Q2 2021 Blink Charging Co Earnings Call
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Okay.
Good day, ladies and gentlemen, and welcome to your Blink charging company second quarter 2021 earnings call. All lines have been placed on a listen only mode and the floor will be opened for your questions and comments. Following the presentation. If you should require assistance throughout the conference. Please press star zero to reach a live operator at this time it is my pleasure.
I'll turn the floor over to Jennifer about Waddell with IMS Investor Relations Ma'am the floor is yours.
Thank you good afternoon, everyone and welcome to the link charging in second quarter 2021, Investor call on the call today, we have Michael Harkins, founder and CEO, Brendan Jones, President and Michael Rama Chief Financial Officer, I would like to take a minute to read the Safe Harbor statement. This conference call contains forward looking statements as defined within section 27, a the Securities Act of 1930.
Three as amended and section 21, and the Securities Exchange Act of 1934 as amended these forward looking statements in terms such as anticipate expect intend may will should or other comparable terms involve risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. Those statements include statements regarding the intent belief or current expectations.
Blink and members of its management as well as the assumptions on which such statements are based prospective investors are cautioned that any such forward looking statements are not guarantees of future performance and involve risks and uncertainties, including those described in <unk> periodic reports filed with the SEC and actual results may differ materially from those contemplated by such forward looking statements.
Except as required by Federal Securities Law, Blink undertakes no obligation to update update or revise forward looking statements to reflect the changed conditions.
Now I'll turn the call over to Michael Forget field charging go ahead Michael.
Good afternoon, everyone. Thank you for joining us.
This was a very exciting quarter for Blink as we made considerable progress with our owner operator strategy, we expanded internationally.
Some of the best in the industry to our team and continuing to position ourselves as a leader and innovator in the EDA industry.
Second quarter revenue grew 177% compared to the second quarter of 2020, as we continue to aggressively expand our geographic footprint.
During the quarter, we made tremendous progress with 3264 commercial and residential Chargers contracted sold or deployed.
And the number of commercial Blink on charging stations contracted or deployed grew more than 46% compared to the same period in 2020.
Location is the key for our Chargers as more individual drivers and fleet transition to greener transportation and we prepare the charging infrastructure that will be necessary as utilization increases.
We continue to make solid progress during the quarter securing locations in high density high volume venues like hotels multifamily residential mixed use facilities and health care networks we.
We believe our industry is poised for exponential growth and we are aggressively scaling our business not just here in the United States, but around the world to ensure that we are in the best position to capitalize on the long term opportunities associated with the global progression to easy to use.
As the world transitions to driving movies doing can prepare the way by group I think our Chargers as they can.
Key components of what will be a much in demand.
Infrastructure, the natural infrastructure charging stations around the world.
With the future in mind, we've been listed and we'll continue to pursue the best talent available in the EV charging industry to help us evaluate our technology and our market presence during the quarter, We announced the addition of our Ginger body as our new Chief Technology Officer, Mr body is an industry veteran.
And an exceptional leader with extensive knowledge of the EV charging space and he was a founder of charge points.
As we continue to expand globally, we're confident that heartland has proven track record of success as a software engineer and senior executive will be instrumental to the growth of bring charging. We're also welcomed we're also thrilled to welcome <unk> as the new managing director of our European subsidiary Blink Holdings BV.
As I'll detail in a minute, we believe Europe represents tremendous growth opportunity. So it makes sense for us to enhance our operating presence there.
Finally, we recently strengthened our board with the addition of technology and infrastructure leader Carmen Perez Carlton. She brings many years of senior executive experience, including leadership roles in operations finance and sales and marketing and we are confident that she is ideally suited to provide advice and guidance as Boeing continues to grow.
One evolve.
As chair of our newly formed environmental social and governance Committee.
She'll be forging new and important territory for our company.
And perhaps the most notable developments of the quarter, we advanced our international strategy with the acquisition of European EV charging operator blue corner.
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One moment, while we reconnect.
Thank you for your patience, ladies and gentlemen, we should have Mr Park has reconnected in just one moment.
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Hello, sorry about that got disconnected.
As of August 4th 2021.
Blue corner soldier deployed 8714.
Independent Chargers comprised of 3816 level, two and 25 DC fast charging publicly accessible Chargers and 4873 private residential chargers located across Belgium, Luxembourg, the Netherlands and France.
With this acquisition as I just mentioned, we established Blink holdings BV.
To raise our profile in Europe, and enhance our ability to bid for and win new contracts in the region.
In addition to contributions from the existing business, which Michael Rama will review in a few minutes during the quarter Bloom corner signed an exclusive contract with Katie you move on to install up to 500 charging stations across Belgium. So we're seeing continued momentum and looking forward to building on that.
To give some additional context around the Europe European opportunity Evs.
These are being adopted at a faster rate than in the U S and it follows that theyre growing market share should translate into higher utilization of charging stations.
Historically, Europe has experienced higher fuel prices, which makes the transition to evs more attractive by providing a stronger value proposition for drivers we.
We expect that the transition rate for any of these will continue to grow and contribute demand for more charging stations across the continent for.
From an international standpoint, we have also recently signed agreements in Israel, and Chile to further accelerate our global expansion.
We remain intently focused on our owner operator model.
This is an important direction for our business.
We enter into long term exclusive contracts with automatic extensions that employ a revenue sharing model in which we receive payment each time. The vehicle is charged at one of our Blink on units we sell the fuel.
With this structure, we have the potential to generate a valuable reoccurring revenue stream for many years to come as utilization increases.
A property owner partners also benefit from this model because we take care of the installation and maintenance of Blink all units, which is often in a very attractive option for property management companies.
We have just so many other responsibilities on their plate.
Additionally, our contracts are structured to allow us to build charging stations to these contrasts locations anytime.
As necessary as demand increases and that is throughout the duration of these long term contracts, it's not about just having a parking space when we sign a property under agreement, where we provide the services. It's about the entire address which is that every single type of vehicle that can fuel using electricity.
This is a pivotal time pivotal time to be a leader in the EV charging industry. The shift to Evs is inevitable and Blink is poised for significant growth as we play a key role providing the infrastructure to support this transition.
As we all recently saw President Biden announced a new executive order setting a target to make half of all new vehicles sold in 2003 zero emission vehicles.
It is important not to lose sight on the fact that we are in a very early stage of this transition.
And Blake will continue to invest in our technology people and operations to solidify our position as a best in class provider of the charging infrastructure needed to support the transformational shift to either use.
Now I'll turn the call over to Brendan Jones President of linked to discuss some more of our recent developments.
Good afternoon.
It is a pleasure to speak with everyone today.
We continue to see tremendous interest from the marketplace as demonstrated by the new customers and partnerships.
Attracted during the quarter.
As Michael mentioned, the charging industry is still in its relatively early days with tremendous growth potential as EV adoption begins to pick up measurable momentum.
They establish reliable and accessible EV charging infrastructure goes hand in hand with positive leadership trends, we're seeing around the development and use of Evs in support of environmental stewardship and a blank we're focused on the long game.
We're committed to building operational infrastructure, a class lead sales force top notch leadership and support teams to further our leadership girl, who does the ship role and grow our footprint as a provider of state of the art charging.
Give you a reference point around how rapidly we're growing on June 30th 20 blank had 66 employees.
We have now more than doubled almost tripled that to 177 as of June 32021.
As we look to strengthen our bandwidth you can expect to see our Ed.
<unk> to grow.
One of the biggest developments as Michael referenced front in the past quarter has your acquisition of blue corner as portfolio of more than 8700 charging points ports.
This acquisition provides blank with a solid foot hold to more effectively access the European market, an underpenetrated market that has the potential to be a huge growth there for Blake as the tradition transition to Evs continues to progress.
Can you give me some clarity and context around this your EV market is growing faster than the United States sales of plug in electric vehicles in Europe rose, 37% to one.
And vehicle last year, whereas the U S rose, 4% to 328000, according to EV volumes dotcom.
Serbs in EV adoption will increase demand for Blake EV charging infrastructure and European regulations are further accelerating widespread EV adoption to be a regulatory support for zero emission vehicles.
Additionally.
Additionally, Additionally to our expansion into the European EV charging market domestically, we continue to expand our footprint as we deploy and upgrade our charters out locations all over the country.
Some notable developments include blank was awarded $12.5 million grant for the deployment of 50, plus DC fast Chargers at 25 locations across the state of Florida.
Additionally, the deployment of 10, IQ200 level two EV charging stations at three Atlantic care integrated healthcare systems locations in Southern New Jersey.
The deployment of 42 charging points at 10, four brothers Pizza Inn locations across in York, you can get a slice and get a charge and we also deploy IQ.
IQ200 charging stations at the Native American Youth and family Center in Portland, Oregon.
We upgraded 19.
First generation blank EV charging stations in Plano, Texas to our IQ200 fast level two charging stations.
We also continue to pursue agreements partnerships and designations that accelerated our growth strategy. We signed an agreement with general motors to offer G. M. EV customers more seamless access to publicly avail blinked charging sites across the United States as.
Part of Gms ultimately charged <unk> III.
We entered into a reseller agreement with EV transportation services to distribute the Blink Q2 hundred mobile portable EV charger, along with its Firefly ESB.
Have some fun and sponsoring the university of Cincinnati Bearcat Electric vehicle racing team now this university's first all electric Formula race team and it's a great idea and a lot of fun for the company, we partnered with traffic and parking control companies, Inc. In Wisconsin, which is a traffic.
X D and parking solution provider and they will know Covid Blake.
Blake Chargers across their customer base in the wake of our Blue corner acquisition as Michael mentioned, they signed an exclusive contract with Ku Levonne for blue corner to install up 500 charging stations across Belgium, and another item a long term agreement to <unk>.
Deploy blank EV charging station Hotel Hotel group locations in Israel for reference for Tau is one of Israel's leading hotel companies with luxury hotels in 14 major tourist locations throughout the country.
As Michael mentioned, we have made a lot of structural.
To strengthen the company and capitalize on the interest and opportunities we're seeing in the marketplace. These improvements include expanding and improving our sales team our service operations team and our product development team.
We are very well positioned to support the anticipated growth growth ahead of us with that said our industry now like many others is beginning to encounter supply chain challenges related to the global shortage of semiconductors.
While our second quarter growth Werent impacted where we can.
Keep you posted on any effects, we see as we move through the balance of the year.
I will now turn it over to our CFO, Michael Rama to run through some of the specific results for the quarter Michael.
Thank you Brenda and good afternoon, everyone.
21 continues to be a strong fiscal year for <unk>.
Blake with total revenue growth of 177% to $4.4 million in the second quarter of 2021.
<unk> to the second quarter of 2020 revenues for the six months ended June 30 of 2021 grew 129% to $6.6 million compared to the prior year period.
This is noteworthy as revenues for the first six months of 2021 has already surpassed total revenues for the entire full year of 2020.
This growth has driven.
By increased product sales, increasing charging service revenues as well as increases in network fees.
<unk> revenues.
Revenues increased 156% in the second quarter of 2021 as compared to the same period in 2020 and product revenues for the six months ended June 30 of 2021 increased to 140%.
These increases were related to a robust demand for our commercial and residential Chargers charging service revenues increased 572% as compared to the second quarter of 2020 and 89% in the first six months of 2021.
The increase was attributed to the increased driving with the reopening of the economy as well as increased number of owned and operated units on our network.
Network fees grew 49% as compared to the second quarter of 2020 and 70% in the first six months of 2021.
The increase was attributed to increases in host owned units as well as billings and invoicing to property partners. During the first six months of 2021 compared to the six months ended June 30 of 2020.
Second quarter 2021.
Net loss was $13.5 million or <unk> 32 per share compared to a net loss of $3 million or <unk> 11 per share in the second quarter of 2020 for the second quarter of 2021 net loss was primarily net loss was primarily attributable to an increase in compensation expense and G&A expenses.
Net loss for the six months ended June 32021 increased to $28 million from $6 million in the prior period prior year period, specifically operating expenses for the second quarter 2021 increased to $13 million from $3.4 million operating expense.
<unk> for the six months ended June 32021 increased to $25 million from $6.8 million. This increase was primarily driven by an increase in compensation expense as we invest in our future as well as the additional personnel in conjunction with acquisitions of <unk> you.
And Hugo made during 2020, which was subsequent to June 30 of 2020, and the acquisition of Blue corner, which occurred in May of 2021.
A quick note on expenses in the quarter and first half as Michael mentioned, we are committed to investing in our future by ensuring that we have the people and operational infrastructure to quickly.
Patiently and effectively ramp our business as Ebu's proliferate proliferates tenant demands for charging alternatives escalates.
As of June 32021, since the inception.
Since it since its inception, excluding group corner, we sold deploy or acquired through acquisitions 18246 charges of which 7360. We're on the blank network. This consists of 4517 level to publicly accept necessity.
Commercial Chargers 1555 level to private commercial Chargers 105, DC fast charging EV publicly accessible charges 25, DC fast charging EV private Chargers and 1158 residential L to level, two blank EV Chargers and the remainder.
Where non network on other networks or international sales or deployments.
These charges.
These chargers and units are net of swap outs or replacements that we have done during the years.
In addition, as of August four 2021 since the inception of our.
Recently acquired Blue corner sold or deployed 8700, <unk> independent charged points, which all are on the Blue corners network, which comprises of 3816 level II publicly accessible commercial independent charged points 20, like DC fast charging publicly accessible commercial and <unk>.
Dependent charge points and 4873 private L. Two private D C and private residential independent charge points.
And now a few comments about our cash and liquidity at June 30 of 2021 cash and marketable securities was $195.6 million compared to $22.3 million at December 31, 2020. During the first quarter. If you all recall of 2021, we completed a successful equity raise of 230.
$2 million now I'll turn it back to Michael <unk> for additional remarks, and after that we'll open it up to Q&A.
Nicole.
So 2021 has been a busy year, we are energized and prepared to capitalize on the opportunities we're seeing to grow our role as a key contributor to the establishment of expansion of worldwide EV charging infrastructure.
This is an exciting time for our company and our industry and we look forward to driving continued growth and progress with that we will now open up the call for questions.
Thank you the floor is now open for questions. If you do have a question. Please press star one on your telephone keypad at this time, if you're using a speaker phone we ask that while posing your question you'll pick up your handset to provide the best sound quality again, ladies and gentlemen, if you do have a question or comment. Please press star one on your telephone.
Keep that at this time.
We will take our first question from Gabe Daoud with Cowen. Please go ahead.
Hey, good afternoon, everyone.
For all of the prepared remarks.
Michael I was hoping we could.
Just start with SEC.
The European strategy.
With Blue corner, essentially muffled could you maybe just give us some more thought thoughts on I guess, which countries you're targeting specifically and then I guess, just how you plan on going about the the plan there and how you plan on executing the European strategy on the back of Blue corner.
Very simply blue corner as a company that was very similar to our business and that's what made them extremely attractive for us.
Having the multiple methodologies are deploying having the hardware and implement operating model.
Really will allow us to expand spend the blink model, even more so in the European markets.
Hum.
There is.
We will fit between our businesses just from your perspective.
Business models hardware networking.
And then just an approach to how we work together.
It's just amazing.
With our business and we're looking to expand not only into the territories that are currently active in but really use them as a stepping stone.
The other areas of the European market and as.
Blink when most of them most of them. He may know more consolidation of about 10 or 11 companies now.
We look at Blue corner as being an amazing foundation for us to be able to acquire other businesses in the European space as well.
Got it thanks, that's helpful. Michael.
And then I guess as a follow up now.
Now again with Blue corner.
Got it.
Contribution coming from Europe, which is obviously already a pretty strong market in the U S. Accelerating how should we think about revenue potential for Blake I.
I guess moving throughout the rest of this year and into next year I know obviously, there's some supply chain maybe concerns that we have to think about but could you just help us frame what the revenue potential looks like for next year or maybe just give us a sense of.
Our port backlog or port inventory near term number it looks like.
Exact numbers.
We're not going to disclose here, but bottom line is as you can see there is a tremendous amount.
Money things and then also now being driven by by the us government to deploy infrastructure.
It's not an issue on on the demand side.
There's a lot of demand for charging infrastructure now.
It really is in preparation for all the Evs that are starting to hit the road.
You are correct that there are going to be some problems on the supply side.
Because of some of the trip restraints and so on and we now are looking at the.
The Delta variation of Covid, which are things that we're still monitoring very carefully but we're not.
Well again, we don't have a crystal ball we can.
The plan on exactly what's going to happen with these issue has been trying to do as best as we can.
But the industry without a question is growing the demand for charging infrastructure is off the charts.
We believe we've positioned ourselves properly but.
That is our orders started increasing in size and you can see that's happening we may have some pressure on the supply side.
Got it got it and then.
Just maybe sneak in one more obviously youre deploying across multi unit dwellings in health care networks, and you have a lot of really shifts on the site partner side just curious if.
There is any other relationships you could talk to on the auto OEM side, you mentioned that the G M.
Announcement during the quarter were.
<unk> network will show up on their App, but curious if there's any ways that you could attract or acquire customers at the point of sale of the actual vehicle.
Okay, well, it's important to understand that you know today, you can see bring charging station that Audi dealerships and you can see them in GM dealerships and you could see them over at Carmax.
And those are already by Q2 hundred model a bottler.
You can't get better validation that.
Meanwhile, our hardware is really has been developed for.
Where the market is going to be but if you look at our competitors hardware and their output.
It's really where things were years ago.
Maxed out.
<unk> capacity.
And we're planning on with the introduction of our next generation of <unk> doing the same.
So yes, it's important to be able to go ahead and have the right hardware offerings to be able to work with some of these Oems right now again, the validation that we're showing is go to our mobile application and see all the different locations that we're constantly.
Deploying hardware I look at our numbers.
Are you talking about north of 3000 charging stations.
We deployed.
Youre talking over you know on average over 1000 a month.
And those numbers are going to start increasing in your guidance is.
It's broad based it's not only multifamily is it's not only a car dealerships. It's the only mixed use it's not only health care facilities with literally across the board.
Really understanding that our hardware.
It is something that really deals with obsolescence.
Any any sustainability good for any company that has to look and say, okay. We need to spend X amount of dollars today. They are not going to want to spend that money again in a year or two from now when the cars like the.
The homeowners and the ideas that are coming out and the Cadillac sort of coming out do have the capacity to match, our charging stations, but by far.
Exceed what our competitors hardware.
Currently.
Choose so if you're not buying our hardware youre buying obsolescence, that's the bottom line today and again those in the industry, the Gms and the Audi isn't and so on they are seeing this and it's being put into their dealerships.
Got it thanks guys.
We will take our next question from Vikram, but I agree with Needham <unk> Company. Please go ahead.
Yeah.
Hey, guys good evening everyone.
Couple of quick questions for me first on the EU strategy can you talk about how you foresee clothing food solutions in Europe, and if you would look to make acquisitions in that category to get a stronger foothold also while we're on the same topic can you talk about the uptime in your you assets give us debit recently acquired.
And what kind of spending required for updating the hard way it up do the acquired assets and improving the uptime.
If it's lower than your U S asset base.
Yeah.
Brendan is it possible for you to grab this one.
Yeah, I mean, I'll I'll I'll speak to the uptime.
So if we're talking about the blue corner network on itself will.
We continually work to up grade the system there, but we'll also work as you might imagine as you purchase.
Lot of companies simultaneously, you're going to have some behind the scenes efforts to Communize AR.
Platforms and standards.
So that you can mitigate expense so assignments and looking at that we will have global standards for uptime across the board, both internally and published to our partners.
And on a product side will begin to <unk> platform over time.
Across both European and the United States with geographic specific products that fit the custom needs of each country or a region.
Businesses as you might imagine right now were deploying in selling Chargers into South America Dominican Republic.
Into Greece into Israel, and to Belgium, France, and several other countries in the EU. So over time, we'll work to get synergies across those platforms that benefit blank and bring better value to our customers, whether they're a b to b or b to C.
Thank you.
And then if I if I can squeeze in one more.
Could you give us a better handle on the expense front compensation expense has obviously increased and you're entitled to.
Well of course has increased a lot and you've seen the largest increase in revenue. So it's understandable.
But are we can you just like give us an indication of what the trajectory of our compensation expenses going to be dressed up here.
Second quarter run rate is a good run rate that we should assume going forward and what kind of increases we should expect a new desktop.
Yeah.
Yeah, I'll jump on that and obviously, where we've had an uptick in compensation. Obviously, we we added boot corner booth.
And you go in the mix compared to previous quarters.
We've increased our staff.
Our employees from 66 to over 170.
In a year or so.
We're investing in the future, we're bringing our bodies and now we're bringing the top talent in now.
On a run rate for the rest of the year.
I hope to bring in more quality talented people.
The company is a good thing so so to say, it's going to stay static.
We will see some uptick.
And in those areas.
And then obviously, if we do other acquisitions or other.
Other.
Expansion that would.
As well to that so.
Okay.
Yes, I only asset.
When you look at talent.
It's one of the key components to the success of the company both from a leadership and ingenuity envisioned perspective so.
So we filled a lot of key holes in the company over the last quarter and over the last six months to a year.
We need more bandwidth will continue to add head count at the lower levels.
I have one or two high level strategic positions that has to be filled but is really growing that base of people that moved the company on a daily basis that will need to focus on over term overtime and hiring those people.
And as you May know if the company is performing well.
<unk> has over the last year you begin to attract.
And.
More talented people come to you as opposed to your recruiting them and we've seen that phenomenon take place here Blake.
Understood. Thank you very much.
As a reminder, ladies and gentlemen, if you do have a question or comment you May press star one on your telephone keypad at this time again Thats, Tom I Wonder if you'd like to enter the queue. We will take our next question from Sameer Joshi with H C. Wainwright. Please go ahead.
Yes, thanks, good afternoon, everyone.
Just one quick clarification on the revenues from Blue corner.
Have they been included pro forma for the entire quarter or.
Our only starting from me then.
When the transaction closed.
Yes. They are included from May 10th.
The transaction close you'll see when we file our 10-Q on a pro forma what it looks like for what 2020 would it look like as well as 'twenty partial 2021 with little corner included.
In our results, but for the actuals, it's from the acquisition date forward.
So the charging revenues are likely to be if everything else remains the same charging revenues are likely to be slightly higher in the third quarter.
Yes.
Yeah, that's correct and obviously you know obviously.
As a EV.
Economies are continuing to open obviously, we're seeing more driving we're seeing more usage of out of the arc of our charters so expectations, but if there are some constraints that come out because of.
Because of the Delta variance that may limit some people's driving.
So in the summer season, especially in Europe that could impact that a little bit as well right. So you have to factor that into the seasonality. That's included in there. So it can't be sometimes it's not strictly linear you have to factor in seasonality as well as environmental factors.
Understood Thanks for that.
And then during the quarter I think you upgraded 94 solution charging stations do I go to Q2 hundred instead of schedule or plan to do this going forward and how many of these are you targeting to.
The next few quarters.
Michael you want me to do that.
So how do you think that yeah, yeah. So.
Theres a schedule exact numbers.
They're constantly floating.
Daily, but we have two challenges there our first challenge is making sure we upgrade all the chargers or as many as possible that are under the owner operator model that effort is going well.
And the second one is then to provide discounted.
Efforts on Chargers to our site hosts that half.
Owner, operator partners on units sold so on Blayne. There's we're moving forward are at a very aggressive position.
Right now, giving them a movie.
Moving forward with.
On the site hosts and installing them we have several construction companies working across the United States to do this swap out so we anticipate with over the next.
Six months, we'll get the majority of our old generation Chargers swapped out and new generation charges put in place.
Understood Thanks for that.
And then just one at a macro level I think the one trillion package that is being discussed.
Federal level has.
And the $15 billion, if not more for charging infrastructure.
Does blame you.
At a point person or contact in D C.
That will position us to take advantage of this.
Any high level comments would be appreciated thanks.
Sameer we've been as you can see has been very successful in receiving grants rebates and being involved in these programs.
As evidenced by the program. We just received in the state of Florida about $12 million of the boy easy fast Chargers throughout the travel corridors.
We have been focusing a lot of our resources in some of the money that we have spent.
Is bolstering our granted rebate department.
Net money for us and as you can.
Achieving what the by the administration is doing here as well as others.
Globally, there is a lot of money available and we have a lot of experience.
Going out there and getting that money and we're going to continuously do so so.
Yes, it's important to us we're focusing our resources on it and we spent.
Then on growing that.
Division that group.
Even more so in regards to relationships.
Throughout the country and throughout municipalities.
What separates us from a lot of our competitors is the fact that we own and operate and we actually have relationships with these municipalities and we own and operate or where operating charging stations that they have in their locations already unusual legacy contracts some of them.
Six 710 years old.
So yes, we're able to then work with these organizations work with the quasi government agencies that have dispensers and some of these funds.
Working with municipalities to be able to go ahead and.
Deploy these hardware and theres locations. So we feel very confident that we're going to be a tremendous beneficiary of all of these different pools of capital and whether it's billed in making in the U S.
Or whether it just EV charging infrastructure subsidies.
Have the experience and growing up and getting that capital we have a history of building out there getting that capital and we plan on really focusing a lot of efforts on doing so.
The only thing I'd add comment but is that in D. C. We have a dedicated lobbying and our government affairs team that covers not only D C.
All of our California, and we cover all the top EV states as well as government affairs and lobbing. So we have a presence.
Strong presence now.
No that's that's going to be.
Essentially I'm going forward, thanks, and congrats on the progress.
We will take our next question from Noel Parks with Tuohy Brothers. Please go ahead.
Good afternoon. This is judson filling in for now it's been a busy couple of months on the March forward.
George on the shift to EV.
No. We've had updated goals for them are U S. Automakers have back against the structure Bell how if at all has this impacted your view of of E D adoption.
And <unk> sales.
So we couldn't be happier about what's going on in the EV charging station, especially in.
From what.
Products that the Oems are now trying to.
You know release, there's more cars available now than ever before.
There's more products being released I mean, if you look at what's going on from from Volkswagen and all of their subs Audi Porsche.
Globally, <unk> shoot and so on it's amazing what we're starting to see and again Julien.
Lose your manufacturers basically.
<unk> disclosed that they are going towards easy, but that is the future of transportation. So we're very excited about what's going on and what we're seeing.
Brendan went ahead and just.
Yeah, Hi, more for you Michael.
Okay.
Oh I'm sorry go ahead Mike.
No that was Brendan I said, the only thing I mean aside from the Goosebumps Goosebumps and has it actually happening now after waiting all these years.
You know I think it does.
Back to what Mike was saying, we're excited but simultaneously.
Taking it very seriously, where we really spent a lot of effort structurally adjusting this company with new personnel the top talent to be ready for this moment in time.
And we're more ready now than we've ever been before and we still have more work to do to make sure that we best in class.
Well with that.
My second question, maybe ties into that a little bit you talked a lot about the expansion of of your sales and marketing effort and the priority.
That is can you talk about sort of the the highest priority goal.
For the new sales staff to address at this point.
Michael you want me to do that or do you want to handle it yes, Chris I'm on an airplane and then there's a lot about pumping vessels.
So goal number one for the sales team is to find locate and then sell to <unk>.
High utilization sites across the United States. Those are the type of sites, where we place Chargers, we pay for the charger the installation and we know before we do it that we havent teen long term income stream. So that's the number one goal there are secondary goals is to generate revenue through other.
<unk> and services that we have they do number one it makes number too much easier I mean, we operate over this flexible model, we sell charges than we installed into the owner operator model. Then we have a flexible hybrid model that lets us do a lot of boat and their goal is to make sure that when they need a signpost that.
<unk> is going to pick one of the three of those options and that flexibility really sets us apart from the industry. Because we were the only EV infrastructure company that offers that level of flexibility to every site hosts in the United States, but number one priority the owner operated model and excellent site hosts that.
<unk> utilization in income for the long term.
Very helpful. Thank you.
That concludes our question and answer session will turn it back to Mr. Parker for closing remarks, Sir the floor is yours.
Yeah.
Thank you everyone for joining us we appreciate your participation and we're extremely excited about.
Here is ahead of us, especially in the immediate future and they will be both near and long term, it's very exciting times in our industry.
And we see a lot of the tremendous growth opportunities globally.
Thank you everybody.
Thanks.
This does conclude teleconference. We thank you again for your participation you may disconnect. Your lines at this time and have a great day.
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