10-QPeriod: Q3 FY2018

Bloom Energy Corp Quarterly Report for Q3 Ended Sep 30, 2018

Filed November 13, 2018For Securities:BE

Summary

Bloom Energy Corporation (BE) reported a significant increase in total revenue for the nine months ended September 30, 2018, reaching $528.4 million, a substantial jump from $252.7 million in the same period last year. This growth was primarily driven by a surge in product revenue, which more than doubled year-over-year, bolstered by a higher volume of product acceptances, a shift towards revenue recognition at acceptance, and the reinstatement of the Investment Tax Credit (ITC). Despite this top-line growth, the company continued to operate at a net loss. The net loss attributable to common stockholders widened in the nine months ended September 30, 2018, to $(141.97) million from $(194.84) million in the prior year, largely due to a significant increase in stock-based compensation expenses, particularly related to new Restricted Stock Unit (RSU) grants. The company's balance sheet shows a notable increase in cash and cash equivalents, rising from $103.8 million at the end of 2017 to $395.5 million by September 30, 2018. This improvement in liquidity is largely attributable to the net proceeds of $282.3 million from its initial public offering (IPO) in July 2018. While the IPO provided much-needed capital, the company still carries a substantial accumulated deficit of $2.5 billion, underscoring the ongoing need for careful financial management and strategic execution.

Financial Statements
Beta
Revenue$168.62M
Cost of Revenue$141.21M
Gross Profit$27.41M
R&D Expenses$27.02M
Operating Expenses$89.42M
Operating Income-$62.01M
Interest Expense$22.13M
Net Income-$80.50M
EPS (Basic)$-0.99
Shares Outstanding (Basic)81.32M
Shares Outstanding (Diluted)81.32M

Key Highlights

  • 1Total revenue for the nine months ended September 30, 2018, increased by 109.1% to $528.4 million, compared to $252.7 million in the same period of 2017.
  • 2Product revenue saw a substantial increase of 215.1% year-over-year, reaching $355.7 million for the nine months ended September 30, 2018.
  • 3The company successfully raised $282.3 million in net proceeds from its initial public offering (IPO) in July 2018, significantly bolstering its cash position.
  • 4Despite revenue growth, Bloom Energy continued to report a net loss. The net loss attributable to common stockholders was $(141.97) million for the nine months ended September 30, 2018.
  • 5Stock-based compensation expenses increased significantly, from $22.3 million in the first nine months of 2017 to $87.5 million in the same period of 2018, primarily due to new RSU grants.
  • 6Total operating expenses more than doubled year-over-year, from $99.9 million to $165.5 million for the nine months ended September 30, 2018.
  • 7Cash and cash equivalents increased substantially from $103.8 million at December 31, 2017, to $395.5 million at September 30, 2018, largely due to IPO proceeds.

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