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Sep 30, 2021
Plug Power Q3 2021 Earnings Report
Reported largest revenue quarter with $144 million in Q3 2021 revenue, a 34% year-over-year increase.
Key Takeaways
Plug Power reported a record revenue quarter with $143.9 million, up 34% year-over-year. Gross margin remained under pressure due to elevated fuel, service, and product costs, though improvements are expected in 2022. The company continued to expand its green hydrogen generation network and formed strategic partnerships in Europe and Asia Pacific.
Net revenue for the quarter was $143.9 million, compared to $107.0 million in Q3 2020.
Shipped 4,559 GenDrive units compared to 3,709 GenDrive units in Q3 2020.
Revenue associated with 16 hydrogen infrastructure systems for the third quarter 2021 compared to 13 hydrogen infrastructure systems in the third quarter 2020.
Formed joint ventures with SK E&S and Fortescue Future Industries to expand into Asia Pacific.
Plug Power
Plug Power
Forward Guidance
Plug Power is raising revenue guidance for 2022, expecting $900 million - $925 million due to acquisitions and commercial traction.
Positive Outlook
- Expect a decrease in average molecule costs in Q1 2022 vs Q4 2021 of 5%.
- Expect Q4 2022 hydrogen costs to be over 20% lower than Q4 2021.
- Expect fuel margins to break even by 2023.
- Expect fuel business to start generating cash flow and approaching corporate margin targets by 2024.
- Expect to reduce service costs on a per-unit basis by 30% in the next 12 months and by 45% by the end of 2023.
Challenges Ahead
- Gross margin has remained under pressure due to elevated fuel, service, and product costs.
- COVID-19 related costs primarily stemmed from freight and material costs.
- Margins in the fuel business continue to remain under pressure in the near term.
- Delivery logistics are expected to remain under pressure through 2021.
- Margin trend is expected to remain under pressure until the end of the year, largely impacted by increases in natural gas prices.