Summary
Bloom Energy Corporation (BE) reported its first-quarter 2019 financial results, showing a significant year-over-year increase in total revenue, driven by a substantial rise in product acceptances. However, the company also experienced a substantial increase in operating expenses, particularly in research and development, sales and marketing, and general and administrative functions, largely due to increased stock-based compensation following its Initial Public Offering (IPO) and investments in future growth. The company's financial performance for the quarter reflects continued investment in its technology and market expansion. While revenue growth is a positive sign, the concurrent surge in operating expenses led to a wider net loss compared to the prior year period. Investors should note the company's ongoing efforts to reduce product costs and improve manufacturing efficiency, which are showing positive trends. Despite the current net loss, Bloom Energy's balance sheet remains adequately funded with cash and cash equivalents to support operations for the next 12 months. Key financial highlights include an increase in product acceptances by 41.6% year-over-year, alongside a decrease in product cost per kilowatt. However, installation costs per kilowatt have risen. The company is navigating a complex PPA (Power Purchase Agreement) financing landscape, with a significant portion of revenue coming from third-party PPAs. Investors will want to monitor the company's ability to manage its expanding operational costs while continuing to grow revenue and move towards profitability.
Financial Highlights
46 data points| Revenue | $147.00M |
| Cost of Revenue | $145.44M |
| Gross Profit | $1.56M |
| R&D Expenses | $28.86M |
| Operating Expenses | $88.31M |
| Operating Income | -$86.74M |
| Interest Expense | $21.80M |
| Net Income | -$104.92M |
| EPS (Basic) | $-0.94 |
| Shares Outstanding (Basic) | 111.84M |
Key Highlights
- 1Total revenue increased by 18.5% to $200.7 million in Q1 2019 compared to Q1 2018.
- 2Product acceptances (in 100 kilowatt systems) increased by 41.6% to 235 systems in Q1 2019 compared to Q1 2018.
- 3Product cost per kilowatt decreased by 16.8% to $3,206/kW in Q1 2019, reflecting cost reduction efforts.
- 4Total operating expenses increased significantly by 132.7% to $88.4 million in Q1 2019, heavily impacted by a substantial increase in stock-based compensation following the IPO.
- 5Net loss attributable to common stockholders widened to $84.4 million in Q1 2019 from $17.7 million in Q1 2018.
- 6Cash used in operating activities improved to $4.2 million in Q1 2019 from $34.5 million in Q1 2018.
- 7The company had $320.4 million in cash and cash equivalents as of March 31, 2019, which it believes is sufficient for at least the next 12 months.