01—Abstract
Summary
Summary of the 10-Q filed August 8, 2024. Cited figures are marked; the original filing is the authoritative source.
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 milliona, 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 millionb 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 millionc in cash and cash equivalents. Management believes its current liquidity is sufficient for the next 12 months, though future funding needs may arise.
02—Key points
Key Highlights
- Total revenue for Q2 2024 increased 11.5% year-over-year to $335.8 million, driven by strong installation and service revenue growth.
- For 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.
- Operating expenses decreased significantly by 17.3% in Q2 and 21.9% for the six-month period, reflecting cost control measures and restructuring benefits.
- Net 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.
- The company successfully raised approximately $389.7 million in net proceeds from issuing new convertible senior notes.
- Bloom Energy repurchased $115 million of its outstanding 2.5% Green Convertible Senior Notes due August 2025.
- The company ended the period with a healthy cash balance of $581.7 million and expects sufficient liquidity for the next 12 months.
03—One dollar
Follow one dollar
For each $1.00 of revenue in Q2 FY2024, Bloom Energy Corp lost $0.18.
- Revenue$335.8M100.0%
- Cost of revenue−$267.2M79.6%
- Gross profit$68.5M20.4%
- Operating costs−$91.7M27.3%
- Operating income−$23.1M6.9%
- Interest, other & tax−$38.1M11.3%
- Net income−$61.2M18.2%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2024filed August 8, 2024Financial Statements
Q2 FY2024 against Q2 FY2023
| Line item | Q2 FY2024Q2 FY2023 | Change |
|---|---|---|
| Revenue | $335.77M$301.10M | +11.5% |
| Cost of Revenue | $267.25M$244.75M | +9.2% |
| Gross Profit | $68.52M$56.35M | +21.6% |
| R&D Expenses | $37.36M$41.49M | −10.0% |
| Operating Expenses | $91.65M$110.81M | −17.3% |
| Operating Income | -$23.13M-$54.46M | +57.5% |
| Interest Expense | $8.70M$13.95M | −37.6% |
| Net Income | -$61.19M-$69.06M | +11.4% |
| EPS (Basic) | $-0.27$-0.32 | +15.6% |
| EPS (Diluted) | $-0.27$-0.32 | +15.6% |
| Shares Outstanding (Basic) | 227.17M208.69M | +8.9% |
| Shares Outstanding (Diluted) | 227.17M208.69M | +8.9% |
05—Questions
Frequently Asked Questions
How did Bloom Energy's revenue perform in Q2 2024 compared to the previous year?
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%.
What is the company's profitability outlook based on the Q2 2024 results?
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.
How has the company managed its debt and liquidity?
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.
What were the main drivers behind the decrease in operating expenses?
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.
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