Q4 2021 Volta Inc. Earnings Call

April 18, 2022

[music].

Okay.

Operator: Ladies and gentlemen, thank you for standing by. Good morning, my name is Donna and I'll be your conference operator today. At this time I would like to welcome everyone to Volta Inc's fourth quarter and full year 2021 earnings conference call and webcast.

At this time all participants are in a listen only mode. A question and answer session will follow the formal presentation. If you would like to ask a question you may press star one on your telephone keypad. If anyone should require operator assistance during the conference please press star zero on your telephone keypad. As a reminder, this conference is being recorded.

Operator: I will now turn the call over to Katherine Bailon, Volta's Vice-President Investor Relations. Katherine, please go ahead.

Katherine Bailon: Good morning, and thank you for joining us on today's conference call to discuss both the fourth quarter and fiscal 2021 financial results. This call is being broadcast over the web and can be accessed on the investors section of our website at investors.voltacharging.com.

With me from Volta on today's call is Brandt Hastings, interim CEO and Chief Revenue Officer, Francois Chadwick, Chief Financial Officer, and Drew Bennett, Executive Vice President Network Operation.

We would like to remind you that during this conference call management will be making forward looking statements, including statements regarding our expectations related to financial guidance outlook for the sector and company and our expected investment and growth initiatives.

our expected investment and growth initiatives.

Please note, these forward looking statements are based on current expectations and assumptions, which are subject to risks and uncertainties. These statements reflect the company's views only as of today and should not be relied upon as representative of views as of any subsequent date and Volta undertakes no obligation to revise or publicly release the results of any revision to these forward looking statements in light of new information or future events.

no obligation to revise or publicly release the results of any revision to these forward looking statements in light of new information or future events.

These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations.

For further discussion of the material risks and other important factors that could affect our financial results, please refer to the company's filings with the SEC, including its most recent annual report on Form 10-K filed on April 15th, 2022 .

In addition, during today's call the company will discuss non-GAAP financial measures, which they believe are useful as supplemental measures of Volta's performance.

These non-GAAP measures should be considered in addition to and not as a substitute for or in isolation from GAAP results.

You will find additional disclosures regarding the non-GAAP financial measures discussed on today's call in Volta's press release issued this past Friday and its filings with the SEC. Each of which is posted on the Volta Charging website.

The webcast of this call will also be available on the Investor Relations section of the company's website.

With that I will turn the call over to Francois.

Francois Chadwick: Thanks, Katherine and thank you everyone for joining us.

Francois Chadwick: Volta arguably addresses one of the fastest growing, most exciting sectors: electric vehicle charging.

The company's high impact, large format, digital screens located near the entrances of popular commercial properties and retail locations simultaneously serve as a demand pull for EV adoption, attract customers to the sites and a lot of brands to reach shoppers seconds before they enter a store to make a purchase.

You make a purchase this.

This buildout of Volta's media network is the company's top priority.

2021 was the transformative year with tremendous growth for both Volta and the EV industry, heralded by rapid evolution as the shift to really be solidified on public and private sector support accelerated.

We are all quite familiar with the significant time involved in EV charging. What is new and noteworthy is the increasing momentum of the shift to EVs evidenced by recent OEM actions.

As gas prices surged in March, online searches for electric cars in the United States at the highest recorded levels since tracking began in January 2004, according to Google trends.

Also during in 2021, we saw 102% year over year growth in EV units sold in the U.S. market per Bloomberg, New Energy Finance. With this in mind, at Volta we've seen an increasing demand for DC fast charging stations.

That is what is driving our decision to lean into the DC fast first strategy.

We will talk more about that shortly.

Take note, these metrics all remarkable exciting and significant industry bellwethers and Volta is poised to benefit with a renewed focus on execution and site expansion via our London expand strategy, furthering the competitive moat for Volta.

Other than the competitive moat for Volta.

Before we take a deeper dive into the successful year, I'd like to address the recently announced management transition.

On March 28, 2022, Volta and now that the company's Chief Executive Officer, Scott Mercer, and the company's President, Christopher Wendell agreed to the resignation of each as an officer and employee of the company.

I'm the company's President Christopher Wendell.

agreed to the resignation of each as an officer and employee of the company.

Mr. Wendell's resignation was effective immediately, while Mr. Mercer continued for a transition period ending on the filing of the company's annual report on Form 10-K for the fiscal year ended December 31, 2021 as was filed on Friday, 15th of April 2022.

as was filed on Friday, 15th of April 2022.

Mr. Mercer will serve as an independent adviser to the company's board of directors through March 31st, 2023.

The board appointed Brandt Hastings as the interim Chief Executive Officer. in addition to his current position as the company's Chief Revenue Officer effective as of Mr. Mercer's resignation.

The Board has also formed a CEO search committee in order to identify a permanent replacement Chief Executive Officer.

Now, let me pass it to Drew Bennett, our EVP of Operations to discuss one of our major successes of the year.

Drew.

Drew Bennett: Thanks, Francois.

On February 14th of this year, we announced a really significant expansion of our Walgreens partnership.

Our announced expansion includes an additional 1000 DC fast charging stalled at 500 U.S. based Walgreens locations over the next 12 to 18 months.

500 U S based Walgreens locations over the next 12 to 18 months.

Walgreens is a perfect match for faster forms of both the charging given the average time a Walgreens shopper typically spends in store.

As you can imagine that average time at Walgreens is in the 15 to 20 minute timeframe.

The DC fast charge that can give a driver a very meaningful charge.

This charge and interaction is another touch point for the Walgreens customer, providing an opportunity to increase sales during the store visit in a number of ways.

A win for all parties, Walgreens, the driver and Volta.

We began our partnership with Walgreens in 2019 with 50 stores. That initial partnership has grown into a relationship where together we looked at the market and decided to take the next step in 10X our ambition, resulting in the agreement for an additional 1000 DC fast charging stalls at 500 locations.

resulting in the agreement for an additional 1000 DC fast charging stalls at 500 locations.

I will now pass the Brandt Hastings, our interim CEO and CRO to discuss further our continued successes. Brandt.

Brandt Hastings: Thanks, Drew, and it's great to be with you all today. I'd like to add Walgreens is also a good example of our land and expand site acquisition strategy.

Our goal is to sign as many high value partners as possible and then grow our footprint, over time, in a capital efficient manner that provides consistently high utilization for our site partners.

With that as we look towards the rest of the year and beyond we expect to see the market demand for DC fast charging continue to increase and we plan to deliver accordingly.

And we plan to deliver accordingly.

Our partners keep coming back to us because they see the impact that Volta Charging has on their properties over time.

Ahold Delhaize USA, the largest grocery retailer group on the East coast, which includes: the Stop and Shop, Food Lion, Giant Foods, Giant Martins and Hannaford Brands has been a wonderful partner to grow with.

Since the initial work began in November of 2019,

Volta's relationship with Ahold Delhaize USA has expanded to deployments at 115 stores in four of the five banners with plans for the fifth banner underway.

In addition, Ahold Delhaize USA's media arm, Peapod Digital Labs has also begun selling our media inventory as a channel partner and value added reseller.

This relationship represents how Volta provides retail partners with a suite of solutions to help drive impact.

As mentioned, the value of a site is not only in the initial footprint, but also in the growth in stalls, energy delivery and purchasing influence that we can drive alongside the shift to electric mobility.

At Volta, we are focused on driving commercial impact for our partners.

Third party studies have demonstrated that the presence of Volta stations can create significant shifts in consumer spend.

As examples of how Volta drives impact for our partners, I want to comment on three studies of note, each with greater than 300 participants, which garnered the following results.

each with greater than 300 participants, which garnered the following results.

The first study, done for our banking provider, showed awareness of and advertised credit card increased to 55%, as opposed to 35% from the control group.

as opposed to 35% from the control group.

A second study, for a grocery store site partner, found 67% respondents stated greater favorability to the brand because of the charging amenity, and 48% would choose that store over another because of the charging amenities.

67%.

found 67% respondents stated greater favorability to the brand because of the charging amenity, and 48% would choose that store over another because of the charging amenities.

of the charging amenity, and 48% would choose that store over another because of the charging amenities.

and 48% would choose that store over another because of the charging amenities.

A third study, done by a major pharmacy, showed 68% of respondents had greater favorability to their brand because of the charging amenity and 63% would choose that store over another because of the charging amenity.

respondents had greater favorability to their brand because of the charging amenity and 63% would choose that store over another because of the charging amenity.

63% would choose that store over another because of the charging amenity.

Not surprisingly, this particular third party study result, led to this brand further expanding their relationship with Volta.

Volta is the only charging company and media company that offers brands this compelling opportunity.

Now I'd like to pass it back over to Francois.

Francois Chadwick: Thanks, Brandt.

Moving to the policy tailwind that we are seeing. The infrastructure investment and jobs Act (IIJA) marks a historic level of investment in electrifying transportation and in particular in easy charging infrastructure.

marks a historic level of investment in electrifying transportation and in particular in easy charging infrastructure.

Recent data from Bloomberg, New Energy Finance indicates the U.S. will need to significantly accelerate investment in charging infrastructure and we are seeing state and federal funding initiatives already beginning to emerge.

IIJA funds for EV charging totalled $7.5 billion, which will be deployed later this year and into 2023 and beyond, accelerating installation momentum.

While federal guidelines for these funds are still being developed, Volta expects that a significant portion of our go to market strategy fits the definition of where the funding dollars will be allocated.

Volta is actively working with federal government and state governments to ensure that we are well placed to benefit from such monies.

In particular Volta is also uniquely positioned to benefit from the portions of the $7.5 billion allocated to EV infrastructure planning and to community routes.

<unk> entities, such as utilities and state departments of transportation and department of energy, must submit funds to the federal government by August 2022, that detail effective and efficient plans that make adequate consideration for access to public to EV charging, especially in historically underserved communities.

Underserved communities.

Volta's has proven AI powered market leading analytics tool, PredictEV, is already being used by some of the largest utilities in the United States, along with policymakers, analysts and consultants to ensure utilities and public entities, are making cost efficient, impactful and just decisions about where to deploy charging.

along with policymakers, analysts and consultants to ensure utilities and public entities, are making cost efficient, impactful and just decisions about where to deploy charging.

Thus far, Volta has amassed a significant reference list of utility customers, such as Southern California Edison, DTE Energy and Southern Company, which encompasses Mississippi Power, Georgia Power and Alabama Power.

DTE Energy and Southern Company, which encompasses Mississippi Power, Georgia Power and Alabama Power.

Volta's intelligent network planning is second to none in the industry and it shows that taxpayers spend is deployed as efficiently as possible.

In fact, the state of Alabama used PredictEV to build and deliver an EV infrastructure plan earlier this year.

In addition, Volta just announced a new partnership with Southern Company, expanding our software and analytics collaboration to PredictEV fleet, a new tool in the growing PredictEV suite.

That enables utilities to deliver to that fleet customers a tool for electrification planning at scale.

Turning to Volta's recent international expansion into Europe, we are encouraged and excited by the initial reception in key EU market, such as Austria, Germany, France and Switzerland.

The European market is roughly five plus years ahead of the U.S. and Volta is positioned to provide European advertisers a unique opportunity to promote their brands across continents.

In Europe since December ,we have signed 25 media soles with 11 partners, including sites from German Cinema Company, Cineplex Group, Sporting goods chain, Decathlon in Switzerland, as well as European car service provider of Euro Master and the Hibiscus Hotel Group in France.

Importantly, these initial deals provide critical credentials, enabling Volta to address the larger tenders underway for which we already see very positive feedback.

Before turning to our Q4 and full year results, let me explain the two main KPIs, we track as it relates to stall installation.

These are:

stalls turned on and stalls signed in our development pipeline.

In store signage in our development pipeline.

Now turning to our Q4 financials and full year results.

For the fourth quarter, we delivered within alright range for revenue installations and signings.

New stall signings in our construction queue exceeded expectations by 22%.

Volta's Q4 revenue grew 45% year over year to $12.1 million.

Yeah.

Total FY 2021 revenue grew 66% year over year to $32.3 million.

Q4 behavior and commerce revenue, which is our major advertising business grew 16% quarter over quarter to $8.6 million and 124% year over year.

Furthermore, behavior and commerce revenue for the full year was $26 million, up 224% from 2020.

We ended the year with an installed base of 719 sites, 55% year over year, and 2,330 stalls, up 44% year over year.

55% year over year.

and 2330 stalls, up 44% year over year.

For the full year 2021, we signed 635 sites, representing 1,718 stalls. We exited the year with 567 sites and 1,588 stalls in our signed construction pipeline.

Based on these signings, we anticipate we will effectively double our network of stalls and this was before we announced our deal with Walgreens in February of 2022.

and this was before we announced our deal with Walgreens in February of 2022.

Our average revenue per year in stalls in 2021 was just under $14,000.

During the fourth quarter, new brands to Volta's media advertising platform included Procter and Gamble, Oakley and Volvo.

Brands that ran additional campaigns on Volta media networks during the fourth quarter included J.P. Morgan, Chase, Sephora, Coca-Cola and Amazon.

Cost of services in the fourth quarter was $7.9 million compared to $5.8 million in the prior year period, primarily due to an increased station rent driven by a larger aggregate number of site leases, additional advertising and media costs, and a rising network cost due to an increased charge with station data plows.

additional advertising and media costs, and a rising network cost due to an increased charge with station data plows.

Our gross margin for the quarter was 28%. For the full year 2021 gross margin was 24%.

SG&A expenses, excluding stock based compensation and one time expenses, were $32.2 million for the fourth quarter, $87.1 million for the year, as compared to $13.1 million and $38.8 million, respectively, which also excluded stock based compensation and one time expenses in the prior year period.

$87 1 million for the year.

as compared to $13.1 million and $38.8 million, respectively, which also excluded stock based compensation and one time expenses in the prior year period.

which also excluded stock based compensation and one time expenses in the prior year period.

The increase year over year was due principally to increasing head count and related costs and public company compliance costs.

Including stock based compensation and one time expenses, SG&A was $128.8 million for the fourth quarter, $262.6 million for the year compared to $17.6 million and $44.1 million for the prior year period.

Adjusted EBITDA was $30.7 million loss for the fourth quarter of 2021, as compared to $12.9 million loss in the fourth quarter of 2020.

Net loss was $121.1 million for the fourth quarter compared to a loss of $31.5 million for the prior year period.

The company had cash and marketable securities balance of $262 million as of December 31st, 2021.

As we have mentioned in the past, we are actively pursuing non-dilutive capital to fund the next round of Capex to meet the increasing and enormous demand signals we see in the marketplace from our customers to place stalls on new sites, place more stalls on our current sites, build out our media network and drive the greatest service to the EV drivers, the site partners and our advertising clients.

build out our media network and drive the greatest service to the EV drivers, the site partners and our advertising clients.

Volta made significant process to build out key functions in the organization as we rapidly scaled the business.

To that end, we are increasing head count in 2021 by 210 persons, making key hires across Europe, our data science and engineering team, supply chain management, finance sales and operations, and then making sure and ensuring that we have the right resources in place to execute on our strategic initiatives.

data science and engineering team, supply chain management, finance sales and operations, and then making sure and ensuring that we have the right resources in place to execute on our strategic initiatives.

As a result of the separation agreement with our founders, Mr. Wendell forfeited 3,492,972 restricted stock units and Mr. Mercer forfeited 4,923,695 restricted stock units.

Mr. Mercer forfeited 4,923,695 restricted stock units.

We settled $10.5 million class B restricted stock units held by Mr. Wendell and Mr. Mercer.

Further, each share of class B common stock held by our founders and any equity award or convertible securities, we nominated in shares of class B common stock held by the executives, will be converted into an equal number of shares of class a common stock or securities convertible into class A common stock.

The weighted average shares outstanding for the fourth quarter were 160.4 million.

164 million.

Turning to our outlook for 2022, based on current market conditions and input from our customers and team, we are reiterating our outlook for 2022 revenue to be in the range of $70 million to $80 million.

we are reiterating our outlook for 2022 revenue to be in the range of $70 million to $80 million.

Regarding quarterly revenue, we have provided more context on the seasonality of our revenue. In the media industry advertising revenue tends to build as we move through the year and the first quarter historically is the lightest as most media budgets ramp towards the fourth quarter.

As most media budgets ramp towards the fourth quarter.

Businesses revenue generation will likely align in part with the media industry's cadence of advertising spend and as a result, we expect 2022 revenue to be greater in the second half of the year is a reflection of the growing scale of our Volta media network and accompanying seasonal media patterns.

Patents.

Total incremental connected stalls will be in the range of 1,700 to 2,000.

In addition, the company is now guiding to total incremental connected sites to be in the range of 650 to 750 sites.

For the first quarter ended March 31, 2022, we are reiterating our prior outlook for first quarter revenue to be in the range of $8 million to $8.5 million.

first quarter revenue to be in the range of $8 million to $8.5 million.

I would now like to wrap up and share the multitude of reasons, we remain excited about the future for Volta.

The underlying shift to electrification provides a meaningful long term tailwind for Volta.

Volta has one of the greatest growth in stall networks, a growing customer base and a world class operating team, enormous market opportunity and the right product to meet that opportunity.

Proof points to this include Volta's market leadership in revenue per stall in the U.S., our market leading utilization in the United States, our traction building with marquee customers, such as Walgreens, and we still have untapped revenue streams, we expect to monetize over time, such as charge for charging that should further increase our revenue crystal and utilization.

, our market leading utilization in the United States.

our traction building with marquee customers, such as Walgreens, and we still have untapped revenue streams, we expect to monetize over time, such as charge for charging that should further increase our revenue crystal and utilization.

All of this gives us confidence that we are at the cusp of a very exciting time in the history of our company.

We aim to meet this exciting challenge with execution excellence, and we will be turning our attention towards making Volta the very best that it can be in this regard.

Before I turn the call over to the operator for Q&A, we would ask you to keep your questions focused on our financial results and outlook.

would ask you to keep your questions focused on our financial results and outlook.

At this time, we are not in a position to provide additional color on changes to our management team beyond what has already been disclosed.

With that, I would now like to open up the line for Q&A, I'll be directing all questions.

Thank you.

Operator: Ladies and gentlemen, the floor is now open for questions. If you would like to

ask a question, please press star one on your telephone keypad at this time. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Once again that is star one to register a question at this time.

Our first question today is coming from Mark Delaney of Goldman Sachs. Please go ahead.

Mark Delaney: Thank you so much for taking the questions.

Multiple speakers: First question was for you Brandt. I'm just hoping you could elaborate a bit more on your priorities and what the board has asked you to focus on in your role as interim CEO? Hey, Mark. This is Francois. Thanks for the question. I'll pass it over to Brent in a second, but I would say I think our priorities remain very much the same. It's all about it in the revenue guidance, in which we'd mentioned the guidance for the year was $70 million to $80 million and hitting the site locations in the stall installation cadence,

Francois Chadwick: Hey, Mark. This is Francois. Thanks for the question. I'll pass it over to Brent in a second, but I would say I think our priorities remain very much the same. It's all about it in the revenue guidance.

In which we'd mentioned the guidance for the year was $70 million to $80 million and hitting the site locations in the stall installation cadence,

locations in the stall installation cadence,

Francois Chadwick: We mentioned 1,700 to 2,000 stalls for 2022. I think that's the real focus.

I'll pass it over to Brandt to add any additional color and once again thanks Mark.

Brandt Hastings: Thanks, Francois. I appreciate it and thank you Mark for your question. Good morning, it's great to be with you all today. I'd really love to underscore our Francois' comments around we are extremely focused on executing our business plan at Volta and as we stated including on this call, that falls into two very important categories. The first is revenue, right, that range of $70 million to $80 million in 2022. Second is our focus on continuing to put stalls in the ground with incremental connected stalls in the range of 1,700 to 2,000 stalls in 2022. I really appreciate that question. Thanks, so much Mark. I'm going to turn it back over to the operator.

on this call, that falls into two very important categories. The first is revenue, right.

That range of $70 million to $80 million in 2022. Second is our focus on continuing to put stores in the ground with incremental connected stalls in the range of 1700 to 2000 installs in 2022 I really appreciate that.

question. Thanks, so much Mark. I'm going to turn it back over to the operator.

Mark Delaney: Okay. Just from my follow up question, and then I'll turn it over to the other questioners in the queue.

First of all, one for you on expenses. This year, can you help us think about expenses both in terms of operating expenses and capex? Thank you.

Francois Chadwick: Yeah. Thanks again, Mark. So, I think when you look at our operating expenses one of the things you have got to do as you look at 2021 is there was a large amount of <unk> SG&A as it related to non-cash, stock comp expense. That was a significant figure.

SG&A as it related to non-cash, stock comp expense. That was a significant figure.

stock comp expense. That was a significant figure.

And if you look at yes I.

I did mentioned that the adjusted SG&A, when you excluded all of that stock based comp and the one time expenses was a $32.2 million for the fourth quarter and $87.1 million for the year. As I mentioned those adjustments are large adjustments for non-cash stock based compensation as well as some of the one off costs as it relates to actually going through the piece back, the merger and on top of that, as we've mentioned, we've been growing the company 210 additional people in sort of key areas that we - as we continue to grow and expand.

Sure.

as well as some of the one off costs as it relates to actually going through the piece back, the merger and on top of that, as we've mentioned, we've been growing the company 210 additional people in sort of key areas that we - as we continue to grow and expand.

Lights to Capex.

As it related to capex, firstly I want I mentioned that we have a very robust capex committee that looks at every single project that we may have coming in the pipeline and as you know, we look to make sure that we position all of our stalls in the most highly visible locations in front of the stores. We also spend a lot of time looking at the the needs of the site owner and as I've mentioned in my earlier prepared remarks, we are the sort of new demand for DC fast, DC First.

as you know, we look to make sure that we position all of our stalls in the most highly visible locations in front of the stores. We also spend a lot of time looking at the the needs of the site owner and as I've mentioned in my earlier prepared remarks, we are the sort of new demand for DC fast, DC First.

So as we look at capex, as we look at where we look to the best return on that capex spend we obviously run it through our internal calculations.

to the best return on that capex spend we obviously run it through our internal calculations.

we obviously run it through our internal calculations.

Mark Delaney: Do you have any specific figures you are able to share in terms of guidance for SPCC with or without - oh, sorry SG&A

with and without stock based comp and for capex this year?

Francois Chadwick: No, we've not provided that guidance yet, Mark.

Mark Delaney: Okay I'll re-queue. Thank you.

Operator: Thank you. Our next question is coming from of Pavel Molchanov of Raymond James. Please go ahead.

Pavel Molchanov: Thanks for taking the question.

Happy to see you guys kind of leaning into the European opportunity.

Of your incremental new builds this year, can you talk about the percentage or you know or share that Europe will represent within that?

new builds this year, can you talk about the percentage or you know or share that Europe will represent within that?

can you talk about the percentage or you know or share that Europe will represent within that?

Francois Chadwick: Yeah. Thanks for that, Pavel. I will take this one.

I'll just start with a broader macro picture of Europe, if you don't mind. We launched in Europe earlier in 2021 and we built out the team. We have folks located in Berlin, Germany, and in Paris, France. We build that team out now there is approximately 20 folks between the two offices.

and we built out the team. We have folks located in Berlin, Germany, and in Paris, France. We build that team out now there was approximately 20 folks between the two offices.

We find that there's an incredible amount of demand that's coming in the door from site partners and also from advertising clients. The offer that we're putting out there, our offer of the stalls in the prime locations with the advertising and the media, is resonating very, very well. We've I've mentioned a couple of success stories, that you are - with respect to sort of Cinemark site locations, we are the - Mercedes actually on the on the screens as well.

from site partners and also from advertising clients. The offer that we're putting out there, our offer of the stalls in the prime locations with the advertising and the media, is resonating very, very well. We've I've mentioned a couple of success stories, that you are - with respect to sort of Cinemark site locations, we are the - Mercedes actually on the on the screens as well.

stalls in the prime locations with the advertising and the media, is resonating very, very well. We've I've mentioned a couple of success stories, that you are - with respect to sort of Cinemark site locations, we are the - Mercedes actually on the on the screens as well.

with respect to sort of Cinemark site locations, we are the - Mercedes actually on the on the screens as well.

site locations, we are the - Mercedes actually on the on the screens as well.

So as it relates to our overall percentage, we've not disclosed that so far about, but I can say that it is looking to be a very attractive percentage overall.

Pavel Molchanov: Okay.

Fair enough.

Also on the international front, you <unk> up one point plans to enter the Canadian market. Can we get an update on that?

<unk> up one point plans to enter the Canadian market. Can we get an update on that?

Francois Chadwick: Yeah. Thanks, Pavel. I think the way I'd like to address that because it is a good question, it is a question that I address every day. I'd sort of tie this back to the question Mark Delaney from Goldman asked. This is a this is a capex type question. As we look at deploying our capital to be to attract the greatest return.

Mark Delaney from Goldman asked. This is a this is a capex type question. As we look at deploying our capital to

be to attract the greatest return.

The team does look at opportunities in different locations. Canada would seem to be very, very easy option to consider and it is one of the things we are looking at and we continue to look at, as well is I would say, Pavel, as well as other countries in potentially Europe, and other places as well. All of it goes through our capital infrastructure committee all of it is measured up against all of the opportunities we're seeing.

in potentially Europe, and other places as well. All of it goes through our capital infrastructure committee all of it is measured up against all of the opportunities we're seeing.

measured up against all of the opportunities we're seeing.

So, I'd say, yes, we look at all these opportunities and yes, we make sure that we are running through our Capex Committee to make sure that we get the best return, the best bang for our buck.

Thank you, Pavel.

Pavel Molchanov: Maybe just zooming in finally on your revenue guidance.

You're not breaking out, I realize the the individual line items, but do you anticipate that electricity sales will be rising as a portion of your revenue mix over time?

over time?

Francois Chadwick: Yeah, Pavel,

I think we've always mentioned that the back half of this year, 2022, is when we are looking to turn on and colloquially call it the charge for charging, we anticipate that is still in the plan. So, as a percentage of the overall revenue pie, yes, it will - there will be some incremental increases as we run towards the backend of the year and into 2023 and beyond. I think the key thing to remember here is, I'll go back to a couple of my prepared comments here Pavel, is if you just did simple math, we're running at an average revenue per stall based on year end of $14,000 of revenue per stall and that is we believe one of the highest in the in the industry. If you then think about the ability to actually turn on that charge for charge, that's just a layer cake that allows us to really put ourselves in a key position, a phenomenal position actually, and definitely as we can sell more and more of that on as we roll into late 2022 into 2023, I think this is a key winning proposition.

back half of this year, 2022, is when we are looking to turn on, we colloquially called it the charge for charging, we anticipate that is still in the plan. So, as a percentage of the overall revenue pie, yes, it will - there will be some incremental increases we run towards the backend of the year and into 2023 and beyond I think the key thing to remember here is I'll go back to a couple of my prepared comments it was all well.

we anticipate that is still in the plan. So, as a percentage of the overall

revenue pie, yes, it will - there will be some incremental increases we run towards the backend of the year and into 2023 and beyond I think the key thing to remember here is I'll go back to a couple of my prepared comments it was all well.

is if you just did simple math, we're running at an average revenue per stall based on year end of $14,000 of revenue per stall and that is we believe one of the highest in the in the industry. If you then think about the ability to actually turn on that charge for charge, that's just a layer cake that allows us to really put ourselves in a key position, a phenomenal position actually, and definitely as we can sell more and more of that on as we roll into late 2022 into 2023, I think this is a key winning proposition.

to really put ourselves in a key position, a phenomenal position actually, and definitely as we can sell more and more of that on as we roll into late 2022 into 2023, I think this is a key winning proposition.

put ourselves in a key position, a phenomenal position actually, and definitely as we can sell more and more of that on as we roll into late 2022 into 2023, I think this is a key winning proposition.

Pavel Molchanov: Thank you very much.

Francois Chadwick: Thank you, Pavel.

Operator: Thank you. Our next question is coming from Andreas Shepherd of Cantor Fitzgerald. Please go ahead.

Andreas Shepherd: Hi, good morning. Can you hear me okay?

Multiple speakers: Yes, we can. Thank you. Okay. Thank you. I just had a quick question. You know in the past you've guided that you expect the charging revenue to account for about 45% by 2025. I get the sense from this call that the emphasis on DCFC now is a lot stronger. So, I'm wondering is that guidance still unchanged or is there an opportunity to maybe even accelerate that? Thank you.

stronger. So, I'm wondering is that guidance still unchanged or is there an opportunity to maybe even accelerate that? Thank you.

Accelerate that thank you.

Francois Chadwick: Thank you Andreas. I think the thing I would say is, yes, as we're looking at changing - not changing, sort of adapting and moving towards the market demand that we're seeing, we great at EV adoption more and more cars coming onto the road. We're starting to notice this increase in the demand for DCFC. I do want to point out, though is we're always going to manage to the best result for the for the site partners. We're always going to make sure that but the mix of level, two (AC charging) and DC charging delivers what the site partner is looking for, as well as of course the driver. So we are adopting slightly to this DC fast market, we're seeing more and more demand for that and we will start to see that difference in the mix into deployment and delivery of electrons. Also of course, that's going to have a potential increase and impact on the ability to claim the carbon credits and as more and more States think about that, that's going to be a driving force for us and our revenue stack.

We're starting to notice this increase in the demand for DCFC. I do want to point out, though is we're always going to manage to the best result for the for the site partners. We're always going to make sure that but the

mix of level, two (AC charging) and DC charging delivers what the site partner is looking for, as well as of course the driver. So we are adopting slightly to this DC fast market, we're seeing more and more demand for that and we will start to see that difference in the mix into deployment and delivery of electrons. Also of course, that's going to have a potential increase and impact on the ability to claim the carbon credits and as more and more States think about that, that's going to be a driving force for us and our revenue stack.

delivers what the site partner is looking for, as well as of course the driver. So we are adopting slightly to this DC fast market, we're seeing more and more demand for that and we will start to see that difference in the mix into deployment and delivery of electrons. Also of course, that's going to have a potential increase and impact on the ability to claim the carbon credits and as more and more States think about that, that's going to be a driving force for us and our revenue stack.

increase and impact on the ability to claim the carbon credits and as more and more States think about that, that's going to be a driving force for us and our revenue stack.

As relates to 2025, we have not given any recent guidance.

That's that's something we will look to do as we progress through the years.

Andreas Shepherd: Got it, okay. Thank you, that's helpful. Maybe one quick follow up in regards to the $5 billion that would be allocated to EV charging as a result of the Infrastructure Act, the submission to the State plants, I think you alluded to this is at the end of August, and then the the plants, they will be confirmed by the end of September. So I'm, just wondering any sense of what you might receive from the Infrastructure Act?

the plants, they will be confirmed by the end of September. So I'm, just wondering any sense of what you might receive from the Infrastructure Act?

you might receive from the Infrastructure Act?

The infrastructure Act similarly.

Are you expecting to use some of that to fund the capex?

Francois Chadwick: Yeah. So, thank you Andrew for that. I think firstly just to point out, there is there is actually $7.5 billion and of which $5 billion goes - so there's two parts to that. There's the part of course, we mentioned, as well about the planning tool and that the ability for the federal and especially the state and the state Department of energy, the state departments of transportation, to be able to use that money in an efficient way, not just efficient, but they also want it to be used in an equitable way. So that means deploying capital in a location, where there may be a need to have the EV infrastructure.

so there's two parts to that. There's the part of course, we mentioned, as well about the planning tool and that the ability for the federal and especially the state and the state Department of energy, the state departments of transportation, to be able to use that money in an efficient way, not just efficient, but they also want it to be used in an equitable way. So that means deploying capital in a location, where there may be a need to have the EV infrastructure.

used in an equitable way. So that means deploying capital in a location, where there may be a need to have the EV infrastructure.

It may be now given that same sort of return in the same time periods that companies may be looking for. So we're definitely talking to the states and the federal about the use of our PredictEV planning tool as that relates to the deployment of that capital as it actually relates to the overall - the largest deployment of all about monies. There's still a lot to be decided and still a lot to be discussed. We're at the table. We're having those discussions - our the team is having those discussions.

as it actually relates to the overall - the largest deployment of all about monies. There's still a lot to be decided and still a lot to be discussed. We're at the table. We're having those discussions - our the team is having those discussions.

There is a oh.

There is a desire to get that money out as quickly as possible, but I think, Andreas, the timeline is correct. We're going to start to see the planning wrap up towards the end of 2022 and the actual deployment of money flowing late into 2022 and into 2023.

money flowing late into 2022 and into 2023.

I think, as I mentioned of course, using our tool we're looking to make sure that that money is deployed - that capital is deployed equitably into, once again, underserved communities.

that money is deployed - that capital is deployed equitably into, once again, underserved communities.

Andreas Shepherd: Great. Thank you very much. I'll pass it on.

Thank you very much, Andreas.

Operator: Thank you. Our next question is coming from Matt Summerville of D.A. Davidson. Please go ahead.

Matt Summerville: A couple of questions. In the past you've talked about utilization rates across the Volta network. I was wondering if you could comment on how that looked in the fourth quarter and maybe early trends thus far in 2022 now that we're midway through April?

Francois Chadwick: Thank you. Thank you very much for that, Matt.

This is a question - this question relates to utilization. This is something we map and we track, very, very closely of course, because it does actually help us decide where to put additional stalls, it helps us where - you know when we're talking to sire partners, we're able to give them that data, those metrics and that then opens up the conversation to the increased footprint need for stalls. What I can tell you with respect to our utilization in the fourth quarter was it was very similar to what we saw in the third quarter.

help us decide where to put additional stalls, it helps us where - you know when we're talking to sire partners, we're able to give them that data, those metrics and that then opens up the conversation to the increased footprint need for stalls. What I can tell you with respect to our utilization in the fourth quarter was it was

very similar to what we saw in the third quarter.

So very, very steady there.

As we move into subsequent quarters, what we expect to see is something very similar. There may be a slight change when we start to put the DCs into the ground, but the DC fast stations stalls in the ground, that's something that we're going to monitor very carefully but as it sits right now our utilization across the fourth quarter was very similar to our third quarter.

what we expect to see is something very similar. There may be a slight change when we start to put the DCs into the ground, but the DC fast stations stalls in the ground, that's something that we're going to monitor very carefully but as it sits right now our utilization across the fourth quarter was very similar to our third quarter.

something very similar. There may be a slight change when we start to put the DCs into the ground, but the DC fast stations stalls in the ground, that's something that we're going to monitor very carefully but as it sits right now our utilization across the fourth quarter was very similar to our third quarter.

Matt Summerville: Got it. As a follow up, you know, the prior management team had talked about permitting being a material bottleneck around new installations. First I'm wondering if that still the case for Volta?

being a material bottleneck around

new installations. First I'm wondering if that still the case for Volta?

For both the second.

Second, to the extent you're incurring supply chain, logistical related challenges, if you could comment on that to the extent - I guess I'm wondering what sort of level of supply chain bottlenecks have you sort of incorporated into your 1,700 to 2,000 outlook?

supply chain, logistical related challenges, if you could comment on that to the extent - I guess I'm wondering what sort of level of supply chain bottlenecks have you sort of incorporated into your 1,700 to 2,000 outlook?

I guess I'm wondering what sort of level of supply chain bottlenecks have you sort of incorporated into your 1,700 to 2,000 outlook?

have you sort of incorporated into your 1,700 to 2,000 outlook?

Outlook.

At the end of day, Francois, I'm trying to get a sense for how risky or not this outlook is.

Francois Chadwick: Yep Yep. Thanks.

Thanks for that. So Matt, I think it's really just sort of two parts to that question. One was around permits the other one around supply chain.

So let me take the permit question first.

I think what we're seeing is it's similar to what we were seen in the past in certain places in certain locations, where the sort of the decarbonization and electrification has been advancing over time, those - getting those permits is just an easier in a quicker process. As we go to locations, where installing new stalls or a state or a city or municipality doesn't have any stalls to date, that takes a little bit longer I would say.

has been advancing over time, those - getting those permits is just an easier in a quicker process. As we go to locations, where installing new stalls or a state or a city or municipality doesn't have any stalls to date, that takes a little bit longer I would say.

No difference than what we've seen in the past with very sanguine. We're facing the same issues that the whole industry is facing.

We have continued to build out our - we continue to build out our permitting team so that we aren't as efficient and effective as possible to make sure that permitting doesn't slow us down.

With respect to the supply chain question, firstly, I have mentioned this before and I'll mention it again, we have built out internally within Volta a world class supply chain management team.

firstly, I have mentioned this before and I'll mention it again, we have built out internally within Volta a world class supply chain management team.

They are - we've them on the books here with the company for a number of months now so they fully settled in. We have usually working through our supply chain management team working through our supply partners, we've got incredibly good relationships.

We have already planned into what we were expecting to have to do into 2022 and actually beyond as well.

So we've gone through and looked at every potential component that goes into our stalls and they're all a couple of items in the stalls that do take a long time - I believe there's a long lead time to get those that get those specific items.

We have already planned into that. In a couple of instances in very small minor parts, we've actually pre-bought those parts to make sure that we have access to them and that those don't slow down our supply chain and therefore don't impact the guidance that we've given. So, we feel comfortable that the guidance we've given, we've already pre-planned into our current understanding of why things done, our current understanding of the supply chain makes me feel comfortable we will hit our guidance on the stalls.

slow down our supply chain and therefore don't impact the guidance that we've given. So, we feel comfortable that the guidance we've given, we've already pre-planned into our current understanding of why things done, our current understanding of the supply chain makes me feel comfortable we will hit our guidance on the stalls.

current understanding of why things done, our current understanding of the supply chain makes me feel comfortable we will hit our guidance on the stalls.

makes me feel comfortable we will hit our guidance on the stalls.

Matt Summerville: Right right.

Operator: Thank you. Our next question is coming from Craig Irwin of Roth Capital. Please go ahead.

Craig Irwin: Thank you for taking my questions and good morning. In your prepared remarks, Francois, you talked a little bit about capital access - future need for financing.

Can you maybe give us a little bit more color around that and maybe talk specifically to the company's historic use of sale leasebacks counting for - or sale leaseback transactions to fund its station growth - its network growth.

Now that you're a public company I would assume the economics there probably swing a little bit in your direction. Can you maybe talk about approximate costs and how this would potentially figure out for you?

Yeah.

Yes.

Francois Chadwick: Yeah. Thank you, Craig. So I'm just repeating an item from my prepared remarks earlier. Yes, we are definitely in deep discussions with providers of non-diluted capital, non-diluted financing.

an item from my prepared remarks earlier. Yes, we are definitely in deep discussions with providers of non-diluted capital, non-diluted financing.

Those are well under way and we expect to be able to say more in the next next coming quarter or two.

Water or two.

As it relates to overall financing on the sale and leaseback, yes, we - those are the some of the deals that we've done in the past.

We're actually looking more and more of the deals where we are the owner operator of those stalls that is the way that we're sort of facing forward into the marketplace right now.

However, as we do look at having the sort of the larger portfolios of the customer base, it is actually becoming the dialogue around the sort of the financing of our portfolio is something that is happening more and more. There are some things that a lot of potential capital providers are actually interested in discussing with us.

providers are actually interested in discussing with us.

Craig Irwin: Okay understood understood.

My second question you know in the context of your Walgreens announcement, right - very nice announcement, big, chunky - provides multiyear visibility on network growth.

Your guidance dramatically below the guidance your bankers put together for the snack IPO more than 2000 units for the year end target for 2022 below right. It's already in the stock with us trading where we are, but it kind of suggests that maybe we were expecting a few contracts like Walgreens? And you're pointing for permits.

for the year end target for 2022 below right. It's already in the stock with us trading where we are, but it kind of suggests that maybe we were expecting a few contracts like Walgreens? And you're pointing for permits.

but it kind of suggests that maybe we were expecting a few contracts like Walgreens? And you're pointing for permits.

And you're pointing for permits.

So can you maybe give us a little bit more color or make some commentary around similar potential orders out there, similar contracts?

us a little bit more color or make some commentary around similar potential orders out there, similar contracts?

You know, are there other things, other than permits, that are causing you to have such a significant shortfall in station growth? What else should we understand?

Yeah.

Francois Chadwick: Yeah. Thank you Craig.

I think - it's a good question. It's one I address every day.

Let me break your question up a little bit because I think there's two or three parts to that question that should be addressed.

Firstly.

Firstly, yes, Walgreens was and is a very big win for the company. It's a sizeable contract that is one that we feel very, very proud about. As it relates to other potential customer contracts, obviously, I can't disclose anything in particular, but I can tell you that we have a number of serious ongoing discussions and as we go through the year, we will be giving you more details on those other wins that will be coming through the pipeline as well. Those are wins that will obviously start to have a install cadence towards the latter half of 2022 and into 2023.

But as you know one the one.

one that we feel very, very proud about. As it relates to other potential customer contracts, obviously, I can't disclose anything in particular, but I can tell you that we have a number of serious ongoing discussions and as we go through the year, we will be giving you more details on those other wins that will be coming through the pipeline as well. Those are wins that will obviously start to have a install cadence towards the latter half of 2022 and into 2023.

obviously, I can't disclose anything in particular, but I can tell you that we have a number of serious ongoing discussions and as we go through the year, we will be giving you more details on those other wins that will be coming through the pipeline as well. Those are wins that will obviously start to have a install cadence towards the latter half of 2022 and into 2023.

a number of serious ongoing discussions and as we go through the year, we will be giving you more details on those other wins that will be coming through the pipeline as well. Those are wins that will obviously start to have a install cadence towards the latter half of 2022 and into 2023.

You mentioned permits.

I don't want anybody to feel as though permits are the things that slow things down. As I mentioned before in states where - in places and locations where there is already a permitting process, we're moving through those things very quickly. Some of the places where we don't have a sort of a fully laid out process, that's why it's taken some additional time. I would actually point out as well, that in Europe, which is five years ahead of us in the sort of EV adoption game, getting the permits out there is a much quicker much swifter process, we found to date.

that's why it's taken some additional time. I would actually point out as well, that in Europe, which is five years ahead of us in the sort of EV adoption game, getting the permits out there is a much quicker much swifter process, we found to date.

As it relates to the actual stall installs, I think you know I want, I just want to point to once again, our guidance and I feel very robust, I feel very comfortable, I feel very confident having been at the company now for a year, having built out a strong financial team, built out many other teams in the supply chain management area and in our sales teams both for the stalls sales team and the media sales team that the focus is on the guidance that I've just given.

built out many other teams in the supply chain management area and in our sales teams both for the stalls sales team and the media sales team that the focus is on the guidance that I've just given.

Craig Irwin: But just to restate my question, can you give us some more complete understanding of why the install rates are expected to be so much lower than the guidance that was given at the time of your stock merger? You know I think a lot of investors feel that understanding is essential to move beyond the volatility in your stock where there has been quite dramatic losses for equity investors.

the guidance that was given at the time of your stock merger? You know I think a lot of investors feel that understanding is essential to move beyond the volatility in your stock where there has been quite dramatic losses for equity investors.

Francois Chadwick: Yeah, Craig, I understand, I understand the question. I think what I'm, just going to come back and repeat so the guidance that I've given for the year.

Craig Irwin: Okay. Thank you. Thanks again for taking my questions.

Francois Chadwick: Thank you.

Operator: Thank you. Our next question is coming from Vikram Bagri of Needham and Company. Please go ahead.

Vikram Bagri: Good morning, everyone. The first question I have is what kind of sign posts or indicators are you looking for to initiate a what you called charge for charge? It sounds like you're probably waiting for installation of more DCFCs on your network. And on the same note

how do you plan to proceed with this charge for charge strategy? Would you run pilots in the U.S. first? Reduce the two hour free limit initially? Charge to the customer at below market rates

or would you only charge for DCFCs initially? I was just trying to understand what signpost you're looking for to initiate this charge for charge and what signposts, we should be looking for that this is happening in back half of 2022.

Francois Chadwick: Thank you, Vikram. That is actually - that is actually a great question. I really enjoy answering this question. It's something we deal with day in day out. Obviously coming from my background, the various ways of initiating a pricing conversation has multiple angles to it.

the various ways of initiating a pricing conversation has multiple angles to it.

multiple angles to it.

Absolutely, Vikram, you almost addressed the your first part of your question with your second question.

almost addressed the your first part of your question with your second question.

We have started our beta testing on some of our DC fast stations that are installed and are in the ground. Obviously we were looking for as we do the beta testing, we look to get feedback to understand what the customer, the driver is looking for.

testing on some of our DC fast stations that are installed and are in the ground. Obviously we were looking for as we do the beta testing, we look to get feedback to understand what the customer, the driver is looking for.

How easy it is, what's the user interface look like? What's the - Is there any friction as you look to try and turn on the charge for charging? All of these are data points that we were taking back and looking at how do we make sure that once we turn on the charge for charge, and you are correct Vikram, we would start with all of the DC fast stations. but once we turn that on what is that user experience for the driver and how do we tie that to the app? Turning on the authentication, the ability to be able to tie your credit card into the app and everything else. This is everything that we're working through right now.

and you are correct Vikram, we would start with all of the DC fast stations. but once we turn that on what is that user experience for the driver and how do we tie that to the app? Turning on the authentication, the ability to be able to tie your credit card into the app and everything else. This is everything that we're working through right now.

and everything else. This is everything that we're working through right now.

Vikram Bagri: Great.

As a follow up, the network development revenues increased nicely in fourth quarter. I was wondering was it driven by product sales? Just trying to understand how sticky these revenues are. On the same note gross margins were down a bit sequentially from third quarter. Is that also a function of change in the revenue mix which it seems like it was more weighted to product sales?

the network development revenues increased nicely in fourth quarter. I was wondering was it driven by product sales? Just trying to understand how sticky these revenues are. On the same note gross margins were down a bit sequentially from third quarter. Is that also a function of change in the revenue mix?

which t seems like it was more weighted to product sales?

Yeah.

Francois Chadwick: Yeah. Thank you, Vikram again. That as you - you've almost answered again the same questions, yes.

The network development revenue that has a certain level of seasonality to it, well not seasonality, I would say more along the lines of its ability to put the stalls in the ground and there are certain things that you just happens sometimes quicker, sometimes it just happens a little bit slower.

So yes, there is a slight difference in the install cadence that does affect a little bit that network development revenue as it sort of moves from quarter to quarter and yes, you are correct that does have an impact on the gross margin.

Yeah.

Vikram Bagri: Thank you very much. I appreciate it.

Francois Chadwick: Thank you Vikram.

Yeah.

Operator: Thank you our last question today is coming from Craig Shere of Tuohy. Please go ahead.

Craig Shere: Good morning.

I noticed the fourth quarter, if my math is correct, what was

maybe a $29 million operating cash burn before working capital.

I'm sure there's still a lot of one time cash costs, restatements, the ongoing public debut and I realize this question also relates a little to your non-dilutive financing that you alluded to. But how do you feel about the burn trajectory - the cash burn trajectory versus your liquidity?

and I realize this question also relates a little to your non-dilutive financing that you alluded to. But how do you feel about the burn trajectory - the cash burn trajectory versus your liquidity?

Francois Chadwick: Thanks, Craig.

This is something there's two parts to that. The cash burn: when I look at the cash burn I look at the operating expenses in the burn through the opex and also then through the capex side of things. As I mentioned with respect to the capital side of things, We have put in place this capital Committee that does look at every project and it does look at that spend as it relates to the timeline for the return on that spend. So feeling very good about that. As it relates to our operating expenses, what I do is I look at this very, very carefully we have mapped out what those operating expenses are anticipated to be through 2022 and beyond and I've installed a significant amount discipline - financial discipline in matching the actual spend to the budgets. So, I feel very, very good that we have in place those controls and those procedures to make sure that there's the burn - the liquidity burn is as well controlled.

operating expenses in the burn through the opex and also then through the capex side of things. As I mentioned with respect to the capital side of things, We have put in place this capital Committee that does look at every project and it does look at that spend as it relates to the timeline for the return on that spend. So feeling very good about that. As it relates to our operating expenses, what I do is I look at this very, very carefully we have mapped out what those operating expenses are anticipated to be through 2022 and beyond and I've installed a significant amount discipline - financial discipline in matching the actual spend to the budgets. So, I feel very, very good that we have in place those controls and those procedures to make sure that there's the burn - the liquidity burn is as well controlled.

as it relates to the timeline for the return on that spend. So feeling very good about that. As it relates to our operating expenses, what I do is I look at this very, very carefully we have mapped out what those operating expenses are anticipated to be through 2022 and beyond and I've installed a significant amount discipline - financial discipline in matching the actual spend to the budgets. So, I feel very, very good that we have in place those controls and those procedures to make sure that there's the burn - the liquidity burn is as well controlled.

and I've installed a significant amount discipline - financial discipline in matching the actual spend to the budgets. So, I feel very, very good that we have in place those controls and those procedures to make sure that there's the burn - the liquidity burn is as well controlled.

So, I feel very, very good that we have in place those controls and those procedures to make sure that there's the burn - the liquidity burn is as well controlled.

Also as I'll go back and mention Craig, as it relates to the actual capex on the stalls, we are in these discussions are about the non-diluted capital and the cost of repeating myself again, Craig, with respect to the - once we get these significant portfolio deals in there's a lot of potential for and there's a lot of demand for portfolio financing that we're looking at.

and the cost of repeating myself again, Craig, with respect to the - once we get these significant portfolio deals in there's a lot of potential for and there's a lot of demand for portfolio financing that we're looking at.

Craig Shere: Great.

And I wanted to go back to you know the prior Craig's questioning around the station growth shortfall.

the prior Craig's questioning around the station growth shortfall.

The thing is back in June at your Analyst Day, I don't think the mix of higher cost higher value DC fast chargers was as large in your mind back then as maybe it is today. So could you just discuss about the changes in anticipated mix and what that may relate to in terms of installs and expectations?

and what that may relate to in terms of installs and expectations?

In other words, one would assume with more DC fast chargers in two or three years that with fewer installs you can still come closer to your original outlook as far as revenues and cash flow.

as far as revenues and cash flow.

Francois Chadwick: Yeah.

Thank you again, Craig.

Yes, I think you are correct. When we were looking back in June of last year the market demand has changed. The market need for more DC fast has changed. That is what we're being asked to do and we're seeing it coming through from our current site partners ,that's coming through from our new site partners.

the market demand has changed. The market need for more DC fast has changed. That is what we're being asked to do and we're seeing it coming through from our current site partners ,that's coming through from our new site partners.

That is what we're being asked to do and we're seeing it coming through from our current site partners ,that's coming through from our new site partners.

What we're seeing as well is, I want to go back and I mentioned it earlier in my prepared remarks about the London expand strategy, as it relates to the DC, what we're actually seeing is both in the London expand and in new sites, they are looking to have DC fast and also level two depending on the location. As it relates to our current sites, while they may have the level two they're coming back and saying "hey can you put some DC fast in, because we want to offer the opportunity to the drivers to be able to make a choice about how long they spend charging that car."

and also level two depending on the location. As it relates to our current sites, while they may have the level two they're coming back and saying "hey can you put some DC fast in, because we want to offer the opportunity to the drivers to be able to make a choice about how long they spend charging that car."

And honestly you know.

Honestly, there's just more cause that are needing these chargers. So I think you are correct, as well with the increase in DC fast it will be able to - it may lead to a situation where the stalls are - I don't want to say reduced - we all going to hit our store installation guidance, but you are right. It does add more revenue opportunities into any particular stall that will make sure - and this is partly why I feel comfortable with our revenue guidance for 2022 - that we will hit that.

I don't want to say reduced - we all going to hit our store installation guidance, but you are right. It does add more revenue opportunities into any particular stall that will make sure - and this is partly why I feel comfortable with our revenue guidance for 2022 - that we will hit that.

but you are right. It does add more revenue opportunities into any particular stall that will make sure - and this is partly why I feel comfortable with our revenue guidance for 2022 - that we will hit that.

So the mix is changing due to the demand and once again I feel comfortable that even though the mix is changing we will meet the guidance that I'm giving.

Craig Shere: And very last follow ups.

If my memory is correct, your DC charger costs are about two times the level two. Is Europe going to be more DC focused?

Francois Chadwick: So I'll split out the questions that Craig. Yes, the DC stalls are approximately two times the level two stalls. That's due to the

the bill of materials that's actually in the stalls plus the installation costs and getting the getting the electricity to the stall.

As it relates to Europe, we're seeing a mix. We're seeing a demand as well. So the

level two (the AC chargers) as well as the DC chargers. As we look at that mix in Europe,

we're going to continue to assess and actually respond to what that demand is. We can offer both of them and we will make sure that we meet the demand that the market is looking for.

Craig Shere: Great. Thank you.

Operator: Thank you. At this time I'd like to turn the floor back over to management for closing comments.

Francois Chadwick: Okay, well, thank you everybody for your time today and I do want to conclude by thanking all of our employees for their contributions to Volta's success, our shareholders for their support and our customers for that commitment.

We look forward to providing future updates on our progress as we drive forward through 2022 and beyond.

Thank you all.

Operator: Ladies and gentlemen, thank you for your participation and interest in Volta. You may disconnect your lines at this time or log off the webcast, and enjoy the rest of your day.

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