Bloom Energy Corporation Q1 FY2025 earnings call

• KR Sridhar noted Bloom had an excellent first quarter, the best in 24-year history, with strong execution across sales, service, tech, and manufacturing. - Discussed customer segments: AI data centers remain robust, commercial and industrial large load areas show no slowdown while consumer-facing retail has potential decision cycle stretches, and international growth continues. - Tariffs: Supply chain strength and cost reduction goals will mitigate tariff impact, with expectation of up to 100 basis point margin impact but maintaining 2025 margin and profit guidance. - Dan Berenbaum highlighted record Q1 revenue, first positive non-GAAP EPS, and fifth consecutive quarter of service profitability, reiterating 2025 guidance including revenue, margin, and income targets.

Revenue for the first quarter was $326 million, up 39% year-over-year. The company's segments include: AI data centers with no slowdown in customer investment in data center capacity growth; commercial and industrial with large load advanced manufacturing, AI-related hardware, semiconductor chips, hospitals (no slowdown) and consumer-facing retail (potential stretch in decision cycles); international with Korea strong and rest of international growing from a small base. Gross margin was 28.7%, operating income was a positive $13.2 million, EBITDA was $25.2 million, and non-GAAP EPS was $0.03 per share.

• Reiterates 2025 revenue guidance of $1.65 billion to $1.85 billion. - Expects non-GAAP gross margin of approximately 29% and non-GAAP operating income of approximately $150 million. - Positive cash flow from operations and CapEx are expected to be around levels seen in 2024. - Confidence in booking, building, shipping, and recognizing revenue to meet guidance based on strong customer activity and process.

• Tariffs as a risk, but company has strategies to mitigate through supply chain strength and cost reduction. - Supply chain risks, but diversified supply base and U.S. manufacturing operations help mitigate these risks.

Q: Granular demand impact on pipeline conversion, margin guidance with tariffs A: KR Sridhar addressed margin mitigation by stating the company will find ways to solve tariff impact and maintain 29% gross margin guidance, and expressed confidence in meeting revenue guidance based on strong customer bookings and process Q: Customer traction outside US and Korea A: KR Sridhar mentioned focus on EU (Italy, Germany, UK) and Asia (Taiwan) for international growth, with strategic approach Q: Tariff sensitivity A: KR Sridhar explained detailed portfolio analysis of suppliers and procurement, leading to the 100 basis point margin impact estimate and confidence in mitigating it