Fuel Cell Manufacturer Bloom Energy Reports 39% Surge in Q3 Revenues
The revenue rise was driven by a 40.7% YoY increase in product and service revenue
Fuel cell manufacturer Bloom Energy announced that its total revenue at the end of the third quarter (Q3) of 2023 climbed to $400.3 million, registering a 39% increase from the same period in 2022. This was attributed to a year-over-year (YoY) increase of 40.7% in Products and Services, which stood at $352.5 million, against $250.6 million.
The non-GAAP net profit improved significantly to $51.8 million compared to a non-GAAP operating loss of $28.5 million in the third quarter of 2022. The significant improvement in the net profit was attributed to the impairment charge adjustments of $130.1 million against the company’s past power purchase agreements.
The company saw an operating loss of $103.7 million this quarter, $51.1 million less than the $52.6 million in the corresponding year.
The adjusted EBITDA for the third quarter stood at $66.4 million, against the $13.1 million in 2022 for the same quarter.
President and Chief Financial Officer Greg Cameron said, “Our third quarter non-GAAP gross margins of 32% improved by 12.4 points versus the third quarter 2022. The margin increase was driven by maintaining pricing on acceptances while reducing unit costs. Both price and costs were positively impacted by the repowering of PPA V.”
He added, “The PPA V repowering is similar to the 2022 PPA repowering. We executed the sale of a previously consolidated PPA entity, and by doing so, we paid off $119 million of non-recourse debt, enhanced current margins, and simplified our financial reporting. As part of this transaction, we recorded $133 million of charges through our Electricity segment, operating expenses, and other expense that were removed as a pro forma adjustment from our non-GAAP reporting. This was our last remaining consolidated PPA entity.”
First Nine Months (9M) 2023
At the end of the first nine months (9M) of 2023, Bloom Energy’s total revenue amounted to $976.6 million, up from $736.5 million in 2022 for the same period. This was mainly due to an increase in product and service revenue.
The non-GAAP net loss dropped to $8.2 million in the first three quarters of 2023 from $92.5 million loss for the same period in 2022.
The total operating expenses increased from $220.42 million in 9M 2022 to $221.85 million in 9M 2023.
The adjusted EBITDA for the period stood at a profit of $42 million from a loss of $46.3 million in 9M 2022.
“AI adoption across all sectors of our society will become a forcing function for data centers to adopt Bloom energy servers as a quickly deployable primary power solution. The ability to quickly deploy our energy servers together with our CHP solution for data center cooling and carbon capture for sustainability creates a real competitive advantage over virtually all alternatives in the marketplace,” said the company’s Chairman and CEO, KR Sridhar.
In the first quarter of 2023, the company’s higher earnings from products and services helped raise its revenue to $275.2 million, logging in a 37% YoY increase. However, in the following quarter, the company reported a loss of $66.1 million.