Blink Charging Co. Q3 FY2024 earnings call

• Continued execution on strategic priorities and initiatives. - Total company revenue $25.2M, service revenue $8.8M (35% of total). - Gross margin 36% in Q3, exceeding full-year 2024 target. - Contracted/sold/deployed 6,978 chargers globally, 17% Y/Y growth. - Energy disbursement 37 gigawatts in Q3 2024, 126% Y/Y growth. - Reduced cash burn by $3.6M in Q3 2024 (27% Y/Y) and $45M YTD (50%). - Owner-operated chargers grew 28% Y/Y to 6,442. - DC fast charger revenue up 544% Y/Y. - Adjusted full-year revenue guidance to $125M-$135M, maintaining gross margin target of ~33%, expecting positive adjusted EBITDA in H2 2025. - Collaborations with WEX and Create Energy, awarded $2M grant in Illinois, subsidiary Envoy's initiatives. - Cost reduction initiatives, including 14% global personnel count reduction expected by Q1 2025, annualized savings ~$9M. - Cooperative agreement with Stable Auto to use AI/ML for improved utilization and efficiencies.

Total company revenue in the third quarter of 2024 was $25.2 million, with service revenue representing $8.8 million or approximately 35% of total company revenue. Gross margin in the third quarter was 36%, significantly exceeding the full-year 2024 target guidance of 33%. During the third quarter, Blink contracted, sold, or deployed 6,978 chargers globally, a 17% year-over-year increase and a 70% sequential increase. The majority of growth came from L2 chargers built by Blink, which command higher margins. Energy disbursement in Q3 2024 was nearly 37 gigawatts, a 126% year-over-year increase from 16 gigawatts in Q3 2023. Sequentially, energy disbursement grew 12% from Q2 2024. As of September 30, Blink had 6,442 owned and operated chargers, a 28% year-over-year growth. Revenue generated by Blink owned and operated DC fast chargers went up 544% year-over-year, with a total of 1,278 DC fast chargers across networks.

• Adjusted full-year overall revenue guidance to $125 million to $135 million. - Maintaining gross margin target of approximately 33%. - Expecting positive adjusted EBITDA in the second half of 2025.

Q: Can you update on the mix of level two versus level three chargers sold and federal vs state subsidies?

A: Mix is healthier for Blink from a margin perspective with more L2 sales. Vast majority of revenue is from non-governmental channels; federal/state subsidies are not a major source.

Q: Talk about corporate partnerships and impact of political changes?

A: Sales team has a business development and territory sales structure targeting corporate partnerships. Blink doesn't heavily rely on federal/state subsidies; sales team targets vertical markets like C-stores.

Q: Cash situation and key things to look at for cash needs?

A: Burned ~$9M in Q3, down significantly. Cash burn reduced due to cost cuts in compensation (37% down) and G&A (10% down). Nice runway with cash on hand.

Q: Explain Axxeltrova 100-million-pound SPV and potential in other geographies?

A: SPV supports UK Levy program, similar to US NEVI program. Used to sell charging stations, recognize revenue, and network services. Evaluating other European and US opportunities.

Q: Outlook for the year and what drives delta between low and high end?

A: Delta concentrated in product sales. Services revenue increasing; product sales have opportunities to swing delta.

Q: OpEx level and expectations?

A: OpEx declined sequentially in Q3, mitigated by severance accruals. Expect continued declines with $9M annual OpEx savings from cost-cutting plan.

Q: Product margins and charger uptime?

A: 36% gross margin in Q3; aiming to maintain and expand. Uptime on Blink-owned chargers is excellent; for third-party chargers, focus on awareness and offering to take over.

Q: Difference in sales cycle between owner-operated and other delivery methods?

A: Owner-operated model has shorter sales cycle as Blink has complete control over installation and operation. Side host dynamics can affect lead time, but owner-operated model allows quicker revenue recognition.