10-QPeriod: Q1 FY2020

Bloom Energy Corp Quarterly Report for Q1 Ended Mar 31, 2020

Filed May 11, 2020For Securities:BE

Summary

Bloom Energy Corporation (BE) reported its first-quarter 2020 financial results, indicating a notable increase in total revenue driven by growth in product and installation revenues, despite a decrease in electricity revenue. The company's revenue grew by 6.6% year-over-year, reaching $156.7 million. This growth was primarily attributed to a 9.5% rise in product revenue and a significant 36.0% increase in installation revenue, signaling improved sales volume and project execution. Operationally, Bloom Energy made progress in reducing its cost of revenue, which decreased by 6.0% year-over-year. This reduction was largely due to lower stock-based compensation expenses and ongoing cost-reduction efforts in product manufacturing. Consequently, gross profit saw a substantial improvement, increasing by $18.4 million to $19.9 million, with the total gross margin expanding to 13% from 1% in the prior year period. Despite these operational improvements, the company reported a net loss of $81.6 million for the quarter, a slight improvement from the $108.8 million net loss in Q1 2019. The company also highlighted significant debt restructuring efforts undertaken in March 2020 to enhance its liquidity position, extending maturities and issuing new debt. Management expressed confidence that these measures, combined with existing cash, would be sufficient to meet operational and capital requirements for the next 12 months.

Financial Highlights

42 data points
Beta

Revenue

$156.70M

12.7% Gross Margin

Net Income

-$75.95M

-48.5% Net Margin

EPS (Diluted)

$-0.61

Total Assets

$1.31B

Cash & Equivalents

$180.31M

Free Cash Flow

-$40.31M

Financial Statements
Beta
Revenue$156.70M
Cost of Revenue$136.77M
Gross Profit$19.93M
R&D Expenses$23.28M
Operating Expenses$66.33M
Operating Income-$46.40M
Interest Expense$22.10M
Net Income-$75.95M
EPS (Basic)$-0.61
Shares Outstanding (Basic)123.76M

Key Highlights

  • 1Total revenue increased by 6.6% to $156.7 million in Q1 2020, compared to $147.0 million in Q1 2019.
  • 2Product revenue grew by 9.5% to $99.6 million, and installation revenue increased by 36.0% to $16.6 million.
  • 3Total cost of revenue decreased by 6.0% to $136.8 million, largely due to lower stock-based compensation and cost reduction efforts.
  • 4Gross profit improved significantly, reaching $19.9 million (13% gross margin) in Q1 2020, up from $1.6 million (1% gross margin) in Q1 2019.
  • 5Net loss narrowed to $81.6 million ($0.61 per share) in Q1 2020, from a net loss of $108.8 million ($0.94 per share) in Q1 2019.
  • 6Operating expenses decreased by 24.9% to $66.3 million, primarily driven by a substantial reduction in stock-based compensation expenses.
  • 7The company successfully restructured significant portions of its debt in March 2020 to extend maturities and improve liquidity, and expressed confidence in meeting its 12-month liquidity needs.

Frequently Asked Questions

Bloom Energy's total revenue for the first quarter of 2020 was $156.7 million, an increase of 6.6% compared to $147.0 million in the first quarter of 2019. This growth was primarily driven by increases in product and installation revenues.

Bloom Energy reported a net loss of $81.6 million ($0.61 per share) for Q1 2020, which is an improvement from the net loss of $108.8 million ($0.94 per share) reported in Q1 2019. The company also saw a significant improvement in gross profit to $19.9 million, with a gross margin of 13%, up from $1.6 million (1% gross margin) in the prior year quarter, reflecting successful cost reduction efforts.

The revenue increase was primarily driven by a 9.5% rise in product revenue to $99.6 million and a substantial 36.0% increase in installation revenue to $16.6 million. These increases were supported by a 8.9% rise in product acceptances.

Bloom Energy stated that it had $180.3 million in cash and cash equivalents as of March 31, 2020. The company highlighted that significant debt restructuring efforts completed in March 2020, including extending debt maturities and issuing new debt, along with existing cash, are expected to be sufficient to meet its operational and capital cash flow requirements for at least the next 12 months. However, the company also noted the ongoing uncertainty related to the COVID-19 pandemic's potential impact on future cash flow requirements and liquidity.

Yes, Bloom Energy restated its previously reported financial information as of and for the three months ended March 31, 2019, due to misstatements identified primarily related to its Managed Services Agreements and similar arrangements, as well as stock-based compensation accounting. These restatements impacted prior period financial results but did not change the current period's reported figures.