LATHAM, N.Y.– Plug Power Inc. (NASDAQ:PLUG), a leading provider of hydrogen engines and fueling solutions enabling e-mobility, has announced its 2019 second quarter results.
- Company deployed over 2,000 GenDrive units, up approximately 70% year-over-year, and reported gross billings of $58.6 million, up 50% year-over-year
- Revenue growth is generating operating leverage; operating income (loss) improved by over 46% for Q2 compared to prior year and adjusted EBITDA was positive for the second quarter 2019
- Expanded into on-road vehicle applications, significantly expanding the total addressable market
- Secured first commercial-scale deployment of ProGen fuel cells for on-road logistics with StreetScooter, a subsidiary of DHL
- Completed “tuck-in” small scale hydrogen fuel cell technology acquisition to complement suite of offerings for broader logistics, robotics, and UAV markets
- Hosting Plug Power Symposium in September 2019
Q2 2019: Record Quarter Reflects Strong Business Momentum
The Company deployed over 2,000 GenDrive fuel cell systems to new and recurring customers, including Amazon, Walmart, Bridgestone and Lipari.
We are pleased to report substantial improvement in operating margin and adjusted EBITDA. This improvement is both year-over-year, and on a sequential basis. This underscores inherent operating leverage in our business model; at a quarterly gross billing run rate of about $60M, we are break-even at our current cost structure. In addition, ongoing cost reductions continue to lower this threshold.
We remain focused on improving our overall profitability as we continue to grow our customer deployments. Increased volume drives operating and manufacturing leverage and enables greater purchasing power in our supply chain. In addition, our engineering team’s design enhancements that improve reliability and reduce cost will improve service and product margins. Strategically, the Company is evaluating ways to turn hydrogen into an accretive cash flow generating business over time and improve margins in our fuel product line.
We encourage investors to remain focused on the Company’s long-term strategic priorities and track progress by our overall revenue ramp, margin expansion in material handling, and market expansion into on-road vehicle applications.
Summary
We are on track to deliver over a 10-fold increase in gross billings since 2013 (given 2019 expectations of $235-$245M). We remain focused on delivering growth and expanding addressable markets. With ongoing operational efforts and inherent leverage in the model, this should translate into continuous improvements in overall margins and profitability. This record second quarter highlights the continued traction in our existing material handling market, while the StreetScooter contract validates our market expansion into on-road market applications. As a reminder, we have reduced cost by over 70% in the last 10 years, have accumulated in excess of 200M hours of field runtime, and believe we can reduce our overall cost by 25% as we double our volumes in the near term.
Now onto the four major announcements that we spoke about during the beginning of the year: StreetScooter represents the first deal to be made public of the four major announcements, which we shared during the second quarter. We are pleased with ongoing progress and expect to make additional announcements during Q3 at or prior to the September “Plug Power Symposium”.
Read the entire Q2 results here
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