Bloom Energy (BE) 8 Aug 242024 Q2 Earnings call transcript

Thank you for standing by. My name is Mandeep, and I'll be your operator today. At this time, I'd like to welcome everyone to the Bloom Energy Q2 2024 Earnings Conference Call. [Operator Instructions] I would now like to turn the call over to Ed Vallejo, Vice President, Investor Relations.

You may begin.

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

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

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

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

And Dan with progress will to turn our time and overview the prepared your KR. we and KR to have Founder, begin of our Chief over take quarter. highlights today Dan remarks, will after call the Berenbaum, Joining an me on call questions. I Sridhar, KR then financial the will now Chairman Executive CFO. and will for our review [ ] Officer; are

today. us XXXX strong half for We of executed with the thanks discipline. to and joining plan everyone, Hello, financial first

We are on track to meet yearly guidance. our

a to end position It the for robust grid. through exceed a huge technology, to understood continue future financial opportunity. to strong operations year It and widely expected is We supply is now far our demand expect that is in the presenting Bloom available electricity and team growth. for advance with

interest We are of seeing products solutions. high levels our commercial and in

this We in decades. experienced the two like have anything past not

As the momentum if it, And see further to for trend gain anything, and least I this coming here another in is stay will months at years. decade.

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vehicle it, see transmission would that make of I investments even and well assuming to take and of centers location-specific. be growth electrification. Most growth for location. the data from will customer generation sites demand and As over decade the massive bring come load will and power hurdles, it view, to all clearing my from necessary and upgrades a permitting this of the power distribution regulatory coordinated most In building

to constraints and most will need fleets. have the electrified centers dominant will They to traditional the will constrained. cities commercial their transit residences Dense greatest scarce customer. Edge centers, be minimize to the need users me for data power. and mass of power power be data Popular Let in charge nerve economic delivery that are AI EV other distribution systems will few. population close highlight To power centers a and and already the with be centers latency, buildings. power to need

three these come. The and demand more the from competitive means is is ability for examples, grid's grid going ensue. to power also from to As stress where opportunity. lost Delays challenged. will be delay business environment, you a increased already business In timely the every markets where see constrained to is going severely supply future is can growth revenue

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power XX/X and to use, than air there of market generate solution the is the in Bloom now, it without point and Servers. If better you you reliably need at pollution Energy the want noise, no no

servers or grid Our grid our No was needed. year, interconnection at our tied XX.XXX%. Last fleet energy completely be average XXX sites can islanded. over installation availability

Let sites either wait embrace then than was choice, have or annual Bloom that operated carbon servers excellent matched help on-site other for their commercial with utilities serving gas. and metric be lowest X-plus by is net natural technology customers power with an that in and market cannot to developers our grow. paths me the operated two repeat themselves over our Bloom's is XXX availability and a footprint they fuels years today. The need a XX.XXX%, Solution, which the emissions our solution power offers user. an zero all at zero and the They alternative We to see sites, of that energy help Energy end Today, Bloom force communities aware are any all even is supplement. also

with the we work with First, solutions. seen behind-the-meter end our have existing you as customer directly can

strong validation see in U.S. to a the AI, This large internationally. pipeline purchased to intelligence. is both a and in project CoreWeave, artificial leader Servers. continue of and importance sizes, technology's We Bloom our recently further

be meter customers will in new with megawatt [indiscernible] customer Second, we of received that megawatts with served to to for end of XXX solutions. Silicon meter increments. Power specific generation just approval the dedicated can City the front be to Valley serve the front Council up of generation

tax As with to support Bloom its to power to by customers. for growth We same terms Energy the the working Power in Under SVP Valley solution. embracing under without part megawatts, AWS. will using the resell is impacting dollars, XXX that a it like of suit. a obvious dedicated believe a generated other than SVP's procuring jobs SVP I excited was AWS. needs to and servers that thank the is customers the megawatts utilities SVP's payers. follow directly planned Server the serve on for should utility its win of approved We local XX for Bloom structure, local for or is customer, fuel the Bloom's Bloom. fulfills working choice solution support applaud losing to such power It with Bloom Bloom needs its will mainly AWS. rate XX once them model. currently rate Silicon SVP the economy, megawatts a centers the the Energy finalizes leader providing restructure and using other development rather cell SVP is is payers, tariff. This additional data in customers, customers being

we we strengthen announced our and our Combined development; technology hydrogen in further Heat continue week, position. and Power innovate this XX% efficiency Earlier leadership while to electrical achieved to using and high-temperature our offering are XX% fuel efficiency that efficiencies see a fuel switching using we XX% heating CHP have I XXX% a option. for Also, our energy customers We key in hydrogen as as efficiency with benefit and can servers. record this cells. cooling. achieve These to fuel Now

our center be These which megawatts development and with take questions is high-performance to solid implementing CHP data the over as our on the first speed the commissioning. be at parts for technology for to Britain it well U.S. is I'll to executes versatility leveraged the and New examples speak corridor. oxide solution a In new in I'll platform. now, Center your Solution turn case, for installation team as XX of computing Connecticut Dan. this our back the innovating The Bloom shortly. But & for Innovation and and of capability ready Energy will Park, of

everyone. good afternoon, and KR, you, Thank

was the earnings mission. and drive joined I what to weeks call, by our During after in succeed two last that mentioned only already people quarter's impressed I've the which technology, the I was Bloom, I seen,

at profitably as of team the road map, product an better ready expertise, to to use the point this our of understanding of tell technology, the having the solution and joined at delivering priority depth can adopted. pipeline problems to had the team's our that have becomes point even power make scale our top of more chance our excited that commercial I solutions. My gain I'm to an manufacturing widely Now sure is the more you operations, to our even inflection we're for

We commercial and leadership. have operational strong

the they our Chief our Operations this and Officer, developed are and innovations Commercial partners by products and Satish Chief Aman leveraging in team. effort, strong Our Joshi; Officer, Chitoori are engineering

results; becoming in quarter certain was expected. million, to centers the increase Looking was service electricity revenue projects to increase decline mix. 'XX. by million, in of at due part an that for revenue revenue revenue Service QX $XXX.X as second XX.X% higher of to trailing are ASP QX a the increased the XX.X% booked total and $XX.X Data increase continues we of year-over-year, while over our of larger $XXX.X XXXX. Product quarter slightly X.X% our revenue million, an

same providing basis on power our second gross the opportunities problems XX.X% announced previously grow to which solutions for XXX is the the deal data to projects hardware, was looking an build-outs. An points critical power that of the with improvement quarter, we're Quanta, manufacturer serve. is a to ecosystem Intel but center to the announced they to large support support is expansion, the as like data time over recently margin quarter approximately XXXX. second broader its this addition data of facing the by customers, of Non-GAAP centers example In center with center of executing manufacturers data

will to Our to full we service planned, be the be expect business profitable results year improve us. and which for first service have XXXX, for as a continued

product manufacturing of scale. the technology by reduction efforts and efficiencies supported our Our cost map, road benefits continue,

consistent operating communicated in core second cost million was we for of of a loss We XX% million, the improvement $X.X past. have $XX.X to expect with a XXXX. the continue second an million the quarter loss year-over-year energy Non-GAAP in almost from in what quarter $XX.X reduction our of servers,

second as and increase collect outflow was quarter million to the up have the almost the the Turning year in we $XXX.X half to a half receivables. due to entirely and inventory cash cash in an for monetize receivables. common second year of an us of activities in of it It meaningful cash first on in make is flow; outflow operating from the

second cash positive to expect from be half flow for We of the operations year. the

May, net cash, quarter sheet; the $XXX.X gross we of Turning million XXXX million repurchasing ended financing with in million of to proceeds $XXX the we the debt. balance the total convertible $XXX completed of our of including

of reaffirming $X.X we and our to revenue, pipeline, commercial annual confident we backlog can revenue gross approximately and for our XXXX billion are non-GAAP $X.X deliver billion We annual guidance margins margin. profitability. that With at XX% remain

by where move through performance. in are before, expected that projects significantly remainder the will we of margins the and range the stated be revenue product year prior pipeline. As within be QX. the lower on should to service years, improving improve timing is of the Gross weighted with land we guidance towards costs determined Consistent as

million. As financial model. of and operating well-positioned revenue $XX be $XXX leverage we significant the annual million is to margin gross we there non-GAAP this have profile, profit noted achieve in should to previously, volume With

introducing changes look assess we're to To We believe metrics our the the forecast and beyond give of footing we momentum our use operate we pipeline, on delivering strong our clearest evaluate changing business. conclude, metrics to our plan business possible of we're of picture how projects to XXXX, seeing our the certain business. financial with certain a and product pleased of we're closely conscious and our to in continue that new effectiveness to the the well commercial relevance scale As performance these on as and I we further. are mix we way potentially metrics in investors as are

for for fit positioning on to laser-focused evolving around the the are to we Our needs. the world's challenges are the that and efficient product companies facing, provide most and suite energy profitably and energy perfect the solutions is world reliable continue scale Bloom

over Bloom be our three that that call Bloom as be my joined like and past he's to final opportunities. I like other this Relations. Michael operator, up. With to Ed enhance Vallejo's course he Before has for endeavors. of who I'd years, for well ramped on XX will I'm investor over of also as I thank Tierney, the sure that the With Ed everything introduce to to future and conclude Investor Bloom years want questions. remarks, communications earnings I'd line of his open all with the to moves that done him wish we program note in that, Ed new has continue experience, able will Michael please for VP just buy-side the

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

I deal obviously deals, some congrats centers of CoreWeave to data progress thinking those we're Great with deals? spot we CoreWeave well or on side deals But announcement year? should make about be to excess this be for that. on to we to want you of guys of announced start we The from be quarter just front the center the see of point sizing we wondering as guess the to guys you some do megawatts? the how about larger expect XXX in see these start this be so to if about the types on that data should guys that expecting I evolution think this some was starting opportunity, I'm you at megawatts. should XX some sweet here. Is

for and you great thank question. call Andrew, the

should So is entire I what expect an spectrum. you think

You their single-digit custom-built now way additional And they're data the should in the the XXX-plus away. say able of XX looking the data spectrum power built smaller density and all CPU and for all to our space right centers data from hyperscalers single here as GPU megawatts on is are speak. XX, hundreds from for few and will range. centers get wherever There the in white the are the size being that switching there centers mix way we This at are right be edge. in to other which expect megawatts. Then white all why; [indiscernible] size is those And edge anywhere in megawatts. data centers space, megawatts reason in you're to not small more the with are have all they XX, that power to and need requires I in same the XXX-megawatt the to infrastructure they smaller

data edge Obviously, operators of the that spectrum we as both the smaller hyperscalers as see seeing center it, we So X centers, from way all from a megawatts. purpose-built, data as are well hundreds the to large the on times orders many quicker getting size the complex takes that little done. deals and transaction illustrated fairly to are deal, bit the a and big of size velocity I've come. that these longer

So expect the entire spectrum.

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

on ] the Henry [ It's here. Jordan Congrats quarter. on for

are on Just be just want we the expecting ask I volumes timeline outlook remaining or of deployed, the on should kind what those. to Amazon be that yet to for

anything this can at say point you that? on If

Yeah.

front customer megawatts is Power AWS [indiscernible] Silicon it, be It Bloom Power them for sleeve if by and other will at that a doesn't there. in negotiate is dedicated customer and So AWS, a you Valley to Valley separately Silicon impact at is I specifically having XX they rate them, contract. two but references And Silicon Valley think the into the are Silicon with there, any is is the ] rate by a of [ it meter. that at power. with there look and Power get municipal our their like This it one Valley Amazon, to leg -- of contract contract negotiating is a with is fulfilled

in on XX request think we megawatts I contract separately to they that halted that forward. for a had grow you're go all to with the XX-megawatt submitted a us Ohio. is AWS relocation They phenomenal have and of model this will us Oregon. Separately, model aware working as

worked will currently AWS Both AWS our on working between these and parallel, strong being given deals details. many hopefully, those are with We in opportunities, are and there be other Bloom. relationship working

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

potential that near-term data get puts of or to SK? wanted whether include and centers the Just orders $X.X guide, are takes any of the million. understanding Does $X.X to it's whether an from or billion data what its center the

billion up billion we we where talked about dependent that projects. on end being timing we've talked about the $X.X to of $X.X range within So

talked specifically projects to what of those details projects about haven't and are, specifically those with customers. specific avoid providing we sizes about specific try customers. We talk We don't on

backlog So we that within all wind commercial range timing have dependent say our on our we billion in we Where we billion can is between range confident are that year. $X.X within for and is the that pipeline, of projects. $X.X of up being to

And is not data a to should amount how space, be for assume to given Dan, our in the to is installations to some segment, speak market will would us. and up that is in it's I KR, the of Dushyant. to to customers our up that us add but size center strong say What center that, you this data

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

envelope new the of My on gross Congrats back orders. [indiscernible] quick to XX% hit margin. about indicating the

from gross improvement You have the first XX% around margin, a significant from be half. XQ, to

guidance. are hit guys You known to the

understand So a in drive gross all half this that of will help margin second us materially help the better year. the factors

Well, there's of in I But our talked mind, mean model. volume Manav. I through as if factors, don't look, we've leverage you discussed, significant the all

volume, the I and reiterate benefits mean of to see As that, expect point to look, our we ramp the we guidance. we

pipeline. We are confident in our commercial

in that confident with margin the are We growing that volume. leverage comes

XX%. And so that's what will get us

we is doing full that in so. Your half correct. need strong we're understand of have I the confident for year margins the XX% back to to the gross hit that very math do and in year,

from Evercore of the West ISI. question with comes next James Our line

gas for years a with number XX traditional we've especially certainly the of are I pipe together? KR, electrification, pipeline consortium? come electrification next it data companies center that the of natural that and how was Is all center, between your with to being producer? how you Are already, in we all does the maybe data all companies the of traditional view asked the agree works role from directly to And energy need it a the curious especially. centers. data by X, companies? energy I Bloom, gas' the So heard mean run the

a -- good question. So way James, the that's very

model to answer. not from thing just state and first -- that the is specific say. I is varies there It a first would the place place That's to So state. the

center negotiate When deal They that's hyperscaler And assuming center, have would an The their them second with to their have order to answer their their LOI. and with deal cost need is purpose-built is first to put overall how the who to Even together, is data they process. they a the being a on is it's data LOI follow-up. an for partners will a a customer. cost, LOI, fairly their compute good have much that have in going handle them.

So happening parallel. are these to things, extent, some in

a as So provider. will with us they technology engage

assess gas We So local with to is this the gas will going be wholesale, the is regulations retail? it together. gas comes an the out, Are to they How play system? working system is the them are? procure to going Does what exist? to upgrade there it already all how

negotiation So in a multiparty way, together. it's happening a

But a that you sale, about working mentioned but the it's is good engaged these of that parties north glad things or you together, sale, you think value, sticky, and multiple billion gives and a to longer that this $X very deal is will long-cycle of and be what number fairly complex. the at times asked look how I've now you you I'm that's So deal have happen. see megawatt duration total now in XXX-plus a well because if question

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

please go is open, ahead. line Your

then. Are you We'll come back Colin? Colin there, to

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

Yes.

there? that I South just hydrogen all guess is this And maybe the I in your of think the guess efficiency I how improvement, one speak with maybe you your So deal power hosting its light market hydrogen and of position cell helps overall and you to, announcement can competitiveness on Korea in options. fuel

that's a good question. Hey Chris, very

You're absolutely right.

as are Korea a emphasis and not strong the would reactive. on hydrogen have modified possible [indiscernible] a fuel, you noticed we has process As has pretty

release of the our heat emphasize, is and to out are product XX% at match just technology coming And engineering world that. electrical we The XX% put efficiency many We work progress can years. of that overall and that there in high proactive. I other XX% last the press that team want and for our that development not is efficiency steam temperature a a in team

systems we extremely the So both that as market hydrogen well-positioned systems. gas are in as for well natural the

assume is if the to to fuel the sure our is Our figure partner, one they irrespective from when And good best best is, of provide would what up Bloom were that has call, another. the But out SK, they on technology option. them given option. transition job to say, it customer technology fuel make to with we the I really they would

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

maybe could try wanted wondering Just the you better get to maybe of a of the the servers. to one your rate if economics was I for Server. heat speak Bloom idea around to

give to just behind-the-meter cost -- how would say, gas hour per for situation, So much $X.XX sense on get I'm kilowatt basis. cents a us a with trying it

is this KR. Martin, Hey

I the You're rest over map, the question the call spend if asking to to that's explain that. a and we were need may of all

us reason separately with I'll end in name day, other we the meter, you've do. are is that us from I to that it. with is sleeved every attributes, case, other customer think of have will price buying to option for customer specifically business. multiple will in is customer are along we our what of you grid provide than based way. the in the places. But sustainability, of from alternator. In from with because the about electricity better or Then us got to on their buying other here's the all or sleeved have end look, way you no an the cost equal this because our are of is us us because compared from we provided we in the the reliability, whom buying work team front the think to buys we At serving in So transact, the there of that terms not you

me emphasize, price the is power. way other that in site power on a cost no customer of Let get of having larger not than to fashion reliable time where to significantly power for power the

calculation they they do That's So do. how that's it. the

heat So and interesting that not to the all rate interesting is it's customer. thermodynamically, the

next from [indiscernible] of Research. the question Our comes with line Wolfe

I expand you agreement noticed timing the buyer. sell on to to just Electrolyzer in Q, an able there's a to bit that European size, of Are in sales? terms of

things to look, any policy we pipeline permission So about various there of is lot and with in that pipeline talking is any a have the agreement of in of stages our customer with our speak the customer so. commercial when

So pursuing electrolyzers. we are

know tuned that where world's permissions efficient proper when conversations. the we in most we proper stay many engaged we are There are You best, have the markets have Please electrolyzer. the and timing.

We let you know. will

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

a need most I work thing wonder about wanting talk the door, interested of customers expansion. product, of with maybe is coming some course, bit attention-getting deal also you at your you're are a out. repeat a and you existing sort your to specific I customer One because what afternoon. seeing they, long-time with on customers, of of economics could can in, situation trends wanting good and Hi, brand-new course, was you the

with the really customers compressed much that when how year's And your well-established of can guidance, looking the be you those? expand? comes looking of backs you're if how what being can sales much -- to maybe maybe So accomplished at much to just just just cycle on mind

at you talk year. know, the to year's good question. Look, policy That's end getting well in very year, the of quarters a without particular very about know, into is our bookings as the the

then without pilot of referring in volume customers. to terms amounts. scale terms of have you, in And we this of more us. year, comes lot I Obviously, newer to okay, is they reason the roughly from they two-thirds business, -- numbers, the from used the can from volume tell and So dollar traditionally, with business our repeat

So strategy. land and expand has our been

particular and coming data with we seeing what are especially a However, is for center that in centers, the some other first-time given this are now space customers, technology are we data [indiscernible]. like spaces, well-established large very in segment

So go this depending -- dynamic and we we more that of big forward. potentially, on those change and that could will when land deals, you we see happen year more as

very base is existing So a base. strong dynamic. that's customer the But clearly, our

have wallet, we of can good lot but that. share wallet, of to get share and their we their a more continue We a grow

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

I talk to I guidance about for Investment had would last I some you think last wondering useless I kind kind know credit maybe comments IRS, effect the if just us to is? Treasury I I was how of how and that all initial the Credit. Department proposed think necessitate of time the guidelines cost you stay could something we the that, with you an the earnings guys to filed that of more Tax kind the it will guess, XXE down be call And rendered of until think as its as proposed. on year, IRS

Yeah.

able commercial times operate. even a policy structure being power going as for was our brought the when in was when a environment. policies the early looming be discipline have been and not is an company significantly issue. We on. where history, same our the showed So [indiscernible]. cost policy has not and and to couple the back need been get the We and higher to decades for clearly those Even power of reworked issue then customers look, to for over to are and of uncertainty lack best company, days for try in while policy our I It that was it resilience there of and availability for the advocate for can't that remember a and than

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So sell how company We built. resilient business. resilient just the trying is not that's We're being products. build a to

of those we're Yeah. successful no with circumstances in support. going support. of a government profitable will cases. I'll We that We're all And the with to term. be in and government long that that up jurisdictions make for in operate for operate towards setting sure we add company is successful working any we just those have jurisdictions customers under

Our comes Kania question next from of the line Capital. with Alex Marathon

might just just broader data characterize sense to happened a even let's a customers more willing for auction cell weeks just are of up that on whether call explore about bit meter, to if couple the a could behind as fuel a interested the of demand, as Maybe beyond in PJM that that centers. say, say, wake-up I'm ends a help And be solutions of customers broader of question maybe that the ago the thinking let's solutions? you serving range

Alex, no a very automation comes start charging, warehouse where more the will needed question. this in power cooling good from that amount electrification per -- electricity of And of you all of foot places. warehouses, square place. look the of A matter from that's planet warming means automation is consuming everything more in look, when

notwithstanding more demand put together than scale that, move demand with be you But the just the all the You next and faster everything drivers other these centers size, centers. the which else. sectors. But that from data the in coming put see everything is will else equal or not the velocity together, from will data year

you. you we it's top, as attention. just because focused, sectors. talk are everybody's and with is we But at centers agree about So more multiple But we catching data on the that the know, today,

end these as build wonderful nuclear After using and plants. is They them right, technology to Our of Power even its utilities, power in a don't solution? Bloom that here. them serve [indiscernible] model, power build our stronger. utility plants. build our Valley still What not provide that Silicon their lot for Boxes prevents don't keeping and stop from to all, the customer is customer lot to places, their model. [ from customer. using because using to didn't with thing they customers their Same broader business a coal power That of power provide each And ] able They don't condition. You say either. power it's customers a

great So question.

leader in the Power and create [indiscernible] We space we see for expect that a to this model. up, trend to applaud being pick

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

question the targets understand gave I short-term your we is what Analyst know the But sometimes now, or of cost the thoughts them. just around couple years those think just Day, I have. picked a targets that up to at on guess, don't you year-over-year. product of kind question wanted then closer gave from longer-term sit Just you But that visibility a where you first your you

Yeah.

one a there, let a of questions, a bit. So but at me little take in questions and couple them time good

look to to business at reporting this So business, that my at identify Most is We're continuing we ways full simplify again, when that we make want what the the judge how reporting. importantly, really company. we investors the how decisions, do, first and we to ensure that quarter reflect underlying at we we we performance. the our look the the fundamentals tell operate business

On the of our look today, number you changing. at as a side, business are cost things

relevant. less So becoming metrics little were very are a that relevant bit

at per kilowatt and adding meter. looking meter countries the cost when in behind the from We're we at microgrid, expand. Power, new you and Combined if add kilowatt, changing. our about of talk front at capture product, -- to and looking cost per those new Heat the because mix the geographic our that published, it flexibility product For continue level, we around things but We're high core solutions our the configurations example, it's solutions our like is carbon a look we're of very all of

past in of bit And a more those little little that compare prior a apples-to-apples to maybe used things becoming periods. to bit are the less metrics so some difficult It's relevant. we've

this you going asked do we're we communicate metrics it. a question bit what about thinking how want metrics how to little talk into to of longer-term additional have we to still we're our ties model, about the and we're going to and going provide, to about simplify to again, So start what

promised on that I in And here add year, as meet we of beginning one double-digit additional Ben, would thing, apples [indiscernible] basis the response apples apples to will to the a reduction. the Dan, cost an is company, --

reductions the changes, you on cost price seeing the numbers you. And side. basis. to But versatility will that's to So on what while we being able on on platform. track the the are beauty comment of But reported Dan cost so we and that are be meeting the old told based

margins, the So at revenues of our and be of measure day, at business. the our end that's true the looking our you and should

Absolutely. is our And and profitability our we the measure look at growth.

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

Can we get a microgrid the initiatives? and quick update on Baker Hughes

So today. microgrid we microgrids the look, operate roughly XXX again, tell instead started, of of talking that about a you customer, we let north initiative me

we there's turn find you are given number part the some every you single And has number are, natural how know out. on that's we a okay? gone for two, where country as grid TV your and And out the to in disaster where one. of business, can day So a and

What this sales we We the even microgrid right thousands is our now. of past important, have more for microgrids. graduating through are customers XXX-plus done

interconnection quickly, completely is so who connected time able to For our only have it issues, islanded the that because many is them but know not provide anyone the us. than of XXX-plus being that customers we power reliably important. is do our that without the grid, sites That's on availability being power hardest. to can why to Most do technologies other cannot of had do that don't that. I XX.XXX%

expect also will okay? grids, only we that Quanta it which by. And the but space strong, -- microgrids, a in is to we not do time is the grid. announcement that connected we not islanded A microgrid, for made that and call do to it will is which AI So recent way, you if microgrids to business grow are plus, are want which to Islanded goes we continue as

Atlantic. from with comes Our Landon Redburn Skye next question

mix. revenues, And time? mix or deployment of has you mix data medium-term? data then and what with the with currently developed provide short able the over historical be looking the revenue associated you percentage be that, anticipating you're could back to specifically this data Bloom's around attributed deployments, wanted some of center I how able us circle can which to Are centers color on to that in detail center forward provide some to to around

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are is firing joining all you Thank cylinders. we So executing well-placed our on for us. and team and

call. today's concludes That

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