Blink(US:BLNK)2023-08-09 00:15Financial Data and Key Metrics Changes - Total revenue in Q2 2023 grew 186% year-over-year to $32.8 million, compared to $11.5 million in Q2 2022 [86] - Gross profit for Q2 2023 was approximately $12.3 million, an increase of 528% over the same period last year, with a gross margin of 37% compared to 17% in Q2 2022 [87] - Adjusted EBITDA for Q2 2023 was a loss of $13.5 million, an improvement of $2.1 million year-over-year [89] Business Line Data and Key Metrics Changes - Service revenue increased by 211% to $7 million in Q2 2023, driven by strong demand for charging services [63] - Product sales in Q2 2023 were $24.6 million, a 179% increase over the same period in 2022 [128] - The company contracted, sold, or deployed 5,830 chargers globally in Q2 2023, with a growing portion being DC Fast Chargers [95] Market Data and Key Metrics Changes - The company anticipates a significant increase in the number of EV chargers globally, projecting over 30 million chargers by 2030 and over 90 million by 2040 [125] - The majority of chargers, over 90%, are forecasted to be Level 2 chargers, aligning with market trends [125] Company Strategy and Development Direction - The company is targeting a positive adjusted EBITDA run rate by December 2024, focusing on expense management and operational efficiencies [5] - Blink is committed to vertical integration and reducing costs through in-house manufacturing, which is expected to enhance margins [129] - The company plans to continue its strategy of acquiring and integrating businesses to unlock synergies and reduce operating expenses [62] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential in the EV infrastructure market, citing a strong pipeline and backlog [30] - The company is focused on continuous improvement and cost reduction as a permanent strategy, not just a temporary measure [114] - Management noted that the adoption of NACS is viewed positively for Blink, as it allows flexibility in supporting different charging standards [8] Other Important Information - Operating expenses for the first half of 2023 were $87.7 million, compared to $40.5 million in the same period of the prior year, reflecting significant growth and one-time charges [57] - The company has identified over $1 million in yearly synergies from the acquisition of Envoy [56] Q&A Session Summary Question: Can you discuss the savings realized to date and expectations for the back half of 2023? - Management indicated that free cash flow is expected to manifest later in 2025, with additional cash raises anticipated [15] Question: What proportion of the installed units were DC Fast Chargers? - Management noted that DC Fast Chargers are currently a small percentage of the total, with a goal to increase this to 5% of the portfolio [117] Question: How does the company view the market evolution between Level 2 and DC Fast Chargers? - Management emphasized that while DC Fast Chargers are important, the majority of charging will continue to be Level 2 due to economic factors [49] Question: What is the expected revenue cadence for the rest of the year? - Management did not provide specific guidance but indicated that revenue is expected to grow throughout the year [122] Question: How should investors think about capital needs until achieving positive EBITDA? - Management stated that additional capital will be needed, but they expect to generate revenue growth to support this [115]