BE Bloom Energy

Suzanne Schmidt IR
K. R. Sridhar Principal Co-Founder and CEO
Greg Cameron CFO
Stephen Byrd Morgan Stanley
Michael Weinstein Credit Suisse
Paul Coster JP Morgan
Colin Rusch Oppenheimer
Benjamin Kallo Baird
Pavel Molchanov Raymond James.
Call transcript
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Ladies and gentlemen, thank you for standing by and welcome to the Bloom Energy Fourth Quarter 2020 Earnings Conference Call. At this time, all participants’ lines are in a listen-only mode. After the speakers presentation there will be a question-and-answer session. [Operator Instructions] Please be advised that today’s conference is being recorded. [Operator Instructions] I would now like to hand the conference over to Suzanne Schmidt, with Investor Relations. you. Thank ahead. go Please

Suzanne Schmidt

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

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

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

K. R. Sridhar

Good day Bloom because more resilient Thank year than that, ever and our XXXX Energy’s you dimensions. fiscal am quarter before. joining I yet welcome and financially in efforts us. to so Bloom Energy earnings transformative even year our and and call. for delighted XXXX XXXX to was many strong is fourth report of on best

Here are highlights. few a

revenue full Our fourth are and quarter company year record. a

due. We non-GAAP our that gross margin to operational added coming our excellence. highest health team management interest financial the We improved annual is was leaders high debt the retiring Our proven exceptional four with by to-date. of records

applications ways. in manufacturing, a installation dedication announced and navigated teams leverage record in Bloom service partnerships to chain, safely obstacles accept myriad of clear numbers and supply of to commitment. and local platform Our global the servers our of and demonstration manufacture, that and innovative We service

are our for gas bio capture. and We advancing generation and power the hydrogen fuel technology cells carbon electrolyzer,

capacity our manufacturing and ensure team early sure clean community we power tough delayed local focused We architected had and us refurbished emerge and decision a on This of manage expenses have made sell and increasing based hospitals to cells XXXX. sales our ship. XXXX. a We X.X production financing, our in in market expansion were that plan began sheet. product. the conserve cash made facility we double as manufacturing that our to able instead We manufacturing deliberate provided product of our our pop to to and We kept forced The XXXX kept also to to on until The our schools position. contribution Since our defer we testing further to XXXX. and COVID existing underserved new balance funded. We related crisis well our out community end and company companies, Gen a the strengthened we for out members. hurricane geographies. by up factories. our stronger our the team's We also enabled expansion cash current partnership facility deploy of output are innovation a cost for initiated co-hosting build reducing securing We highlight we a current victims fuel Bloom is and a the ventilators of lab on in spirit and emergency

also to states requisite making new countries. and investment are expand We the to

happy to I'm opportunity the special a new our XX Schweikert, The At Azeez both Our majority are discussed and that the commercial according was more a and Day. Department will maritime also customers enable advisor. this that install now reduction customers. resiliency cost for states is of CEO in XXXX, and product who industrial Data. offer and head by states Bloom $X.XX Investor Electric to Outside growth group our Bloom of state existing power. U.S. orders we we large the solutions President during competitively of service securing us the positioned strong per to Bloom’s Tim as with kilowatt point, new price Energy or Mohammed has Solutions, Marine a we global in is U.S., our building of team market hour In actively for expand to his joined enter report as pay international business. General

administration good is expectation expect In for growth Energy with developments, all agenda in Biden's in hydrogen. for. that She The policy which robust is and energy ensure and job. infrastructure. transformation Energy's natural incentives several generation and on well Tax these to collaboration resilience. Granholm solution energy and backlog to pledged to for called for suited well ideally benefit That Janet capture in gas has producing to that and backlog clean Heavy has Treasury Bloom our for by tailwinds, cleaner Federal and has Jennifer billions progress. deploy power technologies, and the state. Samsung existing also infrastructure Our growth improve market the augur products energy is strengthened Bloom provide Yellen nationally meet create clean investment solutions nominee, Secretary pursue capture blue good XXXX. Climate looking in U.S., clean companies sequestration like energy has suited is positive to pledged partner the the and American green subsidies American policies and paying pro and Energy increased made Secretary gas reliable of robust we to emphasized both aspirations. the power the With Credit, enable extension clean its market globally. technology making of Industries dollars the need improve needs revolution and and carbon called are the President President Investment these of investments that increased climate carbon

Asia flow These coupled robust new recent move in We for months. the from have market areas. create seen similar leaders in several growth in potential with policy announcements Europe balls and

capacity if the summer, General prevalent. have out on has Toyoda such cars like one vehicles more zero in all similar strain of market prohibitive. the The on automakers put power. Motors increased, recently were highlight entire of President mile running Toyota's to cities greater pledged Government would will Japan be last electric Tokyo aging global electricity adoption to and would grid. becoming Federal Even carbon recently which electric Increased And distribution in New the York, only run electric electric me aims the a generation Mumbai opportunity, vehicles, Akio by are electric noted many its if vehicles fleet Let convert that produce cost powering upgrades XXXX. set are vehicles. into goals.

prolonged for Additionally, essential evacuate offers for world In is Bloom power grids to natural vehicle, to vital and with that after people delivered. safety disasters. resilient time, replete needed, security, a are enabling Energy periods aid if solution. power of and often be resilient electric for disrupted

power, mitigate very or electric new need upgrade base opportunity product local the XX/X for a of high fleet part on option quality, or includes an to provides new Bloom the availability, of Our network for unparalleled to of an stations. generation. This vehicles infrastructure generation point broadly and load always Bloom’s utilities eliminate consumption presents of that at servers, capacity. charging to be powers distribution terminal at create or more with

and operate for charging has to offers since the that significant I Our stress year. rapidly XXX the to and green output of on volts last battery easy is fuel. ideally made direct Bloom Energy start flexibility most current and suited reliably, progress want clean the efficiently

ago. than we today We are a were stronger year a company

We sheet strength flexibility. have and balance

our And message ever. proposition. very resonating a more policymakers have compelling than now We value to is

transformation. sector. innovation the We XX laid-out bold years ago, for energy are of we at energy a forefront the in vision

this delivering developing energy. new team, that exceedingly We the low strong solutions, to for and market on and a execute moment. have by solutions confident immensely well ability with field we new in multiple carbon are generating momentum is leadership are been our and positioned and that encouraged pathways zero vision. Bloom based to The Energy

turn to now over Greg. me it Let

Greg Cameron

a it's pleasure to everyone And KR. with connect Thanks, again.

more I in we've jump changes provide standardized to additional highlight order to process want I financials, our to some into a the earnings in Before the implemented of transparency format.

information the earnings release. already hopefully observed, you've in As increased our we've

letter, shareholder have included release. We relevant will providing longer the into the earnings but the no be information

have our insights going and environment. a operating We've presentation We made additional your will to based into feedback these incorporate information provide input evolved supplemental additional forward. upon financial changes

in for presentation website. Now, to I'll be quarter posted performance the let the get into our me to financial the year the fourth slide referring XXXX.

grow challenging all we've pleased financial advance made While improving progress XXXX an our our while balance to strong the were business exceptionally we sheet. results, our and with year, strategy, was delivers

quarter XXX our for versus in well XXXX versus in $X the total for in enter for up ended XX% both scale. X,XXX million larger we revenue XXXX. positioned build $XXX.X acceptances technologies bringing $XXX.X total are systems fourth the to We fourth to of XX.X% total beyond record fourth record the year last markets, our quarter our year the XX.X% XXXX for XXXX. versus quarter and fourth the up These were by XXXX us environment, are challenging These to with evolve the We Even revenue in quarter year the acceptances versus this new of year. the to operating quarter and numbers million million improve acceptances. also able performance Bloom for delivered increasing in up

We our are in operating difficult environment. team's effort proud of very a

at to on fourth XX.X the our quarter, prior Moving improvement non-GAAP costs profitability our quarter of metrics, we the up drove for total up XX% total X.X we XX.X nearly In margins versus our a and gross points XX% in our the year, versus reduction for year, product see in continue year. to margins the the points fourth were XXXX.

while as of the in fourth income versus XX year quarter you'll total the for the in million our revenue, million the to Slide upcoming improved continue in gross margins conversion with EPS total XXXX. the important and quarter, a third We and share to in a fourth the this quarter we improvement These presentation, product increase in operating coupled quarter and We profile costs fourth debt of journey meaningful profitability. and points second and a and operating increase operating our resulted respect performance year the on periods. our strong income, in it's revenues and and the the margins This improvement in of encouraged With to performance million, the versus fourth $XXX quarter and total completed we dramatically of year. outstanding $XX the data of the balance with objectives revisit fourth grow to we're and proof $XX in last sheet, EBITDA was installations. Overall, lower to adjusted prior reduction the our improved the with our the addressed debt million secured to non-GAAP translated fourth $XX.X for million the our analysis are quarter our X More flexible improvements the overhang, The and notes XXXX. to ability the in due and year, EBITDA This million enough on and $X.X XX% later. adaptable. surpass versus These near-term by debt feel franchise costs their XX% for performance senior X of XXXX. our trajectory of quarter year. and by As performance We our better XXXX position of margins for due with improve operating million. last December July and have come higher see the our pleased the a in remainder both maintain prior million $XX.X maturity was we retirement when versus delivered by $XX.X Day. platform to with XXXX acceptances up core million cash that's of Analyst to of our fourth reducing point product. compared our $XX.X quarter an notes income improve XXXX adjusted we It's convertible

As growth carbon our build capture we cells, for Marine bio gas on we execute hydrogen additional pillars, can fuel technologies. in applications electrolyzers,

were such maintain as at very bookings by in the only and difficult in of we’re we environment, and backlog time impacted year. provide early systems able our universities that this Now retailers as one a our Even let's take especially X,XXX in backlog each hospitals, a nearly we’re merge pleased to COVID, look plus year.

quarter As as the reengaged. increase in customers bookings we through saw proceeded year our we an each

commercial We by on administrations are to the with additional focused new are momentum continued the encouraged see opportunities clean hopeful and infrastructure.

In total billion with and to our in our billion. X.X combined backlog, is system line a backlog installed service X.X of increase our with backlog the in base addition backlog our system we’ve

XXXX As backlog support the and to business, during to dependent there Analyst short either market, we to bookings identified XXXX. for presentation, billion planned Day upon $XXX is projections required system within the bookings or U.S. the $X our for and support enough in the backlog. targeted new we're Meaning million planned nearly our our we of acceptances all pipeline not discussed acceptance revenue between XXXX in any currently timeframe of acceptances international for given

investments revenue additional we manufacturing capacity. X.X an nearly increase X can provide securing we’ve Given reached making our is megawatts we point upon introduction. stacks, manufacturing capacity market capacity gigawatt to based allocate cell growth combined a of expectations, system of of of we electrolyzer megawatt be we’ve Today our to fuel support where capacity This will line XXX Bloom part megawatts are of our XXX will cells or fuel XXX demand. that

As KR with we that our for of manufacturing investments or $XX significant benefit earlier, efficient. platform and can very investment our a we make all do An utilize limited same of applications so million customization investment mentioned of are the to year functioning Bloom a installation $XX as our we payback completed less million the and than is our On we fully December, requires has utilized. expected of double customer in one performance a are and capacity data. X.X, first unit gathering

XXXX Bloom to We and and will X.X X.X Bloom forward systems increase operationlize majority in productions the manufacturing manufactured. the call XXXX being our being will throughout of

underway, performance With its X.X XXXX We've our focused additional our adjustments will to space first sales increasing current Given new current through and both bookings to made the force for of least in our flexible on These with states our new our to we the we of have and our roadmap internationally. support Bloom our is our the XXXX. secure demonstrated for to will capacity investments XX% are to that growth be levels in Bloom fuel in technology U.S. at and to avenues manufacturing and platform made at line. the continue X.X team support now of expansions multiple bookings strong growth. domestically new our in provide facility with on expanding will triple margins, focused coupled the partnerships securing manufacture is it technology

Moving our Slide analysis. on for to margin X

revenue. we’ve our gross non-GAAP profit of by Here down margins source and broken

improvements product margins from is product increase resulting in costs. the driven overall gross reductions by continued to largely Our in margin non-GAAP

a we for product. XX% good margin where achieved installations on on quarter, non-GAAP quarter breakeven. gross performance fourth our the nearly we had our targeted We For

the roughly as For the the XXXX. a we’re installation breakeven along as is budgeted we year of we’re Remember cost customers. our targeting same to business where of this part our pass

the the to install Going that perform margins, reducing accreted the forward, will margins. exploring operating thus complexity dilution as and our partnerships be our we're earn partners and would those to revenue

versus result For kilowatt letter. the analysis the business to per tumor shareholder quarter, that fourth upon go an profitability expect we our increase of Especially that in mix. variation a provided depending quarter kilowatt The this XXXX, XXXX with per in historically there profitability each our in profit the in consistency included we’ve we’ve XXXX. would be may as acceptance total dollar I some forward, in

business service fourth Our lost profitability resources quarter. near future. in to nearly million the for the We’ve X committed achieve

five business. details. additional layout our the X, recent synergies but life to also using optimize power they in XXXX portion our our and we specific to systems we to to a to for power These this cost. our As made some season as than service We've over and share changes modules field, results of modules referred and data his doubled a I’d power the half a from important of significant year service to the We’ve modules remarks the slide changes turn changes expect which of reduce since opening is providing in how by so more fleet KR targeting frequency like life. our and replacement. the are

addition, half we these our cost less we've XX%. for service those output In modules the cost. a we provide of provide an required do modules XXXX, since increased costs results at to and by XXXX, additional power lower to customers reduced power combination of each or power less modules are The increase power investment to In our of in these second made cost. the are we which provide as all changes, of the

the In the opportunity Analyst and business plan the our business available make being profitability profitability investment of to committed modules I When course sooner. to service XXXX. by years. accelerate the profitable Day, we towards took of to two part move shipments that pathway the over As we to became additional

projecting we’re year we anticipated term very revenue than achieve investments and service and we positive to expect sustained to the be over and for profitability overall our to business. these with XXXX long the grow the for Now earlier profitability development

As the think event follow economics is XXXX. provide go and in balances business part way deliver to page. community investor look few our of commitment to processes the a sharing good our transparency this our to for focused financial discussions the A month are from as on flows, and of service host an on and we’re and planning approach. to next these The presentation little additional detail We underlying analysis increased help slide levels. into forward I our performance cash through cash the debt understand more highlights and deeper team’s our we an business. the

Going forward as CFOA we a capability cash the and will as operating and our focus business. this from or flow provides performance activities generation cash insight cash of

interest. While XXXX, quarter. an quarter in increase usage for cash fourth we our the we enough debt improvements in EBITDA the in our in for working needs reduced were within payments of cash our a user These were through to capital offset reduction not and note I the

we inventory scheduled ensure year additional secured end. to at Harbor Specifically ITC retain customers Safe benefits our XX be reduced to in the an million

years these reducing While course additional December, it inventory extended the thus utilize adjust working so levels we our these that for in inventories significantly unable while expect ITC occurred avoiding to was capital. of investment we two to XXXX, the were lately in year over

approximately reach component The the reduction Our by million XX% from paying XXX.X up million. and coupon debt XX.X recourse XXX increased in and unrestricted decrease August XXXX by in for of slightly XX.X year place in our rate we million to cash stronger and XXXX last invest and December in million XXX.X savings unrestricted balances the our notes debt for ago to These by by since of due we further cash million. July opportunity more grew cash have were we’re slide in by all versus off legacy driven to reductions million XX equity year. We’ve we have exchange provided targets. months debt. reduced first our prior with a the increased the the position million the Total secured growth. the the green third quarter us to convertible payoff Bloom just outlook reduced notes was X, nine high XX liquidity annual cost comparable On than interest quarter. our by convertible the and since These issued reaffirming much of bonds in service the provide senior revisit

backlog million For to X XXX Non-GAAP non-GAAP revenues are to targeted of gross income and the we based billion. our positive pipeline and at we be around expect between revenue. expect upon X% visibility and margins XX% roughly a operating of of deliver

With capital, of inventory providing ITC working improve be an for should our we need reduce the less creating to the levels opportunity on to able metrics. cash extension

the As to is us outlook forecast, I’ve metric CFOA approaching positive. left as for a new

year As on this visibility through and provide we the proceed I’ll more gain expectation. update

second guidance, call the each to earnings first plan had in than of I’ll we’re expect incorporated summary, the prior to internal inventories for operating update really the XXXX. While framework. we One good our XXXX us half. greater and apparent an highlight framework. total and in most half a not quarterly year first plan user like for in be performance second companies versus a the quarter on anomalies cash years we environment in expect very year in of we given the to performance the revenue a as In example, the build half providing endeavor the be be strong we our not expectations was provide we deliveries. in just fourth while year it as product half to may Also

gaining are our We’re expanding U.S. internationally. and operations commercial the momentum our in in and footprint

on Korea to and focused opportunities domestically in and new are and as continue well South partnerships have and market opportunities We relationships great both geographies international. as growth

to expect profitable now We improving. year sooner. is be outlook business service Our

versus cash year increased with ago Our and strengthened debt. reduce has liquidity position a

has well a the With framework. that let's up is open are our XXXX roadmap positioned significant we Lastly, shareholder create to for reaffirming operator, Bloom line value. Energy and questions.


just for compile a Q&A roster. moment [Operator will Instructions] We pause to Certainly. the

line the Stanley. Morgan Your of Byrd Stephen from question comes first from

open. is line Your

Stephen Byrd

Hope are you all afternoon. well. good doing Hi,

K. R. Sridhar

how are Great. you? Stephen,

Stephen Byrd

maybe in couple just both progression? thank just to you. a your terms noted of certainly product in level. federal the thoughts I as commercial interest the own and your first latest in as capture. of product here is, I'm I just and product sort wanted technology support could technical that if feasibility of difficulty] of KR [Technical sort for carbon explore the well the commercial developments interested on and on I'm well, Doing curious your thoughts general the But there on product you potential rollout? views sort at your of development

K. R. Sridhar

great question. Stephen, So, And this is extremely important.

an hydrogen hydrogen we yours, example makes gas. can our we If than Energy, you natural essential this is can demand and and kind And connecting you with blue Department here, is hydrogen, one look carbon in is Really capture. IPCC, carbon change. capture is of it talk abridge all thing important a whether and we capture the we amount us change at to whether talked for which produce carbon one the the they forward our of bring CIA, blue the being can the dial transformation of decarbonizing, of now the of of go And it to greater climate since is most we two whether in beauty right, together. That electricity we it's electricity produce. And about produced last between there plus and better. which server, being as even technology

hydrogen can cell which we carbon becomes premium hydrogen you. showed remember the we or electricity system, out product. a our diagram separate for that Coming hard you decarbonize can produce old to even send out can dioxide, into the we If that back our hydrogen technology of the analysis and from fuel we to supply uses, hydrogen industrial flow

can XX, if XXX electricity, to carbon produce of work to way in chunk able hydrogen that about you want megawatt dioxide generation, think it being where So tri we XX, together. and

is that's a developed this lab. being rapidly the technology in So

Did interest ability think on about very bullish above you've decarbonize hydrogen? blue Government, I'm all the the Federal what saying as technology, understand it. the it. to of seen the in and combine We in to carbon And working are I a you and capture given

Stephen Byrd

sense That this. and flex sort sector in sense thought broadly of the I and interested be and would makes make guess TARGO ability to have would I energy the highly mix

K. R. Sridhar

sector in scale architecture when interest unlike demonstrate working but that you platform, in beauty the lab and developed have, the issues, a There I again energy lab to in and unlike it many to our emphasize, hard and is modular not are the we building a want scaling small technologies level. very we demonstration because the that is this you is else. can with system to add-on for anybody issue that the our you demonstrated scaling have module it, scale, And at of us, for we scaling this the build power and

that here the pollution and while let's technology on use very So some is are about that's we one COX, put and is easy need require in you things together, air those advantage. And focused that does also not second advantage bring remember this to also, value permit, not the land only that water does need compelling not proposition. other big does you becomes and cases, it

Stephen Byrd

I care very fast as in needed focus, put density maybe the I we raised. to for important guess power charging. That makes sense. charging, fast about in links infrastructure utilities charging, it's high that, area, it And place to point you my voltage for the And for very point think just other is this, then think EV challenging an

curious here might and could this, of see for So I you this for sort of fast just your to how customers kind the of option I the approach offer, any you to of more certifications needed or of potential was charging? little have product what types from you a sales sort speak be advantage likely bit path sort maybe to qualifications a to everything just of other viable here

K. R. Sridhar


I vehicle from charge high transmission Or a to having to not get that efficiency school get then need charged, the resilient transmission advantage. charge that loss, that vehicles metro to understand, where you do want adoption happen, So for not three family consider. grid. one sure needs transportation and charged, that that amount areas, to you an imagine issues it's to vehicle you put happen. imagine in. have for Am vehicles in if to to to everyone very vehicles, and the amount last warehouse vehicles, going charge mile are need that if the that to difficult to those soon, good instability fleet a delivery I in power, zip double-digit but DC distribution to right? four that in of so to huge very permit? to all they to get they see which to right? a I very be talk or mile of Just increase there voltage to distribution electric of needed the distribution buses you about, whether upgrade significant are things in last the it don't any need every electricity of poses significant in code, the of this power things, that people the I'm want not needed large that that having and is do, going to So, if when going to electric power charged, to option bus come utility And is car, appreciate, vehicles, invest imagine a depots of right happen DC need there can now fleets and a converting had create to are I needs efficiency back AC to has for this, of happening be And It's

other could able and very depending D&D offer power And there asked customer? it electricity service. large customer. cases, would also the infrastructure want very a different. we the defer to as asset be customers, it in demand with be would some that the local but charges depending that So all an the want be infrastructure, rate it charging also utility utility vehicle, that because I for fleet buying customer In not the the could it. And In And and charging own that owners could charging basis, utility. us people the the on fleet who avoid generation it is fleet the part that'll also case, only cases, have owner could it be in be them, the and come the on the these to the win-win from to could PTA question would you would That's cases, some that only to provide they the places, it imagine be And us, locations. provide to great that be vehicle from they some ideal to of for own corporations In welfare. want but many be a can not the similar the a And and other can it's costs. question. advantages, the the is, that so want the could

the it all of above. be So could

Stephen Byrd

Thanks really very much. That's helpful.


Weinstein from comes question the next of Your from line Michael Credit Suisse.

open. Your line is

Michael Weinstein

Hi, guys.

K. R. Sridhar

Hi, Michael.

Michael Weinstein

this year, highly this the I course might to update in be the it so… past Hey, volatile maybe to good bookings it once the asked extend lot to midyear it’s year. of pretty for the rest of it wonder I updates said the mean, year year, bookings just get it make to on about think of because a case, updating. year, to you over I know this you're I sense guess going for a a -- make been this I And backlog in see, year. you But lumpiness if the And maybe you've I could a that's of statistic it's the limiting

K. R. Sridhar


Greg Cameron

Michael its Greg.

around because depth feedback, lot it. for in was about a went what overwhelming and through they especially think the how in bookings listen, the performance. one folks large no from expectation create put quarter the and and our some And our So distraction out, that volatility, of us of Day operating to from we the may every just encouraging sure, for that Analysts was

quarter, I I think, there's do calls quarterly specific insight doing think maybe than that I'll to year providing or each endeavor forward, we're each total semi what not we rather give these of is guidance annually, similar how one though, and our to on that can doing approaching going on without there? is we the even establishing it right. number, we Or partnership the providing additional were you Are states Are getting Are that making activity Are we getting we leading, we're and we are interest And to we the lot. at? we to internationally? how into thought leading seeing bookings? framework, progress?

it make providing even forward if a number. going taken So that don't I’m personally to on I'll on publish feedback take some well and sure transparency we

Michael Weinstein

the service Great, you'd think of profitability, on rate and a than earlier end you also you be profitable, on mentioned run coming in year, it'll the year? that basis expected is be by this

Greg Cameron


total it’s cost to installed of the that provide profitability costs to we revenues line base there on fully grow for the done that well in top both And backlog business in are go-forward profitable grow, continues continues out as with So and basis. to running individual we amazing of to the driving an and expect that, the positioning to expect the that service, installed year the we as business grow power modules, job be XXXX. of maintain the the base team, and

was encouraging and in the So, losses past. struggle business remember standpoint that you that the profitability a in big from

turned on business. our we've encouraged and be a like really to to positive feel we're to we the So income. that operating our gross see page that margins to contributor a net And

K. R. Sridhar

this long-term said, what the I of me said, big think industry since contracts you what Ever let Michael, service things and underline all time, concerns and the first of Greg our were right. in for that. and was This me the for you questions. asking mean on right, like one does you just

good grow. that we breakeven And and made, So get us. infrastructure Greg to this be clear we is annuity that. for and what this is And in; put the can going for. is point again, what key will margin the to to I We But emphasize he business will pathway this believed that this see profitability year expect every a to we then year. huge

Michael Weinstein

think margins? gross you do When to you'll get XX%

Greg Cameron

that think original the was goal. I

K. R. Sridhar

pricing we're at so today. Yes,

as go it's towards move deals level not our continue up we out to to the will I that well a and ‘XX that more And the level. it'll profitability, we continued wouldn't mix, as is in ‘XX current cost it’s it's as down not contracts, those and to as take So you a forecasted to in. outset, price commit till we that we'll to continue be at in on as range level, we ‘XX definitely deals and probably we of book move new at XX% maybe get ‘XX that but the profitability, profitable to that

Greg Cameron

contracts or here the right? margins writing are again, And that life of at point the the over key in be contract will expected is the better be will your today,

Michael Weinstein

situation see since needed? you safe be for especially we'll could flow going question, XXXX purchases harbor are cash think positive no a Another to

Greg Cameron

was ‘XX forecast to of our a we see we again, ‘XX. obviously Yes, bunch time time. that that so metric. that variables context, in business, $XX a And that in million different the the our the long in having we've It's I it CFO for investing us And financing components been lot It's there not agree for originally Safe CFO, the with number give where a I come number. to that was spent probably plan. of that that, the we’d forecast, ITC And then new into how on easiest across the tried so would forecast as all metrics it. that publishing it But Harbor. a to invested you is number, you that in not as I

to but we can that not targeting get flow confident update should quarter being And cash are be would in changes two provider. positive. the are ITC, for from our or a just based or tailwinds. I'll those in I costs. folks being are getting EBITDA, So on look we that But hopeful our our in approaching reductions get on All sense. that. the through some good a we improvements you to more want belt, And quarter makes operating agree the expect I much it, two on as more I'm service big user cash based based our with tailwinds, to on under in experience cash a debt I those if the that that us positive. we

Michael Weinstein

more question. One it? Got

think in it is the get do at? to Gen in X going Just life record. module service of the And to now? a X.X What's you come where

K. R. Sridhar

Yes, me a give so you on give X.

observing versus there's what little we're bit a what seeing. we're always, there's So

median things that the not that at that, life, right in they from So a we little observed ones the field out are forecasting. now above the are are at that are the if five-year about that

well X.X year, as gone as the well over are out continuing push this year, last to X.X will that forward. have So in go out

goal is extend six-year X.X as that like to experience get moving that in to expectation more be continue But life. our is six Our we as in capability towards we'll we out towards our that years operational manufacturing. roll Gen

Michael Weinstein

very thank Great, you much.


comes JP from the question from next Your Paul Coster Morgan. line of

open. Your is line

Paul Coster

And much. question. the thanks very Thanks for taking

a the the be at pace sounds statement? Are essentially investing it you to you you Is growing which capacity are think that like can you are this on So market growth support? is growing the rate you the at leaving that year. What table? Could true money master?

Greg Cameron

XXX in put relatively capital stack for XXX,XXX more flexibility. great now square in this We're that And put a a it's giving in manufacturing, us got place, the to three we're there's spacebar we manufacturing balance question we've and our lot Yes, we've very efficient. it's Paul. place, secured sheet stack, happy can megawatts, that feet line going lines our there, first and

megawatts So for capacity, we get an another the electrolyzer in XX million, put that'll $XXX cells get we bad to two XX, to for to and capacity. towards fuel get us of a of XXX gigawatts that could total

in course current the capacity. that KR our to that back is capacity, think where don't the list will we're and limiting year of add that timing Board, I So we for we that in it acceptances expectation of be but and additional based manufacturing at full I are sometimes orders, our our when the my on

So that don't run into we situation.

Paul Coster

to now? locked you could Is revenues? that is it it do just in simply, upside conceivable you've to XXXX Or

Greg Cameron

we've the of the items, lead got we've operationalized towards Paul fully going in to think really I ordered place, they're be Yes, year. we're putting the long end space, back but the it not

support start So that. we into online that But on a expect like that the and will book, you are to limited build we bit come move and we order growth year. as ‘XX, capacity

Paul Coster

it. Got

little just the market. on bit a international and Okay then

sense to that's moment, career, you you've his just going haven't it of us on focused you the Europe, are? give parts into you know much And so some other else you build customers and markets? to the because, and best mystifies Are to actually at which you happening hydrogen. you've a they little you team talked where still Asia, mentioned got and it so going are So will of And what's hotbed of of come? it. think your your then but it’s follow Can now the prospects

Greg Cameron

of little in phone really extended this good the early little He's a different especially expertise X Europe. Azeez team. strategy bit geography. done It's A.M. a market, finding of job industry some I Mohammed’s the on morning in at with depending upon was

look people can that some help partners For advise as for out. we build to

in there our invested, the where As but technology in opportunities there is a you But Euros know, there as Paul, there around especially think opportunity fuel resiliency hydrogen everywhere, Europe, being the are amount electrolyzer. huge maybe especially it. opportunities cell are around definitely we are is for that of not grid, well, strong our for

on well. So France, about Spain, expect we're I you are you'd parts Middle to resources there the I putting about attractive be And think that is the engage, Germany's, begin East, are I Middle on ones the as us the to ground think the East to think of countries incredibly attractive. U.K. think And working the the should Europe, you think Asia the

us. will hearing that very over hopeful been the of that course out, expect year. these I have the those bringing be you for building So I'm about opportunities be And resources would to the

I huge think opportunity. it's a

K. R. Sridhar

heavily, market And lead factory the have of asked, clear, they KR, soon until two our sure already we of sheet made and use seeing right security financially. the our These stabilized the questions made got balance that asking in as of as the are Paul assets money well the much to out into of we in product think starting cost expansion. factory market in lighted And put we we is expansion, sweated and QX, prudent the it cash. And as, as that we as both we green I this very And this us. long invested you you should as be reduce we've are the and to expansion. in that questions maximum visibly very for add that, we future. the are I a is is the invested it our secured had

So see expect, this States starting well as as expansion internationally. both year United the to in

Paul Coster

big into with Or could of open Got then coming it. it's you and joint go easily seem and My the I'm embodiment your grabbing, to really scale is, only chunk, every to know question understand? space strategy third-parties this competitors in venture triple, any you've the then last easily in afraid that the quadruple opportunity entering is sort are to fast a cash this the that's help other third-party be million $XX of $XX of build gold, to they're capacity seen there partnerships of million you Is one your scale, you build and another, double, capacity to along accepting to? then to could regions. of in --

K. R. Sridhar

XXX our the it. think in that our we management risk. that to went on for I do make that don't our whether years, And technology given for could happen and nobody know can out. investor XX a anybody don't appetite question our Look, how worked employee leadership, team, years we we have I base, think

take. to energy and is market market for person This prudent comes We have something most the the of the need large, We so first grabs of opportunity that transformation the appetite dollar. are to what to hydrogen an risks that. risk, not take and flexible, who automotive is the it's the the the or to we for we the capture, do produce to be unlike carbon to use people other And market. cells, fuel are of fuel kind any either multitrillion factories industry do, market building, to electricity automotive for able build we that think

it. at we look you If both of cover transportation, ends

the can it We scale at site electricity small we at resilience. with at do can it look you utility for capture. carbon right If do generation,

can industrial heat, electricity, by at replaced If being you look electrify. we

have for don't our these use to systems. these building can to capacity, market, within one that factories or where So build time other have we market not that platforms, we a all capacity develop a we are wait for

approach So And are if prudent with it. how for build we we building comfortable is to future. the think we the that very very into and marched

about we want answer that table opportunity going prudent we line, we it'll to to As think on opposed that Greg market money as people arises. make sure going are what develops, earlier out, to develop into. leave now not than your focusing But are be the to when the top question the watching we the pointed are on to

Paul Coster

Got you. Thank you.


Oppenheimer. from the Your line next Colin Rusch of comes question from

Your line open. is

Colin Rusch

guys. is backlog much so of the Thanks international of from us you revenue sense expected the Can give a markets? and how much, coming your XXXX

Greg Cameron

hard it's all because their price not timeframe backlog different. they price is the On -- acceptance

complete year, large our ratio it, on similar as get will looked of answer that are we shipped But we we bit very there next that the expect today installations I I'd little our deals to some it. get in the kind internationally to of I'd this revenues the and based on that on this year, way their very the back go may would to year. into the ratio is of some expectation size, U.S. close through course be internationally. had the year, I a say are early think say percentages, broke going what total look year would the I will total my year year like

Colin Rusch

an capital out? where And available that model you're of rates right where lot seems would to give to capital And doing at now, that of give your terms in is the you they're thanks. pricing level interest perspective, kind project me pricing Okay, project can then awful enables? sense power a pricing that the what a with It from there's of of us customer?

Greg Cameron

process, capacity. capacity friends hope out very The as on remains it where very the we working our would partly buy to as couple We're from I places the bills that on most to it, with but the improvements that of extend, the inside own we with I to it well, tell for that's price us in sure it, of would we are securing more our work all there's it's by was that. that only that some understand in expect who definitely industry our of so making That's make whole out through create doing definitely that there tax that biggest you on And remains credit and the are help would of that effort driven as not providers make we easier. it's capacity processes some an the not in behalf to of while we're a traditionally, to amount The providers issue ITC extended, So issue bringing ask now. in see capital increase. make the continued it been were outlook, go the decision our it We're marketplace in encouraged that tax quantity but for given of well new capital. the that's capital. there, our I'd to biggest customers.

Colin Rusch

much, so guys. thanks Okay,


from the [Indiscernible]. comes of question next Your line

open. line is Your

Unidentified Analyst

Good afternoon.

As the you transition the are the X.X in from making process X.X to the modules. of blue

you going sort could would of ramp little the while far a probably more curious, volumes am how X.X. up of does as I unchanged just manufacturing or about Just on curious, the actual X.X you in talk -- happens relatively be implementation versus existing installation about as you transition installations a advantages X.X? in new are them with do difference out as just X.X make brand rolling to to upgrades the there a it place or all to

Greg Cameron

question. great a It's

X.X So securing the part we're how that and new in we're is California. manufacturing of operationalizing facilities that

-- to the are of are because product, it. not does our to the we've will to X.X. great on we doing can cost we line which once to way a that that backward expand So X.X. specific but And complete the part buying are take our a shipped. find to need, it it we X.X, for out one and And compatible I different in destruct in the to And is, that take that of tooling everything we're we We're it's part, lines operationalize what we rollouts most technologies. all our ultimately and always which are we different customers the going within -- ways space. around of technology we we're continue from two three figure tools in Plan out process the all we'll

as process. -- and supply new really be on, of we to for the X.X comes we'll our they X.X begin into of into bringing And it'll some that'll part the our you to us modules we'll be part start And And there. as service at installation your So of that -- replacement installation in technology the with. point, fleet our can bring predominant our part that'll offering. that'll continue be of that be power just part out

Unidentified Analyst

seeing is marketing it wouldn't clarification. new your up far Great, international numbers. the But sales a of be company's income bit business about just and ramp mean forth? it for any needle advance what the realizing again, and little having in good full success thoughts pretty on new international maybe talked there as touch, for and And that thanks expenses, I'm to expansion, a to going sure move in might cycles? in sales hiring, with that the revenues so on more also we're from, you've partnerships from as that chief point distinctive

Greg Cameron

sales but didn't it team. the going year our of in saw Analysts of big in up presence sales as gross show hopefully, technology, our but a investments, will posted from at our out we R&D a improve marketing we're marketing R&D, to We're reference only get XX% a of part our not lay building Yes, Day. margins of going it and that our XX% no, that expense. the lay is we we page out to out we internationally. to our to are to will to making our I in increase be our on, but our part and Not is to what in laid -- investment each as that liquid only you financial part it model And here, included my comments, it part and

to model one SK be use think what I right will to we South similar with we have in true partners, Korea.

focused our through. on And build they distribute that direct sales us finding wouldn't a internationally. is to products out be are partners to will So these expect -- force But their I team in us and only types to helpful to that partnerships very going geographies very the make very need. be to senior build we're people to that but introductions, not are steepened can for of

Unidentified Analyst

Great, thanks a lot.


comes question next from Your Ben Kallo the Baird. of line from

is open. line Your

Benjamin Kallo

Great job.

differentiate second that difference their capturing is. between the with like with doing do I guess from question plugged question, Or then them about a that? there the I'm that? with solar is in maybe you and stream revenue can trying bricks what capture? another get SK or with like to something what is COX investment. you're you Just what what COX a Like or because do And in them just

K. R. Sridhar


it So short. me answer Ben, fairly I are that keep running Because let question. we over And will time.

operates those first Korean their formed energy many units of And SK. And partnership are businesses. before a Look, they question business of so as each they lines the one on and large in they with have conglomerate, business. they us were energy independent

whom see Let’s and and Korea, signed stationary with forward we is [Indiscernible]. very SK strong, And working has deal of SK the also E&C partnership that electrolyzers from the with in say that unit and and going and relationship our we, scale are is well. the parts on was hydrogen different have types

We processes. there that administration are understanding at other carbon. respect is that COX, they up deals is capturing to transformation. this XX-Q And to they of subsidy us being that many capture of will other amount And a And an play cases signing partnership. that not It provided early COX very applications energy be definitely exclusive so in even there. and at definitely that but application. not to other it's it. But COX for the becomes that days for in the there'll to have upon our strong use a us. players fact early dioxide to than at years, just in for that point With like utilize a And exclusive sequence of industrial be completely in utilized for to are rather committed be is it industrial for need the to for one you uses And not it will are very them. capture to They improve COX But are are will this many time would areas automotive, and partners. least carbon going large. few there be carbon generated the for the federal lots they shows

Benjamin Kallo

you very Thank much.


time have last question. We one for

line of Raymond comes question from Pavel from final Molchanov the Your James.

open. Your line is

Pavel Molchanov

we Thanks tech level, for one. in ask This one's high of is question. taking low. kind of capital, cost extremely across as the green just I'll see

But wondering, any many ago. terms leasing model years sheet? of revenue in away reviving out You appetite own would on moved of electrons business be the from have Bloom your balance the recurring there the I'm assets nature for

Greg Cameron

brand think our It's is to capital we're next the you. about. last his I is who $XXX balance leasings think technology, in make it's, we our and had using GE good management. if our in where as to and investing in hear in something want in for sheet person And capacity we investing But job, billion product our manufacturing Capital it Pavel. today, investing sure really definitely we prioritize it's

work be out given operating time part, teams up the attractive are built there, company. what there's some we we we to will I'll that's providers a future our our in maybe sheet facilitate take on of to basis, to can over customers, things competitive who do willing where that. most would then them to in is talent capital sources some there space. of build I our the our be in capital and help where where think on application. am a of structures the expertise and which we're we've use new had opportunities for given to some amount them with look new take had at But have partnerships And for some own leave a on have line of especially find capital providers balance wouldn't be if need as great complexity finding we find other different I been areas, and anything, anxious people that apply of can there, help that, probably one that they I'd can't cost the we to or with here, leverage the technology that for few of they'll we've our be the right, it had to that other

focus given So, saying don't given to people and leave our sure leverage who my think something from we're the about, not priorities, I background, to there on I business it's think the way haven't. going especially but growing

Pavel Molchanov

much. Thanks very

Greg Cameron

Thanks Pavel.


call for CEO Q&A remarks. turn Sridhar concludes now R. closing the today. for I K. to That

K. R. Sridhar

much. time. running, know that Thank we are I the you very all

to the So XXXX If so our stakeholders helped our a tremendous where employees, of about customers as I'll costs from we under thank coming year grid. keep place, short are electricity our to and to value at of Resilient circumstances. electricity power, are where these challenging a you have support. continued this disasters, future don't proposition. very are, you today. can say worry your about the thank want you to stronger into to we all them. strength for company, shareholders, any higher, we have the you about just who I look In we much with natural to don't commercial $X.XX or Think buying for economically compete that worry

because have sustainability proofing don't you. we're about to worry You future

get start can biogas, with gas, go use natural capture, You can can can hydrogen. carbon to you you you

that a for your you using if electrify the -- customers, vehicle, having can it room electricity water, polluting growth. our You you you control for need can new with combined best States where that today. United the of electricity least and offer with the the proposition approach contiguous that XX can That at States we option not means customers so majority you. is not air, our existing your And we United destiny value

to also of internationally addition we're what doing Cisco. that, In

look XXXX. we to when So

capacity. excited be are to We building more

a future have will that going and excited great line growth optimistic are forward. top and our year We we a great for

couldn't positioned extremely Thank we well be are much. momentum thrilled We experiencing. are you the very and with more


you call. for Thank today. joining everybody today's That conference concludes

You disconnect. may now