Release Date: November 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Blink Charging Co (BLNK, Financial) reported a total revenue of $25.2 million for Q3 2024, with service revenue representing 35% of the total, indicating a strong service segment.
- The company achieved a gross margin of 36% in Q3 2024, surpassing their full-year target of 33%, showcasing effective cost management.
- Blink Charging Co (BLNK) reduced its cash burn by $3.6 million in Q3 2024, a 27% reduction compared to the same quarter last year, highlighting improved financial efficiency.
- The company saw a 126% year-over-year growth in energy disbursement, driven by increased demand and a higher number of deployed units.
- Blink Charging Co (BLNK) has a strong owner-operated model, with a 28% growth in owned and operated chargers, contributing significantly to service revenue growth.
Negative Points
- Total revenue for Q3 2024 was $25.2 million, a decrease from $43.4 million in the same period of 2023, indicating a decline in product sales.
- Product sales in Q3 2024 were $13.4 million, down from $35.1 million in Q3 2023, reflecting challenges in the product segment.
- The company reported a loss of $14 million in adjusted EBITDA for Q3 2024, compared to a loss of $11.7 million in the prior year period.
- Operating expenses in Q3 2024 were $97.3 million, although reduced from the previous year, they remain high, impacting profitability.
- Blink Charging Co (BLNK) adjusted its full-year revenue guidance to $125 million to $135 million, reflecting challenges in achieving higher sales targets.
Q & A Highlights
Q: Can you update on the mix of level two versus level three chargers and the impact of federal and state subsidies on sales?
A: In 2023, the mix was heavily weighted towards level three chargers due to automotive dealer infrastructure programs. In 2024, the focus shifted to level two chargers, which are more profitable for Blink. The company does not heavily rely on federal and state subsidies, with most revenue coming from non-governmental channels. - Michael Battaglia, Chief Operating Officer
Q: How do corporate partnerships, like those with Dunkin Donuts and Starbucks, impact your network development?
A: Blink's business development team targets strategic accounts in vertical markets such as retail and hospitality. The company aims to expand its existing customer base and pursue large-scale opportunities. The deployment of DC fast chargers in locations like Dunkin Donuts has shown promising results. - Michael Battaglia, Chief Operating Officer
Q: What are the key factors affecting cash burn and how is Blink managing its cash position?
A: Blink reduced its cash burn by $9 million in Q3 due to aggressive cost reduction measures, including a 37% reduction in compensation expenses and a 10% reduction in G&A expenses. The company has a strong cash position and does not anticipate needing to raise capital in the short term. - Michael Rama, Chief Financial Officer
Q: Can you explain the 100-million-pound SPV in the UK and its potential expansion to other regions?
A: The SPV is an off-balance sheet entity supporting the UK levy program, similar to the US NEVI program. It allows Blink to sell chargers into the SPV and recognize revenue. The company is evaluating similar opportunities in Europe and the US. - Michael Battaglia, Chief Operating Officer and Michael Rama, Chief Financial Officer
Q: What is the outlook for operating expenses and how should we view future cost management?
A: Operating expenses are expected to continue declining, with a planned $9 million annual OpEx savings. The company is executing cost-saving measures, including a 14% reduction in global personnel, and is focused on continuous improvement and efficiency. - Michael Rama, Chief Financial Officer
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
