Bloom Energy Corporation (BE) Earnings Call Transcript & Summary

Ladies and gentlemen, thank you for standing by, and welcome to the Bloom Energy approach to the decarbonization of the marine transport industry. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] I would now like to hand the conference over to your speaker today, [ Suzanne Schmidt, ] with investor relations. Thank you. Please go ahead, madam.

Thank you, operator. Good afternoon, everyone, and thank you for joining us on this call today to discuss Bloom Energy's approach to the decarbonization of the marine transport industry. To supplement this call, we have posted a presentation on the investor relations website that we will refer to during the prepared remarks. The matters we will be discussing today may include forward-looking statements regarding future events and the future financial performance of the company. These statements are subject to risks and uncertainties that we discuss in detail in our documents filed with the SEC, specifically the most recent reports on Forms 10-K and 10-Q, which identify important risk factors, including those related to the COVID-19 pandemic, that could cause actual results to differ materially from those contained in the forward-looking statements. These include statements about the effects of COVID-19 on the company's business results, financial position, liquidity, demand for our Energy Server and new applications, timing of new applications and the supporting market ecosystem and outlook. We assume no obligation to revise any forward-looking statements made on today's call. During this call, we may also refer to GAAP and non-GAAP financial measures. These 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 the financial performance prepared in accordance with GAAP. A reconciliation between the GAAP and non-GAAP financial measures is included in our latest quarterly shareholder letter. Joining me on the call today are Greg Cameron, Bloom's Chief Financial Officer; and Preeti Pande, Vice President of Strategic Market Development. After the prepared remarks, we will take questions. I would also like to note that we are all dialed in to this call remotely, so we apologize in advance for any audio issues that may occur. I will now turn the call over to Greg.

Thank you, [ Suzanne ], and thank you for everybody joining this afternoon. When I came to Bloom a little over 6 months ago, I made the decision to come to the company based on its technology, a very robust road map for that technology and a real potential to impact the world we live in. I also said, during the first conference call I was on, I was committed to driving transparency into the company. We'll continue to do that as part of our financial discussions, but I'm also committed to -- with the team here to drive transparency into the people, the leadership, the ideas and our plans. And we're really excited to do some of that today in what I hope is the first of many of these sessions. Today is meant to be a technical review about one of our real big ideas. We'll go in a little bit more detail around specifically our growth pillar around marine. With me today, I have Preeti Pande, who is an exceptional leader within the company. She brings a robust global perspective to problem solving and has a deep passion for our technology. So it should be an exciting afternoon. Before I let Preeti share, I wanted to provide a little bit of context for the discussion today. So if you have the chance to pull the presentation down from the website: I'm on Page 3. We've talked about this before. Based upon the product, the Bloom server design, it can serve as a platform, which to evolve into many different applications with very limited R&D or manufacturing investment. The core product, the platform, is essentially the same in each of these applications but, of course, will be optimized to that specific purpose that we have. So it's the same manufacturing process, same supply chain, same group of engineers, same company that is putting the applications in each of the different situations we have there for our product. This is significant in our ability to leverage our operating model and expand our product across the spectrum that you see there. If you flip forward to the next page. This summer, we announced our partnership with Samsung Heavy Industries, specifically around our marine initiative. That partnership had been in development over the course of the last couple years, and we think it's a very powerful relationship to develop our technology jointly together. We're working very hard to do that. We'll be expecting to present solutions to our customers within the next -- within the course of 2022. And I'm very excited about it as not only an opportunity but what each ship represents as an opportunity. We have a tremendous relationship with an opportunity that we're very excited about. So we're more excited than our -- than ever about our ability to contribute to solve substantial challenges within this industry and provide value to our customers. So with that, I'm going to pass it over to Preeti and allow her to walk through a series of slides and an effort that she's been leading for the company.

Thank you, Greg. Good afternoon, everyone. I want to start by saying that Bloom Energy's mission at this point and our team's mission is to power ships with fuel cells. It's a very, very exciting opportunity for us due to its size and our ability to make an impact in this industry. So the maritime transport industry is a mature industry, but we're entering this market from a place of strength. So on Slide 6, you can see the scope and scale of what we have already accomplished. 500 megawatts of fuel cell deployments across 700 sites in 4 countries in a range of -- experiencing a range of environmental, geographical and certification requirements. And with all this experience behind us, today, our fuel cell solution offers unmatched maturity, stability, reliability; and very important for this industry, it offers scale. And having this maturity and scale behind us gives us a really good start and very high credibility. With our maturity, our platform approach and the inherent product attributes that the product has, we are simplifying how shipowners, operators and shipyards think about powering their vessels. So the question that comes up is why marine when there is plenty of opportunity on land. So 2 words: One is suitability, which essentially means product fit; and the second is impact. The fuel cells are a perfect fit for marine today and even more so in the future given where the emission requirements are headed. And many of our product attributes that are certainly very important on land take on even more significance on ocean-going vessels. And I'll add some color to this. Let's look at the product attributes on Slide #7. So let's start with the fact that we have the highest electrical efficiency of any generation device anywhere. The total efficiency is also boosted by the fact that we are going to essentially extract the heat, which is required on ships. This extraction of heat adds another 10% to 15% of efficiency. And higher efficiency in the case of a vessel as opposed to on land also means a smaller fuel tank onboard, which means we are now creating valuable space for cargo on the ship. The fuel cells are clean because they run on an electrochemical process, so there is no NOx, SOx, particulate matter or black carbon. We have the lowest CO2 emissions of any generation device due to our inherently high efficiency and no methane loss or methane slip. The methane slip is the release of unburned methane from an engine. This is a source of GHG emissions on ships today and, depending on the engine, could be anywhere from less than 1% to over 10%. Beyond the GHG implications of methane slip, it also means you're losing fuel, and this will impact the costs of operating the ship. Our design approach lends to simplicity of design. Our modular design means that the Energy Servers can be flexibly configured on the ship. And regarding operation and maintenance, our product does not have any moving parts other than blowers and fans and does not require the highly skilled manpower that's required onboard today. By the way of carrying out -- we also think that we may require fewer people to maintain the equipment during the voyage. So our fuel cells also require very little water. And while this is a great feature to have on land, it is quite important on a ship at sea. It saves on equipment costs, saves on space and the ongoing operation and energy consumption. We bring the same measurements and performance accountability to vessels as we do on land, and in this market, it's a new and a different paradigm. Fuel compatibility or fuel flexibility is the key attribute that makes our platform, our technology future proof. And lastly, we deliver higher availability than any other energy source. So let's talk about the market dynamics in this industry, and let's go to Slide 8. So you may be aware that marine transport is a significant source of global pollution, but there is an urgency to decarbonize. So regulations are expected and aggressive targets have already been set. Current approaches, although, are incremental and these improvements will take the industry only so far. A number of new fuels are being proposed with the intention of achieving decarbonization. So each new fuel requires substantial changes, of course, changes in engines, material sets, lubricants, et cetera. This leads to a major concern in the industry about stranded assets. What technology should we specify that meets the sort of unclear efficiency and emission requirements is not entirely known, which now creates a significant opportunity for impact for Bloom. So let's focus in on the pollution problem. That's Slide 9. Global trade is heavily reliant on shipping, of course. About 80% of everything that we buy has traveled on a very large ship that burns very dirty fuel. Many cargo ships use bunker fuel, which is one of the dirtiest products [ out of ] petroleum refining process, and the industry's reliance on this kind of fuel is a major obstacle for global efforts to curb pollution. If nothing is done, shipping carbon footprint will rise in the coming decades even as emissions decline on land, negating the valuable progress that's being made. Shipping's enormous scale means that it is a significant contributor of all kinds of emissions, CO2, NOx, SOx. For CO2, it's 2.2%; NOx 15%; and SOx 13% of total global emissions. And in addition, black carbon and particulate matter is also emitted, and it is known to create serious health problems in port cities. Now shipping is seen as one of the hard-to-abate industries and for good reasons. It is fair to say that this industry has been late in starting its efforts to reduce emissions, but these efforts are now gathering speed, and this is mainly through the work of the IMO. So let's go to the -- to Slide 10. So IMO is the International Maritime Organization. It's a specialized agency of United Nations, and it is the global standard-setting authority for safety, security and environmental performance of international shipping. And the good news is it has already taken significant steps to regulate the industry. The measures are in line with UN's 2030 agenda for sustainable development, the core belief being that UN's 2030 agenda can only be realized with sustainable transport supporting world trade, and the IMO has taken action. The many actions taken in this direction are: One, it's placed limits on emissions of NOx. It has required a reduction of SOx emissions, required improvement of efficiency on new as well as existing ships, insisted on data collection and has announced a strategy to reduce GHG emissions from ships. So although IMO has set an ambition to cut emissions, as shown on the slide, in 2018, it will publish a final plan and firm up its targets in 2023. While this is the current plan, the EU has been getting impatient with the pace of change. We are on Slide 10 at this point. The European parliament voted in September to include GHG emissions from large ships into the EU emissions trading system by '22. The target of 40% reduction in annual coverage -- in annual average CO2 emissions by 2030 is in line with IMO's strategy. While this vote is yet to become law, EU's actions put shipping industry and IMO under tremendous pressure. So shipping industry sees this as another source of complexity, global versus local environmental rules and regulations, but the industry is preparing for this to change. In a recent survey, shipping executives have identified decarbonization as the top impact issue other than COVID and lack of preparedness as a top concern. What Slide 11 here shows is a result of an IMO study that indicates that carbon emissions of shipping can shoot up by -- up to 250% by 2050 from population growth and economic growth, and shipping in that case would be contributing 17% to total global emissions, up from the current 2% to 3% levels, if nothing is done. So let's go to Slide 12. So we're now in a time of some uncertainty. The maritime transport ecosystem is very diverse. It's not just really large companies, but it's made up of companies of many different sizes with different applications, categories of ships and more importantly different financial means. And all of these companies will have to comply with the coming regulations. The coming changes add complexity to an already complex environment. Solutions have to be realistic, proven and ready for adoption, economics available and have to have demonstrated scale to be truly viable. There are multiple fuels in consumption, hydrogen, ammonia, methanol, and we have little ability to declare a winner at this point. The amount of work that goes into developing, maturing and scaling the technology and associated materials, lubricants, et cetera, for a given fuel is quite tremendous, and having to invest in a generation technology ownership without knowing which fuel is going to win presents a challenge to everyone. The level of sophistication required to maintain these increasingly complex technologies' ownership is also going to be high. And then there is the question of scaling the fueling infrastructure at all the ports, and it's no small accomplishment. In the meantime, you have to make a decision about assets that have a service life of, let's say, 10 to 30 to 40 years. You layer in other requirements such as efficiency-related improvements and things just get harder. So there's no panacea and no easy solutions available today, which brings us to Bloom's platform technology. I'm on Slide 13 now. Let's think about our current Bloom Energy product. Inside the Energy Server is the fuel cell and the stack, where the electrochemical reaction occurs using hydrogen gas and oxygen ions to produce electricity. The hydrogen source could be LNG as it is today or hydrogen from electrolysis or other sources, which could come from reformation off another hydrogen carrier such as ammonia. Marine transport presents an ideal opportunity to fully leverage this platform capability that our technology offers. So moving to Slide 14. The product that is available today, that we're manufacturing today and have that in operation has been in operation for several years, in fact, already meets the IMO target from 2040 using LNG as fuel today. It's already capable of reducing CO2 emission intensity by 40% over 2008 levels. This product can also run on a 50% blended hydrogen and LNG or natural gas -- or biogas, which further improves the emissions profile. With this fuel mix, our solution can achieve the IMO 2040 reduction target of CO2 emissions intensity by 70% from 2008 levels. We will also be demonstrating at the end of the year systems that can run on 100% hydrogen. This demonstration will be happening in Korea. This offers a zero-emission pathway with hydrogen as a fuel. Also note that we have announced our electrolyzer product that can generate green hydrogen through electrolysis. The key point here is that Bloom Energy's solution has the potential to offer practical and rapid decarbonization pathway that will ensure that shipowners will not face the risk of stranded assets. You can buy the LNG fuel cells today with an in-built assurance of meeting IMO emissions requirements, and the fuel cells can be upgraded to hydrogen power modules when the ship has the fuel available onboard. The availability of our flexible platform today presents a viable solution to the shipping decarbonization problem. Now the blended fuel approach that I talked about also presents a practical way to tune and optimize the right economics and emissions profile. We can go to Slide 15 now. Here, we're showing a ship with the fuel cells powered by LNG during its voyage. Let's say it's -- it arrives at a port that has a source of hydrogen. And by the way, hydrogen will be first available on port before it is put onboard a ship. So using the current generation of fuel cells, you can see the 50% blend of hydrogen and LNG to achieve the desired emissions profile. So a fuel-flexible platform is key to our go-to-market strategy. Another key element to our strategy is entering the market -- to enter the market is to form the right kinds of partnerships. So as Greg said, we've announced our partnership with Samsung in the motion vessel space, and Bloom Energy and Samsung share the same innovation DNA, and our work on integrating the marine fuel cell is moving forward quite well. And although our fuel cells are quite robust, the marine environment is unique. There are 2 key elements that we're working on to adapt our fuel cells to this unique marine environment. The first is marine-compliant safety features around having LNG onboard. The second is demonstrating tolerance for information and vibration that comes from a ship's motion when it's at sea. There will be other smaller modifications that may be required, but these are really the key ones, and we're working very closely with our partners on this. And this brings me to our last slide, which nets out our message that we have been delivering to the market. That is very concerned about regulatory environment and about having possession of stranded assets. So it is possible today to achieve immediate reductions with our platform, our technology, while the global infrastructure for sustainable fuels is under development. You can swap [ our ] power modules for hydrogen-powered modules when it's available onboard, but this is perhaps several years out. But today, we have a proven technology, a highest-efficiency technology, and we have delivered concrete and measurable results for all to see. So our message is being well received by our partners and by the industry. And note that the fact that we're bringing clean power to a sector that has -- that is using the dirtiest of fuels available and contributing significantly to warming the atmosphere and changing climate patterns, this makes us very excited to be contributing to solving the problem and making a dent in the emissions that come from this sector. And with that, that's sort of the end of my prepared talk, and we can open up to questions.

[Operator Instructions]

Preeti, as we pull the Q&A together: You talked a little bit about the concept of the stranded asset and that being very important in the industry. For someone like me who doesn't spend a lot of time in the shipping industry, can you expand a little bit on that concept of why that's so important?

Right. I think the key fact here is that when you're buying a ship, it has -- going to have -- it's going to have a life -- service life of 15 to 40 years. So if you specify a generation technology today, you are now stuck with a technology that may or may not meet the requirements as they're emerging, and that's essentially the challenge that the shipowners are facing today. And we've also heard that has -- that sort of uncertainty has led to a reduction in order placements while the industry is sort of waiting it out to understand where things are headed. So it's [ maybe too soon ].

Okay, [indiscernible]. Yes. Thank you.

Your first question comes from the line of Michael Weinstein from Credit Suisse.

Very interesting discussion. Can you like lay out the time line of exactly what -- when do you expect to have the first prototype that you actually built, launched? When will investors be able to see results of the partnership? And then also, what is the time line for production, I think, getting up to the 12 to 14 ships a year potential that was discussed earlier? And then beyond that, what's the potential for doing more ships than 14 a year?

Yes. Let me start on the time line, and then I'll pass it over to Preeti on the other applications more broadly. I think we had a slide in the front where we kind of gave a lay of the land. Listen, on the time line here and how to think about it, this is a large asset. I think we were just talking about the time frame in which the asset exists. We're doing a ton of technical work now with our partners on bringing out what the drawings are, understanding the engineering process of it. And really, probably, I think, on the slide that we showed on the Samsung, we expect to be presenting customer solutions in the 2022 time frame. As you think about, okay, when does that mean is do we start shipping units, when is -- when does it ramp from there is it's going to be -- part of it is going to be on the technical adoption. Part of it will be on when the customers want those assets on it. So I would say, from a time frame, it's not something that's going to impact our financials in the next 12, 24 months, in a way, expectation, but it is something that you build more -- you build over time, and you'd expect that to increase as we begin to establish it as a solution in the market. Preeti, do you want to handle on the other opportunities [ there ]?

Yes. Sure. Outside sort of the merchant class part of the market, we are also engaged in looking at the cruise industry as well. There is a tremendous amount of pressure to make these ships more green. And in that effort, we have been engaged with multiple parties to see how the technology integrates with [ the ship ]. So those are -- so not just the merchant ships but also on the cruise side of things.

And Greg, are you expecting to see similar gross margins for this joint venture that you would be seeing with your land-based sales without -- I don't know if you're willing to talk about ASPs with Samsung or if it's proprietary, but yes.

Yes. No. Listen, it's still early, right? I think in any of these situations the product itself will be essentially very similar. So it would have very similar cost aspects to it. I think as you think about pricing and the capture on that, it's a different market than what we're in today. And one of the things we'll be very curious on is the value creation for the customers and understanding where our value platform and value pricing fits in on that. We wouldn't be undertaking it as an opportunity if we didn't think it fit our long-term horizons, but where it bounces on either side versus our expectations, it's not clear yet, but I think it will be an attractive source of capital for us going forward.

Yes. I'll have one more question, and then I'll just let it go for other people, but what about retrofitting existing ships? I know that -- I mean, with the stranded asset problem being a concern in the industry, I'm wondering how difficult is it to actually go back to older ships and retrofit.

Yes. This one, I'll get back to Preeti on it. I know it is far easier to provide the solution with the introduction of the ship and as we build it. But Preeti, can you give us a sense of the scope of opportunity that's available on ships that are on the water today to use, utilize our technology?

So I would say we're still trying to determine how that would work. We certainly have interest from some large operators with some very large ships that are looking to decarbonize aggressively and are excited about retrofitting. But I suppose it depends on the category shift and if that sort of -- that -- the investment that retrofitting [ actually naturally takes ] is worth it. It all depends on the value of the ships and the category -- and the ship category we're talking about. But we're still in the middle of determining how that would actually work across the industry.

Your next question comes from the line of Stephen Byrd from Morgan Stanley.

I wanted to go to Slide 10 where you talk about the EU sort of emissions allowance system. And I wondered if you could just go back and touch on how to think about the benefit to economics from being included in the emissions trading system. I'm just not very familiar with how that works and how that might be beneficial here.

Sure. I mean -- yes.

So I think the point -- sorry. [indiscernible].

[ No. I was just passing it to you ], so go ahead...

Okay. So I think the point of how that changes -- EU making is -- making that declaration, how that changes the dynamic is that it's essentially there is an impatience that's being demonstrated by the EU suggesting that, well, the IMO needs to do something and needs to do something soon. And that's kind of how [ we're actually ] concerned that the severe -- what -- the severity and timing, acceleration of the timing of these targets might be increased because of the pressure that's coming from the EU. So the impact it has on the dynamic is what's concerning everybody. And this happened just this last month, so this is fairly new, but it's a declaration of their intent.

Understood. Okay. And then, I guess, just thinking about the physical operational requirements here, including you'd mentioned sort of tolerance from vibrations at sea. Could you just talk a little bit more about sort of solutions to ensure that the -- that your solution can really operate in any maritime condition that could be foreseen?

Yes. So it's a matter of -- so we do a lot of testing on vibration already. So this is not unfamiliar to us at all. It's a matter of -- and we're in the process of doing that. What is the location of the fuel cell on the ship? What sort of vibrations have been experienced in that location? What's the profile? And running the system with that profile. So it's standard work that we already do. It's just that we'll probably be looking at slightly different vibration profiles for our product. And we do this in conjunction with our partners and they essentially provide us with the information, and we work jointly with them, sharing results and that sort of thing.

Okay. Understood. Maybe just one last quick one on the cruise industry. It looks like an interesting opportunity. You've mentioned briefly sort of the opportunity set there. Is that -- are there kind of formal regulatory pressures there? Or is it more sort of the desire to be -- given the customer base, et cetera, desire to have "as clean as possible" propulsion for these ships?

I think it's coming from both places. Definitely the pressure from clients and customers and, of course, then having to meet the regulatory requirements. There is -- the cruise industry is purchasing a very large number of LNG fuel ships, so this becomes like a very natural fit for us in that -- in this environment.

Your next question comes from the line of Paul Coster from JPMorgan.

I've got 3 questions, actually. The first one is, I think, this solid oxide fuel cells are known for their kind of always-on property but not for their stop-and-start kind of speed. Perhaps you can talk about that a little bit. Second is the -- there's also alternative technologies out there. Presumably, PEM is the obvious one. How does solid oxide stack up against that and why is this the way forward? And then third is you talk about different sort of fuels and different fuel cells might require different mixes or different specifications of fuels. How do we sort of end up with an interoperable international system with a single fuel standard?

Yes. Actually I -- yes, go ahead, Preeti.

You can go ahead, Greg. [ Why don't you talk to that ]?

Yes. So I think we'll -- we can talk about the PEM versus solid oxide. I think as you see some of the applications that are out there, the different technologies that are presented are going to find themselves for different use cases. And as I think about the solid oxide and the high temperature there it lends itself very well to long-haul shipping, in keeping that temperature constant, versus maybe something on a short haul, a ferry or something else going back and forth with PEM. And I think you're starting to see that as different folks in the market are presenting those. I think the solid oxide as well presents an opportunity, and Preeti talked about this in the presentation, around its ability to act as a power plant while in port and export some of that power. So you're not in a position where you need to fire up or fire down the temperature of the fuel cell, which creates tremendous opportunity in applicability for our technology versus others. But for sure, this is -- this will be a big opportunity which technologies have lent themselves with the best use cases where I would see those use cases getting leveraged by the customers on that. And then I'll pass it back to Preeti, which -- who will, for sure, correct me on 1 or 2 of the things I said wrong there as well as how we think about the different sets of fuels.

Sure. So let's talk about [indiscernible] PEM. And as Greg said, all the technologies have a role to play. It's a broad set of applications here. We are focused on sort of the trans-ocean type applications. And from a fuel perspective, the benefits of our fuel cell technology, the ability to use LNG today and make an impact today and reduce emissions today provide the efficiency right away. And as the fuel set evolves and emerges and whoever the winner is, whichever fuel ends up being the winner, if it's hydrogen, we can certainly use hydrogen. If it's ammonia, reforming the ammonia and extracting hydrogen is how we would leverage that fuel as well. So we feel that we're offering the benefits of the flexible fuels platform that I don't think there's another technology that offers that to customers today.

[Operator Instructions] Your next question comes from the line of [ Eric Lee ] from Bank of America.

Appreciate all the detail today. Just a quick question here around just a follow-up on Paul's question there on competitive backdrop. Can you talk about what the typical process for procuring ships might look like? Would it be similar to how utility-scale projects are procured and, call it, the Korean market with competitive RFPs? And how do you view your SOFC maritime solution relative to others that are being developed, such as by Ballard and Doosan?

Preeti, I leave that competitive partnership with you.

Sure. So again, I think the PEM fuel cells are just [ doing a ] different set of fuels. And if we compare ourselves with other technologies, as I said in the beginning, the fact that we are, I would go as far as to say, the most stable, compatible platform that uses LNG, fuel cell platform that uses LNG, really is very important on how the technology selection -- is very important to technology selection. So it all boils down to efficiency, stability and maturity of the platform, and I think we deliver all of that, and that's our advantage in this market.

And then what about, Preeti, on the -- how will customers choose our product? What will be the process? I don't think it's along with the acquisition of the ship where they would choose our solution for that, correct?

Yes. So like -- and Greg, you mentioned this already, our intention this year is to essentially modernize the products and do design work and present designs in 2022. That's where the customers will start to express their interest in deploying this technology on the ships, and that's how the process starts.

Great.

Maybe just to clarify there. On the procurement process, is it just direct negotiations with the shipping company? Or would the shipping company put out like a request for proposal saying like, show us what you could provide based on these are -- this is what we're looking for, and then they'll pick from there? [ Or if ] you could just clarify there.

Yes. I -- our objective right now is just to get the technology ready and start meeting with customers. And the interest there -- all I can say is the interest there is very high, and that's -- that, I assume, is a very good thing.

Your next question comes from the line of Michael Weinstein from Credit Suisse.

Just a follow-up here. And this is a dumb question, but what about an alternative technology such as with gas turbines that might burn hydrogen? Does that just not meet up with the same efficiency levels -- energy efficiency levels with a fuel cell? Or how would that compete? How does that stack up?

So there is some amount of work that's being done to investigate installing turbines on ships and running hydrogen, 100% hydrogen through, these devices. That still, I would say I would guess, is still in development. So that's just -- yes, it's probably too early to say where that leaves us.

Okay. And are there -- is the -- is your -- is the JV between Bloom and Samsung exclusive? Can Bloom go ahead and do a similar JV with another shipbuilders? Is that possible?

So it's a joint development agreement. We expect to be working with Samsung over the next few years with that, and we've pledged to work with them over that period. But as the technology develops and we move forward, we won't be exclusive with Samsung over the long term. So listen, I'll wrap it. We'll let Preeti get back to the growth plan here and let everybody get back. Hopefully, this is helpful. I'll reach out and get some feedback if you have some about how we make these more valuable going forward. I'd like the opportunity to talk about the technology, talk about the customers and do that away from kind of the normal rhythm that we do. With that said: We've announced third quarter earnings will take place -- our earnings call will take place on Thursday, October 29. So I look forward to sharing the results at that time, and you'll have KR and myself for that. Listen, with closing on this, I would say on our effort for marine, I think it fits well in our strategy. It's a Bloom server as a platform. It's just a -- it's a application that we can use with our current technology. I like the industrial nature of it, the scale of it [indiscernible] and it's per-ship application but just on the enormous opportunity of the industry on it. And I really think it's going to be one of the growth accelerators going for -- going forward for us at attractive returns and very accretive to the company. So we're really excited about the opportunity. Preeti, thank you so much for taking the time. I know this was outside of your day job. And the slides you had and your presentation of it was very clear. So thank you for that. And with that, [ Suzanne ], we'll end the call. And thank you, everybody, for their time. Bye-bye.

Ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect.