10-QPeriod: Q2 FY2021

Bloom Energy Corp Quarterly Report for Q2 Ended Jun 30, 2021

Filed August 6, 2021For Securities:BE

Summary

Bloom Energy Corporation (BE) reported its second-quarter results for 2021, showing a significant increase in total revenue, driven primarily by strong growth in product and service revenue. The company saw a 21.6% increase in total revenue year-over-year, reaching $228.47 million, with product revenue up 26.4% and service revenue up 36.2%. This top-line growth was accompanied by an improved gross profit, which more than doubled compared to the prior year's quarter, reaching $37.34 million, leading to a gross margin of 16.3%, up from 14% in the prior year. Despite these improvements, the company continues to operate at a net loss, reporting a net loss attributable to common stockholders of $53.86 million for the quarter, a slight increase from the prior year's loss of $42.51 million. This was influenced by increased operating expenses, particularly in sales and marketing, as the company invests in expanding its sales force and market reach. The company highlighted increased product acceptances by 41.5% year-over-year, indicating strong demand and successful market penetration. Cost reduction efforts in product manufacturing also contributed to improved product gross margins. While the company faces ongoing challenges related to supply chain disruptions and the COVID-19 pandemic, it is actively working to mitigate these impacts. Management believes its current cash position is sufficient for the next 12 months, but the company may seek additional capital for future growth and expansion. Investors should monitor the company's ability to manage its operating expenses, achieve profitability, and secure necessary financing for future growth initiatives.

Financial Statements
Beta
Revenue$228.47M
Cost of Revenue$191.13M
Gross Profit$37.34M
R&D Expenses$25.67M
Operating Expenses$80.06M
Operating Income-$42.71M
Interest Expense$14.55M
Net Income-$53.88M
EPS (Basic)$-0.31
EPS (Diluted)$-0.31
Shares Outstanding (Basic)172.75M
Shares Outstanding (Diluted)172.75M

Key Highlights

  • 1Total revenue increased by 21.6% year-over-year to $228.47 million, driven by product and service revenue growth.
  • 2Product revenue saw a substantial increase of 26.4% to $146.87 million.
  • 3Service revenue grew by 36.2% to $35.71 million, reflecting increased fleet size and contract renewals.
  • 4Gross profit more than doubled to $37.34 million, with gross margin improving to 16.3% from 14% in the prior year.
  • 5Product acceptances increased by 41.5% year-over-year, indicating strong demand.
  • 6Operating expenses increased significantly, up 43.6% year-over-year, primarily due to investments in sales and marketing and R&D.
  • 7The company reported a net loss attributable to common stockholders of $53.86 million for the quarter, a slight increase from $42.51 million in the prior year.

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