On August 8, 2024, Bloom Energy Corp (BE, Financial) released its 8-K filing for the second quarter ended June 30, 2024. Bloom Energy designs, manufactures, sells, and installs solid-oxide fuel cell systems ("Energy Servers") for on-site power generation. These systems are fuel-flexible, capable of using natural gas, biogas, and hydrogen to generate electricity continuously for stationary applications. The company primarily operates in the United States and South Korea.
Performance Overview
Bloom Energy Corp (BE, Financial) reported revenue of $335.8 million for Q2 2024, surpassing the analyst estimate of $307.48 million. This represents an 11.5% increase year-over-year. However, the company reported a GAAP EPS of -$0.27, missing the analyst estimate of -$0.15.
Financial Achievements and Challenges
The company achieved a gross margin of 20.4%, up by 1.7 percentage points year-over-year. On a non-GAAP basis, the gross margin was 21.8%, an increase of 1.4 percentage points year-over-year. The operating loss improved significantly to $23.1 million, a $31.3 million improvement year-over-year. On a non-GAAP basis, the operating loss was $3.2 million, an improvement of $22.7 million year-over-year.
KR Sridhar, CEO of Bloom Energy, stated, “It is now widely understood that demand for electricity is expected to far exceed available supply through the grid. It is presenting Bloom with a huge opportunity. We are seeing high levels of commercial interest in our products and solutions. We continue to execute well, advance our technology and build out our team for future growth.”
Key Financial Metrics
| Metric | Q2 2024 | Q1 2024 | Q2 2023 |
|---|---|---|---|
| Revenue | $335.8 million | $235.3 million | $301.1 million |
| Gross Profit | $68.5 million | $38.1 million | $56.4 million |
| Operating Loss | -$23.1 million | -$49.0 million | -$54.5 million |
| Net Loss | -$61.8 million | -$57.5 million | -$66.1 million |
| GAAP EPS | -$0.27 | -$0.25 | -$0.32 |
Balance Sheet and Cash Flow
Bloom Energy strengthened its balance sheet through the issuance of 3% convertible green notes. As of June 30, 2024, the company reported cash and cash equivalents of $581.7 million, down from $664.6 million at the end of 2023. Accounts receivable increased to $524.0 million from $340.7 million, reflecting higher sales activity.
Strategic Developments
Bloom Energy announced an agreement with CoreWeave to power a high-performance data center in Volo, Illinois. Additionally, Silicon Valley Power received municipal approval to use Bloom fuel cells to power 20-megawatts of AWS data centers in Santa Clara, CA.
Dan Berenbaum, CFO of Bloom Energy, commented, “We delivered record revenue and non-GAAP profitability for a second quarter and strengthened our balance sheet through the issuance of our 3% convertible green notes. We are confident in our commercial pipeline, and we are reaffirming our prior 2024 financial guidance.”
Analysis and Outlook
Bloom Energy's revenue growth and improved margins are positive indicators of its operational efficiency and market demand. However, the company continues to face challenges in achieving profitability, as evidenced by its net loss and negative EPS. The strategic agreements and strengthened balance sheet position Bloom Energy well for future growth, but investors should monitor the company's ability to convert commercial interest into sustained profitability.
For more detailed financial information, please refer to the 8-K filing.
Explore the complete 8-K earnings release (here) from Bloom Energy Corp for further details.
