Bloom Energy Corporation

on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to retry your question, press star one again. Thank you. Now, I would like to hand the call over to Michael Turney, Vice President, Impressor Relations. Michael, you may begin.

Thank you and good afternoon, everybody. Thank you for joining us for Bloom Energy's first quarter 2025 earnings call. To supplement this conference call, we furnished our first quarter 2025 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, 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 first quarter 2025 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 first quarter 2025 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 Dan Varenbaum, our CFO. K.R. will begin with an overview of our progress, and then Dan will review financial highlights for the quarter. After our prepared remarks, we will have time to take your questions. I will now turn the call over to K.R.

Good afternoon, and thank you for joining us today. Bloom had an excellent quarter. In fact, the best first quarter in our 24-year history, using strong, disciplined execution across the entire company, from sales to service, technology, and manufacturing operations. I want to thank the incredible team at Bloom for their dedication to serving our customers and building on the success of last year. We are off to a good start for the year and we are very excited to continue building on that success throughout 2025. We know the current economic environment affects various businesses differently. Here is the dynamic we are seeing at Bloom. The world needs a lot of power and demand for electricity will continue to expand at a rate that cannot be met solely by traditional sources of supply and methods of delivery. We don't see that changing anytime soon. This reality means that major users of power have accepted onsite generation as a necessity. Here is how that realization impacts Bloom's major customer segments. First, AI data centers. We have seen no slowdown in this sector. Just last week, I was at a gathering of business leaders, including some of the largest cloud service providers. What I heard loud and clear was that they remain committed to investing in data center capacity growth and the necessary power needs that come with it. Even down the road, should there be a slowdown in the pace of investing? The total gigawatt gap is so large that it will not have a meaningful impact on Bloom's growth in this market. This is an investment super cycle and short-term economic issues will not adversely impact the megatrend. The robustness in this sector is clearly validated by the customer activity we are experiencing. The second segment It's a commercial and industrial business, which I'm breaking down into two buckets. First, we see robust activity in large load advanced manufacturing operations, AI-related hardware, and semiconductor chips, as well as essential services like hospitals and healthcare, for whom power is mission critical. We don't see any slowdown here. Reshoring and growth in the US industrial base is continuing. Their need for electricity has not diminished and their operations cannot afford to pause. The second bucket of commercial and industrial customers are the consumer facing businesses such as retail. They may see a stretch out of decision making cycles until the economic scenario is clear. We are keeping a close eye on this segment and are staying close to our customers. Our third customer segment is in the international arena. Our Korea business remains strong and the rest of international is growing off a small base. Our fuel cells provide reliable, scalable, high density base load power, making them an ideal power choice in many industrialized nations. This international expansion continues to progress well. When you put the three segments together, the diversification of our customer base, both in terms of sector and geography, is a key strength that gives us the flexibility to soften the impact of exogenous factors that make us more resilient. Based on the bottoms up, Customer by customer forecast in these three segments, we remain confident in our previously provided 2025 revenue guidance. Tariffs are probably another topic everybody wants to hear about today. The main takeaway is that the strength of our supply chain in combination with the relentless execution of our product cost reduction goals will greatly mitigate the impact of tariffs on bloom. We have been developing, diversifying, and fortifying our supply base for years to mitigate the impacts of any particular country or supplier. We have two manufacturing and assembly facilities, and they are both located in the United States. Our products are proudly made in America. Yes, we do import materials and components from abroad, but not from China. The majority of our material spend is in custom-made components unique to us, which give us control over pricing and sourcing. We have excellent longstanding partners and are jointly invested in each other's success. If the current tariff structure continues throughout the year, we expect to see up to 100 basis point impact on our gross margin for the year. Cost reduction is in our DNA and we will work extra hard to mitigate the adverse impact through innovations and efficiency improvements. As of now, we remain committed to our margin and profit guidance for 2025. As we look ahead, We are excited about the super cycle in electricity infrastructure growth. The ongoing momentum will be driven by growing demand for onsite power generation, and Bloom Energy is at the forefront of this revolution. The opportunity for Bloom is immense, and we are focused on growing the business. We have the resilience to navigate through short-term challenges and execute on strengthening market leadership in the long term. Before I turn it over to Dan to go through the numbers, I want to thank him for his service to Bloom over the past year. Dan will be exiting the company on May 1st, and we have started a search for a permanent CFO. In the interim, Maciej Kosinski, Bloom's chief accounting officer for the last four years, will assume the role of acting principal financial officer. Bloom has a strong leadership team and capable finance organization, and we will continue to perform without missing a beat. I'll turn it over to Dan for now, and I look forward to answering your questions.