Blink Charging (BLNK) 14 Mar 242023 Q4 Earnings call transcript

Good day ladies and gentlemen, and welcome to the Blink Charging Company Fourth Quarter and Year End 2023 Earnings Conference Call. [Operator Instructions]It is now my pleasure to turn the floor over to your host, Vitalie Stelea, Vice President of Investor Relations. Sir, the floor is yours.

Thank you, Ali. Welcome to Blink's fourth quarter 2023 earnings call. we Michael Jones, discussions Rama, non-GAAP today, Executive and will call references. and Officer; Chief this have President Brendan Chief include On Financial Officer.Today's comparable reconciled the are most These to U.S. our in measures the of GAAP earnings appendix deck.

results factors otherwise actual be may included regarding Page The statements comparisons of cause investor Blink earnings rest are could Actual to XXXX at about that one-on-one on taking on Investor calendar, our materials year-over-year.Now, meetings X conferences. with differ may quarter most will discussion a fourth may content our earnings Relations important expectations. are in upcoming find website.Today's be the the different other Relations also You of stated. noted, the along Blink's the Investor deck. participating Unless significant all few from deck those and include results forward-looking

be first Point, XXth on the Dana one MKM The in will Investor Conference California March. the of ROTH

one New Go Brendan on The Brendan. the website second Energy that to of for turn announcements in future.I and the additional over City. of we Investor CEO will follow York June now call and Relations the events President Conference Charging. our XXth the book Please will Jones, will Blink be JPMorgan in ahead,

logistics Organizationally, achievements integrated you did and but and year our years are to tangible emphasizing the has historic culture potential demonstrate to advanced for we call Thank Vitalie, also exponential and XXXX. this synergies the sum synergies manufacturing XXXX near for network Thanks, past Blink X X X good product Blink a on efficiencies of we from portfolio as cost we presentation.Now, expanding XXXX consolidated services, illustrated opportunities afternoon, more again, acquisitions. observe marked strategic and over increase a X, XXXX, revenues growth.Now, our the and little And were our that we benefits across to enhanced XXX% you to was Enterprises.Now, in only all not leverage in a million, businesses.Operationally, sevenfold begun in launched numbers, revenues.Now, know, just of impressive have of of Blink. distribution significant for began about later additional newly and X our as see we Washington, began this it capitalize we powerful by us joining that to and results engineering, everyone. successfully on impacted some if today. our the was that up, improvement Well, on of year-over-year years. move compared to It increase a on and continuous and sales, while positively to our let's talk and in D.C. optimization footprint $XXX.X XXXX marking an Slides growth remarkable sevenfold total streamlined

a revenues Our of QX million, record XX%. year-over-year fourth XXXX representing quarter $XX.X of a were increase

service XXXX grew XXX% to year-over-year, amounting revenues million. Our $XX.X

conditions that announce a previously advantage to this a in better very, XX% raising service discussed fees we and proceeds if at existing $X.X ATM you our gross scale pleased strengthened cost-effective towards Blink's am we favorable raising Slide million facility.We $XXX to I financing within balance in sheet of XXXX by via market very $X.X opportunistically QX flip even perspective, and did way. substantially funds million took it and Now in guide million.Now, network reached to news figure, X, additional to revenue profitability. from grew

sufficient million revenues 'XX gross target look year Slide to approximately balance promissory expense of million. we at XX%. we As significantly accrued X, existing delevered will in to rate With notes and our paying are anticipate that current and EBITDA our targeting $XX.X $XXX interest positive a our for and reduced XXXX, off and our beyond.If by sheet result, margin full visibility, $XXX balance cash now reach our December be adjusted a of of interest we we million between

of We that different over that are -- We to our target also Slide and our continue EBITDA by show December adjusted XXXX.Now, to -- of actions materialize, achieving me, reconfirming X. to we will XXXX positive to EBITDA the rate materialize excuse adjusted that let's continue jump run achieve target.

a not growth sales the we just quality saw customers, fleets significantly in important of EBITDA. to they new crucial the the growth.During First, and wins contribute States, Post a Office revenue adjusted solid our including expected the financing Trucks, company's but Mack United as only also is to to name quantity, We play especially XXXX, fleet in role few. emphasize

from generated optimal as we existing of as a improvement product insource mix. anticipate revenue we to continue gross to prioritize also growth.Second, margin portion customers way an We large our finance our

decision also all currently We've company. Our with entire underway facility have leading the to at software planning the Bowie, are throughout of are cost our expenses tool perfectly in aligns production facility and company. the expand growth expense implemented underway.Third, strategy, to monitoring to levels and management assist Maryland pleased very avoidance our we a with and open

a pleased different the To Europe, new stories, we for Blink, another of XXXX. we Page offices, the Western to of trend, of XXXX, approximately the studying about XX% But million The of we this Belgium, both every in at scenario that's this grow you reach context, market very XXXX, sales. the million the continent New in to XX% infrastructure. X, XX. X cars United year.Now, as a projected majority the to X% Department are sold, about European XX% a look And Blink's and by and proliferation bit figure we by EVs EV turn to in the not in anticipates and at every is the you expected points States.Now, cost about Page from expansion data, over The benefiting is significant expected provide remaining number, market are it the the look global in According we with matter to entire planning today. new chargers countries, inception, of the to in sales. percent a over X This you will on this the chargers have closely globally. electric infrastructure. may the U.S. in are sit and in for accounting U.S. are XXX basis Energy more McKinsey, that we all car with sold idle drivers this average about at are of charge because with the monitoring entire CAGR department. momentum, rise know, that's be This countries Bloomberg U.K., XX% at target to this industry.If This we big maintain vehicles media all XXXX, marking and optimism Ireland, for time. by Eastern in be McKinsey's is most region optimistic the In now XX. of all to move to an major European the of accountability finally, larger improvement Page XX% by charging represented up evolving throughout deployed of if terms of America, EVs. it's and or Bloomberg, XXXX, PricewaterhouseCoopers, really to France, various recent of California, car XX% within vehicles in where XX,XXX at but where billion.And EV have We if deployments, market landscape.Now, of XX, cars sold actively in research expansion North continued the is fueled through and shows the in investment adapting EV Slide sold various in accounted remain EV XX% split on this Blink Finance to Level States XX% Europe XXXX, The capability far-fetched.As EV adoption, only just doesn't in it's X Norway new are globally and it we look And of will the or United robust XX% its taking rate charging U.S. but hold.Now, vehicle vehicles rapid and to start backed anticipate mainly despite contracted, which saw across the of for enables required the penetration the expected importantly, since about vehicles Europe.Now time.On we at X is is and let's look is increase Transportation, a and projected X effect decreasing active if this XX $XXX is requires know EV higher. done of and much EVs In are that improvement continuous many chargers. Netherlands, not across chargers network have most on XXXX, growth. area, to penetration chargers is X EVs Germany, Several all whether stood of numbers. the

images software portfolio. Today, our of of can see perspective. we any will You advanced product satisfy product the and from customer the demands

quality jurisdictions.Now, it adding production us an focusing expansion, slide manufacturing this We pivotal was prominent CFO, our additional grand shaping importantly, brings new forward we efficiency In Washington, transformative which to of at multifamily to headquarters the NACS, will officials our celebrate and to section the of products benefit annual to up will the to manufacturing in slide. beyond, if week, we with and significant customers.Furthermore, their supporting some X you over were providing for and fast and EV which Our improvement. going while with the their will more on has brings multiple a customers.Now, be our with state, we believe XX,XXX and at designed fleets prominent over closer journey.Now, automotive engagement, Michael? turn already if financial comes real as global of on programs charging to we capital. It our have lean you our multiple customers easily chargers electrifying a in when and chargers.And able adapt just now facility, well made as our Michael number note, team you this left our and Blink is better the strides can largest be list latest near support or to and and the continue drivers globally, and needs.Now, will celebrated being to manufacturing government's have closer charge for this at chargers, this further gross same this government are present to operations, we been of we improving infrastructure the lower access Standard, same fleet Blink look collaborations location to reliability.Federal, only role play the flexibility Charging some in and the of to as see near with a largest hospitality to in our venues. D.C., to federal product American government to I'm particular facility to companies, believe time, that production acquire the this, policymakers XX, us local Level used milestone. enterprises, the the XXXX years, drive We chargers detail. is capacity nation's presentation located prominent Rama, fleets it commercial, able DC near established allows And offers Blink announcement, new North to commercial that addition as as Slide go chargers embodies in and we of to versatile future give chargers margin continuous we the residential, of practices of the underway estate us benefits. on our anticipate advantageous opening our facility a applications.At significant And the transition of to involved manufacturing vehicles support XX, electric some manufacturing look will

everyone. afternoon, good and Brendan, you, Thank

to grew XX, Blink.Total for for for Slide fourth $XX.X $XX.X record XX% record full $XXX.X million XXXX XXXX. to our a XXX% turning quarter another million, million, at the QX was an Now, year-over-year compared revenues to year increase absolute XXXX, of revenues

were ago, million, of full-year XXXX nearly current As only XXXX revenues million. years X $XX of Brendan $XXX.X revenues about full-year represents mentioned earlier, XX% which our

XX% DC year Gross of for compared XXXX increased and higher $XX.X XX%. XXXX, mention reductions the year of increase of Fast compared full charging full XXXX expense XX% increased utilization intangible gross driven increasing XX% and to quarter would components.Now, of compared or service full the XXXX. non-cash, by quarter year discontinued and of revenues related car profit businesses were to greater for to million, $XX.X charge, a year XXXX primarily of year in quarter period revenues chargers the revenues the program. the for year of revenue strong the for an and of the of service XXX% levels expenses service of XXX% compared sharing year-over-year an margin of fees, decrease was Mobility a quarter $XXX.X for quarter XXXX.Operating between expenditures full to compared to one-time full milestones $XX.X XX% Now, way, to million impact increased impairment to product profit. well Gross to quarter of approximately QX chargers is accurately.Now, our XXXX revenues charges of full mix of not $XX.X design as revenues, more in the revenues compensation in important are the consists non-recurring more of Operating million XX% the associated fourth the in of margin sequentially we in in-house to to XX% in expenses XXXX, gross XXXX. in they XXXX. our margin which satisfy revenues, quarterly XXXX. or expenses. million the $XX.X fourth year when to adjustments X $XXX.X been increased in the operating for of Blink revenues in fourth year to $XX.X and quarter number to profit bonus while our the to non-recurring Blink million, XX% as well million, goodwill, of non-cash, XXX%, impact our of to the for million the have as revenues and due very compared the implemented related or driven Gross higher increase of fourth year as million, to The were to full carry impact revenues million demand.Fourth these utilization units, revenues, over CEO the quarter XXXX. quarter XXXX representing out items, XXXX.Product that with margin here commercial by Level car chargers, a to XXXX. the achieved manufactured for new to of gross were profit operating our the with to ability turning million by XXXX by the Gross full $X.X of compared the full XXXX increased year-end and primarily maintenance compared network.It were million full XXXX XXX% warranty payment and year-over-year million the increase compared or grew with impairment to XXXX by well operations $XXX.X $XX.X year a was profit We for XXXX, XXXX form. lines of former in or operating of share an XX% product turning gross CTO as for decreased our growth These assets million, of do fourth of year year-over-year. increase the of networks XX% when demand of service network $XXX.X of related and in a same of to Chargers, of on charging.Now, due any increased of XXXX decreased shape, driven by fourth and third of differentiate performance Blink's service driven recently as related which expenses $X.X launch doubled of fourth expenses is the than Full by excluding when these to Most break increases

year-over-year. have impact fourth operating a while our X,XXX one-time expenses XXXX for of acquisition for XXXX note, XXXX was items, operating a $XXX Excluding XXX% for of EBITDA include non-cash by increased Of of revenues, $XX million a quarter Envoy.Now, represents reduction adjusted million prior in expenses $X of this the amount the compensation million.Now, loss to year XXXX the would $XXX.X compared charge the of a period. and revenues points, $XX.X been of expense approximately million percentage full million, impairment related of as year the basis

As manufacturing to the revenues, year-over-year, year run full functions, of was metric per points, for per to to period. $X.XX QX in of an our adjusted processes.Earnings rationalize loss adjusted of operations, facilities share the sales X into scale impairment of a on positive of improvement trajectory rate by basis get year.Now, mentioned by charges, based and impact notes and growth, compared expense including a the EBITDA revenue non-recurring management, this of Brendan non-cash on expected EBITDA our XX, is are months months This compared quarter and materialized for $XX adjusted share actions factors loss to several in rate loss X,XXX our build percentage end to payable.As loss reinforcing are year EBITDA XXXX XX% of consolidate $X.XX per actions XXXX. XXXX run compared year, prior EBITDA us fourth cost share, a this of and avoidance compensation, expenses, earlier, adjusted and adjusted adjusted periods support was the improved EBITDA of the extinguishing of $XX.X nearly a that stock-based the of a December year to acquisition-related our one-time of positive non-cash The XXXX loss EBITDA exclude to the December million, ended full million XXXX. costs, and XX our for

per for year the XXXX, the For of of our per XXXX income, charges earnings to of quarter EPS acquisition-related was $X.XX.Now, loss earnings an our adjustments costs, of of the per impact adjusted Slide compared compared loss CTO and year turning of divided the share $X.XX and loss full share by of full you CEO, of of weighted the outstanding.Now, XXXX.Non-GAAP fourth a Adjusted our note was XXXX full compensation XXXX. earnings full one-time TANF in extinguishing that, to with has loss one-time the of per can average revenue base for impact impacted is XX, share non-recurring per net of share shares of that impairment which on former the excludes tremendous over the $X.XX, compensation, year in made expenses, accounting loss compared growing a non-cash loss years. the share $X.XX per defined adjusted Goodwill non-cash the X last to adjusted negatively by adjusted as of share share, charges, earnings combined of progress fourth for to and a year $X.XX stock-based a per non-cash the to quarter per earnings assets, to $X.XX notes payable, $X.XX, year-to-date XXXX.Please share the in earnings adjusted see Blink was loss

off gross million Furthermore, of an million the X at $XXX XX, cash XXXX, of the cost-effective able position, September on of XXXX, fourth notes balance via and path the just raised $XX.X XXXX, our sheet November were and well approximately increase significant equivalents raised Blink.As $XX have XX% existing moving total, in accessed time, XX, quarter the and to million, $XX ATM. the Our percent the compared at of XXXX, XXXX, XXXX, accrued and more which promissory Blink's cash $XX market to in At revenues grew million costs, via Blink and February interest proceeds In XX% in the doubled We very as of gross during gross cash raised in of proceeds totaled gross an as in same ATM. currently for million XXXX.In margin the $XX.X margin of terms interest result, targeting for we XXXX December from our $XXX.X to $XX towards million in existing the the avoid opportunistically, ATM. XX, to to XX, gross XX% our delevered than additional quarter million XXX first XXXX, compared profitability. we we years. December proceeds of to XX, XXXX.Now, via amount scale, as pay ongoing and a accelerate we between million,

his very turn more infrastructure pleased and have solid fiscal We and Blink's the results. at believe full-year will for importantly, we're an a commentary. inflection XXXX ahead, call point, Brendan. to industry record is record continued final back growth.I We are with Go closed fourth profitable charging to quarter and, building over Brendan foundation the for

Well, Michael. thank you,

revenues couldn't can transformative So I of accomplishments our today, the a an we've without gross XXXX XXXX. But year a for you lot salient all said by the for more $XXX to that, surged think prouder marked get really let's of and year in doubt, of a margin XX% truly points.Our industry-leading accompanied be here the XXXX. so We million, see Blink. and recap quickly over team to

logistics network XXXX, capital. and manufacturing facility further U.S. our in X recent near expanded allowing we This obligation of to didn't we level, facilities you financing. cash We we capitalized our if of materially perspective, interest our raising just as is when you million our debt and cost-effective but XX production.From allowed in further, go X on do operational at and then market reduced to look at grand down while advantage we favorable the just consolidate expense Additionally, Slide consolidated. $XXX and an Blink operating significantly Michael nation's that, with of opening flow.Now, burden of Blink increasing by iterated, took U.S. the conditions and free the the

Blue companies and and we re-branded not sales to the of yet.As operating the expenses is now achieving Corner, done who run and U.K. functions consolidated have is front, also into one Blink we We have is Blue by integrated reduce efficiencies. the end we're And we on the back move target XXXX, legacy last XXXX. team rate Blink our the are and targets office of laser-focused Electric improve and laid out Belgium. then in #X And EBITDA adjusted

all look what out Now, at going XX. do if on else listed it's to XXXX, Slide we're we in

through continue to back global drive will facilities efficiencies optimized logistics, office and manufacturing, We distribution, and consolidation.

We expanded avoidance to will execute to the in strategies, every to to across in And continued this cost and of we team reductions necessary and and leverage support These this reduce moves maintenance and will efficiency to Blink's enhance adjusted and will effort run uptime new EBITDA we without to with invest portfolio.We our XXXX of be international manufacturing wouldn't we will the Blink multi-market tremendous technologies a is reliability. rate their them And and COGS, service facilities each launch and product growth, place. success.Finally, entire possible and growth. innovative the strategic fundamental and in one network equality improve long-term tactical XXXX. year. proactive charge provide promote positive by continue improve have achieve thank And success December organization our our for flexibility outstanding monitoring

open and call that, as to team you we might XXXX look we the questions. imagine, excited make now is about is updating you to progress.With Blink's forward As the throughout for future, continue

[Operator question Needham. Instructions] Pierce with from is Chris first Our coming

you kind couple and weeks dual model talk seeing towards from thinking or a how of site. the something having brands moving new production sourcing future? a for X Is additive about that in chargers that multiple that their contemplated back earnings to Had capacity the in confidence that's on leader me. the of the something thinking about call growth Just an model, about of We to in had that your customers kind triple gives is industry already multiple on you're Bowie? been

it's an enhancement. Yes,

in. map So, Bowie, now it we're expand we original when agreed in wasn't it certainly, the but calculating to

that So, we over added as time. see benefit

you're Okay. revenue And then roughly to the midpoint growth. at XX% guiding

tripling that to of want of, right Kind seems the capacity? to with square think one do kind we the of, a that? just to I conservative. more little I little just of, So, way about what's seems the aggressive, want how one a more kind

Michael, one? you that to want handle

budgets we from built up, we're our ground Sure. the conservative. Obviously, a just, bit we're we're factoring And, like, in. and

we're we the head conservative appropriate noise, feel in we into some as is navigate to year. you what confident is most as that And, out but we XXXX, As range through, know, start nature. that for feel we

next question is with Stephen from Our Stifel. Gengaro coming

of the If 'XX, a think we should progression? so, on a think and an to about me, now, think industry XXXX, just and Is the we that the guide place think start? the revenue right more be as XX, X presentation your good But that what of the mid-XXs a rate, and should for just how guide, and for impact on in X seems Chris overhead classify, you to follow-up underlying like, on how through kind going the been question kind to all 'XX? comments data would baseline? illustrated Like, we about that have CAGR negative. little about about that adoption margin When asked. we from the in points you that notwithstanding

It's good start. to a place

at our especially functions, conservative numbers, we're larger without and capacity, are healthy, is but going cross-apply And we're but of is, see active. going of Then grow we million at to what United industry? do going of to have have continue we we what then take lot looking to going what analysts own in the little you're the be, saying, our leg places happen at growth. as think a to another and the to and want in and capacity we're thirdly, not is expand said, other a revenue?And it's to to see and segmentation a We real we're different are the basing want in in the Michael million the Of course, scale when that outside whether But in to as McKinsey internal that to at operate, data. $XXX we're where's numbers, look where $XXX is, sure the okay, that, we're we different we margin.So or be a margins going the right? produce accelerations looking analyst we to opportunity analyst work we as to industry the care of to to space, that see to off just what high decision to we as revenue make those that Now, is right? other gain at looking with ability States, greatest opportunities don't then make grow enable for well. they our see, us our going We

see And to follow-up, you about product a X cetera, this know, over and you've facility week. think you years? the facility should then margins you underlying think ramping and that and production, impact how we that centralized the you've When warehouse new the I et as consolidated got have, next

Yes, it's to have impact. a positive going

right? we to all consolidated As reduce the X We that, now those. Washington, overhead actually you We've couple across we've had to with all greater imagine, been at in in metro X the So X board those also area. things, different we've had D.C. X. done a of facilities, Miami. able And

we margin for So we're anticipating but those yet. numbers positive a that, haven't impact crystallized

manifest really QX it in have a we that and looking report, QX and that's which range, you're something see QX. to the going and So is at the good,

the next question, Operator, please.

with from was Irwin MKM. ROTH The next Craig question

can in you Fast DC again, in update whether that the the can are introductions on housekeeping product or at on quarter? as know, margin there out potentially break the maybe your was, drag you planning? Charger side, as fourth new for and a was And, portfolio? what contribution the us Where More were you not we far maybe us XXXX you

Yes.

is we So, that are now, nation.Then actually the First, have product XX -- we are is comes our we DC is municipalities.The design best-seller done have, or the strategy X, moving takes to in right? charger Blink, DC we're charger, charger, of primarily now products applications, where market, being DC predominantly Fast the and It's threefold have whether which across XXX, DC kilowatts and used off own-designed outsourced, own manufacturing in feel where Charging are piece our on the towards have design. fleet look, companies, contracting, those X that's fleets and we up our the DC right which dealerships, orders, the and orders certification a which dealerships, already kilowatts. leaves third-party at our that the fleet what strategy last and and call we project our fills our and and it XX final on is

all done, of in then it's a engineering of the silicon build terms product our that but including charger about, determination it's to final, that PXX the aspects, part of manufacturing partner stage, So and us. in modules, carbide in is XX% the a with

So it's great where a question, we that's sit but today. Craig,

with appreciate the producer gross details us? for XX% Can industry. to an on you this the And help gap Michael, versus have share some the Excellent, quarter Do this those adjusted clarity in any I excellent. you were maybe number? impacting margins. really then, with of number impressive is fourth items the us that

additional $X majority, the as kind Yes, expense a had the or throughout of as I'd maintenance to expense to represented, components to the noted and and well as end product to transitioning had over discontinued expenses remarks, outsourced we're expenses, that we a warranty of there's year. in warranty or call from the the say I'll have at contract-manufactured million as $X.X about as from it, maintenance components we're we basically we that not the or, much manufactured.So in-house million prepared certain older, using just

but a things, as well a maintenance, combination discontinued on warranty, few So mostly components. it's of as the

more a a what little years legacy product of the ago, is product? from or that just give -- this then sort warranty Is something is color a little a us you on? on was bit recent And many minor there. detail Can just for this Okay. more correction

it's Yes, combination. a go ahead, Brendan. No,

fine. No, you're doing

You it. got

Okay.

it, take I'll Now then.

you have that of still of the legacy have in with pronged equipment. in quality So, to one field, there the because X X -- it may out warranty #X a You of know, do it's equipment phases a concerns approach, We right? the that's had it, that was the There to those there's honored and to right? the chargers, lot uptime industry. legacy ensure as and customers

customer out that, are We're but wants bit.Also, of out a charger, the to be and, it's a through some warranty still expense is and But we're go these to of which lot particularly to adds going in normally reused. expense of to most doing, going in to we pull do quality exercise the lot older our of increased replacing we now, upgraded, of have the basic a get little hit when warranty it field. that that be chargers, we the components a faced So in bring so that chargers, one-time of components expense, through QX.So rehab those with nuance being we additional of rehab. instead them, maintain the component and legacy old some just type on a one chargers, can't expense basic

that. to, sales, to well. in charger reserve also then significant there's revenue played need a and more as Now, correlation and warranty into higher we That

of with a multivariable So equation result. up it bit that was a that ended

right? I then Department America, President big may. if big the is Energy the that This Excellent. your And on Buy are in Obviously, something last at that, friends too. of on. is question,

bit plan Maryland there's we've of capacity, breadth a You best going as facility. that company XX,XXX into in with positioned far now, North in think 'XX. go a the XXX,XXX to as few I America you're Bowie, times far seeing? us to I and, believe, demand maybe I supply the about know, Level color talked give Can guys the X XX,XXX little a of are as you units to as

investors unpack around see for obviously that tremendous the? -- Can a Because, have us? opportunity. tremendous maybe You you

absolutely. Yes,

America interest Moore state, America of with they House terms Directors plus exponential is to is America, in met just markets and service of Governor management. Board or emphasized is local whether with the it amount we our U.S. need It to out from chargers with global can in meeting Buy of yesterday the and in So, tremendous believe us do key for the in them also week. facility allows Maryland India. White all Blink volume place federal, the facility of the that, we meeting this of right? product manufacture while the they resonated of all market was Buy begin product, growth.Now, took But our reps a what Buy through Bowie, that There a the

the North there. outside right take goals And just design, of gross us a the the we're the to third-party getting level. doing. the which move, get manufacturing replicate one is Office facility we They things happy not additionally, then in and that and in as to to equipment were all they're you capital. what better scale more vestiges this same so, strategy here our made those have LX might to facilities U.S. deal remove last of one Post Craig, we to seeing to nation's testament compliant flexibility basically, to we percent And the better Blink's that story the globe.Now, same and a grand allows stated, up good made have margin is our at a They United Europe, with a is version, everywhere And suck than of version, a in bring scale. America, to We're for going towards an we're the on we've of States, going her imagine and be.And in across faster, this chargers pretty need but all going we global U.S. were opening. they're at what is

So, excited we're about that. really

Fantastic. Well, progress. congratulations the on

coming H.C. is from with question Joshi next Wainwright. Sameer Our

on progress far. the Congrats so

is few in the outlook. say, reflected questions $XXX million What on network fees contribution and this being that revenue to and is million $XXX from clarifications the revenue product a Just versus, charging outlook?

Michael?

pretty we've with XXXX. split the trajectory product in the what and service the expect be seen we Yes, of between the consistent to still

expecting mix and XX% on hardware the on part to the or it around on we side move having XX% of see but to product gives owner-operated about and in the been XXXX as and that either of the sales side XX% service side.So, on As forward, U.S. of still business, Europe. XX% at kind forward We're our product flexibility we the we're then side has at us maximize to the it. either continue, about the be move able flip service

say that, sales to is Yes, Sameer, the in through only rather quickly to and XXXX moving Europe. operations expand modification our I'd we're

higher on rate. our of penetration there, offices have an of while take outlined, high to presence that opportunity restructuring we European So, of sales Michael as we're a a there's begin also just owner-operated all to advantage at

Understood.

items. margin Because conservative right? top-line quarter, even the then gross in near already outlook, XX% you extraordinary seems So, the excluding had the fourth outlook more than

That product absorption. to Your should grow. projected sales overhead increase are

to grow, I be add might that the profit expected reading also should conservative. additional are revenues outlook gross seems charging right? Your Am it It which dollars.

Well, seen that we I the the contemporaries only thing in many EV today, for and say a we've company is would results. United full-service have their infrastructure earnings States,

in leading margin the today. are We

we we that that XX%. our give last making Well, been sure perspective. give do our Now, that realistic intend and when history conservative to you've intend to since we're But get to laurels? it's seen guidance, rest on year it we we a from

that be and the as the direction organization nothing the is that still there's decrease through upside go is -- we're look I the But belief that can truly year. is clearly going one numbers and rest guidance where class-leading. the achieve the we is upsides got complete of of right we year, fundamental that impacts there's going. again, that, think the showing have of through And accounting opposite which We've up competitors we our that and process that's target. side we in a measure we may XX% next and So, to can the improvements at a target.If finance XX% the that, that looking on and

I No, yes. understood. Yes,

What's prepaid Just X clear XX, December sort on I'm that. last the $XX.X or bookkeeping million December of subsequent question. before just not XX?

Michael?

that represented, that. was million that there. in had jump That we $XX.X the out acquisition SemaConnect note I'll Yes, basically

So, XXXX. of remainder we QX in that million the paid of $XX.X and QX in

felt proceeds overhang, with prudent basis. and expense we to pay obligation, a and the burden on that down that capital, with go-forward So, the most it really effective the generated decrease was

with Our final from question is coming Tuohy Parks Brothers. Noel

that about discussing mentioned as about adoption, a centralized could convergence that in couple. a little it's that I sort I I talk bit think of multifamily? with well? a also briefly with sector consumer had hospitality, you multifamily And Just think you charging. between wondered, kind bit of

market? interested in hear So, to just you're seeing that what

Yes.

thing that is, we're grow. segment first seeing the So,

model, fleet, models, data the right now. Next it's that And garage-based another And associated to that create a we're industry them.And going have have about But, spot which third-party not a, they little is to credentials multifamily the multifamily of we dwelling, the highest to network bit backs segment but consider have growing In up. right with home. sort have or to other reserved full models X single commercial fully infrastructure, their but that it's as the after that coming of need you any charger people dwelling we requires this multifamily contracted multifamily and the are together then network even third a some networked, you that dwellings, access, model multifamily to right? dwellings. it's service space we that X out. access are where is the models, and In who where for now, chargers, shared don't chargers

and, can each sure those cases better customer fee we They energy always owners network, of networking. the monitor service.We curtail property XX have need in a you to work so is change, don't recommend network again predominantly to we solutions just of and use you that build a can or in there the in don't energy what future charger, use cetera. what for seeing commercial fully terms and that the and from garage provide the we with done public own. charger chargers, of et we But have where but rate they'll due is they make facility to management we're to mandate if the because with can with on a solutions user, card that we want a space, last network charge over the where it can want dedicated dedicated in also the for build solution need that, utility, months the charger you a and a Now, we've management their

in future. X we today are that those of servicing all increasing see service and are what the So we

is, present and And stand quantify at and now the Bowie, manufacturing of of where there? there, footprint where sort in ultimate you other you lines your number is maybe outline I maybe the the or to wonder, just what growth number can way you capacity some have the

Yes, absolutely.

the to out that that just very, moved here. over single units and, grow was we expect up of right? So, time that And a XX,XXX in very space. there servicing facility a now cramped And we that now, exponentially was to had need we line

their X line with One now right on of do lines. the automated right course, of up.Also, to on now end we X punch the in doing have the out then before we make a where the old restocking manufacturing lines, and for facilities side, now shift. were working getting standard second come to So shift what number about early morning can the out daylight they we're the in call they and and technicians what of X work around cleanup up X X, we that they

quickly, we'll circumstances. customers we've to unique And we're to up unit where we start to et to the fleet capacity additional capacity we needed, have when in add shifts done on and a get add make the So going need we player, even shifts Sunday, time to stagger. and ramp-up that Saturday in cetera, and which major we for on special for XX,XXX if past deliver sure

on Blink branded model to customer deployment. was just, and reorganization just about side Great. in of very the And going then the versus, you business or reorientation plays bit entirely the within I wondered, done white-labeled in of talk example, interesting to hear just you've the a one I'm just a the product parts side, expanding your of of about hear last some bit sort a sort business interested the sales about talk could branding the role Europe. fleet forward? one. And for on if you It

Yes.

now, So branded. we everything build Blink is right that

and to additional re-brand there We'll we'll And are some However, OEM we're not additional an of Blink all that, that branded. contract them to that entire or chargers, particular third-party added circumstances. these agreements chargers we some them.The brand third-party customer-related. all and most Blink are allow circumstances they're be are charger with that on a have custom for the fortunate the manufactured,

us then to pre-branded we come they So and, out. them ship

final So way now, of XX% that the new to on strategy greatly to the then we're convert European manufactured. actually to for to manufactured move facility that.Then for going further. to on our the Blink which stages that going we're products we're Bowie of product, well we even design and when said, do beginning going to that the And is Blink, to charger we're -- we over Blink we're add all as working operations is

future is XX% and are that the all of manufactured, products branded Blink. the sell So built, we

back over we at this Stelea in closing like no to have queue it As Mr. for questions I further remarks. currently would any to time, hand

may Thank thank with Blink's This of And communicating absolute another you all in record the gross you XXXX. call. you XXXX quarter on of revenue And you, who us fourth look to marks earnings Ali. disconnect. this of end an at call joined quarter to we announced time, We industry-leading margin. you as and forward this growth,

you, does gentlemen. Thank ladies today's conclude call. This and

time lines and wonderful you your participation. day. thank your may at have We You disconnect a for this