Nuvve Holding (NVVE) 11 May 232023 Q1 Earnings call transcript

Good afternoon and welcome to Nuvve Holding Corp.’s First Quarter 2023 Earnings Call.

As a reminder, this conference is being recorded. It is now my pleasure to introduce Eduardo Royes. Thank you.

You may begin the call.

you. Thank are Officer Executive of call Robson, and Poilasne, Financial Chief Nuvve. Gregory today’s Officer Chief David On Earlier today, Nuvve first quarter issued a press results. release XXXX announcing its

Following up the will prepared questions. call remarks, we for open

would we forward-looking contain like Before I to you call statements. that remind may this begin,

statements SEC the best forward-looking from which materially events with these are risks forward-looking filings by they in these to These current those are risk our the discussed Nuvve differ today, Nuvve’s in reflect obligation or any issued forward-looking While release and or uncertainties are results website. future earnings statements that to to update judgment, subject projections. on factors available and could reflect circumstances. to Nuvve’s cause actual implied undertakes no revise

turn over like Gregory Gregory? With to Chief of would Executive that, I the call Officer Nuvve. to Poilasne,

listening day attending and good our Thanks, quarter to XXXX first for Eduardo We call. results all thank you in.

boost on additional same in are not chargers the sustain on the under flow At hardware avenues business more fundamentals during record encouraged large extremely period. that we by are time, is and of of our both It green we felt our the far have deliveries scale This rollouts. quickly We XXXX has our in always management revenue our shoots DC streams for near-term to a if. evidenced were was the lumpy the helping and plans is which orders megawatts when, progressed dependent been reach and chargers question bearing inevitable. by so momentum via of in orders just evolve DC sales improvement in service order and not QX. the

will not key the quarter, accomplishments note and briefly get following. we deliveries, in do the To specifics on summarize orders into we while our

the on chargers increased On fourfold basis. front, in a than by more X.Xx the XXXX versus orders for saw orders we quarter year-over-year fourth increase order DC a and

our doubled shipments fourth than than related and more more shipments we deliveries, of tripled sequentially charger quarter terms In XXXX. DC QX to

the orders first orders increase units of district. order the One to that Angeles were and a we the the of QX directly in in between big previously customers the Clean program. shipments in now funding XXXX round Los with and the rebates was School School both of supported Unified from affiliated portion small X-year driver Only EPA discussed record XX size Bus quarter of integral

that networks into scaling announced megawatts our We growing report led aimed hardware and K our strategic at in are the established up third-party partnership to also integrating February. by management thrilled quickly Circle we to initiative under with

in our XX sites summary, megawatts initially K and XX storage from Circle X In EV K to with and chargers X additional an stationary to expected fast yield at management stations under Circle service Denmark. agreements Norway

more XXX a demonstration these has bode K this initial region. across in We the than well locations combined strong should expansion Circle in two countries. for Importantly, believe that program

out, nearly the And all we you if estimated look XX,XXX know were XXX locations up, in XXX represent prospective, further management Circle megawatts this alone. an would For even Nordics hooked has if K that under worldwide. locations

been have on of We our K closely colleagues working integration. Circle with

stations. and demonstrate are activities today, we service to on we of ready stationary the progressing our charging the grid and with capabilities As integrated integration battery on are

year. partnership this to services of We back be expect in grid the the generating half revenue from

call about underpin a Turning our that over XXXX. our results XXXX developments improvement last in recent for since Nuvve showing marked to optimism

district this been Clean the for April program. a via disclose that to that XX Bus EPA our award be chargers. awarded today from has DC new record with in pleased school We we large fleet are understand School a order secured operator We to funds

roles supporting we which of leading all process, so the during Importantly, it one is not is involved application were incremental. it in with

we the for orders rebates quarter. hardware ahead, with associated receive the the during expect EPA purchase Looking second the of majority to

March selection. should customers At we their the them dollars, As optimal approximately we in a XX and with we been in submission sales evaluate represented awards process. our hardware our writing use school formally in translate partners high strategically include grant district hardware to government school level, discussed $X.X have million the affiliated districts Nuvve that which the with call, of working to help closely

in In for the are we we process. addition, orders customers other facilitated receiving have

XX will will and least nearly EPA at in And order XXXX. will number companies XX The be to to and as as an year Applications XX second will in phase. to grant Further, the expected in and awards XXX are be the will August school and and X allowed are XXXX for through awards in billion be XXX year, program late EPA to competitive the single-digit. unlike out November as reflects least larger between the this of $XXX of in round. based ready make buses allow program. school of to the initially, that participate programs. transportation XXXX change funding last up They serving will ultimately Grants plans round spreading over timeline up At well. such see last districts. pleased minimum XX scale applicants of for total the a be recipient only in million School school is to due part of with average April, third-party a Bus XX structure a was this we allowed districts, system. a the buses for round. of With districts. approval one January be awarding was they awards awards a buses minimum lottery $X applicant the per rebates school above for are This Clean however Round program of to elongated nearly a two Round XXXX

the believe act offer advisor for process. its only forward its month format stakeholders this Nuvve’s up this we efficiently as partnering to scale best we design, in the this electrify. to we the plan not award round. this the have not financing tech, We but be can new strength. involved look win in going that lead on and dollars grant Nuvve program also next and year. to the who and next strategy, believe trusted a they late through as We with ahead pipeline applicants assistance, of With into but build not We as itself implementation advice our ability and variety only a to EPA the in writing our for but win position implement a for electrification the demonstrate project initiative, desire, solution to fleets applicants management turnkey only can interface should to how play with also differentiates a year will

hardware related the so we can QX one in say in via support our will optimistic we for K. we with to far Further, have momentum, ramp solution in more the will be both that Putting with believe partnerships, of this XXXX win business improvement month continue position are to QX an are in us holistic solid continued that confidence terms together such ahead. by and a we seeing year as non-hardware to our sales in Circle EPA and outside on the new a inflection business,

that only pursuing differentiated We to ability our continue reliant other solution, hardware. into program ChargePoint we ability simultaneously operators with offer pursue large-scale while and a integrate agreements are to to where lean our manage on holistic third-party can

we the a to All benefits. be and while, will its for VXG continue voice leading

the vehicles aims Utility electric make and not On as bidirectional XXX, is in their testified the before California bidirectional The ahead. in hardware charging in years which I Bill March for adoption to zero Communication the this facilitate April, which and legislation. call, support in capability with I to discussed fact line Senate In expectation. exists could Committee proposed California of VXG Senate close and cost Energy our widespread a capability today of

appropriation for EV the VXG Senate, we through cost resilience ownership. will recognize of total and goes bill hope this politician that impact that the the have on-grid As transformative can and

discuss And results. now to call with that, to the will David financial I turn our over

$X.X a been last our results with product sales, XXXX we X record sell high shipments approximately that On by school directly electric total bus strategic impacted to. first that of by recap XXX% decision the alluded Gregory service XXXX. increased first In buses the QX of quarter not to since. Recall a Thanks, quarter repeated were of revenues more in has to first will and the revenues Gregory. apples-to-apples compared unique million number charger excludes that results. given year-over-year of the basis I generated million year’s $X.X start quarter, the

bus ago X% product compared revenues on for Margins service XXXX quarter year the period just to sale. for mentioned Margins depressed XX% the the in due first were to first were quarter XXXX. and the

reminder, standard from on gross from gross XX%. but the approximately terms charger. generally DC margins at generally are pricing margins As in charger of service Grid of mix. XX%, are depending charger revenue AC revenue a fraction can be to a dollar lumpy XX% margins range small are margins a XX%, DC while quarter-to-quarter

XXXX. million depreciation expense, quarter the cost public $X.X Operating in in $X.X of primarily XXXX, of quarter first ago to operating the fair of sales, or of optimize was costs, And ago decrease we excluding in cost costs primarily first million run the $X.X expenses $X.X payroll first $X.X was million $X can Cash discussed compared excluding of in in quarter Other warrants reduction from amortization quarter continue $X.X was The million for This lower first decline lower change million the cost quarter. XXXX to XXXX. at near-term. company quarter in first of of a evidences was $X.X and versus attributable sales, million the the from our income costs. XXXX in consulting gain and of compensation non-cash stock and initiatives to fees, declining the year approximately year of million the in per the quarter previously to structure. The in we reflects income our value believe million quarter. the

Nuvve net in million a QX The by increase a year quarter Net improvement of net XXXX to in of was losses quarter result in common offset of $X.X XXXX. million. loss $X.X of XX% non-cash loss the also in ago a the increased just first stockholders in the million of $X.X primarily gain loss to mentioned operating attributable from

cash proceeds cash proceeds and an to briefly charging in our $X.X in had excluding end leader on February, combination But monetize infrastructure stock. Now, million cash. as call, capital through near we we quarter. million Further, I in $XX.X of in were presented turning approximately resulted our we to first will direct $XXX,XXX balance of of raising registered XXXX received software. XX, last in attractive a we ATM an and On Switch, March initiatives. our in our summarize, operation our a with $X.X of update restricted This million sheet, provided a QX, in new during from the offering the opportunity of common investment maintenance raised

in had registered a prior our XX% direct technology Yet raised end the able the generated additional than to return Subsequent on that benefits this offering previously partnership of we an common investment less we $X and same the million disclosed, XX-month in are We important and to as quarter we a stock commercial retain April. of to divestment. span. through

amidst continue focused This equity in the ways facility offerings. securing potential includes to and turbulent ATM other using We our capital market remain conditions. on optimal

by investment $X.X equity first million, offset balance from our in the operating ex-working capital million through primarily attributed capital. the by decreased cash Total cash used $X.X to sale of the sale $X.X $X.X raised working of of the Switch of net in and activities quarter, during million positive million

sales end This to have as this continue to we $XX million down receivables to compared discussed, at $XX.X compared expectations prior end expect is last with positive up. the inventory. we XXXX increase million charger consistent our previously by quarters generate capital As the XXXX. compared higher future at is anticipated late commentary increased the million Inventory to as to The million quarter to million the $X.X pick $X.X during quarter working of regarding decreased net XXXX. attributable to in of our investment bring in first by during activities $X.X shipments declines inventory and in $X.X in to Accounts million quarter we quarter. of

revenues. turning megawatts Now, our service estimated management to grid future and under

deployed we Japan. from market management which of Europe U.S. light-duty As and located in in and capacity electrical to electric deployments school in fleet batteries. Currently, bus VXG States, United to quantify in a addition primarily aggregated reminder, metric under amount our is megawatts and of the Europe the in VXG chargers, throughout deployment the the the are these use stationary batteries and chargers are

up end EV megawatt the increased under and or XXXX, XX.X% managements to the were basis be management increased the from QX, year-over-year may On the XX.X under over at terms while composition in the quarter chargers. quarter have a Megawatts by its megawatts XX.X% many XXXX seem increase from batteries in sequential from X.X quarter of in megawatts first of the improvement X.X% stationary levels aforementioned charter in as X.X% first XXXX a low yet fourth charges simply by megawatts deployments. XX.X%, This under relative issue, late to management timing ship to commissioned. from reflects

As XXXX driven acceleration second results of the the the megawatts K in under report and management year, by would to our quarter such, expect of and we Circle growth back ramp. half with

in to our resulting service up share to or larger a service revenue opportunities grid deployments of growth As strong revenues grid will making in noted on total revenues the Depending relative geographic service we XXXX a revenue expect March, vary. share regions XXXX, XXXX grid revenues. our in growth of hardware we outpace of revenue

We kilowatt services we up year, are are opportunities to vehicle focusing on. of $XXX revenues grid certain services, service These for merchant in seeing expansion to revenue key And our a management year kilowatt $XX services opportunities. of include with currently and services. between markets ranging per planned combination service per grid grid we’re further contracted charging seeing VXG revenue expose Europe, and

to generally nature as periods our these Given years. to deployments, recurring XX the XX of revenues long-term long as customer up are

XX. March on backlog the turning Now

$X.X orders increase our and was strong while a from of services a increasing the million, shipped units. hardware April. to $X.X backlog backlog to the QX, record high, modest reflects we $X.X fact were growth The up end that of also in we million Subsequent million. saw Our by number

grid call to believe XXXX, increased higher out play charging deliver revenues, evidenced to the and I operating increase through continued the to expense and increase. opportunities including back is that on an key scale is we strong early this in our station service QX. in same to our as of K. compared and All to and such acceleration compared and in we hardware days At our megawatts operating Nuvve our order structure. the single Circle win turning QX ability our under costs come the of history like operators have Nuvve’s growth operating QX, grid metrics generate would with his Gregory, and and services station time, April, down management, Before metrics by to in as megawatts materially revenues backlog track through of charging operating reiterate up key valuable largest deployments demonstrate saw recognized are in ChargePoint management and April the while improving, XX% revenues, it We while to still XXXX lowering end under our service as business

Gregory with conclude And that, our you remarks. prepared backing to

our already and larger QX coming poised chargers EPA and up, awards DC we wrap and we the won, on record in To working deliveries quarter are be award another is strong the to in for in. given fund XXXX have orders David. Thanks others better QX

such because year. from we of with We other up Circle are good you customers agreements quarters. benefit look and to our over running the we others partnership the K to opportunities making showcase that to the on ChargePoint forward to coming partnership think and announce revenue similar this getting ultimately momentarily same And generation At the operators K time benefits stand in Circle later progress of this to that balance hope work the year. do and

would to Operator. said, your look in you for call August. for the turn We with that Q&A. speaking the to now our I participation to With back begin forward thank operator like you and

[Operator Stine Instructions] And Craig-Hallum. will from Eric the Please first question go from be ahead.

questions. Hi, everyone. Thanks the taking for

Eric. Hey

Hi.

So, yes, calls this afternoon. I have jumping been between

but step just I vehicle asked back, that taking always at about I So, there all guess start is beginning to discussed ask vehicle grid not I things capabilities, grid. over develops, a functionality. I question to rolling are out I And new sense But who better customers it think equally. as still have apologize we market a call. sense same you you starting will anything I starts call but that, created maybe of lot a to noise the your I time, if early, it’s move is a the the VXG of And that just it’s views EPA as have and Do forward. the get the of know you solution, others versus programs may doesn’t are

in see such is work been and operators have here to us segments, presence see initially also in I it people we reaching all where U.S., and districts, example, with a have for because more the we think clear but school the out with in more and coming school bus, are as street we that mostly that working us. to and coming wanting

there our yes, at we key a is providing in which such the have, now is So K, because order a I that chose why value is stations must there control happen they fast CPO they space we that platform at know we is they charging said platform a highest Similarly, the services. key are think in those leader. us reason as Circle understanding and that the aggregate is that that where in pace, grid those very to them to have

right. just that the mean going bus And Senate, is in business, capabilities. news is at in example, – the shows This building of sold would vehicle VXG why California, the of would good and vehicle in the electric very is And here critical how in XXXX, through also obviously now that’s XXX, every is bill business. California level, SB the the each and political is up, but by for that bidirectional building understanding for awareness So, the managers privately. school not the it’s fleet have growth us, our the important that

just to thinking and seeing to steps It’s going announcement would you I and you mean know industry, route, something guess you people next K. for that just how Got can least up that, have I I reached this I at Circle mean think watch and out that love same doing. we start do or brought think others about about upon it. But in I K. is that of helpful that? about, kind think replicate what to should this others hear that Circle are beyond

where on know happen and in that Okay, platform So, and work cases in is are out some the we of we first, potential communication is needs already link between our Circle infrastructure the to deployed order on to today. hardware the there something integration some rolling create some sites that

them. And we so, of XX – to integrate with middle in expectations with this for disintegration so are of and and on plan, the in targeting our right terms sites

we definitely other demonstrate it the understood work because can first others so how to that and Now, and think it’s well. all, Norway very demonstration once for exposed is to it replicable, they is and the an space. Circle But you EV bring us, in it a brainer a so also repeatable the so value I in that’s yes, of with rollout, rollout, it’s will with why essential the such us they are no become for players an headquartered infrastructure then K to come

is vehicles some also different stations, of where lowest of the be the in of infrastructure infrastructures This total type very might for suitable, have in goes transit them. can valuable cost a charging that not right. reducing have the cost example, but potentially the charging and charger VXG for with ownership the bus you you those at depots might most infrastructure, fast VXG be Now, gas

CPO out case rolled question So, this on the implementation, going we across of CPOs to is of a of are if variety that the type very confident time. use over be

that have already interest to your to think before just way, run Eduardo, coming based Circle start? it with really see on do for the bit you K you you inquiries or the something project announcement seen be is demonstration a some needs

things. those of any announced not have We

rollout. is can from a I it’s things, my forward I value can’t So, that an as the is, I on got very disclose and infrastructure am to the really see and final is but outcome think on to such number putting we perspective what going to this, – that the bring of we overall, there looking actually this

Okay. a lot. Thanks

bet. You

Instructions] The Brian is ahead. next Please from Chardan. question Dobson go [Operator from

for you Pendy Hey, in for Brian XXXX, the pricing? it’s the chain issues were Greg just in They and any even any share my that spending Thanks a market are taking on you just Dobson. prices questions. also leaving were lot. seeing us were school of of think bus given with Bird in like away. pretty never what on terms going Can the on elevated, I on, time Blue places buses. supply lot color right at We were

So, EV normalizing buses? all at are in prices school

know, don’t the don’t normalizing. I is I would use term know I this if yet.

which I trend think that would is going things but tight. pretty you down they are be I to back going that go, time. would think price And the to over still think where is go

kilowatt what more is kilowatt run of hours school hours had I or now hours in are sizes increasing to those a the of norm. XXX XXX lot kilowatt hours order XXX it that battery think is XXX Initially, in of kilowatt them becoming see buses. also a we we

same at So, those are capabilities of maybe time. vehicles the rising, prices the be but increasing

the And guess I front? can on then any are color you on what you with Quasar, That’s residential on with Wallbox your that helpful. anything share seeing, the relationship

we any point. Not thing that at this share can

understand. Okay,

Thank you.

for Thank our session. you. conference Poilasne question-and-answer closing over to Gregory the turn remarks. back this gentlemen, like any And ladies and would concludes to I

very news a hopefully seeing XX you much for some everybody. exciting at we looking in Thank time. forward are very And days to you very,

you Bye-bye. much. So, thank very

The presentation. has you for concluded. sir. you, now Thank today’s attending conference Thank

You may now disconnect.