Release Date: August 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Bloom Energy Corp (BE, Financial) reported a revenue increase of 11.5% year-over-year, reaching $335.8 million for Q2 2024.
- The company achieved a non-GAAP gross margin of 21.8%, improving by approximately 140 basis points compared to the same quarter last year.
- Bloom Energy Corp (BE) has a strong commercial pipeline and is confident in achieving its annual revenue guidance of $1.4 billion to $1.6 billion.
- The company has achieved record efficiencies in its fuel cells, with 60% electrical efficiency and 90% high-temperature combined heat and power efficiency using hydrogen.
- Bloom Energy Corp (BE) is seeing increased demand from data centers and has secured significant deals, including a 20-megawatt project with Silicon Valley Power for AWS.
Negative Points
- Cash flow from operating activities was an outflow of $175.5 million in Q2 2024, primarily due to an increase in receivables.
- The company reported a non-GAAP operating loss of $3.2 million for the second quarter, although this was an improvement from the previous year.
- Electricity revenue continues to decline as expected, which could impact future revenue streams.
- The timing of project completions will significantly influence where Bloom Energy Corp (BE) lands within its revenue guidance range.
- There is uncertainty regarding the impact of potential changes in investment tax credit policies, which could affect Bloom Energy Corp (BE)'s cost structure and profitability.
Q & A Highlights
Q: How should we think about the sizing of data center deals, given the recent Corvi announcement?
A: K. R. Sridhar, CEO, explained that Bloom Energy expects a spectrum of deal sizes, from single-digit megawatts to hundreds of megawatts. Smaller deals tend to close faster, while larger deals are more complex and take longer to finalize.
Q: What is the outlook for the remaining Amazon volume to be deployed?
A: K. R. Sridhar, CEO, mentioned that Bloom Energy is working on a 20-megawatt contract with Silicon Valley Power for AWS, and a separate relocation request for 73 megawatts to Ohio. Both deals are progressing in parallel.
Q: Does the $1.4 billion to $1.6 billion guidance include potential near-term data center orders?
A: Daniel Berenbaum, CFO, stated that the guidance range depends on the timing of projects, and while specific customer details aren't disclosed, the data center market is a strong segment for Bloom Energy.
Q: How will Bloom Energy achieve a 28% gross margin in the second half of the year?
A: Daniel Berenbaum, CFO, highlighted the significant volume leverage in Bloom's model, which will drive margin improvements as volume ramps up. The company is confident in its commercial pipeline and margin leverage.
Q: Can you discuss Bloom Energy's competitiveness in the South Korean hydrogen market?
A: K. R. Sridhar, CEO, emphasized Bloom's proactive approach and technological leadership, achieving 60% electrical efficiency and 90% overall efficiency with hydrogen. Bloom is well-positioned in both natural gas and hydrogen systems.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
