10-QPeriod: Q2 FY2024

Bloom Energy Corp Quarterly Report for Q2 Ended Jun 30, 2024

Filed August 8, 2024For Securities:BE

Summary

Bloom Energy Corporation (BE) reported its financial results for the second quarter and first six months of 2024. Total revenue for the three months ended June 30, 2024, increased by 11.5% year-over-year to $335.8 million, driven by strong growth in installation and service revenue. However, for the six-month period, total revenue saw a slight decrease of 0.9% to $571.1 million, primarily due to a decline in product and electricity revenue. The company continued to focus on operational efficiency, leading to a decrease in total operating expenses by 17.3% for the quarter and 21.9% for the six-month period, largely attributable to reduced employee compensation and benefits following restructuring efforts. Despite revenue growth in the quarter, the company reported a net loss of $61.2 million for the three months ended June 30, 2024, compared to a net loss of $69.1 million in the prior year period. For the six months ended June 30, 2024, the net loss widened to $117.7 million from $144.0 million in the prior year. Financially, Bloom Energy raised $389.7 million in net proceeds from the issuance of 3% Green Convertible Senior Notes due June 2029 and used a portion of these proceeds to repurchase $115 million of its 2.5% Green Convertible Senior Notes due August 2025. The company ended the period with $581.7 million in cash and cash equivalents. Management believes its current liquidity is sufficient for the next 12 months, though future funding needs may arise.

Financial Highlights

48 data points
Beta

Revenue

$335.77M

20.4% Gross Margin

Net Income

-$61.19M

-18.2% Net Margin

EPS (Diluted)

$-0.27

Total Assets

$2.55B

Cash & Equivalents

$581.68M

Free Cash Flow

-$187.51M

Financial Statements
Beta
Revenue$335.77M
Cost of Revenue$267.25M
Gross Profit$68.52M
R&D Expenses$37.36M
Operating Expenses$91.65M
Operating Income-$23.13M
Interest Expense$8.70M
Net Income-$61.19M
EPS (Basic)$-0.27
EPS (Diluted)$-0.27
Shares Outstanding (Basic)227.17M
Shares Outstanding (Diluted)227.17M

Key Highlights

  • 1Total revenue for Q2 2024 increased 11.5% year-over-year to $335.8 million, driven by strong installation and service revenue growth.
  • 2For the six-month period ended June 30, 2024, total revenue decreased slightly by 0.9% to $571.1 million, impacted by lower product and electricity revenue.
  • 3Operating expenses decreased significantly by 17.3% in Q2 and 21.9% for the six-month period, reflecting cost control measures and restructuring benefits.
  • 4Net loss for Q2 2024 was $61.2 million, an improvement from $69.1 million in Q2 2023. The six-month net loss was $117.7 million, also an improvement from $144.0 million in the prior year.
  • 5The company successfully raised approximately $389.7 million in net proceeds from issuing new convertible senior notes.
  • 6Bloom Energy repurchased $115 million of its outstanding 2.5% Green Convertible Senior Notes due August 2025.
  • 7The company ended the period with a healthy cash balance of $581.7 million and expects sufficient liquidity for the next 12 months.

Frequently Asked Questions

Bloom Energy's total revenue for the three months ended June 30, 2024, increased by 11.5% year-over-year to $335.8 million. This growth was primarily driven by significant increases in installation revenue (up 75.7%) and service revenue (up 24.2%). Product revenue saw a modest increase of 5.4%.

While Bloom Energy reported a net loss of $61.2 million for Q2 2024, this represents an improvement compared to the $69.1 million net loss in the same period last year. The company also reduced its net loss for the first six months of 2024 to $117.7 million from $144.0 million in the prior year. This indicates progress towards profitability, supported by revenue growth and significant reductions in operating expenses.

Bloom Energy strengthened its financial position by issuing $402.5 million in aggregate principal amount of 3% Green Convertible Senior Notes due June 2029, from which it received net proceeds of $389.7 million. The company also used a portion of these proceeds to repurchase $115 million of its 2.5% Green Convertible Senior Notes due August 2025. As of June 30, 2024, Bloom Energy held $581.7 million in cash and cash equivalents and believes its current liquidity is sufficient for the next 12 months.

Total operating expenses decreased substantially in both the second quarter (17.3%) and the first six months (21.9%) of 2024. This reduction was primarily due to lower employee compensation and benefits, a result of restructuring efforts undertaken in the second half of 2023, as well as decreased consulting, advisory, and other professional services costs.