Bloom Energy Corporation

Good afternoon, and thank you for attending today's Bloom Energy Q2 2022 earnings conference call. My name is Austin, and I'll be your moderator for today. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. If you'd like to ask a question, please press star one on your telephone keypad. I would now like to pass the conference over to our host, Ed Vallejo, VP Investor Relations. Ed, you may proceed.

Thank you and good afternoon, everybody. Thank you for joining us for Bloom Energy's second quarter 2022 earnings call. To supplement this conference call, we furnished our second quarter 2022 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. Our second quarter 2022 10Q is also in the process of being submitted today as we speak. 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. 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 SEC, 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 second quarter 2022 earnings release, we refer 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 second quarter 2022 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 Kaminer, 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. And after our prepared remarks, we will have time to take your questions. I will now turn the call over to K.R.

Hello, everyone. Good day to you. We were delighted to have so many of you join us in person and through streaming on our investor day in May. We were thrilled when we heard back from you on how much you appreciated seeing our innovative technology developments, manufacturing excellence, and most importantly, interacting with and experiencing the caliber of our team. We know you left with a better understanding of the power of our platform. flexibility to rapidly adapt, pivot, and deploy so many different energy solutions. In this ever-changing energy marketplace and policy environment, the flexibility of our platform is a unique advantage that sets Bloom Energy apart in the energy industry. This diversity and flexibility of our platform is exactly why we are so excited about the Inflation Reduction Act. This act will enable us to play a pivotal role in accelerating the mission to decarbonize the world. Unlike many other energy companies, there are many facets of the act's provisions where we will be able to participate in a material manner. Let me highlight nine key provisions. One, the hydrogen production credit and a direct pay option for it will greatly accelerate our domestic electrolyzer business. Two, the greater availability of clean hydrogen will create greater demand for Bloom's always-on high-efficiency hydrogen-powered energy servers. Three, our growing waste-to-energy segment will get a big lift from the expanded ITC for biogas equipment. Four, the incentives for electric vehicles and their growth will drive demand for our efficient on-site power charging solutions. Five, the tax credits for controllers, switchgear, and batteries will drive microgrid adoption. Six, the lowering of capture thresholds and the increased credit makes carbon capture with our energy servers very attractive. The capital equipment in our expanding American factories are eligible for the manufacturing tax credit. Eight, the increase and the extension of the ITC for our energy servers will strengthen our domestic power business. Nine, the direct pay and transferability features will create greater supply of affordable financing for our US projects. As a company, whose technology was invented in America, whose products are manufactured in America by American workers, we are thrilled that the Act acknowledges the importance of domestic content through additional bonus features. So you can see, I'm sure glad that we designed a flexible platform that has so many ways to help the world decarbonize. And now we have a national policy that will support us. Speaking of the flexible platform, I'm excited to share news on our hydrogen electrolyzer. It is not only great news on its own, but also an illustration of the platform flexibility point I just made. Our pilot demonstration at the US Department of Energy's Idaho National Laboratory is performing at a greater electrical efficiency than any other commercial product or technology demonstration in the world that we know of. Operating at 37.7 kilowatt hours of direct electricity to produce one kilogram of hydrogen, it is setting a world record. Yes, a world record. The performance of the Bloom Electrolyzer is over 30% better than most commercial low temperature electrolyzers in operation today. And we are just getting started. It is evident to me that the early markets for hydrogen are going to be, one, hard to decarbonize industries like steel, chemicals, cement, et cetera, that produce waste heat and use on-site hydrogen. And two, nuclear power plants that have curtailed electricity conditions during portions of the day and excess heat available. Our product performance that is verified by the DOE's Idaho National Laboratory clearly demonstrates the competitive advantage we have over low temperature electrolyzers in both these market segments. This competitive advantage is why LSB Industries, the leading North American producer of industrial and agricultural chemicals, announced plans to install a 10 megawatt solid oxide electrolyzer from Bloom Energy at their prior Oklahoma facility. When integrated with high temperature processes like ammonia synthesis, which produces extra heat energy, Bloom's electrolyzers will be more efficient than competing electrolyzer technologies, resulting in lower cost hydrogen for LSP. The clear competitive advantage attainable when combined with nuclear power plants is why Westinghouse Electric Company and Bloom Energy announced signing a letter of intent to pursue clean hydrogen production in commercial nuclear power market. The IML demonstration and announcement today should provide greater market momentum going forward. Let me now switch to our waste to power segment. In July, we were recognized by the American Biogas Council for our daily biogas to electricity project conducted in collaboration with CalBio. The Biogas Council cited the project for breaking new ground in the U.S. biogas industry and across the global energy landscape. The first to use renewable biogas to make electricity from fuel cells to power an onsite microgrid and a fleet of electric vehicles. The project also received the 2022 U.S. Daily Sustainability Award. Our waste-to-energy segment is witnessing solid growth. We are currently developing multiple landfill biogas opportunities, both for the R&G market as well as for electricity generation, and the renewable fuels business continues to gain traction with several key development projects utilizing food and agricultural waste. Let me take a moment to touch on the international opportunities. During our last earnings call in May, we spoke about our interest in entering the European market. In June, we announced the installation of one megawatt of Bloom servers at the Ferrari headquarters and manufacturing plant in Maranello, Italy. Ferrari, like Bloom Energy has a commitment to uniqueness, innovation, technology leadership, and continuous learning that makes them the ideal partner for our entry into the European manufacturing landscape. Bloom Energy's fuel cell platform is a best-in-class solution for a best-in-class luxury automaker. The Bloom Energy servers are expected to cut gas requirements by around 20% from the combined heat and power system now in use at Ferrari, while also reducing emissions. We are showcasing this as a model for other energy-intensive industries in Europe to emulate, a way for them to achieve greater energy security, lower costs, and lower carbon footprint all at the same time, and at a time when energy availability, prices, and security in Europe are increasingly of great concern. I'd like to close with the market at home. Digitization, electrification of transportation, and onshoring of manufacturing are all adding significantly to increased electricity demand at unprecedented rates. So, demand for new power is at an all-time high. On the supply side, the decades-long underinvestment in both power capacity expansion and T&D, the age and disrepair of the existing infrastructure, the drought-related reduction in hydroelectric output, the loss of capacity from shutting down coal and nuclear power plants are all creating a shortage of supply. This shortage is significantly greater than the pace at which renewables are being added. In this scenario, utilities are not able to provide additional power to large commercial and industrial customers that are demanding more and demanding them more quickly. If you're a company committing millions of dollars to build a new facility, you can't wait for months and even years for the power company to run power lines and connect you to the grid. Only then to see extreme weather affect your supply of power, shutting down your facility for hours, days, and even weeks. This isn't imaginary. It's the reality companies face in many parts of the U.S. and in Europe, I might add. Whether it's a Bloom Energy server, delivered on a skid and installed within days, or it's a Bloom Energy server power tower in urban settings with very low land needs, Our solutions enable customers to solve energy reliability, security, and decarbonization in the manner that best suits their needs with a very quick to power option. Before I turn it over to Greg, let me just say that we are very pleased with our financial results this quarter. We are maintaining financial and operating discipline as we invest in the business while focusing on costs, margins, and driving towards improved profitability and positive cash flow. With that, let me turn this over to Greg for him to elaborate.