Allego(US:ALLG)2023-11-14 16:39Financial Data and Key Metrics Changes - In Q3 2023, total revenue increased by 28.2% to EUR28.6 million, compared to EUR22.3 million in Q3 2022, driven by strong charging revenue growth [8][18] - For the nine months ended September 30, 2023, revenue was EUR96.8 million, a 33% increase over the prior-year period of EUR73 million [8] - Charging revenue increased by 53% to EUR22 million during the quarter, compared to EUR14.4 million in the same period in 2022 [8][18] - Operational EBITDA improved to EUR2.6 million for Q3 2023, compared to a loss of EUR3.1 million in the prior year period [20] Business Line Data and Key Metrics Changes - Revenue from sales and services for Q3 2023 was EUR6.6 million, down from EUR7.9 million in the prior period, primarily due to lower Carrefour project work [11][19] - Total energy sold for the nine months of 2023 was over 144.2 gigawatt hours, with Q3 alone accounting for 47.8 gigawatt hours, compared to 37 gigawatt hours in the prior year [11] Market Data and Key Metrics Changes - The global number of charging stations increased by 21% to 2.6 million from 2.2 million in the prior year period [8] - The European market has over 18% fully battery electric vehicle penetration in Q3 2023, with the EV fleet expected to expand from 6.5 million to 12.6 million by 2025 [17] Company Strategy and Development Direction - The company is shifting its focus from sales and service revenue to charging revenue, which is reflected in the strong growth of charging revenue [8] - The company signed two new 10-year power purchase agreements to secure a steady supply of 100 gigawatt hours of energy annually, supporting its commitment to sustainable mobility [12][13] - A strategic partnership with Go'on was established to enhance electric charging services accessibility in Denmark [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the revised guidance for 2023, expecting annual revenue between EUR180 million and EUR185 million and operational EBITDA between EUR30 million and EUR35 million [15][23] - The company anticipates continued strong demand for charging services due to the growing EV market and robust utilization rates [15][17] Other Important Information - The company reported a net loss of EUR43.1 million for Q3 2023, compared to a net loss of EUR22.1 million in the same period of 2022, primarily due to increased finance costs and non-cash SG&A expenses [21] - Cash and cash equivalents totaled EUR28.8 million as of September 30, 2023, down from EUR83 million a year earlier, mainly due to capital expenditures [22] Q&A Session Summary Question: Discussion on Q4 expectations and service revenue - Management indicated that Q4 is expected to see a significant increase in service revenue due to ongoing large projects, including Carrefour in Germany, with recognition occurring in this quarter [28] Question: Clarification on full-year guidance adjustments - The guidance was adjusted to the lower end due to delays in the Carrefour project and late grid connections affecting charger installations [29] Question: Inquiry about price increases and market share - Management confirmed that price increases implemented in 2022 were effective in H1 2023, but a 15% price decrease was initiated in H2 to enhance market share and utilization [31]