Business Wire | Feb 10, 2021 04:02PM EST

Bloom Energy Announces Fourth Quarter 2020 and Full Year 2020 Financial Results

Feb. 10, 2021

SAN JOSE, Calif.--(BUSINESS WIRE)--Feb. 10, 2021--Bloom Energy Corporation (NYSE: BE) today announced financial results for its fourth quarter and full year that ended December 31, 2020.

Fourth Quarter Financial Highlights

* Revenue of $249.4 million in the fourth quarter of 2020, an increase of 16.8% compared to revenue of $213.5 million in the fourth quarter of 2019, primarily driven by a 16.6% increase in acceptances. * 450 acceptances, or 45.0 megawatts (MW), a 16.6% increase year-over-year. Recall that an acceptance typically occurs when the system is turned on and producing full power. For orders where one of our partners performs the installation, our acceptance criteria are different. Those acceptances are generally achieved when the systems are shipped or delivered to our partner. Upon acceptance, the customer order is moved from product backlog and is recognized as revenue. * Gross margin of 25.5% in the fourth quarter of 2020, an increase of 13.8 percentage points compared to gross margin of 11.7% in the fourth quarter of 2019, primarily driven by an improvement in product gross margin from 10.5% to 38.8% over the same period. This improvement in product gross margins was driven by product cost reductions outpacing ASP reductions. * Excluding stock-based compensation, non-GAAP gross margin was 27.0% in the fourth quarter of 2020, an increase of 11.3 percentage points compared to non-GAAP gross margin of 15.7% in the fourth quarter of 2019, primarily driven by an improvement in product gross margin. * Operating margin of (1.8%) in the fourth quarter of 2020, an improvement of 20.6 percentage points compared to operating margin of (22.4%) in the fourth quarter of 2019, driven by the improvements in gross margin and a $14.6 million reduction in stock-based compensation expenses burdening operating expenses. * Excluding stock-based compensation, non-GAAP operating margin was 4.8% in the fourth quarter of 2020, an improvement of 10.3 percentage points compared to non-GAAP operating margin of (5.5%) in the fourth quarter of 2019, driven by an improvement in gross margin. * GAAP EPS of ($0.16) and Adjusted EPS of ($0.08) in the fourth quarter of 2020, compared to GAAP EPS of ($0.58) and Adjusted EPS of ($0.29) in the fourth quarter of 2019.

Full Year 2020 Financial Highlights

* Revenue of $794.2 million in 2020, an increase of 1.1% compared to revenue of $785.2 million in 2019, primarily driven by an 11.1% increase in acceptances and offset by the favorable impact of the PPA II upgrade on revenue in 2019. * 1,326 acceptances, or 132.6 MW, an 11.1% increase versus full year 2019. * Gross margin of 20.9% in 2020, an increase of 8.5 percentage points compared to gross margin of 12.4% in 2019, primarily driven by an improvement in product gross margin of from 21.9% to 35.8%. This improvement was driven by our product cost reductions outpacing ASP reductions. * Excluding stock-based compensation, non-GAAP gross margin of 23.1% in 2020, an increase of 4.9 percentage points compared to non-GAAP gross margin of 18.2% in 2019, driven primarily by an improvement in product gross margin. * Operating margin of (10.2%) in 2020, an improvement of 19.4 percentage points compared to operating margin of (29.6%) in 2019, driven by the improvement in gross margin and a $94.4 million reduction in stock-based compensation expenses burdening operating expenses. * Excluding stock-based compensation, non-GAAP operating margin of (0.9%) in 2020, an improvement of 3.8 percentage points compared to non-GAAP operating margin of (4.7%) in 2019, driven primarily by an improvement in gross margin. * GAAP EPS of ($1.14) and Adjusted EPS of ($0.67) in 2020, compared to GAAP EPS of ($2.67) and Adjusted EPS of ($1.07) in 2019.

KR Sridhar, founder, chairman, and chief executive officer, Bloom Energy, commented: "2020 was a year unlike any other in modern history as we dealt with the dual challenges of the COVID-19 global pandemic and an uncertain economy. Yet, Bloom Energy's management team and employees proved resilient in executing our business plan, delivering strong financial performance, solid operating results and significantly improving our balance sheet. We are well-positioned for growth as we implement our technology road map and build applications for the Bloom Energy Server that solve critical energy problems like resiliency, reducing carbon emissions and costs. As we enter 2021, there are many positive developments. The Biden Administration is embracing proactive climate change policies and continuing a low-interest environment while focusing on critical infrastructure investments that fit well with our strategic approach. And, beyond the United States, there is significant momentum in Asia and opportunities to grow in other markets around the world. We believe our work in 2020 provides a spring board for success in 2021 and beyond."

Greg Cameron, executive vice president and chief financial officer, Bloom Energy, commented: "We were encouraged by the financial performance during the fourth quarter of 2020 across revenue, gross margin, operating income and cash. Our bookings in the second half of the year gained momentum, and we have a strong backlog for 2021 that provides high project visibility into our 2021 guidance framework and improving cash flow outlook. We continue to make significant progress on reducing our product costs, and our technology investments remain on track."

Summary of Key Financial Metrics

Preliminary Summary GAAP Profit and Loss Statements

($000) Q420 Q320 Q419 FY20 FY19

Revenue 249,387 200,305 213,543 794,247 785,177

Cost of Revenue 185,761 144,318 188,595 628,454 687,590

Gross Profit 63,626 55,987 24,948 165,793 97,587

Gross Margin 25.5% 28.0% 11.7% 20.9% 12.4%

Operating Expenses 68,144 56,359 72,820 246,578 330,391

Operating Loss (4,518) (372) (47,872) (80,785) (232,804)

Operating Margin (1.8%) (0.2%) (22.4%) (10.2%) (29.6%)

Non-operating Expenses^1 22,620 11,582 20,415 76,768 74,064

Net Loss (27,138) (11,954) (68,287) (157,553) (306,868)

GAAP EPS ($0.16) ($0.09) ($0.58) ($1.14) ($2.67)

1.

Non-Operating Expenses and tax provision and non-controlling interest

1. Non-Operating Expenses and tax provision and non-controlling interest

Preliminary Summary Non-GAAP Financial Information1($000)

Q420

Q320

Q419

FY20

FY19

Revenue

249,387

200,305

213,543

794,247

785,177

Cost of Revenue2

182,097

140,750

180,001

610,979

642,161

Gross Profit2

67,290

59,555

33,542

183,268

143,016

Gross Margin2

27.0%

29.7%

15.7%

23.1%

18.2%

Operating Expenses2

55,300

44,192

45,356

190,160

179,529

Operating Income (loss) 2

11,990

15,363

(11,814)

(6,892)

(36,513)

Operating Margin2

4.8%

7.7%

(5.5%)

(0.9%)

(4.7%)

Adjusted EBITDA3

25,521

27,673

1,188

45,497

42,915

Adjusted EPS4

($0.08)

($0.04)

($0.29)

($0.67)

($1.07)

Preliminary Summary Non-GAAP Financial Information^1 ($000) Q420 Q320 Q419 FY20 FY19

Revenue 249,387 200,305 213,543 794,247 785,177

Cost of Revenue^2 182,097 140,750 180,001 610,979 642,161

Gross Profit^2 67,290 59,555 33,542 183,268 143,016

Gross Margin^2 27.0% 29.7% 15.7% 23.1% 18.2%

Operating Expenses^2 55,300 44,192 45,356 190,160 179,529

Operating Income (loss)^ 2 11,990 15,363 (11,814) (6,892) (36,513)

Operating Margin^2 4.8% 7.7% (5.5%) (0.9%) (4.7%)

Adjusted EBITDA^3 25,521 27,673 1,188 45,497 42,915

Adjusted EPS^4 ($0.08) ($0.04) ($0.29) ($0.67) ($1.07)

1.

Reference pages 12-15 for detailed reconciliation of GAAP to Non-GAAP financial measures

2.

Excludes stock-based compensation

3.

Adjusted EBITDA is net income (loss) excluding non-controlling interest, gain (loss) on derivative revaluations, fair value adjustment for PPA derivatives, stock-based compensation, provision for income taxes, depreciation and amortization, interest expense and other one-time items

4.

Adjusted EPS is net income (loss) excluding non-controlling interest, gain (loss) on derivative revaluations, fair value adjustment for PPA derivatives and stock-based compensation using the adjusted Weighted Average Shares Outstanding (WASO) share count

Revenue and Margin Highlights

Revenue in the fourth quarter of 2020 included $171.8 million of product revenue, $28.8 million of installation revenue, $32.1 million of service revenue, and $16.6 million of electricity revenue. For the full year 2020, Bloom Energy achieved $518.6 million of product revenue, $101.9 million of installation revenue, $109.6 million of service revenue and $64.1 million of electricity revenue.

GAAP gross margin in the fourth quarter of 2020 was 25.5%, up 13.8 percentage points compared to the fourth quarter of 2019 and 20.9% for the full year 2020, up 8.5 percentage points versus full year 2019. Non-GAAP gross margin in the fourth quarter of 2020 was 27.0%, up 11.3 percentage points compared to the fourth quarter of 2019 and 23.1% for the full year 2020, up 4.9 percentage points versus full year 2019. The improvement in margins for both the fourth quarter and full year 2020 was driven by lower product costs, better performance on installations and higher product margins.

Balance Sheet Highlights

Bloom Energy's cash position, including restricted cash, as of December 31, 2020 was $416.7 million, compared to $504.4 million as of September 30, 2020. Bloom ended the year with $527.1 million of debt, a decrease of $180.1 million from the third quarter of 2020, which included a reduction of $175.5 million in recourse debt.

2021 Outlook

Bloom announced the following outlook for the full-year 2021:

* Revenue: $950 million - $1 billion * Non-GAAP Gross Margin*: ~25% * Non-GAAP Operating Margin*: ~3% * Cash Flow from Operations: Approaching Positive

*Non-GAAP gross margin and non-GAAP operating margin only exclude stock-based compensation.

Conference Call Details

We will host a conference call today, February 10, 2021, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) to discuss its financial results. To participate in the live call, analysts and investors may call +1 (844) 828-0524 and enter the passcode: 5175667. Those calling from outside the United States may dial +1 (647) 689-5146 and enter the same passcode: 5175667. A simultaneous live webcast will also be available under the Investor Relations section on our website at https://investor.bloomenergy.com/. Following the webcast, an archived version will be available on our website for one year. A telephonic replay of the conference call will be available for one week following the call, by dialing +1 (800) 585-8367 or +1 (416) 621-4642 and entering passcode 5175667.

Use of Non-GAAP Financial Measures

This release includes certain non-GAAP financial measures as defined by the rules and regulations of the Securities and Exchange Commission (SEC). These non-GAAP financial measures are in addition to, and not a substitute for or superior to, measures of financial performance prepared in accordance with U.S. GAAP. There are a number of limitations related to the use of these non-GAAP financial measures versus their nearest GAAP equivalents. For example, other companies may calculate non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. We urge you to review the reconciliations of our non-GAAP financial measures to the most directly comparable U.S. GAAP financial measures set forth in this press release, and not to rely on any single financial measure to evaluate our business. With respect to our expectations regarding our 2021 Outlook, we are not able to provide a quantitative reconciliation of non-GAAP gross margin and non-GAAP operating margin measures to the corresponding GAAP measures without unreasonable efforts.

About Bloom Energy

Bloom Energy's mission is to make clean, reliable energy affordable for everyone in the world. Bloom's product, the Bloom Energy Server, delivers highly reliable and resilient, always-on electric power that is clean, cost-effective, and ideal for microgrid applications. Bloom's customers include many Fortune 100 companies and leaders in manufacturing, data centers, healthcare, retail, higher education, utilities, and other industries. For more information, visit www.bloomenergy.com.

Forward-Looking Statements

This press release contains certain forward-looking statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "should," "will," and "would" or the negative of these words or similar terms or expressions that concern Bloom's expectations, strategy, priorities, plans or intentions. These forward-looking statements include, but are not limited to, expectations for growth as we implement our technology roadmap and build new applications; the pace of development of new product markets; the ability of the new Administration to enact new climate change policies; our ability for growth outside the United States; our plans for growth and success in 2021 and beyond; our expectations regarding improving cash flow; our ability to reduce our product costs; our ability to introduce new product; and our financial outlook for 2021. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results due to a variety of factors including, but not limited to, our limited operating history, the emerging nature of the distributed generation market, the significant losses we have incurred in the past, our ability to service our existing debt obligations, the significant upfront costs of our Energy Servers, the ability to secure financing for our products, the risk of manufacturing defects, the accuracy of our estimates regarding the useful life of our Energy Servers, the availability of rebates, tax credits and other tax benefits, our reliance on tax equity financing arrangements, our reliance upon a limited number of customers, our lengthy sales and installation cycle, construction, utility interconnection and other delays and cost overruns related to the installation of our Energy Servers, business and economic conditions and growth trends in commercial and industrial energy markets, global economic conditions and uncertainties in the geopolitical environment, overall electricity generation market, the impact of the COVID-19 pandemic on the global economy and its potential impact on our supply chain, installation operations, demand for our products, our ability to protect our intellectual property, the restatement of our financial statements as announced in our Current Report on Form 8-K filed with the SEC on February 12, 2020 and other risks and uncertainties detailed in Bloom's SEC filings from time to time. More information on potential factors that may impact Bloom's business are set forth in Bloom's periodic reports filed with the SEC, including its Annual Report on Form 10-K for the year ended on December 31, 2019 as filed with the SEC on March 31, 2020, and its Quarterly Report on Form 10-Q for the quarter ended September 30, 2020 as filed with the SEC on November 6, 2020, as well as subsequent reports filed with or furnished to the SEC from time to time. These reports are available on Bloom's website at www.bloomenergy.com and the SEC's website at www.sec.gov. Bloom assumes no obligation to, and does not currently intend to, update any such forward-looking statements.

The Investor Relations section of Bloom's website at investor.bloomenergy.com contains a significant amount of information about Bloom Energy, including financial and other information for investors. We encourage investors to visit this website from time to time, as information is updated and new information is posted.

1. Reference pages 12-15 for detailed reconciliation of GAAP to Non-GAAP financial measures

2. Excludes stock-based compensation

Adjusted EBITDA is net income (loss) excluding non-controlling interest,3. gain (loss) on derivative revaluations, fair value adjustment for PPA derivatives, stock-based compensation, provision for income taxes, depreciation and amortization, interest expense and other one-time items

Adjusted EPS is net income (loss) excluding non-controlling interest, gain4. (loss) on derivative revaluations, fair value adjustment for PPA derivatives and stock-based compensation using the adjusted Weighted Average Shares Outstanding (WASO) share count

Revenue and Margin Highlights

Revenue in the fourth quarter of 2020 included $171.8 million of product revenue, $28.8 million of installation revenue, $32.1 million of service revenue, and $16.6 million of electricity revenue. For the full year 2020, Bloom Energy achieved $518.6 million of product revenue, $101.9 million of installation revenue, $109.6 million of service revenue and $64.1 million of electricity revenue.

GAAP gross margin in the fourth quarter of 2020 was 25.5%, up 13.8 percentage points compared to the fourth quarter of 2019 and 20.9% for the full year 2020, up 8.5 percentage points versus full year 2019. Non-GAAP gross margin in the fourth quarter of 2020 was 27.0%, up 11.3 percentage points compared to the fourth quarter of 2019 and 23.1% for the full year 2020, up 4.9 percentage points versus full year 2019. The improvement in margins for both the fourth quarter and full year 2020 was driven by lower product costs, better performance on installations and higher product margins.

Balance Sheet Highlights

Bloom Energy's cash position, including restricted cash, as of December 31, 2020 was $416.7 million, compared to $504.4 million as of September 30, 2020. Bloom ended the year with $527.1 million of debt, a decrease of $180.1 million from the third quarter of 2020, which included a reduction of $175.5 million in recourse debt.

2021 Outlook

Bloom announced the following outlook for the full-year 2021:

* Revenue: $950 million - $1 billion * Non-GAAP Gross Margin*: ~25% * Non-GAAP Operating Margin*: ~3% * Cash Flow from Operations: Approaching Positive

*Non-GAAP gross margin and non-GAAP operating margin only exclude stock-based compensation.

Conference Call Details

We will host a conference call today, February 10, 2021, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) to discuss its financial results. To participate in the live call, analysts and investors may call +1 (844) 828-0524 and enter the passcode: 5175667. Those calling from outside the United States may dial +1 (647) 689-5146 and enter the same passcode: 5175667. A simultaneous live webcast will also be available under the Investor Relations section on our website at https://investor.bloomenergy.com/. Following the webcast, an archived version will be available on our website for one year. A telephonic replay of the conference call will be available for one week following the call, by dialing +1 (800) 585-8367 or +1 (416) 621-4642 and entering passcode 5175667.

Use of Non-GAAP Financial Measures

This release includes certain non-GAAP financial measures as defined by the rules and regulations of the Securities and Exchange Commission (SEC). These non-GAAP financial measures are in addition to, and not a substitute for or superior to, measures of financial performance prepared in accordance with U.S. GAAP. There are a number of limitations related to the use of these non-GAAP financial measures versus their nearest GAAP equivalents. For example, other companies may calculate non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. We urge you to review the reconciliations of our non-GAAP financial measures to the most directly comparable U.S. GAAP financial measures set forth in this press release, and not to rely on any single financial measure to evaluate our business. With respect to our expectations regarding our 2021 Outlook, we are not able to provide a quantitative reconciliation of non-GAAP gross margin and non-GAAP operating margin measures to the corresponding GAAP measures without unreasonable efforts.

About Bloom Energy

Bloom Energy's mission is to make clean, reliable energy affordable for everyone in the world. Bloom's product, the Bloom Energy Server, delivers highly reliable and resilient, always-on electric power that is clean, cost-effective, and ideal for microgrid applications. Bloom's customers include many Fortune 100 companies and leaders in manufacturing, data centers, healthcare, retail, higher education, utilities, and other industries. For more information, visit www.bloomenergy.com.

Forward-Looking Statements

This press release contains certain forward-looking statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "should," "will," and "would" or the negative of these words or similar terms or expressions that concern Bloom's expectations, strategy, priorities, plans or intentions. These forward-looking statements include, but are not limited to, expectations for growth as we implement our technology roadmap and build new applications; the pace of development of new product markets; the ability of the new Administration to enact new climate change policies; our ability for growth outside the United States; our plans for growth and success in 2021 and beyond; our expectations regarding improving cash flow; our ability to reduce our product costs; our ability to introduce new product; and our financial outlook for 2021. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results due to a variety of factors including, but not limited to, our limited operating history, the emerging nature of the distributed generation market, the significant losses we have incurred in the past, our ability to service our existing debt obligations, the significant upfront costs of our Energy Servers, the ability to secure financing for our products, the risk of manufacturing defects, the accuracy of our estimates regarding the useful life of our Energy Servers, the availability of rebates, tax credits and other tax benefits, our reliance on tax equity financing arrangements, our reliance upon a limited number of customers, our lengthy sales and installation cycle, construction, utility interconnection and other delays and cost overruns related to the installation of our Energy Servers, business and economic conditions and growth trends in commercial and industrial energy markets, global economic conditions and uncertainties in the geopolitical environment, overall electricity generation market, the impact of the COVID-19 pandemic on the global economy and its potential impact on our supply chain, installation operations, demand for our products, our ability to protect our intellectual property, the restatement of our financial statements as announced in our Current Report on Form 8-K filed with the SEC on February 12, 2020 and other risks and uncertainties detailed in Bloom's SEC filings from time to time. More information on potential factors that may impact Bloom's business are set forth in Bloom's periodic reports filed with the SEC, including its Annual Report on Form 10-K for the year ended on December 31, 2019 as filed with the SEC on March 31, 2020, and its Quarterly Report on Form 10-Q for the quarter ended September 30, 2020 as filed with the SEC on November 6, 2020, as well as subsequent reports filed with or furnished to the SEC from time to time. These reports are available on Bloom's website at www.bloomenergy.com and the SEC's website at www.sec.gov. Bloom assumes no obligation to, and does not currently intend to, update any such forward-looking statements.

The Investor Relations section of Bloom's website at investor.bloomenergy.com contains a significant amount of information about Bloom Energy, including financial and other information for investors. We encourage investors to visit this website from time to time, as information is updated and new information is posted.

Condensed Consolidated Balance Sheets (preliminary & unaudited)

(in thousands)

December 31,

2020 2019

Assets

Current assets:

Cash and cash equivalents $ 246,947 $ 202,823

Restricted cash 52,470 30,804

Accounts receivable 99,513 37,828

Inventories 142,059 109,606

Deferred cost of revenue 41,469 58,470

Customer financing receivable 5,428 5,108

Prepaid expenses and other current assets 30,718 28,068

Total current assets 618,604 472,707

Property, plant and equipment, net 600,628 607,059

Operating lease right-of-use assets 35,621 -

Customer financing receivable, non-current 45,268 50,747

Restricted cash, non-current 117,293 143,761

Deferred cost of revenue, non-current 2,462 6,665

Other long-term assets 34,511 41,652

Total assets $ 1,454,387 $ 1,322,591

Liabilities, Redeemable Noncontrolling Interest,Stockholders' Deficit and Noncontrolling Interest

Current liabilities:

Accounts payable $ 58,334 $ 55,579

Accrued warranty 10,263 10,333

Accrued expenses and other current liabilities 112,004 70,284

Deferred revenue and customer deposits 114,286 89,192

Operating lease liabilities 7,899 -

Financing obligations 12,745 10,993

Current portion of recourse debt - 304,627

Current portion of non-recourse debt 120,846 8,273

Current portion of recourse debt from related - 20,801 parties

Current portion of non-recourse debt from - 3,882 related parties

Total current liabilities 436,377 573,964

Derivative liabilities 4,989 17,551

Deferred revenue and customer deposits, net of 87,463 125,529 current portion

Operating lease liabilities, net of current 41,849 - portion

Financing obligations, non-current 459,981 446,165

Long-term portion of recourse debt 168,008 75,962

Long-term portion of non-recourse debt 102,045 192,180

Long-term portion of non-recourse debt from - 31,087 related parties

Other long-term liabilities 12,279 28,013

Total liabilities 1,312,991 1,490,451



Redeemable noncontrolling interest 377 443

Stockholders' deficit:

Common stock 17 12

Additional paid-in capital 3,182,753 2,686,759

Accumulated other comprehensive income (loss) (9 ) 19

Accumulated deficit (3,103,937 ) (2,946,384 )

Total stockholders' equity (deficit) 78,824 (259,594 )

Noncontrolling interest 62,195 91,291

Total liabilities, redeemable noncontrollinginterest, stockholders' deficit and $ 1,454,387 $ 1,322,591noncontrolling interest

Condensed Consolidated Statements of Operations (preliminary & unaudited)

(in thousands, except per share data)

Three Months Ended December 31,

Years Ended December 31,

2020

2019

2020

2019

Revenue:

Product

$

171,801

$

158,427

$

518,633

$

557,336

Installation

28,827

14,429

101,887

60,826

Service

32,137

25,628

109,633

95,786

Electricity

16,622

15,059

64,094

71,229

Total revenue

249,387

213,543

794,247

785,177

Cost of revenue:

Product

105,071

141,782

332,724

435,479

Installation

29,604

16,901

116,542

76,487

Service

39,493

17,127

132,329

100,238

Electricity

11,593

12,785

46,859

75,386

Total cost of revenue

185,761

188,595

628,454

687,590

Gross profit

63,626

24,948

165,793

97,587

Operating expenses:

Research and development

21,690

22,148

83,577

104,168

Sales and marketing

18,840

17,357

55,916

73,573

General and administrative

27,614

33,315

107,085

152,650

Total operating expenses

68,144

72,820

246,578

330,391

Loss from operations

(4,518

)

(47,872

)

(80,785

)

(232,804

)

Interest income

70

862

1,475

5,661

Interest expense

(21,246

)

(21,635

)

(76,276

)

(87,480

)

Interest expense to related parties

-

(1,933

)

(2,513

)

(6,756

)

Other income (expense), net

(4,176

)

138

(8,318

)

706

Loss on extinguishment of debt

-

-

(12,878

)

-

Gain (loss) on revaluation of embedded derivatives

(1,737

)

(540

)

464

(2,160

)

Loss before income taxes

(31,607

)

(70,980

)

(178,831

)

(322,833

)

Income tax provision

(16

)

31

256

633

Net loss

(31,591

)

(71,011

)

(179,087

)

(323,466

)

Less: Net loss attributable to noncontrolling interests and redeemable noncontrolling interests

(4,453

)

(5,178

)

(21,534

)

(19,052

)

Net loss attributable to Class A and Class B common stockholders

(27,138

)

(65,833

)

(157,553

)

(304,414

)

Less: deemed dividend to noncontrolling interest

-

(2,454

)

-

(2,454

)

Net loss available to Class A and Class B common stockholders

$

(27,138

)

$

(68,287

)

$

(157,553

)

$

(306,868

)

Net loss per share available to Class A and Class B common stockholders, basic and diluted

$

(0.16

)

$

(0.58

)

$

(1.14

)

$

(2.67

)

Weighted average shares used to compute net loss per share attributable to Class A and Class B common stockholders, basic and diluted

165,975

118,588

138,722

115,118

Condensed Consolidated Statements of Operations (preliminary & unaudited)

(in thousands, except per share data)

Three Months Ended Years Ended December 31, December 31,

2020 2019 2020 2019

Revenue:

Product $ 171,801 $ 158,427 $ 518,633 $ 557,336

Installation 28,827 14,429 101,887 60,826

Service 32,137 25,628 109,633 95,786

Electricity 16,622 15,059 64,094 71,229

Total revenue 249,387 213,543 794,247 785,177

Cost of revenue:

Product 105,071 141,782 332,724 435,479

Installation 29,604 16,901 116,542 76,487

Service 39,493 17,127 132,329 100,238

Electricity 11,593 12,785 46,859 75,386

Total cost of revenue 185,761 188,595 628,454 687,590

Gross profit 63,626 24,948 165,793 97,587

Operating expenses:

Research and 21,690 22,148 83,577 104,168 development

Sales and marketing 18,840 17,357 55,916 73,573

General and 27,614 33,315 107,085 152,650 administrative

Total operating 68,144 72,820 246,578 330,391 expenses

Loss from operations (4,518 ) (47,872 ) (80,785 ) (232,804 )

Interest income 70 862 1,475 5,661

Interest expense (21,246 ) (21,635 ) (76,276 ) (87,480 )

Interest expense to - (1,933 ) (2,513 ) (6,756 )related parties

Other income (4,176 ) 138 (8,318 ) 706 (expense), net

Loss onextinguishment of - - (12,878 ) - debt

Gain (loss) onrevaluation of (1,737 ) (540 ) 464 (2,160 )embedded derivatives

Loss before income (31,607 ) (70,980 ) (178,831 ) (322,833 )taxes

Income tax provision (16 ) 31 256 633

Net loss (31,591 ) (71,011 ) (179,087 ) (323,466 )

Less: Net lossattributable tononcontrollinginterests and (4,453 ) (5,178 ) (21,534 ) (19,052 )redeemablenoncontrollinginterests

Net loss attributableto Class A and Class (27,138 ) (65,833 ) (157,553 ) (304,414 )B common stockholders

Less: deemed dividendto noncontrolling - (2,454 ) - (2,454 )interest

Net loss available toClass A and Class B $ (27,138 ) $ (68,287 ) $ (157,553 ) $ (306,868 )common stockholders

Net loss per shareavailable to Class Aand Class B common $ (0.16 ) $ (0.58 ) $ (1.14 ) $ (2.67 )stockholders, basicand diluted

Weighted averageshares used tocompute net loss pershare attributable to 165,975 118,588 138,722 115,118 Class A and Class Bcommon stockholders,basic and diluted

Condensed Consolidated Statement of Cash Flows (preliminary & unaudited)

(in thousands)

Years Ended December 31,

2020

2019

Cash flows from operating activities:

Net loss

$

(179,087

)

$

(323,466

)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

Depreciation and amortization

52,279

78,584

Non cash lease expense

5,328

-

Write-off of property, plant and equipment, net

38

3,117

Impairment of equity method investment

4,236

11,302

Write-off of PPA II and PPA IIIb decommissioned assets

-

70,543

Debt make-whole expense

-

5,934

Revaluation of derivative contracts

(497

)

2,779

Stock-based compensation

73,893

196,291

Loss on long-term REC purchase contract

72

53

Loss on extinguishment of debt

11,785

-

Amortization of debt issuance and premium cost, net

6,455

22,130

Changes in operating assets and liabilities:

Accounts receivable

(61,685

)

51,952

Inventories

(33,004

)

18,425

Deferred cost of revenue

19,910

(21,992

)

Customer financing receivable and other

5,159

5,520

Prepaid expenses and other current assets

(3,124

)

8,643

Operating lease right-of-use assets

(2,752

)

-

Other long-term assets

2,904

3,618

Accounts payable

(620

)

(11,310

)

Accrued warranty

(241

)

(6,603

)

Accrued expenses and other current liabilities

17,753

6,728

Deferred revenue and customer deposits

(12,972

)

37,146

Other long-term liabilities

(4,523

)

4,376

Net cash (used in) provided by operating activities

(98,693

)

163,770

Cash flows from investing activities:

Purchase of property, plant and equipment

(37,913

)

(51,053

)

Proceeds from maturity of marketable securities

-

104,500

Net cash (used in) provided by investing activities

(37,913

)

53,447

Years Ended December 31,

2020

2019

Cash flows from financing activities:

Proceeds from issuance of debt

300,000

-

Proceeds from issuance of debt to related parties

30,000

-

Repayment of debt

(176,522

)

(119,277

)

Repayment of debt to related parties

(2,105

)

(2,200

)

Debt make-whole payment

-

(5,934

)

Debt issuance costs

(13,247

)

-

Proceeds from financing obligations

26,279

72,334

Repayment of financing obligations

(10,859

)

(8,954

)

Contributions from noncontrolling interest

6,513

-

Payments to noncontrolling and redeemable noncontrolling interests

-

(56,459

)

Distributions to noncontrolling and redeemable noncontrolling interests

(7,622

)

(12,537

)

Proceeds from issuance of common stock

23,491

12,713

Net cash provided by (used in) financing activities

175,928

(120,314

)

Net increase in cash, cash equivalents, and restricted cash

39,322

96,903

Cash, cash equivalents, and restricted cash:

Beginning of period

377,388

280,485

End of period

$

416,710

$

377,388

Reconciliation of GAAP to Non-GAAP Financial Measures (preliminary & unaudited) (in thousands)

Gross Profit and Gross Margin to Gross Profit Excluding Stock-Based Compensation and Gross Margin Excluding Stock-Based Compensation

Gross margin and gross profit excluding stock-based compensation (SBC) are supplemental measures of operating performance that do not represent and should not be considered alternatives to gross margin or gross profit, as determined under GAAP. These measures remove the impact of stock-based compensation. We believe that gross margin and gross profit excluding stock-based compensation supplement the GAAP measures and enable us to more effectively evaluate our performance period-over-period. A reconciliation of gross margin and gross profit excluding stock-based compensation to gross margin and gross profit, the most directly comparable GAAP measures, and the computation of gross margin excluding stock-based compensation are as follows:

Condensed Consolidated Statement of Cash Flows (preliminary & unaudited)

(in thousands)

Years Ended December 31,

2020 2019

Cash flows from operating activities:

Net loss $ (179,087 ) $ (323,466 )

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

Depreciation and amortization 52,279 78,584

Non cash lease expense 5,328 -

Write-off of property, plant and equipment, net 38 3,117

Impairment of equity method investment 4,236 11,302

Write-off of PPA II and PPA IIIb decommissioned - 70,543 assets

Debt make-whole expense - 5,934

Revaluation of derivative contracts (497 ) 2,779

Stock-based compensation 73,893 196,291

Loss on long-term REC purchase contract 72 53

Loss on extinguishment of debt 11,785 -

Amortization of debt issuance and premium cost, 6,455 22,130 net

Changes in operating assets and liabilities:

Accounts receivable (61,685 ) 51,952

Inventories (33,004 ) 18,425

Deferred cost of revenue 19,910 (21,992 )

Customer financing receivable and other 5,159 5,520

Prepaid expenses and other current assets (3,124 ) 8,643

Operating lease right-of-use assets (2,752 ) -

Other long-term assets 2,904 3,618

Accounts payable (620 ) (11,310 )

Accrued warranty (241 ) (6,603 )

Accrued expenses and other current liabilities 17,753 6,728

Deferred revenue and customer deposits (12,972 ) 37,146

Other long-term liabilities (4,523 ) 4,376

Net cash (used in) provided by operating (98,693 ) 163,770 activities

Cash flows from investing activities:

Purchase of property, plant and equipment (37,913 ) (51,053 )

Proceeds from maturity of marketable securities - 104,500

Net cash (used in) provided by investing (37,913 ) 53,447 activities

Years Ended December 31,

2020 2019



Cash flows from financing activities:

Proceeds from issuance of debt 300,000 -

Proceeds from issuance of debt to related parties 30,000 -

Repayment of debt (176,522 ) (119,277 )

Repayment of debt to related parties (2,105 ) (2,200 )

Debt make-whole payment - (5,934 )

Debt issuance costs (13,247 ) -

Proceeds from financing obligations 26,279 72,334

Repayment of financing obligations (10,859 ) (8,954 )

Contributions from noncontrolling interest 6,513 -

Payments to noncontrolling and redeemable - (56,459 )noncontrolling interests

Distributions to noncontrolling and redeemable (7,622 ) (12,537 )noncontrolling interests

Proceeds from issuance of common stock 23,491 12,713

Net cash provided by (used in) financing 175,928 (120,314 )activities

Net increase in cash, cash equivalents, and 39,322 96,903 restricted cash

Cash, cash equivalents, and restricted cash:

Beginning of period 377,388 280,485

End of period $ 416,710 $ 377,388

Reconciliation of GAAP to Non-GAAP Financial Measures (preliminary & unaudited) (in thousands)

Gross Profit and Gross Margin to Gross Profit Excluding Stock-Based Compensation and Gross Margin Excluding Stock-Based Compensation

Gross margin and gross profit excluding stock-based compensation (SBC) are supplemental measures of operating performance that do not represent and should not be considered alternatives to gross margin or gross profit, as determined under GAAP. These measures remove the impact of stock-based compensation. We believe that gross margin and gross profit excluding stock-based compensation supplement the GAAP measures and enable us to more effectively evaluate our performance period-over-period. A reconciliation of gross margin and gross profit excluding stock-based compensation to gross margin and gross profit, the most directly comparable GAAP measures, and the computation of gross margin excluding stock-based compensation are as follows:

Q420 Q320 Q419 FY20 FY19

Revenue 249,387 200,305 213,543 794,247 785,177

Gross Profit 63,626 55,987 24,948 165,793 97,587

Gross Margin % 25.5% 28.0% 11.7% 20.9% 12.4%

Stock-based compensation (Cost of 3,664 3,568 8,594 17,475 45,429Revenue)

Gross Profit excluding SBC 67,290 59,555 33,542 183,268 143,016

Gross Margin excluding SBC % 27.0% 29.7% 15.7% 23.1% 18.2%

Cost of Revenue and Operating Expenses to Cost of Revenue and Operating Expenses Excluding Stock-Based Compensation

Cost of revenue and operating expenses excluding stock-based compensation are a supplemental measure of operating performance that does not represent and should not be considered an alternative to cost of revenue and operating expenses, as determined under GAAP. This measure removes the impact of stock-based compensation. We believe that cost of revenue and operating expenses excluding stock-based compensation supplements the GAAP measure and enables us to more effectively evaluate our performance period-over-period. A reconciliation of cost of revenue and operating expenses excluding stock-based compensation to cost of revenue and operating expenses, the most directly comparable GAAP measure, are as follows:

Q420 Q320 Q419 FY20 FY19

Cost of Revenue 185,761 144,318 188,595 628,454 687,590

Stock-Based Compensation - Cost of 3,664 3,568 8,594 17,475 45,429Revenue

Cost of Revenue - Excluding SBC 182,097 140,750 180,001 610,979 642,161

Q420

Q320

Q419

FY20

FY19

Operating Expenses

68,144

56,359

72,820

246,578

330,391

Stock-Based Compensation - Operating Expenses

12,844

12,167

27,464

56,418

150,862

Operating Expenses - Excluding SBC

55,300

44,192

45,356

190,160

179,529

Operating Loss to Operating Income (Loss) Excluding Stock-Based Compensation

Operating income (loss) excluding stock-based compensation is a supplemental measure of operating performance that does not represent and should not be considered an alternative to operating loss, as determined under GAAP. This measure removes the impact of stock-based compensation. We believe that operating income (loss) excluding stock-based compensation supplements the GAAP measure and enables us to more effectively evaluate our performance period-over-period. A reconciliation of operating income (loss) excluding stock-based compensation to operating loss, the most directly comparable GAAP measure, and the computation of operating income (loss) excluding stock-based compensation are as follows:

Q420 Q320 Q419 FY20 FY19

Operating Expenses 68,144 56,359 72,820 246,578 330,391

Stock-Based Compensation - Operating 12,844 12,167 27,464 56,418 150,862Expenses

Operating Expenses - Excluding SBC 55,300 44,192 45,356 190,160 179,529

Operating Loss to Operating Income (Loss) Excluding Stock-Based Compensation

Operating income (loss) excluding stock-based compensation is a supplemental measure of operating performance that does not represent and should not be considered an alternative to operating loss, as determined under GAAP. This measure removes the impact of stock-based compensation. We believe that operating income (loss) excluding stock-based compensation supplements the GAAP measure and enables us to more effectively evaluate our performance period-over-period. A reconciliation of operating income (loss) excluding stock-based compensation to operating loss, the most directly comparable GAAP measure, and the computation of operating income (loss) excluding stock-based compensation are as follows:

Q420 Q320 Q419 FY20 FY19

Operating Loss (4,518) (372) (47,872) (80,785) (232,804)

Stock-based compensation 16,508 15,735 36,058 73,893 196,291

Operating Income (loss) 11,990 15,363 (11,814) (6,892) (36,513)excluding SBC

Net Loss to Adjusted Net Loss and Computation of Adjusted Net Loss per Share (EPS)

Adjusted net loss and adjusted net loss per share are supplemental measures of operating performance that do not represent and should not be considered alternatives to net loss and net loss per share, as determined under GAAP. These measures remove the impact of the non-controlling interests associated with our legacy PPA entities, the revaluation of derivatives, fair market value adjustment for the PPA derivatives, and stock-based compensation, all of which are non-cash charges. We believe that adjusted net loss and adjusted net loss per share supplement GAAP measures and enable us to more effectively evaluate our performance period-over-period. A reconciliation of adjusted net loss to net loss, the most directly comparable GAAP measure, and the computation of adjusted net loss per share are as follows:

Q420 Q320 Q419 FY20 FY19

Net loss to Common (27,138) (11,954) (68,287) (157,553) (306,868)Stockholders

Deemed dividend to - - 2,454 - 2,454noncontrolling interest

Loss (gain) on - (1,220) - 12,878 -extinguishment of debt

Loss for non-controlling (4,453) (5,922) (5,178) (21,534) (19,052)interests^1

Loss (gain) on derivatives 1,737 (1,505) 540 (464) 2,160liabilities^2

Loss (gain) on the FairValue Adjustments for 140 (726) (634) 110 844certain PPA derivatives^3

Stock-based compensation 16,508 15,735 36,058 73,893 196,291

Adjusted Net Loss (13,206) (5,592) (35,047) (92,670) (124,171)



Net loss to Common $ (0.16) $ (0.09) $ (0.58) $ (1.14) $ (2.67)Stockholders per share

Adjusted net loss per $ (0.08) $ (0.04) $ (0.29) $ (0.67) $ (1.07)share (EPS)

GAAP weighted averageshares outstandingattributable to common, 165,975 138,964 118,588 138,722 115,118Basic and Diluted(thousands)

Adjusted weighted averageshares outstandingattributable to common, 165,975 138,964 119,532 138,722 116,061Basic and Diluted(thousands)^4

1.

Represents the profits and losses allocated to the non-controlling interests under the hypothetical liquidation at book value (HLBV) method

2.

Represents the adjustments to the fair value of the embedded derivatives associated with the convertible notes and other derivatives

3.

Represents the adjustments to the fair value of the derivative forward contract for one PPA entity (our first PPA company), a wholly owned subsidiary

4.

Includes adjustments to reflect assumed conversion of certain convertible promissory notes

Net Loss to Adjusted EBITDA

Adjusted EBITDA is a non-GAAP supplemental measure of operating performance that does not represent and should not be considered an alternative to operating loss or cash flow from operations, as determined by GAAP. Adjusted EBITDA is defined as net income (loss) before interest expense, income tax expense, non-controlling interest, revaluations, stock-based compensation and depreciation and amortization expense. We use Adjusted EBITDA to measure the operating performance of our business, excluding specifically identified items that we do not believe directly reflect our core operations and may not be indicative of our recurring operations. Adjusted EBITDA may not be comparable to similarly titled measures provided by other companies due to potential differences in methods of calculations. A reconciliation of Adjusted EBITDA to net loss is as follows:

1. Represents the profits and losses allocated to the non-controlling interests under the hypothetical liquidation at book value (HLBV) method

2. Represents the adjustments to the fair value of the embedded derivatives associated with the convertible notes and other derivatives

Represents the adjustments to the fair value of the derivative forward3. contract for one PPA entity (our first PPA company), a wholly owned subsidiary

4. Includes adjustments to reflect assumed conversion of certain convertible promissory notes

Net Loss to Adjusted EBITDA

Adjusted EBITDA is a non-GAAP supplemental measure of operating performance that does not represent and should not be considered an alternative to operating loss or cash flow from operations, as determined by GAAP. Adjusted EBITDA is defined as net income (loss) before interest expense, income tax expense, non-controlling interest, revaluations, stock-based compensation and depreciation and amortization expense. We use Adjusted EBITDA to measure the operating performance of our business, excluding specifically identified items that we do not believe directly reflect our core operations and may not be indicative of our recurring operations. Adjusted EBITDA may not be comparable to similarly titled measures provided by other companies due to potential differences in methods of calculations. A reconciliation of Adjusted EBITDA to net loss is as follows:

Q420 Q320 Q419 FY20 FY19

Net loss to Common (27,138) (11,954) (68,287) (157,553) (306,868)Stockholders

Deemed dividend to - - 2,454 - 2,454noncontrolling interest

Loss (gain) on - (1,220) - 12,878 -extinguishment of debt

Loss for non-controlling (4,453) (5,922) (5,178) (21,534) (19,052)interests^1

Loss (gain) on derivatives 1,737 (1,505) 540 (464) 2,160liabilities^2

Loss (gain) on the FairValue Adjustments for 140 (726) (634) 110 844certain PPA derivatives^3

Stock-based compensation 16,508 15,735 36,058 73,893 196,291

Depreciation & 13,391 13,036 13,636 52,279 78,584Amortization

Provision (benefit) for (16) 7 31 256 633Income Tax

Interest Expense (Income),Other Expense (Income), 25,352 20,222 22,568 85,632 87,869net

Adjusted EBITDA 25,521 27,673 1,188 45,497 42,915

1.

Represents the profits and losses allocated to the non-controlling interests under the hypothetical liquidation at book value (HLBV) method

2.

Represents the adjustments to the fair value of the embedded derivatives associated with the convertible notes and other derivatives

3.

Represents the adjustments to the fair value of the derivative forward contract for one PPA entity (our first PPA company)

View source version on businesswire.com: https://www.businesswire.com/news/home/20210210005910/en/

CONTACT: Investor Relations: investor@bloomenergy.com

CONTACT: Media: Jennifer Duffourg Bloom Energy +1 (480) 341-5464 jennifer.duffourg@bloomenergy.com