Bloom Energy (BE) 15 Feb 242023 Q4 Earnings call transcript

Ladies and gentlemen, thank you for standing by. I would like to welcome everyone to the Bloom Energy Q4 2023 Earnings Conference Call. [Operator Instructions]I will now hand the call over to Ed Vallejo, Vice President of Investor Relations.

You may begin your conference.

Thank you, and good afternoon, everybody. us Energy's joining earnings quarter for call. conference you for fourth Bloom XXXX Thank conference regarding furnished Form call, XXXX this reference supplemental supplement To we we that release posted along will the financial have in our statements website.During information earnings questions, we your this our with SEC financial Relations Investor both that our to our conference and call, and on call X-K in make answers throughout forward-looking it with future our performance. to this prepared future represent press expectations remarks quarter events fourth and may These and results, products, full statements new liquidity for the outlook position, XXXX. financial include company's year about markets, business strategy, are upon These predictions and our based assumptions. estimates statements expectations,

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For Greg Cameron. our now, CFO, I'll it to turn over

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by the standards in over timing hydrogen which expected volume revenue deliveries, current XXXX The generation, KR years. additional the next $X Under revenue over commitment. recognized This agreement's are and demand backlog service megawatts revenue and The the visibility XXX electrification, the billion in data the and ecoplant. is versus commitment XXX Our some for a for in those incremental highlights, In we agreement, up additional under total performance. years billion a XXX-megawatt recommitment quarter, XXXX volume accepted incorporated meeting incapable is electricity the and to reduced providing over the year-end the cash.With now fourth revenue SK to deliveries XXXX.As clean into was our product as megawatts prior versus next signed nearly million through of $XX product and agreement capacity amended be megawatts. a be agreement is XXXX, for of driven by that of world's billion, the will $XXX We service adjusted context power me for the $XXX over provide million XX Korea. will XXXX an XXX $X.X being XXXX agreement needs. $X.X portfolio implementation new These is in global the of reflect roughly XX% new with prior X AI agreement and The through with let billion EVs shared, our transmission be entered the XXXX. centers. distribution

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we our As XXXX, to we into move maintain cost expect double-digit reductions.

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building to our continue non-GAAP inventory our and beyond.In gross $XXX investments roughly million, million. XXXX expect a that driver of increasing key to increasing made we be expect total We our had repeat to non-GAAP cash margins service not in quarter, CFOA to in XXXX, In I fourth improve we XXXX. $XXX the overall balance would positive margins in to over will gross and

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

of first guess I been in years. the AI endeavor, luck great. your for thank just And partnership and It's best maybe next Greg, on theme. data the your you center over few last start off, out, to

faster talked would end are idea be a constraints, development a is power some market. sounds power thought it the would technology just as on lot of definitely these some of you're that AI. momentum. like given there pace these conversations that you guys guess I have gaining pursuing around tech these I companies some bottlenecks that about think of of But with agreements. have I And for a having solution key KR, and your shortages

that then as what's revenue negotiated the through to process just across in get allude in South you regulatory you a maybe for in of to are conversations XXXX remaining included to to a can driver separate comfortable XXXX need a as to where follow-up, market be some maybe did relates sense how those some it as in delays some the and Korea work South just line?And with the of changes? or these finish and Korea in a give Can your sense for us So maybe downside give you get these you items us the you target.

speak AI Korea to Greg will I I'll both that. to markets, centers, and to we the can add data color have too, the talk and

and were just X up CEO players, large I add levels. met centers. addition and at had are if terms X gigawatt. you look, days opportunities X X meetings data I greenfield than at this these is look Board of tell with C-suite just to in days, to Bloom, So having today I've meetings about of And leadership, of I call, center meetings a last that, X.X data to earnings these And more interest my pipeline in that collectively, would if

told and whether at just their customers. unlike that the and companies centers. in at the by it greenfield that's what the But if they we data very multiply we are TSMC are by their look are about is then being of are terms what looking fabs need, at you And projections real So what are and numbers. what earlier, are and projections these you of numbers big chips, what these chip if we these look power talked amount

we they're get So to securing these they're securing to are customers, they're permits. financing, they're the land, trying offtakes, securing as their their their speaking

So elongated it's an cycle.

opportunity half. than first on seeing. we But everything we're focus the to continued half a the huge based traditional more which good disciplined. have gotten pipeline robust to second we to first at a lot And on sectors the a half are be expect our build through fiscally other We could and cost we

be we are and see choosing with therefore, this we is honed great extremely Greg, very about And on in opportunity where and it real in do to talk you want optimistic a going Korea? our very an are about our to area. We deliberate on as opportunities, future focus. this

the words. partnership thank Yes, kind Andrew, And as I've sure. well. you your for enjoyed

know at impact this was and But the table, So came this the time, partners known XXXX that the change as we're come have it to back clean market. exactly if to to impact then the with was portfolio standard, on change hydrogen said, going to which didn't how all the did. the we timing, in does back Korea, to we going was it coming, as way

minimums forward, the the partners think go there for being made didn't pretty is had minimums we the agreement a I on good of year. year, left year. track into market we understanding to process out. I we bidding place, as the going to have at of and next quarterly and looking looking have now there, And We we quarterly is into in have can that going how we with the sure is before this through us at some before at we our have market annual one went year where minimums the and it as changes where that the to we're now we play think is that uncertainty 'XX make look

to think is I are technologies that continue years, forward and X I look market X, expand, was good in to So together. actually a going the change.If come out going X, the X, that market to X,

for swim And in That gas Korea. as fuel separate both as on have versus transitions really combustion the going grow, continue market as to about Bloom's hydrogen. electrolyzer to natural to fuel products, for cell won't feel very both cells well you it So to I good side things. the lanes is well other do versus

with over great them years, enjoyed I've they've market. a last that with of few much the been have some encouraged really time partners. nothing but ecoplant I'm pleasure with both partnership and had just and very D&D spending my and the So

partnerships our and market. we're there, about excited about really we're So excited the

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

clarification. us also end question range is could of My XXXX here you is a quick range. revenue? of understand just the X.X% what quick the in push Help top And the a towards

You are very capital disciplined.

million operating any those profit, burn in issues. very that cash if and could if $XXX imply would with So address million any, minimum to external a financing you $XX needs, small for

Manav. Greg. Sure, Yes. It's

when we've together midpoint mid-single looked and be it, we in of that XX% script, to kind think digits listen, the the of being plan gives little the before, kind versus is going for of bit revenue will earned my be a why up half. talked company about I we looked our the at at I going way pulled it So us the in and year, the and is this in is which where year, at the What's second to fair XX% of is end first projects U.S., of guide more year, those half is the the to through of we're or is of drive to lower that going around us bullish higher timing late very the XXXX get we the from fall of both the a to broadly that really we the list go I'm projects, win And in see as and to the international my guide on projects. in the expectation end more to we're going 'XX. they're and going in clarity our share those and either early Korea. this

on that I that itself? the cash drive EBITDA look cash I'm around question right, on much so on range, to with timing expectation have But will positive delivering the commercial we deals XXXX as the So years. be those the projects, the company metric. running it our expectation, well full as will And we a year, of EBITDA that it at, end through metric higher Bloom the the leave of winning hopeful.On listen, not in will And for my would and is of last of go the the that been expectation full it's is burning over both systems, the couple projects. we've says, bunch us is momentum, as my burn,

them would the capital.As around for forward. was generate on level about It's until to similar due to next when we be we we're August have where balances working I I to needs had that our value thing CFOA not current that usage for that sure change that that and If think that. it because out make we don't coming in than of was need the to million, not view the a opportunistic the way with XXXX to bucket in investing say been not expect investing chose. if not preparing 'XX. company, It company more that cash that you that the to growth $XXX significantly can to be million and opportunity of And come the our XXXX. be think something a that's business the the we going inventory grew August. And case, pay expect will systems. would in off could But that there has address going the will in the really other position inventories one convert So to more of chooses year. cash things going you're from $XXX levels 'XX year-over-year, those I capital growth about easily in CFOA around is

So on has lot and company options I the how it think addresses when capital needs. of those a

Our from Ailani comes next Jefferies. of line of Dushyant the question

wanted to thoughts guys you going that. electrolyzer to just quickly thoughts in delays on talk some just mentioned wanted think given I that you're I get optimistic XXXX, in just But on sales know I your about into there. FIDs I LSB.

still electrolyzer 'XX some that. I'll be is K.R. and Greg have So Look, meaningful we comments and as We beyond think to there's revenue. that's possibility. shown a to additional add this have going

we're now. through few me Let at looking you that walk things the right

from working with the engineering is you, have we hubs. things, geographies, power But as willing just here, and and working speak, those. talk told have customer Island, projects demonstrating it's supporting is the pre-FEED go money on for we're the is on a the those implementations X winning right But like it. on an let's an outside integrate unit, to well delays have is it XX the you too, hubs XX-XX sit Prairie to are production start of very what's in it. on credit the Bloom And see with U.S. some plant these one.If who we we X as the depend those tax look shipped we side. mentioned you These you the are already know, X now, now Middle the nuclear hub support able look of going delay and as as OEM. The with and to Europe, regulations East of it.So But going are going are right we now ready, publicly the our if that to and in Australia, is the DOE. rule supporting beyond That's are hubs, in at other to we projects as we As and going drive our about including pre-FEED in in we but Xcel studies FEED those the multiple we whether project running we XX% number those. PTC of to come the with

just stop exceeding you our not project good Idaho out saying well, at but shipped That working is they there we us. If with look performing enough Lab, National extremely about can't INL things unit expectations.

a program. that's our So summary electrolyzer of

Yes.

technology X addition is, is that, efficient have I'd here's to capacity. What optionality. over the what of Bloom get on and think I market in with is right, add gigawatts most our the you we today,

this The about talked majority and product. near the the term, always of core generation be by short-term So we our going we've long-term rates. is see growth with driven to power growth our in

of and electrolyzer. is and driving fuel cost we as are the same all it's that out we product, put whether chain, our a the capacity, the about as great the building manufacturing in around cell it the automation, stacks columns supply what's or Now down an

every not down, curve cost day to on for waiting we're are drive learning we that and how that. So

get field. As how in are stacks the and well we columns billion as coming day, data every X in points those performing and

and market have for and it we high product evolve for great does, really manufacture that's we're what when the ready have in wait get, a will think it's develop. Bloom, to efficiencies, and to to we in our while we revenue amazing the with it we be business. will market you going So it to the $X.XX waiting out on that We not optionality last because But a generated built year meantime, it have billion that as evolve customers. still company

Our the Pavel James. of line of next question from Molchanov Raymond comes

green a you about European time, where of entered are the was is it it year moving guess forward. some and first hydrogen market the ago, I the projects for Europe

know the in fuel in some making I Europe? So progress U.K. you sold and electrolyzer any with are elsewhere, you've cells product the

hydrogen what we the shortage green about But a and potential pre-FEED let's electricity are molecule. Europe in it's story studies dial power as we in with on is right? few that second makes customers the Andrew we So for speak. do. by electricity a the off talking in Power that too, and started

if we that electricity what's the there's precious the to fact when make you're uses making electricity, the it's electricity. stress being that say, that need with So to technology even a a less that that win. with then That's shortage going that going to of is understand of and going that electricity molecule macro made is molecule that obviously, to

several the of in But So implementation Europe be now. able to to it very pace us confident customers right is we slower than that us And get we're of to all be going to are talking there. seems what want. to

an and advantage for and just a I want not overemphasize that, that's as correctly to electrolyzers optionality However, alluded, being for play can't competitive I and amazing underline us, pure is Greg that. an on us,

Baird. question of comes Ben from Our Kallo next

sorry see Greg, leave. to you

thinking year, bit, you update the if because I'll on ramp-up. you Fremont Just a should up, times impacts margin different ramps follow the about this little about sell. down confusion talk up. about of see us the slowing sales? factory that in And how servers impact maybe K.R., we there's can servers And that you're different then we what some and Could a

Fremont. Ben, I'll on question it's the take Greg.

capacity the that in of kept and Fremont, that moved over, we've there, of have all factory last all manufacturing consolidated and the the we've Sunnyvale. And that you XXX megawatts end it a all in at had major toolings milestone capacity exited our we So we of when of just year, tooling previous company there. shy in now our

double, that our the X being some density and to think have that labor driving going that running say size going in by team down, ample take out. externally. to versus in operating I that a to other, factories to more of I'm only at automation cost going is hidden an they not one find for factories make on higher contributing that's of got but think distance XX%. we're least both that's at that room They process did but down and that material there's improvement their dollars if internally can they've And set XX% each give cost in between the not to based by they basis the still standpoint, over going a they our going we're margin product double sure last to digits, more, to increased to cost targeted overachieved know drive our within XX% going in to utilities also We factories target continue year-over-year. indirect I our rent year cost space.From to we than are target XXX to continue least and very We that this to ability save drive got improvement find and well automation as we're would points. I commitments year.

confidence So again. that full they'll overachieve

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

just the for customers talk and mix of with and some the all bigger of bit backlog revenue, You backlog pretty into the a on understanding in And gave the accelerating color these a some the cycle is with projects? But bit what there. the the service aggressively could little sales moving that's about incremental whether you decelerating at the us or some little year. dynamic

Sure.

sales we the is coming comments. encouraged overlap on sold is absorb it. of space think in with year that directly, very each I'll of of in X What although in about on deals And service add looked additional I what the it Aman prepared the I'm in that backlog digits he's things. before. coming that a Aman revenue with couple and that cycle, didn't start then the And high-performance I made I in. space you staff to that on mid-single we the then mathematically One like our start commitment, you my remember service revenue XX% And and you've with and Let this service was He an an very on that's booked. as places Capital GE mathematically, product volumes takes guy. same other when we into the as out year the of bring because are is something a he a service. only the you payments me differences all industrial but both the bring guy, and was mindset that knows service, there at high. with well. GE have corporate together.So how Korea the And well hopeful minds process, XX-year around over and I on but got audit the incredible training like that's drove between, if backlog,

the of an as of we're his that to make is world process the these fit. how a before the as accelerating because and on how saw commercial So I sure and overlap acumen continue combination I good it's transactions there's think think some he larger to in well we world going see really

more these going like Number the customer selling they much bigger the of means because elongated I would greenfield on function elongated a would to a which forcing cycle. the are you cycle. but projects, an lack projects, are brownfield expect make right? Colin, There expect would you following power more faster of side, coming from things, slightly choice. from add I to said decisions not one, macro a projects have that, said, Having not don't people us is solution. the that take that, needing There's and

solution a the have customer We needs. that

Now globally of Aman has pointed coming worth correctly Greg sold last X us and joining like out, gigawatts the X years. in power

So thing out here. him expect X complex a and deals the do we That's he about knows or taking cycle. what shrinking to

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

best remarks, help In the thanks luck. power long-term prepared business. of targets, the for your Greg, the I by wish through generation your the mostly driven years, you core Thanks, reiterated and you

me optimistic on kind of less electrolyzers degree, little addressed marine least a to at You've the to you seem segment. some but the

a what's your outlook sense progress? those, And to for both the any there? marine, maybe get latest of wanted of I So kind of just but specifically

been really because Yes. that then to just K.R. close and address I'll late. it start market I'll as of has

probably I'd And always decade. continue to So beginning our that it listen, back the me, targets timing long-range say I'd see still as planned out in as to really for expect look the half of where marine to over framework, our decade, about at built that contribute on we the be. overall we we is we

off really about way in growth our XXXX, was as that framework which to on our equipment is built based for business, So delivering enhancements. generation a focused we our its markets it's the the I building that wise rates. and power it increase all contributors And And other think I evolved, we were we enhance think then XXXX with it saw. as long-term would market

an close would our So about everything, be it's still this power that to full business expectation decade. our generation and there. move out where be it as in we you've to this will It's later K.R., been thought enhancement still it I market.

Sure.

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and Caribbean MSC You heard working about on likes our we the are Europa of Royal this. with

this get platform they of to us using power. second be common business we that so we're bread-and-butter the power a need our can where to able people. field a the give our entire And to Flexible requirements of so this customize to product doing at part players provide And spans having to consortium when But a industry. is set key one. these pain they're the is Be able develop we points That's across that is in port to seeing their port. we port forming are what the enough be

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be expect continuing to area us, a we are and very for we like we this think but is revenue, said, this to Greg XX-plus So important work. the

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

and about the from composition on ask Lochridge come Cameron Julien's backlog I there. wanted actually just just quick is BofA back real to the This and team.

the you bit color kind of to bifurcating or give right is orders there's you composition little of If data could else Just related if color hydrogen? there? little a what give and more can on centers if around the backlog between SK Specifically, any a more included now.

Yes. Cameron, it's Greg.

they around gas I to to cell hydrogen a our listen, our it fuel product backlog, move primary is, but in that the obviously it the which majority at future, would still natural of we're tell today. vast there optionality start. A you, fuel the So on has selling leases customer is is cell

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Our Chris next question Capital Markets. comes of RBC from Dendrinos

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Yes.

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

everyone Greg, thank for I all Thanks echo want to everything. the comments, else's sentiment. you for and all

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just can on some I if maybe color that. So get

simple, it's mostly Yes, mix.

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Our next line of Brothers. Tuohy from Noel of question Parks comes the

maybe most #X, the a And most or expanded you verticals with talk you business such motivated could being see far compelling wonder, is perhaps the #X, one example demand by your talks I as center affected as a #X outlook as insufficiency. new or as grid as data you about far becoming The customers? growth. that having lines for just result, what

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quickly. answer very me So try that let and

that manufacturing. The would first one continuous I think is

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Sherif from of comes of question BTIG. Elmaghrabi next Our the line

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

do you be have to the I was as you I'm starts well. Can ITC score 'XX ahead think XXXX wave curious the you believe curious, the prior pipeline the was that answer talk I a bookings carbon intensity it'd And the a the need one ones in I on of that project? of you the convert? discuss had person booked great you Are year can you to Greg, then as to of backlog complete that, that to in But about if the the to for low anticipate in that? asked, an for guide? the Or coverage. fully on visibility I end X get

Yes.

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go is that seen third I've process through. this think I the time this

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line Our Harrison Piper of Sandler. of Kashy the next question comes from

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questions that, of with are I great company. at running I financial appreciate partnership past his this opportunity invaluable I and interest, Greg greatly want take we the for to to thank in time. all performance operating the So tremendous you. and better his from help think driving

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and quality quantity the We sales funnel. excited are our of about

growth about confident are targets. projected and rate our We long-term

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bright you you. a Thank about of us, for confident all part for this thank are and future We journey. being

you. Thank

Thanks, K.R.

We you now Thank thank call. you may conference participating, and disconnect. This today's concludes you. for