However, the company did worse than that, posting a loss of 35 cents per share. Analysts had called for Plug Power to report a first-quarter 2023 earnings loss of 26 cents per share. Significant financial outlays seem to be taking a toll on Plug Power’s bottom line. Going forward, Plug Power’s shareholders should insist that the company’s management establish a specific action plan to cut costs. This bothers me, as I didn’t see much discussion about how Plug Power intends to reduce its expenditures in the company’s quarterly press release and conference call. What about the cost of revenue, though? From the year-earlier quarter to Q1 2023, Plug Power’s cost of revenue jumped 58.77% ($176.153 million to $279.682 million). Plug Power’s Escalating Costs Could Be Problematic for PLUG StockĪs mentioned earlier, Plug Power’s revenue increased 49%, and that’s impressive. Plug Power claims it’s positioned to “achieve significant revenue and continued margin expansion throughout the year.” Yet, it remains to be seen whether Plug Power’s margins can actually improve in 2023. Thus, just because Plug Power is reporting improvement in its sales doesn’t mean the company is converting those sales into strong profits. Notably, Plug Power’s gross margin declined 8% year over year to -33%. It’s perfectly fine for PLUG stock investors to celebrate the company’s sales acceleration. Still, I’m glad to give credit where it’s due. Having generated $210.29 million in revenue during the quarter, Plug Power beat the analyst consensus estimate, but only by 2.5%. That’s understandable, as Plug Power’s 49% revenue improvement from 2022’s first quarter to Q1 2023 is definitely impressive. In Plug Power’s first-quarter 2023 shareholder letter, the company emphasized its year-over-year top-line growth.
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