Plug Power Inc. (PLUG) Earnings Call Transcript & Summary

Greetings and welcome to Plug Power's January 2020 Business Update Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Teal Hoyos, Director of Marketing Communications. Please go ahead.

Thank you. Good morning, and welcome to the Plug Power 2020 Business Update Conference Call. This call will include forward-looking statements. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. We believe that it is important to communicate our future expectations to investors. However, investors are cautioned not to unduly rely on forward-looking statements because they involve risks and uncertainties, and actual results may differ materially from those discussed as a result of various factors, including, but not limited to, risks and uncertainties discussed under item 1A Risk Factors in our annual report on Form 10-K for the fiscal year ending December 31, 2019, as well as other reports we file from time to time with the SEC. These forward-looking statements speak only as of the day on which they were made, and we do not undertake or intend to update any forward-looking statements after this call. At this point, I would like to turn the call over to Plug Power's CEO, Andy Marsh.

Good morning, and thank you for joining our business update call. We host this call annually to provide investors a summary of our previous year performance and our projections for the upcoming year. Just a reminder of what this call is not, it's not our fourth quarter and year-end earning conference call. That call will be held in early March. And before I go into my detailed script, I'd just like to reflect on the markets over the past year. There's really been strong tailwinds in the hydrogen industry. When I look at electrification of vehicles and power, it's really not just about the quest for a greener footprint for our customers, it's really about long term, lower cost and more reliable units because fundamentally, electrification brings that to many, many applications. And fuel cells have a big place. McKinsey believes that in time, 18% of world energy comes from hydrogen. In certain apps today, fuel cells make a lot of sense, especially versus batteries. When you start thinking about applications like taxis and commercial vehicles and even large-scale backup power, fuel cells, I believe, are the right solution versus batteries because of many of the attributes of range, fast fueling, and as well as higher power densities. So let's now get into meat. As I mentioned, I've hosted this call for a half dozen year, and this is by far the best call we'll ever have, but next year will actually be better. So let's move on to the results. In the fourth quarter, we had between $93 million to $95 million in gross billings. This was our biggest quarter-to-date by over 50%. We shipped over 2,500 GenDrive units and started construction of 8 hydrogen stations. For the year, we'll beat our public goal of $235 million in gross billing. And first, we'll be EBITDA-positive for the complete year for the company. And if you remember now, that 4, 5 quarters in a row, we've been EBITDA-positive. And let me just reflect on the journey. We create the first market for hydrogen fuel cells and are renowned in the industry for this accomplishment. I was with 80 CEOs last week at the Hydrogen Council in Brussels. And our success is well understood and appreciated by multi-multibillion-dollar companies. Just a few reminders. We've shipped over 32,000 units to date. We've done over 23 million fuelings and use more fuel daily than anyone else in the world. We have strong customer relationships with blue-chip customers like Walmart, Amazon, Home Depot, DHL and BMW. We're vertically integrated, have established a broad list of capabilities from MEA and stack manufacturing. By the way, more than 99% of our units shipped in the fourth quarter use Plug Power stacks to our service business that leverages the Internet of Things and artificial intelligence. And of course, having built over 90 hydrogen fueling stations. This work positions us to expand beyond material handling into on-road applications, ground support equipment at airports, aerial applications and large-scale stationary products. So going back to 2019, we had some major successes that are critical to our future. This includes our strategic relationship with ENGIE, our win with DHL and StreetScooter for on-road vehicles, $172 million contract with one of our large anchor customers. And today, we'll be discussing a third anchor customer who will be deploying 12 sites for -- in 2020. So let me tell you a little bit about each one. ENGIE is a global energy provider with a sales and service network in over 50 countries. They are committed to having a zero carbon footprint and have sold many of their fuel -- fossil fuel assets. We are presently building a hydrogen fueling station with ENGIE in South Africa and are engaged in material handling projects with them in South America, where they'll be responsible for aftermarket service. The work with ENGIE is aligned with our 5-year plan to grow the material handling sector $700 million by leveraging partnerships to reach customers beyond our targeted anchor customers. You'll be hearing more about partnerships in the coming years. We also won an on-road vehicle project with DHL and StreetScooter. DHL presented at the Plug Power Symposium in September and highlighted the value of fuel cells for powering on-road commercial delivery vehicles. Achim Jüchter of DHL highlighted a few fuel cell electric vehicle advantages versus battery electric vehicles. The range advantage of fuel cell versus batteries is almost twice the distance while units can be fueled 8 to 10x faster, a distinct advantage in asset-intense applications. Shown on this slide is a really important graph that compares payload and range for fuel cell electric vehicles versus batteries for delivery vans. At 200 kilometers, the battery electric vehicles do not meet the minimum requirements for delivery truck for payload. The red line shown in the graph is not -- is where it's not economically valuable -- viable because of weight and size of batteries. Fuel cell electric vehicles on the other hand can provide over 500 kilometers of range, a distinct advantage. This graph wasn't generated by Plug Power. It was presented by DHL, and I've seen similar graphs from other OEMs and end customers. And finally, DHL highlighted, fuel cell electric vehicles are more flexible because daily they cannot be sure if a vehicle would require to go 50 kilometers or 500 kilometers. Another big win in the past year was with one of our anchor customers. With this customer, Plug Power performed almost flawlessly during the holiday season. And we were rewarded with 30 sites for the next 2 years that will generate $172 million in revenue. This is a big win and a testimony to our technology and value proposition. We continue to explore opportunities for the customers beyond material handling. From ground support equipment in airports to on-road vehicles, this was a great win. And today, I'd like to announce our third anchor customer. This customer has been a Plug Power customer for 4 years. We have had a strong performance, especially during the recent holiday season. This year, we'll be deploying 12 sites with 2,000 GenDrive units, which will generate over $50 million in revenue. Over the coming year, we expect to deploy fuel cells at over 80 sites with this customer. We're providing more -- we will provide more details about this deal soon. But you know this isn't everything. With our first anchor customer, Walmart, we will be deploying 2,500 GenDrives this year at 12 sites in North America. This opportunity will generate over $60 million in revenue. No one can doubt the maturity and the value of our products when you consider 3 of the largest retailers in the United States will be using our products to run a good deal of their operations. And finally, we're driven to continually reduce our costs, including fuel cell products, which we have experienced over 70% cost savings, service cost and hydrogen cost. For example, our 3-year supply agreement with United Hydrogen provides us a source of low-cost hydrogen and help us increase our green content. We're projecting using over 80 tons of hydrogen in 2024 and have made a commitment to achieve 50% green content. This agreement is beneficial to that journey. Now on to 2020. Our financial targets are gross billings of over $300 million, a 25% growth over 2019, adjusted EBITDA of $20 million, a $20 million improvement over our 2019 goal. Usually in this call in January, I tell you, we have clear visibility to 65% to 70% of our year. This year that number is over 90%. We believe there is upside, and we'll keep investors updated during the year. Like 2019, we will make it sure we hit our street commitments and are confident that our projections shown on this slide for the upcoming year will be met. On the next slide, I'd just like to reiterate our path to $1 billion in gross billings that was presented at Plug Power Symposium in September. We're projecting $1 billion, as I mentioned, in gross billing in 2024 with 70% coming from our traditional material handling business. We also see substantial growth in stationary markets and on-road vehicles. Overall, this will allow us to achieve $200 million in EBITDA and $170 million in operating income. Investors should take comfort in the build-out of our material handling business this year with the addition of a third anchor customer. We are executing on the plan that was outlined in our 5-year plan. Our metal stack with industry-leading power density and weight using our in-house MEAs well positions Plug Power to be involved in large-scale stationary programs and on-road vehicles. We have stacks and systems being tested at leading OEMs and end customers for vehicles. Our management team has deep experience developing and selling products for data center applications, and we were leveraging that expertise as we pursue this market. We're engaged in port vehicles like Málaga, Hannover Airport. We ship stacks for aerial applications and are continuing to explore multiple applications, leveraging our ProGen modules. We believe stationery, power -- and power -- electric power and multitude of applications will allow us to build a $300 million business in this sector by 2024. To support this activity and continue to be a leader in the development of a hydrogen economy, Plug will continue to pursue hydrogen solutions on our own and with partners. So the bottom line. In 2019, we met our commitment for gross billings, EBITDA and have had 4 major announcements. Coupled in 2020, we'll achieve $300 million in gross billings and $20 million in EBITDA. And today, and this is extraordinary, we have 90% visibility with upside for the coming year. And finally, we are executing on our goal to be a leader in the hydrogen economy achieving $1 billion in revenue in 2024, $200 million in EBITDA and $170 million in operating income. Paul and I are now available to answer your questions.

[Operator Instructions] Our first question today comes from Chris Van Horn of B. Riley FBR.

On the $172 million order, I was just wondering if you could get into a little bit of the timing of that? And then you mentioned the on-road opportunity. Does that -- is that additional to the $172 million or is that sort of part of the plan as well?

So Chris, about 40%, I'm doing my math real quick, of the revenue will be this year. But I also would like to add, we are looking at other opportunities with that same customer for other sites this year, which could increase that number. As far as the on-road vehicles, we're working on trials for a number of vehicles of different class types with that customer. What's really interesting is if you look at what we've done with some of our customers now, you could actually drive across the United States and stop at their hydrogen fueling stations at the distribution center and go all the way from Maine to California. We have a little hole in, say, West Texas, but you could get across the country. And I think that when you take a step back, you could take a Class VI or Class VIII trucks and people talk about building a hydrogen network. We've actually done it. And I've heard people say to me when I was at the Hydrogen Council last week that there are -- very few people know there is a hydrogen network in the U.S. for commercial vehicles and Plug has built it. Though that's not really included in the plan, to answer your question directly, Chris. But it's really -- I wouldn't say I did it deliberately, but we at Plug have actually done it.

Got it. Okay. Great. And then on the new -- the third large order here, it sounds like Phase 1, you've got a lot of visibility there. Is Phase 2 sort of part of that award? Or is that something you're just -- it's in development?

I would say, Chris, just like my 2 other anchor customers, I have a clear vision of what's going to happen in the next 3 to 5 years. And that Phase 2 is really part of that clear vision of, okay, we start here this year. What are your plans for the next 3 years. And their plans are to use fuel cells at those sites.

Okay. Great. Great. And then lastly for me, profitability for this year looks like it's going to come in better than consensus and our expectations. What are the main drivers? Is it a volume phenomenon? Is it price mix, maybe a little bit more recurring revenue this year? Is there some OpEx controls? Is it all of the above? Any sort of detail there would be great.

I will let Mr. Middleton answer that one.

Yes. Well, I think it is all of the above. I mean, I think, we have proven already we make a really strong margin profile on equipment. And as we continue to ramp the business and sell more programs that obviously is incredibly impactful. But across all the product lines, I mean, we continue to invest and see cost reduction across the board. And as I've touted for a few years, we have continued to enjoy strong OpEx leverage on the base OpEx investment that we used to run this business. And so it is -- we do see positive results in 2019. And as we've talked in the investor update, in September and then today, we're going to continue to see that nice margin progression over the next near term.

The next question is from Eric Stine of Craig-Hallum.

So I just wanted to just touch on this new customer announcement and just to double-check here. I know last year, you were targeting "mega customer." I guess, is this that mega customer that you're now able to give more details in the same customer that you had talked about at the symposium? If not, is that mega customer still there and kind of fourth in the queue?

This is the mega customer, Chris. This is the mega customer for this year, Eric.

This is what I've been talking about.

Okay. No, that's great. And then, I guess, I'm curious, the one thing that caught my eye about the big logistics customer is that they weren't -- they're not dipping their toe in the water and doing 1 or 2 sites to see if this works for them, they're kind of going all in. So would love to know, I mean, kind of how you're seeing things play out with the rest of your customers. When you approach customers, are you seeing that time from initial conversation too or someone moves like this company has, how -- what you're seeing today and maybe how that's changed over the last year or 2?

Sure. And let me take a step back, Eric. We have had -- we've done 2 sites with this customer. So they understand the technology. So as I mentioned in my remarks, it's -- the first site we did with them was probably 4 years ago. So it's not instantaneous. That being said, the momentum of the business has increased rapidly. We are -- we have other large customers that, if you remember from the symposium, Eric, I was saying, we need to add one more in 2020 this year and one more in 2021. But I can tell you, for example, we announced Chrysler in the fourth quarter. And the momentum there, the deal there was under 6, 7 months from initial engagement to closing our first good-sized order. And I see that continuing to evolve where the speed is becoming quicker. I think people are -- look, you stare at the world and you see how much Walmart's done, how much Amazon done -- has done. They're the leaders. People get it, especially when you get into the executive suites. And that, I think, really has helped us with -- help us move the business forward. And as I said, I mean, we're going out here with numbers which are kind of -- which are guaranteed numbers, but I do see considerable upside in material handling and other applications during the coming year. It's actually the first time, Eric, that I'm sitting on a call like this and from -- I'm not worried about tactical execution in 2020 as a CEO. Of course, I'm worried about, but it's not top of my mind. What's really top of my mind is our ability to accelerate our business. We know how to do this year. We can do -- we're obviously striving to do better, but we've never been in this position where I'm not sweating about the coming year.

Yes. Okay. Good. Well, I guess, last one from me, and in keeping with what you just said is, I know that the hydrogen strategy is a big part of your outlook going forward and you have talked about a partnership or tie-up of some kind to be determined with an industrial gas company. I would assume that's still in the plans, but maybe just an update on where things stand towards that goal?

I can say, Eric, that when I talk about what I'm working with on the team, hydrogen's in the top 2 and it's probably 1 and 2. And I think we're looking at a wide range of activities. And I think I mentioned activities where we do ourselves and activities that we do with partners. And we have a list of 3 or 4 serious discussions and activities going on. And I am sure we'll be talking more about during the coming year. Look, we're using 23 tons a day. Today, we're talking about, we're going to have at least 35 more sites in operation by year-end. That's another 7 to 10 tons of hydrogen a day. So we're really accelerating our hydrogen activity and, obviously, just like with United, we want to be able to leverage that to improve our gross margin. So there's a lot going on.

The next question is from Colin Rusch of Oppenheimer.

Can you talk a little bit about the diversification of the customer base here? Obviously, you've got some big anchor customers. But as you go forward, I'd love to hear a little bit more about the pipeline and what you're seeing in terms of new folks coming in and starting to get involved with hydrogen platform.

Sure. The first item, Colin, I'm glad we've reached that point. But 4 years ago, nobody thought I could get any customers. And now I have 3 large customers. And when we look at the pipeline, I'm going to say there was [ portable ] pipeline. So in the material handling segment, we've -- over the past 3, 4 months, I have expanded the sales force. And I would say that there is a great push on 4 or 5 additional anchor customers where we've been pushing. There is also -- we've had more engagement on developing, I'll say, alternative sales channels to reach smaller towns. And to leverage, if you take in areas like Chicago and around Dayton, Ohio, I have fairly high concentration now. And we have some real push to reach out to smaller customers and leverage the hydrogen we have already available in those areas. Think about it as depots. And for example, we have the Southern network in Alabama and Mississippi, and we actually serve that from one -- we provide hydrogen actually from one of our large customers. And we're looking to do that across the board. Where I didn't touch on is Europe, and there is a good deal push, especially in Germany and France. And we'll be doing more sites, more units with people like BMW and Daimler this year in Germany. We have good activity going on with Carrefour and IKEA to expand. So some of the customers that we have 1 or 2 units with we're looking for large expansion. With the new markets, I mentioned in the talk, we've -- there is probably 5 or 6 customers that we've been seeding units with. As I mentioned, one of those customers is one of our large customers today. And we do expect that there can be considerable upside. I'm also -- because it really fits with what we've done with GenFuel, we're looking -- we've done this site and we're doing the site in South Africa with ENGIE, where we're building hydrogen stations. And when I start looking at this, especially the commercial market for hydrogen and building stations, the products that we built for -- the products we built for Walmart for fueling their infrastructure, that infrastructure actually fits quite well into ports and other applications without us having to really modify our units significantly. And so -- how -- it's kind of how do you use the sales force to sell more of what you have.

Right. Okay. And then just on the hydrogen side, can you talk about where you're at in terms of new initiatives on driving costs lower? Obviously, that's going to be a big driver as you move into over-the-road market. I'd love to hear expectations around infrastructure build-out and your ability to drive those costs down to levels that enable adoption in a more active way.

Yes. So 2 items. One is infrastructure. And like we've seen with equipment, we're on about a 25% learning curve that every time we doubled the number of units in the field, we're able to drop the cost. There is still significant room to drive down infrastructure. At the Hydrogen Council meeting, the industry has set fairly aggressive targets on reducing the cost of hydrogen itself. And I would probably put it into 2 main categories that we're looking at. As we mentioned, partnerships and relationships with liquid hydrogen providers, which is really the best solution today for our customers who are large-scale. The second is looking at on site or clusters using electrolyzers. And we have a good deal of work going on in that area. When you get to electrical costs of, say, $0.04 a kilowatt-hours, electrolyzers are probably the lowest cost source of hydrogen. And you probably don't want to be behind the meter. But if there's ways you can get on the right side of the meter and distribute it within a 50- to 100-mile range, we believe that makes a good deal of sense. And it also aligns with our goal to have very, very low CI hydrogen. We're seeing that as a demand from customers, where they'll be willing to pay a little more, not a lot more, for green hydrogen as they strive to meet their sustainability goals. So we have work going on our own. We have work going on with partners. Now we're even looking at items like renewable natural gas. So we have a broad spectrum of activities going on with hydrogen.

Great. And then the final one from me is just really about cost of capital reduction. Obviously, you did a capital raise late last year, and we assume that you're going to be able to use some of that capital go back to some of your partners and start figuring out how to reduce some of the carrying cost on various pieces in various notes. So can you just give us an update in terms of where you're at in that and your thought process on being able to lower the overall cost of capital?

Yes. Well, I think your point is spot on. And coupled with that is positive results. So the fact that Plug has now crossed a milestone in breaking into breakeven to positive EBITDAs and projecting that this year we're going to be moving in directionally north in the right way. That gets investors and the debt providers excited. And I can tell you, I've had more inbound interest in the last 3 to 4 months as we cross this hurdle and move into next year with a range of participants and interesting structures that we're going to be focused doing exactly what you said. So it is one of my top priorities. It is one of the things that will continue to enable us to grow faster and it's something that I think you'll see more on in the near term than more so than the mid- to later term.

The next question is from Amit Dayal of H.C. Wainwright.

In the context of your outlook for 2024, the $1 billion in revenue number relative to the 2019 revenue target you are expecting. Backing into those numbers, it looks like we need around 30%-plus CAGR-type growth. And we're guiding for 25%. So we're not too far off. I just want to understand how this revenue cadence over the next 4 to 5 years plays out.

So as I mentioned, Amit, I am looking at this year and have committed numbers to the street for 2020 year today that our confidence level is very high. We do believe there is upside for this year. And look, we also -- if you take a step back, most of this growth this year is within material handling. And when I look at material handling to get where we need to be, I think we need to be at 27% growth. So that's a reasonable -- we're well within that target. And the new markets are beginning to develop. So I think that question's probably one that will even be clearer as we approach midyear. As I mentioned earlier in the call, we're also deeply engaged with many other potential anchor customers and exploring other channels. We have 90% of it this year in the bag. Usually, it's 65% to 70%. So I'm comfortable with our projections and our growth rate.

Understood. And then as Plug has taken on a lot of the value chain related development work for getting fuel cells at hydrogen, the adoption that it is seeing now. As this industry expands, do you continue to see carrying all this weight? Or how do you see sort of unburdening yourselves and trying to focus on specializing maybe in delivering certain aspects of this whole -- this new energy segment that is emerging? You've done a lot already, but should we expect you to specialize going forward? Or continue to be present across all aspects of the delivery of hydrogen into the end customers?

I would say this and that's a real good question, Amit. And I'm going to give you 2 examples. And I think with time, it will evolve. One is that, like Tesla, and I think a lot of what we're doing here is a lot like Tesla. Tesla had to figure out the charging stations, how to deliver a complete solution to the customers, how to disrupt the channels. And I actually think the winner in the next generation of hydrogen and fuel cells may not be the big names. I mean just like in solar, big winner in solar wasn't GE. It was lots of other people. And I think that for the foreseeable future to really keep this market accelerating, it's going to be for people like Plug to provide end-to-end solutions. And there may be times where, obviously, there will be times we partner, but I don't see that changing dramatically. I went through the wireless world, too, in my early professional career. And you know at the early days, you had to provide everything from the cellphone to the infrastructure to the base station to the service. And of course, those models evolved a bit in time. I got to tell you, for the next -- look, I'm not -- I think what we've done is very, very special, and that we'll be providing the turnkey solution and capabilities for a long time. And I think other companies, and I see it already, will be tapping into our expertise for certain aspects of their business. Really good question, though, really interesting one. Really interesting.

With respect to ENGIE, should we view these guys as helping you develop the infrastructure and the value chain? Or are they just another channel bringing additional customers to you?

Yes. And I guess, it kind of feels into your second question a bit. I would view them as bringing customers to us, but also providing aftermarket service. I mean I don't want to build a -- this is kind of a little bit feeds into your last question. I don't want to build a service network in South Africa or a service network in Chile. It doesn't -- economically, that doesn't make sense. But many of us worked with ENGIE in the telecom business and their service network, and they were outstanding. They have broad customer reach. They have deep financial pockets where they pay us upfront. We don't have to worry about any financing. So I think they're a wonderful partner on all those angles, and they care about hydrogen.

[Operator Instructions] Our next question is from Craig Irwin of Roth Capital Partners.

Andy, you dropped some breadcrumbs on the call earlier about the $172 million customer. So I just want to make sure that I heard clearly what I think I heard. You've done 2 projects with them. And the most recent project was executed in 2016, and their satisfaction from those projects is what's led to this $172 million order or you've done 2 projects, and the first was done in 2016? Can you probably...

I obviously confused you, Craig. So let me try and go through it. So today, I talked about the $172 million customer and that customer is 2-year commitment. And that's someone that I've done many, many, many sites with. Then I talked about the new anchor customer, which I -- which is the one, which I mentioned is approximately $50 million this year, where we'll be doing 12 sites with approximately 2,000 units. And that's correct, we did our first site with them in 2016. I hope that clarifies it.

That does. So then I would expect a lot more business to come from Home Depot with Lowe's now in the mix. So congratulations. Those are some monster customers that you're cashing just as prestigious and important as Walmart and Amazon have been for the company. So congratulations.

Thank you, Craig.

So just looking at the guidance for this year, right? You say you have 90% visibility. With -- you made your numbers for this year, right? You've guided us to $235 million a year ago, and that's what you did. You're guiding us to north of $300 million this year. Is there anything that could maybe drive positive or negative deltas versus that 25% growth rate officially your guidance? Are you chasing any large material contracts that could give us a revenue upside that you could fit into the production schedule before the end of 2020?

So the answer to that, Craig, is absolutely -- and let's talk about the downside risk. And I think most of the downside risk would be associated with macroeconomic conditions. If there was a dramatic change in the economy, it's going to impact everyone. We don't see any signs of that. But we shouldn't -- I can't be naive enough to think that something couldn't happen. But the warning signs, certainly, we're not feeling them. And fortunately, we're in a business that's new and growing. And usually, you can weather those storms a little easier. When I think about the upside, look, if I -- we do have larger -- we do have lots of activities going on both in material handling, which I would think there is a good deal of potential that it could be higher and that's why during the call I kind of sprinkled in a couple of times, clear visibility, 90%. Last year at this time when we had the call, it was 70%. So we're working on more extensive sales force, more extensive deals, more mature technology. I wouldn't be doing my job if I wasn't pushing the upside. And I think on the nonmaterial handling, I do think there is upside, especially with large scale, I'll call, projects at the moment, not as large as anything that we would do with Walmart, but there is activity there. And look, we're driving internally to do much better, but we didn't want to mislead. We want people to know and not have to think about what they're going to get. Our confidence level in the $300 million is very, very high.

Excellent. And then last question, if I may. Hydrogen has been one of the areas where everybody's watching very closely for the potential improvement to margins if you're able to improve the efficiency of procurement and distribution for your customer base. Can you maybe talk through what you're doing on the hydrogen side to explore lower-cost hydrogen alternatives? And can you maybe share with us a little bit about what's factored in your guidance and if this has potential to maybe help EBITDA in the back end of 2020?

Good question. So we are looking to expand, one, our partnerships with IGCs today in a way that since we are quite honestly creating the demand and creating the channels that how can we view this as activities we own together instead of just being a customer of those activities. And so we do have a good deal of activity going on there. We're also well, well aware of the need for greener hydrogen. And you know Sanjay Shrestha, our Chief Strategy Officer, quite well. And certainly, we're thinking about how to partner with solar companies, electrolyzer companies and start distributing lower cost or cost-effective green hydrogen which would help our margins. Our customers, Fortune 100 companies really do care about their carbon footprint as well as a company like Plug. Yesterday, we started a team and activity to really help reduce our green -- make our footprint greener. So there is -- and it is an area that we really hope to be sharing more about during the coming year.

Excellent. Well, we'll look forward to the progress and congratulations on strong results for 2019 and a great outlook for 2020.

Thank you, Craig.

There are no additional questions at this time. I'd like to turn the call back to Andy Marsh for closing remarks.

Well, I'd just like to thank everyone. And I'll kind of reiterate, 2019 was really a breakout year for Plug Power, EBITDA-positive for the year, $235-plus million in gross billings, but it really is just the beginning. Our goal is not to be a small entity, a couple of billion-dollar business. We like our $1 billion goal for 2024, but we're thinking much bigger. We think we can be a major player, and we will be in establishing the hydrogen economy in a world where 18% of world's energy comes from hydrogen. So thank you, everyone. I appreciate the time today.

This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.