BLOOM ENERGY CORP (NYSE:BE) Q3 2019 Earnings Conference Call - Final Transcript

Nov 07, 2019 • 05:00 pm ET

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BLOOM ENERGY CORP (NYSE:BE) Q3 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good afternoon, and welcome to the Bloom Energy Third Quarter 2019 Earnings Call. [Operator Instructions] As a reminder, this conference call is being recorded.

I would now like to turn the conference over to Mark Mesler, Vice President of Finance and Investor Relations at Bloom Energy. Please go ahead.

Executive
Mark Mesler

Thank you. Good afternoon, all, and thank you for joining us on Bloom Energy's third quarter 2019 earnings conference call. To supplement this conference call, we have filed our Q3 2019 earnings release and shareholder letter with the SEC and have posted it, along with supplemental financial information that we will periodically reference throughout this call, to our investor relations website. The matters we will be discussing today include forward-looking statements regarding future events and the future financial performance of the company.

These statements are subject to risks and uncertainties that we discuss in detail in our documents filed with the SEC, specifically the most recent reports on Forms 10-K and 10-Q, which we identify important risk factors that could cause actual results to differ materially from those contained in the forward-looking statements. We assume no obligation to revise any forward-looking statements made on today's call. During this call, in our earnings release and in our Q3 2019 shareholder letter, we refer to GAAP and non-GAAP financial measures. These non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles and are in addition to and are a substitute for GAAP financial measures. A reconciliation between GAAP and non-GAAP is included as part of our Q3 2019 shareholder letter. Joining me on the call today are KR Sridhar, Principal Co-Founder and Chief Executive Officer; and Randy Furr, Chief Financial Officer. KR and Randy will review the operating and financial highlights of the quarter, and then we will take questions.

I will now turn the call over to Randy.

Executive
Randy Furr

Thanks, Mark. Throughout my prepared comments, I'll be referring to slides and the earnings call presentation that mark referenced earlier. I'm going to start with financial highlights for the quarter and then talk about our balance sheet. First, some highlights, note that all profit numbers that I referenced will exclude stock-based compensation so on to slide three. In summary, this was another very respectable quarter. Acceptances were 302 systems, up 47% from Q3 2018's 206 systems. Revenue was $233.5 million, up approximately 23% year-over-year. Non-GAAP gross margin come in at 25.8%, up 5% from Q3, 2018 and up 350 basis points sequentially. Our non-GAAP operating income was $15.2 million, with adjusted EBITDA coming in at $40.8 million. Adjusted EPS was $0.01 and we ended the quarter with $357.9 million in consolidated cash and short-term investments, which includes $23.8 million of PPA cash. So, excluding the PPA cash, we have $334.1 million of cash and short-term investments.

Now, on to some color for the quarter and on to slide four. The 302 acceptances and $233.5 million in revenue were both Q3 records for Bloom. Acceptances were up 46.6% year-over-year and ended up 11.4%