Bloom Energy Corp (BE) Posts Record Revenue in Q3 2023 Despite Operating Loss
Bloom Energy Corp (NYSE:BE) reports a significant 37% year-over-year revenue increase in Q3 2023.
Non-GAAP gross margin improved, but GAAP gross margin turned negative due to higher costs.
Company reaffirms full-year 2023 outlook with expectations of continued revenue growth and positive non-GAAP operating margin.
Bloom Energy Corp (NYSE:BE) has released its financial results for the third quarter ended September 30, 2023, showcasing a robust 36.9% increase in total revenue compared to the same period last year. The company achieved a record $400.3 million in revenue, primarily driven by growth in Product and Service revenue, which surged by 40.7% to $352.5 million. Despite this impressive top-line growth, Bloom Energy faced challenges with its gross margin, which turned negative at (1.3)% in the third quarter of 2023, a decline of 18.7 percentage points from the 17.4% reported in the third quarter of 2022. However, on a non-GAAP basis, the gross margin saw a significant improvement, rising by 12.4 percentage points to 31.6%.
The company reported an operating loss of $103.7 million, which was a larger loss compared to $52.6 million in the third quarter of 2022. Conversely, non-GAAP operating profit showed a remarkable improvement, with a profit of $51.8 million compared to a non-GAAP operating loss of $28.5 million in the prior-year quarter. The net loss to common stockholders widened to $(168.9) million, or $(0.80) per share, from $(57.1) million, or $(0.31) per share, in Q3 2022.
Financial Statements Overview
The Income Statement details reveal that while revenue growth was strong, the cost of revenue outpaced this growth, leading to a gross loss. Operating expenses were slightly reduced from the previous year, but non-operating expenses increased significantly, contributing to the net loss. The Balance Sheet shows a healthy cash and cash equivalents position of $557.4 million, an increase from $348.5 million at the end of 2022. Total assets increased to $2.38 billion from $1.95 billion, while total liabilities also rose to $1.87 billion from $1.57 billion. The Cash Flow Statement indicates that the company has been managing its cash flows effectively, with a notable increase in cash and cash equivalents during the period.
Management Commentary
KR Sridhar, Chairman and CEO of Bloom Energy, expressed confidence in the company's innovation and growth trajectory, emphasizing the competitive advantage of Bloom's energy servers and solutions for data centers. Greg Cameron, President and CFO, highlighted the strong quarter and the company's progress in reducing costs and expanding margins, affirming Bloom Energy's position to meet its 2023 goals.
"Bloom Energy is executing at a high level on innovation and growth," said KR Sridhar, Chairman and CEO of Bloom Energy. "We are excited with our results and future prospects."
"We had a very strong third quarter and are executing across our company. We achieved record third quarter revenues with expanding margins," added Greg Cameron, President and CFO of Bloom Energy.
Outlook and Conference Call
Bloom Energy reaffirmed its full-year 2023 outlook, projecting revenues between $1.4 and $1.5 billion, with Product & Service Revenue expected to be in the range of $1.25 to $1.35 billion. The company anticipates a non-GAAP gross margin of approximately 25% and a positive non-GAAP operating margin. A conference call was held on November 8, 2023, to discuss the financial results, providing analysts and investors with further insights into the company's performance and future plans.
In conclusion, Bloom Energy Corp (NYSE:BE) has demonstrated strong revenue growth in Q3 2023, though it continues to navigate challenges related to costs and margins. The company's reaffirmed outlook for the full year indicates confidence in its strategic direction and operational execution. Investors and stakeholders will be watching closely to see if the positive trends in non-GAAP measures can translate into sustained profitability and value creation.
Explore the complete 8-K earnings release (here) from Bloom Energy Corp for further details.
This article first appeared on GuruFocus.
