Bloom Energy Corporation

Good evening everyone and welcome to the Bloom Energy fourth quarter 2021 earnings and long-term outlook conference call. My name is Harry and I'll be the event specialist running today's event. If you'd like to ask a question today, please press star followed by one on your telephone keypad. If you change your mind at any time, please press star followed by two to remove the question. I'll now hand over to our host, Ed Vallejo, Vice President of Investor Relations to begin. Mr Vallejo, please go ahead when you're ready.

Thank you and good afternoon, everybody. Thank you for joining us for Bloom Energy's fourth quarter 2021 earnings and long-term outlook call. To supplement this conference call, we furnished our fourth quarter 2021 earnings and long-term outlook 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 websites. 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, and full-year outlook for 2022 and long-term growth guidance. These statements are predictions based upon our expectations, estimates, and assumptions. However, as 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 FTC, including our most recently filed forms 10Q and 10K. We assume no obligation to revise any forward-looking statements made on today's call. During this call and in our fourth 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 fourth quarter 2021 earnings press release available on our investor relations website. Joining me on the call today are K.R. Schroeder, founder, chairman, and chief executive officer, and Greg Cameron, our chief financial officer. K.R. will begin with an overview of our business. Then Greg will review the operating and financial highlights of the quarter, as well as the long-term outlook for the company. And after our prepared remarks, we will have time to take your questions. I will now turn the call over to K.I.

Hello, everyone. Thank you for joining us today. I'm delighted to tell you that Bloom Energy's fourth quarter and full year 2021 results set records on many metrics. Importantly, at nearly $1 billion in revenue, we have reached an exciting inflection point. In 2021, we executed and delivered on our commitments. Additionally, we doubled down and invested in technology innovation, added capacity, and drove top-line growth. We built support functions and brought an experienced talent to our management team. And we strengthened our relationships with ecosystem partners, a strategy we use to both rapidly innovate and grow. We entered 2022 leaning forward with an ability to take advantage of the numerous tailwinds favoring the company. Importantly, we entered 2022 with a record backlog at $8.5 billion. almost double what it was last year. Our confidence in the future is stronger than ever. We are looking forward to sharing our long-term vision during our investor conference in May and our roadmap to take Bloom from nearly $1 billion in revenue today to $15 billion or greater over the next decade. Yes, I said $15 billion. In many ways, as the energy industry transforms, we are in a category of our own, with growing revenue, margin expansion, strong backlog, and the best, most innovative solutions to customers who want a low-carbon and resilient power today and zero-emissions energy tomorrow. They're poised to capitalize on demand for clean energy, decarbonization, and the growth of the hydrogen and renewable fuels economy. So now, let me spend some time on our growth strategy. At Bloom Energy, we like markets where our core product has strong traction and where there are conducive policies and market demand for Bloom's decarbonized product offerings. The Bloom Energy Platform is architected for such a seamless decarbonization transition that is both pragmatic and responsible. Our two major markets, the US and Korea, exhibit these characteristics. In our US commercial and industrial sector, we are witnessing record-setting pipeline and significant backlog. I'm particularly excited about the momentum I'm seeing with some of the world's largest forward-thinking Fortune 100 companies who value the benefits of clean, reliable, and resilient energy. For instance, we just completed a contract with T-Mobile to power several of their sites across multiple states with independently certified low-leak natural gas, gas that has been sourced responsibly to limit the release of harmful methane emissions. This is a demonstration of T-Mobile's commitment to creating a more sustainable future in addition to the many steps that they have already taken. Most commercial and industrial customers get their baseload electricity from the electric grid. Today, that grid-based electricity is not resilient and is getting more expensive. When customers want an alternative for their baseload power that is clean, cost-predictable, and resilient, plume is the best and often the only option in the marketplace. The bloom advantage is growing stronger and the value proposition more evident by the day. Electricity rates are on the rise at an incredible clip. In California, utility rates are increasing by between 20 to 30% for majority of the customers. In Massachusetts, P&I customers will see delivery rates go up 20% by 2024. In New York, rate increases attribute to New York's Climate Leadership and Community Protection Act alone are estimated to add eight percentage points plus per year to New Yorkers' energy bills. Extreme weather events are impacting power resiliency. In just the most recent winter storms that affected the Northeast, hundreds of thousands went without power, and in some areas, the outages extended into days, not hours. Over a dozen of blue microgrids deployed in these regions kept our customers' power on all the time. Now, as we look at Korea, Our offtake order guarantees a minimum of 450 megawatts in transactions over the next three years. That is three times the total orders we received in Korea over the past three years. Our partner, SK Ecoplant, anticipates that we will transact more than this minimum, and our highly efficient hydrogen fuel cells will accelerate revenue growth. While Bloom's compelling value proposition of clean and reliable power that is cost-competitive and predictable will drive our existing power server businesses' growth, our growth will also accelerate due to increased demand for renewable natural gas-fed power generation, blue hydrogen, green hydrogen produced from our electrolyzer, and net zero energy generation with carbon capture. For instance, the waste-to-energy sector is a new area of growth for us. Demand for RNG and renewable fuels is continuing to outpace the supply. Demand for our solutions in this high-growth sector is driven by several things, including customers' need for clean baseload electricity the steep growth in waste collection and aggregation driven by local mandates, and the market incentives for making low-carbon intensity fuels. A new project was recently announced in Linden, New Jersey, where Bloom will power a facility that takes organic waste and converts it to RNG with a low carbon intensity. As we focus on execution, we have assembled a dream team of leaders to commercialize our offerings in hydrogen, renewable fuels, and marine verticals. These talented executives led commercial sales in the same verticals for market-leading companies. Today, they are glowing because they are confident that we will disrupt these multi-billion dollar markets with our groundbreaking products. We are so excited to have them on our team. Before I turn it over to Greg, I want to take a moment to thank our CTO Venkat Venkataraman and express my heartfelt gratitude for his service. He has been with Bloom for 18 years and will be retiring end of June. He leaves the company on a high note, having engineered a versatile platform from the lab bench to the marketplace. Venkat started at Bloom as a system architect and then as head of system engineering before becoming head of engineering and then CTO. All of us at Bloom are immensely grateful for all his contributions over the years and their impact on making Bloom successful. Venkat has built an incredible team that will continue to maintain our technical leadership and excellence. Thank you, Venkat, and I wish you a very happy retirement and appreciate all you have done. Now over to Greg.