Bloom Energy Corporation

Good evening, ladies and gentlemen. Thank you for attending Bloom Energy's Q3 2023 earnings conference call. My name is Adam and I'll be your moderator for today's call. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. Once you ask a question, please mute your line. If you have a follow up question, please queue up again. I will now pass the conference over to your host, Ed Vallejo, Vice President of Investor Relations. Please proceed.

Thank you and good afternoon, everybody. Thank you for joining us for Bloom Energy's third quarter 2023 earnings conference call. To supplement this conference call, we furnished our third quarter 2023 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, product, new market, strategy, financial position, liquidity, and full year outlook for 2023. 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 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 2023 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 2023 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 president and 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 outlook for the year. After our prepared remarks, we will have time to take your questions. I will now turn the call over to K.R.

Hello, everyone, and thanks for joining us today. We are continuing to execute on growing our business in the US and around the world. We remain heads down and focused on performing and innovating at a high level. We continue to increase revenue and expand our gross and operating margins. We do this by selling value to our customers, maintaining price discipline, and reducing costs. In fact, we have lowered costs six quarters in a row, just as we said we would do. We are achieving new levels of success. The strong numbers we report today is a proof point that our business model is working and can be profitable. We are well capitalized to continue innovating and handle the cyclical and lumpy nature of our business. The rise in power demand continues to be both steep and sustained. Record high temperatures, adoption of EVs, electrification, data center growth, AI, and reshoring of industries have all been strong drivers of electricity demand. The antiquated and sluggish electric grid is unable to keep up with this rapid demand spike. A case in point, 66 gigawatts of greenfield projects are delayed in the US, and only 14% of capacity requesting interconnection from years 2000 to 2017 reached commercial operations by the end of 2022, according to a Department of Energy lab report. Bloom Energy's products and architecture are uniquely suited to these times. for both behind and in front of the meter. Where necessary, we can operate in an islanded mode without grid interconnection and offer our customers quick, reliable, and clean power. As an example, we installed 7.8 megawatts of Bloom servers at Coherence, Pennsylvania factory allowing for significant electrical load to be supplied to that site independently from the grid. The Bloom servers provide clean and reliable power that fortifies the factory's critical infrastructure and helps Coherent meet both customer demand and revenue growth. While the issue of rising interest rates and global conflicts create some headwinds, There is no question that demand for clean power and the need for availability and reliability will create definite and sustained tailwinds for our business. Looking at our sales inquiry pipeline, the impact of AI to our business cannot be overstated. AI clearly has the potential of expanding the adoption of our products in the data center market. AI powered search on a GPU will take five to 20 times more power per search compared to a regular search on a CPU. And the use of AI is growing rapidly across all segments of our society. This will exponentially increase energy demand in data centers over the next decade. If we look at the projections of future growth from the chip companies and cloud service providers, the imbalance in grid availability and the accelerating demand for compute power is expanding the case for Bloom in this sector from resilience to one of timely primary power availability. For example, we powered our first customer in Taiwan and signed our first customer in Singapore recently. In Taiwan, we installed the first phase of a 10 megawatt solid oxide fuel cell contract with Unimicron Technology Corporation, a chip substrate and printed circuit board maker. Our energy servers went from contract to power on in less than six months, which shows how quickly we can move to solve power availability problems. That success helped us land our first deal in Singapore. Working with our partner, SK Ecoplant, we will deploy our Bloom Energy servers with GDS, a leading developer of high-performance data centers. This is exciting as it is illustrative of the strength of our servers as a solution for data centers. In addition, Singapore is a market where 90 plus percent of power is natural gas-based today. While we will start with natural gas, our systems are future-proofed. Our customers can switch to carbon capture, to hydrogen, or to green ammonia once the regional infrastructure, supply chain, and regulatory frameworks are established for those cleaner options. We think this is a model for future projects and it demonstrates the competitive advantage of our fuel flexible platform. Let me spend just a moment on hydrogen. We have long been focused on hydrogen and its many benefits, particularly given the flexibility of our platform technology to operate as fuel cells to provide power or as electrolyzers to produce hydrogen. As many of you know, the Department of Energy announced just a few weeks ago a $7 billion nationwide investment designed to launch seven regional clean hydrogen hubs across the country. Bloom Energy electrolyzers that included in four of the seven winning hydrogen hubs. This should come as no surprise. Gloom Energy is unique in the electrolyzer industry in being able to offer both the highest electrical efficiency products and deliver them at scale today from our fully operational gigafactories in Fremont, California and Newark, Delaware. It is early days for what will be a huge market. But we are clearly pleased about our wins and what it means for Bloom and the world in the future. So to close, growing demand for power solutions driven by data centers and AI, a relentless focus on cost discipline and efficiency, a deep commitment to innovation and fuel flexibility, all make us excited about Bloom Energy's future. I'll be back with you to answer questions. For now, let me hand it over to Greg Cameron. Greg?