Bloom Energy Corporation

All lines have been placed on mute to prevent any background noise. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star followed by the number 1 on your telephone keyboard. To withdraw your question, press star followed by the number 1 again. I will now turn the call over to Michael Turney, Vice President of Investor Relations. Please go ahead.

Thank you and good afternoon, everybody. Thank you for joining us for Bloom Energy's fourth quarter 2024 earnings call. To supplement this conference call, we furnished our fourth quarter 2024 earnings press release with the SEC on Form 8K and have posted 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, and full-year outlook for 2025. 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 fourth quarter 2024 earnings press 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 fourth quarter 2024 earned 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 Dan Berenbaum, our CFO. K.R. will begin with an overview of our progress, and then Dan will review financial highlights for the court. After our prepared remarks, we will have time to take your questions. I will now turn the call over to K.R.

Good day, everyone. What a year it has been for the power industry. We are witnessing major industry transformations in areas like AI, robotics, automation, the electrification of transportation, all creating demand growth, the likes of which have never been seen by the power industry. This is a paradigm shift for the power business. For decades, many power utilities believed they were in a death spiral. They operated with the belief that they were in a shrinking business and divested significant assets. They were unprepared for a sudden spike in demand. This has created an enormous opportunity for scale solutions that can offer timely, reliable, and clean power. At Bloom Energy, for the last 24 years, we've been building a company with the deep-rooted conviction that humanity needs more power, not less. We have also been convinced that resilient, always-on distributed power is an essential and necessary supplement to the centralized grid. Our core technology, The fuel-flexible solid oxide platform is the best way to convert molecular fuel to onsite power. Our disciplined approach, unperturbed by fleeting trends, has made us the preferred choice for businesses seeking to take control of their power and for utilities looking to satisfy customer needs. Now, Bloom is prepared to meet the moment satisfy customer needs, and seize this opportunity. And we already are. I want to thank the hardworking team at Bloom for delivering a spectacular 2024. Bloom achieved record revenue and profits for both the fourth quarter and the year. We were operating income positive for the year and delivered positive cash flow from operations a solid $92 million over the last year. Another first for us in 2024, our service business was profitable every quarter and for the year. We achieved this milestone by improving the life and reliability of our fuel cells, reducing the cost of replacement units, and using AI and machine learning to optimize the field performance of our systems. I expect us to build on these improvements and deliver increased service margins in the years to come. Our operations team continues to deliver with speed, scale and efficiency. In keeping with our long tradition, we delivered another year of double digit product cost reductions. We will have the capacity to meet time sensitive power demand. This will enable us to deliver fully functional power solutions in months, reinforcing our status as a solution of choice for time-critical power deals. On the innovation front, in 2024, we further strengthened our market position by successfully deploying our islanded microgrids, providing power to our customers without grid interconnection. We expanded on our partnership with Quanta to create Bloom's largest islanded load following industrial installation. We view our demonstrated ability to provide tens of megawatts of reliable power to our customers within months of an order as a huge competitive advantage. We're focused on heat capture and carbon capture solutions, two valuable add-ons to our core offering. And our commercial team delivered strongly in 2024. Power hungry customers in the US transacted with a sense of urgency in 2024, and we expect this increased velocity to continue in 2025. And we are meeting their demands. Four years ago, most of our bookings took two to three years to deploy and convert to revenue. The majority of 2024 revenue came from deals that were both signed and recognized in the same year. I expect us to continue to deploy orders quickly, just as we did in 2024, because for many customers today, the most important purchasing criteria is time to power. They need reliable power and they need it now. Our Bloom solution is purpose-built to meet that need. I talked about AI and data centers on our last earnings call, and we remain excited about the opportunities ahead. Bloom's current sales funnel in the data center segment, primarily driven by both training and inference AI applications, is strong diverse and robust we view the data center segment to be a strong engine for growth in addition our order book and funnel show very healthy diversification our commercial and industrial cni market segments are strong and an important part of our growth story cni customers are impacted by the domestic power shortage aggravated by the massive AI data center electricity needs. There is growing sentiment in the non-AI sectors that their power needs arising from reshoring, growth, and automation will be deprioritized and result in unpredictable and higher power prices, a predicament they want to avoid. As a result, we have seen an uptick in our CNI segments. We secure orders from multiple large telecom companies, retail, manufacturing, education, and healthcare segments who are proactively securing their own power. We are thrilled that a vast majority of our U.S. sales comes from repeat customers, a testament to our products and services and the trust customers place in us. The quality of logos in our order book and the potential to increase our share of their total electricity spend augurs well for our future growth. We are also partnering with innovative utilities looking to add capacity. I expect to see more such arrangements in the future. Bloom has won orders in Ohio and Illinois, and we are now competitive and attractive to customers in the Great Lakes region and the Midwest. On the international side, South Korea remains an important market for us, and this business is steady. We continue to win orders through annual auction and outside development with our partners SK EcoPlant and SK Eternex. Additionally, our commercial team is focused on delivering wins in other parts of Asia and in Europe this year. In sum, I believe that having strong sector diversification combined with a strong geographic diversification will enable Bloom to become a global energy player. 2025 is off to an excellent start with strong inbound customer interest. I want to touch on one more thing, the ITC or investment tax credit. By using the safe harbor provision that is fully compliant with treasury guidance, Bloom's customers, financiers, and other commercial ecosystem partners have collectively secured the option to receive full ITC benefits for their future purchases. They are entitled to 40% credits nationwide in light of our US manufacturing and 50% credits in predefined energy communities. They can enjoy the tax benefits for systems placed in operation in the United States between now and the year 2028. This safe harbor, if fully exercised, has the potential to yield between $12 and $15 billion of gross product revenue to bloom. Now, I'll hand it over to Dan to walk us through the numbers, and I'll join you afterwards to answer your questions. Dan?