Blink Charging (BLNK) 9 May 232023 Q1 Earnings call transcript

Good afternoon. And welcome to the Blink Charging First Quarter 2023 Earnings Conference Call. All participants are in a listen-only mode. [Operator instructions]

At this time I like to turn the presentation over to Vitalie Stelea, Vice President of Investor Relations. you. to Over

Welcome Jenny. First XXXX Quarter Thank to Call. Earnings you, Blink's

Brendan today, Financial and call the Jones, Officer. we Chief On Rama, have President Michael CEO; and

The appendix of are earnings deck. references. comparable discussions GAAP our include the U.S. the to most These in measures today will reconciled non-GAAP

You the website. with deck the earnings of our relations may and Blink’s other investor find materials important along rest content on

factors Actual that also the include deck. cause Page The forward-looking results expectations. may comparisons all may our stated. on differ otherwise year-over-year. discussion Unless to Today’s most first results about significant could actual included earnings differ those from statements noted, are quarter are XXXX of X

at and investor Now, ROTH X participate Morgan Blink the also the Technology London XX investor of for relations June; XX; and time will Needham follow chat Annual on our future. Xth events Charging June; meeting and calendar, Conference additional Conference Renewables of same and regarding announcements the investor JP X Automotive June in on on on Cowen XX. the in Power Please the the Conference the and MKM XX the Energy, fireside Sustainability Week

President call ahead will and I Brendan Please And now, CEO, Charging. over Brendan. to Blink turn the of Jones, go

Sure, us. thanks, thank And Vitalie. joining And good you for afternoon everyone.

like I before a say to few would and dive things. I So, into results, our accomplishments first XXXX financial quarter

and and incredible customers, Charging. clients, able CEO been of First, I hosts, team for we all Blink President and of our well be accomplish as our am Blink that of the to to am as shareholders as our at employees. also honored I appointed proud our the have

work Farkas have management time with to is Board thank shape company for the to forward-thinking Blink him forward as CEO. become and Founder His team EV like to in our future. on helped and having industry. our Michael company the also we would and and is the leader our today, and his We continue it to a commitment a that serving charging As look Michael in

with call. And that, let’s get on with the earnings

now is Slide like we company the allow our fully manufacturing, offer Blink quick to and capabilities. the if owners, We So, U.S. to I market property go charging available refresher control only, models most X, design, we on provide our in the integrated network flexible and today. would everybody Blink own services. a to to business

Our products owners commercial of have auto been fleet OEMs, EV estate designed companies, needs real charging managers. property meet municipalities, to the drivers, and

choice chargers operate diverse course, We Blink chargers, to options and we and hardware where the they We our installation. offer the of and host of models. capital with We business for own we provide split hybrid provide the provides revenue and and sell a and software services hosts.

and vertical our space is Blink integration and what – software flexibility Our the differentiates EV our from hardware software today. advanced of competitors in

transition to some X. let’s Now Slide highlights on

first to with revenue Our first compared when $XX.X million quarter to total XXX% of XXXX. quarter increased the

impressive XXX%. increased recurring our an nature, And fees, network Now, importantly, by which the increased are revenue service in XXX%. by very

was of really I’ll so increase we developments. that’s that these XXX%. a Now it big excited again, very number, say are And positive about an

compared sold represents deployed and of of X,XXX first increase an first or In contracted, the chargers, XXX% quarter we quarter, that the XXXX. to

And which chargers all the the not gigawatts were energy Blink associated, this level chargers most a have energy Blink in provided key of across X, Additionally, and that dispersed all of of thing doing increases business. XX demand cost Charging globally. they QX is Level networks did of

a of to subsidiary, Jersey share million ago, grant announced we by electric week Mobility. EV we to services announced our $X charging that a vehicles in Subsequent was and the Blink in communities. Blink of quarter, awarded underserved New the acquisition believe, the ride a implement Previously, State the company for car first fact, by close an over Envoy, of sharing I little

of pleased forward. announcements the as to synergy more are we acquisition welcome We Envoy into this and we’ll Blank family, move this about Mobility have

If March XX, the contract by Postal and to Slide on we up jump services to network XX,XXX charging with X others. the announced on now, IDIQ EV and we stations provide Service States an Blink United provided

process network, the and one is date, We but fleet services only are and chargers, in not the Blink this rigorous. very talented proud successful North our to a testament This contract also contracts, to the team. products and win largest selection of our To was of extremely America, is team. our

the collaboration continued other we We April first shipped have in and with States the Post United government entities. to order already and look forward Office

gears shift X. let’s Slide to now So,

are You portfolio we of on charging will products transition unique to more for charging our providing capitalize – and them. business to EVs demand vehicles to exponential chargers date expected growth hit and power electric ideally to meet comprehensive and as more models forecasted and for that to accelerating, see approach the the EVs EV growth solution, with all EV road. is The situated our and preferences, the and flexible

look let’s X. Now Slide at

for XX has contracted, XX,XXX chargers sold, inception. and the Blink’s company months, Blink deployed, domestically both last or bringing total internationally, XX,XXX the chargers, the since to charger acquired Within over count nearly

majority XX% company-wide America, have and right XX% with deployed chargers Europe. the in deployed now, the were internationally total in being Now, North been of

On and just communities, established They multi-family well Slide partial planned entities, of XX, complexes, customers. around the fleets, represent a facilities, commercial see you world. healthcare municipalities will our sampling

chargers and advanced very flexible attract with Our business customers contract. models, us position combined well to long-term new

And groups with States nation the contract for addition number in largest a chargers. dealership United automotive Office, the large in very for Post example, of DC overall a fast is car of the Blink. one to signed we segment For the strong

already provide of to out that In have dealerships And variety and installed we X,XXX QX, we a into than dealerships that charges for of brands. XXX this to over agreements span entered owners date. different is more

Europe parking in Belgium this company of one the other and customers called CBRE Some largest in for we with operators And APCOA. Asia. installation and sales in to notable evaluate the property of continue truck quarter include management opportunities

provide chargers addition, to we continue In long-term partner, InterEnergy. our to

in of fact, InterEnergy. $X shipped QX, In million chargers to worth we over

Now let’s XX. at go Slide look and

examples product our portfolio. You innovative see can of

Now chargers, residential, fast we to high-powered ranging have from as projects wide LX as DC Vision a variety well chargers, of our charger.

With these of QX. we and commercial residential a innovative The our both for end variety offerings, the service Vision is ETA of charger customers.

look and XX. go let’s Now Slide at

fast and makes to world. DC approximately You the chargers global to be that the chargers, vary minimum. that DC XXX a and of DC company of we for XXX can and think sale contracted Network date power Blink DC to chargers. is installation approximately launched. This it demand expect is QX, the that settings we that’s another reiterate we important selection different a current Blink for see We to our once our expect of In around the commercialize XXXX, minimum it the backlog that includes XXX during chargers on addressing

look added hosts faster find features as and go completely drivers platform. as Slide before in more our the Android Mobile flexibility let’s launched this with enabling while available sessions stations it we've And their site Blink XXXX In both and Blink competitive life. Charging is our into said of and at iOS is seamlessly on everyday to redesigned easier, integrating chargers and allows we chargers Apps. another book advantage Network XX. our strength Now network The managing

focus another the let's in outline did We of and Now to this Consulting. an announced on discover at acquisition SemaConnect. look you, with remind to help topic across We synergies and of just Synergies. analysis performed QX the we McKinsey extensive our

a targeting QX million we Now, result we million of are in XXXX. XXXX. during of of captured acquisition. million as operating to an synergies revenue a this Today, we this have now related includes total additional XX, X.X March identified as synergies expense of This synergies identified $X.X of XX analysis in

and reductions begin year. of expect realizing and in QX QX We this to revenue synergies these expense

one will Now we realize Blink This we related expect they're into of state-of-the-art under combined and from network. engineering the expenses addition today. acquired legacy we the Blink while summer to networks synergies from This the networks SemaConnect network. entities acquisition, eliminate incremental all in maintenance have integrating will globally achieve to synergies

presentation the pass on Rama, Michael CFO. I'll Michael? this With our

everyone. Brendan, and afternoon Thank good you,

companies XXX% revenue period in the in to XXXX million, for purchase first sales to XXXX our DC Turning greater chargers, quarter as the XX, the were first and customers acquired in of XXXX also Slide $XX.X same SemaConnect sales the $XX.X year-over-year include Product of Product EB. XXXX first over of fast million. grew volumes of quarter commercial from XXX% chargers, XXXX an chargers. total the of residential of revenues increase generated quarter and

on of million, XXX% XXXX. ride-sharing an of growth revenues quarter charging number service compared Blink incremental revenues, our the first year-over-year was from chargers. to greater with XXXX quarter driven were service service by and First network acquisitions. The chargers revenues program, consist Networks, of associated of revenues increase $X.X Blink the increased of primarily revenues The utilization mobility fees and ride-share of which

million, Gross XXXX XXX% profit over first increase – $X.X year. the in an last the approximately same first quarter was of for the of period

amortization the with non-cash in intangible $XX.X in million $XX.X reflects increase and QX percentage a earlier. QX Operating base year of acquisitions period. revenue about of about non-cash as the XXXX as XX% SemaConnect year-over-year in of to of prior $X.X QX versus share We synergies was in X,XXX As additional quarter gross QX XXXX. were by when and XXXX margin well The assets first million the associated improvement $X.X reduction as XXXX quarter remained vigilant expenses operating of compared first cost Brendan increases in opportunities points the basis mentioned million of compensation million, XXXX with the XXXX, expenses of compared increase in EB.

of XXXX a quarter $X.XX just in non-recurring adjusted of the and year excludes intangible income, related period. a loss the largely $XX.X share a expenses XXXX. loss which year EBITDA earnings by was Year-over-year non-cash XXXX of Non-GAAP quarter revenues assets the share prior $XX.X first average the I first basis percentage per prior as loss Adjusted X,XXX compared first acquisition operating of improved adjusted is amortization million compared share of per of by net per for expenses to a due defined in EPS compared EBITDA outstanding. points such adjusted for of the to to weighted of as as the was the over loss shares items divided higher $X.XX as significant periods, million QX to quarter Adjusted mentioned. of

in Slide selling see decline saw with which to sequentially is This to turning Blink primarily in-house. lower a compared margin we XX, that more chargers, to significantly the Now will contract manufactured a contribution compared gross margin carry due when overall manufactured you XXXX. units QX

gross improved our products. margin profile been with replace units. contract capabilities manufacturing we've result expanding a discussed produced to all chargers in-house we've significantly our This of As in manufactured

We expect meet margins the the or exceed second in gross of remainder for half gross realized of XXXX XXXX. to margins the

Moving cash to our position.

million. cash As of and and QX $XXX.X quarter XXXX strong XX, saw We another equivalent March revenues record All was all, product in for QX cash revenues. Blink. service totaled

We execute strong. We products for we and believe on continue North see and our services is robust the in America demand to Internationally. foundation strategy, and our

I private tech board and generation public Before sectors. member the Peterson, member, our conclude, investor and experienced infrastructure Kristina new welcome who power would in like electric of over operating and I company XX to experience years board with is finance, an

Jones I will final comments. ahead, to Brendan over back call the Go few a now Brendan. turn for

Hey, thanks Michael.

in for model. off larger strength the the XXXX. quarter XXXX me Blink revenues start. is to is revenue Blink of to strong is recurring We a operating But X clearly of Blink is times particularly exciting than QX another delivered and first the what growth So is record

the paths and pressure look a points industry Blink. here space, Now, including is the starting hard about to under are be to when There appreciate profitability the questions make that some are entire we about Blink. the to across that industry, at asked there EV few we

early We rapid rate, at very in are still the growing this a is industry innings. and very

have built quickly we and that and to adjust. growing support continue created very anticipated structure We carefully the as into we company are capabilities have structure a larger and to

will our operating faster losses business operating than our down model quarters scales our progressively coming come grow and revenues as the In costs.

priority. acquisition, want integration, and don't let achieving have moving sure and everybody that, can we this I While make product priority, our that pinpoint synergies, our parts share free flow an positive a cash lot things new as sustained launches. understands exact me is including What to is given additional timing of such is I

will We as have a clear path and to we to of will we our continue there keep we and forward. get you appraised move progress scale

ahead development. very player right where place, As to success extremely team to transition on our to in the and the leadership opportunity dedicated energy markets we experience of we innovation, our industry only positioned build excited ever about and – not was we the on continued that are headed, was have forward and be to more before. to strength growth and accelerate implement it lies to the a but And look continue well take confidence are optimistic our and strategy, where building passionate more of with the I electrification as in world and our lead and this we than it role that the around communities in future moving accelerate employees companies. we great the bring

manufactured are Now, global contract like to Blink a over to markets. with share would before for our own that in-house. higher goes remarks, with we hand replace I I for This hand-in-hand chargers cost and built conclude closing European the our the working new charger comments

other Slide our countries the final dual This addressable with many come countries can with to all markets of functions. EQ mounted capable you in has and throughout that EU international and XX, needs plugs charger connected world. first and all network this, see the our charger most for on So vast applications single the design XXX you latest the see will fits and

conclude to about going I'm holds future for the this, about with the future, are Well we Blink. excited what

up will now. remember questions, for open that, it time my easy With so on this now be is we first me and

Questions?

Operator, questions. please proceed with

is open coming floor apologize. questions. Irwin Our Thank on from your live. Instructions] apologize. is question Craig mic line mute. is was Craig I first I now MKM. very from you much. [Operating My Roth The for

for you my thank and evening, taking Good questions.

and First, we to look Blink the bring level. an next you Michael Chief founding and your welcome to say forward you to We the did I'd look forward Brendan, Executive. leadership. to the amazing like role company of to working job all to watching with

leadership big question around a I really just So wanted to picture ask the change.

execute years leadership is So lead to a strategy assumption role strategy over Is you've going CEO in to last in key the the been potentially form the person in a role portfolio helping and a manufacturing, Blink couple the played place. in change helping team that's growth strategy diversification and to major to been international and success pivot your of alteration followed captive this an approach as as customers used the serving strategy other at that the far or the with? and items the to all business of in your we've of

Yes.

see need we're there's this to And going as under doing. major the continue no to have of product, globally. network market strategy U.S. that evaluate So the I been are mean, I includes leadership we're our benefits we the both new departures. manufacturing Michael's what the marketplace company. in in a look is to features global and going and to at we and and added that to be mean,

these the We're fit the markets. chargers charger or all combined, showed a to bit markets our is going we in now, to America adjust for in right some the on hottest it's a development expanding suit just product a that standard. Latin the predominantly of one they you, which We're America followed to different percentage little Latin in to that continue going strategy needs that's basis because we're of Europe have standard of might Chinese the they where other and whether have

pivot the on to where and going continue we're demand. basis customer market on necessary network and to and follow a path product So based

especially to of focus because charger. of ground, continue consider that fast one we when charging installing is revenue of to also, with the put a the model from the LX Now charger owner minimum charging DC sustainability on get LX we're XX a that cost at a you we to where going on operator the and

we of model and be install provide in fully of of those, that on but our doing sales, can producing look to portfolio we are our going model have provide model and we today on exclusive operator when network owner XX% fleet as provide the better get of have buy fees, at a spaces sales want to going don't and margins be to one And the the continue just that so want for to also to chargers innovate today. well. where we operator, that, maintenance the contracts and We're services, utilization the fleet the network are space Blink, to keep they they and but also can other services we're where for double-digits sustainable installed in reoccurring return, better chargers they revenue

We're needed going continue market that develops. that flex So we to and maintain strategy out. set and that's the were upon basic approve as to it the

you that. Thank for

color my the need to Obviously could as Level gross us chargers margins progression the indicated going Level benefit like you So wondering margins. for an we would half? understand vertical because your charger should to gross Is possibly question are little highlighted a other was X it's I to X give And I here. European in it really if maybe margins important we the you on that item was you this there about guidance. bit charger, next more second this be sequential mix or just expect to see above in integration XX% that

board. the across It's

so versions in So previous as developing two before different of we've Fast a Charger. talked quarter, about the DC we're

that's which in which open We XXX-kilowatts simultaneous the in manufactured we'll and development DC, of be produced July leading will the of market starting as the an at is next the within up of also a in-house Series out have and of the the to operating have Then DC XXXX. That'll at we're there. full going that Fast from Charger that facility on days. have the low-kilowatt charger industry. X, margin And XX

innovate there Fast those have market. both and the of Charger products margins greater on to DC from products us So will scale, new allow

Then let's look LXs. at

manufactured capacity our shifting and of designed majority to had previously U.S. by non-contract that facility, and the greater end contract be manufactured of Bowie sold in we able XX%, margin. XX% plus LXs, XX% we'll and We in the are our going the now to we where at Blink to as up U.S. dominated. So produced be year in a market is are the by XX% of the increase that the chargers

saw inventory strategies QX Europe to sell United legacy we and some have on both in products some here you the and out, States. play have down some which We that in

coming great the the are margin inventory that's at, going have all on the order and continue but bookings of influx through that a of new to We're sales higher we push we're to based in that looking quarter, newer on bookings product. that

So as much we that improvement as QX. margin we should QX and Michael expect indicated in in his manifest comments, indeed fully move on into

headwinds last Charging. something of vertically product. this number. other And And for diversity Excellent. maybe Should in XXX about integrated, know steps Can deployment need that see integrated customers solid to this have targets I we you're if may any pursuing? the I then talk a backlog in DC and be you a the is into their visibility? have expect space those of to is expect has you're DC customers installations companies question, the consistent assume vertically then from us Do and Fast pretty this I phased with XXXX chargers you margin that margins you to there? you announced

Okay.

in we in LX, right? et that question it's and at into the most that profit Chargers, U.S. we while into developments going cetera. won they're we've but a they're going they're continued grand gross you much won going So of Fast increase for have dealerships, higher these look into because contracts chargers municipal are great margin, lower programs than in your So they're DC when

higher you're is right? but lower on but what revenue, – rule, as So to margin get DC a going

now. manufacturing, the own LX unit right DC margin basis margin from see we XX% a our you're significant contract get a you consistent on new to shift is to to it as per there up a that ability the we're But going retail basis. on improvement harder to and to going above have our – on own little contract away

summer the are doing the to begin that. party DCs charger most fully contract transition that'll of So we transition of and we'll on with then Series out manufacturing now, by X next third right

hey, the Thank hop Well, Great. go into you. roll. I'll congratulations queue. expanded and on back

Perfect.

Thank you very much.

Your your Summerville of next from live. Davidson. Matt, is question line is D.A. Matt coming

$XX want the product I Thanks. I just $XX Thanks, million a million would to manufacturers? sort capacity? units having that again sold of to sort quarter, Brendan. issue. you in by were you that trying kind more? quarter. mean, manufacturing there this at help gross That's margin as be a about transitory if in-house? change of of issues Can understand apparent last sales of look I Why talk manufactured readily to such me. I'm things rounding you're us contract out Are playing not there ramp Are little bit just mix

bit the clear an warehouse it out. sell March situation those the of Yes, that margin at were sure. product. timeframe in of were chargers team which had legacy Bowie the units. that on sales – of those put are at in Rama overstock an and had We And indicative U.S. we manufacturing the per best I built loaded of mean, the and one the the March down When built revenue the we a that we the the is look pointed trend Simultaneously, our month is in emphasis basically chargers. most months basis, a all into of shipping to Michael to and one booking on the all facility. the contract bookings were units of higher in in of those we loaded April

and seasonality, bit rid on was push quarter, a the the a of bit we on. did it product beginning great of a in So job legacy the getting which of a of

capacity. to in that availability Europe have well. where to able of we little were a seasonality, same do increasing And still product there. We time QX to in rid inventory the legacy and same bit was We we the in as it keep at mind reduced we're lot that get the XX%, of by a pushing thing but go, were yes,

to out So that get of we units to able XX,XXX up Maryland facility. Bowie, to in XX,XXX were

to We the out improve to get year to up We'll – or out about enough a year out get facility up that units just sign XX,XXX. capacity about we're now this lease be this and we're that. have to per right leasing I'm of of annual now space it XX,XXX the end of signed able to to to to that by

numbers got you bit mixed of and as we of sold a So little little bit on. look are When that legacy at margin have come in we of down availability X there revenue. we crank chargers, of bookings X the Series the and you in revenue bookings future and sold what a some the and in leading see time. out bookings the improves best We indicator that the will our over

for your then utilization. available. be it. point you a metric book-to-bill maybe you heard Got I you Thank sort wondering was now, could to field Similarly, is and for ago? install that of a ago now where if what I your make in have maybe year might frame uptime cite product rates useful on the was if base the comment a versus you. year up a utilization to versus And it

Yes.

back competitors made We've exact just comment have chargers, specifically of quarter, the It's for XX% number. our utilization revenue than committed to the have we that released. in that number you. to good So of it's of what those going recently and We're at a next double our the it's higher some releasing the operator digits. possibly is and to installed looked they're generating go comment XX% owner to current earlier,

the that our say of years process majority installed rigorous digits the X.X look you started instituting at portfolio, we there and you model. that much chargers would them for we when three overall overwhelming utilization in simultaneously, at go owner-operator double are are look identification of in if and Now in site have and a that back revenue. those years, group last XX% And

of systems confident to high and we've cost then identify which put been able the we've together now we're insulation, reduce. So properties in utilization the to

lot and with all of our other use tool. chargers. years return high revenue sharpen it's software corresponds sure investment a as will there to doing that And of future make and data We pending pinpointing to it's the working. a quick will we've the home-built that the owner-operator the accretive locations LX, a been model accurately at to combination to looking for a when of be we some sustainable sources for about the then utilization, utilization it's of those continue result we're GAS on And for in that with and three we're

I was book-to-bill? And asking about also then uptime and

You broke it? the just somebody Can Repeat up. hear question.

I also was sorry. I'm uptime about just and asking book-to-bill?

Yes.

on anymore. on working with now doing quality We're for chargers build that to Chargers to high-XXs in XX.X want we're right or two one and your also we're and other spots is is chargers, in your chargers going even DC you sure the you're to uptime So going now But make four as possible. what as want sure together. that chargers get make the a groups you our initiative to combined LX uptime building plus redundancy we all many in both not is Fast install charger builds. We're minimum

have every charger's it. we've So that way we in got if down, redundancy across a station

lot And of a systems, have to customers they XG didn't quality previous fact chargers A that we've to lot of XG quality in upgraded been improve have and legacy of course the online measures issues legacy networks, in on the in had charge. of chargers able that old sunset to quality. and going weren't XXXX, We're the related the market. went

over replace The hosts there's upgrade has ones that replaced As can time. a site owned are He we to want it. chargers. not and those charger. but do we've his be a site with result, do not to to all lot that host of The convinced most, does not

And book-to-bill?

get in for Book-to-bill, I don't me you. of metric it have front but we'll that

Thank guys. you Great.

Thank you very much.

B. is line is question Souther from Chris, coming next your Chris live. Your Riley. of

guy's thanks my Hey here. taking questions for

looked the I and down lower seasonality, on and puts but increased. host both can any this margins assume fees takes and color charging charging there past sequentially, quarter. provide costs the on the Just you the sequential revenues

kind on the trend could quarter there helpful? incentive any be end, So the of provide would

one? that take to want you Michael, Okay.

Yes.

right. You're

revenue lot West it you in the early is side, the the at Coast know, function in seasonality and obviously winter had U.S. least a On months quarter. as in first the rain of the a of

caused So call part also active regardless So, be charging increase. not, right? they the seeing so seasonality or it but live are or of will, cost you're station are costs that in revenue starting of you lot a that Europe charging if of a costs that going some there's that don't the to if – function are and using charger to we're the still [indiscernible], and

in coming see we're through QX. what that's So

it. Got

on those the DC well? Obviously model Fast for ownership product are should items, plans are we ticket think higher as sales rollout, curious so to DC those about… how are And or Okay. the then all use there

a a is them. there sales There in mix the are of a where and of is on contract there, the Blink majority Network a the mix. Yes, Blink but service is bit majority little

ground. charges acquiring going those. owner in get gave the are charges network we're in Where these operators not for out the but you, to are that revenue the those majority, would few ripped on need mixed ones the revenue. service get with replacement some there's existing And that that, the And that on exceptions. to they there. are overwhelming are be the course included a of the be sales of of we we're – some revenue we'll So, and total in But get there, operated that maybe will owner

[indiscernible] offset to operator of owner most DCs, going the installation where on have, the grant instances, money model. the We we're in

for the for I'd just And how think Okay. be year, overall maybe the the owner should – CapEx Got about it. for ownership of kind Blink model curious? operated the full we

XX% It's whole and put we're there the going to We and he lower where There bringing get segment if average on available those. more have where a initial a we on Charging, power chargers have into DC not has None Fast site. numbers occur site, installation programs are it that replacing that's installed on the high it going transformer. going all in to have I'll items grant chargers one-offs is the that ground It's they so outland When money of under cash we're capital those. need and full come to we and of mostly with don't have to back, installed, not the what but so, rip and to existing bunch capital, to be to compliment. but new look the an new see charges at a a basically up Yes to No takes be going Michael work and upgraded cost but is we'll let's are out for of chargers. refit in in is cost the because to trenching. replace the about remove a that. some will

our Now, cost in forecasted the amount on available, it And much turn LX reasonable Michael. the LX, I'll it's the all to of for lower if our of in for But terms very all to install do those based on forecasted to details, capital needed budget it's are installation. model.

of quarter another the property also could had Yes, we and million, I'll some had a for of as new that's in of remember purchase vehicles about $X program, just about $X not had ride give increase million. little inventory installation. also Obviously but $X.X equipment in share But and we just we includes, a another all million. That color. the see you

linear for So at are of $XX to take CapEx. right million that say want million include $XX two, you there, to to $XX the between on if a about, I of year. looking you million really in But the that's could remainder capital that type cash It nature. flow we because the comes through statement as inventory going of the operating. see in profile

Brendan this mid probably part of grant for are that money latter into and part early power of some spent programs the are as we'll of XXXX. see XXXX And probably expect to that year dollars come back to mentioned, being these already

breaks thing down. Okay. ground to provide we upgrades percentage to pays And charger, hybrid significant other are site And model. The that we chargers installation the chargers, add we the our hybrid that the model, provide host we in of under provide the under is LT the charger. the are that putting if of the the for maintenance,

and we everything that, don't split the we need revenue. So hybrid upfront else, for They the capital and pay under installation. pay don't the do we for

sense. in makes you. the That I it. queue. Got Thank hop will

much. very you Thank

Joshi coming line H.C. question of Sameer is is your Wainwright. Sameer next Your live. from

on appointment. Thanks Brendan, Once taking Michael for your congratulations Brendan questions. again, my

Thanks.

at Could helpful. little network the Have be Europe places? Any other just you a of difficulties? color faced of bit track? on the you give integration us in update will Is any on it

interesting Yes, question. it's an

different a developer you ask tell ask to me are you it's answer. If they'll if a you person, going there any track, is difficult, get all on business a but

that his and better move this made four when to at Right? mind. under what has. in is herculean and Bhade are we a They ago, over and to endeavor build a Harjinder one. we that network them network combine fortunate it's equal built five or years networks with from two the So, But bring time Blink actually ChargePoint task the to to take

have we'll place the XX Blue in we connect XX rest place semi and The Greece, as will days. after final rest that. going of well. And take to then over less chargers South days others all – time of switch the than is at Europe, So, have Corner take integration that in America we

in So, looked we predominantly countries. we've process functionality some be was big to development had minor and different the delays in certain as And delay. that had the needs at that

Europe, use In what's specifications different different do. and cards a don't had you You because we engine need called credit billing rules. like they

and it possible. usability as the So to you testing separate we bit development and right we quality do there is But been there. do have that a the bug as the little has slowdown emphasis of overall, ensure and free the

but or much us one nothing forward. then one of assets we'll it'll take throughout be we have bottom very days, network savings engineering are XX those in globally looking network that summer So, blank. the the the And and save for and move we have forward we as will And to redeploy to line. all be U.S. one the

that. Understood. Thanks for

is this and impact contract. the potential Next XXXX? is impact revenue What and positive bottom or IDIQ on XXXX in maybe the of line a question

of of are good. bit to a those you I'll little margins margins It's give products, the determined be feedback on that. The

So XX%, And they target goal XX%. is target. our our are above our minimum is

and positive that in will the perform, time received you how is on say the and are network it's colors came time. we of it feedback of you United up our the tests, to a on performance, it that this, volume from your they and released being we overall bit well could shipped and and we of individual Office, tests little and made the and our they earlier time So, flying the margins that did over sure the passed The product got passed, so Post today. contract States hardware I order them record than out any hardware we've bucket. all firmware above And share other provider, in

our the higher we're share continue positioned great able of to the we'll position of of be important to unfair really and believe on And in and very emphasis I chargers. XX,XXX timeliness So revenues reap and to to quality more well client. this put total delivering the we're

owned is out is I wholly Good integrate My the just Blink Mobility spinoff on it know ride that. update share the and I on it? into share luck is mean, cleave subsidiary, how if Understood. it a have last acquisition can question you Envoy easy any to but you

Sure.

we're the platform synergy we that the exercise what looking another we're on Envoy doing off that and We're now speak, both right Blue LA at platform. week. kicked last is through as going we So

So we're everything agents. have sales you and how agents the customer there support, in both many to from to looking IT service, customer to support field, development,

units services going shared to we're LA, yet and Envoy but separate keep the beneath have business in So scene. Blue

roadshow So spinoff. from we the the the will And business. And overall overall on the start then get pro expenses. an there forma reduce we on we'll

plan grant we in State $X Once of million of in grant from the New coming coming we the we Jersey. together, LA, new really business helps money that it additional put money from have have the

that have other grant that. want We applications

So with believe we're going good with the we the really very very, together the for the to spinoff, a market. money, put that grant with synergies, product

more for May the look we So through on into get of month details this June. and as

have those? you on mine beyond Michael, do any additional comments

No, I accurate. good. think sounds that's Good,

lot Thanks good Brendan, Michael. luck. Great. a And

you. Thank

Thank you much. very

Oliver, is Your your next is live. from from question line coming Huang Oliver TPH.

taking afternoon our everyone. questions. for Good And thanks

Just of ones quick a this couple point. at

all you provide color Is kind at to facility ramp respect any First two there the that Bowie one follow-up. that it's able how to benchmarks XX,XXX XX,XXX chargers? will unit and the being on are fully ramped to a with once level of margins

to I'll see if can if Michael, provide add color this, additional other that. he I So, and has some

and we acquired hovered sales, product the best had that's So on And in XX% pure deal, Bowie, It also SemaConnect But right? margins we the excellent the XX%. wanted thus them, when did the been we when industry. footprint of one manufacturing between far. they

product for So, that we're And is margin five lower one that that the products last selling years. same that of the product now. in four we've upon using we're place or innovating been

higher of as margin. Bowie this to products going from those are Blink our have out So, shipped we contract coming in to improvement continue see manufacturing this to margin facility, you

and And we the love now really elaborate the had. a looked we whole, opportunistic base are the very margins combined those at India, manufacturing company we all customer like as like but move as the both proving a that in chargers, can Michael And and U.S. further, they we as forward. the we we when like the company

color Michael, around any that? other

little color. a add more I'll Yes.

fees, capacity that on the a Sema large including margin large on And total the was prior second diligence profile the we even margin the on network the margin network what not the to it in due network of that the, even half saw in and XX%. but a drive in and XXXX saw filed, have they gross financials of side bit we excess high of on side, the in well. the that overall, just revenue, as and they product As acquisition were

XX% to part So of the from margin be the there but the that product came is their XX%, additional that bus might at business. of

seeing a there I be to expectations. see XX% operate remember, want own So the start we're because until don't and margins, to as XX% more of product, and going to We're we to still put utilization cost margin. in and have there, plus, units the run level, amortization affects more as we still gets gross higher we'll of little the on depreciation a ground, bit

give to want that expectation. just I So

of half in with second to up. profile is bring XXXX that saw the we those will confident But product like manufacturing we're margins going the

stock-based for recent just we're guideposts other from and compensation whether cost and from that my the so for just seeing some $X $XX the question, any you run comp, couple? in relative given or acquisitions rates sort are terms of the on just initiatives there. the reduction that synergies such of And over to cost last as million some SemaConnect noise, million to Awesome. G&NA color the able the Thanks and side, the provide of quarter per all second

impact start the second end seen of realizing started of come more Yes, into the third seeing obviously play XXXX. the – we in haven't add, towards those those quarter the quarter second and in full We'll of we've I'll into QX. synergies that

we think very share base on compensation an comp. levels, are conscious I OpEx levels, of compensation

that If about you was second just recall now. is there XXXX in of expensed right fully an award half the through

and the synergies comp we'll and seeing we're the ensure full come monitoring base conscious very really are cash and part that the But we're and – share and So on the expense down. again, of integrations start taking synergies hires, compensation effect. integrations to

Yes.

companies the both to and as in that it's So been of here go say through and redundancies Europe, a have for We'll entities various major all gain. the look opportunities a of result synergies that and only right. continue achieved focus, these comments an of I'd the efficiency

where of now. of And function. labor a particular will work that for right the is also be cost lot opportunities these We continue going for we're a look to to doing best of

– Los many We facility Bowie, three in development center in the United different Europe you have a we offices office, got Phoenix, know, have operations. we the three and States India. a and in the in Miami of got are major As we four got facilities in manufacturing office we we've have Angeles, we have that

to dollars. the jobs our shift for bang get will we So best

haven't action we on. of They we initiatives out are more some efficiencies we develop will eek as add in manufacturing reductions that taken to chargers well. also have within then that. build and this the G&A We happen going upticks more Europe some to later that yet still continue as are But We'll have hit year. to going to U.S.

company to continue overall, more points. as bait system continue efficient, reduce process to on go improve going get all processes to So we manual forward redundancy to we're access and move from the more away

Awesome. Thanks for time. the

That much. appears very our question. be you last Thank to

concludes will that turn the Vitalie to I Stelea, call our Relations. So, of over now back Investor VP session. question-and-answer

Blink you thank in Thank for disconnect we This call you, concludes your you now. interest and our may all And today, Charging. Jenny.