Fuel cell manufacturer Bloom Energy recorded a revenue of $235.3 million in the first quarter (Q1) of 2024, a 14.5% year-over-year (YoY) decline from $275.2 million.

The company’s net loss for the quarter reduced 24.5% YoY to $56.54 million from $74.91 million.

The adjusted Earnings Before Interest, Taxes, Appreciation, and Amortization (EBITDA) loss for the quarter stood at $18.21 million, a 14% YoY increase from $15.94 million.

“We are seeing strong market interest, increasing momentum, and robust commercial activity across diverse end markets,” said KR Sridhar, Founder, Chairman and CEO of Bloom Energy. “In addition to data centers, we view AI hardware supply chain industries as a good growth opportunity for Bloom, both in the U.S. and in Asia.”

The company reported a gross margin of 17.5% in Q1 2024, a decrease from 21.2% in Q1 2023.

Bloom Energy’s operating loss during the quarter was $30.7 million, an improvement of $3.4 million from an operating loss of $34.1 million in Q1 2023.

During the earnings call, Sridhar said that as grid electricity prices continue to rise in the U.S., Bloom Energy’s cost-effective solutions are becoming more appealing in emerging markets like Ohio, Illinois, and Indiana. These areas are experiencing growing power demand, have ready access to natural gas, and are increasingly adopting Bloom’s electric and combined heat and power solutions.

He also pointed to the rapid AI-driven growth in data centers, which is straining the grid more than expected before the rise of technologies like ChatGPT.

He also noted that the market dynamics are very clearly in Bloom’s favor. People now want low-carbon solutions; they know there is no miracle switch to a zero-carbon solution overnight. Bloom’s low-carbon solution has the right market dynamic from that perspective.

Bloom Energy recorded a revenue of $357 million in the fourth quarter of 2023, a 22.8% YoY decline from $462.6 million, impacted mainly due to a drop in product sales during the quarter.