Tuesday, August 7, 2018

Bloom Q2 2018 Results



I took a look at the letter Bloom sent to investors.  My take away on their Q2 results.

The 30% ITC given to them by Schumer the Bloomer saved their ass.  They sold their boxes at an average price of $7,093 per kilowatt in Q2 2018 versus $5,581 in Q2 2017.  This is a 27% higher unit price that was made possible by the Schumer gift from us taxpayers.

Bloom's Total Installed System Costs increased from $4,966 per kilowatt in Q2 2017 to $5,607 per kilowatt in Q2 2018.  This is bad news given that Bloom operated at a larger scale in Q2 2018 versus a year ago.  Bloom claimed to have increased acceptances by 11.7% versus a year ago.  Why did unit costs increase by 12.9% when operating at a larger scale???  Bloom needs to answer this question.

They did raise $284.4 million in the IPO which means the underwriters took more shares to market than 18 million.  My guess is the full 20.7 million shares were sold for an average net price of $13.74 each.  This also means that Bloom paid a fairly hefty fee of 8.4% to get the IPO done.

Bloom gave projections on revenues per kilowatt and costs per kilowatt and how many kilowatts they will deliver in Q3.  Doing the math means Bloom is forecasting an addition of $8 million to gross margin in Q3 2018 over Q2 2018.

This means Bloom is forecasting being profitable at the operating level in Q3 2018 after having a loss at the operating level in Q2 2018.

It is interesting that Bloom did not report on the amount of new orders it received and what their backlog is.  Bloom sold 18.1 megawatts of fuel cells in Q2 and is forecasting selling 22.5 megawatts in Q3

Bloom's cumulative losses have now grown to $2.394 Billion.  This rounds off to three billion dollars.  Dr. Evil Sridhar needs to learn a new game for his lead role In Electric Powers The Con Who Screwed Us

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