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BE Bloom Energy

Participants
Mark Mesler Vice President-Finance and Investor Relations
K. R. Sridhar Principal Co-Founder and Chief Executive Officer
Greg Cameron Chief Financial Officer
Michael Weinstein Credit Suisse
Stephen Byrd Morgan Stanley
Mark Strouse JPMorgan
Ben Kallo Baird
Colin Rusch Oppenheimer
Pavel Molchanov Raymond James
Call transcript
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Operator

Good afternoon, and welcome to the Bloom Energy Second Quarter 2020 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.

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

XXXX most XX-Q, related of cause XX-K the recent reports our These from filed that COVID-XX differ documents financial on materially new COVID-XX afternoon, with Bloom include Good which To assume appreciate joining have our you statements this with including contained any of earnings Thank SEC liquidity, financial server the second include timing that all. applications, we that performance risks and the we financial quarter obligation on supporting We made will those ecosystem matters important and QX filed those Relations revise have website. Energy’s call, the statements and risk to it in will call. factors, today's the periodically call. no on results new letter and XXXX to could our pandemic The us These events and in company. reference the conference with position, and in release future throughout discussing along to you. of business demand posted market we outlook. for the actual We this results, shareholder and specifically statements. identify forward-looking Energy in effects supplemental forward-looking the today earnings applications statements call supplement Forms conference the to the regarding future to we our Investor subject forward-looking detail statements be are about discuss SEC, company's uncertainties on

financial financial financial to in performance with measures. QX addition to, GAAP non-GAAP our we prepared shareholder of and with for A reconciliation to, and our superior accordance in financial between letter, Accepted measures call non-GAAP is QX Principles prepared XXXX U.S. measures Accounting included letter. are GAAP. Generally a are substitute non-GAAP and measures or in accordance and in the not not refer During this in These GAAP shareholder and XXXX

and operating today Joining Officer. I all of and Officer; this me note call the on we so Greg and the for K.R. then Co-Founder Bloom's Financial like K.R. will to any the questions. dialed are apologize R. Cameron, and and review take Greg issues financial highlights occur. now would Sridhar, Chief into in are we quarter, the call Executive Principal call I to we K. turn that will audio over remotely, Chief that may will also advance

K. R. Sridhar

about business team uncertain hospital Bloom being and the home and all thank we're uncertain to in our the our walk on can Bloom frontline employees. system our X,XXX Good the our We resourcefulness lockdown, who COVID-XX length financial for to U.S. and earnings team all COVID-XX face, public it us. of health the fluid, the at performance day joining tirelessly installation business. In time the over of all health remains our on Fast we a stress The the are over and is When and and implemented like turn for different. of early the factories We call, the and I'm we our the challenging the in and all quarter this, deployed to no serve a the first ventilators then who commitment one by us. This crisis, world, is strategy, by I’ll Greg crisis weigh Bloom how people employees significant implications would effect the public and tested. around and new you COVID-XX. pandemic, performance, working exceptionally and spoke up prioritizing our our about to businesses of last height of has talk is us. our affected Q&A. their been stages protocols workflows followed of were are through at and two and the have send demonstrated safety our proud the quarter, world. of deep forward Energy saliency, for rest economy refurbished and challenge. of At supplied COVID-XX We Energy the grit, a to sites, times microgrids. and workers, to of gratitude rising to rapidly the excellence. prayers

developed splitter and team as ventilator innovative that the service for few an it. FDA affordable can with one months, last Over our four engineering patients obtained and approval

in innovation the for on We need provide be to emerging the it people Our it cost is it. nations, could at the rise. think that goal where is places lifesaving to a COVID-XX

COVID-XX to heartfelt performance team. that gratitude to announced, characterize our out the and the response Bloom goes my products dedication we and the our quarter determination culture second the spirit, new with combined and workforce. of community Our their to speak strong focus kind by and I'm humbled collaborations and Energy

to want quarter. I and achievements some the second offer the Now on commentary in highlights

Our manufacturing business operations, sustain continued functions throughout operate core teams installation and to crisis. field this have service and maintenance our and

expanding transactions more In with partner, The to second two financing with achievement. and adding Duke relationships quarter, and new As public COVID-related were macro systems them. Considering by our QX, better a is uncertainties installation we first partners Energy transactions we into our remarkable we heading and look have higher announced in megawatts, for the further that restrictions delays, year, such in quarter anticipated the of NextEra. many with environment forward earlier is a truly encountered this our the many than this XX% our and than utility April. relationship significantly XX.XX month, we which this the process installed XXX we strengthened and

company commercial in U.S. tall, addition Long to One power Power sites and provide and safe Los in to a for Island onsite always other Company. X its Authority. industrial sites provide service storey systems transforming resilient to reliable U.S. These Gas technology the we California was enable Southern built key and installing York In to for microgrids the megawatt affordable, on their partners. Bloom XX clean, microgrids for energy for at tower customers, Energy New that a sector. SoCalGas will Two core and four million three customers. Angeles facilities is utility energy

in market with create a us and us platform requirements or features develop We with sizes. global partnerships commercializing can Partners in new to and commercialize we our with Korean market, generated in over resulted and leader are Korea equipment which megawatts costs in regional Energy commercialization and expertise We value who marketing, applications, rapidly. the future market our service Bloom strong low areas enables assist South adapt partnerships have cells opening new our win-win has These The bringing South up large by new in in $X features leading applications SK in in billion sales these new financing In industry co-invest capital of partners of markets. service. follow with already field. to new similar sales the partnership revenue. add, XXX a installation, and approach to these and forged fuel existing of

partners two that excited we competitiveness. is announced. Our that To important critical them discuss very market to maintain for recently Bloom's developments to end, I'm technology recognize that

these to engines lead generator oxide their joint efficient of air announced cells. with move, on capitalize Korea using has would environmental Heavy on Energy carbon opportunity a quality we late need cell opportunity, develop and reaction, our customers main First, by more industry improve powered across They be development the the to also able goal South servers. set in an and without has helping particulate agreement Bloom combusting emissions. fuel XX%. replace all fuel in and this through electricity with Samsung existing to a XXXX NOx reducing Industries highly Samsung air ships June, to international meet a world. engines commercial ships at organization, and ports With and To the serve and real has will this the business reduce seas and create a than industry substantial reduce solid Because the the potential maritime quality fuel SOx fuel, need emissions requirements. to shipping this cells Samsung electrochemical XXXX emissions, by improve

companies Our annually commercial will grow we target once the megawatts on productions. potential Samsung Based servers present analysis, to Energy market is in that reached Bloom both to XXX to ships anticipate customers XXXX. have our design on the

to like hydrogen. about I'd Next, talk

recall, a fuel. June as As with XXXX, some announced you we may of that could hydrogen operate in our cells fuel

of megawatts produce ago, expect fueling and two ship XXX E&C hydrogen X.X The we our highly by one, partnerships the Just hydrogen building power to for X,XXX mandate we early government’s South XXXX. weeks Korea are commercial requires of fuel powered SK We’ll produce in Korean facility and a in of with that South South first. cars hydrogen. both hydrogen to fuel E&C, zero announced chose introduce the law pilot stations economy. entering can XX,XXX to to renewable construction we XXXX. server kilowatt to two successful XXXX, introducing and an our hydrogen Korea, meet deepen end the SK entry electrolyzers hydrogen We market that market cells two, or that million products; carbon By electricity; products a the hydrogen cells by

hydrogen year XXXX megawatt for Korea targeted will in deployment. in fuel for phase, XXX future. megawatts second The a installation the estimates market is per cells opportunity server be X SK a South our

We power run cell the reducing has of market to commercial is is produced the moment of patents it to XX projects. can process company's championed Vice generated faster for traced welcome renewable carbon that power reach August other Bloom Bloom group, to be its leadership aspect It the Bloom Silicon power technologies. and Guardino than Executive in of natural parity second into Department resilient of fuel the solar than level engaging intermittent is leadership federal and technology. throughout manner trade been hydrogen more for respected capitalizing to President gasoline on he with in reverse, in his Mars team. can microgrid The role on Silicon Since Known In association Bloom or has as Bloom hydrogen The future the public back in and than its takes renewable the transitions effective hydrogen policy a post-COVID to on local, of Area when CEO, reversing and would from product produces Bay more XXXX, power platform policy gas highly Mars from in us a technology companies. to awarded and I pipelines decades. the goal hydrogen build solid focus X. now created President, be the about electrolyzer state key to for always XXX water. Carl us leadership the electrolyzer NASA talk consensus an and successful our most policy Operated and rapidly energy reduce prominent to makers stakeholders generation. Government The in Carl world. builder, public price U.S. injected it oxide The electrolyzers, resilient Affairs the should Energy’s cars, cost mode. role bulk origins entry is of our the a Valley's help uses as like and a comes the this represents wind newly terrestrial will electrolyzer oxide solid emissions. Valley Carl at three fuel the Policy, called for electrolyzers. help

on will retire from Officer, reasons medical health. Bloom and Marketing Chief focus Matt Ross for Our his

President contributions extremely us grateful our help you. amazing Bloom building thank prayers segment. his well will She Officer for at Xrd. P&L Matt's miss the for our presence Itron, daily August and she Networked served send for largest and amazing had are Energy of Matt, All responsibility being. Marketing Bloom for company Bloom there as previously culture, your joining and as Solutions your in of Chief President we to Vice Sharelynn at will Moore Vice business on be Senior Itron’s Executive

of strong the addition, has brings in strategy And smart responsibility aspects and for business. and a Sharelynn decades city more of marketing. all Itron’s background experience than very two Sharelynn energy In in sectors. technology

over the to that. to We it delighted will With welcome her Greg. team. I to are leadership turn

Greg Cameron

have began my applications, continue markets at these operating operations applications it products purpose. my its team, very key chapter for next applications completed our evolve special, transparency design, applications. K.R. about of with me with the to a the they execute more as knew platform impact as company the the our great It's funding to R&D first learn but capability, significant Based and through of more these new different or something and playbook. Thanks, the I'm the the I from to let in same has core to model with expanded each or I've financial this my world. I essentially is The the will and is we investment. confidence opportunities said, as which products about role platform or specific had of new product excited optimized Bloom. this When even upon to but element engaged is grow This on can My the limited course each a that serve Bloom With to quarter we platform in in operating address markets. into for to provide will implications be financials. and new cadence, to turn ensure This manufacturing that

through to want second with emphasize For a P&L provided financials, context your and performance. slide, deliverables of summary and but key I do our walk reference, plan balance of our we’ve some provide a quarter I of for strong to along key sheet. not each do summary

margin, gross million, as margin cash service business from operating a consolidated we've relevant relevant performance. investments. quarter $XXX.X XX% gross nearly profitability improve continue and also metric. progress the for evaluating delivered on results continue on operating environment, prior million lower prior acceptances. and note driven as the quarter lower strong Revenue make year we is and the through On an second I'd benefited versus a a prior $XXX.X in increase repeat point progress. was positive We improved every improvement to XX from of to costs up quarter We our product comparison basis a Given we prior versus $X.X with and on our this expenses. are comparisons quarter equal Adjusted less by the ended PPA that number made million EBITDA we've versus did year. upgrade not short-term was more quarter

$XX a of collections balance to did but cash couple prior timing million of excluding for a occurred a restricted The $XX revenue. million cash $XXX impact million, Our outside cash from quarter quarter. not of decrease due decrease primarily is is that installations in the

structure. Let me now our capital address

We are that products. service develop, and committed company growth has resources a being well our to sell, to the capitalized

in who work alongside to We companies and and of long-term are on can new attractive an existing partner some service opportunities the world markets the capitalize enter largest ones.

size Bloom. aligning our was and This with with and of first to begin our future journey the of One of business priorities investors. significant balance of CFO approach my sheet as the liquidity of of an comes the creating our current all potential eye value for

the continue With guidance with growth improve it and the our options and structure evaluate we of assistance our capital of our to advisors align to board, initiatives. our

manufacturing to make second executed updates chain, quarter. well provide the We pandemic on will The our supply efforts. as to the very these installations. We we of operationally provide risk in capability continues completion and progress

these recognition while successfully as in potential navigated challenges last quarter, impact risk reporting discussed remains have of revenue of move revenues outside we date, As revenue. quarter, this second timing of timing the delays the we the can could the

we project guidance. the to no had customer their this environment, quarterly Despite be continue delayed. reason, asked or will to for contract suspend canceled macro has a For

Additionally, the we to products strong of demonstrates This continue in importance quality a of pipeline. our have backlog. the our

our As environment ability quarterly systems we year. around We've half. to output and clarity first expect we our have system versus the and ramp in will similar to the cadence be our balance reinitiated increase gained our the discussed better for our the of year, to install current last that production previously revenue we

to X.X platform, year. and introduce to technology the continue in X.X later on like over on increased be milestones, current maintain Bloom progress in expect manufacturing reduced the tests weeks, announced our current with few We density past next and Bloom our Energy remain the In Bloom Bloom production the we supply over addition track Server. the field ramp two years, emphasize costs for in core year with we've we've make benefits X.X to leveraged on to we driving past I'd trajectory improved improvements. that to design, will coupled down. by the our XX% technology chain costs and product power These

that with our and We new Duke with Energy. continue globally scale. make partners relationship finding us allow NextEra with relationship progress can mentioned to and our on to working expanded K.R.

partners provide Korea to a had Our SK exciting the scale strong in resources capital strong operator, of on while hope developed that to Bloom with questions. align invest markets very bringing and both summarize sufficient We're and open with with initiatives. us we are Bloom technology operators growth find will relationship I working and new our in to We're commercially operating Bloom structure opportunity positioned capitalize to uniquely our wanted is technologies in in market. has remains resources, With to help our We tailwinds. template South now to cooperation managing and capital a long-term quarter. that U.S. operational growth complexity. the our finding that will feel to let's markets. deploying dedicated for the Strong

Operator

Michael with ahead. Your comes Instructions] [Operator first Weinstein Suisse. Please question from go Credit

Michael Weinstein

good guys. Hi, afternoon

K. R. Sridhar

How are Michael? you,

Michael Weinstein

you stand about Hey, year? the going ramp next year, a you do Where little the Can the where into expense – now? bit be do city expense product ramp, are you'll next talk think you – good. you the planning

Greg Cameron

let me Michael, take that. Yes.

it our being product the we've about on XX% the really it last worked in years script technology. costs, think I talked down we the current on of as two over

to we goes that and see XXXX into sequentially and In say were as this It over I'd last to is quarter-over-quarter XX% XXXX year that. XX% well. period this both and year continue from fact we accelerating, down the year

same same X.X, that but be bring about as around I go think through. every in. it won't a the what see function step it as we we is to introduce a level pace you're continued We'll decline going quarter

out, that those levels, the seen of continue ramp last we've to of XX% over years. XX% get to we product As same to the that we types couple

Michael Weinstein

X.X XX% think be reduction a that would in XX% achieve mean, increase you'll I a with do you power density? with commensurate

Greg Cameron

Yes, it's learnings technology manufacturing supply and bring get the it come that you important And will. that your learnings from you new right. where you time, you process. over have chain, from have It as that's introduce the you get that your in the in, will all

last we'll to over plan we in that in So a of way couple which years. levels that of the you've the introduce saving ramp seen get

step a I expect wouldn't similar I see over we years. that's So at as forward, next you'll that go movement by what trajectory and mean function all the few

that we see forward, we As costs out to of as well. look we to out curve continue continuing bend X.X take as

Michael Weinstein

go along thinking, you’ve – over Korea So that focus X.X Gen more to on in think rather opportunities of do of weeks, the those lines opportunities of I'm a X.X as cause last might couple you you and announced is forward. developments improvements Gen than you same lot wondering and those

K. R. Sridhar

Michael, this is K.R.

NAND it us For an is and do will a OR, both. we not

seen gives level you cost of fill the the a – platform a the X.X great ramp. the costs of new X.X quarter-by-quarter it while the to ramped bring saw full saw X.X what up got a it a was there option we a As was were gap have to new got you generation X.X and ability platform our X.X, coming sustainable – down down. X.X of of with platform costs and is opportunity to continuing from to went benefits We and the that us beauty they've introduce the that down, with it the is introduced coming to

we something. an to that do things when our hydrogen things is have these actually capital to we layer working with opportunity on layers platform. Now them the The we put that electrolyzer these a and that fuel cell efficient do to with a without are are partners, the things do these way, marine resource having working hydrogen bring going able it is layer, all layer, to in of being the top that we is to a the confident a de-prioritize and we same approach is efficient,

Michael Weinstein

Got to A opportunities pursue. of and lot it. try

back in you So I'll Thank much. the very you. thank get queue. anyway

K. R. Sridhar

can about open believe real all that about it's all right that's Yes, for them. Greg each and program why who can us we and staffing it. partners that trying focus up looking in, markets we about to at and go and it's and sure we have And execute making talked the

Operator

Stanley. Your Byrd Please comes ahead. next question from Stephen go Morgan with

Stephen Byrd

Hi, good afternoon.

K. R. Sridhar

Stephen. Thanks

Stephen Byrd

any on with side, of you wanted process pipeline customers seeing well just and to of he risk Just hope pipeline you be wish the about health just cancellations go-through respect I him. side couple the hope to to increases new the Matt in are customers seeing of – guess share okay, positive continues sort well, around in Wanted existing of any Ross you terms things existing in with and to certainly his sales. are is then this of thinking cover the on sales? as a

K. R. Sridhar

you on you bookings – there So but no no we our we there way, with our we you, we is don't that us backlog told the have to telling we intra-year going what are and is customer have can that cancellation, share they systems. are don't showed want here what it on receive is comment that to keep and that on

In to you want we earlier fact, than anything else can Greg, later. request add have a a we rather that? do to cases seen something in few of

Greg Cameron

systems our because customers, No, It's some projects our experienced quality as as to the at savings. specifically their and I of pipeline say those of from the it them volatility at we emphasize, that things. it. I because there's want anything we all we've at if I that get all at gives need think but don't We we've where publish to a and as that the we've look every they the continue look look had delays, customers to backlog. cost quarter to resiliency sites, general would to canceled, pull our about that, well gone quality none obviously of do through yes

Stephen Byrd

very a you the to cells. the a little glide methane-based about hydrogen hydrogen-based over long to timeline there’s roughly fuel given a in about of And ahead Could market away Is a you’re I should you Understood. to path sort over which shifting over fairly obviously quickly, large do just the Korean would that sales? market, that think your fuel bit what for transition cells? of your methane-based from see transition talk for or nation something timeframe cells policy guess terms cell that to you sales? that sort need do we of in fuel of going product to hydrogen Over fuel

K. R. Sridhar

And just our beauty platform operate able I to gas Whether and to that’s in wonderful technology to those we systems designed either fuel back our our going of our not Stephen, hydrogen, of and a question. the wanted agnostic. class the to either Bloom with are best fuels. platform operate natural it, founding and is be is We this or operate, make early going documents. then think

available natural to that this So typically and you platform boxes, in for can gas, – them? switch hydrogen years. today that go buy of five to. they should for is about our and and It’s five have you hot swap make need a opportunity easy future become them beauty even change to from if our a the product years, we today, proofing Every lasts between, fuel. customer. you When us And remember fairly are to our

we the extent We we To than and the into can we strength we a the of it control ourselves, some it and of can out, economy are the don’t we that prove perspective, like the world, because well planet, our the as and sooner by When don’t because want to how market rather we comes they is for be by we come but put to by future it. would market can beauty later, it’s to need our can architecture see don’t in invest chosen. have dictated geography, both we they that. play, proofing Bloom what going platform nations, develop But control is better the to out both from by by fuels customers, the the and citizen in do. So we and as as the best-in-class policy, control hydrogen be value.

Stephen Byrd

And a a to see going back queue. on smooth you’re period sharper Or hydrogen? shifting of Korea Understood. do is transition possible of follow-up get or for there terms maybe where a that sort kind and Is of that hot in transition of need you do just I’ll the to replacements? that of in speaking, lot towards of sort to a the to transition? that the lot a replace smooth you stacks, a Broadly allow see of box it possibility

K. R. Sridhar

smooth to to happen, I again, time simply size I do. think what a that amount the simply be to gas but you’re for gradual about transition, that’s the to able of be for us, but given ramp transition the this going just world, period going else we not to be here’s and where talking going ramp the from that going anybody to for is natural of is can economy megawatts of last to hydrogen long the it’s emphasize a market, a given It physical around economy.

cells have that install knows cells. to gas natural all The the monitoring together of natural Our the operator who same cells same put hydrogen cells. build manufacturing lines, fuel machines people fuel gas the The to the do. build the hydrogen fuel the common same same do fuel we how knows that, they kind our the supply element, how together put chain, same

lines, the that So the to have best change and without came and line, automotive you fire unit to if on sedan, is and And just I’ll out the you the when could fly. off-roader, we assembly of morning up have another switch one paint in should you hydrogen vision, in to we and truck, them wake simply not table, be stopping able switch. what ambulance, can on a tomorrow did given an a is class this have that in do for right? commercial done, from a Japan we you product this an an beauty line. we we assembly my the following commercialized, perspective, a our have factories you, to can they line, after And all told And and everything, roadster, timeline, bring once us once our

it’s lines us, wants just the For it our on cell on crank hydrogen. assembly hydrogen depends how can cell, We or gas would fuel market and nation fuel the it. it the sooner, embraces but like soon see whether countries that just market when a wants a natural depends out. the to them And

Stephen Byrd

Thank so really you helpful. That’s much.

Operator

question Please Coster Paul with JPMorgan. next ahead. Your from comes go

Mark Strouse

for Mark taking this Strouse Thanks our for Paul. on is Yes. Hi, questions.

start of some the to kind long and – wanted how as Can Just the the then that just far fully script? of to commercial once you marine to you for the you ramp going that kind that? talked questions. business? follow-up to get timeline of reach the both summarize take before to take it’s earlier hydrogen long can production, in some about does on numbers of the you And As that how achieve point,

K. R. Sridhar

Great Thank question, again. you.

second There and is by separately, marine, one fuel so hydrogen each Pardon as three address the is one. as And are an this. one I’ll I the elements a to third electrolyzer, one which hydrogen to cell. one is have one first answer me, is

a formed to have respect with agreement marine, is announced Industries. So Samsung the I’ll now the three. we joint With we’ve development what all have Heavy we address –

team for in the testing fuel application all where our application, a that formed will packaging stationary on years, companies to all go a do have the on next ground, such it’s necessary resource a ship. We time we two first and the have mobile will the cells validation and the because from a two it the

external. part platform, deal to similar able Nothing there is platform, rating getting be the cars to be with same packaging authority, transportation UL two platform. for changes It certification. that to for federal on that a every a to and has internal that have from mobile So a the ships their are internal made rating, getting Number the through exact adjusted have have at certifying go you own to agency. on

their of completed technology to sea on XXX we in on a that’ll of is years based based two they the on at have market for go years. they’ll ships. production. be megawatts present first go, then hope Samsung within this using at history their predicts – annually proposal the XXXX, should all the and buyers off-takers commercial ships, this ship that to We year So companies out in predict to past hope the analysis. least two from have two and a sales the activity And

our our So at built again, factories, hydrogen to that’s shipping emphasize Stanley for again, on have similar end the Stephen ships. being beauty the answer getting it’s of our Morgan packaged I very marine same for to platform, industry the I differently gas, the the units versus just gave timeline application. natural from And in the

we a the by would XXX unit significant the very in kilowatts funded. move. purely to indicated two after And the first and want next by X funding – the And any first they desire changes respect of creating zero the move what that, of With that the we up have to opportunities of electrolyzer, and also get the ship to government end than to hydrogen next is on done end field year terms It’s It’ll fast fully Korean the it’s other we are a of fuel take hydrogen hydrogen produce don’t hydrogen companies So cells to outside megawatt, this fuel have internal to cells. the the With early we have how it’s tested as fully the that electricity cells, a guts make fuel They year quickly for part, year, carbon. with to SK. the intend now the did. hydrogen SK. year, packaging, by not to to what need we do. fuel

number forest SOx, particulate. In addition resilient is clean, no onsite, it’s NOx, not Number benefits no the it’s bring, it’s no the one, that to two, to fires, unlike which bother all to credit. it, we it’s hurricanes, going

benefits, the all those the get get you carbon, So hydrogen fuel that’s zero you cell. plus

produce produce has gas, to you footprint. hydrogen. needs that somebody that today if And are hydrogen you like Now a from that carbon natural

is year. we’ll electrolyzer unit electricity and renewable break oxygen use carbon out that’s next And commercial hydrogen wind, we expect with and use electrolyzer electrolyzer, product. an you for from a footprint, if have zero the our that first that using and our renewable water hydrogen solar hydrogen However, that hydrogen hydrogen to and

a long but parts. it’s Sorry, was it answer, three

Mark Strouse

And you, just Yes. K.R. No, up. helpful. a was follow Thank extremely that quick

more side, than the profile business? the production? three needed but doesn’t get do it a hydrogen maybe or term, to So near-term your would sound How a like of those about on to on think any have be, the different two lot side. so investment core we Marine businesses margin longer there’s then investments And why reason those

K. R. Sridhar

– evaluate into there that and market to that In And and evaluate think we and on of one really pay in is advantage competitive done these advantage with number that market it command we diligence when the who our and is case, really is knows this that a we getting is, amazing when partner one, – advantage. customer, ultimately, announced, real we and product opinion, that in margin. the have by Look, other we instead pay have businesses, to a Samsung based markets market is see the think in going we the by when things willingness where which there. about way case competitive putting global partners, for SK, the the all you the these understands

Number And these for number has, and by unique applications we of spending. shouldn’t but training, on way platform same factory pretty the plant be multinationals integrate be setups, and the emphasize margins will that working one. talked that tilt, things I the kind significant ship, that is two are same have have asked why into you shouldn’t our the else have be add mechanical the our to or operators that equipment, okay? external the able that That’s will on all partners which the how it was of balance going the and we the again, platform or you features. these portion is packaging, to our corporate and of the because A of around who given that are about, to out in have technology command, question you handled nobody to them. kind we vibration any us closely and same three with absorb shock I in large looked expect world expect we sought So to a we command these

with amounts build to So lot that small on things key that’s we the these the we investment, invested opportunity this the expect, we side, platform. But but be what you’re expect, the takeaway of forward, fairly marginally early have. one. employees benefits of given our reap relatively takeaway think going is And a do if and can for we all the is our for light we speaking, investment investment that’s have our That investors to that to expect the you related – capital a looking certain I expense.

Mark Strouse

you Okay. very helpful. Thank Very much.

Operator

Your next go ahead. with Ben Kallo from Please comes Baird. question

Ben Kallo

Hey. Thank you, guys.

company different Capital is that lithium-ion where And our markets wondering, to – question. to just technology? threshold in on it K.R. first that’s you, those is how are grow as question, my recently where Dynamics second you’re gets selling, lithium-ion? of market these from different the I grow to to thank type And you Or you look buckets, a That’s my the at markets, if have stand were electricity? talk about three of batteries how And did And sell it when it deal think a Switch, that you you just I’ve improve been frame we’re could I’m capital? three what need on some Thanks. reading then allocate and returns? of So you or there there’s margins on most with it just despite And addressable is I your Tesla. levelized following articles, – question the a you or data in we because is going cost if server

Greg Cameron

it’s Ben, Greg. Hey,

and over on the the it the to turn batteries. half me I’ll take first K.R. question, Let then of

on investment I’ve built lot executed chain, investment's last understand is our great production the building rate, So of in and a as our and seen I’ve answer thing that distribution, made the really capability, designed here from supply product in that our in been et in time, capital K.R.’s on already how and gotten of the cetera.

how base is to things very big but the of I one come to on investment is, still a the about of company to going to majority it. commercialized. that there the much built we think those its of vast the is with to be just talk things is or to in do growth same. all that waiting people majority for that great and and this do how of So We product how order majority trajectory And I specific like that that may talk is commercialize that out it be as making introduced think in are our look the we and similar. on through look the the so roadmap pipeline application, our capital be attempting capital of each and on There and we've differences very purpose, the looks it those product will do to are things as that, we between get product at trade-offs far we where return about and the systems

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Ben Kallo

you much. That's great. Thank very

K. R. Sridhar

cells. Hey we the a get all as batteries right, Ben, question so fuel this is time,

the go time look DoE batteries lot this at it, do want are and people of if literally well amount a hours power You a at small as research labs, can a analysts, publications. and for you from as backup, is it of power academically, Even study you a who solution. few everybody, industry when as a

will it than you more than cells better. If you is wanted hands-down day, hours if a you seven, eight want more be fuel wash, for into get a it

every in yourself, a fine, So are while, the hurting the day model if okay. grid of fails thinking with putting are a grid, you're XXth falling because century electric once every having so down batteries just you few and to bandaids an only is bandaids not

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Ben Kallo

very I'll it Great. leave much. there. Thank you

Greg Cameron

Sure.

Operator

from comes question with Oppenheimer. next Colin go ahead. Your Please Rusch

Colin Rusch

Thanks so much.

ASP can missed a Asia us a and trends but quarter-over-quarter a have you may give and As basis? I the like-for-like U.S. on year-over-year in it,

K. R. Sridhar

I trend we it break competitive but for give don't you the can think we reasons. between geographies, down

Greg Cameron

break it Yes, Yes. Greg. it's don't down. Hey, we

because we So by our reason have we that letter, don't K.R. quarter that where just for geography and do based trending standpoint talked the about. on In particular that it around some around break ASP from can includes volatilities I trend, that would an see may prices say you application. the down shareholder be costs, any though, that installation there the total slight are

talked about K.R., going to a quarter this obviously going place for an be a X that in So went ASP. cost, lipostructure it's and be megawatt to that's at higher so

you I for you looking I’d letter to would there. that's shareholder trend, point the you're the – to point If a

Colin Rusch

testing key think it as approval should of some and years how of things, the guys that over at commercializing on over effort. of the about of should electrolyzer couple next we those through as sounds we then then It you look gets sorts think some benchmarks time? this but technology, milestones period the next like key And cadence the about technical we how

K. R. Sridhar

onwards, Mars. area. question very generation From this in a this fuel using has for good we look That's the Colin, in XX using said and have oxygen I roads patents this generation its and using technology hydrogen company generation issued like technology this technology, XXXX

area for that this a we property intellectual already in So time. research long and have active

of And we we do because to Now is as else doing about can a should many our we in It look is to can that is that's so purely to what some benchmark pull who a to we how what some next a commercial the extensive to, see given the as make we best-in-class you we can match work. produce be cells, lines hear market it testing, electrolyzers we that for. performance speak purely products the And need. comes same year. going to that same doing the introduction it's expect and everything of ship accelerating lines when we electrolyzers game terms show use first product the it to benchmark are build our it operate. and we is Once the fuel that,

Colin Rusch

Okay. guys. Sure. Thanks so much

K. R. Sridhar

Sure.

Operator

[Operator ahead. your of from James, Molchanov Instructions] comes Pavel question next And go please Raymond

Pavel Molchanov

want my with taking talked standards go would the as adoption. issue impactful that it when question. the what almost one in What's you happened last and XXX%, power zero be terms creating you ago, headwinds is exactly as a for Thanks months? customer year that about XX ago? this extent York thought to California carbon I year back this of was in To New with and

K. R. Sridhar

Very good Pavel. question,

were because attention, unconscionable That that similar thing tragic here lost needs it forest is for of hurricane spoke there that to most in similar in did was in supplied with the not and north disaster same And lights the California, the to lack advanced few fires up it was because people wildfires. the century. the even events to very power XXst happened of a medical similar months not and unfortunate not but think I have hurricane could not we happened be nation power. the after medical national event Sandy, Puerto in the Rico, the

it change and did the issues it understand conversation, that. So some not I had resiliency We’ve quite need people first for the is conversations not started who good is not resilience. are the and or, we time, significantly it climate or think resilience, an is as an with for sustainability to appreciate sustainability of dealing

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fully us erected a was reliable possible. emergency and for that, supportive get helped that put as clean, Bloom, that power the solution and as So state quickly and

there's to So solutions also and is there's understanding is technology and tremendous And that cleanest that the take and off. the that's can realization Bloom And Bloom natural all also power. there, the and gas developing cut things gas out produce understanding. with carbon way of that bio hydrogen

significantly place before. So and what different ourselves. where understanding find I in we that a of in sitting I are different a were you appreciate than asking we think need, we place question policy and in terms

Pavel Molchanov

now by never follow-up Does side Europe? perspective going into of but other your on European change Atlantic, climate the My market, is the sold law you've policy have European the on the net in historically the that we're XXXX. to on opportunity and zero

K. R. Sridhar

was this, but week the it plan didn't We we question. the towards that saw EU follow-up announced that out you put great South the with roadmap hydrogen all came move. that aggressive hydrogen same A do. Korea, we Yes, very its and our that articles

with will excitement. emphasis. looking hope appropriate at that that time, given at market the we and the find And are right with So to we we that enter cautious partners work the market

Pavel Molchanov

Appreciate it.

Operator

back call the That’s turn had all R. his for remarks. questions, I'll closing Sridhar over K. to the time we for

K. R. Sridhar

I appreciate you you really Thank all so this time the afternoon. much. taking

business innovate execute are and to know, we our continuing you on As plan.

for business Bloom strong support getting very de-risking focusing are the in our partners prospects. We Server technology. investments are Energy business, applications commercial real our new of that's And we

providing energy We and hope to safe to the rising day and healthy. is clean, with And of you. where us. everyone. behind reliable look interest in support forward Please stay safe we the We’re Thank and appreciate a advancing affordable, our your company. our challenge mission pandemic optimism to and and COVID-XX

Operator

This concludes you joining. Thank conference today's call. for

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