EX-99.1 2 ex991_bloomenergyannounces.htm EX-99.1 Document
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Exhibit 99.1

Bloom Energy Announces Third Quarter 2021 Financial Results

Q3 Revenue of $207.2 million; an increase of 3.5% year-over-year

Q3 GAAP Gross Margin of 17.8%; Non-GAAP Gross Margin of 19.2%

Record number of third quarter acceptances

Successfully launched Bloom Electrolyzer and Hydrogen Energy Server

SAN JOSE, Calif., November 4, 2021 -- Bloom Energy Corporation (NYSE: BE) today announced financial results for its third quarter ended September 30, 2021.

Third Quarter Highlights

•Record acceptances of 353 systems in the third quarter of 2021, an increase of 12.4% versus the third quarter of 2020.
•Revenue of $207.2 million in the third quarter of 2021, an increase of 3.5% compared to revenue of $200.3 million in the third quarter of 2020. Revenue up 11.4% excluding a $14.2 million prior year one-time revenue benefit that did not repeat.
•Launched commercial availability of Bloom Electrolyzer and Hydrogen Energy Server starting in 2022 to establish leadership position in unlocking a net zero emissions future.

•Further buildout of our gigawatt factory in Fremont, California to meet future customer demand is on schedule.

•On October 25, 2021, Bloom Energy and SK ecoplant announced an expansion of their strategic partnership to accelerate hydrogen commercialization.

Commenting on the third quarter, KR Sridhar, founder, chairman, and CEO of Bloom Energy said, “We are excited about our new and enhanced strategic partnership with SK ecoplant, which further validates our technology. It also provides real revenue for the long term and an equity investment in the near term that will enable us to accelerate our growth in our current products and hydrogen electrolyzers around the world. As we look at the challenges of sustainability, resiliency, and cost predictability that our customers face, we are confident that these are not ‘either / or’ choices. They are “and” propositions, which we are best positioned to solve with our fuel cell technology platform.”

Greg Cameron, executive vice president and CFO of Bloom Energy added, “Bloom Energy is executing well in a challenging environment. We achieved record third quarter acceptances, expanded our hydrogen product offering and are continuing to build our manufacturing capacity. Our recently announced expansion of the SK ecoplant partnership provides the capability to accelerate investment in our expanding platform.”




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Exhibit 99.1
Summary of Key Financial Metrics

Preliminary Summary GAAP Profit and Loss Statements
($000)Q321Q221Q320
Revenue207,228228,470200,305
Cost of Revenue170,345191,126144,318
Gross Profit36,88337,34455,987
Gross Margin17.8%16.3%28.0%
Operating Expenses80,77280,05556,359
Operating Loss(43,889)(42,711)(372)
Operating Margin(21.2)%(18.7)%(0.2)%
Non-operating Expenses1
8,48111,15211,582
Net Loss(52,370)(53,863)(11,954)
GAAP EPS(0.30)(0.31)(0.09)
1. Non-operating expenses and tax provision and non-controlling interest

Preliminary Summary Non-GAAP Financial Information1
($000)Q321Q221Q320
Revenue207,228228,470200,305
Cost of Revenue2
167,400187,322140,750
Gross Profit2
39,82841,14859,555
Gross Margin2
19.2%18.0%29.7%
Operating Expenses2
62,75164,72644,192
Operating Income (loss) 2
(22,923)(23,578)15,363
Operating Margin2
(11.1)%(10.3)%7.7%
Adjusted EBITDA3
(9,777)(10,947)27,673
 Adjusted EPS4
(0.20)$ (0.23)(0.04)
1.    Reference pages 10-13 for detailed reconciliation of GAAP to Non-GAAP financial measures
2.    Excludes stock-based compensation
3.    Adjusted EBITDA is net income (loss) excluding net loss attributable to non-controlling interest, gain (loss) on revaluation of embedded derivatives, fair value adjustment for PPA derivatives, stock-based compensation expense, income tax provision, depreciation and amortization, interest expense and other one-time items
4.    Adjusted EPS is net income (loss) excluding net loss attributable to non-controlling interest, gain (loss) on revaluation of embedded derivatives, loss on extinguishment of debt, depreciation and amortization, provision for income tax, interest expense, fair value adjustment for PPA derivatives and stock-based compensation expense using the adjusted Weighted Average Shares Outstanding (WASO) share count

Acceptances

We use acceptances as a key operating metric to measure the volume of our completed Energy Server installation activity from period to period. Acceptance typically occurs upon transfer of control to our customers, which depending on the contract terms is when the system is shipped and delivered to our customers, when the system is shipped and delivered and is physically ready for startup and commissioning, or when the system is shipped and delivered and is turned on and producing power.


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Exhibit 99.1
Balance Sheet Highlights

Bloom Energy’s cash position, including restricted cash, as of September 30, 2021 was $319.9 million, compared to $504.4 million as of September 30, 2020. Unrestricted cash as of September 30, 2021 was $121.9 million, compared to $325.2 million as of September 30, 2020. Bloom ended the third quarter of 2021 with $516.0 million of total debt, a decrease of $3.2 million from the second quarter of 2021. Non-recourse debt as of September 30, 2021 was $216.0 million, compared to $219.2 million as of June 30, 2021.

Conference Call Details

Bloom will host a conference call today, November 4, 2021, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) to discuss its financial results. To participate in the live call, analysts and investors may call +1 (833) 520-0063 and enter the passcode: 6351508. Those calling from outside the United States may dial +1 (236) 714-2197 and enter the same passcode: 6351508. A simultaneous live webcast will also be available under the Investor Relations section on Bloom's website at https://investor.bloomenergy.com/. Following the webcast, an archived version will be available on Bloom’s website for one year. A telephonic replay of the conference call will be available for one week following the call, by dialing +1 (800) 585-8367 or +1 (416) 621-4642 and entering passcode 6351508.


Use of Non-GAAP Financial Measures

This release includes certain non-GAAP financial measures as defined by the rules and regulations of the Securities and Exchange Commission (SEC). These non-GAAP financial measures are in addition to, and not a substitute for or superior to, measures of financial performance prepared in accordance with U.S. GAAP. There are a number of limitations related to the use of these non-GAAP financial measures versus their nearest GAAP equivalents. For example, other companies may calculate non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. Bloom urges you to review the reconciliations of its non-GAAP financial measures to the most directly comparable U.S. GAAP financial measures set forth in this press release, and not to rely on any single financial measure to evaluate our business. With respect to Bloom’s expectations regarding its 2021 Outlook, Bloom is not able to provide a quantitative reconciliation of non-GAAP gross margin and non-GAAP operating margin measures to the corresponding GAAP measures without unreasonable efforts.

About Bloom Energy

Bloom Energy’s mission is to make clean, reliable energy affordable for everyone in the world. Bloom’s product, the Bloom Energy Server, delivers highly reliable and resilient, always-on electric power that is clean, cost-effective, and ideal for microgrid applications. Bloom’s customers include many Fortune 100 companies and leaders in manufacturing, data centers, healthcare, retail, higher education, utilities, and other industries. For more information, visit www.bloomenergy.com.


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Exhibit 99.1
Forward-Looking Statements
This press release contains certain forward-looking statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “should,” “will” and “would” or the negative of these words or similar terms or expressions that concern Bloom’s expectations, strategy, priorities, plans or intentions. These forward-looking statements include, but are not limited to, Bloom’s ability to accelerate its growth with its current products and hydrogen electrolyzers around the world; Bloom’s expectations regarding the success of its strategic partnership with SK ecoplant; Bloom’s expectations regarding its fuel cell technology platform; and Bloom’s financial outlook for 2021. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results due to a variety of factors including, but not limited to, Bloom’s limited operating history; the emerging nature of the distributed generation market and rapidly evolving market trends; the significant losses Bloom has incurred in the past; the significant upfront costs of Bloom’s Energy Servers and Bloom’s ability to secure financing for its products; Bloom’s ability to drive cost reductions and to successfully mitigate against potential price increases; Bloom’s ability to service its existing debt obligations; Bloom’s ability to be successful in new markets; the success of the strategic partnership with SK ecoplant in the United States and international markets; timing and development of an ecosystem for the hydrogen market, including in the Korean market; continued incentives in the South Korean market; the timing and pace of adoption of hydrogen for stationary power; the risk of manufacturing defects; the accuracy of Bloom’s estimates regarding the useful life of its Energy Servers; delays in the development and introduction of new products or updates to existing products; the impact of the COVID-19 pandemic on the global economy and its potential impact on Bloom’s business; the availability of rebates, tax credits and other tax benefits; Bloom’s reliance on tax equity financing arrangements; Bloom’s reliance upon a limited number of customers; Bloom’s lengthy sales and installation cycle, construction, utility interconnection and other delays and cost overruns related to the installation of its Energy Servers; business and economic conditions and growth trends in commercial and industrial energy markets; global economic conditions and uncertainties in the geopolitical environment; overall electricity generation market; Bloom’s ability to protect its intellectual property; and other risks and uncertainties detailed in Bloom’s SEC filings from time to time. More information on potential factors that may impact Bloom’s business are set forth in Bloom’s periodic reports filed with the SEC, including its Quarterly Report on Form 10-Q for the quarter ended on June 30, 2021 as filed with the SEC on August 6, 2021, as well as subsequent reports filed with or furnished to the SEC from time to time. These reports are available on Bloom’s website at www.bloomenergy.com and the SEC’s website at www.sec.gov. Bloom assumes no obligation to, and does not currently intend to, update any such forward-looking statements.

The Investor Relations section of Bloom’s website at investor.bloomenergy.com contains a significant amount of information about Bloom Energy, including financial and other information for investors. Bloom encourages investors to visit this website from time to time, as information is updated and new information is posted.


Investor Relations:
Ed Vallejo
Bloom Energy
+1 (267) 370-9717
Edward.vallejo@bloomenergy.com
Media:
Jennifer Duffourg
Bloom Energy
+1 (480) 341-5464
jennifer.duffourg@bloomenergy.com


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Exhibit 99.1
Condensed Consolidated Balance Sheets (preliminary & unaudited) (in thousands)


September 30,December 31,


20212020
Assets
Current assets:
Cash and cash equivalents$121,861 $246,947 
Restricted cash65,315 52,470 
Accounts receivable62,066 96,186 
Contract asset27,745 3,327 
Inventories182,555 142,059 
Deferred cost of revenue33,759 41,469 
Customer financing receivable5,693 5,428 
Prepaid expenses and other current assets31,946 30,718 
Total current assets530,940 618,604 
Property, plant and equipment, net615,514 600,628 
Operating lease right-of-use assets70,055 35,621 
Customer financing receivable, non-current40,981 45,268 
Restricted cash, non-current132,725 117,293 
Deferred cost of revenue, non-current2,918 2,462 
Other long-term assets38,593 34,511 
Total assets$1,431,726 $1,454,387 
Liabilities, Redeemable Noncontrolling Interest, Stockholders’ (Deficit) Equity and Noncontrolling Interest
Current liabilities:
Accounts payable$101,908 $58,334 
Accrued warranty7,907 10,263 
Accrued expenses and other current liabilities85,877 112,004 
Deferred revenue and customer deposits81,894 114,286 
Operating lease liabilities6,206 7,899 
Financing obligations14,260 12,745 
Recourse debt6,034 — 
Non-recourse debt7,782 120,846 
Total current liabilities311,868 436,377 
Deferred revenue and customer deposits, non-current67,887 87,463 
Operating lease liabilities, non-current78,146 41,849 
Financing obligations, non-current456,315 459,981 
Recourse debt, non-current285,216 168,008 
Non-recourse debt, non-current205,164 102,045 
Other long-term liabilities26,755 17,268 
Total liabilities1,431,351 1,312,991 

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Exhibit 99.1


September 30,December 31,


20212020
Redeemable noncontrolling interest331 377 
Stockholders’ equity (deficit):
Common stock18 17 
Additional paid-in capital3,183,101 3,182,753 
Accumulated other comprehensive loss(278)(9)
Accumulated deficit(3,229,752)(3,103,937)
Total stockholders’ (deficit) equity(46,911)78,824 
Noncontrolling interest46,955 62,195 
Total liabilities, redeemable noncontrolling interest, stockholders' (deficit) equity and noncontrolling interest$1,431,726 $1,454,387 


















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Exhibit 99.1
Condensed Consolidated Statements of Operations (preliminary & unaudited) (in thousands, except per share data)
 Three Months Ended
September 30,
 20212020
 
Revenue:
Product$128,550 $131,076 
Installation22,172 26,603 
Service39,251 26,141 
Electricity17,255 16,485 
Total revenue207,228 200,305 
Cost of revenue:
Product93,704 72,037 
Installation25,616 27,872 
Service39,586 33,214 
Electricity11,439 11,195 
Total cost of revenue170,345 144,318 
Gross profit36,883 55,987 
Operating expenses:
Research and development27,634 19,231 
Sales and marketing20,124 11,700 
General and administrative33,014 25,428 
Total operating expenses80,772 56,359 
Loss from operations(43,889)(372)
Interest income72 254 
Interest expense(14,514)(19,902)
Interest expense - related parties— (353)
Other income (expense), net2,011 (221)
Gain on extinguishment of debt— 1,220 
(Loss) gain on revaluation of embedded derivatives(184)1,505 
Loss before income taxes(56,504)(17,869)
Income tax provision158 7 
Net loss(56,662)(17,876)
Less: Net loss attributable to noncontrolling interest and redeemable noncontrolling interest(4,292)(5,922)
Net loss to common stockholders$(52,370)$(11,954)
Net loss per share to common stockholders, basic and diluted$(0.30)$(0.09)
Weighted average shares used to compute net loss per share to common stockholders, basic and diluted174,269 138,964 

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Exhibit 99.1
Condensed Consolidated Statement of Cash Flows (preliminary & unaudited) (in thousands)
 Nine Months Ended
September 30,
 20212020
Cash flows from operating activities:
Net loss$(144,864)$(147,496)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization40,079 38,888 
Non-cash lease expense7,161 4,419 
Write-off of property, plant and equipment, net— 36
Impairment of equity method investment— 4,236 
Revaluation of derivative contracts486 (2,267)
Stock-based compensation expense57,309 57,385 
Gain on remeasurement of investment(1,966)— 
Loss on extinguishment of debt— 11,785 
Amortization of debt issuance costs and premium, net2,824 (195)
Changes in operating assets and liabilities:
Accounts receivable34,291 (4,058)
Contract assets(24,418)(8,596)
Inventories(39,953)(22,772)
Deferred cost of revenue7,307 1,562 
Customer financing receivable4,022 3,790 
Prepaid expenses and other current assets236(2,647)
Other long-term assets(374)(3,217)
Accounts payable37,973 8,704 
Accrued warranty(2,357)(525)
Accrued expenses and other current liabilities(26,178)4,932 
Operating lease right-of-use assets and operating lease liabilities(7,593)(4,467)
Deferred revenue and customer deposits(53,181)(15,658)
Other long-term liabilities1,289 (3,828)
Net cash used in operating activities(107,907)(79,989)
Cash flows from investing activities:
Purchase of property, plant and equipment(44,625)(33,066)
Net cash acquired from step acquisition3,114—
Net cash used in investing activities(41,511)(33,066)

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Exhibit 99.1
Nine Months Ended
September 30,
20212020
Cash flows from financing activities:
Proceeds from issuance of debt— 300,000 
Proceeds from issuance of debt to related parties— 30,000 
Repayment of debt(11,017)(92,546)
Repayment of debt - related parties— (2,105)
Debt issuance costs— (13,247)
Proceeds from financing obligations7,534 14,807 
Repayment of financing obligations(10,174)(7,828) 
Contribution from noncontrolling interest— 4,314 
Distributions to noncontrolling interests and redeemable noncontrolling interests(5,322)(6,103)
Proceeds from issuance of common stock72,109 12,745 
Net cash provided by financing activities53,130 240,037 
Effect of exchange rate changes on cash, cash equivalent and restricted cash(521)— 
Net (decrease) increase in cash, cash equivalents, and restricted cash(96,809)126,982 
Cash, cash equivalents, and restricted cash:
Beginning of period416,710 377,388 
End of period$319,901 $504,370 

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Exhibit 99.1
Reconciliation of GAAP to Non-GAAP Financial Measures (preliminary & unaudited) (in thousands)
Gross Profit and Gross Margin to Gross Profit Excluding Stock-Based Compensation and Gross Margin Excluding Stock-Based Compensation

Gross profit and gross margin excluding stock-based compensation (SBC) are supplemental measures of operating performance that do not represent and should not be considered alternatives to gross profit or gross margin, as determined under GAAP. These measures remove the impact of stock-based compensation. We believe that gross profit and gross margin excluding stock-based compensation supplement the GAAP measures and enable us to more effectively evaluate our performance period-over-period. A reconciliation of gross profit and gross margin excluding stock-based compensation to gross profit and gross margin, the most directly comparable GAAP measures, and the computation of gross margin excluding stock-based compensation are as follows:

Q321Q221Q320
Revenue207,228228,470200,305
Gross profit36,88337,34455,987
Gross margin %17.8%16.3%28.0%
Stock-based compensation - cost of revenue2,945 3,8043,568
Gross profit excluding SBC39,82841,14859,555
Gross margin excluding SBC %19.2%18.0%29.7%

Cost of Revenue and Operating Expenses to Cost of Revenue and Operating Expenses Excluding Stock-Based Compensation

Cost of revenue and operating expenses excluding stock-based compensation are a supplemental measure of operating performance that does not represent and should not be considered an alternative to cost of revenue and operating expenses, as determined under GAAP. This measure removes the impact of stock-based compensation. We believe that cost of revenue and operating expenses excluding stock-based compensation supplements the GAAP measure and enables us to more effectively evaluate our performance period-over-period. A reconciliation of cost of revenue and operating expenses excluding stock-based compensation to cost of revenue and operating expenses, the most directly comparable GAAP measure, are as follows:




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Exhibit 99.1
Q321Q221Q320
Cost of revenue170,345191,126144,318
Stock-based compensation - cost of revenue2,9453,8043,568
Cost of revenue – excluding SBC167,400187,322140,750

Q321Q221Q320
Operating expenses80,77280,05556,359
Stock-based compensation - operating expenses18,02115,32912,167
Operating expenses – excluding SBC62,75164,72644,192

Operating Loss to Operating Income (Loss) Excluding Stock-Based Compensation

Operating loss excluding stock-based compensation is a supplemental measure of operating performance that does not represent and should not be considered an alternative to operating loss, as determined under GAAP. This measure removes the impact of stock-based compensation. We believe that operating income (loss) excluding stock-based compensation supplements the GAAP measure and enables us to more effectively evaluate our performance period-over-period. A reconciliation of operating income (loss) excluding stock-based compensation to operating loss, the most directly comparable GAAP measure, and the computation of operating income (loss) excluding stock-based compensation are as follows:

Q321Q221Q320
Operating loss(43,889)(42,711)(372)
Stock-based compensation20,96619,13315,735
Operating Income (loss) excluding SBC(22,923)(23,578)15,363






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Exhibit 99.1

Net Loss to Adjusted Net Loss and Computation of Adjusted Net Loss per Share (EPS)
Adjusted net loss and adjusted net loss per share are supplemental measures of operating performance that do not represent and should not be considered alternatives to net loss and net loss per share, as determined under GAAP. These measures remove the impact of the non-controlling interests associated with our legacy PPA entities, the revaluation of derivatives, fair market value adjustment for the PPA derivatives, and stock-based compensation, all of which are non-cash charges. We believe that adjusted net loss and adjusted net loss per share supplement GAAP measures and enable us to more effectively evaluate our performance period-over-period. A reconciliation of adjusted net loss to net loss, the most directly comparable GAAP measure, and the computation of adjusted net loss per share are as follows:

Q321Q221Q320
Net loss to Common Stockholders(52,370)(53,863)(11,954)
Loss on extinguishment of debt——(1,220)
Loss for non-controlling interests1
(4,292)(4,558)(5,922)
Loss (gain) on derivatives liabilities2
184942(1,505)
Loss (gain) on the fair value adjustments for certain PPA derivatives3
(125)(735)(726)
Stock-based compensation20,96619,13315,735
Adjusted Net Loss(35,637)(39,081)(5,592)
Net loss to Common Stockholders per share$ (0.30)$ (0.31)$ (0.09)
Adjusted net loss per share (EPS)$ (0.20)$ (0.23)$ (0.04)
GAAP weighted average shares outstanding attributable to common, Basic and Diluted (thousands)174,269172,749138,964
Adjusted weighted average shares outstanding attributable to common, Basic and Diluted (thousands)4
174,269172,749138,964
1.Represents the profits and losses allocated to the non-controlling interests under the hypothetical liquidation at book value (HLBV) method
2.Represents the adjustments to the fair value of the embedded derivatives associated with the convertible notes and other derivatives
3.Represents the adjustments to the fair value of the derivative forward contract for one PPA entity (our Third PPA company), a wholly owned subsidiary
4.Includes adjustments to reflect assumed conversion of certain convertible promissory notes









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Exhibit 99.1

Net Loss to Adjusted EBITDA
Adjusted EBITDA is a non-GAAP supplemental measure of operating performance that does not represent and should not be considered an alternative to operating loss or cash flow from operations, as determined by GAAP. Adjusted EBITDA is defined as net income (loss) before interest expense, income tax expense, non-controlling interest, revaluations, stock-based compensation and depreciation and amortization expense. We use Adjusted EBITDA to measure the operating performance of our business, excluding specifically identified items that we do not believe directly reflect our core operations and may not be indicative of our recurring operations. Adjusted EBITDA may not be comparable to similarly titled measures provided by other companies due to potential differences in methods of calculations. A reconciliation of Adjusted EBITDA to net loss is as follows:
Q321Q221Q320
Net loss to Common Stockholders(52,370)(53,863)(11,954)
Loss on extinguishment of debt——(1,220)
Loss for non-controlling interests1
(4,292)(4,558)(5,922)
Loss (gain) on derivatives liabilities2
184942(1,505)
Loss (gain) on the fair value adjustments for certain PPA derivatives3
(125)(735)(726)
Stock-based compensation
20,96619,13315,735
Depreciation & amortization13,27113,36613,036
Provision (benefit) for income tax1583137
Interest expense (income), Other expense (income), net12,43114,45520,222
Adjusted EBITDA(9,777)(10,947)27,673
1.Represents the profits and losses allocated to the non-controlling interests under the hypothetical liquidation at book value (HLBV) method
2.Represents the adjustments to the fair value of the embedded derivatives associated with the convertible notes and other derivatives
3.Represents the adjustments to the fair value of the derivative forward contract for one PPA entity (our Third PPA company)


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