Bloom Energy Corporation reported its financial results for the third quarter and the first nine months of 2024, highlighting significant changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

For the three months ended September 30, 2024, Bloom Energy generated total revenue of $330.4 million, a decrease of 17.5% from $400.3 million in the same period of 2023. For the nine months ended September 30, 2024, revenue was $901.5 million, down 7.7% from $976.6 million year-over-year. The decline in revenue was primarily attributed to a 23.3% drop in product revenue, which fell to $233.8 million from $305.0 million, while installation revenue increased by 46.2% to $32.1 million, and service revenue rose by 6.8% to $50.8 million.

Despite the revenue decline, Bloom Energy reported a gross profit of $78.7 million for the third quarter, a significant improvement from a loss of $5.2 million in the prior year. The gross margin for the quarter was 24%, compared to -1% in Q3 2023. For the nine-month period, gross profit increased to $185.3 million from $105.4 million, reflecting a gross margin of 21%, up from 11% in the previous year. The improvement in gross profit was driven by a substantial reduction in costs associated with electricity revenue, which decreased by 93.2% due to a prior impairment charge.

Operating expenses decreased by $10.1 million for the third quarter and $60.1 million for the nine months, primarily due to reductions in employee compensation and benefits, consulting services, and office expenses. The company reported a net loss of $14.6 million for the third quarter, significantly reduced from a loss of $168.1 million in Q3 2023. For the nine months, the net loss was $132.4 million, down from $312.1 million in the prior year.

Strategically, Bloom Energy issued $402.5 million in 3% Green Convertible Senior Notes in May 2024, with net proceeds used to repurchase a portion of existing debt. The company also received a $75.3 million IRS credit for its manufacturing facility in Fremont, California. Additionally, Bloom Energy is transitioning towards comprehensive energy solutions, focusing on hydrogen and carbon capture technologies.

As of September 30, 2024, Bloom Energy's cash and cash equivalents totaled $495.7 million, down from $664.6 million at the end of 2023. The company reported total liabilities of $2.15 billion, an increase from $1.89 billion at the end of 2023, with total stockholders' equity decreasing to $455.0 million from $520.7 million. The company continues to face challenges related to market conditions, including rising natural gas prices and supply chain constraints, which have impacted customer demand and operational costs.