PlugPower reports $72.0 million in revenues up76%

FirstQuarter 2021 Financials Recap

PlugPower [PLUG]shipped 1,308 GenDrive units and had revenue associated with six hydrogen infrastructure systems for the first quarter 2021 comparedto 825 GenDrive units and one hydrogen infrastructure system in the first quarter 2020. Net revenue for this quarter was $72.0 millioncompared to $40.8 million for the first quarter of 2020. Gross billings were $73.7 million this quarter compared to $43.0 million forthe first quarter of 2020.

Therewere a number of events in the first quarter 2021 that negatively affected operating results which should abate as we progress throughthe year.

Fuelgross margins were negatively impacted, reflecting costs associated with transitioning from one specific industrial gas company to anotherdue to its escalation of rates over the last several quarters. In addition, hydrogen supply was adversely affected from force-majeureevents which spilled over from the end of 2020 into Q1 of 2021 along with the impact from the Texas freeze in February which caused aspike in natural gas prices causing the price of hydrogen to escalate to historically high levels.

Duringthe second quarter of 2021, one of our largest industrial gas companies experienced another force-majeure event that lasted well beyondexpectation. This resulted in another meaningful spike in hydrogen pricing, as well as a spike in labor and transportation costs of hydrogenfuel, all the while Plug Power remained focused on serving our customers. The industry saw as much as 40 to 50 tons per day of hydrogencapacity curtailed during this force-majeure during Q2 of 2021. All of this capacity has now come back on-line, and more importantly,the industry has added another 35 tons per day, or ~15% increase, of highly resilient hydrogen capacity. In light of these dynamics,we see hydrogen prices declining meaningfully into the second half of 2021 from these unsustainably elevated levels seen in the firsthalf of the year. This should translate into improvement in our fuel segment margins in the second half of 2021 and into 2022.

Duringthe first quarter of 2021, the Company reported product gross margin of 38% despite experiencing unusually high freight costs of approximatelyincremental $2 million which stems largely from the global COVID-19 impact on the ports and transit providers. This will have an impacton Q2 2021 as well, but the costs should come down as Plug Power continues to diversify our supply chain to mitigate such risks, andthe transit industry resumes normalcy with increasing global COVID-19 vaccinations.

PlugPower completed the restatement of its previously issued financial statements in its Form 10-K for the year ended December 31, 2020,which it filed with the Securities and Exchange Commission on May 14, 2021 (the “2020 10-K”). As anticipated, the adjustmentsdid not impact the Company’s cash position, business operations or economics of commercial arrangements. As previously announced,the restatement did not result from any override of controls or misconduct. Plug Power has, and will continue to, expand its financeand accounting resources with expertise in these complex accounting issues that affect our financial statements. Additional informationand the impacts of the adjustment are included in the 2020 10-K. Given the restatement effort, the Company experienced higher than normalprofessional service expenses which will continue into Q2 2021 but which we expect will abate in Q3 2021.