX improving year, We total a performance. million, year. of margin our about highlights second begin last basis revenue

As planned, accelerate this margin. quarter, negatively we units, of our shipments which replacement to impacted service continue

Going forward, improve we expect service. quarterly in results to

We global a of us will enable are which grow balance strong XXX liquidity business. total in with position to million, our cash

are for We our reaffirming XXXX revenues profitability. framework and

as held our some just with I'll those additional comments brief me investor conference keep our my highlights, we With performance. let May. context as begin to in

heard solutions. the customers the need During that experts are Customers market affordable, products. recognizing about and you've investor conference, flexible they our need from for reliable,

fuel with on-site power bring flexible alternatives. carbon combined advantage heat to and ability Our competitive a and capture coupled quickly, versus provides power

looking the from focused sales XX solution meet as their needs complex, data five a projects their such needs a where available which is are of both Series We on year longer KR our utility. power described, requiring offering, until centers, scale designed customers shorter large as term And local is to for cycle. are

clearly are engaged electrolyzer advantages remain and we readiness. our large-scale by our value our recent manufacturing project with technology announced efficiency advancements wins. We commercial In international who offering, encouraged developers in

expect you our heard move on as investment these we deployment. announcements decisions, projects May, technology to in make As their through

half for past million first In in were Cash the when the acceptances. million quarter activities million down net inventories green executed meet convertible used quarter, to we XXX versus was to in we and a quarter second a total in XX significantly cash. operating with building ended second offering XXX bond the quarter second proceeds the

we half positive cash coming usage positioned the position are from flow cash execute We a well recapture growth With a on focus the expect over continued for liquidity to to generate year. much-improved costs, quarters to on opportunities. reducing first the our operations

in nearly margin benefited XX% from costs. reduction product product Our

down coupled lowering driving are on costs, efforts with Our and power output automation increased product costs. material

confident pleased reductions We we for very of two achieve XX% target double-digit cost quarters we cost our we that XXXX. are are achieved down and will

have downs pricing, unit XXXX. these With cost the with coupled second versus strong our improved economics quarter XX%

product strong margin from the Our second quarter gross XX.X% non-GAAP margin. benefited of

margin will gross margin would business, Excluding company the been our our improves have and we impact costs nearly if to us guidance. product decline, achieve our service giving that continue of confidence XXXX non-GAAP XX%, service

should actions in We're taking position swift service profitability. for long-term this that business

previously, discussed they're XXXX incorporated service but guidance. of these we've accelerate As costs, actions our will some into company

second reduce, and non-GAAP largest achieving and committed loss our margin expect normalize. be should payments service replacement grow, module XX% remain to gross financial improve to We costs XXXX. our performance quarter, a We as each service by quarter performance business revenues power

reaffirming revenue, and our guidance for flows. XXXX annual are We margins cash

backlog, achieve we margin. cash flow and we current we X.X X.X our positive At revenue margin our operations. and billion to from operating gross should Given confident annual targeted the annual year, revenue can this billion profile, remain margin of gross that deliver non-GAAP for XX% at a non-GAAP

improve to expect downs service performance. quarter to I acceptances, similar For the on of continued improving the our to quarter revenue second third planned growth margins on be slightly and cost and based XXXX, would

we summary, quarter. operational strong had In a

forward, a execute we and free future, zero product capitalized, our with solutions growth move all on enable well focus operating carbon roadmap. will net As are and we discipline Bloom of to compelling which have

are We future. our about excited

the open that, for up questions. line With please operator,

Instructions]. [Operator

Now Andrew line the Stanley. the Percoco Morgan first from comes from of question

a products driver start with is XXXX? I'm that time, the have year's a just revenue to or XX question in your up And P&L? when should XXXX a Series expecting to the drive where should think are and that we products, interesting we very XX-day we follow to around I'm that just upside for get of expectations, hit I trying wondering lead see this obviously market. more at could given

imagine Think of with are speak to initial come as as suggest should to we we the urgency mainly, with think XX, people And sales to you cycles transacting sense be customers right which of engagement. XX, driver that cycles pain, book it would a those start that year, but compared would customer an of I us, as where to again, will shorter now are going solving foreseeable and for can ship we very past the is you the talking immediate start a revenue in because unlike an long a it's reasons, sales long lead it in So the order, recognize right? cycle. same been that order an all to our

centers, Complex XX. here, both and So segment this opportunities, again, of different, sales with and of something wins we business, slightly customer expect the multiple big and quick us right? the think this Series out data as the for

us we grow it's want as we our But for as and wonderful our need we our portfolio. a needs a to to see And So line, this business, also portfolio. the a top for funnel customer. composed that able meet of as is

market. will yesterday, segment on time And you, it's on we to thing faster we assure there'll anybody fast that's I saying, else about And power than right? And going and can I be it'll here, the a can. big to we focus get something all react be can as as think one

the line from Julien of question America. of Bank Your comes next Dumoulin-Smith from

loading some Maybe know as as still actually it margin for just sounds word I it's your if we little XQ XQ, mean, prospective that as relative trajectory, performance have payments you using of kind with sort unpack just of the far the off service the of I half this first around year rolling and this like of any and then a you Julien books. cadence? sort sort the the comments Greg, SK on because well for being today. throw your reaching if into confidence Thanks. will, does as point that backup bit. to any, as there slightly well on comments have kind you to, guys you, about as But think curious QX, repowering. also relative in and in operating guys, are the a Alex the the positive here one you Vrabel of could shaping could on can to year margin Hey,

Yes, Alex, thanks.

the performance be to quarter well costs. our as we second both watermark expect as service, replacement our move full for costs as power do we module So payment, high for forward,

year, down half quarter, to that as year should we And move costs service move through to well better portfolio. the grow go revenues in we we each expect those we the second of through the course around that the as as of As loss. get

we gross on to out took it. XX% have service you XX, to get a of been kind back do ton work service for margin progress of If at completely definitely to right have if the made would that you we're where been we put that. quarter, it's zero-loss we But a business, to traditionally, some

look we third second XXXX at the we growth, the really quarter. you into around XQ. strong As move And specifically the a half, had revenue

So gets and versus them you likely list acceptances it when this quarter. experienced roll income and on we are last of up, a you a look similar well you year, growth as what we've quarter. for the gross at to that them you rate from the side, this we in at see as look improvement see quarter, an where both we In the side second margins margin operating to on

as the fourth Obviously, move we quarter, acceptance quarter. traditionally to our into had you largest that be

outsize quarter is our accretive our gross but largest generally our tend as to of And piece get generally an is. not always, you of within overall So margin the year P&L, the is most which portfolio. that part product generally,

quarter the margin to as year. non-GAAP move contributor we for forward the get a the see the XX% year, us So fourth I gross through a rest being of to total

very that versus last familiar prior year. think in especially as trajectory years, look I should So has it

And been margin is what's we've the OpEx, be number. to which begin compare you to through go stable revenue we're to about, is talking and should got what really is expect the the move we that you guide. for and be see adding income range that that is, percentages got gross out where the that we those that that margin an comes you've As income about which those process gross positive where operating OpEx just it still year, between operating you

we the half that's second at the out. of of today think as it shape year look So how we kind the plays

So thanks Alex.

the Your Gupta next question UBS. of comes line Manav of from

the tailwind matching, as us and Department to Thank would about final favorable temporary production of business? it Help thinking to what business. for a a credit. ruling consider would developing you're Favorable Treasury be electrolyzer be relates U.S. here how tax guidance outcome your is The for you. understand and your in HX additionality process you

that question. so is this for everybody you is it is Thank or much it's it is What green you the some you grid place. use Can time, question. a point debate in matching. produced produced later. to for that There long is put of take as from the it to in what as by Again, green So electricity, considered wind electricity? on when little policymaking solar called? at there the now a that's call of green or world, the matching it and electricity context understand temporal right lot shift in and the in bit temporal And it right going it's this

the give outcome any you terms will else. agnostic best efficiency. And about give are in hydrogen We to wonderful to hydrogen it it, thing you way compared Here's price, everybody the want. technology electrolyzer hydrogen of Bloom's production, Bloom; honestly we

happen science. is going can that. only space-for-space perspective, way it to is the COX environmental significantly. reduction time-for-time, Nobody matching an That is From deny

fine of get wants, a some the it than that's a what the If that's more also, they so But be we use that, best to technology can choose technologies happy we transition, there will too. the solution. if kind with other our as are leeway comply help So and great to government are outcome.

you your we agnostic So it. Thank for to question. are

Dendrinos the Capital of From RBC Chris Markets. line from

on CHP I system just follow up wanted to that announcement.

financial maybe commented of You quantify us customer there potential cost the benefits guess, help think a would then about from you carbon emissions. are. additional you what could see wrap some the and around savings customers numbers savings system kind biggest was Thanks. that kind what of there how that Can lower just, some or and for I

to this is our CHP. team. you, coverage Thank And you. question your welcome We welcome Chris KR, and on

electricity application. use an of me good will example, today a Let be center data data will example take to case center as a anywhere will a a in from which What they cooling will the XX% driven of this keep electrically do operate. able to XX% temperatures to they computers the that to remain that at drive to cooling a And what use the need system. be that's

of it They chillers. other electrical Now, that are driven are different they can yes, to able absorption can get that They using we heat, grid, are XX% which a cost use the savings technology. terms in is the case, at technology and the a additional amount to additional site, provide instead than of cooling if XX% using no not is tap footprint. same In additional that fuel. This getting chillers our called in using electricity the not and them kind right they cooling carbon energy technology use electricity. cost from to in absorption heat on it they systems, up be a from cooling of XX% reduction them, the for

Okay, so is Thank you. the advantage. that

next from Sam question Burwell Jefferies. from Your of line the comes

a the the Minnesota. plans and it wanted ago electrolyzers. to install announced guess plant gears XL that year over nuclear I switch units you to with back Prairie was Island to I about in at

or just timeline for orders unlock confirming catalyst whether So still is around I this accelerate like online late electrolyzer that that year drivers the be and and commercialization the biggest to process is really was installed the think whether you that.

project, Sam, it's Greg. particular that Yes,

as that particular really our in in is showcase still to And be to that timing with technology all project continue And project, on approvals. a that the it's going. nuclear getting we especially to it we that space. expect going of So track from good regulatory through that see

green or going is through wind RFID we new in, that electricity making their process. were they're source going and These together sure solar, electrolyzers how we they right? whether as little this the it? in well, They're going going have bit how and source on energy May, through a when process, of hydro, talked that pre-feed into bring Listen, or about are their They're large they're all to nuclear projects. they to existing new are sources that or of -- scale

and looking they're then And offering.

going that go to fertilizer? Or make together go transportation their existing that to pull a where's is and ammonia market? of work, so go? Is have going How to both to making does So all for the an can or ultimately going they to that that existing different sure they bookends that facility that project financeable.

We about there. are different going use heat sure, efficiency to part working with for excited of a technology, the our number of projects its through of benefit process. They're it, very as the ability

brought our almost we quickly these. in we did within out some that where online that California, that is here giving data and two the really we've strength us been up megawatts of for months very electrolyzer gathered And recent five and demonstration four, operating

and their year, as expectation through projects make they'll move as the our and technology Our year, reach choices and we these entered it's the expectation we FID, announcements. their been

on that been the of to be as course hear to the XX, shipments. But expectation project. some is move different where it. as it won't you we've impact financials And expect overall that begin be We to over our you going technology XX, XX until that you're should begin selected of really to to about part begin later projects see see XX you it and into

we into and the year. we that executing track on against we're as like the roadmap out we feel we're came So laid still

of Jordan from from Truist Levy line comes question the next Your Securities.

of just all Italy new appreciate you I Analyst markets international to Taiwan I [indiscernible], the just like give sort a any we're thoughts but and details. coming the on off wanted here, know lot markets get color and of Day, that thing. updated

update there's there momentum the on sales on Let's if just see pipeline. any

Thanks, Jordan.

line we your around But really international. ears here. is put around our progress we poor. our Your question the think was phone to And

we to a with that's at the back. Europe month a open to that's our megawatt it's thought, was up first of was just this able going like Italy for in and as excited question, we're to last last we were the so market really going as as thought or And U.K, saw one in land the whether partner, units were it's answer. Perenco And worked hopefully that able premier there, sure, technology time that right? with some had people or time announce a your just You Cefla landing we June that announced. we especially in deals could So because see in for that and that Ferrari. our Germany right year, we've year, though were it the us of to we've we EnBW Ferrari, been We that

So there was a Benelux deal announced. in that we

not So contract. we're that really got hardest, transaction within processes first getting is which building you we're excited broadly always relationship done about Getting and the our that And the only know. good first always we've transacting, a like feel Europe. we that with in of partnerships opportunities in with lot is as a building commercial relationship

the partners unit we you Ecoplant. strong had Korea as with about the saw real But then always think relationship SK that there. in shipped in announcements And Unimicron South Taiwan our have with Asia, we've you

market is that up power show customer of a can we to time market solution in to economics speed that be Singapore he'll open and the to near makes and our to process Tim's sales as KR, that at sense. in the over very both that here and part way our Taiwan and the our premier looking team on but of I'm fact, think In his going we're help through future we excited about Unimicron power,

there. integrating And very Unimicron Greg power producing proudly will add to our I systems Taiwan be to what be sales that out let side just me going said, but not the start will just to

just and customer up that new deploy the and end country needs. running so systems to our with And have customers in be of for deal year, what to to our a speaks picking happy us be get value. that really because should can deliver is which us customer ability to And now by a towards ease last to for the sign about their in Asia on able and focus the it and

Your of next the Oppenheimer. from from line question Rusch Colin comes

and the shape. happen economy The side? scope what understand involved of there's hydrogen you some are the in to want several next that to get the that opportunity sort here to costs a to folks be sense can going folks that terms starting the years. maturing you managing to more of prospects start seeing scale suppliers What supplier I take those out are here. how of drive guys here on of And of get for over and and want suspect

I not in Colin, parts. One question individual for as same be chain. it's couple our know, of ways, it's go it exactly exactly exactly supply you but we about of couple how me just is that supply chain think it, let you're the product, about through the So think asking Yes our may

So over all think same leveraging versus supply we changed. how we've so cells executed same about build electrolyzers, fuel time, -- those we that vendors, with chain partners, we've hasn't that as we're partnered same that

with, If comes going folks to made to I our customers be work have be we plants the really that couple side input much hydrogen, get processes, a the stated to be plant EPCs whether electrolyzer broader into that as are boilers to have want issued very built we've the going compressing out some other and think taken and and that. to the you electrolyzers we and on Meaning into sell that to things and or is in pulled of able we forming, relationships the one process. want the our out, the around and that think projects, about And relationships the into together steam that that get they own are and to electricity goal inverters we supplier individual don't we're they this, it when our systems, and -- things, and about that orders purchase get and balance bring found space. the good create it's be parts. over the around will as other drying Those they done

over as development So I think we you'll see forward. some that go

and to their look overall hydrogen, a like of products they users hydrogen bring create use our players how nature want of it we're part before they building on into technology part our either their of want as relationships And with really right site. traditional space And clean then been perhaps supply or from standpoint, can provider that sell of it hydrogen of as good they a to and some it distributed solution process. and right that, the hydro, the that to

steel, links in think that very I where think think process glass, our. you've well a got with thermo ammonia,

chain that evolving, be are processes, So going we focus point, moving we've relationships on to forward. it's But of can and partnerships a out we're that an that to the value-add that's excited manufacturing lot really built already economy supply formed. and your

you different add of oxide Colin everything So to fuel. one in you more the think if electrolyzer the to Greg that is, today have if various right, our solid that of thing think said, we offerings

supply fuel take chain that even buy XX% about maybe okay? our and and is So our it of electrolyzers entire common cells and assume between larger,

be, it's company we XX% dollar grow. that that For want us the all to to to of from that, that the $XX needs to billion grow billion

the that to to components. X adding to billion growing is us started get and also, us beauty billion, but with chain we order more along geographies more million robust than people grow are with to build were with we a in the supply in all in are bring the way, to and XX these they less us XXX to want revenue when So people

said, outside electrical as able the an in whether it. we to partnering we like will counting all on Everything be a system systems there with is been are a time example, compressor, are do or partners the be industry and for to who in rectification. it the players have Greg or in best long These hydrogen this for are business

from comes Piper from Sandler. Harrison Kashy question next Your

thank you question. taking my for afternoon Good and

And does the proportion So could CPUs help then, the more business, think quantify it you Thank you can it your whether your is if [rack] Is for impact how to this potentially implications think then, energy today you. accelerated incremental? or recently. [ph] demand that from your transformational help business looks of through us conversion, GPUs, to what the opportunity? us like And datacenter rate? growth just backlog tied that's that to or you conversion that's

questions. very All good

keep number let lag. system, our that, to with simply questions address business you all you the keep adopted, center up But the number nature when about customers modules of parts So one. the you're Bloom love about that's the data quickly to your need qualitatively With of moved the adding the modular see gets application systems as because one. changes quickly our Think ChatGPT that, and more what as systems, is where fast power, me our infrastructure power infrastructure going how of how part versus right? business of where

power a how every places in slightly just our smaller keeps even look And two footprint, density years. have that going up at

you get So in of able amount power. space same that more the you're and have, more to

for not to don't a up We tower, the more they floor you power, a level which if is require So you problem can solution GPUs, go scale. as customers Bloom. And as it a single space. our rack wherever helps and necessary, they offer even have a this

have. platform what a So to spaces more adaptable that first white a they power us. get need they the and stay be within lot from already spaces, within power question. they find address couldn't They That's able more their can the to

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So power AI we engine revolution. suited that power to are the the best is

comes of Michael Wells Your the Fargo. from from next Blum line question

want Series a XX, the to better. little contract a go dynamics on announcement understand I interesting to really that. just to Wanted back

the flat electricity think perspective fuel? And we Blooms' capital you're if over under you contracts? if that price Thanks. rate, about return just So the procuring offering feedstock these margin and deployed pricing, do contract? And is so, how do mitigate risk then, Bloom term from responsible how and of for

Yes.

Michael, So Greg. it's

responsible So for offering, the similar XX fuel. the to customer be our offering existing Series PPA the will

position where be it priced if the customer higher we're it slightly is So Bloom to fuel to selling be an we've to a upon customer and going is the based going customer buying of commodity depending have where a cost could there not that and that be risk, resides, delivery gas. more price they of delivered gas, average natural on that the U.S. taking

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that's delivery at megawatts. always that The XX be you interesting, think really about it, other as to thing the we've constructed

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The from from question Ameet Thakkar Capital BMO next the line comes of Markets.

your It year. a much downs I output the you're kind like if sense of last XXXX or roughly was kind and like looks power megawatts last wondering that give could base just quarter installed kind in are megawatts, over like producing of you for of kind how just XXXX, us of

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you output system. megawatt XX hours get to of get what promised it's the operation us is a And past, our have would what you're a hours going you hour output. And a is or you our a if look and will say, X be XX%, in what called total we megawatt it's we total say customer of let will if maximum every is at contracts, megawatt that have number if X megawatt maximum XXX hours of

difference. telling significant entire years flat megawatts the a them Series time. them, to However, all the XX, with XX five we are we will give That's the

question comes Johnson Your Malloy line Martin Rice. of next from from the

on developing that maybe out offering you server Could And tax that a have capture comments the an about comment the customer any such the spreads interest you progress offers given central in there? COX capability? are in

Sure.

what everything happens, XX% significant. can costs high of after benefit lowering for as the cost you ton system, that look, COX, credit, of $XX, the X every that net concentration That's So they and sequestration and a of be if hours customer between are. sequestrate. what their terms XX% in depending somewhere of three three right? The on cost with very megawatt capture megawatts, here's our about we can we done Every roughly, produce a

right, only you baseload available clean at at XX% So that's the XX% table. power the do ubiquitous we of bring value proposition fuel not zero carbon, what today get lower to get that's you but it to most cost, the from

to the big the but sequence that dioxide. to So have obvious this oil and have ability the the that also gas, carbon interest are people gas have customers significant

the for has interest. in there. the increased to applied that well XXq able of number to for and sequestrate be permits significantly the IRA country Now, the the from The places are have

to megawatts and opportunity. as these soon very when hundreds it large they're of talking is be adoption do able of will scale, that As are wells and you're permitted, about

that resilient, to this. do and let So use power like are couple plants tell using things a water, are me. are reliable, really you, That and carbon hundreds of local clean, Lego excites me, me blocks megawatts, zero we able right? of something me One our do to no pollution, excited, is, not that there take get air small

at in in data cycles power growth what's These are the complex interest and coming to for to side, at like at the reliability we customers, megawatt very looking are things of that that and three centers like for of that serious that segment approaching the at or and excited us because and Bloom looking last power stuff to makes feel need it sales tell to and secured. in another ChatGPT, these were asked GPUs, about three and And the come. number you being very time very center asking people discussions, the and wanting from be about that. about is me least solutions. one data high, that XXX different side business. the them there's what's I'll which of But mismatch, AI just supply we Similarly, weeks, demand had at for

from of Morningstar. comes the Your from next question line Brett Castelli

new want CHP. those your you. see the What order to just I history? the size XX, terms of for the average Thank relative so Series in to products, ask to you maybe on do expect and

building up is XX, very be works we well, block. from it'd at Series So a there, offered scale megawatts, it can XX it it

slightly but above. either traditional So XX larger sale, for at works or that the product adjust overall it well been can slightly a what we customer down our really than we've megawatt, slightly

to that in expect that those would work see course, of I to make multiples of So them. to solution make XX, for

guess that slightly be be CHP, On my larger. would would

creation the the chillers. happen of would integration the through industrial that of or amount given through either steam, Just

average order on definitely, of to continue scale So up move size. our the we and size

we we have KR don't why after take Operator one more and we'll then last answer that question. close question

Sure.

from of Sandler. line Kashy question last comes Harrison Your from the Piper

does up advanced when revenue just XXXX Thank I businesses? Hey, to the to begin opportunity CHP just on just impact dollar then, a about follow think on XXXX to us Can solution solution. market this help you that that? annual meaningful And want trying to quantify your financial XXXX, Is CHP basis? the have a story, you.

measure tell would them used creation I TAMs for being that about that the most in of you we K.R. Kashy, have you energy the similar I around the to of industrial here, it's trillions, talked steam. half think

some in So the and in to that naturally other the term. there's no quite limitation have you near that going And for the size things near fact, retirements of are that here happen here in attractive market market. make future that

or XX go My year next the XX, through shipments expectation you'll is to the on we over the that. see likely begin two process, as

we So excited We're getting we're by in it. response. were on the pleased really that market And really application. that product about

So over to I'll for was closing last our K.R., that comments. it turn you question.

you, Thank Greg.

the And you putting solutions. their continuity, during And becoming second very at for is it joining thing should quarter, So customers, are Greg costs boardroom risk. thank and have protecting are year. businesses, our and employees looking through It bring really their having our their that our for as heard But business the to their customers are issue. neighborhoods you be is reaffirming performance not are continuing really clear about is a revenues, with all alternatives first pleased guidance we today. we we the for thing the as said, highlight, grow us our down is

those partner we transition, CHP, we Bloom be nimble, thanks and we platform and take are with great and And destination you've to you forward on go will through have And focused flexible grow. two the able develops, innovate and as to just will as with we we reasons, for strategic as continue the they that energy a be utilities bring for that to we them solution. enhanced quarter, go security. Energy to serving adapt, be to XX seen innovations, believe server, what to amazingly this we long-term that look they Thank announced, at the that but last them them are look, and as a only So companies Series to the will we market we to come to not attending. the partner all the

call. This concludes today's conference

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