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Mar 31, 2020
Plug Power Q1 2020 Earnings Report
Reported strong Q1 2020 performance, reaffirmed 2020 guidance, and made meaningful progress on hydrogen vertical integration strategy.
Key Takeaways
Plug Power reported record gross billings of $43.0 million in Q1 2020, representing an 89% year-over-year growth. The company reaffirmed its 2020 guidance and made significant progress on its hydrogen vertical integration strategy, including pursuing two acquisitions.
Plug Power continued to operate through the COVID-19 pandemic while prioritizing the safety of its employees.
The company supported mission-critical applications for its customers with record high uptime during the pandemic.
Plug Power reaffirmed its guidance to achieve $300M in gross billings in 2020, representing more than 25% growth year over year.
The company is pursuing the acquisition of two companies in the hydrogen generation and distribution business.
Plug Power
Plug Power
Forward Guidance
Plug Power reaffirms guidance to achieve $300M in gross billings in 2020, which represents more than 25% growth year over year.
Positive Outlook
- Increasing demand from customers focused on delivery of mission-critical products and online sales.
- Recurring revenue from long-term contracts provides a buffer to the full-year forecast.
- Strong relationships with suppliers ensured continued support of key food and retail distribution customers.
- Successful launch of the 125kW ProGen hydrogen engine for heavy-duty applications.
- Agreement with Generate Capital to increase the term loan facility and reduce the interest rate.
Challenges Ahead
- The pandemic is causing a global economic slowdown, affecting business and families around the world.
- The company is also impacted by the economic downturn.
- Service costs were unusually high for direct and PPA customers in the first quarter given the unexpected peak period due to COVID-19 impact.
- Risk of delays in or not completing product development goals.
- Volatility of our stock price.