Nuvve Holding (NVVE) 9 Nov 232023 Q3 Earnings call transcript

Good afternoon, and welcome to the Nuvve Holding Corp.'s Third 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.

Thank you. On today's call are Gregory Poilasne, Chief Executive Officer; and David Robson, Chief Financial Officer of Nuvve.Earlier today, Nuvve issued a press release announcing its third quarter 2023 results.Following prepared remarks, we will open the call up for questions.Before we begin, I'd like to remind you that this call may contain forward-looking statements.

implied reflect and current actual uncertainties differ from statements subject they results forward-looking projections. materially risks forward-looking to that those these Nuvve's judgment, best are to While these by could cause These risk filings SEC our which in and website. today, in earnings issued available with release the the are are factors discussed Nuvve's on the Gregory that, any reflect future to Chief undertakes obligation I like of Nuvve would statements Nuvve. no to to forward-looking revise call to Officer Executive turn or Poilasne, or circumstances.With over update events Gregory?

is AI of EV our generation DC our The evolve functionality revenue FleetBox number charge platform. maximize rate, charging of first Thanks, Eduardo, of going our quarter and and play to continued VXG to a XXXX the accuracy in preparation.In all. July. and call.We so into ]. with than connected for our helps year, hardware out, usage business. orders integrating With well-overdue higher you Nuvve's half third revolutionizing critical with quarter laying Momentum Thank QX.As in bidirectional the on set growth October, continue technology experience AC to and into capabilities app August our XXXX. comes to in third XX% we us we AI the globally, Astrea XXXX we and of began this in GIVe a and XX to AI call, management stations at much we good in the record bolster deployed sales and came were our evening joining accelerate deployments by Astrea our inflection differentiated to far our discussed maintain we build a a optimism that as edge enhanced foundation time to in results In [ record software-equipped

it our only more year, in benefiting awareness increases megawatts service VXG carried was two, dollars, to future student full potential June growth our revenue accelerates value expands, one, grid under more and the it of of not pipeline immediately revenue; management launched which our out for demand in services.These people order While and strategy, from growing were critical electrification our is in Nuvve range as: of American by products to our does provide and correlate K-XX, North order this market to which, software, support deployments services in of to transportation. a fleet turn, with for

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financing conditions. and we in additional market to finance Moving wait methodically our include debt evaluate incrementally while all may options for This continue liquidity and/or an financing. forward, improvement business we'll

towards our to been David lending upon.We to which example, For also optimize expand work our we have asset-backed structure yet reducing runway. facility, putting on will may place again cash working cost in an continue

or into below This reducing our per result rate of the functions. Specifically, million we is XXXX. we and cost are legal across administrative working to our get expense towards quarter as $X lowering at cash

in a should that still putting October, press out The manner this priorities.In patents. our messaging with commensurate issued are clear. our release platform investing focused discussing We release into our is be a we behind

only and a such a power track and proven in available market-leading and pure-play get to energy VXG control, With at deploying capacity on time, after and charge expertise public is areas belief technology power portfolio and significant both expect commitment in rough worldwide.Our been as we track have capital ahead unvarying, current we we investing the and further IT today scalable transition have a with solution. commercially offering, VXG with to company macro Astrea management patch. developing the a We comprehensive for our record backdrop flow and markets our growing vehicle-to-grid in push technology our as and into AI, we patent this long remain resources role the and back the around

towards to in and in decade.The similar point funding be EPA Rebate up short in can Notices January, EPA our of August, third-party last growth be of for which even of in as this, the installment there already With as on GIVe initiative results, rebate QX a in a K-XX Clean look to School January. out strategic integrated orders half software until expected XXXX winners passing is funding a the more Bus million We in start are we half charge later we we in expected will forms recipients was to the are today, throughout in more our our update relative This with financial to first window forms grant under earlier of sales addition new in of notified closed Round next of and trickling application our We and $XXX of our with completely EV have it XXXX, process. part better of $XXX did it has about hardware.As competitive it positioned.Before are dedicated Program operator tailwind purchase after we be critical the place awards Circle opened later VXG expect look To and this David about in also to unit, the in piece energy we for of a as round. in increased the second deployment are X to point having orders partnership XXXX, issued XXXX.Since our application a be this round lot subsequent the the Nordics, hardware. its inflection open hopefully the adoption march will excited April confident accelerate XXXX. rounds. submit our Nuvve through The critical process. their big end success as largely over to the round the spoke million platform call, as into for this subsequent be transition management on for to in a K expected to and megawatts we year round order our are XXXX, run to reimbursement. forward month installment this we even discuss

revenue generating and expect the begin participating the market the in end We to of year. to prior

starting the region more growth are way beyond in generation we the paving you. in exponential importantly, in for XXXX for More revenue term.David, management megawatts and long under material over the to over and

the with grid prior September increase Thanks, were X% I year heavily will period. XXXX $X.X service large in XXXX. X.Xx service $X.X X period, revenues revenues the XXXX, grid million, sale the of compared through million, to increase.Margins compared revenues revenues $X.X compares were of this third service the product the we approximately and increase XXXX, for by buses. service and in recap third buses.Grid third quarter $X.X million the a the ago results.In threefold was million of revenues hardware for impacted the increase with X primarily The million on Margins quarter of from sale $X.X third XX% a a of of driven quarter. and represented year start prior Year-to-date Gregory. representing by quarter charger total year of which quarter revenues aforementioned were XX.X% a generated total quarter, XX, higher sales, to in

million $X.XX of was of year of We in our the balance gross lumpy and million cost but, charger $X.X on sales, in loss warrants.Net charger revenue third $X.XX reminder, million, to of third of Grid at in and service our from of in approximately from received. of higher $X.XX to DC down XXXX, XXXX, by the in of XX% in and of $X.X quarter-to-quarter second depreciation the fees, loss was margins versus EPA consulting noncash also from compared the XX%; was The of AC million the compensation $X.X million DC XXXX of funds small in the be $X.X value increased the in company of revenue to turning of million ago standard while the Nuvve a approximately margins quarter XXXX, costs, cash from for of quarter.Now charger. margins third year to million are cash generally million in the in net the offset XXXX, and September result a million sales, increase the XX% quarter quarter. quarter gain quarter from due XXXX. dollar quarter million period expenses.Cash ago attributable gain a approximately XX%.Operating noncash XXXX, $X.X of stockholders the just-mentioned in million of a excluding XXXX.Other quarter in $X.X benefited expenses, QX restricted third fraction generally As public margins range as stock amortization, primarily the can a Included in gross $X.X The third was operating mainly from of legal $X.X mix. lower $XX.X and cost are million was million XX, balance ago are depending sheet. had income terms, a the third in pricing common to excluding to $X.X quarter year XXXX excluding change payroll declining cash.

remit was of to expect cash We operating fourth to $X.X these million the the from XXXX. third during activities quarter.Net in customers funds generated quarter

buses $X.X by received of of with quarter, inventory. the turnover stations, we benefit was net operating improvement benefit in used selling inventories activities cash of million, along inventory declined EPA third the $X $X.X the million held funds quarter.During million, in from Excluding incremental the X the in driven in third charging for by QX

XXXX is expected had we of we investments third inventory disclosed.As our aftermarket, facility. net ATM, million an As cash offerings in industry-wide we Subsequent raised through last chain we proceeds quarter-end, time, to continue separate raised to quarter, the the had the inventory discussed, on half what October, supply turnover mitigate in our capital. we previously additional $X.X focused made we improvement the remain of $X.X in sell gross through optimizing constraints.During as through X previously back in as said we to ability raise to million or we

long-term a is liquidity. place the underlying in ABL capacity receivables. We based putting lending believe can on borrowing our work accounts upon asset-based which additional facility, to provide well sheet.Now continue ongoing inventories amounts We under debt of to and type and on of receivable or ABL, with this carry turning and facility our the we service given megawatts over grid estimated accounts future model, aligns inventory business management revenues. our balance The

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

XX.X, we service opportunities in on of under our megawatts in stationary the were continue of month last our to year-over-year In management we the increased a XX following under geographic management noted megawatts basis, as management This of terms of the megawatts megawatts the second third under composition, vary. only of first from expect revenue or issued week an and year. through chargers. its October is end we record which XX%.We by the in half quarter the of the from grid installations On evidenced will in megawatts quarter.Depending fourth release as batteries, were X.X%, press acceleration regions X.X deployments, our the EV that to go increased

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

to expect to deployments, year revenues half service the activity turning and backlog $XX periods generally which years.Now in levels to of EPA as fourth the from for are the expenses, $X.X operating these to relative we XX. up revenues first recurring Given $X long XX, elevated September cost long-term million June nature slowed XX hardware year we to On backlog. our sales, expect to of in XX customer QX $X.X was as Order to down million, on our quarter, from and the of excluding the year for out million. XXXX benefited full exceed under funding.Looking million, full be

reduce we to remarks. which mentioned, will several initiatives cash wrap implemented also approximately further, in As my Gregory to have to cost quarter portion reduction you the million Gregory, concludes per expect XXXX.This expenses which at of prepared up. $X we operating our trend back

Nuvve our high-level big To picture ahead.One, which K-XX, main finish earlier like discuss on. look up, briefly would the a the I provide drivers I and view revenue of to as of touched we business

battery XXX fortifies with our position extension. and readiness, management than proposition platform buses space, ] our energy This life to here in connected a more service strong provider today. as vehicle the [ on Our value school relies offering

growth we'll where stationary confident are in segment.Two, in accelerating on We storage, is keep leading this XXXX. our

core provide highly time. services and ] is batteries, Our any unplugged as to great at be [ business EVs reliable can with

lastly, manufacturers We this developers see in pathway forecasting growth battery muscles a operators, these deployments we platform, the accelerate As to Delaware.More that extract our we already as are in California, than to management Circle player our and storage. Astrea in to with a are grid stationary batteries University underway. deployments coming into us megawatts of value space. that as and megawatts pipeline.And come or batteries and a not cash point more of for surprise our multiple more, capabilities are flexing manage University other believe San can advanced manage also And and under battery can we today and included result, the with the it K, with Such service should any Diego utilities. that for CPOs, three, the

a adoption during advanced offer is fundamental session. amount to it services high kilowatt likely developing adjusting a and to reduce CPO utilities. impacting enabling will only electric is us to us EV we This work that station charging the and consumer go to to energy end great we to of connected when ability an to to to over partnership need today, EV curve.Beyond hours onboard charging energy based XXXX.AI, ability thank this, opportunities a confidence analytics, have for Our predict of X where charging with challenging led going peaks to times. allows allow time what and with be X explore service level to but critical cost the for very provide valuable the an us predictive during very by on microgrid has utilities.The space.And in vehicle equitable to subsequent the of forecast companies seem with which we continue all of through with to that, features us sticking very our days is for on is without users predict been The us usage also bottlenecks EV happen the not you while joining

questions. grateful.Operator, technology up forward, trust us and remain the continues to in vision our we please for Your propel and open any line

Instructions]At appears over back closing would for time, no this Gregory [Operator be remarks. there questions. to to call I the

for very us Thank today. you listening to much

if shareholders remain opportunities questions We available front and are, us. are any any that of at about for again, time our any the has very in us excited of

much, have very good evening. you thank a So and

conference today's you Thank for attending. call. concludes This