PLUG - Earnings call transcript Q4 2020

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Operator

Greetings, and welcome to the Plug Power's Fourth Quarter and Year-End 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. [Operator instructions] It's now my pleasure to turn the call over to Teal Hoyos, Director of Marketing Communications. Please go ahead, Teal

Teal Hoyos

Thank you. fourth year-end XXXX call. the to quarter update and Welcome forward-looking This include call will statements. contained future information. of or forward-looking projections The statements our position state our or results other forward-looking financial operations of be We these of Securities provision forward-looking and Securities contained intend statements Exchange Section XXXX. the the Section of of forward-looking to Act for XXA to in Act safe covered statements XXE harbor by XXXX the of communicate to We believe future to investors. is that our expectations important it

risks statements statements the XX-Q quarter the time XX, not or results However, reports uncertainties and statement only Plug over statements unduly are end this September June made, and as to XX and and point, discussed investors forward-looking well XA guaranteed discussed call our These would as Andy to after performance Report do quarterly such I Factors cause December of was the which intend we Item or new as XXXX CEO, file forward-looking Annual are uncertainties to the Form SEC. not forward-looking in on future At information. the subject not to result Marsh. this any from Risk it as or XXXX, those cautioned update time or undertake also ending we Form materially differ for with day call March results. readily report or fiscal Power's be like actual factors, to in XX, on speak year statements are to other that could and turn a filed the should to, XX-K including, XX, for on rely statements performance various to of under from risks limited of but Such not

Andy Marsh

for Plug year. Thank the end a world of conference Good as everyone joining for Power's morning challenging and year you, call. everyone the you XXXX was knows thank Teal. very

acceptance the building this witness world's The Estimates been We At for for can green have XXXX set than as as and PowerPoint work our have by very the ramping of been critical we made more hydrogen, they're participate lead Plug that moments. Power waiting cells. old building We of to how commercial to fuels. for technology globally Plug XX fortunate market experts decades, was our the work and at Powers position the fossil at first XX% will help energy today. moment. right hydrogen hydrogen, years to at by have and especially technology that describe us fuel off is XX% represent then world

Our first products app material and of [indiscernible] watch built full the their the handling set and proved capabilities. suite to new Company, technology

us that Our service that hydrogen positions turnkey provide stations providing fueling end-to-end today. selling building solutions really and aftermarket sales fuel solutions and including

with Walmart into missing in relationships Our our they improved helps Amazon our offering, how insight gave but identify also the links us and portfolios. us

us XXX had that This hydrogen, Giner company, convert hydrogen. electricity the technology electrolyzer decisions declining to to day the goals purchased renewable to recognition the in we us vital relationships tons leading of capacity electrolyzer year. This liquid a plant. Power's a tons more past for We these hydrogen a the made Green finally, private was corporations, where network, is that U.S. XXXX at became reaching hydrogen to practical years. closely last nationwide that we the hydrogen of that's the goals and over to hydrogen build also real, to to insight company electricity. Two, drove trends per costs large XXXX. X,XXX ELX, in are Hydrogen, day One United a green of purchased of make expand technology macro these was is market sustainability meeting many a expertise in globally by to XXXX. insights Plug couple world, and linked The opened the the hydrogen three green degeneration scale necessity. large green And first by built commitment first sustainable

auto to and XQ. solutions commercial to EVs, be vehicle provide experience fueling JV they unique over will vehicle electricity the offer tons both to Apex sources Plug XXXX, late Power. by XX partnered Plug few selling will full me tons Power conglomerate cost turnkey Let formalized to end hydrogen. that renewable to recognized than we need recognized a XXX hydrogen solution available the complete leading which was be vehicles the hydrogen Korean a Power's offer their and Plug largest have company light low SK, second day to Power in market. only with of a Plug the early generate to second stations more Renault, quarter could the the in U.S. the industry. abilities they or per in green By From offer will by recognized name global manufacturer Brookfield of green to that

from We be everything and plant, will other large stationary products, scale, hydrogen apps. electrolyzers building

with this We quarter. accelerated timeline last Korea. mid in JV Plug into announcing Plug on to tons Spain's green night. as be you XXX SK supplier, plans Also, hydrogen in our will in announced may We'll finalized generation story, Iberian for a largest and by JV the second more will third Acciona the And been build global second partnerships the build to renewable be through investment Power has XXXX. The billion Peninsula. electricity have step gigafactory another deal $X.X hydrogen and Power four seen, formally green closed capacity

Plug with is billing, generating of and increase the plan. our from We for for afraid charge working the XX% now non-cash the In right and see that million gross GAAP the side excluding need deck we financials $X our XXXX, we accelerated plan more a accounted billion We're in over the of line opportunity decisions. will operations $XXX at benefits to unique been business. XXXX, cash in needed a capital, we'll experienced grow. which is achieving back This XX% one-time in billings warrants Now to XXXX. making never our time of gross a have clears decision in million. in $XXX tough already bank, future, for how We've with the to future end invest. XXXX. Power now large market thoughtful Because the for expansion and quite operate In

for XXXX JVs our the with as are that margin goals paying and positioning billings critical finally, $XXX goal Our annual $XXX will achieve four, million our Company gross for available may margins Renault of million, by any a the achieving view Paul XX% and continued SK; billion and are the and gross high quarter. expansion may you indicator $X.X exposure two successfully gross are other clear, teens We billings or launching investments in business in fourth Three, via off. to XXXX. questions gross or XXXX, for acquisitions, which in relationships; have. us now I for partnerships, positions

Operator

be now from We'll conducting is Craig-Hallum. session. Eric question from Thanks. [Operator question-and-answer a Instructions] Stein first Our today

live. Your line now is

Eric Stein

So faster announcement. which the in the but areas maybe obviously SK the do think remarks, that move prepared than how you opportunity investment clarity do accelerated mentioned you partnership since view and there's it's into How maybe have the some you others? closed overnight,

Andy Marsh

Sure.

out saying, that announcement I So, felt conservative. think started we Eric, I we when I by made being were the

million business this development this much times products the certain three initially. expect thought later that, are quite plan. meeting We first of two be a JV with have we'll And will to not teams think developed honestly, in we shipping $XX than would actually We've that streams the that six even generation. I large larger identified be next opportunities, opportunities That's week. early one work year I three year. scale for power enough or are

sustainability. commitment I a think the a has second is SK real to

stations. products next I and for year. on hydrogen into over usage finally, generation moving with be see And a early electrolyzer lot SK going of you'll think there's fueling work again

Eric Stein

I Got not it. that I that's just large the what to And think, XXX, on the scale. clarify in heard

Andy Marsh

time. the XX% the remarks, Yes, we Usually, that's I in half not level as this at the the in -- XXX in prepared at mentioned have we're at XX% moment. the XXX,

Eric Stein

that Can those XXXX? four, you you the remember give in this from four then, don't that maybe you outlook don't the handling, year you Got I customers of have. in one sticking with see recently And and but pedestal early and it mix get typically least, materials the topic. curious type four what the added, at four those year

today. I'd you into to what love have and customers you goal So you've that got, you've that visibility hear is others the potentially given that XXXX four from add some

Andy Marsh

and we Sure, deployments there's our four probably range that the even. that's rest be those shipment those million the this customers bit in That here in-house four a year. have represent in customers already will of one others, four and XXXX-XXXX. circle represent so and $XXX of XX% between for think more of those little kind like that's I XX% available And will split Eric

Eric Stein

to of in got current curious that type have visibility but little typically a better bit XXXX, not just mean you XXXX. forward it. the than Got do XXXXbased the visibility compare And on you've of And early. in given does maybe But year plans? historical? on how if what have into and forward that or you year, just do year the you outlook guide but terms I their

Andy Marsh

the helps I be think insight mean, XXXX I that have with on here to three XXXX. us going items to Yes, there's able into

talked about many with all before, of we're not term doing these after I've material planning, handling obviously, we're five So, three and years doing customers these year planning. to short

take to was into at $XX initial a everything a that already with how factor some a good of the I with that's XXXX electrolyzer as very increasing be And finally, doesn't close as electrolyzer back well plus eight look achieved billion like as insight handling good And the goals. And we're with there's year, for in sitting $X The you of the deal now, SK seven and year, activities. know or business think have their business. we'll in So, range. have when feeling deployments, about built this strong. this by we of funnel the we'll And we we've material funnel a that every been and very, kind I -- take million sales it. up especially funnel

Operator

question today's is next from Our Rusch Colin Oppenheimer. coming from

Your now light is live.

Colin Rusch

rollout? demand renewable on guys start into, queue where And thick size grow hydrogen you're terms Can an you just specific identifying that is for terms the of supporting then, of the us give in of in see update behind the how as you in terms to at, projects, emerge? the sites on side could that you

Andy Marsh

because around stage. So valley so very the four permitting actually development California but in them, and of are northeast, longer, which we into land one for as issues in bit the California, that. [indiscernible]. in moving a Two one little green already southeast, know, in take have be of clear, Colin, in three we can the in hydrogen you the California can own plant, sites,

We to hydrogen, probably have generate looking XX at which ability country. the spread over sites across for are green for XX widely to the renewable

are two I go plants think up. first three two there see plants or you'll

in in I think one one I southwest the in Texas. see the and northeast, one

Colin Rusch

but one chosen Certainly, in connective power sites the Okay, in that stabilize is be guys and opportunities, going opportunities to build help being for mind? of the grid, look adjacent kind purposes hydrogen some multiple of with at those some of opportunity sort storage you are intermittent regulation that's applications those for to type also renewables that as tissue the or grid? the terms and you being for an to larger sites of those

Andy Marsh

to but that the generation and the give I'm -- be these been, about as But going so going Yes, issues that. cost during connected. defined are sites deal prices. type as clearly we've wishy-washy grid great All to four leader, -- say will nearly obviously permission. a answer a wholesale you thinking the not There I'm to.

really We with I to user one providing at we're you, and farm certainly First recent our surprising look at how we our the we way, looking on especially not on put Texas world. but we use wind Texas. And and the But And green can clearly around and back time going hydrogen. the right storage was are wind actually we when we mind, defined, the the is at the -- also wind looking wind are to successful work very the farm are foremost, hydrogen in after time. we certainly green see at at what it committed storm. the right that that's the grid the customers and activities in and tell energy, back during of generation and by how

Colin Rusch

Thanks, Andy.

Andy Marsh

By those way, case think the the help I great to just Colin, us that's going deal learnings. a in

Colin Rusch

take We'll the sense. it. Yes, rest Appreciate that offline. makes

Andy Marsh

Okay.

Operator

from coming Our you. Osborne Instructions] next is Thank [Operator Jeff from question Cowen.

Your line is now live.

Jeff Osborne

the morning, guys. Congratulations so good success on Hey, all far.

fire wondering, you 'XX was for lot sense a And XXXX. you for the I got growth CapEx the trends of give you've for heavy just very of expense You've you gear got us that Andy? and if operating modeling can up as a through talked 'XX in for purposes irons about, the

Andy Marsh

Sure.

from would on our There billion build achieve XXX to these modeling to -- $X do, long years. probably is to to circle even somewhere next plans million of everything of Jeff, tons somewhere reach these still we're the to with day looking in CapEx plants. for I a billion that $X.X term. sheet the hydrogen surplus and CapEx the which with I balance our aggressive So done range, a hydrogen out to We've five property area, significant around most expansion support the see a plant. going And we $XXX would

As I would do higher that. this to want there expense to you expense. to comp want be may Paul, comment Jeff, OpEx up as far year. you add expect may on to XX% Paul, that?

Paul Middleton

Yes, think. I'm can you me? sorry, I hear Yes, Andy,

Andy Marsh

Yes.

Paul Middleton

and not growth good the number. going great, year that in really think platforms. we're margins. XX in some lot apologize, as things in we but in we're or growth I quarter Andy these lot definitely Jeff think to of and signals mean, further. a there's investing focus that's right. so gross opportunity And range see I sales this XX to And The happening, I Because the the strong even per there. to, the there's of and the I is accelerate fire is, I to see And a be for think all low one a key things a and alluded, growth OpEx CapEx going are

So, you that this will year. see some of

Jeff Osborne

XXXX? is aggregate quarter of And the the number rate the or XX% comment, all fourth it. that then, Got off run for

Andy Marsh

use Jeff, this. ahead, you Paul. Go I Yes, hear me? Paul. would can

Jeff Osborne

I can hear you, Andy.

sharply. sure up quite Just I just make fourth want to quarter was I'm using.

Andy Marsh

I no, use no, say, I basis. Yes. annual the would

Jeff Osborne

there use And upcoming it. all sites CapEx a proceeding just leverage? are the for to as heavy cash Got over time these these given then, balance? we Are can how point where the out this facilities? Or now going along of at the in as year we years be a straight pretty well is

Andy Marsh

let I'll Paul.

to think going coming I do We've done think I you have So, there? modeling I buildup. to on to but make sure Okay, think we you've have sufficient half cash think we he start balances in on our during it. see it Paul, Yes. I point, I leverage answered into as And -- during year, a the leverage probably start going guess hit I'm second take of to your are questions. No, to the Jeff. to you're play. seeing you're going own, good the

a that to on to if position conservative can there, there equity, you'll the So, don't right, going work that from been and a ourselves, has be probably now. But in we expect past. it to do we think all that with we we I see said did basis, do

Jeff Osborne

one last my you, Andy. And for

the two joint in joint be will in at in the just of question point time? these are the you the can JVs that of accounting results ventures, ventures more of be the a confirm That of Paul, treatment a be terms Just terms line? but might below Where of will consolidated themselves? Or revenue? those all for we

Andy Marsh

we I we're can getting in consolidate, to and know working the make there. think we're negotiations sure I

that into that you partners lot from of of that the Jeff, through the because, a know, legal that a working understand think accounting it. into the that at I both Plug work goes there's criticality lot goes as

Operator

you. Thank

Partners. today question is from Irwin next Craig from coming ROTH Our Capital

live. now is line Your

Craig Irwin

for question. thanks Good for. my I'll say and congratulation also morning taking

Andy Marsh

How morning, you? are Good Craig.

Craig Irwin

to you. Okay. I'll need to congratulations say

let's You in an phenomenal guys absolutely XXXX had and continue that XXXX.

So congrats.

Andy Marsh

My Craig. with Board you, agrees

Craig Irwin

They Good. should.

in what's be this one away but the green now? the oil, going of us cell to tremendous we partnerships sort Andy, and about is out see in you economics, percolating appetite is you from new really to of interesting. trucks for to-date? cell to update the Are the much, there? maybe opportunity successful the for So, Investors you've potential trucks, companies fuel disclosed move there things customers in status the haven't talked given actually want long-term there market, with for on Can hydrogen even on out there What's green, different on right really be up fuel right?

Andy Marsh

that, So, with Greg, quickly. has good do at the model the that I Europe for moment think we're you looking that can is market. do that of that tell used one to how forward-looking our to I we've Renault deal to in a express And thinking

also know vehicles concluded, just old one office happens the States has in supplier cars traditionally, of we've as world, elsewhere, vehicles. to purchasing have part in tier a be up auto like with big auto just focus I JV you're just office. about do parts way think a end don't in jointly vehicles, suppliers, a to we a what industry. building done the if have on and auto going couple heavy selling we And doing on items seen that the duty because don't want the I just discussions the structure the you instead with And there's you're think is, the of CEO it, I go you United first a the especially and if industry We that a

of of will One pilots our big shortly. actually -- be doing two customers our very with

work players who with like Bussan. done are folks already two of have also kind We

Plug some believe initial start space Power. makes aggressive of hour premium I hydrogen in to green at have margin to quarter with to green green today. fairly looking this deployments. early with fourth really I green. and And I that, a hydrogen, with want amount through kilowatt -- hydrogen how make hydrogen, for Sanjay for very More for by you huge Craig. we incredible has electricity create know, under sense. When you've in customers on pay like but green, think $X.XX plan we the top spent around we quarter the finally, comes Renault, hydrogen fourth better as premium And, a we're, vehicle makes what competitive there light That's apps think been rollouts to time huge, first with are especially most think product a fuel, people, it that me the commercial thinking where be a time, and nobody's pay to slight great pricing can offer long similar our of a a quarter,

Craig Irwin

makes trucks. That of question sense. lot a small fuel fuel to next is cell potential fleets My Understood. trials, the about infrastructure of

large a be Can under to their pull already potential down got customers? Incentive out network, potentially So that fueling that done the installation and of its Have fleets, When infrastructure their could supercharger some or California do expect out in? didn't the year, Plug incentives the church about your the of retrofitting last that so they work had building partners, the Programs. to forklift start some with you mention some existing there that that update with maybe center potentially you And from fuel you distribution type achievable? the credit, more on us of doing basically cell truck and centers by Can makes charging chunk that? work. maybe talk you $XXX for million a of distribution XXX then you importantly, these just comes quarter Tesla in applications million network trials, infrastructure

Andy Marsh

I'm LCFS look kilogram. we especially looking at the where credit hydrogen with come be with can look trucks, at at we believe to examples scores, the we believe we we're CI up at I can you Craig. a to since that for When the we pump, to in going California, that, two hydrogen green $X moving use if credits So, be look

$X does those very than that hydrogen Congress circulate mean green -- almost So makes who green began hydrogen hydrogen, around Green are less costs it diesel how up not Biden for makes fossil for the here green with kilogram credit don't the our choice hydrogen we makes a make depending green split competitive. per very, who That and incredibly energy which There's and significantly. to plan, between also may the hydrogen. listening understand I to probably is Climate bills you associated suggesting great the fuel that

huge be So, and I a great the a opportunity margin long XXX Sanjay his first increase there think Plug deal term. to supports tons that will up for once credits, government of Power has and real

Craig Irwin

for Excellent, Andy, again thank you, my taking thanks questions. and

Andy Marsh

Thank you, Craig. Take it easy.

Operator

you. Thank

Our today next from Jed from Dorsheimer is question coming Canaccord Genuity.

live. Your line is now

Jed Dorsheimer

for Thanks taking Andy. thanks, questions. Hey, my

Andy Marsh

How morning, you? Jed. are Good

Jed Dorsheimer

I'm doing well. Thanks.

Andy Marsh

a to partner's to going with I'm I the line my on want do check me. back just know here. So if quick

Jed Dorsheimer

Okay.

Paul Middleton

here. back. I am I Andy. sorry. out, Andy. I'm why I'm am so don’t Yes, I this here got Yes, but

Andy Marsh

all Jed. Okay, right,

Jed Dorsheimer

All right, perfect.

kind gets side questions, your couple I've years, guess I the for this. if paid getting I strong. based and of I XX be been handling little XXXX to bit. in four warrants never mean, structure actually a the just on because situation because take But, where material two seen at in better might major of one, a the So, warrants look stocks into I've served this of it's so literally customers, are Paul, fantastic kind customers your on your a the actually it product

you, assuming terms the exploration pivot just So that I'm wondering the think the about expiration that to does I'm visibility how too? here would in of with Walmart, Paul, or of this Walmart how starts bookings do the exercise, kind how away, and of also only because here now change Amazon, when

Andy Marsh

to going Paul. I'm to it off to I'm take going question. hand that

most the been little wouldn't have warrants I'm and bit the financially. sure success basic that strike have they not, have Power say I'm warrants critical of basically term off term price the for Plug going committed long goals. see meet they Paul. obviously both Jed, companies Amazon, any both two I financials you. that business and them introduced it can can opportunities just need has to we that beyond and well hydrogen. grow them they of But with are hand up they and Walmart -- continue the to So, Plug the to of actually exercised. new and a to in partner as fuel that products help both other to It's is And help they in they not deliver do within. green for proven that quite find long beyond their Power I us to are pleased to cells On happened. and what that that investments directives goes They their with tell weeks to -- you climate propel last this to me one note it hydrogen interest hand three Paul, of us a

Paul Middleton

And that the I a customer main those those by going guess, as results make easier in charges. make using I Andy. of go and activities a simple these the in we've won't There But that and without move to significantly should were that that and is we And expenses easier would Thanks, it the which closer the revenue the more as sales think all which means fact I comment this the number, terms we reported forward. communicate, the I revenue to and and additional that, it on been be would forward, be as expect interpretation make gross reflected lot charges are for future, one well, as by at GAAP for point. billings forward. number all

Jed Dorsheimer

money buy their amount paid products, and mean, just their significant at be if is commitment. not Got They it. stock just challenging I are of But it, a look to is and actually at your to at I clear, to being strike XX. XX, take product. your if I'm And price

change the the a does kind once that core that guess expires. it relationship So bit really question. of was of my I

think I isn't? you on answer the Walmart

Andy Marsh

still have not clear, lot that and all companies, to exercised. been a have be to not going They name. customer specific I'm Jed, warrants name And of those

Jed Dorsheimer

Got it, Amazon as well?

Andy Marsh

Amazon last the well. Yes, have warrants, Amazon exercised. over as not been

Jed Dorsheimer

like business to Just pivoting congratulations the a at of I if was looks the deal. electrolyzer we kind Andy, upstream, -- looked just fantastic by I mean, and, wondering the I on way, the side deal. agree, I little SK the and a bit of

sort complex the of discussions those you of, the be that thinking are how reclamation would or kind downstream one reformation flaring? at I'm versus difference but gas risk systems. on kind markets for between about nat how experienced side I'm the of you that on green driving how in look shakes midstream, have in kind companies. the discussion, methane see with the is the things methane main natural do partnerships Jersey, refiner, If profile a of the downstream, plumbing Is chemical when it the I'm through logically just the just and I pulling or of without look more companies to that's like are assuming that of of kind guess, see more example, where terms New will? -- using of a I you that wondering of you wondering starts that if companies the out, guess, in, differences windmill the green, that

Andy Marsh

goes about Ultimately, today. storage. an green And, that cell and you're you was be there about you're form. question, to a standards liquid to interesting talking think will But, and it one of distributed, earlier call, more, about I going slight hydrogen fuel be difference is most how in engines. that's And transported like need really the especially is generating I had quality So, and hydrogen to initially, that think evolution see, how will needs which up you hydrogen asking more we for hydrogen. had much

You're on-site more going more with generated. storage being to and hydrogen see

sooner, build about gas injecting for that hydrogen industry work on in today. so done maybe been some already pipeline. Europe, we've the can you're thinking the see when like you that going in in that storage, natural long-term like today. see gas you in pipelines, directly very, will hydrogen to close into how And plants to going natural of this, to Some I start refining caverns be very done is think is that And finally,

don't initially, few like, into increasing, up look I we'll those and Now, that see and grown our a anything so all Philadelphia what Having in like think gradually knowing process. smokestacks percentage that. that's going thought

Jed Dorsheimer

the to queue. back One last then question

of be going terms Just the reminder as of Can breakdown business, still and biz? vast that material equipment reminder of to this of guide if year, support as you us in a well kind selling the majority the as cells the is the of the market. of handling and to we split the looked fuel a just XXth give the

Andy Marsh

transition And would interesting will about material expect Every point. Sure. from come XXXX, to in material. actually the other it in large range. expects we electrolyzers, be and in And are bigger rest And hydrogen expect XXXX involved the road somewhere handling think we I in million is than stationary on that XXX to scale businesses between vehicles. there's million $XXX a where be the

Operator

[Operator Wainwright. next Amit today question Dayal H.C. is Instructions] from coming Our from

is line live. Your now

Amit Dayal

solid on secured of Andy, downstream SK, you renewable value these this in the et need some Do chain, Brookfield, companies compete Renault, So on terms partnerships with cetera. as distribution sort energy to you well the side you of side just pretty of partnerships with upstream if will?

Andy Marsh

Help us electricity, with Amit as of not because may to something. providing think completely I I'm Brookfield me probably that understand kind it's renewable because I missing

Amit Dayal

of we do partnerships as those guys? like types well you of others need Brookfield so Okay, or for some

Andy Marsh

more see of you'll those I partners. think

future. renewable So partners, And foreseeable there to additional answer see the you'll I will United States. announcements in is even in your think probably question be here

Amit Dayal

few there these any And if cost quarter. on then And million are the the in $XX in XQ'XX just could one-time could just into one-time in hydrogen that like could out there the come talk some any the be million moving says it Or It whether onetime for next play on color this, what us way? you be results, provide within are to the green of costs fourth that quarters? you issues, may supplier is $XX other and this to looks about costs maybe Paul.

Paul Middleton

there's at Amit. of Sure, a Yes, I going issue happen, hydrogen those a through say, would things It events that kind on, force to with it. costs their think some number one happen I navigate had that through, majeure incur frequently. of year one to the facilities end doesn't of close worked whenever we of there's we you producers

those joint But we've COVID, lot business though lot a announced through that we fourth from was there comment your obviously, saw and had thing in some and lot activities great of the on to in operational And of to navigating last a platforms success, terms quarter important ventures I side. of note the is with that's there. strategic are even and for new business some those. would the Like things. working extensively of growing So been of prepare then with the There challenges development a doing we've in companies, months, that new events. other couple and agree

early announced example. were for those of January in some And

lot accommodate So there's a investment to that. of

say, So every the yes, we things. big those and don't And obviously would routinely. that expect are I quarter, don't happen to do those

Amit Dayal

'XX, going perspective, And just margin a timeframe. on 'XX into then,

revenues. comments, if for of As from should smaller mix? What a of kind see we impact portion is Andy's material in revenue on becoming handling to margins start going this the shift

Andy Marsh

you Paul, that. take to want

Paul Middleton

Yes, hear me? can you

Andy Marsh

Yes.

Paul Middleton

a the take lot not we're past, is proven matters resources thing new and actually that One business go think core to using channels and resources Andy technologies into completely their in independent. we I markets. own said, and that the own have of technologies these they're like is completely other It's scale as because and

So keep leverage plans there's are our lot and and capability a moving forecasts north. of

the full businesses as going there. rate So be will should these the see teens be into this year north run high we on your in and a And the all accretive and I continue or XXXX. may even scale to I to basis. that to see holistically year, for on you're grow think course from of you're progression XX% think continue going in year over we approaching the be And

Amit Dayal

Got it, That's appreciated. you, what have I Thank Paul. guys.

Andy Marsh

it easy, Amit. Take Okay.

Paul Middleton

you. Thank

Operator

Tristan question from Securities. Truist from next Richardson coming is Our

line is now Your live.

Tristan Richardson

on question data side. the quick a Just

about on think can talked kind potential a scale it with of call, update the customer customer? pilot of is this early this of the possible that as see year. a now? this with customer? the the talk pedestal level days I then Is could you of for type here, either you've set you more see a data deployment about And data opportunity Or you customer still case? Do elevate to

Andy Marsh

question, Good Tristan.

in So, happening worst speak, the shipments we of shipments, XXXX. center one our business that to this in stationary with plans XXXX, of can customers XXXX our first in we'll that how pedestal be largest scale be largest and deployment rollout there the could as are large and and customers that backup one data doing customers, and

come customer top a On next fuel the hydrogen onsite over large-scale lot you be has centers, will and As large cells big, diesel of very, very green is to conclusion with that a of big the that few years fact additional coupled value issue. cost competitive the have generation. that, hydrogen, of sustainability data these new a the with aspects pollution of the

Tristan Richardson

scale, back the exiting a instead going purely driver kind of just of I 'XX supply question, talking out handle the accretive through margins the being is margin we think beyond? or thought some fuel the accelerating Is of team more think, a with handle about at it fuel timeline as then, point when thinking. function to this potential And I margin a supply or to and on into as year of fat

Andy Marsh

site take traditional for off margins, Tennessee, XXXX. made in Plus, answer we're I comment that the our XX to XX hydrogen may we be our some you in improvements own plan it will and year. in business. until about will to Paul. expanding Paul, beginning There XXXX want won't that. the hydrogen to Tennessee. give be to quick margin out with help our this on real will sights, I you happen margins in will sites growth the of which over increase Paul, our We're online. our but hand It you bigger late sites until significantly have my

Paul Middleton

things made businesses, their right, across enhancements I we've that the There's think vertical we've all Andy. that the opportunities overhead, leverage leverage, And supply I and mean, similar chain starting shared that going integration, in leverage past, there's design on. there's to that's we're scale.

get be that paying into our business we're margin so a will and significant some things to appreciation it in or contribution accretion let's largely pay to is from enhancement, off. those we middle those from, 'XX core all going themes, that but even margin the start as our Andy grow 'XX scale, and themes even of dividends but said, fuel of side, from businesses in terms current field as from see in So those are

Tristan Richardson

intensive site materials I one, your four more mentioned, XXX per site. one term if the of auto handling could, the on per industry is a I think pedestal still potential update you with on I may Is last is actually the way the cases to it basis, just be unit And that a to respect think, level near to high call, still XXX is is about customer? the kind units think foot for sites opportunity. And still good the

Andy Marsh

XXX sites, be give think I general, I'll Spartanburg that's has our Tristan, you in facility BMW So, a in different over an sites but different pretty example units. obviously can well

the top not stick structured, a Some be be not because bad immediately would them the -- some there there number that. quicker. I opportunity think can to may expansion with but facilities, they those customer some or And could fuel of can think order cells I of that go is XXX with of gradual deployments an new be be I add a on lot way that's there that, factories pedestal in

Operator

Barclays. Sutton Your next from question from Moses coming is

line now live. Your is

Moses Sutton

you break billion, some or rolling spot together out long-term see XXXX guidance, more how you'll price you do you you As contracts? them complete expect you off-take X.X hydrogen? And exposure? know of the third-party neutralizers? expect group I specifically those on the have contracts with to plans, In have sort to can do the

Andy Marsh

think working actually we of green them there's time together, we sell all a, or whether one we the ones whether the opportunities we're a electrolyzer in is, equipment space the of kind reason where there's and through So why I hydrogen. about was sell put

out specifically, be our hesitant be either way, I'm one go could it today. take Taking and could So to could just bit green that's that and great hydrogen. deal little a huge off why all really for pull it

of that's because So input side. think to trying to stock our we've people of both and I kind I'm going an think bills give about these Moses, and output you both price the an with going work capabilities. been ways When

how in the one about of power about, rigs grid that power, any bridge negotiation side, input Sanjay really thinks mixture renewable gap. one the an of really On have about thinks third incredible contracts. how any one can help these has job content, To parties thinks for a how done

side. we price the been So on negotiating contracts set have input

On big also but customers, price the i.e. it our material a set of customers, we handling will side, price have output electricity. the be of some set a

spot spot real the and for a enhancement significant market upside going it's margin on. probably of at pricing to So have very, look we is very controlled. us the opportunity sell when some well Yes,

power we green handling commercial they with hydrogen deployment competitive grey of cost at vehicles, provide customers customers on especially price diesel concern cost the sure by are that main Our is making in now who road they the with using competitive so hydrogen that's hydrogen, green their be accelerate can. backup material generation fleets a

Moses Sutton

going the to like don't margin for it in on no That's be or billion? XX net metric XXXX $X.X the just both longer guidance very for for EBITDA see and Thanks. look you general the and reconciliation And discussed provided? Is letter. expansion. range update would the helpful. investor Paul a I What

Andy Marsh

to So 'XX. jump mean, And acceleration I gross I think, all, in for Billings, I and an the Moses, equal, revenue after targeting of and hour you going did. with Paul let almost warrants. Paul, we're the I'm

and if year. So, add rate that. margins grace and run we're than expenses high looking of to at the in XX% for margins, last could higher teens $XXX revenue million about the you Paul,

Paul Middleton

okay. Yes,

Moses Sutton

And quote letter, above X,XXX one on Walmart me I last tenderize. noticed you X,XXX for in or in operations. the

apples-to-apples I XX,XXX, May. taken looking at there? any ads, not Or noted you've last metric out We're think an more recent like as operational as or of am operations? I

Paul Middleton

I've you, deployed units. can I more tell

applications I'll beginning noted, to actually their So answer -- in and already year have, coming. number we the where other the as our we increase more to so I centers, net sites this, we're internet of three going of and say into years think, we're centers is in this moving move Walmart's distribution

help to But we Moses, we'll So, businesses sold can you growing. happy that. reconcile units the more be tell you, in I

Moses Sutton

Got it. Thanks.

offline. Great. Thanks. Okay. I'll that take

Paul Middleton

Okay.

Operator

coming Morgan. from Coster Thank you. is from This Paul JP question

live. is now Your line

Paul Coster

question. my Good Thanks thanks. for morning. taking Yes,

Andy Marsh

you? are How Paul. morning, Good

Paul Coster

good. I'm

the build around there. cost that was understanding the press welcome prior to That to about So which the gigafactory what I high York out sounds State deploy million, in first million in very at in misreading XX New sure the is noticed I of I'm up, Am looking just that? you're the my of million. release relative expense for XX to $XXX gigafactory,

Andy Marsh

of as far part think I good over dollar that expense I'll years that Paul think personnel. of let coming I as you, the part and

Paul Coster

just to that Should in we the range start only assume and complement? still million $XX that gigafactories, CapEx

Andy Marsh

it's Yes, XX million, right Paul.

Paul Coster

quite except suggests the that others fairly also for it modest are barriers great, it low. And seems to that fairly entry which is CapEx,

and thought, all IP do involve, kinds obviously, there's how respond Andy? that to you Now, but knowhow

Andy Marsh

test to a It's think old the very about thing into incredible electrical and all building facilities. because is we that it was us actually tell factory And provided for now you went build may large-scale can an a into a generation building awesome allows required selected has levels these. that you, I switchgear first, of electrolyzer systems, building power

we so think XX% buildings, think And I see I lucky. be XX%, costing future won't higher. probably you'll

Paul Coster

get for the business? What competence high whose to gigafactory into not barrier technology entry others in about very it's to that the argument

Andy Marsh

step that. and say back I Well, would

First, you I start MEA technology, actually Paul, development. have customers, and the first, have to you should have folks have been saying, on who actually have we by to have working

from to look have at stamping tribal knowledge, I as what underestimate. before, I role-to-role you the you think always step to then manufacturing look developing issue stacks fuel people as IP. through There's of of the also think people always this when process, both years, for XX a referred enhancements XX mentioned, have place. and processing, been the, which I I in have kind there's at you and back over background, cell who've making take your For years even thought and

at build about I've with to an activity. with look you often facility got the right mean, the up. for Power Plug gigafactory issue thinking place. up, the when I there's the is demand. build the think people where building all having have could you issue this factory of I to we've I incredibly that item, an electricity at And of help investments fourth next right And to out to think the the able to as get already to and you itself, have the support rates at been really capital the low see make

Operator

like Thank over comments. to back for I'd of question-and-answer closing any the session. you. floor the to turn or our We reached end Andy further

Andy Marsh

And thank Kevin. thank Well, the everyone you, call joining for you, today.

in call. Looking forward to speaking first update everyone quarter our with

soon. thanks now. and So again talk Bye

Operator

Thank today's does you. conclude That teleconference webcast. and

disconnect participation wonderful today. We day. time and may you thank your a for You your at line have this

Plug Power (PLUG) 25 Feb 212020 Q4 Earnings call transcript