Nuvve Holding (NVVE) 12 Nov 242024 Q3 Earnings call transcript

Good afternoon, and welcome to the Nuvve Holding Corporation Third Quarter 2024 Earnings Conference Call. Please note, this event is being recorded.

On today's call, we have Gregory Poilasne, Chief Executive Officer; and David Robson, Chief Financial Officer of Nuvve. Earlier today, Nuvve issued a press release announcing its third quarter 2024 results.

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

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

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

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

Thank results you, Welcome XXXX call. today. here to and good everyone quarter to our third afternoon

very share active excited many we been are details and more in quarter and active This has been a ways, to you very has today. with X it may

for So remained Nuvve. this has third quarter challenging

fruit seeing carrying period during this that are have we We paying been the multiple out now of is efforts off.

to with reduce We have our to been minimal our capabilities. expenses able operational impact

We top picking line Commission. of Fresno margins Opportunity hub driven it project sales while the our by Economic our have some of finally with up, are the our been increasing kickoff

working that In period, end showing business. engagement have investors we loan the been convertible bridge myself Nuvve's to have loan and and to new company David our the the a quarter. we meantime, on post closed that support have with of Through provided a

we is into releases. will funding. finally X. in bus some districts we progress the QX picking on Round school the also working extremely are expect EPA EPA after and EPA new from for our our X school driven slide The Though will we see Round are start are on benefits based and our X process year, business revenue, approved revenue XXXX, that now in slower-than-expected Sales of up sluggish Round by an notifying

commission in project fee, from does making. critical securing key This a It the also a for us line project EOC not the recognize revenue Fresno for some management XXXX. the has some with allowed bring Fresno finally to in revenue project it's been County. a only also the QX time long straight through cash us

[ faster Nuvve platform as a and generation, The stations, across to resources as electric capital storage, services and manage a other and a to energy resources money, is ] to As and EV transition operators manager, fleet market. ability consumption software be allowing of to will save platform into GIVe multiple variety sites providing to services connected true solar vehicle asset reminder, a site microgrid optimize acting participate ancillary to such platform, life. monetization grid aggregate optimize the grid and charging

a likely our partner, with and after most we signed with mid-February Concerning a contract e-Formula have ground collaboration will Chinese our the happen event Power now High Corporation, breaking Year. New

in finalizing of are the date. process the We

life, and As Fresno and this deployed of charging has This be adjusted a total a will based the EOC deployment using storage deployment being scaling a project. Taiwanese is local XX-year and of the in demand. technology reminder, project stations a same our stationary project includes on the XX-plus

share the The Taiwan, shuttles to in up compatible to and the soon. eco-to-grid buildings. services small employee on you projects first targeting translation transportation summing going with follow fleet more the are is we phase providing Hsinchu of hope a companies company from of Other to island

debt are been parties TEP negotiating addressing these application these have infrastructure, provide have with us, to WISE-EV Concerning parallel, our or and financing the signed process sites deployments. joint now Energy. SPVs work of different being up In to the in with with submitted public to supporting NV LLC multiple we

attractive providing same the deployment, allowing services. reminder, Nuvve bring SPVs drivers these and of to energy form equipment cost reliable us X in pricing to accelerate technology a Nuvve for prepaid are nondilutive by As and EV cash

funded ] through to upfront. SPV [ revenue and adopted million. forecastable. makes forecastable will SPV cases. recognition structure the ETV $X.X in Revenue first believe make this more debt we The our be project will for provided our have We future the be delayed some revenue cost provides But more again, a of cash might role future

update working engagement with making hope update share short and a you we very progress, we As strategic key on are with on our Cappello still Global some to investments, soon.

EV creates of assets point, the want generation, platform from storage, such outcome the of remarks and that EV loads. stationary between At not needs election. other to on I significant the company. an the couple a as a local this GIVe bridge Finally, The and is just energy emphasize Nuvve grid

load the directly For and States the the capabilities the ideal a the to prohibitive. grid increasing an time [ be United XXXX, The platform EV since offer platform, such grid EV need and opportunity the a ] the will on grid without us for to with The reduce and our first is getting or volatility GIVe energy larger is business in faster. allows Less is exists Without peaks larger. of can for regulation cost scale federal modernization. mandates. platform

David? And take details let now you will I through of David financials. the our

million of by sold in California, the this year the to year, which of increase million to $X.X Fresno, sales When $X.X compared year. decrease and relates second higher of in was compared $X.X In generated start revenue driven year a in quarter a by to school quarter results. revenues hardware last Gregory. project service total million $X.X quarter-over-quarter will quarter third we the in million increase of Thanks, offset kicked nonrecurring revenue a our impacted quarter this hub earned in $X.X and revenues third last earlier XXXX. of off bus this third million, of third in of million service $X.X EV The increase I revenue XXXX revenues. was million the $X.X million the quarter $X.X million the revenues. $X.X XXXX we with quarter, by service recap

XX, The was decline the million. reduction nonrecurring $X.X through for revenues period sales Year-to-date by hardware compared decline a million sales September to $X.X $X.X year EV bus $X.X and or million $X.X million. in of of million of million prior $X.X were XXXX, the charger a impacted

margins the in reduction year. quarter have compared awards quarter seen year, have to when sales This the EPA last over XXXX gross compared this has revenues, last pace delays improved were hardware margins. funding the the $X of we year, third year, to million for third impacted last year. which Despite negatively $X.X our million Gross for we in

service million million year. The sales last due through in same $X.X pricing compared last compared gross higher period mix hardware and September gross Year-to-date for margin the were XX, a XXXX, year. is with increase primarily margins $X.X improved revenues of and to to

to a generally XX%. But in be revenue at margins X%, as As charger. XX% dollar fraction terms while are range margins can high the from charger service are as the small gross are software standard quarter margins while margins are revenue XXX%. generally of gross of from to lumpy Grid quarter and reminder, charger a margins approximately DC pricing DC AC on depending mix. XX%, the engineering service

second of primarily $X.X due million consulting cost excluding XXXX. and quarter were $X.X the for and third XXXX over lower was sales quarter million the expenses. the $X.X Operating decrease last of million quarter for The to of compared third XXXX for quarter to payroll $X costs, million of

We efficiencies, overhead continue resulted efforts costs. has to which in on our focus improving operating lower

million versus XXXX sales, Cash the and the expenses, in stock and third operating depreciation of cost of of $X.X in of $X.X million expense quarter quarter the and quarter in XXXX. amortization $X.X excluding compensation second climbed and third to XXXX, million

Other from current benefited of the the third year change warrants, income noncash was gains by expense. of $XXX,XXX $XXX,XXX XXXX, the up in fair in in quarter. ago offset from interest quarter The period from value

million $X.X in margins Net of million. to from $X.X quarter newly a decreased stockholders net of $X.X gross loss lower result XXXX. improvement XXXX of attributed $X.X million, and of the to other The operating income in higher of million the increased of third a quarter $X.X was million third loss of million common expenses $X.X

We of million April payments with September in beginning ended February convertible in which short-term received issuance from cash this XX, notes of XXXX, offset losses balance XXXX, million promissory either in paid million June through cash additional interest result $X.X $X.X quarter of cash $X.X by an off XXXX. a of of cash was XX, $X $X.X our in restricted decrease $X.X to capital million million negative The million, XXXX. approximately turning issuance in XX, to or of September had equity October, $X.X the $X.X and be operating proceeds cash monthly Now will million cash which from notes. sheet. the decrease from the received a million in of XXXX, excluding as in represents working we Subsequent

levels. million $X.X end $X.X inventories During at $X.X payables as continue in million, due to September XX, reduce quarter consulting end $X.X million of million expenses of quarter the by at XXXX, quarter, reduction third compared increase of expenses. million. to second accrued inventory the principally at million, decrease Accrued of $X.X of to we expenses Accounts and third was compared was of the quarter XXXX The was XXXX decreased $X.X the the an accruals payroll a of of for lower the to million to million. $X.X quarter the $X.X second

noncontrolling expired in in conditional as their liabilities capital their as contribution and Levo X, venture, and in to which and Evolve of the Regarding the XXXX, our Evolve. Stonepeak resulted and with defined subsidiary, of derivative August our equity joint the for we the from quarter, agreement, Mobility capital cancellation during our interest nominal purchased in a Stonepeak dividend with in venture on of X commitment, LLC their million $X.X the including commitments expiration joint liability Mobility the with Levo due third a reduction associated along for Evolve, interest Stonepeak our amount, as liability to well

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

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

megawatts In terms and from XX.X chargers. were megawatts X.X composition, EV batteries were from of stationary its

the the customer of backlog year orders in We continue through to our remainder expect as have commission further we and management megawatts our we to under growth of go continue earned.

EV both In addition we and which we business, winning, stationary anticipate visibility for batteries. to new in pipeline chargers have to our

backlog $X.X to begun from backlog and has revenue this project turning hardware December to be XXXX, increased XX, Now our XXXX. at by was $XX.X year decreased primarily million $XX.X which million million in service by quarter. this closed reported to at of during year backlog million XX, hub June million $X.X the $XX.X QX and Year-to-date, on September from XX, which Fresno, California, large and related is recognized has to this

next out. to quarters, As project the see more Hub that this the gets expect several we Fresno to on activity opportunity look as we out

anticipate compared year. lower operating and also gross the burn, of cash resulting improvements We margins improved benefits in from our last with costs

portion you to back to This concludes the prepared of remarks. conclude. my Gregory,

see point. we David. challenging, you, turning this a quarter as XXXX Though Thank it remained third has

We our cash, but on not have also revenue. securing been short-term only able our finally to projects, XXXX certifying of some big close

timing. such better GIVe generation, key in Nuvve have as the Mandates managing value in for mandates, monetization deployments we expansion see renewable more and where the the our our we can tool. We quarter-to-quarter company We like is a acquired. reach storage see source of U.S. and implemented segments revenue many in EV feel significant we in cash of Europe. essential and bringing also tightly, we some where These on we grid deployments cases, are are the supporting been our where support government have still stability. bring personally With within places platform being and diversifying control

very Finally, much. made in want share we path we our very the soon strategic to with Thank you progress have you.

Poilasne [Operator any to back This questions. our Instructions] session. conference Gregory I remarks. seeing like to the concludes question-and-answer I'm turn over no for closing would

Thank today, we you to able with for us you and listening soon. be more to share are Thank to you looking with you.

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

now disconnect. You may