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Bloom Energy Corp (BE)·Q4 2024 Earnings Summary

Executive Summary

  • Record quarter: Revenue $572.4M, GAAP gross margin 38.3%, non-GAAP gross margin 39.3%, non-GAAP operating income $133.4M; cash from operations $484.2M . Q4 revenue rose 60.4% YoY and ~73% QoQ, demonstrating scale leverage; non-GAAP EPS $0.43 vs GAAP diluted EPS $0.38 .
  • 2025 outlook introduced: revenue $1.65B–$1.85B, non-GAAP GM ~29%, non-GAAP operating income $135M–$165M; management targets positive operating cash flow and similar capex to 2024 .
  • Demand narrative: “solution of choice for powering AI”; strong funnel in data centers and diversified C&I orders; ITC safe harbor enables 40% nationwide and 50% in energy communities through 2028, potentially supporting $12–$15B of product revenue options .
  • Stock catalysts: new 2025 guidance, record Q4 profitability and cash generation, utility-scale agreements (e.g., AEP 1GW framework with 100MW initial order), and accelerating “time-to-power” deployments for AI and C&I workloads .

What Went Well and What Went Wrong

  • What Went Well

    • Record quarterly scale drove margin expansion and profitability: non-GAAP GM 39.3% vs 27.4% in Q4’23; non-GAAP operating income $133.4M vs $27.4M YoY . CFO: “This is a business with leverage to scale” .
    • Service turned the corner: “service business was profitable every quarter” in 2024, with full-year non-GAAP service gross profit $4M, aided by reliability improvements and AI-driven field optimization .
    • Cash generation and balance sheet: Q4 operating cash flow $484.2M; FY operating cash flow $92.0M; year-end total cash $951M . Management emphasized no factoring in Q4 and disciplined working capital .

  • What Went Wrong

    • Quarterly variability remains high: product revenue concentration in Q4 underscores project timing dependence; management reiterates project-based variability and shipment-based revenue recognition .
    • Gross margin guide flat YoY: 2025 non-GAAP GM guided ~29% (vs 28.7% in 2024), reflecting mix effects from islanded microgrids, AI load-following solutions and third-party gear content .
    • Tariff/macrosupply risks: while diversified supply chain mitigates exposure, management notes tariffs could be a headwind albeit offset by continuous double-digit cost reductions and non-China sourcing .

Financial Results

MetricQ4 2023Q3 2024Q4 2024
Revenue ($USD Millions)$356.9 $330.4 $572.4
GAAP Gross Margin %25.9% 23.8% 38.3%
Non-GAAP Gross Margin %27.4% 25.2% 39.3%
GAAP Operating Income ($USD Millions)$12.9 $(9.7) $104.7
Non-GAAP Operating Income ($USD Millions)$27.4 $8.1 $133.4
GAAP EPS Diluted ($)$0.02 $(0.06) $0.38
Non-GAAP EPS Diluted ($)$0.07 $(0.01) $0.43
Adjusted EBITDA ($USD Millions)$39.8 $21.3 $147.3
Cash from Operations ($USD Millions)$121.8 $(69.5) $484.2

Segment Revenue Breakdown

Segment Revenue ($USD Millions)Q4 2023Q3 2024Q4 2024
Product$261.8 $233.8 $471.7
Installation$26.0 $32.1 $36.1
Service$52.6 $50.8 $53.8
Electricity$16.5 $13.8 $10.8
Total Revenue$356.9 $330.4 $572.4

Full-Year Comparison

MetricFY 2023FY 2024
Revenue ($USD Millions)$1,333.5 $1,473.9
GAAP Gross Margin %14.8% 27.5%
Non-GAAP Gross Margin %25.8% 28.7%
GAAP Operating Income (Loss) ($USD Millions)$(208.9) $22.9
Non-GAAP Operating Income ($USD Millions)$19.2 $107.6
Operating Cash Flow ($USD Millions)$(372.5) $92.0
Year-end Total Cash ($USD Millions)$745.2 $951.0

Notes:

  • Q4 revenue growth 60.4% YoY and ~73% QoQ; Q4 non-GAAP GM +11.9 ppt YoY; Q4 non-GAAP operating income +$106.0M YoY .
  • CFO highlighted scale leverage, cost reductions, and service profitability as drivers of margin expansion .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue ($USD Billions)FY 2025n/a$1.65–$1.85 New
Non-GAAP Gross Margin %FY 2025n/a~29% New
Non-GAAP Operating Income ($USD Millions)FY 2025n/a$135–$165 New
Revenue YoY Growth (% guidance color)Q1 2025n/aUp ~20%–30% YoY vs Q1 2024 New

Management also expects positive operating cash flow in 2025 at levels similar to 2024, and capex around 2024 levels .

Earnings Call Themes & Trends

TopicQ2 2024 (Previous Mentions)Q3 2024 (Previous Mentions)Q4 2024 (Current)Trend
AI/Data Centers demandDeals with CoreWeave (Volo, IL) and support for AWS (Santa Clara) Announced expected “world’s largest single site” fuel cell (80MW) and largest islanded microgrid expansion with Quanta Strong, diverse funnel; “solution of choice for powering AI”; data center bookings growing; AEP 1GW framework (100MW initial) Accelerating
Time-to-power deploymentsExecution capability emphasized Microgrid expansion to address utility delays Majority of 2024 revenue booked and shipped in same year; rapid deployment as key advantage Strengthening
Supply chain & tariffsn/an/aDiversified supply base; committed double-digit cost reduction; not dependent on China; tariffs monitored Proactive mitigation
ITC and policyn/an/aSafe harbor enables 40%/50% ITC through 2028; $12–$15B potential options Clarity improved
Service marginsn/an/aService profitable each quarter in 2024; full-year non-GAAP service GP $4M Improving
Regional focusAWS Santa Clara; CoreWeave Illinois Fremont microgrid expansion with Quanta Wins in Ohio/Illinois; Midwest/Great Lakes highlighted; Northeast constrained; Virginia attractive Expanding

Management Commentary

  • Strategic positioning: “We are the solution of choice for powering AI... Our proven solution is ready to be deployed at GW scale starting this year.” — KR Sridhar, CEO .
  • Operational execution: “We turned free cash flow positive for the full year... record full-year gross margin of 28.7%... service business... positive non-GAAP gross margin in all 4 quarters.” — Dan Berenbaum, CFO .
  • Demand dynamics: “Power Hungry customers... transacted with a sense of urgency... the most important purchasing criteria is time to power.” — KR Sridhar .
  • ITC safe harbor: “Customers... have collectively secured the option to receive full ITC benefits... 40% credits nationwide... 50% credits in predefined energy communities... potential to yield between $12B and $15B of gross product revenue to Bloom.” — KR Sridhar .

Q&A Highlights

  • Utilities partnerships: AEP-type agreements likely but timing depends on regulatory constructs; utilities value onsite modular reliability without passing costs to ratepayers .
  • Funding growth: Capital-efficient capacity expansion (tripling for ~$150M); disciplined working capital; no factoring in Q4; expect 2025 operating cash flow similar to 2024 .
  • Revenue recognition: Product revenue generally recognized on shipment; reinforces quarter variability driven by project logistics .
  • Tariffs & supply chain: Diversified supply base and engineering-led cost reductions mitigate potential tariff headwinds; minimal China dependency .
  • Regional infrastructure: Northeast challenged by gas pipelines; Midwest/Great Lakes a “sleeping giant”; Virginia attractive given proximity to gas supply .
  • Carbon capture: Viewed as nearer-term scalable decarbonization path vs green hydrogen; partnership announced with Chart; strong hyperscaler interest .

Estimates Context

  • S&P Global consensus data could not be retrieved due to access limits; estimate comparisons for Q4 2024 and FY 2025 are therefore unavailable at this time. As a result, we cannot classify revenue/EPS as beats/misses versus Wall Street consensus in this recap [GetEstimates errors].

Key Takeaways for Investors

  • Scale-driven operating leverage: Q4’s step-change in margins and profitability underscores Bloom’s ability to convert revenue growth into earnings, supported by double-digit product cost reductions and improving service economics .
  • 2025 setup: New revenue range ($1.65B–$1.85B), ~29% non-GAAP GM, and $135M–$165M non-GAAP operating income frame expectations; Q1 guide color +20%–30% YoY suggests healthy start .
  • AI power scarcity as structural tailwind: Strong data center funnel, rapid deployments, and utility frameworks (AEP) position Bloom as a “time-to-power” solution amid multi-year grid constraints .
  • Policy support via ITC safe harbor: 40%/50% credits through 2028 de-risk economics for U.S. deployments and could unlock significant order activity; monitor Treasury mechanics and project commencement milestones .
  • Liquidity and cash conversion: $951M year-end cash; Q4 operating cash flow $484.2M aided by collection of large related-party receivable; management aims to sustain positive operating cash in 2025 .
  • Regional expansion and diversification: Growth beyond South Korea, increased U.S. C&I orders, Midwest/Great Lakes and Virginia opportunities; Northeast constrained by pipelines .
  • Near-term trading: Watch follow-on utility orders (AEP cadence), large AI deals, service margin trajectory, and quarterly variability tied to shipment timing. Margin mix from islanded/load-following solutions and third-party gear could cap near-term GM upside (flat 2025 guide) .

Appendix: Additional Relevant Press Releases (Q4 2024 window)

  • AEP agreement: up to 1GW framework; initial 100MW order to power AI data centers .
  • Quanta partnership expansion: largest islanded, load-following industrial microgrid; addresses utility interconnection delays in Silicon Valley .
  • FPM Development: 20MW SOFCs in Los Angeles to fortify grid resilience; rapid deployment and CARB compliance highlighted .
  • Q3 results: revenue $330.4M; reaffirmed 2024 guidance; announced expected “world’s largest single site” installation .