Bloom Energy Corporation

Good afternoon and welcome to the Bloom Energy 3rd Quarter 2021 Earnings Conference Call. At this time, all participants are in the listen-only mode. To prevent any background noise, we will conduct a question and answer and questions instructions will be given at that time. If anyone should require operator assistance, please press star then zero on your touchtone telephone. As a reminder, this conference is being recorded. I would now like to turn the conference over to Ed Vallejo, Bloom Energy's Vice President of Investor Relations. Please go ahead.

Thank you and good afternoon, everybody. Thank you for joining us for Bloom Energy's third quarter 2021 earnings conference call. It is both an honor and a pleasure to now be part of the Bloom team, sharing our results and our compelling investment thesis with you all. I've spoken with many of you already, and I look forward to touching base with the rest of our investors and stakeholders in the weeks to come. Moving on to the quarter on hand. To supplement this conference call, we furnished our third quarter 2021 earnings press release with the SEC on Form 8K and have posted it along with supplemental financial information that we will reference throughout this call to our investor relations website. During this conference call, both in our prepared remarks and in answers to your questions, we may make forward-looking statements that represent our expectations regarding future events and our future financial performance. These include statements about the company's business results, products, new markets, strategy, financial position, liquidity, transactions with SK Ecoplan, and full-year outlook for 2021. These statements are predictions based upon our current expectations, estimates, and assumptions. However, since these statements deal with future events, they are subject to numerous known and unknown risks and uncertainties, as discussed in detail in our documents filed with the SEC, including our most recently filed Forms 10-K and 10-Q. We assume no obligation to revise any forward-looking statements made on today's call. During this call and in our third quarter 2021 earnings press release, we referred to GAAP and non-GAAP financial measures. The non-GAAP financial measures are not prepared in accordance with U.S. generally accepted accounting principles and are in addition to and not a substitute for or superior to measures of financial performance prepared in accordance with GAAP. A reconciliation between the GAAP and non-GAAP financial measures is included in our third quarter 2021 earnings press release available on our investor relations website. Joining me on the call today are K.R. Sridhar, founder, chairman, and chief executive officer, and Greg Cameron, our chief financial officer. K.R. will begin with an overview of business highlights from the quarter. Then Greg will review the operating and financial highlights of the quarter. And after the prepared remarks, we will take your questions. I will now turn the call over to K.R.

Good day, everyone. Thank you for joining us on the call. At Bloom Energy, we're deeply saddened by the loss of our long-serving board member, General Colin Powell. At every opportunity, he proudly evangelized our mission and strongly supported our business. His insights? helped us to build a strong values-based culture and always gave us courage to do the right thing. Alma, Michael, Anne-Marie, and Linda, our heartfelt gratitude to you for graciously sharing him with us. Our thoughts and prayers are with you. His friendship and mentorship have made me a better person and his deep engagement with Bloom has made us a better company. If he were here with me today, he would, as he has on innumerable occasions, instantly offer an in-the-moment leadership lesson. Hey, KR, you're mourned. Now get on with it and talk about Bloom. Copy you, General. Okay then, what better way for me to start than with our recent announcement on expanding Bloom's partnership with SK Ecoplant. K.I. Park, the CEO of SK Ecoplant and I see this agreement as a transformational event for our two companies. We see this partnership as a way for us to establish strong leadership position in the energy sector at a time when it's rapidly decarbonizing and reinventing itself. Here's a brief recap of our relationship. SK Ecoplant has partnered with Bloom for the last three years to develop the market and deploy Bloom servers in South Korea. Through this collaboration, We have proved that Bloom has the best technology for fuel cell power generation, and our products deliver on the promises we make, outstanding availability, output, efficiency, and reliability. As a company, we execute and deliver on our commitments and meet goals. We have very mature operational capabilities and scalable processes to grow rapidly. We respect partnerships and create win-wins. So this firsthand experience is what has given our strategic partner the confidence to strengthen this relationship and give us a minimum guaranteed order of 500 megawatts of Bloom Energy servers in the next three years. At Bloom, our focus has been on creating partnerships that have meaningful scale and has material impact on our business. A firm offtake of this magnitude enables us to plan, invest, and operate our business with far greater certainty. But that's not all we did during the three years. We also launched innovative products. The first ever solid oxide fuel cell power tower. The first utility scale solid oxide combined heat and power project. And a demo unit of the first hydrogen feed solid oxide fuel cell power systems. Again, Based on the chemistry we established as partners for the last three years to launch innovative new features and applications to our core Bloom platform, it truly excites me that we will be doing the same in the hydrogen space by creating hydrogen innovation centers in Korea and the U.S. In three short years, from a standing start, we have become the absolute leaders in the fuel cell power generation market in Korea today. The goal of our partnership is to emulate that success and become the number one player in the hydrogen market. Given the versatility of our platform, we have multiple pathways to achieve that. Our transacted and deployed fleet of Bloom servers totaling over one gigawatt globally for the first time, can run on up to 50% hydrogen fuel without needing any hardware modifications. In other words, we can provide hydrogen-based power at scale as soon as the fuel becomes available. We are successfully demonstrating our 100% hydrogen-fed fuel cell systems in Korea and have announced the commercial availability of this product starting FY 2022. And of course, we are very excited about the bloom electrolyzer, the most energy efficient electrolyzer to produce clean hydrogen to date and 15 to 45% more efficient than any other product on the market today. Now, if you look at the timing of our opening the hydrogen innovation centers in Korea and the U.S., it coincides with the initiation of aggressive roadmaps and policy and financial support by the two national governments. South Korea's government-supported hydrogen economy roadmap is the most ambitious in the world with the aim of ensuring 15,000 megawatts of hydrogen fuel cell installations, 6.2 million hydrogen vehicles, and 1,200 hydrogen charging stations by 2040. In the United States, both the infrastructure and the reconciliation bills have significant provisions for accelerating the hydrogen economy, as well as building resilient microgrids. Also, after three years of closely working with us, SK EcoPlant's investment in our equity speaks to the confidence they have in our business. They want to participate in the upside of Bloom's value going forward. We welcome their capital and value their partnership. I want to thank the SK EcoPlant and Bloom teams that have worked to make this transaction happen. And I also want to thank the people that have been working so hard at the operating level to execute and innovate, which has made this partnership so strong. Speaking of people, we're constantly adding great talent to our team. Ed Vallejo, our new head of investor relations, has long-lasting relationships with many of the analysts and investors in our sector, and brings with them an extensive IR experience. We are seeing good traction in our renewable natural gas and waste-to-energy applications. You'll be hearing more from us on this topic in the coming days and months. Chuck Moester, has joined as a VP of commercial growth in this space. Chuck has extensive experience in water, wastewater, and environmental markets, and held leadership roles in two of the largest investor-owned utility and contract operations companies in North America. We'll be sharing with you next month a leadership hire on the hydrogen side of the business that we are very excited about, as well as some new developments on the hydrogen front. As you heard today, we are on our way to building a strong global footprint with our partner, SK EcoPlant, and also have an excellent international business development team that we have assembled. The work we have done on our marine applications is going really well under the leadership of Tim Schweikert, who has been a senior consultant for Bloom. Today, I'm happy to announce that Tim has joined us as a full-time senior managing director and head of our international business and will continue to head Marine. Tim was the CEO of GE Global Locomotive Business and operated in Asia, Europe and Africa, and we are excited for him to take this position as Aziz Mohammed is transitioning out of the company. Now, let me have Greg walk you through Q3 and how 2021 is shaping, as well as give you some insights on the changes we are making at Bloom operationally to be a predictable high growth and innovative company. Greg?