Bloom Energy Corporation (BE) Bundle
A Brief History of H3
As of 2024, H3 has undergone significant transformations, adapting to market conditions and enhancing its operational capabilities. The company has focused on expanding its production capacity, particularly with the new manufacturing facility in Fremont, California.
Financial Performance Overview
For the nine months ended September 30, 2024, H3 reported total revenue of $901.5 million, a decrease of $75.1 million, or 7.7%, compared to the same period in 2023. This decline was primarily driven by a $100 million decrease in product revenue, partially offset by increases in service and installation revenues.
| Metric | 2024 | 2023 | Change |
|---|---|---|---|
| Total Revenue | $901.5 million | $976.6 million | ($75.1 million, -7.7%) |
| Product Revenue | $613.4 million | $713.4 million | ($100 million, -14.0%) |
| Installation Revenue | $86.2 million | $66.8 million | $19.4 million, +29.2% |
| Service Revenue | $159.8 million | $130.5 million | $29.3 million, +22.4% |
Stock Performance and Equity
H3's stock performance has been influenced by its capital structure and stock option activity. As of September 30, 2024, H3 had 228.5 million shares outstanding with a total stockholders' equity of $454.9 million.
| Equity Component | Amount |
|---|---|
| Total Stockholders' Equity | $454.9 million |
| Common Stock Outstanding | 228,509,625 shares |
| Additional Paid-In Capital | $4.435 billion |
| Accumulated Deficit | ($4.002 billion) |
Operational Changes and Cost Management
H3 has been proactive in managing its operational costs, with total operating expenses decreasing by $60.1 million, or 18.4%, for the nine months ended September 30, 2024, compared to the previous year. This was driven by reductions in research and development, sales and marketing, and general and administrative expenses.
| Operating Expense Category | 2024 | 2023 | Change |
|---|---|---|---|
| Research and Development | $109.2 million | $122.3 million | ($13.1 million, -10.7%) |
| Sales and Marketing | $46.2 million | $73.9 million | ($27.8 million, -37.6%) |
| General and Administrative | $111.8 million | $131.0 million | ($19.2 million, -14.7%) |
Stock-Based Compensation
As of September 30, 2024, H3 recognized stock-based compensation expenses totaling $55.3 million, reflecting a decrease of $24.3 million compared to the prior year, attributed to changes in employee awards and restructuring efforts.
| Compensation Type | 2024 | 2023 | Change |
|---|---|---|---|
| Total Stock-Based Compensation | $55.3 million | $79.6 million | ($24.3 million, -30.5%) |
Debt and Financing Activities
As of September 30, 2024, H3's total debt stood at approximately $1.123 billion. The company has engaged in various financing activities, including the issuance of 3% Green Convertible Senior Notes due June 2029, raising $402.5 million, net of issuance costs.
| Debt Component | Amount |
|---|---|
| Total Recourse Debt | $1.123 billion |
| Non-Recourse Debt | $4.6 million |
| Short-Term Debt | $114.1 million |
| Long-Term Debt | $1.013 billion |
A Who Owns Bloom Energy Corporation (BE)
Major Shareholders
As of 2024, Bloom Energy Corporation (BE) has a diverse ownership structure, including institutional investors, mutual funds, and individual shareholders. The largest shareholders include:
| Shareholder Type | Shareholder Name | Ownership Percentage | Shares Owned |
|---|---|---|---|
| Institutional Investor | The Vanguard Group | 10.5% | 23,850,000 |
| Institutional Investor | BlackRock, Inc. | 9.8% | 22,200,000 |
| Institutional Investor | State Street Global Advisors | 7.2% | 16,200,000 |
| Mutual Fund | Fidelity Investments | 6.5% | 14,500,000 |
| Individual Investor | Henry S. McKinnell | 2.3% | 5,200,000 |
| Other | Public Float | 63.7% | 143,000,000 |
Institutional Ownership
Institutional ownership plays a significant role in the capital structure of Bloom Energy. As of the latest reports, approximately 50% of the total shares outstanding are held by institutional investors, showcasing a strong vote of confidence in the company’s future prospects.
Stock Performance
As of September 30, 2024, Bloom Energy's stock price has seen fluctuations impacted by market conditions and operational performance. The stock is currently trading at approximately $18.50, reflecting a market capitalization of around $4.23 billion.
Recent Financial Data
For the three months ended September 30, 2024, Bloom Energy reported total revenue of $330.4 million, a decrease from $400.3 million in the same period in 2023. The breakdown of revenue sources is as follows:
| Revenue Source | Q3 2024 Revenue (in $ millions) | Q3 2023 Revenue (in $ millions) |
|---|---|---|
| Product | 233.8 | 305.0 |
| Installation | 32.1 | 21.9 |
| Service | 50.8 | 47.5 |
| Electricity | 13.8 | 25.8 |
Debt and Financial Obligations
As of September 30, 2024, Bloom Energy has a total debt of approximately $1.15 billion, consisting of:
| Debt Type | Amount (in $ millions) | Maturity |
|---|---|---|
| 3% Green Convertible Senior Notes | 402.5 | June 2029 |
| 2.5% Green Convertible Senior Notes | 115.0 | August 2025 |
| 4.6% Term Loan | 4.6 | October 2026 |
Recent Developments
In 2024, Bloom Energy issued 3% Green Convertible Senior Notes amounting to $402.5 million. The proceeds are intended to strengthen the company’s balance sheet and fund ongoing projects. Additionally, the company has received a Qualifying Advanced Energy Project Credit of up to $75.3 million from the IRS, supporting its manufacturing facility in Fremont, California.
Bloom Energy Corporation (BE) Mission Statement
Mission Statement Overview
Bloom Energy Corporation aims to deliver clean, reliable, and affordable energy through its innovative fuel cell technology. The company focuses on providing energy solutions that reduce carbon emissions and promote sustainability.
2024 Financial Performance
As of September 30, 2024, Bloom Energy reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $330.4 million | $400.3 million | (17.5) |
| Product Revenue | $233.8 million | $305.0 million | (23.3) |
| Gross Profit | $78.7 million | ($5.2 million) | N/A |
| Net Loss | ($14.6 million) | ($168.1 million) | 91.3 |
| Net Loss per Share | ($0.06) | ($0.80) | 92.5 |
Revenue Breakdown
The revenue composition for the nine months ended September 30, 2024, is as follows:
| Category | Revenue (in millions) |
|---|---|
| Product | $613.4 |
| Installation | $86.2 |
| Service | $159.8 |
| Electricity | $42.0 |
| Total Revenue | $901.5 |
Cost Structure
For the nine months ended September 30, 2024, Bloom Energy's cost of revenue was categorized as follows:
| Category | Cost (in millions) |
|---|---|
| Product | $432.2 |
| Installation | $95.3 |
| Service | $160.3 |
| Electricity | $28.3 |
| Total Cost of Revenue | $716.1 |
Operating Expenses
Bloom Energy's operating expenses for the nine months ended September 30, 2024, were as follows:
| Category | Expense (in millions) |
|---|---|
| Research and Development | $109.2 |
| Sales and Marketing | $46.2 |
| General and Administrative | $111.8 |
| Total Operating Expenses | $267.1 |
Liquidity Position
As of September 30, 2024, Bloom Energy's liquidity metrics included:
| Metric | Amount (in millions) |
|---|---|
| Cash and Cash Equivalents | $495.7 |
| Total Debt | $1,122.9 |
Investment and Future Outlook
On March 29, 2024, Bloom Energy received a notification for a Qualifying Advanced Energy Project Credit of up to $75.3 million under the Inflation Reduction Act of 2022, which supports their manufacturing facility in Fremont, California. This credit is subject to meeting specific certification requirements within two years.
Bloom Energy continues to evolve its business model, focusing on energy and hydrogen solutions, which enhances its market position and aligns with the growing demand for sustainable energy technologies.
How Bloom Energy Corporation (BE) Works
Business Model and Operations
Bloom Energy Corporation focuses on providing clean, reliable energy solutions through its proprietary Energy Servers, which utilize solid oxide fuel cell technology. The company is transitioning from traditional electricity generation to a broader energy solution that includes hydrogen production and carbon capture capabilities.
Financial Overview
As of September 30, 2024, Bloom Energy reported the following financial results:
| Metric | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Total Revenue | $330,399,000 | $400,268,000 | $901,463,000 | $976,554,000 |
| Net Loss | $(14,632,000) | $(168,078,000) | $(132,360,000) | $(312,054,000) |
| Gross Profit (Loss) | $78,734,000 | $(5,214,000) | $185,331,000 | $105,403,000 |
| Total Operating Expenses | $88,385,000 | $98,494,000 | $267,128,000 | $327,248,000 |
| Net Cash Used in Operating Activities | $392,200,000 | $494,300,000 | $1,100,000,000 | $1,200,000,000 |
Revenue Breakdown
The revenue breakdown for Bloom Energy includes product sales, installation services, service contracts, and electricity sales:
| Revenue Source | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Product Revenue | $233,770,000 | $304,976,000 | $613,442,000 | $713,427,000 |
| Installation Revenue | $32,052,000 | $21,916,000 | $86,229,000 | $66,762,000 |
| Service Revenue | $50,761,000 | $47,535,000 | $159,752,000 | $130,496,000 |
| Electricity Revenue | $13,816,000 | $25,841,000 | $42,040,000 | $65,869,000 |
Cost Analysis
The cost structure of Bloom Energy includes costs of revenue associated with products, installations, services, and electricity:
| Cost Type | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Product Cost | $155,124,000 | $182,832,000 | $432,213,000 | $457,591,000 |
| Installation Cost | $35,688,000 | $25,902,000 | $95,339,000 | $77,881,000 |
| Service Cost | $51,363,000 | $57,370,000 | $160,270,000 | $165,877,000 |
| Electricity Cost | $9,490,000 | $139,378,000 | $28,310,000 | $169,802,000 |
Debt and Financing
As of September 30, 2024, Bloom Energy's debt profile is as follows:
| Debt Type | Outstanding Principal | Net Carrying Value | Interest Rate | Maturity Date |
|---|---|---|---|---|
| 3% Green Convertible Senior Notes due June 2029 | $402,500,000 | $390,602,000 | 3.0% | June 2029 |
| 3% Green Convertible Senior Notes due June 2028 | $632,500,000 | $618,132,000 | 3.0% | June 2028 |
| 2.5% Green Convertible Senior Notes due August 2025 | $115,000,000 | $114,139,000 | 2.5% | August 2025 |
Cash Flow Analysis
Bloom Energy's cash flow activities for the first nine months of 2024 included:
| Cash Flow Activity | Amount |
|---|---|
| Net Cash Used in Operating Activities | $(392,200,000) |
| Cash Used in Investing Activities | $(47,700,000) |
| Net Cash Provided by Financing Activities | $244,400,000 |
Future Outlook and Strategic Initiatives
Bloom Energy is focusing on enhancing its production capacity and expanding its product offerings, including hydrogen solutions and carbon capture technologies. The company anticipates capital investments to support these initiatives, with a projected spending aligned with operational cash flows.
How Bloom Energy Corporation (BE) Makes Money
Revenue Streams
Bloom Energy generates revenue through four primary categories: product sales, installation services, service contracts, and electricity sales. Each category contributes differently to the overall financial performance of the company.
| Revenue Category | Q3 2024 Revenue ($ thousands) | Q3 2023 Revenue ($ thousands) | Change ($ thousands) | Change (%) |
|---|---|---|---|---|
| Product | 233,770 | 304,976 | (71,206) | (23.3) |
| Installation | 32,052 | 21,916 | 10,136 | 46.2 |
| Service | 50,761 | 47,535 | 3,226 | 6.8 |
| Electricity | 13,816 | 25,841 | (12,025) | (46.5) |
| Total Revenue | 330,399 | 400,268 | (69,869) | (17.5) |
Product Revenue
Product revenue represents the sale of Bloom Energy's fuel cell systems and related technologies. In Q3 2024, product revenue decreased by 23.3% to $233.8 million compared to $305.0 million in Q3 2023. This decline was primarily attributed to lower volume and pricing resulting from the PPA V repowering, which commenced in Q3 2023.
Installation Revenue
Installation revenue increased significantly by 46.2% to $32.1 million in Q3 2024, up from $21.9 million in Q3 2023. This growth was driven by the timing of achieving key project milestones, reflecting a robust demand for installation services.
Service Revenue
Service revenue, which includes maintenance contracts and other service agreements, rose by 6.8% to $50.8 million in Q3 2024, compared to $47.5 million in Q3 2023. This increase was largely due to higher maintenance contract revenues associated with the existing fleet of Energy Servers.
Electricity Revenue
Electricity revenue experienced a significant drop of 46.5%, totaling $13.8 million in Q3 2024, down from $25.8 million in Q3 2023. The decline was primarily due to a decrease in installed units, influenced by the PPA V repowering initiative.
Cost of Revenue
The cost of revenue for Bloom Energy also fluctuated in tandem with revenue changes, affecting gross profit margins across various segments.
| Cost Category | Q3 2024 Cost ($ thousands) | Q3 2023 Cost ($ thousands) | Change ($ thousands) | Change (%) |
|---|---|---|---|---|
| Product | 155,124 | 182,832 | (27,708) | (15.2) |
| Installation | 35,688 | 25,902 | 9,786 | 37.8 |
| Service | 51,363 | 57,370 | (6,007) | (10.5) |
| Electricity | 9,490 | 139,378 | (129,888) | (93.2) |
| Total Cost of Revenue | 251,665 | 405,482 | (153,817) | (37.9) |
Gross Profit and Margins
Bloom Energy's total gross profit improved significantly, reaching $78.7 million in Q3 2024, compared to a loss of $5.2 million in Q3 2023. The gross margin also reflected this improvement, with product gross margin at 34%, installation margin at -11%, service margin at -1%, and electricity margin at 31%.
| Gross Profit/Loss Category | Q3 2024 Gross Profit ($ thousands) | Q3 2023 Gross Profit ($ thousands) | Change ($ thousands) | Gross Margin (%) |
|---|---|---|---|---|
| Product | 78,646 | 122,144 | (43,498) | 34 |
| Installation | (3,636) | (3,986) | 350 | (11) |
| Service | (602) | (9,835) | 9,233 | (1) |
| Electricity | 4,326 | (113,537) | 117,863 | 31 |
| Total Gross Profit | 78,734 | (5,214) | 83,948 | 24 |
Operating Expenses
Operating expenses for Bloom Energy totaled $88.4 million in Q3 2024, compared to $98.5 million in Q3 2023. This reflects ongoing efforts to manage costs, with notable reductions in general and administrative expenses.
| Operating Expense Category | Q3 2024 Expense ($ thousands) | Q3 2023 Expense ($ thousands) | Change ($ thousands) |
|---|---|---|---|
| Research and Development | 36,315 | 35,126 | 1,189 |
| Sales and Marketing | 14,667 | 20,002 | (5,335) |
| General and Administrative | 37,403 | 43,366 | (5,963) |
| Total Operating Expenses | 88,385 | 98,494 | (10,109) |
Net Loss
Bloom Energy reported a net loss of $14.6 million for Q3 2024, an improvement from a net loss of $168.1 million in Q3 2023. This reflects the company's efforts to improve operational efficiency and reduce costs.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Loss ($ thousands) | (14,632) | (168,078) |
| Net Loss Per Share | (0.06) | (0.80) |
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Resources:
- Bloom Energy Corporation (BE) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Bloom Energy Corporation (BE)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Bloom Energy Corporation (BE)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.