Noel Parks: Hi, good afternoon. I just wanted to — the data center example is such a compelling one as far as outlook for demand growth. I just wonder, could you maybe talk about what number two, number three, number four business lines or verticals that you see being most affected by grid insufficiency and as a result perhaps having the most motivated talks with you as far as becoming new or expanded customers?
KR Sridhar: That’s a great question, Noel. So, let me try and answer that very quickly. The first one that I would think is continuous manufacturing. We are bringing a lot of manufacturing back into this country. These are fabs, semiconductor chips, things like that, large power-intensive companies that not only require large amounts of power, but also want it reliably and want it with a cleaner footprint. We are able to offer all those things. The second place that I would immediately think would be huge would be EV charging, because as fleets need to get charged, whether it’s delivery trucks for warehouses, whether it is buses for metros, or it is fleet cars, I think the ability for — just if you believe in even half the projections of EV uptake in the next five years, the amount of power that’s needed and where you’re going to get that last-mile power, that becomes a very attractive option for us.
The third one, and with that I’ll stop in the interest of time, would be in front of the meter for utilities that have a congested distribution spot and are not able to take care of their customers, and several utilities are talking to us. This is something new for us. We have not done this before, but that’s a healthy part of our pipeline.
Operator: Thank you. Our next question comes from the line of Biju Perincheril of [FSG] (ph). Please go ahead.
Biju Perincheril: Yeah. Hi. Thanks for taking my question. Two questions on data centers. As we sort of think about how the data center operators are looking at fuel cells to power their — are they looking at fuel cells to power their entire facility or smaller portions, some critical parts of those facilities? And then related to that, how challenging is getting natural gas to these facilities? And is that something that Bloom is going to be doing or are you partnering with someone to do that?
KR Sridhar: So, both questions. So, most data centers that are talking to us today are asking us to be the standalone solution, where we are able to provide the complete power for them. This is where it is. And the reason is not because they don’t want the utility with them. The utility is saying they cannot provide them power. Unlike that, the gas pipeline and the medium pressure pipelines is very available and we don’t have to do anything specific other than have our customer tap into those lines and work with the gas companies to get that. We don’t take the fuel risk as you know, but we facilitate bringing the fuel to the customer.
Operator: Thank you. Our next question comes from the line of Sherif Elmaghrabi of BTIG. Please go ahead.
Sherif Elmaghrabi: Hi. Thanks for taking my question. You mentioned the looming power shortage, which point to higher electricity prices over the medium term. Do you see — because of that, do you see potential to push pricing this year to help reach the higher end of the guide, or is that really — are we thinking it just comes from growing acceptances? And on a related note, what sort of uptake are you seeing for the Series 10 offering?
Greg Cameron: Listen, on the guide, it’s volume driven, really, and the value that we sell to the customer will always make sure we’re value pricing it against other alternatives, but if you’re thinking short term, it’s really going to be the volume metric which would drive us at different parts in the guide.
Operator: Thank you. Our next question comes from the line of Jeff Osborne of TD Cowen. Please go ahead.
Jeff Osborne: I think the prior person asked on Series 10, it would be great to get an answer on that one as well. But the two ones I had was on the backlog coverage. Can you talk about the visibility to the low end of the guide? Are you fully booked for that, or do you need the pipeline to convert? And I was curious, Greg, if you can discuss the carbon intensity score for the ITC in 2025? As that starts, do you anticipate a wave of bookings in ’24 ahead of that, that then, I believe you have a year to complete the project?
Greg Cameron: Yeah. So, I’ll let KR talk about the Series 10. Listen on the ITC, right, we’re coming up at a period of time here where based on current legislation, what we’ve seen in the past is it has driven some commercial activity around that to make sure people are getting those orders in so they can safe harbor and they can continue to enjoy that to 2025. Based on everything that I’m hearing from our team in DC, I think they’re making a tremendous amount of progress around making the case that the Bloom technology is required and should be part of the solution going forward and we should enjoy the benefits of the ITC being extended. It’s not new even though I’ve just been here four years, I think this is the third time that I’ve seen this process go through.
So, it’s just part of our usual business process to be aware of it. And if it drives some volume in the near term that’s great. But obviously over the long term, I do not think that Bloom should be disadvantaged given its technologies and efficiencies versus others.
KR Sridhar: So, on like Series 10, if you just look at what I said about us going from the single megawatts to tens of megawatts and hundreds of megawatts, you can call it the Series 10 and the Series 100 is pretty much what we are dealing with in our entire pipeline. And that’s the kind of stuff we’re dealing with it. And the fact that we created that nicely packaged solution for somebody to understand and begin to work with us is going to help us with the commercial momentum. So that’s a great step forward for us, and it is an integral part of what is in our pipeline and how we are prosecuting future orders.
Greg Cameron: Thanks, Jeff.
Operator: Thank you. Our next question comes from the line of Kashy Harrison of Piper Sandler. Please go ahead.
Kashy Harrison: Good afternoon, and thank you for taking the questions. Maybe just a follow-up to the last one. Can you give us a sense of how much of guidance is locked via the backlog, and then what needs to be booked and shipped during — and what incremental might be needed to be booked and shipped during the year? And then just looking through the K, in the factors affecting your performance section, there was a comment about the Amazon deal. Presumably, it was the Amazon deal, suggesting the project was delayed. I think you said due to a permit. When do you expect to receive the permits? And how should we think about the risk of cancellations outlined within the K? Like, are these — how high is the probability?
Greg Cameron: So, I’ll let the K speak for itself on that project. I think we outlined it pretty well. We’re ready to deliver on that project Amazon, and we’re working with them on the next steps and the path forward as we go forward. Listen, on the backlog, right, you see the product backlog is significantly bigger than where the guide would be for the year. Now some of that is more in the out years. As we look at it for the course of the year, we obviously have a series of transactions, some that aren’t even in the backlog, right? If you think about it versus prior years, we had repowerings and other things that weren’t part of that. So, there’s a lot of optionality within Bloom as we go through the year and making sure that the things that we deliver on for the year, some of those are known, some of those aren’t known.
So, we may have an example where a project is planned for, for the year, and during the course of the year, the customer has some issues or itself on an interconnection agreement or permitting and that leaves us to go pull a different one in for the year or to find an additional one, and that could either create movement within the guide or could create movement above the guide, which you saw, I think, in 2022 is where we happened late in the year and we overachieved given some of the opportunities that we found in the back half of the year that the customer needed the equipment sooner.
KR Sridhar: So, with that, I think we are running past time. I greatly appreciate the tremendous interest, great questions from all of you. I want to take this opportunity to thank Greg for his partnership and his invaluable help in driving better financial and operating performance at the company. We will miss him here, and I wish him the best of luck going forward. He’ll help us make an orderly transition to our next CFO. I want to close now by saying we are in a great position to continue our growth and success. We are excited about the quality and quantity of our sales funnel. We are confident about our long-term growth rate and projected targets. We are focused on operating the business in a financially responsible way, being very diligent, managing costs and driving cash flow and profitability. We are confident about a bright future for us, and thank you all for being part of this journey. Thank you.
Greg Cameron: Thank you. Thanks, KR.
Operator: Thank you. This concludes today’s conference call. We thank you for participating, and you may now disconnect.
