10-QPeriod: Q1 FY2022

Bloom Energy Corp Quarterly Report for Q1 Ended Mar 31, 2022

Filed May 6, 2022For Securities:BE

Summary

Bloom Energy Corporation (BE) reported total revenue of $201.0 million for the first quarter of 2022, a 3.6% increase year-over-year, primarily driven by a significant rise in installation revenue. However, product revenue saw a slight decline, attributed to pricing strategies aimed at market expansion. The company's gross profit decreased substantially by 49%, mainly due to higher product costs stemming from increased freight and supply chain pressures, and a shift in installation mix. Operating expenses increased significantly, driven by investments in R&D and sales & marketing, leading to a wider net loss of $82.7 million compared to $29.8 million in the prior year quarter. While the company highlighted its strategic partnership with SK ecoplant and improved cash position, the increasing costs and net loss warrant close monitoring by investors.

Financial Highlights

47 data points
Beta

Revenue

$201.04M

13.9% Gross Margin

Net Income

-$78.36M

-39.0% Net Margin

EPS (Diluted)

$-0.44

Total Assets

$1.65B

Cash & Equivalents

$286.01M

Free Cash Flow

-$110.95M

Financial Statements
Beta
Revenue$201.04M
Cost of Revenue$173.10M
Gross Profit$27.94M
R&D Expenses$34.53M
Operating Expenses$93.60M
Operating Income-$65.66M
Interest Expense$14.10M
Net Income-$78.36M
EPS (Basic)$-0.44
EPS (Diluted)$-0.44
Shares Outstanding (Basic)177.19M
Shares Outstanding (Diluted)177.19M

Key Highlights

  • 1Total revenue increased by 3.6% to $201.0 million in Q1 2022, driven by installation and electricity revenue growth.
  • 2Product revenue decreased by 3.2% to $133.5 million, attributed to price reductions for market expansion.
  • 3Gross profit declined significantly by 49% to $27.9 million, with gross margin shrinking from 28% to 14% due to increased costs.
  • 4Operating expenses rose by 35.6% to $93.6 million, reflecting increased investment in R&D and sales & marketing.
  • 5Net loss widened to $82.7 million in Q1 2022, up from $29.8 million in Q1 2021.
  • 6Cash and cash equivalents decreased to $286.0 million from $396.0 million at the end of 2021, while net cash used in operating activities was $92.4 million.
  • 7The company continues to experience supply chain disruptions and inflationary pressures impacting costs.

Frequently Asked Questions

Revenue growth was primarily driven by a substantial increase in installation revenue, up 409.7%, and a 10.0% increase in electricity revenue. This was partially offset by a 3.2% decrease in product revenue and a 3.2% decrease in service revenue.

Gross profit decreased by 49% due to a significant increase in the cost of revenue, particularly for product and installation. This increase was driven by higher freight charges, supply chain-related pricing pressures, costs for capacity expansion, and a shift in the mix towards installations which carry higher per-kilowatt installation costs.

Bloom Energy ended the quarter with $286.0 million in cash and cash equivalents. However, the company used $92.4 million in cash from operating activities during Q1 2022. Management believes existing cash is sufficient for the next 12 months, but the company may require additional capital from equity or debt financings to fund future growth and operations.

The company continues to face supply chain disruptions due to COVID-19 impacts and geopolitical events, leading to increased costs for components, raw materials, and freight. Inflationary pressures are also impacting labor costs. These factors are increasing the cost of goods and could affect production and installation timelines.