Nuvve Holding (NVVE) 10 Aug 232023 Q2 Earnings call transcript

Good afternoon and welcome to Nuvve Holding Corporation's Second Quarter 2023 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce Eduardo Royes, Managing Director, ICR. Please go ahead.

Thank you. Gregory Officer Executive of are Robson, and call Financial Chief Nuvve. today's Poilasne, Officer; Chief David On Earlier today, Nuvve second 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,

We hello second Eduardo, and quarter Thank results to call. XXXX our you, you all. for joining thank

quarter We metrics, are XXXX, strong megawatts have achieved record yet growth topping quarter again proud management and record under to revenue, in key and across another delivering in year-over-year the of yet QX including set QX backlog. order a

XXXX into hearing overdue in optimism point that discussing we an specifically interest vehicle-to-grid were and EV in finally both technology of offering. our inflection adoption and came differentiated We our

increased Our in our of first and the have half pleased results to visibility the we business. in year evidenced are this,

and than the half record notice. in available today and just infrastructure company across the Our conviction deploying of proven pure-play remains improvement and Nuvve the technology scalable are a landscape VXG track optimism, year. charging only the however, with more and much taking worldwide and commercially the players activity on orders EV grid funded are in in first public

than increasingly one, Flow in As we with management areas higher of interest same through Control importance and and doing The and half or the participants technology are a our able or charging electrification forward second technology ago. XXXX this are believe leveraging explore providers. the as fleet about to be our today, solution. across being go companies to recognizing, look on of and is ways EV from noticeably we Power was X the sit aspiring months it we just relationship and the holistic said to Industrial IP VXG work momentum with to and our partner which we us cannot X of provide two, networks beyond. looking experience here all AI; value in as We building such the

and Now, accomplishments our the to key in quarter summarize since last call.

did we specifics our prior a The more big we driver other and quarters second XX% record orders last orders that the DC than improvement quarter via one discussed this this order, XX the procurement the was a noted districts school was funds EPA was that was largest we we the unit of district At for grand we Schools order time, the to of As time, chargers out over of but our that on than in go May date QX fast the supported into that than than increase awarded Clean program, in to more process. sequential single not point increase call. over the saw won't our XX% on XXXX.

in of of provider We Massachusetts. Beacon the over and independent family fleet companies vehicles. XX,XXX this U.S. the comprised was Beacon a have disclosed that large member operating is since several for a order to Mobility companies of

XXXX across the orders with rebates We words with school in associated EPR districts multiple previously communicated also line our for received expectations.

significant the backlog recognized the majority shipped likely shipped over of as second EPF remain in funding, we the the some and the charges revenue to DC half with While of are have and a associated year. be

as continue XXXX is districts see Looking Further, of deadline we installment program, ahead, away. than has this potential less we massive of that beyond weeks the part look to which application X supporting ever-expanding school an forward additional this. an orders of to pipeline

far on QX, quarter our we to in as and make well. initiatives progress continue strategic During so the

launched in out and sales develop supporting bus sales to Corporation program. NUVKXX executives [ph], saw enhanced new we build provide student significant North dealers. marketing experienced full of fleet network to negative And Bluebird, support order with relationships service the and division from the a in Versik of QX, announced Bluebird electrification the In a hiring ecosystem growth transportation dedicated David the Perigee for At stipend transportation. their America to an we range of importantly, and EV

a and on to touched decision. remarks, a my It earlier electrification alluded As simple during not process. yes is no our in call or EPA is May

-- come curve, understanding decide the or exactly customers David. transition take well with work those to process have gained electrification better in ability a or and EV how without that we it for their invaluable. learning the are bringing what electrification convince this people optimize is to And interest, future relationships they by As best the time is them commit to to basis they hesitate plan up may to an a can on through to for but step-by-step stockholders on

getting lumpy, lumps As but orders alluded I frequent. just and more appear be to, bigger the be can to

electrification of we're District to as will commercialization School so well up to ensure advance the be proud In maximize our also evict the AI capabilities. we scale critical to second our journey. And opportunities look will quarter,

early is customers. called that has held the have tremendous entered now VXG enabler why capabilities, our we both paying EV-schedule into in able integration more related fruit this of health. to terms address we and explore are technology capabilities end power Astra better and we is, developing be view, to view and the The to We it energy a readiness, differentiator strong maximize AI market have service AI long in a us, provides to a optimize forecasting sales management off, AI to The is energy potential work and JV our a XXXX, the leveraging platform. and into forecasting of announced challenges for and which indispensable vehicle The invaluable requirements. are in values, by battery energy our we forecasting in the the

the of and of put the With thus vehicle the VXG, an pain we a capability we capabilities. with frequency strong market. ultimately are regulation electric eliminate AI points VXG point make starting the and combined owning Today, enhanced seeing can various are consumer power into practice selling in

regulation years and market providing example in Australia, market to AI leveraged the and frequency benefits Our capacity technology bids the optimize just forecast energy to of that is experience energy us integration services is enabling primary X-plus in for This customers. Nordic therefore our optimize AI our to and integration our able us With and reserve is platform price continuously Nordics. for one from deliver the Nuvve can customers. of revenue

Astra box In by charge management our July, we Newbie AI continue app. to integrating into capabilities evolve our

the words, charging on revenue therefore, battery optimize now equipment enhanced FleetBeat power In the customers our all customers and manage SI of better reports. Our can to of functionalities their charge, charging other maximize technology. generation, to our truly these the and use thanks can status, set up activities

gift first our critical is quarter executing how strategic our example platform the a of great the few integrating on hardware part is into strategy. a of on as third-party strategy. last in initiative on with And Nuvve partnership discussed its Lastly, Nuvve’s we have calls, is the network Saco front, established announced

to [ph] and in out continue technology of We site are across we with the closely work rolling deference Siccar integrating, selected. the process the and

AI platform services. Our is advanced also providing

to equity or Senate VXG had more quick David, the electric vote societal vehicles were and on call to turning of see can last the Bill unlock California bidirectional the of benefit, make requirement discussed on At vehicles energy approved California [ph]. think SBXXX the a to in to recognition update a SBXXX, intends for a with [indiscernible] as calls. sold end electrify. and We the that of XXXX. bill that is charging I XX have Before pleased states which May, cost this by X consumer the the a few we more

the continue with go assets through on on for assembly would SBXXX. favorable if appropriation have I'm outcome end the in thereafter. dialogue the It this expected to of month, this the optimistic that go by and [ph] bill a bode is and the state topic, I assembly good will for successful,

that, discuss over results. to our to financial David With

Gregory. I results. Thanks, start will XXXX with a of second recap quarter

over generated revenues of $X.X on the growing XX% Further, backlog over other projects. Margins solid half as fast the in first quarter, of lower total quarter of DC to in million remained levels generation XXXX, for the revenue second and XXXX, than revenues XX.X% the QX of unit of product higher we of our In million of service from X.X% timing the was through back increase in and in quarter supporting support XXXX. chargers than a for were compared expenses of which XX% $X X in quarter of XXXX the associated orders and million, to, due with an customer the of which costs $X.X turn to in Gregory lease long-term installation the arrangement will second long-term XXXX. sale second alluded QX QX impact excess elevated XXXX, at

periods. installation the Under upfront, expense sale, will be accounting associated recognized a of the lease costs large revenues hardware were future and portion over rules, the an while as recognized

standard pricing the from reminder, cost primarily the second smaller was a compared lower $X.X XX%, million service charger range revenue in in from was excluding of the generally XX%, $XX.X lumpy fraction a of company attributable AC The XX% of quarter-to-quarter charger. As XXXX. quarter of revenue on mix. Grid are margins but while margins DC sales, quarter are can generally Operating charger DC at the depending million to terms to of decrease margins to public XX%. costs, for dollar margins are approximately XXXX gross fees. second gross a be

declining was sales, expenses, second and unchanged $X.X depreciation excluding $X.X the first from amortization Cash second quarter and million operating XXXX quarter and in the the cost XXXX, in from million expense million quarter relatively of stock of in XXXX. of $X.X of compensation

-- our expectations in cash on from million QX ago XXXX a for fair expenses Other value $X year quarter operating ago benefited line Our down $X.X was set income change year million million. run XXXX, the quarter. were value in the The call $X.X in to period awards. results gain from quarterly of the second approximately earnings in million May at noncash the $X.X from with

to to increased primarily in $X.X net million mentioned a second XXXX the Net also quarter gain The in Nuvve million of year quarter. was just result $X.X a from XXXX. of the loss of loss in the noncash increase ago of stockholders attributable common QX

$X approximately cash to cash. funds in was $XX.X excluding Included of balance June million in Now our received. EPA million million as XX, of restricted turning our had XXXX, cash sheet. in approximately We $X.X balance

We million in net third expect activities Total to XXXX, quarter funds of of XXXX. $X.X decreased the the cash during these million XXXX. in operating million. cash from was second used $X.X during to the $X.X quarter customers The deliver second improving first the quarter of by quarter

the operating in $X.X quarter. of funds, activities used the benefit for cash second net was Excluding EPA million

the million ATM through our quarter, offerings through in $X.X raise net focused direct ability our raised $X.X and remain a During or at-the-market million capital. including or We million $X.X registered we RDOs, facility. on second optimizing to capital, approximately

we've and the us the support allowed our funds few have facility raise past to As the structure incremental demonstrated ATM over business. to quarters, REO

can put currently provide asset-based which Additionally, to in long-term a we place ABL, working facility, lending additional liquidity. are or

sheet. the by in term. million expectations $X.X near consistent anticipated first continue to trend million of is commentary inventory our our We to we end amounts during underlying facility conversation based and and accounts ABL receivable model, debt inventory compared our in $X.X of quarter inventory million usage, shipments believe up, of ongoing cash accounts regarding The the decreased prior given capacity pick at we the upon well business the borrowing declines XXXX. Rounding in type quarter on receivables. This with carry the a $XX of aligns charger this the is balance out inventories as our on our to with expect

VXG deployments Europe under management as batteries. revenues is future light-duty from and in -- which U.S. megawatts primarily the stationary in to reminder, market aggregate metric to used megawatts in of fleet the a service quantify addition amount electric VXG school the management turning electrical a deployed to our and Now and of the deployment are in the chargers, in grid estimated under bus capacity

Currently, located increased Europe the the these Japan. under throughout XX.X%. in management are XXXX to XX and chargers and Megawatts X% the second batteries from first States, over quarter quarter megawatts United

EV from from were megawatts X.X megawatts On megawatts chargers. under XX%. XX.X composition, and increased its stationary of terms batteries management a In worth basis, year-over-year by

in stations North our second Circle geographic in deploy on megawatts under Depending of continue ramps management America charging regions K acceleration will as the our vary. service the more opportunities our We we as XXXX half an up. grid to expect revenue and of deployments, in

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

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

XX, $X.X million, March XX% reflecting acceleration to our June turning $X.X adoption. EV backlog. on and XX, an was Now, our of backlog million up from Hardware Services On

call first we regarding of XXXX, delivered on methods. I note the across an have turning to improvement would in with into back the half the optimism Gregory, like to operating Before we the year that came

months For XXXX, service year-over-year example, fast through first of to the first orders while charger managing X X.Xx and the our of maximize grid compared a costs DC more year, revenues we liquidity. in the unit recorded realized we increase to X X.Xx months

of Additionally, date backlog, set the the backlog a half as backlog up within customer to XXXX, back is will at future The of this elevated when periods the backlog recognized balance be or back our delivery XXXX. revenue performance million anticipate strong in us in our while expected of remaining for the be XX% after XXXX. -- of we half the $X in looking has approximately underlying existing recognized

existing solid under future the position megawatts very in potential during believe revenues balance Taking backlog, are proposal management into in our XXXX. account addition our in the for from to existing pipeline, a future revenues from revenue we generation of expansion we and good

revenues course, forecast. may lumpy as time delivery said negatively we to Of can customers have be out their earnings revenue any push on calls, at could which this and previous dates, request impact

previously that the come issues not of the provided have the but chain our days have transition we revenue EV of X that of sort optimistic more online We [ph]. as of plagued are energy backlog and expectations, any supply builds, early visibility into programs much

our can for regularly Our that provide revenues. revenues will more become and more clarity such on more predictable we outlook

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

November in will -- on Circle getting the seen today continue becomes and up EPA in our progressing are myself evolving role and forward specifically us updating technology joining have to the enhance care Nuvve QX, you its strong energy so VXG and to further the and far conclude, call. on XXXX. underpinned in business running. of we VXG and you as in growth. our of for Interest we our has program play the appearance pleased the To look increase David. and increasing Astra, transition thank with UVX Thanks, Clean offering to our in team And formation progress continue with The KOBAS while [ph] program the

like With to to back that Q&A. to begin operator call turn would said, the now Operator? I our the

from [Operator with Instructions] Stine Eric is Our first question Craig-Hallum.

I about out, OEMs or bidirectional know starting noise a of and is the capabilities. just that school making big primary bus focus a your Maybe part bidirectional more of on industry, the lot but charging, more focus

I helpful. Nuvve? love thoughts auto out offerings? potentially, those coming any world hear be mean you there's to any OEM with if interest those curious, just along lines how partnering the do Just So view I would in would of

in leader but just are not we subject the perceived also the mean in definitely Europe and I the in Japan. in I think U.S. as and

think basically F-XXX would are the next I that is to is about. and with question other you my the there question OEMs they are forward general the do see for really and are it what customers piece, the do the always always going -- in interest And that powering are what big are I do so I do features care Or pushing. functionalities partner? And That's And vehicle-to-home. myself? that with say I a the

way and functionality of to full to a we charge how choosing promote not call that doing about my that's the management place, Now really you see it, to also is can really we where pitable fleet, the applicable do think the get what cost-effective features it's we in is you to is then And make are but today. who can customers. And it's a the life that somebody we car. once have time truth spend what of lot that And consumers. easier piece I a area an on definitely of just

as and area the that something and this where market Is be the realize play some this out of expanded. Is at Nuvve how point? gets this we expect would potential it to into could people an

Yes.

really value is on to very school are grid certain -- we This but being the focused see different addressing consumers, and today. is more out are then app infrastructure we where areas. how the the rolled consumers today support the the with this We which but involved -- One we because, fleet in provide face one, is killer Care, bus extract Circle services. in volume is we the for do now example is platform that with is also

that revenues started the you And I Circle the -- it I with missed those it if that half? call, in guess, have the your in might of was is think half. still service generating but then second I And the curious K, you second it. would expect plan grid sticking here that earlier revenue or kind Got you rollout? you've would start plan in

to platform expect second our and in to connected the revenue half we of We year. have a now, few happen the sites definitely

last maybe me. Well, one for it. Got

opportunity X to fair got is it EV. an I'm both to going Japan? side you've me applications. those buckets And under how where just maybe area of -- beyond I in and is or Just curious, EV I an mean say the is got is management, the on stationary there what know you economics might remind stationery megawatts that the between differ the majority actually be could you've

Yes.

the So time EV. have you deployed is the see I the that some site, mean, store stationary general on what might I same at -- as studies we in a think

And to able unidirectional, provide the and so bidirectional to we want EVs and storage. be

those see the all of to compared we resiliency. want value So capacity really be what storage often But of to is to size we very the is deployments more definitely rapidly dropped provide the from extract providing it's resources. the and that EV very hard

multiple ideally, to variety we EVs, Now the like bit like where region with you can you doing storage, done, then services EVs, primary have the storage, to is in what we is have a one services, look a storage, But at of where right? are of drive Japan, what some how do at is multipurpose the which we vehicle do right? in been we've provide -- we just also doing great are Not around. but purpose connected. we thing quite

the so at storage look we as look the purposes. and same way station developing really in And we multiple BD at

I out will the as couple under growth EVs, look the management But real years. a that's driver surprisingly, be that it. vast majority Got that, would we of not you of mean, say the megawatts

Okay, alright.

[Operator next Brian is Instructions] question with from The Chardan. Dobson

are with And you stats. do expect at to EPA continue impressive order month, spur of potentially the through those back back that the would demand half? year? momentum deadly that XQ, expect the rebate [indiscernible] also later you how your guess to in half the in I looking this So

we year. But follow I let think order -- David, start, saw that you last right? lumpy, this is think that's So I'll can and mix I and then up. I

associated more on different are round opportune are great, are we it's we excited this a So different build have that deployments, new but about we on very it's the it's with one we very hand, EPA backlog larger it. of projects, to. the about excited of really way next those. year is This deploying delivering and it's And rule,

that XX% really Yes. Brian, is we're helps revenue generation backlog we what balance And And seeing us some think I'd year we've said once the that matter contract the in the just order in the because our year customer is that $X a to flow on said, get we strong through to the up you based back given. timing. the the roughly of activity, reiterate million of about date for which that already as about prepared of likely half been remarks add locked Greg to of -- our

order we we So pipeline. lot to us of the revenue close our the growth going incremental And are people you're half going hands back what can about see more good helps proposal starting their higher get have of that see organic a And which course, our really year. on feel activity. on to because we're our into to and is pipeline vehicles, on starting get the pretty

did to good. technology very those roll that choose expect future? Nordic Yes, to United AI in you we your turning near countries? just to the Why see further guess I integrated initiatives. States the should And into in the out

sure, markets being for right? -- bidding out right? question to in we in is we the that why X is For of going sure, there. combination things, are started The to everywhere, fact it's Nordics the the be is One because reason rolled two,

that important forecasting of of is [indiscernible] the the platform, forecasting here so something it's vehicles. the area demonstration in with market, the And combined

But there, be we to recharge when forecasting And think to so leaving, we that's you they're to there. going of of are going like to sorry the to about able when we the feel crisis, [ph]. capable if need they're why vehicle forecast are be energy amount -- if energy and going

basically procure able very in are We hours potentially. early XX mean, energy advance our customers. for to I

on potential to exposed the costs. So volatility to that energy being avoid

could for relationships market have size regarding I school for that that electrification in know districts good quantify very that think for finally some the Do the likely the way school market, of school leads California bus region. you us? that California buses. you me, with it's you potential in And

Yes.

if a it at look of different mean, is of XXX,XXX of U.S. a know, look you average have usually year. Those years, there replacement as They rate the on at is school I first XX it all, in -- But roads we XX,XXX might volatility. there about per bus the because you are in ways. So life

very kids that So number. school it's large a are year. transported million XX every by bus

variety buses how run. those of are a is being there Now

got large market the X the of It's in bulk a being the school of terms dent school hundred first school you owners, smaller owned are fleets scopes. market got fleet districts. the But that of very smaller who few that of bus. buses is owns about and You've or largest the is XX,XXX districts to the the school owning buses operators a are XX school that medium XXX,XXX bench of But -- bulk distributed. by running that

So it various how is a and addressing very you're -- market it's it's important. very

time. charge rising we'll districts September driver, it really of that two, or can to we a be districts. the At process on going Nextera driver the the [ph] what that's deal they call or for ready do lot fleet from can for how priority integrated needs be the helping school give electric soon producing possible schedule. integrating one, of it? the of that Number operators internal -- help of the VXG in either releasing how ready sure so if end is the do the is next to if with there And PC and possible bus make our back as as into vehicles. we it's as the about number is problem, And fixed the you owning there compression co-districts is so that the fully why as be problem, But where bus that co for really understand transition the are a day, those making those management, to easy go are the is is engine they a cost on in platform

like I remarks. conference to turn the for our any Poilasne Gregory concludes This back question-and-answer session. to over would closing

Thank next forward today, for we looking [indiscernible]. are our Thank you us to everybody you. and listening for

The conference Thank today's for has you presentation. now concluded. attending

now may You disconnect.