01—Abstract
Summary
Summary of the 10-K filed February 25, 2022. Cited figures are marked; the original filing is the authoritative source.
Bloom Energy Corporation (BE) reported a 22.4% increase in total revenue for the year ended December 31, 2021, reaching $972.2 milliona, primarily driven by a 41.7% rise in product acceptances and growth in service revenue.
The company achieved significant progress in cost reduction for its Energy Servers, with product costs per kilowatt decreasing by 2.1%. However, the company continues to operate at a net loss, with a net loss of $193.4 millionb in 2021. A key strategic development was the $255 million investment from SK ecoplant, strengthening the company's liquidity and partnership in the Korean market and the burgeoning hydrogen sector.
Bloom Energy is focused on expanding its product offerings, including its electrolyzer technology for hydrogen production, and managing supply chain challenges and rising material costs. Despite revenue growth, Bloom Energy's path to profitability remains a key focus for investors. The company's ability to scale its manufacturing, manage its long sales cycles, and navigate the evolving energy landscape, including government incentives and regulations, will be crucial for its future success.
The significant investment from SK ecoplant provides financial flexibility and strategic alignment, particularly in pursuing the hydrogen economy, which could be a significant future growth driver. Investors should monitor the company's progress in reducing costs and achieving profitability while managing its debt obligations and supply chain risks.
02—Key points
Key Highlights
- Total revenue increased by 22.4% to $972.2 million in 2021, driven by a 41.7% increase in product acceptances.
- Product costs per kilowatt decreased by 2.1% to $2,319/kW due to cost reduction efforts.
- SK ecoplant made a strategic investment of $255 million, acquiring 10 million shares of Series A redeemable convertible preferred stock.
- The company continued to invest heavily in R&D, increasing expenses by 23.7% to $103.4 million, focusing on hydrogen, electrolyzer, and carbon capture solutions.
- Sales and marketing expenses increased by 54.7% to $86.5 million, reflecting efforts to expand U.S. and international sales forces and brand management.
- Despite revenue growth, the company reported a net loss of $193.4 million for the year ended December 31, 2021.
- Supply chain disruptions and increased freight costs led to a 16.5% increase in period manufacturing expenses not included in product costs.
03—One dollar
Follow one dollar
For each $1.00 of revenue in FY2021, Bloom Energy Corp lost $0.17.
- Revenue$972.2M100.0%
- Cost of revenue−$774.6M79.7%
- Gross profit$197.6M20.3%
- Operating costs−$312.1M32.1%
- Operating income−$114.5M11.8%
- Interest, other & tax−$49.9M5.1%
- Net income−$164.4M16.9%
04—Financials
Financial Highlights
Figures from 10-KFY2021filed February 25, 2022Financial Statements
FY2021 against FY2020
| Line item | FY2021FY2020 | Change |
|---|---|---|
| Revenue | $972.18M$794.25M | +22.4% |
| Cost of Revenue | $774.60M$628.45M | +23.3% |
| Gross Profit | $197.58M$165.79M | +19.2% |
| R&D Expenses | $103.40M$83.58M | +23.7% |
| Operating Expenses | $312.08M$246.58M | +26.6% |
| Operating Income | -$114.50M-$80.78M | −41.7% |
| Interest Expense | $69.03M$78.80M | −12.4% |
| Net Income | -$164.44M-$157.55M | −4.4% |
| EPS (Basic) | $-0.95$-1.14 | +16.7% |
| EPS (Diluted) | $-0.95$-1.14 | +16.7% |
| Shares Outstanding (Basic) | 173.44M138.72M | +25.0% |
| Shares Outstanding (Diluted) | 173.44M138.72M | +25.0% |
05—Questions
Frequently Asked Questions
What was Bloom Energy's financial performance in 2021?
For the year ended December 31, 2021, Bloom Energy reported a total revenue of $972.2 million, a 22.4% increase from 2020, driven primarily by a 41.7% increase in product acceptances. The company's product costs per kilowatt decreased by 2.1% due to ongoing cost reduction efforts. However, Bloom Energy continued to incur net losses, reporting a net loss of $193.4 million for the year.
What are the key strategic developments for Bloom Energy?
A significant strategic development was the $255 million investment from SK ecoplant, which strengthened Bloom Energy's liquidity and established a strategic partnership. This partnership is expected to drive growth in existing markets and advance initiatives in the hydrogen sector, including the development of hydrogen innovation centers. The company also continues to invest in R&D for its electrolyzer and hydrogen technologies.
What are the main risks and challenges facing Bloom Energy?
Bloom Energy faces several risks, including a lengthy sales and installation cycle, significant upfront costs for its Energy Servers, and dependence on customer financing. The company also faces competition and potential changes in government incentives and regulations. Supply chain disruptions, increased material and labor costs, and the ongoing need to reduce its cost structure to achieve profitability are also key challenges.
How is Bloom Energy addressing supply chain and cost pressures?
Bloom Energy is actively managing supply chain disruptions by booking alternate sea routes, consolidating shipments, and working with suppliers to reduce costs through improved manufacturing technologies and economies of scale. The company also reported a decrease in product costs per kilowatt, indicating progress in its cost reduction initiatives despite some increased freight and supply chain-related pricing pressures.
06—Continue