Summary
Bloom Energy Corporation (BE) reported its financial results for the third quarter and nine months ended September 30, 2021. The company experienced an increase in total revenue, driven primarily by strong growth in its service revenue and a rebound in product revenue compared to the prior year's pandemic-affected period. However, installation revenue saw a decline, influenced by site mix and the timing of final installations. Despite revenue growth, the company continued to operate at a loss, with an increased operating expense base due to investments in research and development and sales and marketing to support future growth initiatives. The company also highlighted a significant strategic investment from SK ecoplant, signaling a potential boost in liquidity and partnership opportunities. From an investor's perspective, the key takeaways are the top-line revenue growth, particularly in services, indicating expanding recurring revenue streams. The increased operating expenses, while a drag on profitability, are investments in future growth, which is a common theme for companies in expansionary phases. The strategic investment from SK ecoplant is a significant positive development, providing capital and potential market access. However, the persistent net loss and increasing costs (especially in product cost of revenue due to supply chain pressures) remain key concerns that investors will monitor closely.
Financial Highlights
48 data points| Revenue | $207.23M |
| Cost of Revenue | $170.34M |
| Gross Profit | $36.88M |
| R&D Expenses | $27.63M |
| Operating Expenses | $80.77M |
| Operating Income | -$43.89M |
| Interest Expense | $14.51M |
| Net Income | -$52.35M |
| EPS (Basic) | $-0.30 |
| EPS (Diluted) | $-0.30 |
| Shares Outstanding (Basic) | 174.27M |
| Shares Outstanding (Diluted) | 174.27M |
Key Highlights
- 1Total revenue increased by 3.5% to $207.2 million for the three months ended September 30, 2021, and by 15.6% to $629.7 million for the nine months ended September 30, 2021, compared to the prior year periods.
- 2Service revenue saw significant growth, increasing by 50.2% for the three months and 43.7% for the nine months ended September 30, 2021, reflecting an expanding installed base and renewed service contracts.
- 3Product revenue decreased slightly year-over-year for the three months ended September 30, 2021, but increased significantly for the nine months, with acceptances growing by 12.4% and 30.6% respectively.
- 4Operating expenses increased substantially, up 43.3% for the quarter and 28.8% for the nine months, driven by investments in R&D, sales, and marketing to support future growth.
- 5The company reported a net loss attributable to common stockholders of $52.4 million for the three months ended September 30, 2021, and $131.1 million for the nine months ended September 30, 2021.
- 6Bloom Energy secured a strategic investment of approximately $255 million from SK ecoplant, which is expected to close in the fourth quarter of 2021, strengthening its liquidity.
- 7Product costs of revenue increased significantly, up 30.1% for the quarter and 27.3% for the nine months, largely due to higher freight charges and supply chain pressures.