10-QPeriod: Q2 FY2019

Bloom Energy Corp Quarterly Report for Q2 Ended Jun 30, 2019

Filed August 14, 2019For Securities:BE

Summary

Bloom Energy Corporation's (BE) Q2 2019 filing shows a significant increase in total revenue, primarily driven by a 65.6% rise in product revenue due to higher unit sales and a slightly improved average selling price. This growth was supported by a 49.7% increase in product acceptances compared to the prior year's quarter, indicating successful market penetration and operational scaling. Despite revenue growth, the company reported a net loss of $67.2 million for the quarter, an increase from the previous year's net loss of $50.2 million, primarily due to substantial increases in operating expenses, particularly in Research & Development and Sales & Marketing, heavily influenced by increased stock-based compensation following the IPO. The company's cash position improved, with cash and cash equivalents increasing to $308 million from $220.7 million at the end of 2018, supported by IPO proceeds, though significant debt remains.

Financial Statements
Beta

Key Highlights

  • 1Total revenue increased by 38.4% year-over-year to $233.8 million, driven by a significant rise in product revenue.
  • 2Product acceptances increased by 49.7% year-over-year to 271 systems (in 100kW equivalents), demonstrating strong sales execution and demand.
  • 3Product costs per kilowatt accepted decreased by 12.6% year-over-year, reflecting ongoing cost reduction efforts and manufacturing efficiencies.
  • 4Installation costs per kilowatt accepted decreased significantly by 68.1% year-over-year, likely due to a higher mix of international installations where Bloom Energy does not incur installation costs.
  • 5Operating expenses more than doubled year-over-year, increasing by 141.4% to $91.8 million, largely due to a substantial increase in stock-based compensation expenses post-IPO.
  • 6Net loss widened to $67.2 million for the quarter, compared to a net loss of $50.2 million in the prior year's quarter, impacted by increased operating expenses.
  • 7The company reported $308.0 million in cash and cash equivalents as of June 30, 2019, an increase from $220.7 million at the end of 2018, providing a more comfortable liquidity position.

Frequently Asked Questions