Good afternoon. My name is Joel, and I will be your conference operator today. At this time, I would like to welcome everyone to the Bloom Energy Q3 2022 earnings conference call. All lines have been placed 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 withdraw your question, press star followed by two. Thank you. I'd now like to turn the conference over to Ed Vallejo, Vice President of Investor Relations. Sir, you may begin your conference. Thank you, and good afternoon, everybody. Thank you for joining us for Bloom Energy's Q3 2022 earnings call. To supplement this conference call, we furnished our Q3 2022 earnings press release with the SEC on Form 8-K and have posted it, along with supplemental financial information that we will reference throughout this call to our investor relations website. Our Q3 2022 10-Q is also in the process of being submitted today as we speak. 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 2022. 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-Q and 10-K. We assume no obligation to revise any forward-looking statements made on today's call. During this call, and in our Q3 2022 earnings press release, we refer 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 Q3 2022 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 Greg Cameron, our Chief Financial Officer. K.R. will begin with an overview of our business, then Greg will review the operating and financial highlights of the quarter. After our prepared remarks, we will have time to take your questions. I will now turn the call over to K.R. Thank you, Ed. Hello, everyone, and good day to you. We're very pleased with our financial and operating results in the Q3 and the outlook for the Q4 and fiscal year 2022. Greg will go into details on the financial and operating performance in his remarks in a few minutes. Before that, let me share with you some observations on market dynamics and two company highlights. On the market dynamics, the world lacks energy security. The disruption of oil and gas supplies to Europe, the Russian attack on grid infrastructure and power plants in Ukraine, and the long duration power outages that affected large populations in the aftermath of Hurricane Ian in Florida all demonstrate the fragile and brittle nature of our fuel and electricity infrastructure. It could have been worse. We came perilously close to catastrophic power outages in Texas and California during the summer months. Now, the Northeast fears its power reliability over the winter. Businesses and governments are quickly realizing that absent significant changes, power disruptions will increase in severity and frequency as extreme weather events become more frequent. In addition to energy security, the volatility and price increase for both fuel and electricity are contributing heavily to economic insecurity. The fuel and power industries are not responding to these challenges with alacrity. Instead, they are waiting for the perfect zero carbon solution of the future. They are reluctant to deploy anything that may become a stranded asset due to policy and regulatory events. This void creates a large opportunity for Bloom. We see that our commercial and industrial consumers want pragmatic solutions that can power their growth today and meet their zero carbon needs in the future. In Bloom, our customers see a peerless platform that is purposeful and practical. By powering them with non-combustion based, always on clean power today using natural gas and offering to transition them to net zero fuels when they become viable, we are offering them energy security, economic security, and environmental security. We are confident that our quick time to power skid-mounted energy server will become a solution of choice for commercial, industrial, and utility customers. As a company, we see the market conditions turning favorably for greater adoption of our server platform. We are well positioned to execute on the goals we have set and meet the moment. Now, two highlights. First, we have invested in our capacity expansion by standing up a new factory in Fremont, California. In 2021, we announced our decision to fund and build additional manufacturing capacity to support our growth. Many of you saw that factory under construction during our investor day. We told you that we would de-risk the execution by using copy exact manufacturing tools and processes, and deliver a doubling of stack manufacturing capacity by end of 2022. We are on track to doing what we said we would do. Last month, we produced 40% more stacks than we did in July. We are on track to double our stack production by the end of the year over 2021 levels. The factory also has functional flexibility and advantages we told you it would have. The manufacturing line is currently producing fuel cell stacks and electrolyzer stacks using the same equipment and same team members on the same lines. The commercial and operational advantages of this flexibility is huge, and it is unique to the Bloom Energy Server platform and architecture. You will see the benefit of our on-time execution of the factory through better margins in Q4 as our volumes ramp up. Second, our technology is flexible. Different products that serve different customer needs run on the same basic technology. We have discussed the ease and speed with which we can adapt a platform to new applications. Now, I can point to our marine applications to illustrate these points. We signed our first contract with Chantiers de l'Atlantique in June of last year, and at that time said we plan to deploy on our first ship in Q3 of 2022. I'm very pleased to say we did that with near perfect execution. As of a few weeks ago, we are providing 150 kilowatts of power for MSC World Europa, the world's largest liquefied natural gas-powered cruise ship, and one of the first to incorporate fuel cell technology. It is on its way to Doha, Qatar to host guests during the World Cup. This is a sea change moment in this massive industry as it evolves towards a net zero and sustainable future. The industry wants clean vessels, and in many cases have been holding off ship purchases to wait for the perfect technologies, even though they may still be years away. Bloom Energy Server offers them a better solution that they can deploy today and a clear pathway to a net zero future. As Linden Coppell, Head of Sustainability and ESG at MSC Cruises, has said publicly, "Bloom's fuel cells will reduce emissions of greenhouse gases substantially compared to conventional LNG engine without producing emissions of nitrogen oxides, sulfur oxides, or particulates." She also recognized that Bloom's technology was future-proof. It is compatible with the low and zero carbon fuels of the future, such as green methanol, ammonia, synthetic LNG, and hydrogen. This is why CdA and MSC adopted Bloom's technology. On the marine front, we believe our execution and success is leading to real momentum, and we will have more to say in the coming months. Let me now turn it over to Greg to elaborate on our financial and operational performance and join you after that to answer your questions. Greg? Thanks, K.R. I agree with you. We had a very strong operating and financial quarter and are well positioned for the future. To begin, let me point to a few key highlights. We had a record Q3 total revenue of $292 million, up 41% versus the Q3 2021 on increased product acceptances. We improved our liquidity through a successful completion of a secondary equity offering. We are on track for doubling our manufacturing capacity this year. We continue to see strong customer interest across our Energy Server and electrolyzers. We are reaffirming our 2022 guidance. With those as highlights, let me provide some additional context to our Q3 performance. Our ending cash balance for the Q3 was nearly $670 million, up over 100% versus the same quarter last year, and compares favorable to our recourse debt of $294 million. In August, we executed a secondary offering of 15 million Class A shares. The deal was oversubscribed at $26 a share, yielding $389 million of gross proceeds. We also received notice from SK ecoplant that they were executing their second tranche option to purchase an additional 13.5 million Class A shares at $23.05 per share for gross proceeds of $311 million. They also will be converting their 10 million redeemable convertible preferred shares to Class A shares. The share purchase is subject to the completion of regulatory reviews, and both conversion and the purchase are expected to close in the Q1 of 2023. Our partnership with SK ecoplant is strong and continues to find new avenues for growth. Our value proposition for the energy servers and electrolyzers is robust. The energy servers quickly bring additional resilient power to a client site while providing a pathway to decarbonize. Our customers need solutions today to reduce their carbon intensity while providing future optionality to move to on-site net zero solutions like hydrogen. In hydrogen production using our electrolyzer, we are engaging large-scale developers of hydrogen and green ammonia projects. As they build their project economics, they clearly value the demonstrated efficiency advantages of our high-temperature solid oxide technology and our manufacturing readiness that aligns with their timelines. The Inflation Reduction Act passed this summer continues to be a tailwind across our business. Our Q3 total revenue of $292 million was driven by strong demand with an increase in our manufacturing capacity. Product and service revenues were up nearly 50% versus the same quarter last year as we delivered 65% more acceptances. Our Q3 non-GAAP gross margins of 19% were roughly in line with the Q3 of 2021. Pricing continues to remain strong while our unit costs are temporarily elevated by the commissioning of our new Fremont manufacturing facility. Our supply chain team is navigating the current pressured environment and continues to manage availability, inflation, and lead times for our critical items. Like in the Q2, as the number of builds increased versus the prior quarter, we saw a modest decrease in the unit cost quarter over quarter. We expect unit costs to decrease as we continue our manufacturing ramp. As a note, roughly 40% of our 2022 system builds are being completed in the Q4. We continue to invest in our manufacturing capacity, research and development, and our commercial resources. Our engineering teams are developing our technology roadmap for electrolyzer, microgrid, and future generations of our servers. In sales and marketing, we are adding resources to build our selling capability for electrolyzers, waste energy, data centers, and broadening into international markets. Through the year, we've invested in inventories and capacity to meet demand. We've doubled our manufacturing capacity this year. As we exit 2022, we will have over 600 MW of fuel cell capacity, which when converted at the higher power rating, that's over 1.3 GW of electrolyzer capacity. Next year, within our existing facilities, we plan to again double our capacity. As planned, we expect most fourth-quarter acceptances in revenue to be domestic, which will benefit from the increase in ITC as part of the Inflation Reduction Act. During the Q4, we plan to execute a repowering of PPA four. The financial profile will be like the Q2 PPA three A repowering with a non-cash charge to accelerate amortization of the prior structure, a reduction in non-recourse debt, and product sales at an attractive margin. These repowerings of currently consolidated PPA structures are simplifying our financial reporting and strengthening our service platform. We are reaffirming our 2022 guidance for revenue, margins, and cash flows. With our strong backlog and pipeline, we remain confident that we can deliver at least $1.1 billion of annual revenue. To achieve our margin plan, we will need Q4 non-GAAP gross margins to be about 30%. We have several paths to deliver these margins as our product costs reduce with increased output, higher ITC on domestic acceptances, and a favorable price mix for our planned acceptances. By achieving the roughly 24% non-GAAP gross margins for 2022, we would expect to deliver positive non-GAAP operating margin and cash flows from operations. A note on CFOA. Historically, we have factored some of our receivables to align revenue and cash collection more closely. Given the rising interest rate environment and our strong cash position, we're reevaluating the economic value of this practice. Our current cash flow guidance assumes we continue to factor, and if we make a change, it will impact the timing of cash receipts in our 2022 CFOA guidance. In summary, we had a strong operational quarter and are building momentum into the Q4 in 2023. We've had significant tailwinds with a push for abundant, clean and resilient energy. We believe the company is in an inflection point to build upon our mature technology platform, solid record of accomplishment, and robust growth roadmap. We are extremely excited about our future. With that, operator, please open the line for questions. Absolutely. At this time, I would like to remind everyone, in order to ask a question, you can press star, then the number one on your telephone keypad. We'll pause for just a moment to compile the Q&A roster. The first question is from the line of Sam Burwell with Jefferies. You may proceed. Hi there. I was wondering if we could start off actually on the nuclear integration with solid oxide electrolyzers, and curious if there's anything on the horizon that we can expect to see you guys leverage out of the Westinghouse agreement. First and foremost, Sam, welcome to Bloom team coverage. We are glad to have you on board. This is K.R. You know, we clearly, I think, the INL demonstration, which is what you're referring to, and to bring everybody up to speed, we demonstrated using the Department of Energy that our electrolyzer is significantly, you know, even our early iteration, 30% better in terms of energy efficiency when we do heat integration with where we need to go with significant room on the upside. This is what got Westinghouse excited, and this is very from the relationships. Currently, as we sit here, we are jointly working with them on several opportunities. Again, as is tradition in Bloom, we will speak about it when something actually materializes and the customer allows us to speak about it. We see this as a huge opportunity. Thank you. The next question is from the line of Michael Blum with Wells Fargo. You may proceed. Thank you. Good afternoon, everybody. Wanted to ask, in terms of hitting the guidance for the year, service margins are, you know, still in negative territory. I wonder if you could just speak to is part of the plan to get to these numbers for the year include service margins turning positive? If so, what's going to drive that? Thanks. Yeah. Hey, Michael, it's Greg. As we put the construct together this year around service, the biggest component of that service is product costs related to replacement power modules that we put into the fleet. The same issues that we've had on making sure that we continue to drive the cost down of our new product is the same thing that translates over into our service business. As we've been building out the Fremont facility and carrying more capacity than we were currently outputting and absorbing that, those unit costs for both the new product as well as for replacement modules has been somewhat elevated. Our expectation is as we move through the remainder of this year and into next year, and we're building more units, better absorption, lower product costs. You should see that in our new product business as well as our service business. If you look particularly within the Q4 around how we're building that framework, I would expect some improvement in our service margins given that. There is still about a breakeven assumption within the business that we're still able to get to our full year guidance around gross margins. One more thing I'd add, Sam, when you think about this is K.R., is the following, right? Look at the fundamentals of the service business. As Greg said, we are seeing the lifetimes improve with time on our modules, which is key to service. Our costs, while COVID related, supply chain related, they're in a standstill. We are going to get back to that treadmill of bringing the cost down quarter after quarter. That is going to happen. You put those things in place. If the life gets longer and the cost of replacement gets cheaper, you know, clearly the units we are shipping, we will see the cost come down. Now, there'll be other pressures that we will be willingly taking, which is when we go into new territories, that will be in the early days with low volume. You will see that service will be a cost center there. That is necessary for growth, and we will do that. That's the balance you will see. Fundamentally, the thesis that we presented to you of service being a creator to the business as we go forward is solid, and we stand by it. Great. Thanks, Michael. Thank you. The next question is from the line of Maheep Mandloi with Credit Suisse. You may proceed. Hey, good evening. Thanks for taking the questions and congratulations on the ramp there. First, just want to touch upon the revenue growth and the gross margin expecting in Q4. Greg, you talked about favorable mix of fuel ASP projects. Could you just provide some more context around those? Is it some specific customers in the U.S. or like a PPA four, PPA five simplification, which is driving that? Also just wanted to understand, and I think in the queue you've talked about ITC benefiting the Q3 revenues. Yeah Or higher ITC rather. How should we think about that benefiting Q4? Thanks. Yeah. Thanks, Maheep. A couple things to unpack in there. One is we've definitely seen an increase in our acceptances each quarter, and thus an increase in our revenues each quarter as we've gone through the year, and we've brought Fremont stack manufacturing online. Stack manufacturing, as you know, has been our capacity constraint. We have more than enough capacity in our Newark, Delaware facility around system assembly. It's really been about stack, and we've built that out each quarter. Expectation, I think I even said it in the script, was we would expect about 40% of our annual builds this year to be done within the Q4. That is really gonna help us as we continue to drive forward to get to our revenue guidance on the year. Listen, on mix and ITC, for the quarter, as we look at the Q4, we're very much focused on making sure that we can deliver the revenue against our backlog and pipeline to continue to grow our revenue to where our guidance is. We do see a path to get to our 24% gross margin targets for the year, really driven by a few things. One is unit costs should continue to come down like it's come down every quarter so far this year as builds have been increased. We would expect to see those unit costs to come down, and that's a margin improvement. The second thing is we've been prioritizing our shipments to SK ecoplant as part of their take or pay contract because we've been constrained. We wanted to make sure we could meet our requirements to them for the year. We've been shipping them through the course of the year and are nearly done on that. We've got a lot in the Q4 that is expected to get shipped to U.S. domestic customers, including the PPA for repowering that we're gonna do within the Q4. Ultimately, we've done that. When we've taken a look at our mix and to make sure that we can get to our targets this year, we have the flexibility and timing with a lot of our customers where we can pick and choose within a 90-day period around how we want that mix of acceptances to come. You may see within the Q4 a slightly above average average selling price as we continue to make sure that we can meet our commitments that we've made to everybody and get to the margin numbers that we've had, and that will regulate as we get into 2023. Really encouraging thing about margins this year is price has been relatively flat over the last 5 or 6 quarters, and we've been able to hold price, and as cost is beginning to improve, you're beginning to see a margin improvement on our product management. In the Q3, one of the things that we were able to do when ITC for 2022 went from 26%-30%, we circled back with some of our financiers that had U.S. domestic acceptances within 2022. Part of our good relationships with them were that we were able to make sure that that upside that was coming through was shared equally between where customers were, where our financiers were, and where we were. You saw about an $8 million benefit, I think as you read the Q, we talk about that we took within the Q3. Given the domestic shipments within the Q4, I would expect to see a number larger than that as we pull in and build our framework for Q4. Hopefully there's not too much detail in there, but gives you a sense of how we're thinking about our margins and how ITC benefits us for 2022. Thank you. The next question is from the line of Julien Dumoulin-Smith with Bank of America. You may proceed. Hey, good afternoon. Thanks, team, for taking the time. I appreciate it. First off, just keeping with this IRA focus, if I can, you know, what geographies and applications are seeing greater attention? You know, clearly commercial utility rates and demand charges going higher. ITC should be invigorating. Can you talk a little bit more about the backlog? Related there, you all at the analyst day had talked a little bit about the, you know, interconnect opportunity, utilities obviously having challenges, data centers talking that up of late. Are you still seeing an opportunity for novel load which can't be met with utilities as you look at your backlog creation into 2023? Yeah. Hey, Julien, it's Greg. Let me kick it off, and what I miss, I'll ask K.R. to clean up for me. Listen, on IRA, we are still really encouraged by everything that we're seeing in there. We're you know, whether it is the ITC benefit on our core microgrid equipment or whether it's on the ITC benefit being extended into our biogas waste to energy business and more of that product getting in, we're really encouraged about that, as that helps our projects become more attractive to our customers. The 45Q credits around carbon capture were important to us. We've talked before, not only going from $50 to $85, but the size of the projects were before about 200 megawatts and now can get down into single megawatts. Probably makes sense for us in the 20-30 megawatts, but a lot more opportunity to play in there. Obviously with the hydrogen PTC at $3 for our electrolyzer business within the U.S., given its performance for that, we're really excited about that. What I'd say generally about how we think about the IRA within our business, across all those different applications, product lines and geographies within the U.S., I would say that our velocity within the deals that we've seen is definitely increasing. It has created some scarcity around resources and other things that we can use to our advantage to make sure that we're moving these deals through the system quickly. No big announcements to make for you or no insights into where we think the backlog will be for the end of the year, but we're really excited about the activity we're seeing. You asked specifically about the interconnection, the time to power. Listen, whether it is in the data center space, the advanced manufacturing space, including semiconductors, there is a tremendous need for power right now, whether it's from onshoring back to the US of those activities or just the needs within data centers. Quite frankly, as they go to their local utilities and which they've shared with previously around this is gonna be their energy demand when they made the commitment to build in that location, they're being told that it is gonna take several quarters, if not several years, to get to the power that they've needed. We've engaged several customers in that space. We're really encouraged about the velocity of those deals. The focus really becomes around our manufacturing capability, in that we have product that we can bring to their site quickly. Two is the performance of our equipment, that it can operate in what we call on a freebird, which is simply just not an interconnect in, so we can bring power in, and we don't have to go through that application process. Ultimately, all everything comes back to our core value prop around the quality of our product, the sustainability of our electricity, the predictability and the resilience of it, and that all plays very well within the market. We continue to see a lot of pickup there. Still working through our normal Q4 that we have around here, but we're really encouraged about the velocity of deals that we're seeing. Thanks, Julien Dumoulin-Smith. Julien, I would add to that a couple things, right? When you look at that growth because of onshoring of manufacturing and data centers, and look at specific hot spots in the country where that gap between supply and projected demand is in the hundreds of megawatts, that could be a dual play. The dual play is, like Greg mentioned, it could be a free bird, a self-operating microgrid that supplies power for that customer. The other one could be in front of the meter, working with the utilities, being able to provide the utility with the tools to put this power for their customer. As they bring transmission distribution, and as they alleviate it, thanks to our skid-mounted platforms, they can move those around where they need to move it. This must be super attractive for a utility to be interested. Not only are we talking to potential customers in our funnel, we are also engaged with utilities to say, "How can we partner?" This should be a win for the utilities, number one. The other question you asked on IRA, and Greg alluded to this, biogas and waste-to-power, right? Waste-to-power, and I'll tell you, we have seen an order of magnitude increase in the funnel that we are seeing, because of IRA. I'll tell you, it's somewhere between 200 and 300 megawatts worth of funnel inquiry that we have, in the easy, waste-to-power market. These are project developers. Many of these are brand new, trying to utilize all the IRA benefits. What will actually materialize, what will not, time will tell, but we clearly see a 200-300 MW funnel out there in terms of opportunity. Super exciting. Thanks, Julien. Thank you. The next question is from the line of Martin Malloy with Johnson Rice. You may proceed. Thank you for taking my question. I wanted to ask about the Taylor Farms press release that you had during the quarter. I thought that was particularly interesting. Maybe if you could just give any insight that you can into the customer's thought process in leaving the grid and going with Bloom servers, and if you're seeing similar kinds of inquiries from other industrial users. Martin, this is K.R. You know, thanks for asking that question. Look, Taylor Farms is a great example for us of a repeat customer who started very small with us and grew with us as we went along. For people that are not familiar with the name, if you go to a grocery store and buy good salad mix, chances are that's a Taylor Farms packaged salad mix. Okay? They are the country's largest provider of this. So very, very large footprint, serving a very important need for the country. Now, they're a fantastic example of what again we are seeing with our current electricity system. These farms and where these packaging plants are, typically at the very end of the line in rural areas. As the energy system is getting constrained, the electricity, you know, system is getting constrained. Even on a good day, the quality and the reliability of the power that they have at the end of the line is terrible. God forbid, things like PSPS happen, which they have experienced. For days on end, they don't have power. The amount of damage it does to their ability to do business is profound. Therefore, they wanted a microgrid that was completely independent of the grid, and they could just operate. You know, this was a requirement. What we have always said is when you combine our base load power with a little bit of energy storage, with a little bit of engines if you need it, with solar, you put all that together, you get the Goldilocks of electricity, okay? What you get is energy security, economic security, and environmental stewardship. You put the three together, that is, you know, Taylor Farms is an example of where we believe, and we have strong conviction, the rest of the, you know, like business world is gonna go when they realize what is needed. Thank you. The next question is from the line of Noel Parks with Tuohy Brothers. You may proceed. Hi. Good afternoon. Hi, Noel. Hey, Noel. I wanted to touch a bit more back on biogas. You've talked about the funnel of inquiries you have and just how big it is in the waste-to-power space. I recall you having some optimism earlier in the year that it would be a big second half for that business line. I wonder if you could just expand a little bit on that. Are the drivers pretty much everything you anticipated? Of course, IRA is helpful. Do you have any sense about, you know, what trajectory the growth might take as you cross into next year? Look, that's a great question. Yes, when we talked about the IRA and the benefits that it had created for taking what would be a problem in that methane from the waste going into the atmosphere and converting that into an opportunity, everything was lined up there, right? That story absolutely holds, and we are seeing that more people are realizing that is not only a good thing to do for the environment, it's a good thing to do for their wallet. Sound okay? When those two things combine, market takes off. There are two aspects of this waste to energy that I wanna focus. One aspect of the waste to energy is, whether it's landfill, whether it is, you know, like, you know, like dairy farms and, you know, like animal waste and all that. There you would see that our systems require minimal cleanup. Our systems don't need to be very large. For the amount of biomethane that you produce, they will deliver the maximum amount of electricity on the other side. For those reasons, we are the preferred choice by most developers in this field, whether it's a wastewater treatment plant, whether it's a dairy farm, any, you know, anybody else, right? That's the value proposition there. We see multiple opportunities there. In places like wastewater treatment, it's also a resiliency play because should there be a big natural disaster and the grid not operate, they are eating their own dog food, right? They're able to make methane and then convert that to electricity and operate their, you know, like wastewater treatment plant, and that resiliency brings a fantastic advantage. You go to the other side of the clean fuel credits, whether it's RINs, D-RINs, LCFS, it's all that. There's a very strong formula on CI score, and these are very large projects being developed in the Midwest, for example. Even though they have to pay a slightly higher premium to use Bloom's electricity, by using Bloom's electricity as opposed to the grid, they lower their CI score, and the advantage they get on the biofuel is significantly greater than the premium they pay for the electricity. We have 8-10 projects between all these we are actively working on right now. While it's difficult for me to handicap for you, and even you know, even if I could, I wouldn't give you a number as you know. From that 200-300 megawatts, we would expect a pretty reasonable chunk to actually go into contract next year. Good. Cool. Thank you. The next question is from the line of Kashy Harrison with Piper Sandler. You may proceed. Good afternoon, everyone, and thank you for taking the questions. Just two quick ones for me. I was wondering if you guys could give us a sense of your current system contract value backlog. I know it's the metric you typically provide annually, but I was wondering if maybe we could get a sneak peek of where it stands today. You know, looks like non-GAAP OpEx ticked up quarter-over-quarter because of investments and is maybe tracking up 25% year-over-year versus revenues up about 20%. Just wondering how you guys are thinking about operating leverage entering 2023. Thank you. Hey, Kashy. Thanks. Listen on GAAP, on OpEx, right? As we went through and looked at where we needed to make investments in the company, clearly we are investing in R&D. That's both in engineers to develop projects, but materials that they can use in the laboratory. We are putting a foot to the accelerator to make sure that, especially post IRA, that we can bring these products to market resiliently and hardened quickly from the team. We've definitely put an accelerator to our technical team to go do. On the commercial side, listen, we're continuing to build out our capability, whether it is with resources in the sale of our hydrogen electrolyzers, in the waste to energy that K.R. was just speaking about, to utilities or to building out our international platform, we are adding resources to there. Lastly, on making sure that we are running this business in a controlled fashion, as you would expect us to, and making sure we have the resources we have in place, we have done that. I think each quarter there's a few things that pop through on the OpEx that were one-timers or things you hadn't planned on. There was a couple that came through this quarter. From a discipline standpoint, this business is all about getting from, as you said, the low 20s OpEx as a percentage of revenue to that 15% OpEx as a percentage of revenue by the middle part of this decade, and we're committed to do that. There was a bit of catch-up we had made over the last couple of years, and as we pull our plans together this year, K.R., my expectation is we won't continue to grow at that rate, and you'll get to see some operating leverage out of it. Clearly we've made sure that we are, if we're gonna err, we're gonna err on the side of growth, in being able to sell our product and control our product. We ought to get some operating leverage, to your point, especially as we move into next year, given the revenue expectations that we see. In regards to our bookings and the sneak peek, I invite you back in 90 days, when we do our year-end call, and we'll be happy to lay out then what a great success the team has had in landing the opportunities for this year. I'll say no more other than I'll see you in 90 days on that one. Thanks, Kashy. Thank you. The next question is from the line of Alex Kania with Wolfe Research. You may proceed. Great. Thanks for taking my question. I was just thinking about, you know, your cash balance, you know, turning to, you know, positive, I guess, plus or minus operating cash flow, I guess, depending on the accounting towards the end of the year. Then also, you know, the additional cash hitting in the beginning part of next year. Just kind of thinking about, you know, how are you looking at capital investment, kind of in this environment, and kind of, you know, I guess with the evolving backlog that you've got, you know, are you already thinking about, you know, the need to add, you know, new manufacturing capacity? Yeah. Hey, Alex. Thanks for the call. It's Greg. Listen, on the cash balance in part around the secondary, a lot of that was to make sure that we had properly capitalized to display not only to our supply chain, but to developers or projects, especially as we've gotten into some more complicated that we had the substantial financial resources to be able to participate at the level that we needed to. We wanted to signal to the supply chain that we are increasing our capacity significantly, and we have the financial wherewithal to encourage them to invest. That was the primary reason that we did the secondary over the summer in August. On capital investment, we're very focused on bringing the Fremont facility up this year and next year. Where we were about 300 MW of total stack capacity at the end of last year, we'll be 600 MW of total stack capacity on a fuel cell basis. That's over 1 GW of electrolyzer capacity that we have as of today, based on the investments that we've been able to make so far this year. We'll continue to bring those online next year, and the investment for it is about $200 million. From that, we'll double our capacity again next year on that same $200 million that we've been investing this year and next year. The payback on that is incredibly attractive at 6-8 months, and we'll go from there. You know, so far we think after we've gotten that manufacturing capacity in Fremont, we're encouraging the team that they can be able to get more capacity out of that same facility going forward. We don't think we stop at 1 gigawatt of fuel cell capacity or 2.5 gigawatts of electrolyzer capacity in Fremont. But to the extent we need to build another factory down the road in a different location, we're glad to know that we have the financial wherewithal to make those investment decisions. Once you've got the building, it's fairly quick to make those investment decisions. It's about 6-8 months to bring it online, and once you get it fully utilized, it's 6-8 months to get it done. Alex, one more thing that I want to add to what Greg's, you know, like, told you. Your, like, question was, would we continue to invest to double the capacity next year? The answer is absolutely yes. While we understand the context of the economic environment that we are all seeing in the macro, just look at electricity and look at the drivers for the demand, whether it is electrification of transportation, whether it is digitization and data center growth, whether it is waste to energy, and, that being an opportunity that's already been created, whether it is electrolyzers or the PTC. You know, from where we sit, this is not going to slow down for us. No. The, the. Good point. The astronomical pace at which it needs to happen may come down a little bit down to earth, but it'll still be huge growth opportunity. You know, both with the previous question on our OpEx as well as this question on our CapEx, we are going to meet the moment. That's the reason why we raised the money, and we are sitting with a product and a platform that is relevant for today, relevant for tomorrow, relevant for the long-term future. We're gonna, and we see nothing but opportunity, and we will continue to invest both in building the team as well as investing in the CapEx to go, you know, lead and be the lead player in this transition. Yeah. Great. Thank you. The next question is from the line of Sangita Jain with KeyBanc. You may proceed. Hi. Thanks for taking my question. Can you share with us how Bloom is participating in the various hydrogen hub proposals that are being prepared for submission to the DOE? We are in active conversations with multiple hubs, and again, these are, you know, the hubs keep how they talk about and which hubs, who participates, fairly competitive at this stage, so I don't know that I'm at liberty to talk about which hubs, but trust us, there are multiple hubs, competing. I think when it comes to hydrogen, I've used this before, I think in the last call, we sell the jeans and the plows to the people who wanna go hunt for the gold, okay. We are participating with anybody and everybody that wants our superior electrolyzer, to put together a superior proposal to win. Thanks, Sangita. Thank you. The next question is from the line of Colin Rusch with Oppenheimer. You may proceed. Thanks so much, guys. Could you speak to, you know, the improvement in yield that you're getting out of that California facility at this point? The improvement in yields? Yep, out of the factory. You know, how that's- Yeah Trending for the. Yeah. Listen, it is, it's a copy, exact paste process, right? The same printer technology, the same furnace technologies, the same manufacturing processes, the same parts go through both our Sunnyvale factory, they go through our Fremont facility. In some cases, as we brought the Fremont facility on, we were using both facilities to create stacks as we brought that process through. There's not a different manufacturing process nor a different outcome between what we get out of Fremont versus what we get out of Sunnyvale. The capacity that we've been able to add has really been amazing over the course of the year, and this really speaks to the ability of the team to bring this tooling online very quickly. Kudos to the team that built the original manufacturing line, that they've been able to bring these processes in and build out this manufacturing line. We've got it 95% up, and we'll have the remainder up by this year, and we'll add, you know, so like two more lines next year. Our expectation is that the yield from it, from a process standpoint, will be equivalent to where we had in the first place. While we always look to improve that with automation, in improving our manufacturing processes, we spend a lot of time on that as a way to help drive an improvement in quality as well as a reduction of cost. No real difference. And Between the California facilities. One very important thing, if you're thinking about it this way, right, our copy exact, but also our modular technology, right. Means that it is giving you not an on/off function of starting a new factory. You keep adding capacity every week, every month as a new tool comes on board. If I were to give you that example, right, in our Fremont factory, bringing tools on every month means that in October, we were able to produce 17% more fuel cells than in September, 25% more than in August, and 40% more than in July. Every week, every month as we go on, we keep ramping up from that one, you know, 1x to 2x. By the end of the year, we will be at 2x the capacity of where we were. This is a low risk approach to scaling our output up. Yeah. Thanks, Colin. Yeah. Thank you. The next question is from the line of Ameet Thakkar with BMO Capital Markets. You may proceed. Hey. Good evening, guys. Thanks for squeezing me in. Maybe a quick one for Greg, but it looked like the installation margins were like a 340 basis point drag on gross margins this quarter, and that's been kind of you guys have said that business is kind of going away, and you can kind of see that it's kind of fading. Is that like another kind of potential kind of tailwind for you guys in the Q4? Is that kind of like basically kind of ceased by the Q4? Yeah, it's a good question, Ameet. Thanks. We are definitely engaging more and more with EPC partners here in the US. They're taking this work away from us, and they're bringing their expertise to help drive lead times with the customers as well as to improve the profitability of it, given that it's their core competency and not ours. I think as you look at, particularly at the Q4, though, the one thing I'd caution you on is you're probably gonna see something very similar to what we saw in the Q3, just given the amount of US domestic installations that we're gonna do. While we may improve on each project, and our expectation with the SIG team is that they will, but just you'll nominally have more deals in the U.S. in the Q4. It'll be there. Over the long term, right, the way we get to our margin levels at 30% by the middle of this decade is we continue to make the product at the profitability we are now. We get service profitable, and we make install a smaller part of the overall P&L. Even if it loses a few dollars, it doesn't impact our margins negatively going forward. It remains a key part of our framework on improving our margins. Thank you. The last question today is from the line of Jeff Osborne with Cowen & Company. You may proceed. Yeah. Thanks for getting me in here. I was just curious on two things. One, any commentary you have on pricing, in particular on the electrolyzer side. I'm just curious what you're seeing as you're going out bidding projects. What was your second one, Jeff, so we can get them both and get them answered? Certainly. I hopped on a few minutes late, so I don't know if in the prepared remarks you addressed Eversource's comments earlier in the week on gas shortages, how we should think about that, what your exposure is to the Northeast. Thank you. Yeah. Great. Listen, on pricing on electrolyzers, I will tell you our view on this remains this is not a BOM plus times 1.4, targeting a 40% margin business. Our technology, we think is proven out to be second to none around efficiencies. We're somewhere between 15%-30%, maybe even 40% if we can find excess sources of heat to bring in displace the need for electricity within there. And since 70%-80% of the cost of breaking water and creating hydrogen is gonna be the input energy cost, we think we've got a competitive advantage. As we look to build our pricing over the long term, we're gonna value price. Meaning, as we pull together with project developers, whether they're doing ammonia, whether green ammonia, whether they're doing clean hydrogen, whether they are manufacturers that are decarbonizing using our technology on site, we're gonna look to create value for them and share value from them. I don't generally get into the discussions of how many hundreds of dollars per kilowatt will our electrolyzer be and how do we compete versus alkaline versus PEM. To us, it's not the right discussion to go have. This is all about creating value for our customers and making sure that their projects get to their economic hurdles, and we think we can do that while we meet our economic hurdles on it. We're excited about it. On the gas side, clearly, I didn't read particularly on Eversource, but we spend a lot of time talking to the gas companies in the U.S. There is a process here that they are getting a lot of phone calls and a lot of demand. It's the second-order question when the local utilities can't provide the electricity and people begin to say, "How do I then do on-site generation, whether it's with a fuel cell or some other type of technology?" That they're getting asked to do a lot, going forward. We see it as a short-term issue, and we think we can work our way through it. We found the community to be incredibly engaging and problem-solving. The projects are not LCOE-driven in most cases. It's really about a time to power in the missed opportunity. There is opportunity here and value creation that allows you maybe to spend a little bit of money in the short term to get power to them while the overall deal hurdles for everybody, but that's the focus. Maybe not saving the last seven cents on the length of pipe. It's really about how quick can we move that process forward. I hope that answers your question, Jeff. I'm gonna turn it over to K.R. We're right at the top of the hour and let you close out here for the team. Thank you, Greg. Thank you all for taking the time to join us today. As you can tell, we are super excited about the opportunity and, again, friend of ours. You have seen us tell you what we will do in terms of not just what the product can do, not in terms of the revenue we can generate, but also in terms of the ability of our platform to be versatile and be able to plug into so many applications. The marine application that we just talked about during the prepared remarks is an example of that, but we see very similar stories in our other growth drivers we have spoken to you about. In terms of the overall demand in the marketplace, we think the electricity demand is going to continue to be robust, and there is going to be in specific areas that are extremely well suited for Bloom. There is a big supply-demand mismatch, and it's all about the time to power. We see that as a huge opportunity, and we continue to be thankful and amazed at the execution of our team in delivering on time development projects, production capability, supply chain readiness, and being able to deliver to the customer. All this put together, we are excited about the future and look forward to talking to you in 90 days about how we finish the year. Thank you. Thank you. Thanks, everybody. This concludes today's conference call. You may now disconnect your line.