Plug Power Inc (NASDAQ:PLUG) posted breakthrough fourth-quarter earnings Thursday after the fuel-cell manufacturer signed on bigger-sized customers to break even, including Amazon.com Inc (NASDAQ:AMZN).
The company is likely to swing into profitability in 2019 after revenue grew to $184.8 million in 2018, a 42% jump from the previous year’s $103.26 million in revenue.
The Latham, New York, company is projecting revenue between $235 million and $245 million in 2019.
READ: Plug Power says it will swing into profitability in 2019 as it signs on large customers
Plug Power is an architect of hydrogen and fuel cell technology. It makes fuel cells used to power forklifts in warehouses and distribution centers.
With its range of hydrogen and fuel cell products, Plug Power replaces lead-acid batteries to power electric vehicles, such as the forklifts customers use in distribution centers.
“As we close 2018, we see continued traction in the material handling market,” said Plug Power CEO Andy Marsh in a letter to shareholders. “We expect four major business announcements in 2019 in varied adjacent markets, affirming our confidence with 2019 forecasts for $235 to $245 million in gross billings and adjusted EBITDA positive in 2019.”
Plug Power delivered its products to 15 different customers including Amazon.com Inc, Walmart Inc (NYSE:WMT), Whole Foods and BMW AG (OTCMKTS:BAMXF).
For the fourth quarter of 2018, the company broke even. Plug Power needs $60 million in revenue a quarter to break even, and earlier indicated that it expects to break even for all of 2019 and to be positive from the third quarter onward.
Fuel cell sales
The company said it delivered fuel-cell systems to power over 1,900 zero-emission electric vehicles.
For the quarter ended December 2018, the company posted an adjusted loss of $0.07 per share on revenue of $62.1 million. The consensus estimate was a loss of $0.05 per share on revenue of $58.8 million.
“Plug Power’s record-setting quarter is a result of technical leadership and continued new product deployment,” said Marsh.
The CEO says he has never been more ‘optimistic about the possibilities’ as fuel cell technology gains traction.
Contact Uttara Choudhury at uttara@proactiveinvestors.com
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