• Q4 2024 Revenue: $572 million, a 60% increase over Q4 2023.
• Full Year 2024 Revenue: $1.47 billion, up 10.5% from 2023.
• Q4 2024 Non-GAAP Gross Margin: 39.3%, up from 27.4% in Q4 2023.
• Full Year 2024 Non-GAAP Gross Margin: 28.7%, up from 25.8% in 2023.
• Q4 2024 Non-GAAP Operating Profit: $133 million, an increase of $106 million from Q4 2023.
• Full Year 2024 Non-GAAP Operating Profit: $108 million, up $88 million from 2023.
• Q4 2024 Non-GAAP EPS: $0.43.
• Full Year 2024 Cash Flow from Operations: $92 million.
• Q4 2024 Cash Flow from Operating Activities: $484 million.
• Full Year 2024 Service Business Non-GAAP Gross Profit: $4 million, compared to a $33 million loss in 2023.
• 2025 Revenue Guidance: $1.65 billion to $1.85 billion.
• 2025 Non-GAAP Gross Margin Guidance: Approximately 29%.
• 2025 Non-GAAP Operating Income Guidance: Approximately $150 million.
• 2025 Cash Flow from Operations Guidance: Expected to be around the same level as 2024.

• Warning! GuruFocus has detected 8 Warning Signs with BE.

Release Date: February 27, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Bloom Energy Corp (NYSE:BE) achieved record revenue and profits for both the fourth quarter and the entire year of 2024, with a significant increase in revenue to $1.47 billion, up 10.5% from 2023.
• The company turned free cash flow positive for the first time since 2019, generating $92 million in cash flow from operations.
• Bloom Energy Corp (NYSE:BE) achieved a record full-year gross margin of 28.7%, up from 25.8% in 2023, demonstrating strong operational efficiency.
• The service business was profitable every quarter in 2024, with a $4 million full-year non-GAAP gross profit, compared to a $33 million loss in 2023.
• Bloom Energy Corp (NYSE:BE) has a strong and diverse sales funnel, particularly in the data center segment, which is expected to be a significant growth engine moving forward.

Negative Points

• The company faces challenges related to the unpredictability of tariffs and their potential impact on costs, although they are working to mitigate these through supply chain diversification.
• Despite strong performance, the guidance for 2025 indicates a flat gross margin compared to 2024, suggesting limited margin expansion in the near term.
• The competitive landscape includes other technologies such as gas turbines, which are also in high demand, potentially impacting Bloom Energy Corp (NYSE:BE)'s market share.
• The company's growth is heavily reliant on the timely execution of projects, which can be affected by external factors such as infrastructure readiness and regulatory approvals.
• There is uncertainty around the timing and scale of future agreements with utilities, which could impact the company's ability to capitalize on new market opportunities quickly.

Q & A Highlights

Q: Can we expect more agreements with large utilities like the AEP announcement in 2025, and how are you planning to fund your growth? A: Yes, we are in discussions with several utilities for similar arrangements. Utilities are realizing the need for distributed power solutions like ours. Regarding funding, we are managing our working capital efficiently and do not foresee the need for additional capital to support our growth. (K. R. Sridhar, CEO; Daniel Berenbaum, CFO)

Q: How much of your existing backlog is scheduled for delivery in 2025, and how much book and ship do you need to achieve your guidance? A: We don't disclose specific backlog details, but the business is increasingly becoming a velocity business with a significant portion of revenue coming from deals booked and shipped within the same year. We expect this trend to continue in 2025. (K. R. Sridhar, CEO)

Q: Can you provide more details on the components of your backlog, particularly regarding AI and C&I sectors? A: We don't break down backlog specifics, but both the data center and C&I sectors are growing. Approximately one-third of our deployed backlog is for data centers, which is growing faster than other sectors. (Daniel Berenbaum, CFO; K. R. Sridhar, CEO)

Q: How does the Investment Tax Credit (ITC) Safe Harbor provision impact your business, and what is the customer response? A: The Safe Harbor provision allows our customers to secure ITC benefits for systems deployed by 2028, translating to a potential $12 billion to $15 billion opportunity for Bloom. This makes our solutions more cost-competitive, and the customer response has been positive. (K. R. Sridhar, CEO; Daniel Berenbaum, CFO)

Q: What are the implications of recent announcements from companies like Microsoft on your data center business? A: Despite market noise, the demand for power from data centers continues to grow rapidly. The need for quick time-to-power solutions remains high, and we are well-positioned to meet this demand. (K. R. Sridhar, CEO)

Q: How are you addressing potential tariff impacts and supply chain challenges? A: Cost reduction is in our DNA, and we have consistently achieved double-digit cost reductions. Our supply chain team has diversified our supply base, and we are not dependent on China, which helps mitigate tariff impacts. (K. R. Sridhar, CEO; Daniel Berenbaum, CFO)

Q: Can you discuss the competitive landscape, particularly regarding gas turbines for on-site power? A: The demand for power is so large that all competing technologies, including gas turbines, have room to grow. We see competition as less of an issue given the current supply-demand gap. (K. R. Sridhar, CEO)

Q: What is your strategy for expanding in Asia beyond South Korea, and how does this relate to your agreement with SK? A: We are actively working to expand in other Asian countries. We are open to both our own sales efforts and opportunities brought by SK in other Asian markets. (K. R. Sridhar, CEO)

For the complete transcript of the earnings call, please refer to the full earnings call transcript.