Le Lézard
Classified in: Business, Covid-19 virus
Subjects: EARNINGS, Conference Call, Webcast

Bloom Energy Announces Second Quarter 2022 Financial Results


Bloom Energy Corporation (NYSE: BE) today announced financial results for its second quarter ended June 30, 2022.

Second Quarter Highlights

Commenting on second quarter results, KR Sridhar, founder, chairman, and CEO of Bloom Energy said, "Bloom Energy is continuing to innovate, execute and deliver value in a multitude of energy transformation market segments. In this ever-changing energy marketplace and policy environment, the flexibility of our platform is a unique advantage and strength that sets Bloom Energy apart in the energy industry."

Greg Cameron, executive vice president and CFO of Bloom Energy added, "We had a very strong operating quarter delivering record Q2 revenue, expanding our margins and building the manufacturing capacity to support our growth. We remain confident in our business and are reaffirming our 2022 financial guidance. With our solid record of accomplishments, we believe the company is at an inflection point to build upon our mature technology platform and achieve our robust growth roadmap given."

Summary of Key Financial Metrics

Preliminary Summary GAAP Profit and Loss Statements

($000)

Q222

Q122

Q221

Revenue

243,236

201,039

228,470

Cost of Revenue

245,206

173,102

191,126

Gross Profit (loss)

(1,970)

27,937

37,344

Gross Margin %

(0.8%)

13.9%

16.3%

Operating Expenses

100,203

93,596

80,055

Operating Loss

(102,173)

(65,659)

(42,711)

Operating Margin %

(42.0%)

(32.7%)

(18.7%)

Non-operating Expenses1

16,627

12,700

11,152

Net Loss

(118,800)

(78,359)

(53,863)

EPS

$ (0.67)

$ (0.44)

$ (0.31)

1. Includes non-operating expenses, tax provision, noncontrolling interest, and redeemable noncontrolling interest

Preliminary Summary Non-GAAP Financial Information1

($000)

Q222

Q122

Q221

Revenue

243,236

201,039

228,470

Cost of Revenue

195,639

169,242

187,322

Gross Profit

47,597

31,797

41,148

Gross Margin %

19.6%

15.8%

18.0%

Operating Expenses

72,223

71,148

64,726

Operating loss

(24,626)

(39,351)

(23,578)

Operating Margin %

(10.1%)

(19.6%)

(10.3%)

Adjusted EBITDA

(8,314)

(24,967)

(10,947)

EPS

$ (0.20)

$ (0.32)

$ (0.23)

  1. A detailed reconciliation of GAAP to Non-GAAP financial measures is provided at the end of this press release

Outlook

? Revenue:

$1.1 - $1.15 billion

? Product & Service Revenue:

$1 billion

? Non-GAAP Gross Margin:

~24%

? Non-GAAP Operating Margin:

~1%

? Cash Flow from Operations:

Positive

Acceptances

We use acceptances as a key operating metric to measure the volume of our completed Energy Server installation activity from period to period. Acceptance typically occurs upon transfer of control to our customers, which depending on the contract terms is when the system is shipped and delivered to our customers, when the system is shipped and delivered and is physically ready for startup and commissioning, or when the system is shipped and delivered and is turned on and producing power.

Conference Call Details

Bloom will host a conference call today, August 9, 2022, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) to discuss its financial results. To participate in the live call, analysts and investors may call +1 (844) 200-6205 and enter the passcode: 346737. Those calling from outside the United States may dial +1 (929) 526-1599 and enter the same passcode: 346737. A simultaneous live webcast will also be available under the Investor Relations section on our website at https://investor.bloomenergy.com/. Following the webcast, an archived version will be available on Bloom's website for one year. A telephonic replay of the conference call will be available for one week following the call, by dialing +1 (866) 813-9403 or + 44 204-525-0658 entering passcode 050636.

Use of Non-GAAP Financial Measures

This release includes certain non-GAAP financial measures as defined by the rules and regulations of the Securities and Exchange Commission (SEC). These non-GAAP financial measures are in addition to, and not a substitute for or superior to, measures of financial performance prepared in accordance with U.S. GAAP. There are a number of limitations related to the use of these non-GAAP financial measures versus their nearest GAAP equivalents. For example, other companies may calculate non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. Bloom urges you to review the reconciliations of its non-GAAP financial measures to the most directly comparable U.S. GAAP financial measures set forth in this press release, and not to rely on any single financial measure to evaluate our business. With respect to Bloom's expectations regarding its 2022 Outlook, Bloom is not able to provide a quantitative reconciliation of non-GAAP gross margin and non-GAAP operating margin measures to the corresponding GAAP measures without unreasonable efforts.

About Bloom Energy

Bloom Energy empowers businesses and communities to responsibly take charge of their energy. The company's leading solid oxide platform for distributed generation of electricity and hydrogen is changing the future of energy. Fortune 100 companies around the world turn to Bloom Energy as a trusted partner to deliver lower carbon energy today and a net-zero future. For more information, visit www.bloomenergy.com.

Forward-Looking Statements

This press release contains certain forward-looking statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "should," "will" and "would" or the negative of these words or similar terms or expressions that concern Bloom's expectations, strategy, priorities, plans or intentions. These forward-looking statements include, but are not limited to, Bloom's expectations regarding revenue growth, margin expansion and its innovative solutions; Bloom's expectations regarding its growth plans, including those regarding output from the Fremont facility, and Bloom's financial outlook for 2022. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results due to a variety of factors including, but not limited to, Bloom's limited operating history; the emerging nature of the distributed generation market and rapidly evolving market trends; the significant losses Bloom has incurred in the past; the significant upfront costs of Bloom's Energy Servers and Bloom's ability to secure financing for its products; Bloom's ability to drive cost reductions and to successfully mitigate against potential price increases; Bloom's ability to service its existing debt obligations; Bloom's ability to be successful in new markets; the ability of the Bloom Energy Server to operate on the fuel source a customer will want; the success of the strategic partnership with SK ecoplant in the United States and international markets; timing and development of an ecosystem for the hydrogen market, including in the South Korean market; continued incentives in the South Korean market; the timing and pace of adoption of hydrogen for stationary power; the risk of manufacturing defects; the accuracy of Bloom's estimates regarding the useful life of its Energy Servers; delays in the development and introduction of new products or updates to existing products; Bloom's ability to secure partners in order to commercialize its electrolyzer and carbon capture products; the impact of the COVID-19 pandemic on the global economy and its potential impact on Bloom's business; the availability of rebates, tax credits and other tax benefits; changes in the regulatory landscape; Bloom's reliance on tax equity financing arrangements; Bloom's reliance upon a limited number of customers; Bloom's lengthy sales and installation cycle, construction, utility interconnection and other delays and cost overruns related to the installation of its Energy Servers; business and economic conditions and growth trends in commercial and industrial energy markets; global macroeconomic conditions, including rising interest rates, recession fears and inflationary pressures, or geopolitical events or conflicts; overall electricity generation market; Bloom's ability to protect its intellectual property; and other risks and uncertainties detailed in Bloom's SEC filings from time to time. More information on potential factors that may impact Bloom's business are set forth in Bloom's periodic reports filed with the SEC, including our Quarterly Report on Form 10-Q for the quarter ended March 31, 2022 as filed with the SEC on May 6, 2022, as well as subsequent reports filed with or furnished to the SEC from time to time. These reports are available on Bloom's website at www.bloomenergy.com and the SEC's website at www.sec.gov. Bloom assumes no obligation to, and does not currently intend to, update any such forward-looking statements.

The Investor Relations section of Bloom's website at investor.bloomenergy.com contains a significant amount of information about Bloom Energy, including financial and other information for investors. Bloom encourages investors to visit this website from time to time, as information is updated and new information is posted.

Condensed Consolidated Balance Sheets (preliminary & unaudited)

(in thousands)

 

 

June 30,

 

December 31,

 

 

2022

 

2021

Assets

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

235,638

 

 

$

396,035

 

Restricted cash

 

 

50,293

 

 

 

92,540

 

Accounts receivable

 

 

77,972

 

 

 

87,789

 

Contract assets

 

 

33,374

 

 

 

25,201

 

Inventories

 

 

206,707

 

 

 

143,370

 

Deferred cost of revenue

 

 

30,110

 

 

 

25,040

 

Customer financing receivable

 

 

?

 

 

 

5,784

 

Prepaid expenses and other current assets

 

 

35,155

 

 

 

30,661

 

Total current assets

 

 

669,249

 

 

 

806,420

 

Property, plant and equipment, net

 

 

628,759

 

 

 

604,106

 

Operating lease right-of-use assets

 

 

110,362

 

 

 

106,660

 

Customer financing receivable

 

 

?

 

 

 

39,484

 

Restricted cash

 

 

128,248

 

 

 

126,539

 

Deferred cost of revenue

 

 

5,310

 

 

 

1,289

 

Other long-term assets

 

 

38,905

 

 

 

41,073

 

Total assets

 

$

1,580,833

 

 

$

1,725,571

 

Liabilities, redeemable convertible preferred stock, redeemable noncontrolling interest and stockholders' deficit

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

134,020

 

 

$

72,967

 

Accrued warranty

 

 

9,319

 

 

 

11,746

 

Accrued expenses and other current liabilities

 

 

101,204

 

 

 

114,138

 

Deferred revenue and customer deposits

 

 

93,237

 

 

 

89,975

 

Operating lease liabilities

 

 

12,581

 

 

 

13,101

 

Financing obligations

 

 

16,159

 

 

 

14,721

 

Recourse debt

 

 

12,434

 

 

 

8,348

 

Non-recourse debt

 

 

14,734

 

 

 

17,483

 

Total current liabilities

 

 

393,688

 

 

 

342,479

 

Deferred revenue and customer deposits

 

 

76,890

 

 

 

90,310

 

Operating lease liabilities

 

 

118,291

 

 

 

106,187

 

Financing obligations

 

 

447,595

 

 

 

461,900

 

Recourse debt

 

 

278,538

 

 

 

283,483

 

Non-recourse debt

 

 

183,555

 

 

 

217,416

 

Other long-term liabilities

 

 

18,646

 

 

 

16,772

 

Total liabilities

 

 

1,517,203

 

 

 

1,518,547

 

Redeemable convertible preferred stock

 

 

208,551

 

 

 

208,551

 

Redeemable noncontrolling interest

 

 

?

 

 

 

300

 

Stockholders' deficit:

 

 

 

 

Common stock

 

 

18

 

 

 

18

 

Additional paid-in capital

 

 

3,284,261

 

 

 

3,219,081

 

Accumulated other comprehensive loss

 

 

(1,000

)

 

 

(350

)

Accumulated deficit

 

 

(3,460,234

)

 

 

(3,263,075

)

Total deficit attributable to Class A and Class B common stockholders

 

 

(176,955

)

 

 

(44,326

)

Noncontrolling interest

 

 

32,034

 

 

 

42,499

 

Total stockholders' deficit

 

$

(144,921

)

 

$

(1,827

)

Total liabilities, redeemable convertible preferred stock, redeemable noncontrolling interest and stockholders' deficit

 

$

1,580,833

 

 

$

1,725,571

 

Condensed Consolidated Statements of Operations (preliminary & unaudited)

(in thousands, except per share data)

 

 

Three Months Ended

June 30,

 

 

2022

 

2021

 

 

 

 

 

Revenue:

 

 

 

 

Product

 

$

173,625

 

 

$

146,867

 

Installation

 

 

12,729

 

 

 

28,879

 

Service

 

 

38,426

 

 

 

35,707

 

Electricity

 

 

18,456

 

 

 

17,017

 

Total revenue

 

 

243,236

 

 

 

228,470

 

Cost of revenue:

 

 

 

 

Product

 

 

129,419

 

 

 

108,891

 

Installation

 

 

16,730

 

 

 

36,515

 

Service

 

 

41,028

 

 

 

35,565

 

Electricity

 

 

58,029

 

 

 

10,155

 

Total cost of revenue

 

 

245,206

 

 

 

191,126

 

Gross (loss) profit

 

 

(1,970

)

 

 

37,344

 

Operating expenses:

 

 

 

 

Research and development

 

 

41,614

 

 

 

25,673

 

Sales and marketing

 

 

20,475

 

 

 

22,727

 

General and administrative

 

 

38,114

 

 

 

31,655

 

Total operating expenses

 

 

100,203

 

 

 

80,055

 

Loss from operations

 

 

(102,173

)

 

 

(42,711

)

Interest income

 

 

196

 

 

 

76

 

Interest expense

 

 

(13,814

)

 

 

(14,553

)

Loss on extinguishment of debt

 

 

(4,233

)

 

 

?

 

Other (expense) income, net

 

 

(1,191

)

 

 

22

 

Gain (loss) on revaluation of embedded derivatives

 

 

38

 

 

 

(942

)

Loss before income taxes

 

 

(121,177

)

 

 

(58,108

)

Income tax (benefit) provision

 

 

(12

)

 

 

313

 

Net loss

 

 

(121,165

)

 

 

(58,421

)

Less: Net loss attributable to noncontrolling interest

 

 

(2,365

)

 

 

(4,536

)

Net loss attributable to Class A and Class B common stockholders

 

$

(118,800

)

 

$

(53,885

)

Less: Net loss attributable to redeemable noncontrolling interest

 

 

?

 

 

 

(22

)

Net loss before portion attributable to redeemable noncontrolling interest and noncontrolling interest

 

$

(118,800

)

 

$

(53,863

)

Net loss per share available to Class A and Class B common stockholders, basic and diluted

 

$

(0.67

)

 

$

(0.31

)

Weighted average shares used to compute net loss per share available to Class A and Class B common stockholders, basic and diluted

 

 

178,507

 

 

 

172,749

 

Condensed Consolidated Statement of Cash Flows (preliminary & unaudited)

(in thousands)

 

 

Six Months Ended

June 30,

 

 

2022

 

2021

Cash flows from operating activities:

 

 

 

 

Net loss

 

$

(203,912

)

 

$

(88,202

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

Depreciation and amortization

 

 

30,697

 

 

 

26,808

 

Non-cash lease expense

 

 

8,800

 

 

 

4,520

 

Gain on sale of property, plant and equipment

 

 

(523

)

 

 

?

 

Write-off of assets related to PPA IIIa

 

 

44,800

 

 

 

?

 

Revaluation of derivative liabilities

 

 

1,680

 

 

 

462

 

Stock-based compensation

 

 

57,774

 

 

 

36,343

 

Loss on extinguishment of debt

 

 

4,233

 

 

 

?

 

Amortization of warrants and debt issuance costs

 

 

1,651

 

 

 

1,900

 

Other

 

 

3,487

 

 

 

?

 

Changes in operating assets and liabilities:

 

 

 

 

Accounts receivable

 

 

9,817

 

 

 

41,718

 

Contract assets

 

 

(8,173

)

 

 

(15,311

)

Inventories

 

 

(62,824

)

 

 

(21,026

)

Deferred cost of revenue

 

 

(8,995

)

 

 

4,984

 

Customer financing receivable

 

 

2,510

 

 

 

2,636

 

Prepaid expenses and other assets

 

 

(5,813

)

 

 

6,246

 

Operating lease right-of-use assets and operating lease liabilities

 

 

2,422

 

 

 

(5,140

)

Finance lease liabilities

 

 

48

 

 

 

?

 

Accounts payable

 

 

51,982

 

 

 

29,449

 

Accrued expenses and other liabilities

 

 

(18,017

)

 

 

(17,261

)

Deferred revenue and customer deposits

 

 

(10,158

)

 

 

(43,428

)

Net cash used in operating activities

 

 

(98,514

)

 

 

(35,302

)

Cash flows from investing activities:

 

 

 

 

Purchase of property, plant and equipment

 

 

(44,728

)

 

 

(34,460

)

Net cash used in investing activities

 

 

(44,728

)

 

 

(34,460

)

Cash flows from financing activities:

 

 

 

 

Repayment of debt of PPA IIIa

 

 

(30,212

)

 

 

?

 

Repayment of debt

 

 

(10,729

)

 

 

(7,838

)

Debt make-whole payment related to PPA IIIa debt

 

 

(2,413

)

 

 

?

 

Proceeds from financing obligations

 

 

?

 

 

 

7,123

 

Repayment of financing obligations

 

 

(16,475

)

 

 

(6,387

)

Distributions to redeemable noncontrolling interests

 

 

?

 

 

 

(17

)

Distributions to noncontrolling interests

 

 

(4,415

)

 

 

(4,745

)

Proceeds from issuance of common stock

 

 

5,981

 

 

 

65,668

 

Proceeds from exercise of options

 

 

1,317

 

 

 

?

 

Net cash (used in) provided by financing activities

 

 

(56,946

)

 

 

53,804

 

Effect of exchange rate changes on cash, cash equivalent and restricted cash

 

 

(747

)

 

 

(224

)

Net decrease in cash, cash equivalents and restricted cash

 

 

(200,935

)

 

 

(16,182

)

Cash, cash equivalents and restricted cash:

 

 

 

 

Beginning of period

 

 

615,114

 

 

 

416,710

 

End of period

 

$

414,179

 

 

$

400,528

 

Reconciliation of GAAP to Non-GAAP Financial Measures (preliminary & unaudited) (in thousands, except percentages)

 

Q222

 

Q122

 

Q221

GAAP revenue

243,236

 

201,039

 

228,470

GAAP cost of sales

245,206

 

173,102

 

191,126

GAAP gross profit (loss)

(1,970)

 

27,937

 

37,344

Non-GAAP adjustments:

 

 

 

 

 

Stock-based compensation expense

4,767

 

3,860

 

3,804

PPA IIIa repowering impairment charge

44,800

 

-

 

-

Non-GAAP gross profit

47,597

 

31,797

 

41,148

 

 

 

 

 

 

GAAP gross margin %

(0.8%)

 

13.9%

 

16.3%

Non-GAAP adjustments

20.4%

 

1.9%

 

1.7%

Non-GAAP gross margin %

19.6%

 

15.8%

 

18.0%

 

Q222

 

Q122

 

Q221

GAAP loss from operations

(102,173)

 

(65,659)

 

(42,711)

Non-GAAP adjustments:

 

 

 

 

 

Stock-based compensation expense

32,599

 

26,308

 

19,133

PPA IIIa repowering impairment charge

44,800

 

-

 

-

Amortization of acquired intangible assets

148

 

-

 

-

Non-GAAP loss from operations

(24,626)

 

(39,351)

 

(23,578)

 

 

 

 

 

 

GAAP operating margin %

(42.0%)

 

(32.7%)

 

(18.7%)

Non-GAAP adjustments

31.9%

 

13.1%

 

8.4%

Non-GAAP operating margin %

(10.1%)

 

(19.6%)

 

(10.3%)

GAAP Net Loss to non-GAAP Net Loss and Computation of non-GAAP Net Loss per Share (EPS) (preliminary & unaudited) (in thousands)

 

Q222

 

Diluted net
earnings per
share

 

Q122

 

Diluted net
earnings per
share

 

Q221

 

Diluted net
earnings per
share

GAAP net loss

(118,800)

 

$ (0.67)

 

(78,359)

 

$ (0.44)

 

(53,863)

 

$ (0.31)

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

 

 

 

Loss for non-controlling interests and redeemable noncontrolling interest

(2,365)

 

(0.01)

 

(4,388)

 

(0.02)

 

(4,558)

 

(0.03)

Loss (gain) on derivatives liabilities

(38)

 

(0.00)

 

(531)

 

(0.00)

 

942

 

0.01

Gain on the fair value adjustments for certain PPA derivatives

-

 

-

 

-

 

-

 

(735)

 

(0.00)

Goodwill impairment

1,957

 

0.01

 

-

 

-

 

-

 

-

Loss on JV investment

1,446

 

0.01

 

-

 

-

 

-

 

-

PPA IIIa repowering impairment charge

44,800

 

0.25

 

-

 

-

 

-

 

-

Loss on extinguishment of debt related to PPA IIIa

4,233

 

0.02

 

-

 

-

 

-

 

-

Amortization of acquired intangible assets

148

 

0.00

 

-

 

-

 

-

 

-

Stock-based compensation expense

32,599

 

0.18

 

26,308

 

0.15

 

19,133

 

0.11

Non-GAAP net loss

(36,020)

 

$ (0.20)

 

(56,970)

 

$ (0.32)

 

(39,081)

 

$ (0.23)

 

 

 

Q122

 

Q122

 

Q121

Numerator:

 

 

 

 

 

 

GAAP net loss

 

(118,800)

 

(78,359)

 

(53,863)

Non-GAAP net loss

 

(36,020)

 

(56,970)

 

(39,081)

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

Weighted-average shares used to compute basic net earnings per share

 

178,507

 

177,189

 

172,749

Weighted-average shares used to compute diluted net earnings per share

 

178,507

 

177,189

 

172,749

 

 

 

 

 

 

 

GAAP net earnings per share

 

 

 

 

 

 

Basic

 

$ (0.67)

 

$ (0.44)

 

$ (0.31)

Diluted

 

$ (0.67)

 

$ (0.44)

 

$ (0.31)

 

 

 

 

 

 

 

Non-GAAP net earnings per share

 

 

 

 

 

 

Basic

 

$ (0.20)

 

$ (0.32)

 

$ (0.23)

Diluted

 

$ (0.20)

 

$ (0.32)

 

$ (0.23)

GAAP Net Loss to Adjusted EBITDA reconciliation (preliminary & unaudited) (in thousands)

 

Q222

 

Q122

 

Q221

GAAP net loss

(118,800)

 

(78,359)

 

(53,863)

Non-GAAP adjustments:

 

 

 

 

 

Loss for non-controlling interests and redeemable noncontrolling interest

(2,365)

 

(4,388)

 

(4,558)

Loss (gain) on derivatives liabilities

(38)

 

(531)

 

942

Gain on the fair value adjustments for certain PPA derivatives

-

 

-

 

(735)

Goodwill impairment

1,957

 

-

 

-

Stock-based compensation expense

32,599

 

26,308

 

19,133

Depreciation & Amortization

16,461

 

14,384

 

13,366

Provision (benefit) for Income Tax

(12)

 

564

 

313

Loss on China JV investment

1,446

 

-

 

-

Loss on extinguishment of debt related to PPA IIIa repowering

4,233

 

-

 

-

PPA IIIa repowering impairment charge

44,800

 

-

 

-

Interest Expense / Other Misc

11,405

 

17,055

 

14,455

Adjusted EBITDA

(8,314)

 

(24,967)

 

(10,947)

Use of non-GAAP financial measures

To supplement Bloom Energy condensed consolidated financial statement information presented on GAAP basis, Bloom Energy provides financial measures including non-GAAP gross profit (loss), non-GAAP gross margin, non-GAAP operating profit (loss), (non-GAAP earnings from operations), non-GAAP operating profit (loss) margin, non-GAAP net earnings, non-GAAP basic, diluted net earnings per share and Adjusted EBITDA. Bloom Energy also provides forecasts of non-GAAP gross profit margin and non-GAAP operating profit (loss) margin.

These non-GAAP financial measures are not computed in accordance with, or as an alternative to, GAAP in the United States.

Reconciliations of each of these non-GAAP financial measures to GAAP information are included in the tables above or elsewhere in the materials accompanying this news release.

Use and economic substance of non-GAAP financial measures used by Bloom Energy

Non-GAAP gross profit (loss) and non-GAAP gross margin are defined to exclude charges relating to stock-based compensation expense and PPA IIIa repowering related impairment charge. Non-GAAP operating profit (loss) (non-GAAP earnings from operations) and non-GAAP operating margin are defined to exclude any charges relating to stock-based compensation expense, PPA IIIa repowering related impairment charge and the amortization of acquired intangible assets. Non-GAAP net earnings and non-GAAP diluted net earnings per share consist of net earnings or diluted net earnings per share excluding stock-based compensation, loss for non-controlling interest, loss (gain) on derivatives liabilities, loss (gain) on the fair value adjustments for certain PPA derivatives, goodwill impairment, loss on China JV investment, PPA IIIa repowering related impairment charge, loss on extinguishment of debt related to PPA IIIa repowering and the amortization of acquired intangible assets. Adjusted EBITDA is defined as net income (loss) before interest expense, income tax expense, depreciation and amortization expense, stock-based compensation, loss for non-controlling interest, loss (gain) on derivatives liabilities, loss (gain) on the fair value adjustments for certain PPA derivatives, goodwill impairment, loss on China JV investment, PPA IIIa repowering related impairment charge, loss on extinguishment of debt related to PPA IIIa repowering.

Bloom Energy management uses these non-GAAP financial measures for purposes of evaluating Bloom Energy historical and prospective financial performance, as well as Bloom Energy performance relative to its competitors. Bloom Energy believes that excluding the items mentioned above from these non-GAAP financial measures allows Bloom Energy management to better understand Bloom Energy consolidated financial performance as management does not believe that the excluded items are reflective of ongoing operating results. More specifically, Bloom Energy management excludes each of those items mentioned above for the following reasons:

Material limitations associated with use of non-GAAP financial measures

These non-GAAP financial measures have limitations as analytical tools, and these measures should not be considered in isolation or as a substitute for analysis of Bloom Energy results as reported under GAAP. Some of the limitations in relying on these non-GAAP financial measures are:

Compensation for limitations associated with use of non-GAAP financial measures

Bloom Energy compensates for the limitations on its use of non-GAAP financial measures by relying primarily on its GAAP results and using non-GAAP financial measures only as a supplement. Bloom Energy also provides a reconciliation of each non-GAAP financial measure to its most directly comparable GAAP measure within this news release and in other written materials that include these non-GAAP financial measures, and Bloom Energy encourages investors to review those reconciliations carefully.

Usefulness of non-GAAP financial measures to investors

Bloom Energy believes that providing financial measures including non-GAAP gross profit (loss), non-GAAP gross margin, non-GAAP operating profit (non-GAAP earnings from operations), non-GAAP operating profit (loss) margin, non-GAAP net earnings, non-GAAP diluted net earnings per share in addition to the related GAAP measures provides investors with greater transparency to the information used by Bloom Energy management in its financial and operational decision making and allows investors to see Bloom Energy results "through the eyes" of management. Bloom Energy further believes that providing this information better enables Bloom Energy investors to understand Bloom Energy operating performance and to evaluate the efficacy of the methodology and information used by Bloom Energy management to evaluate and measure such performance. Disclosure of these non-GAAP financial measures also facilitates comparisons of Bloom Energy operating performance with the performance of other companies in Bloom Energy industry that supplement their GAAP results with non-GAAP financial measures that may be calculated in a similar manner.


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News published on 9 august 2022 at 16:05 and distributed by: