BE - Earnings call transcript Q4 2024 | Bloom Energy Corporation

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Thank you for standing by. My name is Karen, and I will be your conference operator today. At this time, I would like to welcome everyone to the Bloom Energy Q4 2024 Earnings. [Operator Instructions] I will now turn the call over to Michael Tierney, Vice President of Investor Relations. Please go ahead.

Michael Tierney

afternoon, good and you, everybody. Thank joining Thank quarter Bloom fourth for earnings you call. for XXXX Energy's us To conference on earnings information to press have supplement our quarter along that release fourth this posted website. throughout with call, we we Investor will the this supplemental Relations SEC with Form reference and our X-K financial furnished call XXXX

our include about the statements During company's outlook These future strategy, future are expectations, results, questions, we financial These your in answers this year conference our to regarding call, predictions XXXX. performance. expectations both make financial in that forward-looking business our full events our estimates markets, statements products, and based upon and position, new prepared remarks liquidity for assumptions. and represent statements may and

future SEC, these in they recently our known statements as statements to numerous and with any call. revise the unknown detail filed made discussed no XX-K in XX-Q. as forward-looking on with subject including deal and today's filed We are risks assume uncertainties and obligation most to Forms documents events, our However,

included A in substitute with on fourth or fourth accounting and call our available financial GAAP. GAAP Relations prepared between and website. measures. reconciliation are superior press measures are addition non-GAAP release, in in with for earnings and non-GAAP a accordance the is not non-GAAP to Investor performance our to accepted this measures quarter financial financial quarter in of our The press release and XXXX financial XXXX measures prepared to and not we U.S. During generally refer accordance earnings GAAP in principles

for Officer; call Dan and to an of Founder, KR our time the remarks, the Chairman Berenbaum, highlights will on turn the call progress, KR will me today quarter. to After begin will and prepared Chief over now have we Dan our our financial your KR. Sridhar, will Executive take and review Joining questions. I with then overview CFO are

K. Sridhar

year it the power a What everyone. has for industry. day, Good been

transportation, are demand This AI, in the been power of industry of likes shift is areas creating all industry. witnessing electrification the never paradigm the a major growth, a like for power by have business. We transformations seen robotics, automation, which

utilities operated the a Bloom deep-rooted were For belief has in in spike that were believed needs created an for with significant were enormous a they business a and solutions spiral. in been Energy, the They unprepared This power more sudden reliable they humanity dead that opportunity many XX demand. we decades, assets. building last They for conviction divested not offer power. At that and power, less. a can with company scale timely, have years, clean for a shrinking

supplement also resilient, that been distributed the essential centralized an power to We convinced and is have always-on necessary grid.

fuel to molecular core Our best oxide platform to flexible fuel the technology, way is on-site convert power. the solid

trends by Our their us of utilities has preferred control made take businesses needs. disciplined looking unperturbed choice power for satisfy approach, customer the to to for fleeting seeking and

quarter from flow both last Bloom this for already spectacular prepared to achieved And positive delivered million over operations, and a want to We at were $XX positive the for hard-working are. moment, the meet customer thank I Bloom delivering and opportunity. seize the record fourth is and year income needs profits Now and revenue operating we team satisfy the the cash the a solid for year. year. XXXX. Bloom

margins years and build increased on these and deliver systems. replacement learning us to service using the cost reducing every We for life in our year. machine and and performance units us business to was profitable optimize the achieved I in improving and expect cells, the our our for AI the quarter this field fuel reliability of the milestone by improvements first of XXXX, to of Another come. service

keeping In continues tradition, our of team operations long efficiency. double-digit product with scale and reductions. we with cost Our to another deliver year delivered speed,

fully the meet enable time-critical to power We will deliver status power us to solutions This will choice solution time-sensitive deals. in demand. power as months, functional for the capacity of have reinforcing our

Bloom's an to to power months islanded On deploying following our successfully our interconnection. power of order with load competitive create We the ability further as within market tens of in view XXXX, demonstrated to a largest strengthened customers we position of expanded without front, on reliable our industrial our installation. innovation We our huge providing provide megawatts to advantage. islanded Quanta by our microgrids, partnership customers grid

orders year. were same to the years expect and because now. to continue of power. focused is transacted team a in urgency are We from with capture both offering. And XXXX. we quickly commercial they to our to to that X purchasing in They and Power to to need took velocity strongly are on our just we of deploy in deploy years The heat did Hungry solutions, and XXXX add-ons and delivered core valuable came X and continue in time many most customers reliable our expect we U.S. today, XXXX, meeting recognized need customers in convert XXXX, in important criteria X capture bookings to sense deals it carbon X most of this demands. the revenue. the XXXX us as ago, their I and increased signed revenue for majority power

strong to excited primarily center center AI Bloom training talked be our the the meet driven applications inference opportunities a ahead. in by sales solution is and to robust. AI growth. current and segment, strong, for diverse call, data both view engine funnel data remain that segment We we centers Bloom's earnings need. I last about and data about is purpose-built the and on Our

order healthy very diversification. addition, In and show our book funnel

want and strong will in and growing industrial the power they electricity prices, and an needs massive sectors C&I result deprioritized by to higher AI aggravated There and unpredictable segments data story. reshoring, shortage important avoid. by arising Our are be are commercial power in sentiment center C&I of growth power growth is domestic non-AI their and that the part our market a needs. impacted customers predicament from automation the

We in telecom we result, orders a who seen proactively power. multiple companies, segments As health secured from segments. own and retail, have an large education C&I their care are securing manufacturing, our uptick

thrilled products customers, quality are their testament vast a our of services well logos augurs sales in for and the repeat order our of and electricity us. The and our majority our to of customers a in increase growth. from U.S. spend that future book to comes We total trust share our the potential place

are also attractive the to the orders and won Great region future. Bloom innovative and We competitive customers add arrangements capacity. with the in more looking in now to Lakes such and are in expect has and Illinois, partnering we see utilities to I Midwest. Ohio

steady. international important remains South side, the business this an On and us, for Korea market is

through win annual development auction and and to continue our SK with ecoplant outside partners, SK Eternix. We orders

harbor, believe Additionally, enable Asia our sum, a the purchases. Bloom light credits XXXX the $XX can of for and this predefined their This commercial our now financiers secured provision compliant billion I partners investment other touch to By tax other XX% player. with thing. customer tax They and strong safe with gross the energy are commercial an credits team ITC States parts and excellent harbor is and Europe a start United product communities. in U.S. is or to in receive off placed is if fully focused to Bloom's delivering nationwide They Treasury to in global potential benefits using of having sector $XX fully the billion option credit. inbound on energy between the full wins operation future in diversification to customers, benefits year ecosystem with collectively entitled diversification, revenue ITC year. In and yield for more on Bloom. interest. I guidance, to XX% combined strong systems XXXX. manufacturing in of safe enjoy become to that in exercised, will has the geographic The have that one strong between want

Now to questions. you to the through to answer hand afterwards us it Dan? and I'll your join over Dan I'll numbers, walk

Daniel Berenbaum

annual spoke projects, products terms a confidence targets afternoon, in financial confidence that our get earnings ship to you, guidance those KR, were good and our we customers' needing we despite we Thank associated and with QX call, expecting deals. our that record had We On in understood the everyone. about there. the meeting because November to performance

this discussed, project-based a business variability. we've with is As quarterly

We are realistic pleased that targets. we meet were able set to and

and I to XXXX. results guidance, of at thank Bloom wanted our to employees execution getting incredible all our Before in for

call out this highlights me year. drove team Let X that the

since year time CapEx. free positive for first First, from full cash $XX operations million the spent on cash less XXXX, the we turned $XX full for million year flow flow

profit XXXX would had year compared business Second, positive without in non-GAAP margin $X record XXXX. service be million XX.X%. of and a possible a fantastic of full all non-GAAP And that X million third, full year team. $XX Bloom of gross this None that gross loss margin a to in gross quarters

and about about XXXX. year in briefly talk then QX detail Let's the more full

expected, the an the revenue as fourth XX.X% saw of significantly $XXX profit $XXX meaningful from scale. XXXX. full the fourth in with QX increase over of cash from activities year was nearly also quarter Non-GAAP million. up increase from XXXX $X.XX. QX for a of saw XXXX revenue flow from This was QX from XX.X% XX% a in of As of of and a is we up quarter $XXX This was XXXX. XXXX at of to our $XXX in million an XX.X% QX's XX% gross was quarter quarterly an in of non-GAAP EPS improvement Non-GAAP XX% the million, million, fourth that from was million. $X increase fourth and leverage operating operating and We QX. record business of QX margin quarter

related expected, party As large our QX. we in receivable collected

SK that Additionally, project. our we delayed the energy part our had XX to partnership, in assisted of a they partner, during megawatts QX, a of of spirit servers majority long-standing sell the held of as ecoplant,

from our XX% as quarter in XXXX. XXXX earlier. Service was previous every income. a XXXX. basis a a gross of profitable profit billion, Turning to XX.X% of XX.X% up XX.X% year profit $XXX was $X.XX on million, results. $X improvement million, the $XX revenue significant year full during operating operating gross Non-GAAP in the of up a XXXX. million from million on our drop-through $XXX was non-GAAP over from XXXX, from loss margin was business was million, Non-GAAP record up to mentioned service $XX in increase Non-GAAP Revenue I

continued through We improvements drive move expect the service profitability as years. in next several to we

energy product cost addition, double-digit recorded another we of In server year core reduction.

benefits this cost to expect both double-digit We which product continue reduction, service. and product

flow Bloom milestone As We the total first cash cash cash business. We balance flow earlier, operations and for I million as positive to free the ability ended for time this cash mentioned the also from demonstration $XXX key the year generate sheet. of our on since view generated XXXX. positive a with

how about as future bit think a talk to business the about our of important are want I as the think we how well that guidance, about to get we to we business. Before potential metrics the running

billion $X.X of have We backlog. product

our agreement have around would dynamics our up product backlog roughly with SK ecoplant, Excluding XX% supply year-over-year. been

As was agreement of included XXXX to we end XXXX, will our which reminder, we clear on naturally had XXXX draw distribution agreement our end all and XXX our increased elsewhere, want commitment that Shipping SK term ecoplant at in of year to the backlog megawatts, so a that ending is backlog. increasing. of to backlog, the product purchase extended to of be the their our

backlog. of also billion $X have service We

discussed have XXX% attach with we've we sales. As our rate product the of a service in past,

we large how operating a as revenue non-GAAP few discussed the overall are to contracts is of to power baseload flow shipped measure were and important on and to from primarily business, from recognition past think to respect the product assess shipping of quarters, backlog. With and somewhat product service margin XX at past, growth, gross anywhere shipments, felt Our revenue performance. and focused grid-connected kilowatts it operations. primarily from we've look long-term leading timing we was we when over product In cash divorced management timing X about was revenue, to years, the

carbon standards, product and our our offering server, following shipments. Further, measured in to add core combined microgrid, data power solutions a based in revenue we're multiple around to energy is islanded isn't value our on primarily capture, AI recognized which heat and way simple kilowatts. others, that customers Now center load

years XXXX to cost or to As a good year ASP we it brings a Bloom, relevant to less few than better. at ago. This business XXXX was kilowatt XXXX. the way for a guidance a result, us of is a and expect for was simple proxy look per be

XXXX $X.XX revenue a and approximately to expect billion of non-GAAP income $XXX million. non-GAAP $X.XX of billion, We margin range XX% operating gross approximately of of

we same in of level operations XXXX, expect positive CapEx expect the around and flow as levels We also the we same cash to saw around from XXXX. be

as the profit, quick business for as margin operating we we business. A of see expenditures we percentage drop-through opportunities. At mid-teens guidance, operating of single-digit revenue Of high see needed count. and strong margin share percentage midpoint would our revenue leverage operating our note course, on will to adjust a

million diluted Our that interest fully using EPS for with potentially using non-GAAP share is count approximately diluted method shares. been converted. GAAP that XXXX share In the dilutive and QX, XXX our to fully count exiting associated as-converted is instruments were both adjusting and are have assumed calculated

the full our million would shares basic shares being of our of For inclusion have associated calculated the EPS XXX our effect with year is convertible anti-dilutive. count XXXX, using as of share notes

Jefferies and we XX% continued short, year-over-year XXXX. had expect We weeks. Power great Near to in X, expect in March in Dana We'll term, on both X, Energy March XX speaking for to line the we the end to period. With both the Power up San profitable XXXX. in Las to approximately QX Stanley the attend Francisco Conference and year, to growth be Energy a entering March QX also pattern Conference you questions. Piper March Conference be XXXX XX, attend in and and Technology on Point similar Sandler Conference revenue on In expect XX% please Stanley attend on compared both and road Operator, QX for open our that, the ROTH to have Capital to the a City. quiet next few Morgan York XXXX before Vegas, great the X we'll the Conference X and will with and Clean we Morgan Utilities beyond. Management We'll a New

Operator

question Andrew first Morgan comes Stanley. The from from Instructions] Percoco [Operator

Andrew Percoco

strong Congrats back again, AEP just a maybe that in congrats quarter. November. on on I announcement to guess start off,

to you would both agreements start second XXXX, to if data answer my in maybe And or question, yes, there, see it's just Are maybe maybe give color can once, a expect where where the late cadence is that just of in a rather additional Any sheet. balance direct we those is the that just more stage? of timing large center? to utility And we with be sense are them So to should just types stage, around great. of process? for then mid-stage, than at maybe early on agreements you the us asking

a very enough? growth turned Free you this just it's capital think and of exploit talk maybe opportunity? about positive this Can I opportunistic have pipeline you is clear to about you ahead guys that Is to means thinking have to this some you're strong how there a you. funding raise growth? reason Or growth obviously cash the ensure year. be flow

K. Sridhar

a, being not, along get air interested AEP. are getting matter not issue you yes, no they the and matter end system, much. customer time This fast is arrangements between And need deployment, very transmission several using reliability, on to be you generation is, a very for how our thank unless of being the permitting, or of are pollution the XXXX talking to lines answer their augment from a air we now that the is them Bloom backups, produce it able first where is announced happens therefore, where to ease, do power distribution And question, needing to who KR. to going advantageous utilities free, is that big are you no to Andrew, power with permits. it. again, And they we some your what kind in realizing

being are the cost passed is fault that architecture reliability tolerant investment about we data of being there technology. now For all And is more that dynamic sentiment centers, by the growth other fuel driven is ratepayers. modular that the our to for the made And strong those importantly, seeing our reasons, growth -- not centers to unbeatable. growth the the the on being be they if like data

utilities their is say being them happening to this the see the as and many that, to construct that the is but talking available. deals construct sure So I states, several like own that trying work are more out utilities with between to of us. jurisdictions worked it would long pole, make to I are

give on but to I can't happen, can't a give timing. I I you So that you a expect it. would timing

question about you the we've On speaking been something as know, which of capital, efficiency. important about Bloom, very our capital is

in facilities that more For working us grow a we And We our hundreds footprint. using We already well. the here we in can capital are to same and manner. capital-efficient in managing see in very we gigawatt few grow need California of modules increase footprint gigawatts a scale of to growth megawatts the don't from as Delaware. our have really in our

for fund future, it. Dan, for to want So just growth, about very about foreseeable be that? good how the we anything need you to We thinking feel it. don't this we add do to

Daniel Berenbaum

Yes.

So for were pleased I'll we year. one, -- generate And of thanks, the we're to KR. question. from obviously, I'll add we flow couple And operations this able things. cash the that thanks did very that a Andrew,

we the in same the be for operations flow from about to positive year, cash able call, operations recall cash talked full You XXXX. around level and the being flow second execute something last that expect for we from half for positive to

capital. We're So tight are being around how how manage manage about we pretty being very we working we expenses. tight

the in talked worth approaching prudently capacity that we're investing for things KR's million. business. right to We've triple $XXX roughly about manufacturing. And before, able of as comments, X said are quickly gigawatt to for being echo the We we've about

we clear, be prudently. we will KR capital-efficient So the And will grow in do our to said, we're capacity able that we when to growth, that as see manner. very do a

frame. expect In that is to commit the we in team do time business have visibility before to words, to capital. short other operations would we need able to a the Our relatively

a So there, good we we're think good got position. a and up in balance we've set

I'll very we The do. just we how cash a factoring lot that want didn't of QX. add you much always have that I'm to I since factoring mention about other any say thing to asked operations, happy from do flow in

So again, in, -- position than much we've in past. healthier a very the liquidity a been

Andrew Percoco

backlog And delivery your to for need you your do When That one at of book look the in to at how guess, squeeze ship look I much could to midpoint is of your more much That's essentially XXXX? I if the do guidance, when makes range here. And great. existing how scheduled I for sense. and backlog, in get XXXX? I guidance

K. Sridhar

picking we like you whole that because business don't we The can for to very is need solutions that Andrew, willing business. up premium the customers as discuss become that are velocity like the of time like velocity to ours them said crazy. past. this and power clearly to like have a has see power power pay in give It's quickly But unbelievable. for

X to and when booking, that time trend X came we could majority, revenue, a recognizing same compared recognize out revenue We was year. a too. it of from XXXX, year, like So years building, to vast booked revenue this we year's shipping last the the to and majority expect when continue same from would in

Operator

from comes RBC. Chris next The question from Dendrinos

Christopher Dendrinos

I components or verticals guess how of how on that? more and the and start on the the maybe within Congrats the and much break year. the much sectors here. that? is down is you AI, Just maybe little the maybe out bit a touching Could backlog quarter to C&I

Daniel Berenbaum

momentum more in components strong. a trends, KR Chris, down talked backlog. I thanks about the and question. for that business to business. reflected backlog of think our book general And our business the of those the our of business C&I of not we're being going have. requests. time time talked U.S. of So more about about about ship not specifically. what's power going talk seeing talked Like We've that important again, about to lot We're part some We've we becoming more the power, talked that we in We're to to an what's but increasingly specifically backlog, break our of

for KR I commentary us. about focus made So where the are the our some growth I segments when about growing business. That's would I think of that think

K. Sridhar

deployed obviously centers. than higher fast, have non-data kind in a growing right, what have And key is lot And the faster center think level else. I on is of of is roughly given is gigawatt is a of sector, but that that data already deployed, towards we is a our X/X everybody sector really numbers the to at not than is backlog of which that terms happening point is make But sector, pace C&I you the greater what growing. data I at the that is too, growing want which center we

So both us. are growing for sectors

Christopher Dendrinos

-- to thought of follow missed I something, ITC, And end then was year. at the rolling maybe maybe up and last I the off on that I didn't but

customer the XX% community a the terms response XX% competitiveness base? big with for $XX if could from you that you just about And $XX a are in you mentioned, ITC then else. Because And maybe or what's to How pretty maybe point. billion think, So you even I all billion thinking you versus to opportunity that all cost and clarify changer is of game then that? that. the for anyone realizing energy I think of adder been opportunity

K. Sridhar

Yes.

to So by United and let deploy communities. if it numbers anywhere in States energy XX% get you're differently. slightly in you you me if the first XX% of XXXX, the ITC,

not XX%, and and XX% So XX%. XX%

as long there it's work as a is guidance, of was Now progress. under harbor are provision that ways it's in get very work to there to defined safe the and in Treasury and well multiple progress, there

credit tax long work last you it have then for you the year. as systems as If by still in progress, deploy off the rolled as are eligible XXXX, investment you

and option somewhere on able roughly who between is to have be this mean? translates, able our find provision now not, exactly ecosystem to that means wants financiers should safe a customers, What anybody So in to that it $XX What an we our through harboring. XXXX our what depends as again, utilize the and microgrid, billion worth. for U.S. $XX what does between really to installation be and deploy billion is

So a issue Bloom through longer ITC no is XXXX.

Daniel Berenbaum

And elaborate as I Mechanics similar well. in a Chris, just KR that's bit mechanics. about, I'll credits in general. the other investment on industries just tax talked It's

concept very harbor this in the communicate in manner. this a We've safe of simplistic that's Treasury the guidance, to So provision right? tried

able project, commenced before the have of on work you is certain the to avail the itself remainder to the of still ITC. the It's We then that the the if have guidelines ITC. And just themselves to the of money a customers, project you a customers' If reminder, benefit it's spent amount the able the of are project from the expiration period up themselves our our Treasury within directly ITC, our on of customers that ITC. ITC. avail of projects avail the don't

Operator

next comes Colin from Rusch The Oppenheimer. from question

Colin Rusch

by Congrats year. I you appreciate policies? XXXX impacted those that have of a of going give the us forward. on the end revenue sense the been revenue recognition? Can would recognition of much detail the on revenue of strong the How that

Daniel Berenbaum

recognize revenue generally product on We our shipment.

I that. think been we've public about

we changed -- sure recognition revenue maybe question, the really not I'm don't haven't any understand I So Colin. policies, but

Colin Rusch

misunderstood comment me it Let offline Maybe earlier. then. I take the

going you and your a forward the any tariffs enter bit input a then chain and XXXX? perspective, impacts on here supply here So can as you prices talk about margin on little

K. Sridhar

the a we think, is as single globally will daily basis. trying reduction we all recognize XX out that But from, for important is the Look, supply that country, what come to mean for something, materials the years, a in of geographies mechanisms tariffs are other last different the you world, DNA with manufacture, diversity efficiency it's we than the advances go year of as show that will all COVID, the where we I have those able cost engineering been a on yield from a to lead year double-digit we to various Bloom make, Every Energy. as go and figure X get, reduction. cost reductions. base, of They our that where from we of to we procure which cost

around a can potential as issues many So while reduction. headwind it's definitely factors. to finding be to for are and getting us, And tariff-related of a cost committed still ways one company, we,

say, So can And is the to reality to committed with cost playbook for deal that tariff and comes, have cost a reduction. is impact us reality that we the but can't definitely reduction, we to in it. we if that we change, are that's

Daniel Berenbaum

our take a Yes. with our the really supply teams, chain with a teams. our team. to the opportunity great in supply just base, And quality I'll working job with diversification engineering They've for done put plug of manufacturing our and working

So of course, we look at tariffs.

that we whole supply modeling, think the think into we these supply just all things impact. tariff eventual here really be we super course, our look I've to process. and when I business, a when now. will been diversify guidance Of a host say, has of thought super we I've to -- impressed. about like about been the year thoughtful factors about about great potential come done think the issues base we at that job chain when how about team I've impressed with give, been what a of But

K. Sridhar

we for and that one as And at is supply not important chain, us also important on today. are dependent where look is super helps we are China aspect a we that

Colin Rusch

Let me just sneak in. one more

on of how In much dependent the incremental the XXXX? getting terms of backlog backlog, gas into place is on execution put in infrastructure

K. Sridhar

it a It and more many it in takes what it's In than we That's months. about year. depends a like available. ready. When quickly on how ready. projects those of why give is not other some mix. ship. In are build are just may a And we numbers. places, whether whether places, be it can places, is projects we It's look Again, it range at we is -- big it implement, quarter-to-quarter, the

your So It not board. question. the a single is answer to across

Daniel Berenbaum

right? for the we've you're a is guidance full point, about look, look, But gave how up year. and of given last a quarter QX And guidance project-based extensively bringing you we business, kind you talked range. We great underlying Right. this a for within

all we that give we into factors take So account these when of guidance.

Operator

of comes from question Gosai next Dimple from America. Bank The

Dimple Gosai

expiration you in and that do or ITC your targets this through? little against that the remind for customers point? what reduction. at was that Could pay to spoke to also cost you cumulative? of as you strategy premium do you are some second ASP about? us cutting, time of How I about terms kind any think And light per have kind power a XX% talking think talk of weighed of to that, bit you about willing annum in Can in were place? Was you

K. Sridhar

much to and to have our So on pricing is a going XXXX. can market. how what discuss potential in just don't we The is through number our and I not impact depend ecosystem us that. given one, explained, It's the we ITC option value, command customers going

terms of see had you a service we that the given they have customers, offer superior our terms they're solution and we our And margin. pricing what and with value happy two, per for had if other and Number to -- reduction, In of discipline one. pay cost can annum maintaining number maintaining with in for -- last had double-digit COVID. XX have than have service, the cost we reductions of company, the it yes, -- in years we is follow years, the you

Operator

UBS. Manav comes from from The next question Gupta

Manav Gupta

was but announce. great center my to Market -- the from you change data to I'm was a talk understand data rocked with quant actually anything what information was nicely. The on centers, the Congrats and quarter, needs more did I'm DeepSeek realize is then because I'm And question, and not sentiment. finally a market, asking, did answer, trying for or the beginning these did very Microsoft these strong have to flowing of announcements. doesn't nicely. guys. it What boat got power ground flowing all on not the you

were XX is, the if announcements, was talk to you understand did the to if you trying XXX day talking before, that after market that? drop suddenly about these to people could what So

K. Sridhar

great Manav, you. Thank question.

So DeepSeek. secure no all can to every customers say or that end I day, up is down, not franticness we going able our being see about the power from single DeepSeek and is that you to

for paint will be. you that let So picture tell me a very should why that simple you

will forward gigawatts. gigawatts. growth coming it if quarter, the that shipped the with fully of that capacity needed. NVIDIA the You one guidance earnings just fully new in will all XX XX% fast chips anywhere were listening the facilitized that than in days, months, going to X okay. power. of X.X it rest is you like next and gave, we like a the United somewhere to, That's consume company That's more XX probably of gigawatts be for stay between call Whatever they were from center, that that to yesterday, X range the us, data than XX of facilitized in in the from States. XX they that's More that's

at XX%. about worth that's You're outside less that has of than that -- sorry, infrastructure terms billion billion to talking happen. $X,XXX facilitizing per gigawatt, power Even $XXX of in of $X

this make Let very me clear.

available you're billion more old. power. they than spending $XXX data not become If chip installing crazy. power You're building like a have is Every short and the that needs life value the a very year, of infrastructure chips drops there because shelf that

the if cost and you power is a worth so to penny of paid premium, time premium of So even that power, every it. high bringing is the

are astronomical DeepSeek, of needed, the still numbers DeepSeek, amount numbers. these So half power no

these I if understand question. all your is based nothing make on reality what where power of is the answered available, So the absolutely, the going margins. noise set are Hopefully, to on They the in they you business. with on solution do have the AI and industry

Manav Gupta

at way companies, it's look what the exactly about a behind-the-meter midstream is now TransCanada, solutions. wanted the quick hear. companies My finally talking to we these thinking is here whether all that are ET, there are follow-up Kinder people about you business. change in Morgan, is, No, the When

data you're to years. not for X are midstream more a midstream understand with companies take numbers, conversations in you saying, but seeing talking months gas going need might companies, the now the centers. X to look, looking clearly, to and just solution open turbine combined we cycle you trying or you how X I'm a to So are coming and

discussions So are those also happening?

K. Sridhar

interested. super to the of gas is Yes. The Oil answer is all above. and yes

public in come from You seen and both some announcements large regard. midsized that companies have

more be this demand to we're for it able take think us those is players meet I going all to and unprecedented seeing. to that

yes, handicap you, at happening. those now. we but can't conversations conversations are levels it So I are right all for having

Operator

Blum comes Wells from question Fargo. next from The Michael

Michael Blum

'XX megawatts deployed a incremental just on wanted bit were Is And little megawatts. the XXX XXX you I ask in then on could there in the anything AEP first saw guidance? deal. to that We that beyond share Ohio. remaining anything

K. Sridhar

to let customers on -- the speak on So we deals, always like our customer than us. it rather

are However, states in, a serious notice operate and to got this data publicly, AEP with discussions they reason that you can facilitize that them. of in centers lot they CEO other they and said has in is that Ohio the

Michael Blum

that already wanted 'XX. of flat It's your improve about I then streamlining the you're cost further and takes I to to to talked And guidance core fact efficiency puts roughly just service any constantly on to aim for be with speak you you on about talked the And that year? gross improvements or continue ask the course, know you margins. margin Can products. Great. XXXX. limiting this might

So the I margin. understand around want to just dynamics gross

Daniel Berenbaum

the about. I Michael, right question dynamics answered Look, mean, at XXXX. of extremely to on end for executed all the No, margin, we think Yes. were you me. particularly well the Those

that when to And we that guidance. a from some the we of take gross dynamics place of having new increasing microgrid, to you products load felt so take we're like fact AI following things lot this margin gear demand incorporate those we was right discussed, that third-party install, we're like all starting that put islanded the the

Operator

BTIG. from The Elmaghrabi Sherif next comes from question

Sherif Elmaghrabi

the they're at I'll related. because of ask them same kind time

And as think servers these talked incremental? note, Korea. growth mentioned be in covered should markets related level about you the CapEx of the product any if forward? in you about Would that the beyond for pull with could South You think And on but a production Asia on Or Fremont we SK? energy agreement of any would speak about you acceptances helpful. your that expansion to could growing you start be the to where would capacity, expansion

K. Sridhar

[ very Dale questions, ] both Sherif. good Great.

other a, countries bring Asia part that their partners, deals force should our as that the our answer countries in a working of Asian own that address sales question But in accept and forward market. we first. yes. will answer to in, operate few The be The contract? able have they In we us me is that, SK let yes. expand So for outside is of accept that to Korea from

both it ways. We will do

very very, our look here is both what are to happen then open at asked, today. you like if and the see telling customers to CapEx So would actually. both And question you look, we that

We limiting are our we time to And keep applications will that getting not to are promise. the we able demonstrating to factor to power. you power be

is goal And solution to have we that we preferred very to is every strategy, that a in a behind capacity power by clear confident and So an it need. execution we're quarter prove has are of our This who what goes from limit sure us is our to going very are customers that our for anybody time we the problem. making a is plan what not fulfilling doing.

Operator

question next from Research. from comes Wolfe Chris The Senyek

Christopher Senyek

I just that mentioned earlier, wanted confirm you to something Dan.

policy Your is delivery. based revenue not recognition on shipment,

So And by XXX if AEP that was QX if that some were shipments, in revenue all the that year-end? deal? can mean fuel means shipped does i.e., infer, recognized cells on

Daniel Berenbaum

Okay.

So there. X questions in

have not shipments customers. So timing specific of spoken about to number one, we specific

about talk don't customers. generally specific we policy, a As

out Let get that just me upfront.

That company general, in ago. recognize we bit. used our more divorced on I a little the As on revenue of revenue be product acceptance. way customer to to back, recognize shifted used said, That shipments. while product We a

we've shipment. It's product filings. general, very spelled is clearly think on now clear recognized And been So also in about revenue out that. our in our I

Operator

Harrison question Piper comes next from from Sandler. The Kashy

Kashy Harrison

on results. the Congrats

demand harbor. Just is a the which a Is on cutoff we're some centers you and date? service companies power. And buy oil the the gas and there obviously, by to safe landscape. XX%? Is a there then date power seeing buying on-site There's turbines pointed exercise main my customers for near get to as But option to also follow-up turbines the term. of need competitive of quick to the to just out, using data question a lot

and customers And maybe service doing Bloom. going with when companies just just wondering your and the was if contrast with of some just the head-to-head. curious and and so you're you on-site for help discussions what's compare could pitch PCOs us what I I'm

K. Sridhar

up equipment and be according service. to in to as ITC, the one, able them to guidelines, to questions. on is service Treasury us in is Number advanced great long is meets as all the a needed. notice December to then Obviously, placed XX, build, to give get and that's would customer for it Kashy, and have that XXXX, requirements, by ship installed

or sitting from is an which to put from together only and and On And back that it, need tax at on investment all unfortunately, requirement competitive your because the room to technologies be to fortunately you're large. deploy depending competing you So looking on credit landscape, collectively question that side supply-demand the more able policy. date. the that gap have that's

choice. other they're now X not sold gas to than for reading So turbine reactor, XXXX, an turbines, going will So have your between other backyard because right? you're we is years what that nuclear And X do, reading gas a the ahead. out are we and like from option be obviously, like you statements have we power are which to on-site you,

about somewhere. a -- not it pretty fast. chip keep premium GPU discussed and buy going It's warehouse just in we you're like So depreciates to a

a a has play, we Everybody turbines have I play. a So have think play.

So we competition -- we now, being see don't don't that issue. the right view

Operator

question next Noel The Tuohy comes Parks from from Brothers.

Noel Parks

a interested You topic in. just I on was touched

do it as framed sort the mentioned and themselves. You their you generation direct the call, begins SMRs, interesting power that going? your near-term Any set. wondered think letting you mentioned heat in see saw it they for just insight customers skill since future, right the solutions foreseeable AEP, business during outlook Bloom I was to being SMRs. materialize? solution for speak and your where also for quarterly When their that's on of are long-term solution you

K. Sridhar

registered. you that was out Could for looking part? corrupt. I that just It last he at part repeat me, and last not cut Sorry, also Dan, somehow

Noel Parks

Sure.

development have you? SMR Just visibility you for of on the market any updated the

K. Sridhar

coming few again, the realistically, in a they X can fuels answer in be think have years? engineering. if of reactor new I for needs created X gigawatts XX talk new with alone what worth, no, you about XX The new I feel. degree in when the okay? be I nuclear meaningful to That's nuclear to along come master's chain right, demos line, a next Look, And any fuels. that Even kind initial a and let to a supply technology is

option of I it, I -- just field. mix. option X you're move move I'm watching reality the the to should going the which geopolitical The many won so of to nations, other aware Nuclear I'm we X to to another not don't that. in I things AI. needle think nuclear our okay? the is like before to between our that implications, with qualified should think in speak or be and and our going has really the nuclear. for We AI And to needle. be implications, be can't to in about truly next years So now X But do come war is lost market believe between not going it's years. afford wait energy

comes, us, hydrogen for X next really to nuclear So to really Other that's opportunity interesting. the X play creates what when become this becomes years. for X And things the look, interesting.

with where can dynamics. So we our play those -- pathways we in have

what so AI, not forget told much on not earlier. let's just we because -- are We focus we

securing have business fear like unpredictability their up of We that them wanting health telecom, doing control. to dynamic And like care, extremely and all Core well. of again coming business. of going and prices from the fear retail, is core take a power the shortage,

trying we sitting opportunities, a across in the well we segments a the same dynamics do as multiple is So from luckily base to the diversification us where good growth for both thing. customer super place are geographically, are giving and as us, engine growth the other

Operator

from Ameet question Thakkar from Markets. next comes Capital The BMO

Ameet Thakkar

really on quarter. a Congratulations strong

we for from that kind thumb $XXX number? that flow operations guys a there off had time? coming long when Just And of kind million look benefit cash we receivable you guidance, in. AWS your of the operating at talked a then looks AR of it kind a of statement, flow One, converting long, at second, of from that of a income think rule kind that kind about the of cash is should like is cash of looking we've the

Daniel Berenbaum

Okay.

of first all, party we related So large receivable. QX, a discussed having on your question on

in SK were clear we party we that. collect So that. going We saying to did quarter. were receivable related the We did do that from

operations given Second, from be on to I Gap]. income probably [Audio and XXXX in I We to similar at guidance, we've cash level operating expect guidance, income flow that a won't operating the said XXXX.

Operator

next The comes from from Jordan question Levy Truist Securities.

Henry Roberts

sense you in get think under maybe the attach X something? for green strong of Congrats energy that rates Maybe the just Henry for instead and for around me. recent an around CCS carbon Maybe the products? actually quarter. some through just hydrogen with on long-term the your the Jordan on here. capture to have area long all one more or customers renewables way of it And now in economical It's for maybe net the policy uncertainty that be announcement on right do to landscape benefit your seems with a the term new administration. is U.S., you like Do could

K. Sridhar

best capture Bloom be Thank would in huge to build sequestration. the high want their that concentration huge a to carbon decarbonization We sequestered centers opportunity, electricity available believe opportunity. ground. ways that, if footprint through reducing the into carbon are sequestration; were as will would gas we asking view one atmosphere that carbon natural amazingly dioxide today. you The this for a that We not large believe truly without out truly interested of coming the this carbon happen And hyperscalers who data very and do to of we with question.

market going much term the than way to the in take coming take faster bigger years. is a off in hydrogen obvious will that and a this way going in It's think off for I the mentioned. dynamics you short to

opportunity invest scale, we So for carbon Bloom, capture an and huge excited announcement that great in made and because way asking with sequestration. for available it's offer for we technology believe to economically for this Thanks a viable Chart, we truly are question. to that us we about it's immediately and are area going this a

Operator

from comes Dushyant question Last Ailani from Jefferies.

Dushyant Ailani

book percentage the the and of I ship guess, know you the about talked increasingly that business. Two important piece I quick questions. What's guys an -- being because

what talk that is ship you could percentage and of for So guidance book about 'XX? the

Daniel Berenbaum

we what didn't at look, -- our orders. understand but forecast, we're was the only talking the the that guidance. majority year, at potential question, we and a when we of about we good percentage the look XXXX said thing and we Again, within look look No, our underlying shipped our at it's should not that was booked of you backlog,

to you. plans through and very a process internal rigorous giving understand order we're go our are have in guidance that what We what we

I So the understand question.

it about we're but we a that bit internally. in think quite details, it know do Just not about talking

Dushyant Ailani

the that talked could U.S. just access a about -- Could one. turn in kind are, you then regions I and see about say, And opportunities talked quick [indiscernible] then be that Ohio, Illinois gas. also around the would that helpful. you of natural about I there within guys talk quicker versus know you where easier Any to or others? would

K. Sridhar

Yes. I because Look, the at Northeast look very in large Northeast, very to difficult do today, the if you think of are issue. pipeline right, installations the

Virginia, and think change, to Virginia to York perspective. is to and attractive things adjacent are gas there, become Virginia plenty Pennsylvania, available. And are you infrastructure, very West There expect that that If of of other where do to I places which because we and of is from we Massachusetts pipeline the like New lack at look ability places really the hard. and expect

think Lakes that that in giant. most a the to those So going incur our a needing solution But and as that's good -- is welcoming kind industries very to attractive. the payer we Midwest, sleeping is the be without area. The the reshoring infrastructure that reshoring And of happen Gas happens are of It's there, average there. area are giant making are going view And because sleeping in of that area. rate gas. politically additional distribution is add states natural transmission cost I a when that to Great available.

we that's forward. that, reasons, those think going for all a us For great market

the simply AI demand driving the simply that, will unprecedented saying, and global reshaping with thank we So And let it's power. I DeepSeek, yes, say an And is put, no. very for look, me close questions. think by economy, you for

you that hide loss, And all seek not all power, is and are what's term, term a provide in on. understand going require power to purpose-built for Lots long of just and with the now. the time seek quick I at you're they now. can't the -- one no short reliable There's thing it If the for DeepSeek from, able to DeepSeek. we from, be they okay? power short and And a even you But would understanding fashion, no hide one term, reality, term. long but require to here's attributes midterm of can't want or

reasons, we those AI meet And this Thank company as world. but where country super moment doing for and for about I'm while For moment meet and for a frankly, you centers, to not data create much. economic businesses. and all this are can value excited the good we just the so good

Operator

KR Sridhar, over call for the will Officer, That turn again concludes Executive to our remarks. I some Chief Q&A session. closing

Michael Tierney

Hi, just his remarks. gave KR last

So we the forward out, weeks. you you are Thank going talking road this to on in close very and to few we look to the much. next

Operator

you you Ladies call. all and may today's Thank that disconnect. for gentlemen, now joining, concludes and

Bloom Energy (BE) 27 Feb 252024 Q4 Earnings call transcript