Plug Power Inc. (NASDAQ:PLUG) Q4 2023 Earnings Call Transcript

Because where we are in the maturity curve, we’ve had to use a lot of the cash in those transactions to kind of back the investment tax credit aspects. And so, going forward, those customers will probably still lease the solutions, but we’ve been pushing them towards working with the banks themselves and us being more of the middle man to facilitate that. And I would just add that when we started early on, another dynamic was that it was newer technology, so it also kind of made banks — banks don’t like new banks. They like things that have been around for 100 years and they can go to the book and open up and turn to the section for cars or trucks or forklifts and there hasn’t been a fuel cell section. The fact that we’ve been doing this for 10 years and broadly as we have, and there’s so many banks that are involved now, the comfort level with the customers and the banks on this technology is substantially broader and more understood.

And so that makes it easier. And we’ve built a fairly big portfolio of banks that we can now work with. And so, now when we put the customers to those banks, it becomes a much easier conversation for them to put those programs in place. And so that’s what we’re working towards is that we’re no longer the middleman, that we’re just the facilitator and we still treat it as a CapEx sale for us, whether the customer’s buying it or they’re having their bank buy it and leases it to them. And that’s what we’re pushing for.

Kashy Harrison: Appreciate it. Thank you.

Operator: Thank you. We’ve reached the end of our question-and-answer session. I’d like to turn the floor back over to Andy for any further closing comments.

Andy Marsh: Thank you, Kevin. And I just want to reiterate a sentence or two from my opening statement. As the company moves into 2024, we’re focused on fortifying our financial foundation, but also sustaining continual expansion. Now, we are resolved to propel the hydrogen economy, but it’s also matched by our strategic shift towards capitalizing on existing investments and a cautious approach to cash management. And this is, and let me be clear, it sets the stage for persistent growth and innovation. I thank everyone for the time today, and looking forward to talking to many of you over the next months. Have a good day.

Operator: Thank you. That does conclude today’s teleconference and webcast. You may disconnect your line at this time and have a wonderful day. We thank you for your participation today.