Bloom Energy (BE) 8 Nov 232023 Q3 Earnings call transcript

Good evening, ladies and gentlemen. Thank you for attending Bloom Energy's Q3 2023 Earnings Conference Call. My name is Adam, and I'll be your moderator for today's call. [Operator Instructions] I will now pass the conference over to your host, Ed Vallejo, Vice President of Investor Relations. Please proceed.

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

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

our estimates based statements predictions These and expectations, are upon assumptions.

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

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

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

everyone, Hello, and thanks joining today. us for

our the remain heads level. down growing world. high on at execute to business continuing a and around the and U.S. are in on innovating and performing focused We We

We to selling our price customers, costs. do to margins. expand We discipline increase our continue revenue by growth value and operating maintaining this and reducing and

we fact, quarters In in row, do. cost said have as we a lowered we X just would

success. We and The working point report of strong is we profitable. are can today new achieving a our numbers levels business model be that proof is

capitalized and and the to are our We innovating business. handle continue cyclical well nature of lumpy

EVs, steep this drivers electric sluggish temperatures, strong power demand. sustained. continues in and growth, have industries high The antiquated rise with to electricity to spike. demand rapid of adoption demand reshoring keep Record center both grid up AI been be The all of electrification, and of unable and is data

suited projects of products A from in greenfield of XXXX interconnection point, both these the and in requesting Lab case only behind capacity front gigawatts the reached in Energy's of Bloom Energy are uniquely year to end times a operations Report. architecture by to delayed U.S. commercial of Department according and to XXXX are meter. the of and XX XX% XXXX for

we grid our and without mode offer customers necessary, in Where quick, power. and an operate interconnection clean can reliable islanded

meet The that both fortifies electrical and that power clean the demand X.X Pennsylvania installed significant As helps an be Coherent grid. for growth. revenue servers to allowing from example, factory's Bloom critical load site we megawatts infrastructure provide independently customer servers and Bloom at to Coherent’s factory, and of the supplied reliable

that for power our tailwinds the is and reliability of some and business. sustained demand clean While for rates there rising need and the definite will question issue interest headwinds, and conflicts create availability global create no for

XXx AI overstated. impact of the cannot center adoption be our potential powered expanding search will of per AI AI Xx pipeline, our our across and all of at a sales GPU is take on CPU to data use in the compared growing more Looking segments search market. products to business to search rapidly the of of the power on society. clearly a inquiry has a AI the our regular

This demand over increase energy exponentially centers next in decade. will data the

Bloom If compute you providers, sector in demand in companies projections from timely resilience power to one from of case the cloud of the is accelerating primary look availability power chip at expanding service the for and grid imbalance growth and the future the for availability. the

Singapore and In oxide For printed a our fuel a first example, the contract substrate circuit Corporation, recently. Unimicron customer chip installed first we signed we powered phase with maker. our in board cell Taiwan Taiwan, customer of solid and first in Technology XX-megawatt

servers power than contract went solve less months, shows X move how to which we energy on Our quickly power problems. from in to availability can

land Energy servers servers helped our will high-performance a SK developer of our of for data a us deal illustrative with as our This of strength exciting first deploy Bloom is success data GDS, with centers. as That Working is ecoplant, solution we centers. our the in it leading Singapore. partner,

XX-plus In power Singapore based percent addition, is natural gas today. a of is market where

start we natural are our will While with future-proofed. gas, systems

regional for We can customers regulatory model frameworks it is demonstrates those to for and think established the projects, competitive capture of platform. flexible or future options. to this infrastructure, a cleaner to clean supply carbon our chain fuel Our ammonia hydrogen, advantage are the switch once and

on just me Let moment a hydrogen. spend

to long many have benefits, our hydrogen produce power particularly as and on cells operate of its technology to the given hydrogen. as provide platform been flexibility to fuel focused We or electrolyzers

launch a Energy clean nationwide ago, hydrogen the the know, investment weeks to you announced X across just of hubs country. many designed billion regional $X a few of Department As

operational the fully were giga our and the deliver X winning able California efficiency no is to industry X offer as electrolyzer hydrogen in Bloom of Bloom Energy electrical factories them the both today included This come in electrolyzers unique hubs. should products in scale highest Energy Fremont, in Delaware. surprise. being at Newark, from and

market, what about huge pleased a the world for means is but be for It the clearly are and wins we days future. Bloom our what it and in early will

solutions power back AI, for by all Bloom data cost driven discipline demand deep excited and growing relentless centers with close, commitment make Energy's a flexibility, future. I'll efficiency, fuel to you to be us on and focus So questions. about and innovation to a answer

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

Thanks, KR.

the of begin last a our third revenue versus few with million, me Let record XX% highlights in strong execution year. about had quarter quarter. up a We $XXX third

improved. margins Our

were our up XX%, margins XXX quarter XX%, versus points gross Third non-GAAP margins year. year-to-date roughly bringing prior to basis

down operating Product versus quarter. XX% on XX% execute reductions. are last expenses down the first approximately from to are costs continue cost We and year, our

of prior Our quarterly $XXX the continue. the service improved to expect and total versus this We a ended margins we cash service balance quarter, trend with million. roughly quarter in

We XXXX and margins framework our for are profitability. reaffirming revenues,

With highlights, me some context those as let our performance. provide additional to

value flexible As our additional reliable customers recognize the solutions. the of and affordable, electricity grows, power for need

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

from where project focused large-scale longer centers, a as remain cycles data until the is We available are shorter-term energy on power as solutions both well sales projects, customer local utility. dynamics need the projects as where requiring complex, such the

our been sponsors, several These you hubs. efficiency our and selected has electrolyzer hydrogen heard large-scale readiness. project many As advantage KR, like clearly project for from manufacturing value developers

investment our announcements their deployments. projects we move make technology decisions, these through expect on As to

its incentives, of has This in months. no very of our on we Historically, pipeline orders such own is permitting, couple converting interconnection year cetera. the different complexity, et next most close are IRA opportunity Each commercial challenges, as bookings fourth the to focused timing, as our quarter. over unique

challenges look our our delivering earnings robust in forward is future to sharing to these results sales our added backlog have We year-end sales cycle grow a in our to Although revenues. our times, call committed February. team to

XX.X quarter, past convertible redeemable equity. SK common This to ecoplant converted preferred shares million

and are grateful to We excited partnership. are trust for continue our their

we conversion, million in liabilities $XXX interest charge this of and part a noncash million. of recorded As $XX eliminated

had When investment to first or SK they convert RCPS the by third option quarter. the of their the to debt end either made equity the the ecoplant quarter, in

as we equity, the commitment the our expensing established non-GAAP This to in are to reporting. removed loan quarter pro adjustment interest have they being asset a As expense. expense is elected first forma

margins we repowerings. of on paid consolidated positively impacted were points quarter driven increase the financial X. non-GAAP off PPA margins a was maintaining TPA repowering so, versus XXXX. margin and million third The X And Our and repowering similar the the We to acceptances our third XXXX XX.X while of pricing reducing gross PPA costs $XXX XX% executed sale enhanced price improved quarter doing by by unit simplified reporting. by PPA The current debt, of nonrecourse of Both entity. costs. is the previously

operating consolidated segment, entity. As through recorded our This $XXX forma part expense non-GAAP a as of expenses were other from charges PPA electricity we removed that million pro our was our and of last remaining adjustment reporting. transaction, this

I want from to on project minute the financing. rising interest rates spend on a impact securing

have rates increased of have our period, maintain project obtained financing investor allowing increased. X have us expectations capital attractive the product years, at we over As to cost past Over this also margins. rates,

offset improving cycle, an the much in Early credit of profile. Energy we Bloom through the pressure

months, we've benefits ITC and rates domestic energy to continued to for been have offset XX rise, as benchmark through Over additional content. the pressure last communities able

extension competitively cost will pressure bidding product as to financings costs, continues maintaining forward, a through of post possible pricing additional reducing of ITC endeavor XXXX. benefits the Going to offset increase, discipline and new we alternatives

from reductions, Our automation we will position benefited product Lower costs as for costs. costs, we power reduction a cost XX% down ourselves product we coupled of this down and strong Every XXXX cost material are are XX% target product with quarter XXXX. and margin achieved confident our increased double-digit year, we product nearly have achieve driving in year-over-year. output

we are in we capacity. headcount Fremont Consolidating and manufacturing Fremont In the Sunnyvale our fourth the our California state-of-the-art our facility. expenses legacy maintain activities quarter, our as stack will consolidating into reduce

revenues and As to gross remain service service continue quarter replacement by versus reduce. business the to grow, we We module second non-GAAP expect quarter, to improved expected, as achieving them payments our power costs results XXXX. and improve committed reduce a our margin third performance and XX%

quarter, and few In to have third executed restructurings fourth targeted a reduce costs. the we

are million our will in forma was roughly to commercial have pro impacting We delivering an reduced capabilities. in non-GAAP restructuring our These be with or fourth adjustments quarter. reducing invest our to actions competencies continue headcount additional can reporting. targeted quarter as recorded be charge committed technical A without in we third $X growth We million to operating the recorded resulted profitable the about our in $X areas to that of be XX%. Both future.

profile, margin reaffirming anticipated revenue a annual of margin. we at margin should are annual on deliver guidance XXXX gross operating margins our we fourth to targeted $X.X and for our At profitability. and Based expect quarter the non-GAAP year. billion to acceptances, $X.X this revenue for non-GAAP We gross achieve positive revenue, billion XX%

As is our we've previously positioned this discussed, year, performance are Bloom becoming profitable year-to-date. given and committed well we to

longer expect be I the full year. CFOA positive for to no

holding are elevated to our power announced inventory our additional We that time previously levels. capital working proposition support value to

that with ensuring and continue growth, our will in to we We capital, are investments balancing working be diligent profitability liquidity.

we quarter. had summary, operational a In strong

we We're carbon future. product we we our operating and compelling with that, and a With forward, solutions As move were please X line for future. have excited open for the questions. about discipline operator, focus, net

Your Stanley. Percoco question of Morgan line first [Operator comes the with Instructions] from Andrew

want to Korea. just with I South start

impacting to ability an SK. is Korea? few other those to timing Can they delayed, months. to purchases are the the with do have backfill projects you fuel they of for if maybe last recently you process over outside orders switched And cell South deliveries of just how think discuss I this auction

over of and they the SK, we're Listen, equity Thanks Andrew, a with in of really for this and the conversion I've year for spent confidence quarter. very they lot course that us in showed question. time the Korea opportunity. us, huge as a appreciative on about it's Greg. market this excited more partner executed the

-- right hydrogen one up bidding now. your was It lined the as the in with though, the then CHPS a we've bidding to know summer that opportunities But looks year, going standard, the and understanding would X weeks tell now currently as to to conclusion And really processes. There in bidding. and that and we'll partner, To seen, value I continue we're about between next be there's the one through on alignment teams we're clean in and tight there. been have few you, with standards we've going add this portfolio X how on that process really more the and win excited point, there's our with market. come in

the as the term long term about as space encouraged that really we're So in near in well Korea.

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

deals year? just what much you some could data the on 'XX your ‘XX think on I year where about think, And you there? those in that frankly, I Just little or And mean like competition? terms first the center or these in about CFOA. an that's or Amazon, or front, what's more nugget whether you mean, other included just buildup or derived on then build end center clue And Amazon elaborate of this in just on inventory? what Ireland seeing off, of what next of the some the what be of overall you is elaborate opportunities? to going as How little these working there, bit staying a can capital guidance bit can really related, backlog from I on in do are seeing is data is, you stand activity with what's a interesting you

I'll KR Thanks, over data on Greg, then the Julien. it's it and centers. Yes. and pass start, I'll specifically to

working see our you the to the so On for a really time for the on this as we customers capital, call need year. it, million inventories power. were reduce $XXX We built prepared far we've up, increase cycle inventory

So that's impacting our negatively what's CFOA.

EBITDA I'd point is this so EBITDA, adjusted you to year. far positive

commercial power a seeing operations. to we investment purposely an to knowing of that's in confidence and And can the through a coming that customers It's in quickly. a of our So it respond what we're lot more to have issue. that pipeline that made wasn't order make given we time in our that is sure continue cash burn

they And yet quickly for to to and not very permitting else. we do everything items in. wait through still need cleared, come and want lead once long that that's get they But power, want to

need built our into some those convert our very we up. around inventory to confidence of then orders to based prudent converting in reason purposely we've that we'll quickly. capital. and And inventories working up very were that are that on pipeline the our deliveries So that And that's

to year. of going and no look I not said, us our the rest as to I put the meet the But year, the spot target, down there in able inventory through make below CFOA to is and reason need going levels drive for a where that's it we're be to sat for back KR us next level to

way for So it let and data those I'll up company talk to to the we the respond purposely help thought about KR customers. kept centers. prudent was as a

how Julien, data post-chatGPT, ChatGPT. chips those greater so chips, in GPU need the significantly will searches prior look, the data the average to be chip. centers where AI was red right? hot CPU the describe of to are going I of don't power-hungry to those centers The even compared know on color

that use all a not embrace from it. is whether CPU to right AI that's data know of So that's the beginning existing What it's converting to we society or center an GPU because now. to new needed almost center do society data part is of going

significantly shortage is that to getting power existed only greater. of The GPT prior

or you're parts I Ireland. centers whether same Jose story country supplying Taiwan, it's San Santa X data in power I That makers seeing ecosystem and severe XX% in needs the centers, whether whether the That those They area, the or in themselves in was for whether places. these plays story, are. the was these Virginia centers semiconductor industry it's the between data So exists XX%, shortage what have in X over in both Clara the it's in story. the Singapore, of chip roughly again Singapore, of the it's the exactly

opportunity as and along, do, industry with is Bloom switch they reliable we reliable to a modular long ability cleaner center to power. a So the period that's sustained a of infrastructure, time presence going be our think grow its you as fuel to nature this in established pay come as modular of of already data what for we a the real that provider

it's forward. largest think we together, deals. to complex are big phenomenal us together, time it that for come but single all take is opportunity put You inquiry. They These our a going

with line of question Dendrinos Your from Chris Capital the RBC Markets. next comes

anything that an there we hear guess, Is to a wanted months The the maybe could couple still and leave a say back Nujio’qonik. conversation I right the EIS bit program the announcement now? I'll to more like topic for to little of waiting hydrogen to project, the there. submitted when on response It I award, looks a demand the shift there. And here. on of Bloom. it was

to customers it, So to it. our not them it habit it's normally talk extent speak that. do But until partners is speaks we that our or deal about the a finalized, let about our about

not you we confirm that than other color more in very I'm engaged any that. project So are to going give can I

continuing the news billion been the And X $X terms story, And how have and we then really can efficient to have a we we and invest at we the be hydrogen world's big because think hubs. in see in the invested, big in we hydrogen hubs of that and opportunity. huge we hydrogen deployed is larger are I the believe selected have electrolyzer of most as way in this scale,

Your of Baird. comes Ben the Kallo next from question with line

just into to Just your on over How thoughts this way just can but on get quantify any that. I think the think impact we on margin there? the about was wanted movement QX? there to any impacts seamless, probably I do retailers, you And on Fremont. is then

it's Ben, Greg.

it smoothly. on Fremont, So is going very

and Sunnyvale on expect and to quarter have seamlessly. moving it's this over moving tooling where or quarter. out impact are to not Fremont, we to, needs next any We've what get capacity and So we've of our it to we moved needed do quite prebuilt

to those offline for short a a it. know, and of going tooling drive are that facilities apart quick time period isn't As impact you X bringing

was versus together. consolidated lease in we'll a have on indirect efficient that excited a Sunnyvale and more and and That we're place just that. inventory everything have all together in pay rent to So and anyways, ending X much on force labor get

we're really about So excited it.

the we X. On X year did the repowering, and to that similar very PPA last repowering with XA is the

the purposes structure then standpoint, delivered through bought investor you those remember, quarter. within then units VIEs we bought a to that a investor from of about VIEs spent financial those So how and lot back a financial in went and we that we talking a time us again from sold

I'm going queue. particular Ben, to of The it, point numbers to the you

job of it. I out did of components team the think an the individual breaking amazing

look XX. each So steps of financial Pages there, should able to revenue XX numbers those through apart was on what the the you the describe from what They of associated are. each and be transactions. And with pull

Next Manav question the line comes with of UBS. from Gupta

XX a Good on My the you give Can and hydrogen here the of on not you towards is top those solution and question Congrats end last offerings. a company, about some new talked solutions. X an see to us Phase very power and heat go quarter. the guidance. strong combined cut guidance that quarter, update

thank you. Manav,

first to CDN X-year really is customers. question judgment. believe offering that X-year and is going XX problem XX. grid a And for Phase one We the a Phase about solution, to what want want them give pass solved many years. get in on our And people We interesting X is don't Look, solution. that's who fantastic just it's that commitment a of so opportunities are we opportunity the is that to

And do that believe who There who people obviously, cycles, like at a certain in funnel category works said. size very are we lot that, long in So a are early these movement for and that an scale. I it's well. that, is but of that opportunity

area wouldn't would interest they month So dollars time. we of These anything but millions in close and take are like a of to, expect seeing tens or to deals, X. we we are that in expect

results year, to expect would out we coming of next projection. that was and So that see our

track. on that's So

second question Your CHP. on

and center. just to electricity, think a extremely the lot centers the data AI is it's these inside more the load what? cooling for put chips steam I consume heat enormously important. and data data process out lot and I because CHP you a centers not AI of up talked industry. centers. The only goes proportionally the just about not guess data the The heat

the So go. the happen, has more of and cooling than is where XX% to that electricity that's to of going data center

driven absorption excess is heat Here data and vapor a heat system. absorption When powers the the a putting use provide that chilling. absorption to system, news. this are Unlike the create additional net we And can that heat is system, center, they're that's it fuel. good that is we with cooling Bloom called for vapor cooling able cooling X because cooling and them no

particular interest tremendous seeing industry from data are on center the offering. this We

comes Alani Dusan question next line from of ] with the Your [ Jefferies.

Just Prairie one the of quick Any kind on updates test. question there? Island

early the in XL with stages still our customer. is It

months this don't in so have no, but as now going. we of next something And anything as gets expect the few

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

if done you're you and of the can remind to kind just talk what sort on OpEx and at cost on be remains us downs that? of Maybe to the and where restructuring

It's Yes. Greg.

in to So we together, actions have our consolidated we as teams the on those being this still over OpEx dollars actions both where side, and process the couple different a facilities quarter, And weeks the the that had here years been that's over few make areas. that we took small all completed. targeted in went last third the growth those this through targeted then quarter we the and of manufacturing fourth the and prioritize took the given investments quarter, sure last very that some we

the getting in well make team to year we really cost we actions that right profitability. us. and it sure positions down is which all your the now, towards really comfortable on had plans we're that continue about the completed drive to be as basis, year-over-year excited very on we've now, highest a return dollars. right the of We'll with of But As we're we've front that always investment next we've into have taken think and us that

have This line the Colin from with Oppenheimer comes to of Your dropped. & next appears Company. line question Rusch

of line Cowen. Jeff Osborne the with from comes TD question next Your

questions we just was can V. my if side. of couple PPA address the on wondering I A

million revenue $XXX I think about was it in the quarter. in

have I guess going was what And in so right Oregon be I'm QX? you the site it’s direction. Amazon thinking just online would Originally, do curious, up, I the those visibility happen, coming into PDX-XXX as South are Oregon would to here half with in be as in like and well doesn't Korea going it late the look side. in the of second either ramping

So I'm just just give be curious, QX. visibility us That you some can for would helpful.

the internationally, a to what we and path we time months. gave Based when year. of U.S., the sites well quarter when and gave at get to came everything to with we had us I guidance in we the next guidance given stay did would doesn't that see making lift of have on accept for really the change. went So over accepted, we on at based be the and I a and Korea acceptances call looked a the the say this X looked off and you months that of planned we ago quarter, we in we anticipate here which that's year we year, we in still expected get we was this the we've it over how we'd nice the course but -- third a that and thought of I sure couple It list the few kind where in closed consistent. even of consistent soft the here got to

of Oppenheimer back Rusch with have & the line Company you And Colin again.

these pricing given there. some happened delays, talk talking the what we're of increases for potential seeing of the seeing that what interconnection about locations. level and sure in power of about with demand you the some utilities of Can remote at you're not the rate we're terms that I'm

I'll Listen, been are several give quarters, KR. other versus pricing right, increases a slightly flat they with how increase but what even start grid look versus some if increasing places the I'll up prices over ITC, in on IRRs certain we've only to and ourselves the by at and positioning report things you past the decreasing. on not driven we our financier, from and basis, to then in in Yes, pricing is That's it able where market. to see the an

to X that our And pricing of we've -- on that's that we're contributed the that able in quarters the years. over holding So margin been we've couple a expansion to hold far, and each last last so of lot power had. to

to would continue. I we best will opportunity our based in forward, units can trend we on say prioritize Going for that where get in continue markets only And the margins. growth

So we're make we think discipline are. these at standpoint how you to as executing the at KR, a even from lot we of pricings levels do continue about grow strategic a stay you to we sure it?

strategic Yes, going are big from a volume. is scale Or think then in pricing since as back be, used to IPO. The discipline? we to us pricing point, to question Colin, significantly I you've with been going to have up we have shrink pretty

mismatch, price is, going just discipline. the not supply/demand the look of us the utility, for look we is there electricity no it you to If up at if just way have pricing at reason

are At instantaneous not commodity. same an time, we the

XX to time. long years, for We are going who are building customers with a solid these relationships years over C&I be us XX with

we how we way that them, for So such in a this us and price from fairly exercise we our market a is – it. pricing for clearly think perspective. it about That's

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

I to a back the minute. hydrogen hubs want to just for go

would better sense the that way to start get just then opportunity to you the would start see P&L? to size and a shipments hit of Just the any where time actually line you want can

and the addition X far announcement, participating in come out is hydrogen of of actually DOE right? So to won What are. we rules the going out figure like very come the doing the is big a the hubs in this What hubs out are to offtakers and their be things were of X that the what that's so electricity that out the part needs where that to these is who has for PTC DOE selection. developers because to

to the in Then Most DOE it getting should would on. frame and projects running principals it's to it's tell talk who today, see these with people to when time needs these we negotiating where ‘XX, ‘XX hubs, are selecting is we us the going and about go. the when are

on So the think this about. revenue, we impact time frame of that's our the

important criteria huge be are and in made and U.S., winners the very out case selecting in DOE Europe, a but in a there's in But rigorous sends very market signal, these not for Australia, winners just products. to a process where going people here. the The about thinking Asia, these these through

affirmative market huge we a So signal signal think as market and an opportunity for this of Bloom.

on I revenue ‘XX. view much 'XX. I'd think move always KR. as thought expect intact. our just add We that, remains We electrolyzer into we material Michael, to didn't

period of guidance XX-year scale years going at electrolyzer time This You'll shipments market the to begin we is revenue. double that's cell have we look develop. some quickly. market entered to still confidence grew will consistent impact It's the this that how put to going over to and different out quickly, we that way to ago. X very market scale the to with expect We digits. fuel a very very going this consistent And is see

why to a and whether technology. And if saying adoption together policy incentives it you coming to normal should ramp the federal pretty once local, the going Greg be you that's policies, off those it's or state, and of a expect catalyst, a the look the huge reason takes at global, offtake new is steep not is be all

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

come pointed the the out restructuring. area to guess, on to wanted of I I back the, you PPA side XX-Q Greg, just the

wanted while, guidance always talked for year? was of question, just but that it clarify about kind I in the guys know First you your for to that. have a embedded I

Yes.

of was out, if it I revenue COGS million. of then $XXX the million so like XX%. closer -- based is back of the all around Is both it that on on the then XX. $XXX kind impact If like and to disclosure right? And talking margin looks I'm gross like Okay. I again, that Page

non-GAAP the impairment would third we a removed adjustments. completed number COGS the the pulling be that No, quarter. forma the To take for XX that $XXX COGS pro you're both we has the the million because to number number, margin -- has in for sold get megawatts the then

way what was basis, the look the on So kilowatt an do cost that the the supplemental it you margin best these. and at get on and go to will per average is to to

is that's get best why But a times So a for way them margin pretty few margin, have liked calculation these to and which we've this. over. a the healthy to done

of next Northland Markets. question comes Capital Abhishek line from Your the Sinha with

I the nuclear just power for wanted to electrolyzers Korea an on updates plant. that? the in on Any get update

our we a very on on of Not proceeding that deploy than on make but X that U.S. expect they'll that in in nuclear lot got be -- working power Korea. quickly. next with going some XX we're There here months, side. scale, are work they'll the to pilots, we're at to won't announcements those industrial partner not and and larger the on applications We've the over some

well hydrogen. very over hydrogen as our But time into but not the you in a and move know, And if fuel to that ultimately then billboard on a we committed that for They're only every go because fits as a time. you for spend in through our hydrogen think Korea, run mix market, you market cell as continues in it's to airport. very electrolyzer

Some of the reasons about that we're Korean market. so excited

the out projects, And potential most as seems follow-up, international a all eminent the which promising? of and just one

have we, projects as inked. don't a rule, speak Again, about that not

can demonstrated markets, think about entered it and spoke Belgium, about Southern this. -- what do And projects. several last our I important. you, And right? markets: Taiwan it, Italy Italy, about X for have customers soon Singapore, very In so right? we Just with the we U.K., And our Germany, from Europe, we months, first cooling talk CHP Northern You're on tell XX are with our because partners And entering just becomes coming CHP off important. Chesla. in Europe, CHP that. is very units for super using we we’re working seeing

are shortage because all have power. think Taiwan, potential. amazing we us a we these markets great Singapore, So for markets of think there's

cannot term, no term, -- renewables. put So long land to if you has that look just at midterm, country it's Singapore, short a

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