Consolidated Edison Conference Call Summary Company Overview - Consolidated Edison (Con Edison) is one of the largest investor-owned utilities in the U.S., providing electric, gas, and steam services to millions in New York City and surrounding areas [3][4] - The company has been operational for over 200 years, adapting to various challenges and technological shifts [11] Industry Context - The energy landscape in New York is transitioning towards cleaner energy, driven by state and local policies aimed at reducing greenhouse gas emissions and improving air quality [16][18] - The New York State Climate Leadership and Community Protection Act (CLCPA) sets ambitious targets for renewable energy adoption and emissions reductions [16][17] Key Strategic Initiatives - Con Edison plans to invest $72 billion over the next decade to enhance system safety, reliability, and manage growth due to increased electrification of heating and transportation [19] - The company is focusing on modernizing its energy delivery systems to withstand extreme weather events, which are becoming more frequent and severe [3][10] Reliability and Resiliency - Con Edison has achieved a reliability performance that is nine times better than the national average, attributed to strategic investments and system design [10][30] - Since 2013, resiliency investments have helped avoid approximately 1.2 million weather-related outages [10] Economic Impact - Con Edison and Orange and Rockland Utilities contribute significantly to the New York economy, generating $24.3 billion in economic output, which is about 1% of the state's GDP [13] - The company paid $4.8 billion in taxes and fees in 2024, including $3.3 billion to New York City [13] Customer Engagement and Energy Efficiency - Con Edison has completed over 74,000 energy efficiency and building electrification projects from 2020 to 2024, with a shift towards more complex technologies like heat pumps [42] - The company has provided over $1.5 billion in customer incentives over the last five years, with a focus on low to moderate-income customers [64] Climate Change Adaptation - Climate studies indicate that New York will face more intense heat waves and rising sea levels, prompting Con Edison to submit climate change resiliency plans to regulators [39][40] - The company is investing in storm hardening measures and enhancing grid resilience to prepare for future climate impacts [41] Electrification and Clean Energy Transition - Con Edison is actively assisting customers in transitioning from natural gas to electric alternatives, with a focus on building electrification and the development of utility thermal energy networks [54][56] - The company is exploring low-carbon fuel alternatives and has set targets for reducing greenhouse gas emissions from its operations [60][61] Future Outlook - The company anticipates a return to being a winter-peaking utility by the 2040s due to the electrification of heating and transportation [23][53] - Con Edison is committed to maintaining operational excellence and reliability while navigating the challenges of the energy transition [7][9] Conclusion - Consolidated Edison is positioned as a leader in the energy sector, focusing on reliability, customer engagement, and a sustainable transition to clean energy, while also addressing the challenges posed by climate change and evolving customer needs [9][19]

Financial Data and Key Metrics Changes - The consolidated revenue for Q4 2024 was $30 million, a sequential increase of 20% compared to Q3 2024 [10] - Full-year 2024 total revenues were $126 million, down from $140.6 million in 2023 [30] - Service revenues for Q4 2024 grew 24% year-over-year to $9.8 million, while full-year service revenues reached $34.8 million, representing a 31.8% increase [31] - Gross margin for the full year was 32%, with an adjusted gross margin of over 35% for Q4 2024 when excluding asset adjustments [32][34] - Operating expenses decreased by 21% to $23.1 million in Q4 2024 compared to Q4 2023, and full-year operating expenses were reduced by 24% to $111 million [33] Business Line Data and Key Metrics Changes - The number of company-owned chargers increased by 33% to 6,867 by the end of 2024, contributing to a 32% increase in service revenue [18] - Revenue from DC fast chargers grew nearly 500% in 2024 compared to 2023, highlighting a strategic focus on this segment [20] Market Data and Key Metrics Changes - New electric vehicle sales in January 2025 were up nearly 30% compared to January 2024, marking the tenth consecutive month of over 100,000 EVs sold in the U.S. [14] - Used EV sales also grew by nearly 31% year-over-year in January 2025, indicating strong demand for charging services [16] - In the UK, nearly 20% of vehicles sold in 2024 were electric, and Belgium saw a 36% increase in EV registrations [23] Company Strategy and Development Direction - The company is focused on becoming a leading global EV infrastructure provider, emphasizing the growth of Blink-owned chargers and service revenues [9][38] - The "Blink Forward" strategy aims to enhance profitability through cost reduction, flexible customer-centric business models, and capitalizing on market consolidation opportunities [39][44] - The company is actively pursuing non-dilutive capital sources to support its growth strategy [110] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued growth of service revenues throughout 2025, with expectations for product revenue to improve in the second half of 2025 [36] - The company is monitoring political developments and market conditions regarding tariffs but does not expect significant impacts on gross margins [17] - Management acknowledged the challenges of the current industry landscape but emphasized the company's resilience and commitment to achieving profitability [46] Other Important Information - The company reduced cash burn by 51% in 2024, with operating cash burn decreasing from $18 million per quarter at the end of 2023 to $9 million per quarter at the end of 2024 [28] - The company ended 2024 with cash liquidity of $55 million, including liquid marketable securities and no cash debt [35] Q&A Session Summary Question: 2025 outlook on product sales visibility - Management indicated optimism for product sales in the second half of 2025, with a focus on balancing owner-operator and product sales strategies [49][52] Question: Acquisition targets in Europe and South America - Management confirmed they are considering acquisition opportunities but emphasized the need for careful selection to avoid overpaying [55] Question: Timeline for Envoy IPO - Management stated they are on track for an IPO in the spring [58] Question: Shifting focus towards owner-operator model - Management clarified that the shift is a long-term strategy rather than a reaction to short-term market dynamics [64] Question: Expected margins as the owner-operator model grows - Management did not provide specific guidance on margins but indicated that the owner-operator model could lead to improved margins [68] Question: Utilization improvements from new connectors - Management noted that the deployment of new connectors is still in early stages, with expected future benefits [74] Question: Path to positive EBITDA - Management emphasized the need for aggressive top-line growth and further cost reductions to achieve positive EBITDA [80] Question: Business mix and state support for growth - Management expressed optimism about state contracts and opportunities in Europe, indicating a diversified approach to growth [91] Question: Working capital management opportunities - Management confirmed ongoing efforts to improve working capital management and cash flow [95]

Financial Data and Key Metrics Changes - The consolidated revenue for Q4 2024 was $30 million, a sequential increase of 20% compared to Q3 2024 [7] - Full year total revenues were $126 million, down from $140.6 million in 2023 [21] - Service revenues for Q4 2024 grew 24% year over year to $9.8 million, while full year service revenues reached $34.8 million, representing a year over year growth of 31.8% [19][21] - Gross margin for the full year was 32%, with an adjusted gross margin of over 35% for Q4 2024 when excluding asset adjustments [19][20] - Loss per share for Q4 was $0.73, improving from $0.28 in the prior year [20][21] Business Line Data and Key Metrics Changes - Service revenue for the year was driven by increased utilization and a greater number of Blink-owned chargers, which increased by 33% to 6,867 units [11][12] - Revenue from DC fast chargers grew nearly 500% in 2024 compared to 2023 [12] - Charging revenue for the year reached $21.4 million, a 37% increase [11] Market Data and Key Metrics Changes - New electric vehicle sales in January 2025 were up nearly 30% compared to January 2024, marking the tenth consecutive month of over 100,000 EVs sold in the U.S. [9] - Used EV sales grew by nearly 31% year over year in January 2025, contributing to increased demand for charging services [10] - In the UK, nearly 20% of vehicles sold in 2024 were electric, with a 57% increase in used electric vehicle sales [14] Company Strategy and Development Direction - The company is focused on becoming a leading global EV infrastructure provider, emphasizing the growth of Blink-owned DC fast chargers [6][23] - The strategic plan, "Blink Forward," aims to reduce operating expenses and cash burn while promoting profitability [23][26] - The company is exploring market consolidation opportunities to enhance growth and market share [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued growth of service revenues throughout 2025, with expectations for product revenue to improve in the second half of 2025 [21][22] - The company is actively pursuing non-dilutive capital sources to support its growth strategy [76] - Management acknowledged the challenges in the current market but emphasized the company's resilience and commitment to achieving profitability [27] Other Important Information - The company reduced cash burn by 51% in 2024, with operating expenses down 24% year over year [17][20] - The company ended 2024 with cash liquidity of $55 million and no cash debt [21] Q&A Session Summary Question: What is the outlook for product sales visibility in 2025? - Management expects some shortfall in product sales in the first half of 2025 but is optimistic about the second half due to new sales strategies [28][31] Question: Are there acquisition targets in Europe or South America? - Management confirmed that there are companies under consideration for acquisition, focusing on the right fit and avoiding overpayment [32][33] Question: What is the timeline for the Envoy IPO? - The company is on track for an IPO in the spring, with administrative processes proceeding as planned [34] Question: How will margins be affected as the company shifts towards owner-operator models? - Management indicated that margins are expected to remain stable, with potential for improvement on the owner-operator side [42][56] Question: How is the company addressing regulatory changes and tariffs? - The company has production facilities in the U.S. and India, which helps mitigate the impact of tariffs [78] Question: What progress has been made in alternative customer channels? - Significant progress has been made with electrical distributors and local municipalities, which are seen as key growth areas [70][71] Question: How is the company positioned in the residential EV charging market? - The company focuses on commercial and multifamily markets, capitalizing on building codes that require EV charging infrastructure [87] Question: What measures are being taken to improve working capital management? - The company is implementing measures to improve cash flow from accounts receivable and inventory management [63][64]

Financial Data and Key Metrics Changes - In Q4 2024, consolidated revenue was $30 million, a sequential increase of 20% compared to Q3 2024 [8] - Full year 2024 total revenues were $126 million, down from $140.6 million in 2023 [21] - Service revenues for Q4 2024 were $9.8 million, a 24% increase year over year [21] - Gross margin for the full year was 32%, with an adjusted gross margin of over 35% in Q4 2024 without asset adjustments [22][23] - Loss per share for Q4 2024 was $0.73, improved from $0.28 in the prior year [24] Business Line Data and Key Metrics Changes - Service revenue for the full year was $35 million, driven by increased utilization and a greater number of Blink-owned chargers [10] - Revenue from DC fast chargers grew nearly 500% in 2024 compared to 2023 [14] - Network fees increased 9% year over year to $2.4 million [8] Market Data and Key Metrics Changes - New electric vehicle sales in January 2025 were up nearly 30% compared to January 2024, marking the tenth consecutive month of over 100,000 EVs sold in the U.S. [11] - Used EV sales grew by nearly 31% year over year in January 2025 [12] - In the UK, nearly 20% of vehicles sold in 2024 were electric, with a 57% increase in used EV sales [16] Company Strategy and Development Direction - The company is focused on becoming a leading global EV infrastructure provider, emphasizing the growth of Blink-owned DC fast chargers [7][27] - The strategic plan, Blink Forward, aims to reduce operating expenses and cash burn while promoting profitability [27][30] - The company is exploring market consolidation opportunities to enhance growth [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued growth of service revenues throughout 2025 [25] - The company is monitoring political developments and market conditions regarding tariffs but does not expect significant impacts on gross margins [13] - Management highlighted the importance of operational strategies to navigate the challenging industry landscape [27] Other Important Information - The company reduced cash burn by 51% in 2024, with operating expenses down 24% [20][27] - The company ended 2024 with cash liquidity of $55 million, including liquid marketable securities and no cash debt [25] Q&A Session Summary Question: What is the outlook for product sales visibility in 2025? - Management expects some challenges in the first half of 2025 but is optimistic about the second half due to new sales strategies [32][36] Question: Are there acquisition targets being considered? - Management confirmed that there are companies under consideration for acquisition, particularly in Europe [37][38] Question: What is the timeline for the Envoy IPO? - The company is on track for an IPO in the spring [39] Question: How will margins be affected as the company shifts towards owner-operator models? - Management indicated that margins are expected to remain stable, with potential for improvement on the owner-operator side [47][61] Question: How is the company addressing regulatory changes and tariffs? - The company has production facilities in the U.S. and India, which helps mitigate tariff impacts [83] Question: What is the status of the residential EV charging market? - The company focuses on commercial and multifamily markets, with increasing demand for charging infrastructure [93][94]

Industry Overview - The electric vehicle (EV) charging infrastructure market is rapidly expanding globally, with China leading at over 3.2 million public charge points, followed by Europe with over 900,000, and the United States with approximately 206,000 public charging ports [1][2][3] - The U.S. is set to add more than 11,500 EV charging ports through the Bipartisan Infrastructure Law, aiming for a total of 500,000 publicly available EV chargers by 2030 [2] Company Analysis: EVgo - EVgo has seen a 35% year-over-year revenue growth in Q4 2024, driven by increased charging sessions, with a network throughput of 84 gigawatt-hours compared to 50 gigawatt-hours in the previous year [5] - The company has expanded its operational stalls from 2,980 to 4,080 and added over 133,000 accounts in the quarter [5] - A joint development agreement with Delta Electronics aims to enhance charger reliability and cost efficiency, potentially boosting EVgo's prospects [6] - Despite growth, EVgo remains unprofitable with a negative adjusted EBITDA and is vulnerable to shifts in federal policy due to its reliance on NEVI funding [8] Company Analysis: ChargePoint - ChargePoint has reduced its non-GAAP operating expenses by 42% and reported a 14% year-over-year growth in subscription revenues, reaching $38 million in Q4 [10] - The company operates 342,000 managed charging ports, benefiting from increasing EV adoption, and is not reliant on NEVI funding, providing insulation from federal policy changes [10] - ChargePoint's collaboration with General Motors aims to install hundreds of ultra-fast charging ports across the U.S. by 2025, enhancing its growth prospects [11] - The company has introduced innovative solutions to combat EV charger vandalism, which are expected to strengthen its market position [12] Financial Performance - In the trailing 12 months, EVgo shares have decreased by 9.8%, while ChargePoint shares have dropped by 64.2%, compared to a 6.1% decline in the Zacks Auto, Tires and Trucks sector [14] - EVgo's forward price/sales ratio is 1.94x, while ChargePoint's is 0.64x, indicating that both stocks are not considered cheap [16] - The Zacks Consensus Estimate for EVgo's 2025 loss is 55 cents per share, while ChargePoint's fiscal 2026 loss estimate is 19 cents per share [20][21] Investment Outlook - EVgo's high valuation is not justified given its risky growth prospects and dependence on federal policies, leading to a Zacks Rank 3 (Hold) [22] - ChargePoint, with its cost-cutting measures, growing revenues, and strong partnerships, presents a more stable investment opportunity, carrying a Zacks Rank 2 (Buy) [23]