Bloom Energy Corp Q4 FY2024 earnings call

• Achieved record revenue and profits for Q4 2024 and the year, with operating income positive for the year and positive cash flow from operations ($92 million).
• Service business was profitable every quarter in 2024, improved by enhancing fuel cell life/reliability, reducing replacement unit costs, and using AI/ML for system optimization.
• Delivered double-digit product cost reductions, enabling quick deployment of power solutions.
• Successfully deployed islanded and micro-grids, including a large industrial installation with Quanta.
• Strong sales funnel in data center segment driven by AI applications, with C&I market segments also strong due to power needs from reshoring, growth, and automation.
• Majority of U.S. sales from repeat customers, indicating trust in products/services.
• Focus on heat capture and carbon capture solutions as add-ons to core offering.

In Q4 2024, revenue was a record $572 million, which was nearly 40% of the full year revenue. The full year 2024 revenue was $1.47 billion, up 10.5% from 2023. Non-GAAP gross margin in Q4 2024 was 39.3%, and for the full year 2024 it was 28.7%. The service business had positive non-GAAP gross margin in all four quarters of 2024, with a $4 million full year non-GAAP gross profit compared to a $33 million loss in 2023. Product cost reductions were double-digit for another year.

• Expect 2025 revenue in the range of $1.65 billion to $1.85 billion.
• Non-GAAP gross margin approximately 29% and non-GAAP operating income approximately $150 million.
• Positive cash flow from operations around the same level as 2024, CapEx around 2024 levels.
• Q1 2025 expected to be up approximately 20% to 30% year-over-year compared to Q1 2024.

• Tariffs as a potential headwind to cost reduction efforts.
• Numerous known and unknown risks and uncertainties as discussed in SEC filings, including those related to future events and financial performance.
• Need to work out constructs between utilities and states for more deals like the AEP agreement to enable more widespread deployment of solutions.

Q: Andrew Percoco asked about more AEP-type agreements in 2025 and funding growth.

A: KR said several utilities are interested but timing unclear; Dan noted capital efficiency and strong cash flow from operations, no immediate need for additional capital.

Q: Chris Dendrinos asked about backlog breakdown and ITC.

A: Dan said not breaking down backlog components; KR explained ITC details with 40% and 50% credits depending on location and Safe Harbor provision.

Q: Colin Rusch asked about revenue recognition and tariffs.

A: Dan confirmed revenue recognition on shipment; KR said tariff is a potential headwind but company committed to cost reduction.

Q: Manav Gupta asked about conversations with midstream companies.

A: KR said yes, midstream companies are interested in behind-the-meter solutions.

Q: Michael Blum asked about AEP deal and gross margin guidance.

A: KR said AEP CEO mentioned facilitating data centers; Dan said gross margin guidance considers various dynamics like service margins and product cost reductions.

Q: Sherif Elmaghrabi asked about Asia expansion and CapEx.

A: KR said open to both own salesforce and partner deals; CapEx strategy focused on not being a limiting factor.

Q: Chris Senyek asked about revenue recognition and AEP shipment.

A: Dan said generally recognize revenue on shipments but don't discuss specific customer timings.

Q: Kashy Harrison asked about Safe Harbor date and competition.

A: KR said customers need to place equipment in service by 2028; competition exists but supply-demand gap is large.

Q: Noel Parks asked about SMR market.

A: KR said nuclear SMRs not likely to move needle soon; focus on immediate power needs.

Q: Ameet Thakkar asked about cash flow and operating income.

A: Dan said collected related party receivable in Q4 and operating income guidance is based on internal processes.

Q: Jordan Levy asked about carbon capture.

A: KR said carbon capture is a huge opportunity and Bloom is investing in it.

Q: Dushyant Ailani asked about book and ship percentage in guidance and U.S. regions.

A: Dan said not discussing book and ship percentage; KR mentioned Virginia and Midwest as promising regions due to gas availability and reshoring.