Plug Power widens Q3 loss, comments on recent guidance revision

US hydrogen technology major Plug Power Inc (NASDAQ:PLUG) on Wednesday posted an expanded third-quarter (Q3) net loss on higher revenue with higher costs and operating expenses.

More specifically, the company’s top line increased to USD 188.6 million (EUR 188.7m) in July-September 2022 from USD 143.9 million a year earlier, driven by the core material handling market, new products and markets, and recent acquisitions.

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The gross margin reached a negative 24%, down 3% sequentially and 2% on the year, according to the company’s latest investor letter.

More financial details are available in the following table.

As recently reported, the company’s 2022 revenue is now seen to end up being 5% to 10% lower than the initially-projected range of USD 900 million-925 million because of some project delays driven by timing and broader supply chain issues.

On Wednesday, Plug made the following comment on this topic: “We believe it is important to note that the midpoint of our updated projection still reflects potential growth of nearly 70% year over year. We want to remind you that this is not a demand issue; this is largely a function of delays due to supply chain and timing of some large projects.”

Despite the revision of the 2022 guidance, Plug reaffirmed its 2023 forecast for revenue of USD 1.4 billion, reflecting substantial growth in the company’s applications and energy and electrolyser business. It also said it anticipates continued margin expansion throughout the year.

The respective 2026 and 2030 revenue targets of USD 5 billion and USD 20 billion were reiterated as well, as were those for an operating margin of 17% and 22%.

As per operating expenses, Plug expects OPEX to be reduced from 34% of sales in 2023 to the low teens in 2026 and beyond.

(USD 1 = EUR 1.000)