BE Bloom Energy

Mark Mesler Vice President of Finance & Investor Relations
KR Sridhar Principal Co-founder & Chief Executive Officer
Randy Furr Chief Financial Officer.
Michael Weinstein Credit Suisse
Stephen Byrd Morgan Stanley
Pavel Molchanov Raymond James
Call transcript
Due to licensing restrictions, you must log in to view earnings call transcripts.

Good afternoon, and welcome to the Bloom Energy Third Quarter 2019 Earnings Call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder, this conference call is being recorded.

I would now like to turn the conference over to Mark Mesler, Vice President of Finance and Investor Relations at Bloom Energy. ahead. go Please

Mark Mesler

QX afternoon, along on Good relations call call. thank for we and reference file you supplement letter periodically and Thank the will supplemental with Energy's all, our financial third to website. us SEC our have we Bloom conference posted conference this earnings quarter joining investor release this shareholder it you. have call, and XXXX with XXXX throughout To that earnings information

discussing be and detail identify to will uncertainties that cause we include forward-looking today's statements. revise performance forward-looking most the the events matters The recent reports statements discuss materially statements in and on future regarding differ today We filed with to to SEC, on the Forms in of we in risk actual statements documents assume could important that XX-K the we results risks any financial specifically those future our made which are and contained the from company. obligation These forward-looking no factors call. XX-Q, subject

release with call, financial in financial our are non-GAAP measures. earnings in and letter, and to this During shareholder These our QX non-GAAP prepared not measures generally we refer in accordance XXXX GAAP QX addition shareholder accepted between financial our measures. a letter. as GAAP included to accounting A and are XXXX principles substitute and in of part reconciliation are and for GAAP non-GAAP is

then Sridhar, questions. Chief highlights Principal on financial review KR and quarter operating Officer; will KR take me Randy today the Financial Co-founder the are of will Furr, Officer. Randy Joining and and the call and Executive Chief we and

Randy will turn to call I now the over

Randy Furr

talk going be call earlier. that presentation mark slides the then financial the about Mark. and I'm my with to our balance Thanks, referring start for sheet. and prepared highlights I'll quarter referenced Throughout comments, to earnings

First will stock-based highlights, profit referenced numbers I exclude that that note all some compensation.

margin QX were this XX% XXX XXXX X% XXX QX, to on XX.X%, Acceptances XX% was $XXX.X another quarter. basis come respectable gross from slide XXXX's systems, Revenue So was sequentially. XXX million, up approximately very in up points up three. systems. Non-GAAP at and up In summary, from year-over-year.

Our with and the in $XXX.X cash EPS ended million, quarter Adjusted XX.X coming of million investments income non-GAAP million adjusted million. and $XX.X $X.XX we in at which with was term operating PPA short includes $XX.X was cash. consolidated EBITDA

we PPA and excluding So have short million cash, cash the term of $XXX.X investments.

The were Now and XX.X% up were in XX.X% color three four. Acceptances the sequentially. up XXX quarter Bloom. million to for some onto ended year-over-year and both and revenue for $XXX.X on slide two acceptances records

XX.X% revenue we year-over-year add range on The what Revenue this more ASP to was of virtually where mix the up growth. and is no for low I installed in being the quarter-over-quarter. revenues my color discussion. essentially in volume drove flat will flat acceptance had acceptances

in installations four Included in and systems acceptances total, of of centers, range new end of verticals existing different States. projects, and to In were scale in eight QX's the were were wide customers pharmaceutical healthcare, different markets. the and over majority universities, mix utility United both a retail. in spread customers XXX include beverage The data the geographic food and

Onto five. slide

installed a as a in we you well And of as QX system specific provided As estimates. estimates, estimates. provide range shareholder price letter, just our QX cost sales we do I quarterly average with range discussed, total of

$X,XXX price number our our in of or kilowatt, ASP at end per a at 'XX, estimated QX selling average come For range. a higher

at number in cost system below installed bottom of or a $X,XXX better came end the and our estimated TISC Total range.

installed. installation. the being whether our of the of site or location whether installation, work or the impacted the factors that on utility As international the includes and includes the and critical, outage by per to include larger scope a the the costs both the site kilowatt I relocation Typically, grid not and include site tariffs ASP the protection are in past, applicable lower size mentioned and number TISC basis business a is Generally, of not for mission installation. does

I level important again, the of once want So stress but to the or the between the Delta trend delta element not of acceptances represents The is the TISC, the ASP our the that trend the quarter. during the in two. unit profit

or of and or TISC yielded estimate $X,XXX midpoint of the ASP kilowatt. estimated delta X,XXX The margin a per

Driving combination on as per mix a installation a side our continued our by, actual see the costs. and favorable was of of delta number slide kilowatt, acceptances, this estimates. margin can you reductions of product $X,XXX was unusually As performance well end our and exceeding higher as

nicely were profit, stock six. from 'XX gross excluding of almost XX.X% XX.X%. XX.X%. basis. a profit compensation of in million million was fixed number the again, to slide stock both lower XX.X%, number of QX expenses in and operating On XX.X significantly was XX.X based this 'XX Operating XX% came in Non-GAAP based QX year-over-year QX at year. to estimates. up up was in at year's and last again compensation, Margin income QX for Gross above excludes increased Turning our a sequential basis, this XX.X, sequential end Gross QX on

EBITDA were quarter. come adjusted XX and expenses the Not at EPS operating one in set. plan reported was Our adjusted for million

ended about consolidated a of includes talk million seven. want quarter of total sheet short the investments. I million and to cash the We This cash. PPA slide XX.X XXX.X balance with term on of Now

included up from million by of cash, cash. XX about of XXX PPA cash is This QX. and QX, of is down restricted we with total from however million short million XXX.X is cash XXX.X This million XXX.X Bloom excluding So the investments. about term flat in ended K essentially

expected of cash increase to for this financing their with over by driver amount XXXX, The increase will of in limit. cash This off exchange our to their roll reduce June time is to starting a full this restricted partner and commitment increase reserve financing the July of committed XXXX.

a for debt from minority debt, make Of PPA XXX million to to to we sheet, $XXX again of That million approximately of in that, recourse comments. not million due the total year. leaves The of once million companies represents in the This are majority for is next due XXXX. responsible recourse but the couple $XXX representing debt, non on million Bloom principal is total Keeping $XXX it. investor debt, Bloom until December $XX a in debt, million fully Bloom. which total of of roughly not is XXX balance I'd and like turning in is vast remaining balance balance

the due is million So, on in next year. focus clearly approximate $XXX the December of

to to our existing are First in presently to have of a as cash our pay what with and a banking selected we the options. off, with the down of hired a discussions our are existing advisor, portion us with our portion firm we notes. this? an help we Jefferies use At respect high So, level, will of investment noteholders plans either and

Four, an a notes under refinance terms of the existing new but this will new for our portion of likely Think as or a off raise all for a existing portion of money we extension, of or all three. combination our do pay notes. and

than be here But is put the the Obviously, existing primary of with focused for no the so option raise way, accomplish refinance goal debt to best choosing least our here or another our on were will shareholders. later to We next first doing year. for this goal half amount of new our dilution.

days X, payable Referencing QX QX the days Days days. our were inventory was QX XX six and up days down sales two XX to XX from days days. outstanding from from by Slide of to XX to days was of days up

older comment a This consistently technology. that coming service especially our recent expect where of to fleet modernizing from make to cells fuel relative with we of some latest do losses in near-term our service P&L, of the said updating P&L. in process, service during our installed light like I'd normal press. our the our We've and we replace

we incurred XXXX, that an service Last year, loss In number $X of $X about million. million. was approximate

see full $X million and X in For in $X million Tiers X for service in service X and losses the service X expect to year, range year. this to year with profits losses this Tiers and we

Quarterly QX and by QX our was relatively doing certainly and customers. peak even QX appreciated avoid the to can a data did This higher which see holiday the by some into loss. retail ahead during driven We of winter time center fluctuations replacements or work may annual cell is this accelerating and occur. service season,

With customers. this We respect and contracts servers to service and our energy our can selling at contracts service and as by annually we P&L maintenance our operating sell these accounting, in to site, generally our addition to are renewed customers. to refer customer contracts the service ongoing installed

depends on cause contract or term, last revenue associated on radically several with a over recognized contracts estimate the treatment for the the with we XX we the contract, service of summary, profit incurred. we contracts years, the as loss months. cost generally expensed that If contract. the associated contract The the is again, then do service In whether which on profit estimate over is we've their the a signed all

since are estimated loss contract at the Again, XXXX of the executed of profitable. loss, the however, the all is the service beginning contracts contract expense If a have to time service signing we renewal. or

contracts. expect exceeds As that service install we've our the to previously, costs, we've to tracking contract revenue estimated support based or been XX-years communicated period over base that on of those the data service incur cost the service or we current the

relative costs technical can referring our of service the a note minutes. to be details couple to KR in Further in that be will found

KR business for over Now to update.

KR Sridhar

I to need of to generated there alone that Good this from delivered reliably combination years started because and basic accessible that anyone that ago, solutions should convinced day no a that to And all resiliently. is and company electricity let California. it be provide and make human everyone. could were I you affordable cleanly XX was

the reality. have grid for hurdles had Bloom to a XX as family weather we overcome. extended to worked The dream resiliency to a private we And and tirelessly make years many through that company shown

and later, the years on the resilient time safety. overall need XX impact consumers come and reliable understand when its their power Today, has for the

it. willing We to are now value

field Today, no to we in marketplace. compromise solution scale with the that proven have level that the in a and to battle product unmatched that the is ready is next unique and

they in the call. California Its and Let mind me last relate to start home earnings with since business. changed our how the state recent our has events our how energy landscape boggling of much

XX to outages. infrastructure we citizens suffered tragic prolonged as consequences health, and and evacuations fires, took have safety sympathies the are electricity the that repeat We the state power campfire economic and change. one This the our society is, vulnerable California how how of witnessed deepest of year a who with Paradise, climate express we anniversary unprepared to to of in have hardships due California, significant our lives. cope mark our fellow We as

massive the further quickly. despite safety The started their many off and basic shut wires shut not been emergency bar a solution people and public access has essential jeopardize Without electric safety. to which unable communication, spread to fire off power still satisfactory services due were

certainty and Consumers are reliability of increasingly power demanding availability.

So energy? does mean what this Bloom to

The Bloom right micro add is to the infrastructure. the Energy right grid now product to

Mciro in grid haven't unmatched is on matter customers micro clean the the no on long that power marketplace. outage. reliable always electricity, We utility always grid Bloom provide with how Grids

to A installed critical without Then is becomes specifically unreliable surrounding electric micro grid to interruption. operate communities businesses a unavailable. a is or facilities, and that grid local grid allow

operations. public in areas subject California Bloom shut micro once. in micro XX were XX has grids And are recent safety on off that those utilities bar of the grids to service the always

reliably repeat, for customers me campuses, let customers. data centers. of and all them, manufacturing performed corporate include them of our facility, All The

for are that grids consumers and alternative proven, and of to viable demand for reliability failing period the only time. readily certainty facilities, extended critical clean and available, micro grid field our businesses These the

Two extended examples blue to grid during valuable recent power how outage. illustrate business can an be micro the a

for In The ensured supports facility grid grid emergency for proximity the customer a facility multi-megawatt voluntarily the end off grid operate. of evacuated first is for In load safety the the the Use the shut the industrial first California. recent blue during early October, of an micro its the month, same from on unstable the its relied utility bloom off, and power. facility disconnected management micro shut micro the of blues wildfires, one the month, critical that the towards in grid, employees. of could

micro the As operation they grid They shut backups. off evacuated, sources power load. in including critical the support blue they kept to all

monitoring remote a in confidence with to operate could knew grid complete blue had instructions micro and with if customer micro They shut time Our the remote need autonomously. that Bloom arose. the grid control, real safely down

shift east Let's a to for second the coast example.

in from one northeast to them impacted grid stay the blue stores. in The related their power of multi stores interruptions, examples serve time stores XXst waves local in power. five allows days retailer open what heat century that of about these a their to real micro of large each the base area had During August, ranging first those solutions. Bloom’s and grid their five a the power are can communities These load businesses communities example, and need. Unlike megawatt during illustrate, expect XXX kilowatts in from

natural restricted sufficient of is and global address This the fundamental I shift of from coasts. see solution. is thinking a issue cost to power as a are with having not The what is is related what It's issues the cost a well opportunity, it, disaster resiliency this micro is our always big on grid in to the there power. two Bloom challenge just not

micro our grid be disruptions and natural grid on disasters worsen, are hardening and allow not manner. a occur power But the into solutions sustained the grids. aging, proven from for like investing own the micro not normal. their hands. interruptions of take in in that a reason, tailwind grid The to micro recent consumers grid solutions will their beginning a the and will trend timely A expect We and solution destiny power valuing new congested only by strong The based possible products. resiliency is to timely

our increase to grid the the California, to speaks, October the but when Our we month compared experienced northeast customers to from have around micro in in Nature areas more XXX% this of just September have in XXXX. disruption in than in of August grid to choice customers no same doubled, disruptions the year, the Mother grid listen. XXXX In

$X urgency “we've equipment, got recognized as We and these our to and harden first right ago of we've the have strategies do to the equipment, the new investments required time, distributed signals. State it. for the crises many It is months in are plan” note micro regulators modernize of to to the are officials and responding week, resiliency got now Governor, of willingness value important in part last sense sending something to and there market invest a need this Newsom with California networks. is a new to our grids, space of resiliency billion that said

Democratic dirtier, political pipeline. thinking, as that discuss quarter, viable come Last reliable related natural have less in regulators more last battle clear Island is term who New and leaders near in shifted Since represent to August, other and potential support oil only our we new It headwinds is have out call expensive. York realized option, gas the pipeline. of earnings the over their senators that all a of in the Long the they

otherwise, words, to moving gas, said, to of just demand safety lastly, the then, from have to the In environment. Cuomo and satisfy the off have Governor then without cannot gas, the sequencing disconnect “You And the renewables coordinate you compromising you other go oil”. you

including optimum both decarbonisation the people. and to and all related our policymakers resilience weather the we both balance, both are deal scale protect of We can of and climate causes change. planet consequences safety us, need the of with forcing large The so events with

no utility New options bill bill. In on and the costs York, portion had to has Customers over the last generation markets, California related distribution XX the of of have of the years, the dramatically distribution to such there transmission and they electricity for to have depending competitive the approximately risen XX% but XX% portions and hedge utility. transmission through option

costs for and corresponding rate Edison potential transmission to hour. California per increase X.X has account $X.X kilowatt and of XX% for number industrial distribution potentially both kilowatt for requested hour The the cents over these is increase. per customers. cases, In PG&E commercial XXXX cents Southern

predictable Energy clean producing In affordable power server contrast, electricity interest distribution customers are some, lock and in avoids electricity and the transmission Bloom that's on market costs. changes climate predictable. to on reliable, by these always and allows related driving In and site and forces for costs fixed

deployment. meet to rapidly those right. for the past mission years. XX the The time product is our been to have is product a Bloom’s Developing expand time now requirements And

understand carbon products uniquely Bloom of an forward reducing carbon capable technology is company, a innovative carbon from to importance free solution. Looking of emissions. of as platform a global moving we low the

We viable produce carbon deliver moving announced to are India. electricity with biogas, community to local additional scale to megawatts This fuel We dairy our local joint as daily to power in biogas with XXX estimated renewable and creates projects collaboration a deploy electricity a daily to zero of biogas waste There's recently income in alone. harness support. aggressively CalBio California enjoy electricity. onsite efforts farmers commercial for collaboration generate from economically vehicles. electric I’m power thrilled strong energy extremely an jobs, about

install producing four of year. Maharashtra, municipal in as Agricultural We operate of waste and the will Bloom plan and Energy be megawatts next state to used India the servers for biogas. feedstock

emissions it. renewable the to feedstock clean using opportunity. reduce to New a the week, capital with platform produced the shut leading banning to industry a and a to Samsung from and simply health contributor significant three air in the to rather millions worst can the large Heavy working schools declaring this bad Industry. roads. servers quality. the is very to than bring marine years, provide public of down is used They're industry air shipping India's to burning emergency, market recorded Just the energy quality our to be city residue In Delhi also Bloom its big by it partnership greenhouse This electricity future, new Crop vehicles that gas

it the if marine a megawatts in strong the would sixth largest shipping power. market ship customer up month, industry emissions to require large To Korea. a gas the the be we put Korean it are cargo single country, vary And our would emitter our of perspective, energy partnership for from of XXX in the In interest world. with SK greenhouse solution experiencing past of to

A doubts asked cell have number regarding and have the some been our expressed fuel module. of questions life of useful

We data. its and our We encourage clearly today. have findings technical released questions on you read shares addresses a It those website. the found It database field our research, totality. is with actual in to report support

additions announce Michael Energy Immelt Bloom I'm Board, to to important XX, effective In and conclusion, Jeff two November Boskin. pleased the

in Bush, Professor has at including and He on globally. Advisors both Stanford, George serves Mobil HW Boskin Economic Board of Council and for the Chairman the involved the served economist in is eminent corporate on Vodafone of serve economic President, the U.S. remains several policy an and of issues, and Exxon major continues Corporation. to Oracle boards,

Jeff to CEO of He insights deep and customers. has multiple He Immelt has years. markets into served Michael has as He cycles believes company to power strong for Bloom well the and global in privileged experienced and GE since had to Chairman knows XX and its connections and market exposure to both Bloom founding. I'm mission. Board. welcome our Jeff the thrilled and our

to now remarks will for XXXX. Randy I hand on Randy? this over his QX

Randy Furr

to acceptances kilowatt, $XX.X per we per be expect $X,XXX to be XXX. in between QX and costs expect $XX to $X,XXX conversation and expenses kilowatt. be operating our $X,XXX outlook, XXX Also, $X,XXX our to and we between million. between the be and and to ASPs million between installed Changing total system

Valley, to months. in level, XXXX, I year, it I'm to team last a here XX%, XX over comes industry remarks, period. is moved this I professional almost advanced profitability kilowatt cell today's In few has replacement all our from been to the five be non-GAAP on over this revenues in and feel nice product next I basis proud part at the announce year that by has gap technology, to the of roughly QX years have is which costs will I ball the over July, those have Silicon retiring when joined per grown and our operating of a turned a transitioning time. XXX%, XX losses very I declined of fuel plus progress when Energy, the it and at over XX Bloom career, with my over wanted QX we've working by after income to quarterly close To my prepared that the almost from significantly

XX% generation further However, the power server, a ahead. I I believe which will this is believe innings the platform of begin I next into the has that just commercial opportunities future. company Bloom. more providing firmly the output next year, because say reductions this initially the cost should for well Energy great shipments, for Bloom early have

events The California currently clarity only solution be the macro that finally, Bloom factors in such could are was I being carbon lowest power. And XX/X, greater five awareness based for strong to heightening as the the case, Public low wish future Safety younger. Shutoff I experienced for demand. providing and cost Power zero years

of the year. today, I'd all my colleagues So, turn opportunity. KR thank to we take again, like and of XX Bloom back KR thank my support before fellow you call for the I'd you to like questions. for Once over all on thank now to their will I

KR Sridhar

It a is Blown out help amazing how I including join vividly years of gone Randy convincing him public. the and take company to and quickly retirement five remember nascent by. have

public maximum Our was three of take to service me he years And of a goal in when joined. Randy promised XXXX. then Bloom

it with and of we last external public through Randy last will over stay has an process the year. taking amazing started company search five years, this us including build transition. job have help the with He done helping that and

want of the wonderful him deserved to he in at you and thank of Bloom. from conferences retirement. him will this Many wish speaking us thank him and investment I and person at see a you service for month Randy, will next. at all his be well

of generations than me cost years. better each let where far lower next created performing I In in see conclusion, and the previous company the three significantly the generation. one, product, Thus going four summarize

clean, kilowatt to has our development is low zero X.X product. carbon now time footprint. successfully track. this execute fifth is whose cranking And Blown that platform, $X.XX we electricity a per are hour under on resilient, We for We reliable, can and that with that flywheel deliver

No what I'm Bloom unique. our market reason, for do this products our future. is other service And the do. about extremely in can combination excited This

now We will to Q&A. move


And your of Suisse. from the question [Operator from line comes Instructions] Credit first Michael Weinstein

Michael Weinstein

and to guys. you're be going Randy, congratulation, miss. Hi,

Randy Furr

you, time. Mike. for you Thank Thank the

Michael Weinstein

Yeah. existed, Hey, got quarter that. now end the especially we so of fourth XXXX update XXX can maybe as we heading provide about perhaps and quarter the megawatt near you've fourth guidance of out year -- backlog there talk an could on as that the now, we

Randy Furr

Repeat that you Michael. time one backlog? more Are our about asking

Michael Weinstein

Yeah. Maybe California, you PPA this, an also to can the response backlog, had you update your been mentioned far out the question to shorter about what's changes approach is stand? on my sales launching how so talk does there. that and about that in to right now. the And where so Talk California product

Randy Furr

a backlog. we'll first the the a or file big stress to just do do it where of example the year once. see quarters box to with announcing we grow gain of in I’ll acceptances. once going often take it four at We’ll one, ahead all orders And policy the of of stick very just when the very, store backlog come on we're five K. over an We're We call. shipments lumpy. want the that'll I of

to next our a With keep to with just that. PPA pretenses KR let way other, So disclosure one call. you of any backlog. on to our respect that We'll stick we're the take shorter giving annual to in the refer – or as false one going do I’ll

KR Sridhar

KR. is this So. Hi,

in Is question? happening PPA given duplicate BS. you’re shorter the market the and the that asking with on what’s the question dynamics think I So,

Michael Weinstein


KR Sridhar


Okay. Great.

it's look, And what's like million it So, discussion entire way out almost of when has on were that. X another. million changes happened, we're event lost completely the unprecedented. one power, by what going or affected here. X.X just seeing It

two in question your answer me Let parts.

that's the is long long-term back, is term, what the just one is but not power. the it not that the it I people and take cost bring power, practical immediate for having the of term. mean does cost and one the around Okay, thing fundamental just you And the shifted, to If long term immediately. focusing first of then is the from the on mid-term,

resiliency. governor is, the a other is And resiliency. the regulated that, change for valued the the never and know, and from shift as seeing other tectonic And they big use. want you're put IO business you're hearing is rate for to design value speak policymakers you What

And should has the be reliability they important. that, This exactly what for we its be for do extremely because to and it's have resiliency, saying safety Bloom. valued is good extremely done, is for been product

the picture long as that. take our saying, well want want in we term we're hands, to think that's I So to that seeing you own customers our as about, destiny

So have in it's is roughly to want inbound new if these we prospects, you five we that a way, how very existing seeing tactical that it times are seeing whether what increase, see significant or normally have our seen, you're customers, about whether it's since inquiry events started happening.

now who parallel micro becomes grid in for asking micro grid typically extremely important. some coming and And that always solutions. have are cases customers on existing our we The been grid think

from also is coming the second the saving the the dynamic coming is from not And The if in from is of facilities, ask thing safety that just there it coming It about we're interest is business, the today you protecting seeing is suite. serving the why people keeping C about and for the lights their customers. C It suite? on the business. the it is

process electricity. by Is, a doesn’t terms for How transactions to translate? tens the all they So C have see suite Randy will run and through this and these of facilities when the we millions a expect of worth to it of said, in. we walk, of dollars shrink. what is compared cycle to coming as is happening just are in it

critical mission for business business. now. saving the is their This about It's

will is the to impact that process in shrink, will of will this our bookings. it be XXXX XXXX normal the cycle. revenue cycle And that be that Given we see what expect most of will all in so that the we

Michael Weinstein

And the XXXX. more one back the time servers note your that years from that in at question Got the length X.X goes of know, you. about it you they papers, last lifetime

X.X? generation do on see currently Now, where X.X years at you average, for expect to

KR Sridhar

greater. get able get will a speculate north? data enough that be the say to north going to, question. It of to that. It until How I'm enough until that to we be of not and without much lifetime on having will we be to

So for XXXX. the important. we X.X that And we that's mentioned in extremely the that is shipped servers

a of able through little to you Let me that. walk bit be time to take

If at shipped XXXX. age, is XXXX, that? years that Roughly, to XXXX referring that most those units whitepaper we life that you seen to referred in years the it technical right in a their by X.X now. at field. just we You look Anything as the still are the note we to, median why they're for the add have should past of units X.X

So trust have our seeing, don't you we're judgment. to

don't life expect as you much to data. judgment, going stay simply to expect we’re that you years, field than tell would X.X number. definitely don't the incrementally in years, on onwards even have to in field, some we soon the on greater, is for how we parties rely be years but lie. as and equipment This working data. as greater will I This You we five Equipment is have -- saying to five tuned, have X.X. go to it rely greater third XXXX confidence

extensive support data items. are why these That we be knowledge to the to in has to want proven being credibility extensive XXXX, to shows correct. able even supported we if are. can And life we the base, number, other timeframe, working to I make predicted point they of our field median have a are the is numbers that XXXX actual here say, what The field

Michael Weinstein

Okay. see… much. you Thank very I’ll

KR Sridhar

Thank you, Michael.


Morgan from Stanley. And the question Stephen Byrd of your next line from comes

Stephen Byrd

Good afternoon.

Randy Furr

Good afternoon, Stephen. How you? are

Stephen Byrd

and retirement you all help your provided… on congratulations thank Randy, you very for the much Good.

Randy Furr

for your Stephen. Thank Thanks time. you,

Stephen Byrd

build on to wanted Michael's I question. it. appreciate Really

Just outlook in of the broadly. terms sales

you guess of series KR, California. I the we've as walked down know, call, power through You since in had eloquently last shut to

You've announcements California industry, had shipping dairy the in the industry. in

think I potential some mentioned opportunities in you Korea. incremental

question little you would or But time XXXX. into that mind a detail? dynamics on about on mentioned of on dynamics translate of all rolled sales. just I a attention And translating just that thinking There's incremental this to actual of into the Michael’s and types takes in investment lot contracts, of it those guess touching in you of as I'm in cycle just opportunities, agreements the little actual more bit terms these a terms

KR Sridhar


way other following. or that electricity created flip And did come not safety, I not When is impact, that from dynamic have and life an ignore reliability you was in, headwind situations. is kind switch a So, I of can that that the reality can the that. and it you because Stephen, see that of now does about are every it tailwind a nobody real and these the that tell

days, did my okay. not in power I, four for almost house have

has Officer, have medical Chief his in device who Our house. did not Marketing power a

happen So these are that from and period. touches six it things real one in Californian this

customers our is What with The existing engaging with levels have customers is prospective is? us. And are we us, to urgency the this they're which before. at which the C It our something sense and with new means not of engaging us. seen Suite,

much Can shorter So, tell cycles I as is I you that right? more become? know, how answer would The I I see the no, can don't it become it, shorter. sales expect

It of multi-million or to purchase a whether that still dollar a committing is purchase. investments, or agreement they're kind numbers, they is that whether it capital make, lease it's whether a power whether is it

expect process, process but will we So a go be it through to fast. this

convert of the the That's months those normal to of an a bookings. mentioned few of think months to bookings impact think why acceptance. it. to bookings about months we that So see I And on our nine will happening XX and cycle

we XXXX, to showing We P&L be in that in of the early results XXXX. expect and up significant expect it our in XXXX,

this me California let Now, say alone. a not phenomena is just that

I the nor'easter. think

and the think we saw the in in happen northeast. the summer that I winter

biomass in global is the pollution heat -- preventing think tremendous government is making it to burning from its is heavily very thereby the that -- It the India, a that about conversion crop. people the phenomenon biogas,

that see this So, a we're to think I worldwide. is going phenomena

My I in It it give and is numbers. to convert back. hope a definitely sustained you I is one, a quickly be was you to. very numbers tailwind cannot tell I it's that going our but how fast good strong that wish, how could it'll and

Randy Furr

months to see as refer KR I pointed we time X to that, you're sense. XX to everyone Make to of just the the Randy as booking, Furr, remind revenue time out going for want it's the acceptance. as from

definitely X and maybe So half what kind cycle it's think year, us of even next saying see you're first in contracted put shorter. early the is to the bookings, call of X months. sale the probably still XXXX. That's of timeframe, month is, we you'll But kind X in which and

is installations, which international Korea Japan, is that, So the that's do order one India, It we to and to are be to point where that the quarter for done means partners less next. by booking whether that even exceptions in example, there. our business lot I theoretically it don't in the X can that There that same usually that re-emphasize just the that, to happens, acceptance want our in South out quarter, shipment months. occurs XX but occur than a shipment or for

-- that, that year the on growth know being range, depending over there point guidance last be we I for could upside flat year in orders upon -- to there gave international come our but is being that So call next be year. the could

So that. it at I'll leave

Stephen Byrd

helpful Thank agreement the very just shipping a you. that bloom. orders the or a in about for side, I'm view, guess really number point even mover of be though, secure guess, I to on needle reached of from the small That's on megawatt industry. shifts pretty can I a contract shipping required And thinking the quickly positive big you've timeframe color.

to ships, specific cycle think the briefly one that that just mind time talking of actually terms too you long of these lead construct relatively give and but I life in sort and Just would over with the particular, just to is in the a of of sign stand that? of just just sort you sort project we able where there relative required about the dream more up time time would which ship of be to to manufacture and agreements anyone

KR Sridhar

our tom UN and extremely put standards lot to to of short for So ships Organization that ships, carbon footprint, these carbon ship happen footprint that read the put that is, on and time why? period. a to buyers this things, know, topic stringent in opposite Samsung. reason that's smaller those have very you on a Maritime users And we has are these ships on talked want release well on end to this have extremely press the The from up about this under in our that best requirement. seeing has controls is we as understanding others in you be for the the has a that, demand wanting is spoken more as the that And internationally, requirement that of of -- particular high International from they're this the

ships And country floors is and that local any because installations to most be multiple globally. they this they to have travel And ship on going so believe a facilities, number to speak. it, it’s meet have set unlike and operators to the have to insisting the in standard,

moving all very towards. they're So quickly

So, is is what as TransAuto significant ready. we demand, they understand product as have a there from a soon

is first next go regulators, So they what already they the is is stage development. are have something with happening that now saying design Bloom can this as have conceptually step passed the to with of the conceived

-- and doing the the We certification. development, are we're doing development whole the

Stephen Byrd

demand that good have. to terms very few market in but happen And actual enormous that's in market. question, Stephen, years imagine us two your I being shift, of other it's year able two and as going terms the something of year alternative a with to given a to for it's a answer an options it's to out unique to capitalize timeframe, next being opposed shipbuilder would would acceptances so able

Stephen Byrd

Very you very much. Thank good.


gentlemen, and Pavel today's Raymond and from for comes last from your of call Molchanov question the James. Ladies line

Pavel Molchanov

Thanks for taking question. the

on Samsung may, agreement. I if one Another the

of your or entry at other options markets the transportation Are is end generation? into this sector. So kind looking first other you beyond distributed

Randy Furr

answer And following is way. yes. is a in yes answer the The

computers computing. about built thousands from not the not mainframe one And except they're with distributed event computers computers, Just distributed with single are servers computing, mainframe but to They've together. called built act these computing. think Cloud mainframe happened The as of monolith. are distributed what large they're that can

horizontally huge a what to is you vertically it but about together of structure idea Power space, an give good the this density, bunch that If XX is in of one to nothing is around amazing hundred feet means, very an density. a acre. bloom that And it can whole think one generation build you gives distributed Korea and Tower, megawatts you power if both That's we beauty a acre tall. do stacked

smokestacks. any easement because noise, need vibration, You space is there don't no pollution

our an continue we to it's talked this are I and availability we plant building have you for transition power mini hundred want to a that you plants, plants, a about the power cheaper micro need power you'll a going service, using XX plant to these monolithic building So that higher, and them. to than like we Because get power will believe scale will our will entire a significantly plants, cost if flywheel amount even significant of way that be will point, there and this gigawatt, places don't as servers is going to be be of beauty them plant, a be build high, these that as large megawatt reduction power MIDI efficiencies concentrated plant. large you down monoliths, take a -- have power unlike with power of is, power

what similar we will to computer did. So the cycle full come extremely industry

in that's So see future. going I us that's, the where

In as will so in next addition distributed power desktop and will be the the as central to be cloud well building same needs, will we thing, serving in both year we the the on your be plants. we

Pavel Molchanov

let in one again tax and credit of stepped because question ITC XXXX. ask the in industry. the pulling in down XXXX watching me about Okay, more the We're demand solar course

I, of curious of year may have that cells, some we am –either know, accelerate end bookings same if the the that or dynamic next with Given by you this either fuel your I year?

KR Sridhar

dynamic yet, an customer. a the sunset in Well, creating clearly for you similar elsewhere. its know, having as end And marketplace, ITC incentive the the create a will is

wind So And are prepared a company planning. know, as we we Harbor for the would models thing. that, solar Safe is industry expect in same you and construction the

We our are planning something for side to. on similar

that's So good question. a

Randy Furr

a And we're is a… on that leveraging with our customer out obviously to that base point savings there

KR Sridhar

rather than Book later. sooner

Pavel Molchanov

you. Thank Exactly.

Pavel Molchanov

you. Thank


today's gentlemen, concludes this Ladies and call.

now disconnect. may You