Q1 2022 Blink Charging Co Earnings Call

May 9, 2022

Good afternoon, ladies and gentlemen, and welcome to today's link charging company first quarter 2022 earnings call. At this time, all participants have been placed on a listen only mode, but we will open the floor for your questions. After the presentation.

Good afternoon, ladies and gentlemen, and welcome to today's Blink Charging Company first quarter 2022 earnings call. At this time, all participants have been placed on a listen only mode, but we will open the floor for your questions after the presentation. It is now my pleasure to turn the floor over to your host, Jennifer Bilodeau, IMS Investor Relations. Jennifer, the floor is yours.

My pleasure to turn the call over to your host Jennifer Bilodeau.

Investor Relations Jennifer the floor is yours.

Thank you. Good afternoon, everyone, and welcome to the link card for the quarter 2020 investor call. On the call today are Michael Farkas, Chairman and Chief Executive Officer, Brendan Jones, President, and Michael Rama, Chief Financial Officer.

Thank you.

Good afternoon, everyone and welcome to <unk>.

Investor call on the call today are Michael <unk>, Chairman and Chief Executive Officer, Brendan Jones, President and Michael Rama Chief Financial Officer. Please note that the slide presentation accompanying today's earnings call.

Please note that there is a live presentation accompanying today's earnings call where viewers can follow along. The slides can be accessed on the investor relations section of the Blink charging website.

Erez can follow along the slides can be accessed on the Investor Relations section of the <unk> charging website I'll now take a moment to read the Safe Harbor statement. This conference call contains forward looking statements. That's fine for transaction in 2007 eight of the Securities Act of 1933 as amended and section 21 E of the Securities Exchange Act of 1934 as I mentioned these forward looking statements in terms of.

This conference call contains forward-looking statements as defined within Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934 as amended.

These forward-looking statements in terms such as anticipating, 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.

We 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 of Blink and members of its management as well as the assumptions on which such statements are based prospective investors are cautioned that any such.

Those statements include statements regarding the intent, belief, or current expectations of 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 BLINK's periodic reports filed with the SEC, and that actual results may differ materially from those contemplated by such forward-looking statements.

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 linked undertakes no obligation to update or revise forward looking statements to reflect change conditions.

except as required by federal securities law, Blink undertakes no obligation to update or revise forward-looking statements to reflect changed conditions. With that out of the way, I'll turn the call over to Michael Farkas, chair.

That is the way I will turn the call over to Michael <unk> Chair.

Chairman of blank charging go ahead Michael.

Good afternoon, everyone. Thank you for joining us. We delivered a strong start to 2022, highlighted by record revenue of $9.8 million.

Good afternoon, everyone. Thank you for joining us we delivered a strong start to 2022, either by record revenue of $9 8 million.

An increase of 339% over the first quarter of 2021 driven by exponential growth in both product sales and service revenues.

An increase of 339% over the first quarter of 2021, driven by exponential growth in both product sales and service revenues.

Our record first quarter results are reflective of the solid platform and reputation that we've built in the EV charging industry as partners and customers recognize Blink as a leading provider of charging technology and services.

Our record first quarter results are reflective of the solid platform a reputation that we've built on the EV charging industry as partners and customers recognize green is a leading provider of charging technology and services.

In the quarter, we contracted shoulder deployed 3,174 commercial and residential charters, an increase of 99% compared to the same quarter last year.

In the quarter, we contracted shoulder deployed 3174, commercial and residential Chargers and increase of 99% compared to the same quarter last year.

We also continue to see success winning new grant and rebate awards from various government programs, receiving $3 million in awards in the first quarter of 2022 and $30 million since January of 2021.

We also continue to see success, winning new grant and Rebid awards from various government programs, receiving $3 million in awards in the first quarter of 2022.

And $30 million since January of 2021.

Federal and state grant and rebate programs have been an integral part of our growth, providing us with numerous opportunities outside of the traditional sale of our products to expand our charging footprint, which Brendan will speak more in depth about later on in the call.

Federal and state Grant and rebate programs have been an integral part of our growth providing us with numerous opportunities outside of the traditional sale of our products to expand our charging footprint, which Brendan will speak more in depth about later on in the call.

The legislative environment surrounding the EV industry is incredibly favorable and we believe we are positioned to win many more grants and rebates as federal, state, and local governments allocate the $7.5 billion from the Biden administration for state-of-the-art EV charging infrastructure.

The legislative environment surrounding the EV industry is incredibly favorable and we believe we are positioned to win many more grants and rebates as federal state and local governments allocate the $7 $5 billion from the bride and administration for <unk>.

State of the art.

The charging infrastructure.

Following the close of the first quarter, we announced our acquisition of Electric Blue, or EV Charging, a leading provider of integrated EV charging and sustainable energy solutions in the United Kingdom.

Following the close of the first quarter, we announced our acquisition of electric blue or EV charging a leading provider of integrated EV charging and sustainable energy solutions in the United Kingdom.

This acquisition both expands our European presence into the UK and adds over 1,150 chargers installed or committed to delivery. It's adding that to the Blynk charging footprint. A key part of Blynk's strategy is to make acquisitions and to establish multi-year exclusive partnerships that increase charge deployments and our market reach.

This acquisition, both expands our European presence into the U K and edge over 1150 Chargers installed.

We're committed to delivery.

Adding that to the bring charging footprint.

Key part of <unk> strategy is to make acquisitions and to establish multiyear exclusive partnerships that increase charges deployments and our market reach with.

With the acquisition of eB Charging, we are now present in over 19 countries, including the U.S., Belgium, U.K., Greece, and nine countries in Latin America, as well as others.

With the acquisition of EV charging we are now present in over 19 countries, including the U S. Belgium, UK, Greece in nine countries in Latin America, as well as others.

Turning to slide five.

Turning to slide five, as you can see, the EV industry is still in its early stages and poised for massive exponential growth over the next decade and beyond.

As you can see the EV industry is still in its early stages and poised for massive exponential growth over the next decade and beyond.

As such, I'd like to take a moment to reiterate just how much we believe in the opportunity Blink sees for future growth as a leading provider of EV charging solutions.

As such I'd like to take a moment to reiterate just how much we believe the opportunity.

<unk> for future growth as a leading provider of EV charging solutions.

According to the International Energy Agency, global EV sales are projected to grow at a CAGR of 24 percent from 2021 to 2030, with the number of vehicles sold increasing from 3 million in 2020 to about 25 million in 2030. This projected increase in electric vehicles creates an immediate demand for robust EV charging infrastructure.

According to the International Energy Agency Global EV sales are projected to grow as a <unk> of 24% for 2021% to 2030 with the number of vehicles sold increasing from $3 million in 2022 about $25 million in 2030.

This projected increase in electric vehicles creates an immediate demand for robust EV charging infrastructure.

with the need for over 120 million EV chargers globally by 2030.

With the need for over 120 million EV Chargers globally by 2030.

as compared to the only 2.8 million chargers available globally in 2021. The growth is massive.

As compared to the only two 8 million Chargers available globally in 2021.

The growth is massive.

As a leading provider of EV charging technology, we believe this growth presents a tremendous opportunity for Blink to significantly expand our charging footprint over the next decade and beyond, and exponentially increase our share of the market.

As a leading provider of EV charging technology. We believe this growth presents a tremendous opportunity for <unk> to significantly expand our charging footprint over the next decade and beyond and exponentially increase our share of the market.

Now looking at slide six, we highlight Blink's unique value proposition that differentiates us from our competitors as a leading provider of EV charging technology.

Now looking at slide six.

We highlight <unk> unique value proposition that differentiates us from our competitors as a leading provider of EV charging technology.

Our innovative product portfolio offers our customers a variety of charging options to fit almost any location.

Our innovative product portfolio offers our customers either variety of charging options to fit almost any location or environment.

As I mentioned last quarter, we unveiled seven new next generation charging products at CES in January , including our Vision IQ200 charger targeting the one million plus retail locations across the United States.

As I mentioned last quarter, we unveiled several new next generation charging products at CES in January including our vision IQ200, charger targeting the 1 million plus retail locations across the United States.

The H2 200 residential charger that allows us to target the 10 million plus home charging market.

The HQ200 residential charger that allows us to target that $10 million plus home charging market.

and the Blink management software and Blink mobile app, connecting our charges across all fleet operators.

And the blinking management software and Blink mobile app connecting our charges across all three operators. We are constantly looking for new ways to improve our product offerings in order to remain at the forefront of the industry and to resist obsolescence and we design our products with the future innovation in mind.

We are constantly looking for new ways to improve our product offerings in order to remain at the forefront of the industry and to resist obsolescence.

and we design our products with the future innovation in mind.

Complementing our industry-leading product portfolio are our multiple business model options centered on providing flexible and fully integrated charging solutions to our customers.

Complementing our industry, leading product portfolio, our multiple business model options centered around providing flexible and fully integrated charging solutions to our customers.

While we have several different deployment options to fit our customers' needs, our main focus is on our owner and operator model. As an owner-operator, we're intimately involved in every step of the installation process and can facilitate upgrades and other maintenance as needed, to provide the best technology for the location, while also benefiting from anticipated increased charge utilization as more EVs are on the road.

While we have several different deployment options to fit our customers' needs. Our main focus is on our owner and operator model.

As an owner operator.

Intimately involved in every step of the installation process.

And can facilitate upgrades and other maintenance as needed to provide the best technology for the location. While also benefiting from anticipated increased charge utilization as more evs around the road.

We also have the discretion to add chargers to a particular location when we decide that this is necessary and obviously when demand requires.

We also have the discretion to add Chargers to a particular location when we decide that this is necessary and obviously when demand requires.

Additionally, we provide long-term exclusive contracts with automatic extensions, which allows Blink to establish a long-term presence and increase brand recognition in the locations where our chargers are Blink-owned and operated. With our unique model, Blink remains the only fully vertically integrated EV charging infrastructure company in the USA today. Another part of our strategy is the expansion of our domestic and international charging footprint.

Additionally, we provided long term exclusive contracts with automatic stem extensions, which allows <unk> to establish a long term presence and increase brand recognition in the locations, where our Chargers are blink owned and operated with our unique model Blink remains the only fully vertically integrated EV charging infrastructure.

In the USA today.

Another part of our strategy is the expansion of our domestic and international charging footprint.

In the United States, we've made progress by continuing to identify the best locations to deploy our chargers in areas that will maximum utilization rates and drive increased revenue.

In the United States, we made progress by continuing to identify the best locations to deploy our chargers in areas that will maximum utilization rates and drive increased revenue.

Internationally, we successfully expanded our European charging footprint to our acquisition of Blue Corner in May of 2021, which we've grown significantly since we've taken over the management of that business.

Internationally, we successfully expanded our European charging footprint through our acquisition of Blue corner in May of 2021.

Which we've grown since significantly since we've taken over the management of that business.

And recently, we acquired EV Charging to establish a presence in the UK. To date, we are now present in over 19 countries, including the US, France, Netherlands, Belgium, UK, Greece, Latin America, South America, as well as others. And we continue to expand our presence and visibility. We believe that we are well-positioned to capitalize on the numerous opportunities emerging from the increasing demand for reliable EV charging infrastructure, both organically and through M&A activities. For more UN videos visit www.un.org Transcription by ESO, translation by —

And recently, we acquired EV charging to establish a presence in the UK.

To date, we are now presence over 19 countries, including the U S, France, Netherlands, Belgium, UK, Greece, Latin America, South America, as well as others and we continue to expand our presence and visibility.

We believe that we are well positioned to capitalize on the numerous opportunities emerging from the increasing demand for reliable EV charging infrastructure, both organically and through M&A activity.

As you can see, we've made tremendous progress in the 1st quarter of 2022, and I'd like to extend my gratitude to all of our employees, members, and our partners with we deploy our charging infrastructure and we commend them for their hard work and dedication to growing into a leader in the charging industry.

As you can see we've made tremendous progress in the first quarter of 2022 and.

And I'd like to extend my gratitude to all of our employees members and our partners, which we deploy our charging infrastructure and we commend them for their hard work and dedication to grow into a leader in the EV charging industry.

We are energized by the many opportunities we're seeing and look forward to driving strong results and momentum as we progress through 2022. Now I'll turn the call over to Brendan Jones, President of Blink, to discuss some of our recent developments.

We are energized by the many opportunities, we're seeing and look forward to driving strong results and momentum as we progress through 2022 now.

Now I will turn the call over to Brendan Jones, President to discuss some of our recent developments.

Thanks, Michael, and good afternoon, everyone. It is a pleasure to speak with everyone today. As you can see from the logos on slide 8, we are fostering partnerships and winning contracts to bring innovative EV charging solutions to a wide variety of verticals.

Thanks, Michael and good afternoon, everyone. It is a pleasure to speak with everyone today.

You can see from the logos on slide eight we are fostering partnerships and winning contracts to bring innovative EV charging solutions to a wide variety of verticals.

We've won numerous multi-year contracts with a variety of well-respected commercial enterprises, healthcare facilities, plant communities, and municipalities.

We've won numerous multiyear contracts with a variety of well respected commercial enterprises healthcare facilities plant communities and municipalities.

And we are seeing tremendous opportunities to continue this trend in 2022, including two new partnerships.

And we are seeing tremendous opportunities continue this trend in 2022, including two new partnerships.

with the state of Virginia, excuse me, with the state of Massachusetts and Virginia.

With the state of Virginia.

Even with the state of Massachusetts, and Virginia.

These collaborations are an integral part of our business as entities in both the public and private sectors push for the widespread adoption of electric vehicles and the establishment of a robust EV charging infrastructure.

These collaborate collaborations are an integral part of our business as entities in both the public and private sectors push for the wide spread.

Spread adoption of electric vehicles, and the establishment of a robust EV charging infrastructure.

We are pleased to be providing our state-of-the-art charging solutions to our valued partners, and we look forward to teaming up with additional businesses and municipalities that want to offer innovative EV charging technology to their customers and residents.

We are pleased to be providing our state of the art charging solutions to our valued partners and we look forward to teaming up with additional businesses and municipalities that want to offer innovative EV charging technology to their customers and residents.

Turning to slide 9, within the last 12 months,

Turning to slide nine within the last 12 months.

Blink has contracted, sold, deployed, or acquired over 19,720 chargers both domestically and internationally, bringing the total charge account for the company to over 36,000 since Blink's inception.

Blink has contracted sold deployed or acquired over 19720 charges, both domestically and internationally, bringing the total charge account for the company to over 36000 since blinks inception.

We have a healthy mix of deployments in the United States and abroad, with 57% of total blink chargers deployed in the United States and 43% deployed internationally.

We have a healthy mix of deployments in the United States and abroad with 57% of total blend Chargers deployed in the United States and 43% deployed internationally.

In addition, as of the first quarter of 2022, Blink has provided service to over 270,000 registered members and unique users throughout the world.

In addition, as of the first quarter of 2022 blank has provided service to over 270000 registered members in unique users throughout the world consumer demand for electric vehicles is steadily increasing meaning the need for a robust and reliable.

Consumer demand for electric vehicles is steadily increasing, meaning the need for a robust and reliable EV charging infrastructure has never been more necessary. Our global network of chargers has steadily expanded quarter over quarter, and we expect this increase to continue as the demand for EVs increases.

<unk> EV charging infrastructure has never been more necessary, our global network of Chargers.

Italy expanded quarter over quarter, and we expect this increase to continue as the demand for Evs increases.

Slide 10 gives an overview of our charging stations deployment in key geographic locations throughout the United States and Europe .

We strategically identify our locations based on several criteria, including EV concentration and driving habits, population and density figures, historic and forecasted traffic patterns, and future market growth potential.

We strategically identify our locations based on several criteria, including EBIT concentration and driving habits population and density figures historic and forecasted traffic patterns.

<unk> future market growth potential.

In the first quarter, we deployed charging stations across six countries and 40 U.S. states and territories, working with both local and state government agencies and numerous companies.

In the first quarter, we deployed charging stations across six countries and 40 U S States and territories working with both local and state government agencies and numerous companies.

Internationally.

We are seeing experience momentum throughout Europe , which has provided us the foundation to expand our charging footprint in those markets.

We are seeing experienced momentum throughout Europe , which has provided us the foundation to expand our charging footprint in those markets.

Turning now to slide 11.

We believe Europe presents a tremendous growth opportunity and we've aggressively increased our presence there. We believe our latest acquisition, EV Charging, is a valuable addition to our company and a complement to Blue Corner, which also recently received a €450,000 grant from Flanders Innovation and Entrepreneurship for the development of an energy management service.

We believe Europe presents a.

Tremendous growth opportunity and we've aggressively increased our presence there we believe our latest acquisition you'd be charging is a valuable addition to our company and a complement to blue corner, which also recently received a 450000 Euro grant from Flanders innovation.

And entrepreneurship for the development of an energy management service.

So we are seeing solid progress in both our expansion efforts.

and the development of our products in international markets. And we remain focused on strategic M&A opportunities that will contribute to our growth.

And the development of our products in international markets, and we remain focused on strategic M&A opportunities that will contribute to our growth move.

Moving on to slide 12, as Michael discussed, we are launching several exciting new products in 2022, including Blink's advanced fleet management software and accompanying mobile app designed to be used within the advanced MQ-200 hardware. Together, the hardware and software will provide a 360-degree fleet ecosystem.

Moving on to slide 12 as.

As Michael discussed we are launching several exciting new products in 2022.

Including Blinks advanced fleet management software and accompanying mobile app designed to be used within the advanced and Q2 hundred hardware.

Together, the hardware and software will provide a 360 degree fleet ecosystem.

In addition, we are preparing the launch of an entirely redesigned blink mobile app, making EV charging easier for drivers.

In addition, we are preparing the launch of an entirely redesigned Blink mobile app making EV charging easier for drivers.

Also planned for launch in the coming months is the Innovative Vision IQ200 charger.

Also planned for launch in the coming months as the innovative vision IQ200 charger.

which we believe our retail customers are going to appreciate. And also, we have the compact, powerful 50-kilowatt wall DC fast charger, which can fit in just about any location.

Which we believe our retail customers are going to appreciate and also we have the compact powerful 50 kilowatt, while DC fast charger, which can fit in just about any location.

Lastly, the HQ200 is a residential charger designed to satisfy the diverse needs of homeowners.

Overall, we have a comprehensive portfolio of charging solutions to fit the needs of any customer, public or private, with the capability to penetrate numerous different markets.

Overall, we have a comprehensive portfolio of charging solutions to fit the needs of any customer public or private with the capability to penetrate numerous different markets.

Slide 13 provides an overview of the historic $1.2 trillion federal infrastructure bill that includes an estimated $7.5 billion to be used for building the nationwide infrastructure to support the anticipated growth in the adoption of electric vehicles.

Slide 13 provides an overview of the historic 1.2 trillion federal infrastructure Bill that includes an estimated seven 5 billion to be used for building the nationwide infrastructure to support the anticipated growth and the adoption of <unk>.

<unk> vehicles.

Since January 2021, Blink was awarded $30 million in grants from several different state organizations looking to strengthen their commitment to electric vehicles.

Since January 2021, Blink was awarded $30 million in grants from several different state organization looking to strengthen their commitment to electric vehicles.

With more and more states following this trend, we have a tremendous opportunity to capture valuable grant awards that will aid in the expansion of our footprint.

With more and more states. Following this trend we have a tremendous opportunity to capture valuable Grant awards that will aid in the expansion of our footprint.

Slide 14 details two recent examples of grants that blink one in the first quarter of 2022. In March, we received a grant from the Massachusetts Department of Environmental Protection under the Massachusetts Electric Vehicle Incentive Program to install our chargers at strategic locations across the state.

Slide 14 details two recent examples of grants that Blink one in the first quarter of 2022 in March we received a grant from the Massachusetts Department of Environmental protection under the Massachusetts Electric vehicle incentive program to install our chargers that strategic locations.

Across the state.

Then in April , we received another grant from the Mid-Atlantic Electrification Partnership through Virginia Energies to build out their rural EV charging networks by deploying blink chargers in partnership with Virginia Clean Cities.

Then in April we received another grant in the mid Atlantic electrification partnership through Virginia energies to build out the rule EV charging network by deploying Blink Chargers and partnership with Virginia clean cities.

These grants are valued because they allow us to expand our charging footprint with limited deployment expense and enhance return on our investment.

We've made strong progress partnering with industry leaders and government entities for the deployment of our chargers, and we're expanding our charging footprint globally through a strategic, accretive acquisition.

We've made strong.

Progress partnering with industry leaders and government entities for the deployment of our Chargers and we're expanding our charging footprint globally through strategic accretive acquisitions. As a result, we've been able to deliver considerable growth highlighted by a 339% incur.

As a result, we've been able to deliver considerable growth highlighted by a 339% increase in year-over-year revenue driven by increased product sales and service revenue.

And year over year revenue driven by increased product sales and service revenues. We are excited about numerous opportunities we're seeing in the industry and we look forward to capturing additional grants and partnerships and strategically acquiring leading companies that can continue to grow.

We are excited about numerous opportunities we're seeing in the industry and we look forward to capturing additional grants and partnerships and strategically acquiring leading companies that can continue to grow our market share.

Our market share.

I will now turn it over to our CFO , Michael Rama, to run through some specific results for the quarter. Here you go, Michael. Thank you, Brendan.

I will now turn it over to our CFO , Michael Rama to run through some specific results for the quarter Michael.

Thank you Brendan and good afternoon, everyone.

Turning to slide 16 total revenue in the first quarter of 2022 grew to $9 8 million another record for the company and an increase of 339% compared to the first quarter of 2021.

Turning to slide 16, total revenue in the first quarter of 2022 grew to $9.8 million, another record for the company, and an increase of 339% compared to the first quarter of 2020.

Product sales in the first quarter of 2022 were $8.1 million, an increase of 382% over the same period in 2021. As customers purchased greater volumes of our commercial chargers, DC fast chargers, and residential chargers, as well as revenues generated through our European subsidiary Blue Corner, which was acquired in May 2021.

Product sales in the first quarter of 2022 were $8 1 million an increase of 382% over the same period in 2021.

Customers purchase greater volumes of our commercial Chargers, DC fast Chargers and residential charters as well as revenues generated through our.

Our European subsidiary Blue corner, which was acquired in May 2021.

First quarter 2022 service revenues, which consists of charging service revenues, network fees, and ride sharing revenues were $1.5 million, an increase of 346% compared to the first quarter of 2021.

First quarter 2022 service revenues, which consist of charging service revenues network fees and Ridesharing service revenues were $1 5 million, an increase of 346% compared to the first quarter of 2021 year.

The year-over-year growth is primarily due to the increased utilization of our chargers, an increased number of chargers on our Blink network, and revenues from the Blue Corner acquisition. We believe it makes sense to combine these three service revenue line items into one amount to differentiate between the product and service aspect of our business. And this approach also aligns with our company's strategic goal of

The year over year growth is primarily due to the increased utilization of our Chargers.

The increased number of charters on our plant network and revenues from the Blue corner acquisition. We believe it makes sense to combine these three service <unk>.

Revenue line items into one amount to differentiate between the product and service aspects of our business and this approach also aligns with the company's strategic goal of increasing the service component of our revenue mix in growing our recurring revenue base in time as EV adoption accelerate.

service component of our revenue mix and growing our recurring revenue base.

In time, as EV adoption accelerates and utilization of our charging stations improve, we anticipate seeing a larger mix of revenues come from service.

And utilization of our charging stations in Peru.

We anticipate seeing a larger mix of revenues come from services.

Gross profit for the first quarter of 2022 was approximately $1.6 million, an increase of over 1,500% over the same period in the prior year. We continue to look at ways to reduce our component costs, especially in light of the ongoing supply chain disruptions occurring globally.

Gross profit for the first quarter of 2022 was approximately $1 6 million an increase of over 1500% over the same period in the prior period. Prior year, we continue to look at ways to reduce our component costs, especially in light of the ongoing supply chain disruptions occurring.

Globally.

Operating expenses in the first quarter of 2022 were $16.6 million compared to $7.5 million in the prior year period. This increase reflects our longstanding commitment to investing in our business in anticipation of the domestic and international growth of our business, as well as operating expenses from Blue Corner, which was acquired in 2021.

Operating expenses in the first quarter of 2022 were $16 6 million compared to $7 $5 million in the prior year period. This increase reflects our longstanding commitment to investing in our business in anticipation of the domestic and international growth of our business.

As well as operating expenses are in Blue corner, which was acquired in 2021, we continue to seek out and hire talented individuals.

We continue to seek out and hire talented individuals.

that will contribute to our company's growth and success. And we're committed to the research and development of innovative new products that place our product line at the forefront of the EV charging.

That will contribute to our company's growth and success and we're committed to the research and development of innovative new products that place our product line at the forefront of the EV charging industry that said, we ensure that our expenses are closely monitored and are benefiting the growth of our company in the <unk>.

That said, we ensure that our expenses are closely monitored and are benefiting the growth of our.

In the third quarter of 2021, we began the practice of presenting adjusted EBITDA. Our manager believes this non-GAAP measure is useful in evaluating our company's core operating performance because it excludes items that are either significant non-cash or non-recurring expenses.

Third quarter of 2021, we began the practice of presenting adjusted EBITDA. Our manager believes this non-GAAP measure is useful in evaluating our companys core operating performance because it excludes items that are either significant noncash or nonrecurring expenses adjusted EBITDA for the first.

Adjusted EBITDA for the first quarter of 2022 was a loss of $12.4 million, compared to a loss of $6.5 million in the prior year period due to the previously mentioned higher operating

<unk> 2022 was a loss of $12 4 million compared to a loss of $6 5 million in the prior year period due to the previously mentioned higher operating expenses adjusted EBITDA as a percentage of revenues for the first quarter of 2022 improved 162 basis points compared to the <unk>.

adjusted EBITDA as a percentage of revenues for the first quarter of 2022, improved 162 basis points compared to the first quarter of 2021.

First quarter of 2021.

Now turning to slide 17, our revenues and gross profit performed well in the first quarter of 2022, continuing the upper trend that we've seen over the past several quarters.

Now turning to slide 17, our revenues and gross profit performed well in the first quarter of 2022, continuing the upward trend that we've seen over the past several quarters that as.

As we execute our own and operator strategy and the demand for our reliable and convenient EV infrastructure increases, we believe that we are well positioned to continue driving increased revenues and gross profit moving forward. Moving to our cash position.

As we execute our own an operator strategy and the demand for our reliable and convenient EV infrastructure increases. We believe that we are well positioned to continue driving increased revenues and gross profit moving forward.

Moving to our cash position at March 31, 2022, the company had approximately $162 million of cash compared to $175 million at December 31, 2021, we believe we have sufficient cash on hand to fund our operation.

March 31st, 2022, the company had approximately $162 million of cash compared to $175 million at December 31st, 2021. We believe we have sufficient cash on hand to fund our operation.

We're pleased to begin 2022 with a strong start, and we achieved record revenues for the second quarter in a row. These improvements in our operating results are a direct reflection of the solid foundation we've built over the past several years. And we believe we are well positioned to capitalize on the numerous opportunities and increased focus being placed on the EV industry.

Pleased to begin 2022 with a strong start and we achieved record revenues for the second.

Quarter in a row these improvements in our operating results.

Direct our direct relation.

Reflective of the solid Foundation foundation, we built over the past several years and we believe we are well positioned to capitalize on the numerous opportunities and increased focus being placed on the EV industry I will now turn the call back over to Michael Parker for a few final comments.

I will now turn the call back over to Michael Farkas for a few final comments.

Go ahead Michael.

Okay.

Yes.

Luke.

We started 2022 by delivering tremendous results.

We've started 2022 by delivering tremendous results, highlighted by an increase in year-over-year revenue of almost 340%.

Led by an increase in year over year revenue of almost 40.

40%.

And we believe that with our strategy and product offerings, we are well positioned to drive growth throughout the balance of the year. We're energized by what's ahead for Blink and capitalizing on many of the opportunities that the EV industry is providing. With that, we will now open the call for questions.

We believe that with our strategy and product offering we are well positioned to drive growth throughout the balance shown here.

We're energized by what's ahead for Blink and capitalizing on many of the opportunities that the EV industry is providing with that we will now open the call for questions.

Yes.

Thank you ladies and gentlemen, the floor is now open for questions. If you would like to ask a question at this time. Please press star one on your telephone keypad to enter the queue.

Thank you. Ladies and gentlemen, the floor is now open for questions. If you would like to ask a question at this time, please press star 1 on your telephone keypad to enter the queue.

Should you wish to remove yourself from queue, you May press star two.

should you wish to remove yourself from queue, you may press star two. If listening on speakerphone this afternoon, we ask that you please pick up your handset while asking your question to provide optimal sound quality. Once again, ladies and gentlemen, you may press star one on your telephone keypad now to enter the queue to ask the question. Please hold a moment while we poll for questions.

Listening on speaker phone. This afternoon, we ask that you. Please pickup your handset or asking your question to provide optimal sound quality once again, ladies and gentlemen, you May press star one on your telephone keypad now to enter the queue to ask a question. Please hold a moment, while we poll for questions.

And your first question is coming from Steven from Cecil. Steven, your line is live. Please go ahead. Thanks.

On your first question is coming from Stephen <unk> from Stifel. Steven Your line is live. Please go ahead.

Thanks, and good afternoon everybody.

So, thanks for taking the question. So, what I would start with is, curious about the electric blue acquisition. Can you just give us a sense for like when we think about the 1150 chargers, I know some are either installed or planned to be installed. Given the maturity or higher maturity of the European market versus US, how do we think about sort of the revenue content that that brings on the charging side?

So thanks for taking the question so what I would start with is curious about the electric Blue acquisition.

Can you just give us a sense for like when we think about the 1100 50 Chargers I know summer either installed or planned to be installed.

Given that the maturity or higher.

Higher maturity of the European market versus the U S. How do we think about it.

Sort of the revenue content that that brings on the on the charging side.

I think it's important to note not only the obviously the revenues that are going to be derived off the utilization of the charging stations.

I think it's important to note not only the, obviously, the revenues that are going to be derived off the utilization of the charging stations, and I'll let Michael Rama address that in more detail, you have to look at the transaction itself. You're talking about a total potential cost of twenty three million dollars. The acquisition at first before potential earn outs and so on was about thirteen million dollars.

And I'll, let Michael Rama address that in more detail.

You have to look at the transaction itself you are talking about a total potential cost was $23 million.

The acquisition that first before potential earn outs as John was about $13 million.

And we bought a company that has about $16 million in order book. So it's actually more than what we're paying for the company. In addition today, they buy hardware from a third party. We're now going to fill those orders using Blink equipment. Instead of them using a third party network company, we're going to put all of those chargers and all future chargers that they have on our network.

And we bought a company that has about $16 million and order book.

So it's actually more than what we're paying for the confidence.

In addition today they buy hardware from a third party, we're now going to fill those orders using blink equipment instead of them using the third party network company, we're going to put all of those charges and all future charges that they have on our network. So it's again, there's a lot of cost savings.

So it's again, there's a lot of cost savings. In addition, it gives us a tremendous footprint in the UK. They've won over 40 different municipal contracts throughout the UK. So it's not only just the pipeline that they have of units for today, but each and every one of those locations have additional parking spots in them and now become hours for the future. I'll let Michael address the revenue side in more detail.

In addition, it gives us a tremendous footprint.

In the U K they've won over 40 different municipal contracts throughout the U K. So it's not only just the pipeline that they have of units for today, but each and every one of those locations have additional parking spots in them and now become hours for the future.

I'll, let Michael address the revenue side in more detail.

Yeah, you know, right now, they're still, you know, still fairly heavily on product sale. But obviously, as we start building out the footprint and additional blink model, if you will, we'll start to see a little bit more on the charging side of the equation. But as Michael said, you know, they had an order book of over 16 million, its entrance into UK into that market. So this was really what was the driving factors and the government participation that's also involved. So really encouraged with the fact.

Right now there are still.

Still fairly heavily.

On product sales, but obviously as we start building out the footprint and additional Blink model. If you will we will start to see a little bit more on the on.

On the charging side of the equation, but as Michael said.

An order book of over $16 million its entrance into the U K into that market. So this was really what was the.

The driving factors and the government.

Participation Thats also involved so so really encouraged with this acquisition.

Great. Thank you. And then just a quick follow up. When we think about if we exclude acquisitions, any, any guidance for how we should think about full year 22 CapEx.

Great. Thank you and then just a quick follow up.

When we think about if we exclude acquisitions.

Any guidance for how we should think about full year 'twenty two capex.

You know, obviously, we're continuing to proceed. You know, we're monitoring, obviously, the inventory procurement. We're obviously with the supply chain, so we're aggressive in obtaining inventory. So, you know, absent the, you know, any acquisition, we see the profile being fairly similar to what we've done in the first quarter, you know, moving forward.

Obviously, we are continuing to proceed.

Monitoring obviously the inventory.

Procurement, where obviously with the supply chain.

We're aggressive in obtaining inventory.

So.

Absolutely.

Any acquisition, we see the profile being fairly similar to what we've done in the first quarter.

Moving forward.

Thank you.

Thank you. Your next question is coming from Matt Somerville from DA Davidson. Matt, your line is live. Please go ahead.

Your next question is coming from Matt Summerville from D. A Davidson. Your line is live. Please go ahead.

Good afternoon. This is Will Jellison on for Matt Somerville. I want to start with a follow-up on the EB charging question just as, can you talk a little bit more about the process you went through in buying the business in terms of how long ago you were introduced to them, whether or not you were considering any other UK chargers as part of thinking about buying your way into that market, and then if any other firms were involved in bidding for the asset? Brandon?

Good afternoon. This is willing to Allison on for Matt Summerville, Hi, I wanted to start with a follow up on the EV charging question. Just ask can you talk a little bit more about the process you went through and buying the business in terms of how long ago, you were introduced to them.

Or not you were considering any other UK charges as part of thinking about buying your way into that market and then if any other firms who were involved in bidding for the asset.

Brendan.

Yeah.

I'll take the question no problem. So yes, it's been.

a nine month.

Nine months.

endeavor. We started thinking about it even further back than that. We went through an analysis, of course, of organic growth and establishing a presence, just as a blink company in the UK. And then we looked at growth through acquisition.

Endeavor, we started thinking about it even further back when that we went through an analysis of course.

Organic growth and establishing a presence just as a blink company in the UK and then we look to grow through acquisition ultimately, we decided on purchasing a company that operated and was fully accepted with both in the U K business community as well within the municipal municipal.

Ultimately, we decided on purchasing a company that operated and was fully accepted with both in the UK business community as well within the municipal community as well. We went through several different companies before we landed.

<unk> community as well.

Went through several different companies before we landed on <unk> and what we liked about <unk> was a the owner operator model that they are operating now and the expansive ability moving them not just owner operator, but in home sales of charges that we have so another product Avenue for US and then hybrid models like we focus.

on EB. And what we liked about EB was, A, the owner-operator model that they're operating now, and the expansive ability of moving them from not just

owner-operator, but in-home sales and chargers that we have, so another product avenue for us, and then hybrid models like we focus on as well.

On as well, but the big takeaway is theyre fully embedded within the UK community for all the grants and Rfps that are out there and they were one of the biggest tender winners out there today. So we believe with the additions will provide as Michael Iterating to about the new network new hardware.

But the big takeaway is they're fully embedded within the UK community for all the grants and RPs that are out there. And they're one of the biggest tender winners out there today.

So we believe with the additions we'll provide, as Mike alliterated too, about the new network, new hardware that we can get a return on that and a margin.

There that we can get a return on that in our margin and then all the new software that were going to bring to the table, we're really going to take <unk> to the next level.

And then all the new software that we're going to bring to the table, we're really going to take EB to the next level.

Understood. Thank you. And then, can you talk a little bit more about what, if any, supply chain challenges you might have encountered during the quarter and what kind of impacts they might have exerted on product sales or procuring certain chargers or parts during the quarter and how you were able to navigate that?

Understood. Thank you.

And then can you talk a little bit more about what if any supply chain challenges you might have encountered during the quarter and what kind of impact they might have exerted on.

<unk> sales or procuring.

Charges of parts during the quarter and how you were able to navigate that.

Michael You want me to take this one yes.

Yes. Please.

Yes, so we put a lot of effort in 2021 into making sure that we had secured our product lines for 2022.

Yes, so we put a lot of effort in 2021 and to making sure that we had secured our product lines for 2022, so thus far in particular on the <unk> charges, both in Europe , and the United States.

So thus far, in particular, on the L2 chargers, both in Europe and the United States, we had limited issues because we had already previously secured the components leading into 2021. We continue to do that for leading into 2023. As everyone knows, it's a challenging

We had limited.

<unk>, because we had already previously secured the components and leading into 2021, we continue to do that for leading into 2023 as everyone knows it's a challenging <unk>.

market right now. So if you're not way out in front, you're going to find yourself way behind. So the same tactics we engaged in in 2021 to secure 22, we're engaging in right now to secure 2023.

Market right now so if youre not way out in front youre going to find yourself way behind some of the same tactics. We engaged in 2000 2021 to 622 were engaging in right now to secure at 2023. So we're seeing that all the product we have for current sales on the books in future sales throughout this.

So we're seeing that all the products we have for current sales on the books and future sales throughout this year, we have indeed secured.

Year, we have indeed secured.

Understood. Thank you.

Thank you and as a reminder, ladies and gentlemen.

Thank you. As a reminder, ladies and gentlemen, the queue remains open. You may press star 1 on your telephone keypad now if you'd like to enter the queue to ask a question.

<unk> remains open you May press star one on your telephone keypad now if you'd like to enter the queue to ask the question.

Your next question is coming from Samir Joshi from H.C. Wainwright. Samir, your line is live. Please go ahead.

Your next question is coming from Sameer Joshi from H C. Wainwright Sameer. Your line is live. Please go ahead.

Thank you. Congratulations, all, for a very successful quarter. I just had a few questions on the new product launch, the products that were introduced in the beginning of the year. When and what is the timeline for actual deployment of these products, any product that may already be in the field and how it is performing? If you have any data, that would be great.

Thank you.

Congratulations on a very successful quarter.

I just had a few questions on the new product launch.

That does.

The products that were introduced in the beginning of the year.

When and what is the timeline for actual deployment of these products.

That may already be in field.

With its performing.

If you have any data that would be good.

Yes.

Michael you want me to take it.

Go ahead.

So for the MQ, which is the fleet charger and the supporting software and fleet network and fleet portal, that's all launching within the next 30 days.

Yes.

So for.

For the <unk>, which is the fleet charger and the supporting software.

And fleet network and fleet portal, that's all launching within the next 30 days.

Right behind that, you'll find that the HQ200 is launching, almost simultaneously, but just a little behind on that. Then as we move through the summer into the end of Q2 moving into Q3, we'll see the new wallbox.

Right behind that Youll find that the HQ200 is launching almost simultaneously, but just a little little behind on that then as we move through the summer into the end of Q2 moving into Q3, we will see the new wall box.

We plan on launching that in the late summer. And then as we move into the end of Q3, we'll have the IQ Vision product out there.

We plan on launching that in the late summer and then as we move into the end of Q3, we will have the IQ vision that product out. There. Then also all the new network enhancements or I should say the new network that will support all of our global networks and global products that launched.

Then also, all the new network enhancements or I should say the new network that will support all of our global networks and global products, that launches at the end of Q2.

As at the end of Q2.

So we have successive launches planned throughout the this quarter we're in at the end and the beginning of next quarter, and then into the end of Q3 moving into Q4 to round out the year. So a lot of hot activity with a lot of new exciting stuff.

So we have successive launches planned throughout the this quarter. We're in at the end and beginning of next quarter and then into the end of Q3 moving into Q4 to round out the year. So a lot of hot activity with a lot of new exciting stuff.

Got it. Thanks for that. And are these products going in new locations or are there plans to or is there demand for change of some of the current locations with upgraded products?

Got it thanks for that and are these rather going in new locations.

Are there plans to.

Or is there demand for change.

Some of the current locations with upgraded product.

Well, there's always going to be opportunities where somebody needs to upgrade, but what we see most is first additionality to existing charging as we expand, as we've just recently seen in Massachusetts, they now want 10% in every parking lot that's out there of EV chargers, so we're going to be focusing there for additionality, and then this is all new business.

Well, theres always going to be opportunities, where somebody needs to upgrade but what we see most is first additionality two existing charging as we expand.

As we've just recently seen in Massachusetts.

They now want 10% in every parking lot.

That's out there of EV Chargers, so we're going to be focusing there for additionality and then this is all new business.

We have the fleet software, the fleet portal, and the MQ along with the fleet DC fast chargers. These are brand new, exciting products to enter this segment. And we are going to get new penetration, new growth, new revenue out of that segment. So a little bit replacement, but that's the minor. The most additionality and new business.

<unk>, we have the fleet software the fleet portal and the MQ along with the fleet DC fast Chargers. These are brand new exciting product.

Products to enter this segment.

And we're going to get new penetration new growth new revenue out of that segment.

A little bit replacement, but that's the minor.

Most additionality and new business.

Got it.

it. So next question is probably for Michael Rama. Can you remind us how you treat the owned products? Do they go directly on the balance sheet or do they go through any other financial statement?

So next question is probably for Michael Rama.

Can you remind us how you treat.

Owned products.

We go directly on the balance sheet or do they go to any other.

<unk> segment.

Well, actually, when we buy the chargers, right, just when we acquire them or procure them through our, you know, our contract manufacturer, they come in as inventory on our balance sheet. Now, if they get sold as part of a hardware sale, they get written off as part of cost of sale, but then if they are.

Well actually when we buy the Chargers right, just when we acquire them or procure them through our.

Our contract manufacturer.

They come in as inventory on our balance sheet now.

They get sold as part of a hardware sale they get written off as part of cost of sale, but then if they are.

They turn into an or operate that they get transferred into fixed assets along with the any.

they turn into or operate, then they get transferred into fixed assets along with any installation costs, if we're paying for it, will be put on the fixed assets or property, plant, and equipment and get depreciated over the seven-year period.

Installation costs, if we're if we're paying for it we'll get will be put on the on the fixed assets or property plant equipment and get depreciated over the seven year period.

Five to seven years on average.

Understood. Thanks for that clarification. And then on the costs front, when we compare the sequential quarters from 4Q to 1Q, we see that the G and A line has gone up, whereas the compensation line has gone down. Has there been any changes in resources or reclassification of resources from one to other or any other reason for this?

Understood. Thanks for that clarification, and then on the costs front.

When we compare the sequential quarters from <unk> to <unk> we.

We see that the DNA line has gone up whereas the compensation line has gone down.

Has there been any changes in resources are.

The classification of resources from one to the or.

Any other reason for this.

No, what you're seeing in Q1, and we've noted this in previous quarters, in 2021, starting around May, there was a performance, special performance.

No.

We're seeing in Q1, and we've noted this on previous in previous quarters, we had.

In 2021, starting around May there was a.

Our performance.

Special performance.

equity option award that significantly, about $13 million of it got expensed in 2021. So you saw that bleed through into 21. We only had a million dollars of that left to expense in 2022, in the first quarter. So that's where you're seeing the decline in the, it's really, it's a share based compensation that the expensing of that got taken care of majority in 2020.

Equity option award that significantly about $13 million of it got expense into 2021. So you saw that bleed through into 'twenty. One we only had $1 million of that left to expense in 2022 in the first quarter, So thats, where youre seeing the decline.

As it relates to share based compensation that the expensing of that got taken care of the majority in 2021.

Got it just one last book keeping question what is the number of employees now following the <unk>.

Got it. Just one last bookkeeping question. What is the number of employees now following the EB acquisition? Brendan, you got the number?

Acquisition.

Brendan you got the number of probably closer to need.

Yes, including maybe we're just north of 230.

Yeah, including EB, we're just north of 230.

Great. Thanks, Congrats on all the progress and good luck.

Great, thanks. Congrats for all the progress and good luck.

Thank you. Thank you.

Thank you. Your next question is coming from Oliver Huang from Tudor Pickering Hope. Oliver, your line is live. Please go ahead. Good afternoon, everybody.

Thank you.

Your next question is coming from Oliver Huang from Tudor Pickering Holt.

Oliver Your line is live please go ahead.

Good afternoon, everybody and thanks for taking my questions.

On the charging service segment, just wanted to see if there was any incremental color with respect to a couple of quarter over quarter transfers Q421 that we're seeing with respect to the charging service revenue and gross margins, especially kind of given a growing absolute charger base, or if it's just kind of due to some sort of one-off.

On the charging service segment just wanted to see if there was any incremental color with respect to a couple of quarter over quarter trends versus Q4, 'twenty. One that we're seeing with respect to the charging service revenue in gross margins, especially kind of given a growing absolute charter base or if it's just kind of due to some sort of one off.

So what you're seeing you and I'm sorry, which is obviously we're seeing, you know, you know increases in charging but you have a specific question to the abnormality

So what youre seeing.

I'm sorry.

Obviously, we're seeing increases in charging but do you have a specific question to the user.

Abnormality interesting.

It's more so the quarter over quarter decrease in this charging service revenue and just on the gross margins.

It's more so the quarter over quarter decrease in the charging service revenue and just on the gross margin side of things.

Yeah, we looked at that and it's really not, it's interesting, what we're seeing is there were actually, and it starts to matter when you look at it, there was actually I think 92 or 93 days in Q4 and only 90, so each day does make a difference when you look at it on the kilowatts sold. So we looked at that and we actually had a little bit less kilowatts sold.

The comp.

Yes, we looked at that and it's really not.

It's interesting.

We're seeing is we're actually and it starts to matter.

When you look at it there was actually I think 92% 93 days in Q4.

Only 90.

And so each day does make a difference when you look at on the kilowatt solar so we looked at that we actually had a little bit less kilowatts sold.

you know, an absolute, in an absolute amount, but it was because you had less days. So you have a little bit of a factor in number of days that are sitting in the quarter. So you might see some abnormalities from time to time with that. And there was, let's say we also, we did experience a little bit of probably of a, so

In absolute dollars in an absolute amount, but it was because you had less days.

So you have a little bit of a factor a number of days that are sitting in the quarter. So you might see some have not.

Abnormalities from time to time.

With that Ed.

And there was.

So we did experience a little bit probably over.

Some.

You know, weather plays a factor in charging in the winter seasonality. And a little bit of pullback probably from the Omicron virus that reflected in the first quarter.

Weather.

Plays a factor in charging in the winter seasonality.

And a little bit of a pullback probably from the from the the Omnicom a virus.

That's reflected in the first quarter.

Perfect that makes sense and for a follow up just kind of bigger picture given the significant owner operated structure that leverages. The utilization is there any color on how youll see trajectory of gross margins on the charging electricity services segment tracking over time, when we kind of consider the potential for increased competition in <unk>.

Perfect. That makes sense. And for a follow up, just kind of bigger picture, given the significant owner operated structure that leverages to utilization. Is there any color on how you'll see trajectory of gross margins on the charging electricity services segment tracking over time when we kind of consider the potential for increased competition in future years, potentially kind of

Each of years potentially.

Coming into play.

Okay.

Well, I'll answer that, you know, simply from we expect to see some, some increases, obviously more usage. You're going to see more scale as it relates to some of the fixed components of electricity. Not sure if some, I don't know if Michael or Brendan want to jump in, I think, or somebody jumping in. Yes.

Well I'll answer that simply from Wil.

We expect to see some.

Some increases obviously more usage youre going to see more scale as it relates to some of the fixed components of electricity not sure Michael are Brendan wants to jump in I think Fortunately jumping in.

Yes.

No.

The good thing about our business is, you know, as we acquire more customers and as we have more volume, it impacts all of our costs.

The good thing about our business is as we acquire.

More customers and as we have more volume at.

It impacts all of our costs are cost of electricity go down considerably as we buy more and more throughout the country.

our costs of electricity go down considerably as we buy more and more throughout the country.

Similarly, with hardware. From the actual installation perspective, maybe not as much. But we're going to be able to increase margins, even while we reduce prices, because our cost of electricity should go down considerably, as we're able to negotiate bigger contracts on a nationwide basis. Today, we typically use the meter of the property owner, or we bring in our own meter, and we're not aggregating energy at this point in time. But as volume increases, we will.

Similarly with hardware.

From the actual installation perspective, maybe not as much.

But we're going to be able to increase margins, even while we reduced prices because of our cost of electricity should go down considerably as we are able to negotiate bigger contracts on a nationwide basis today, we typically use the meter of.

The property owner or we bring in our own meter and were not aggregating energy at this point in time, but as volume increases we will.

Awesome, Thanks for the color.

Thank you.

Your next question is coming from Noel Parks from Tohee Brothers. Noel, your line is live. Please go ahead.

Your next question is coming from Noel Parks from Tuohy Brothers.

Your line is live please go ahead.

Yeah.

Hi, good afternoon.

I wanted to follow up on the product launches. It was good to get the detail about the timeframes for when they're going to be rolled out. I'm just curious about the marketing effort behind those. Is that for these different product lines, are they essentially just, you know, bolt-ons to the existing marketing spend? Or are there sort of new separate efforts as far as maybe establishing the brand in these different markets?

Hello, I wanted to follow up on on the product launches it was.

Good to get the detail about the timeframe for when they're going to be rolled out I'm just curious about.

The marketing effort behind those is that fair.

Or are these different product lines or they are frankly, just bolt ons to the existing marketing spend or are there sort of a new separate efforts as far as maybe establishing the brand in these different markets.

So I'll address first the fleet side, so it's going to be a new effort, but it plays over the strength of the overall Blink brand.

So, I'll address first the fleet side. So, it's going to be a new effort, but it plays over the strength of the overall Blink brand.

So, we will, we've increased our ground game already, hired new staff, et cetera. At Old Fleet is very event intensive. You'd be surprised at the amount of fleet shows that happen in the United States. We began to sign up for them in Q4 of last year, and we're indeed attending them. We've already won one of our first fleet contracts from attending one of those.

So we will we have increased our our ground game already hired new staff et cetera.

Our fleet is very event intensive.

You'd be surprised at the amount of fleet shows that happened in the United States, We began to sign up for them in Q4 of last year and we are indeed, intending attending them. When we've already won one of our first <unk>.

<unk> contracts from attending one of those.

those conferences. We'll increase to direct publication.

Those competences will increase to direct publications.

in the fleet space, our spend in media, and also geotarget other online and digital ads to where the fleet companies live and breathe. And then the other part that it may be one of the biggest contributors is your lobbying effort and your boots on the ground.

In the fleet space, our spend in media and also Geo target other online and digital ads towards the fleet companies Lib.

Right.

Then.

Other part that it may be one of the biggest contributors is youre lobbying effort in your boots on the ground towards governments, who have a lot of mandates on the fleet side.

towards governments who have a lot of mandates on the fleet side. You have to have strong relationships with them to be in contention for their fleet bids as they transition their fleet. So both private through a lot of ESG initiatives and both public, the fleet space is booming. I mean, it's a huge market.

You have to have strong relationships with them to be in contention for their fleet bids as they transition their fleets. So both private through a lot of ESG initiatives in both public the fleet space is booming.

It's a huge market.

Yeah.

And, for example, also the home charger line, any differences there?

Great.

And.

<unk> also the home charger.

Brian any any differences there, yes, so on the home Chargers.

Yes, on the home charger, you know, we, we predominantly retail the home chargers through online resources. So we're going to continue to do that while we're simultaneously exploring other options for marketplace options and direct the blank.

We predominantly retail the home Chargers through online reach.

Sources. So we're going to continue to do that while we are simultaneously exploring other options marketplace options direct the blink options and then we'll continue to advertise that through our standard marketing products.

options and then we'll continue to advertise that through our standard marketing products, whether it's online or direct-to-consumer advertising of various different natures.

Either online or direct to consumer advertising a various different natures.

But we're exploring some options to get better reach and frequency on sales on that.

Great, thanks. And then just the other thing I wanted to touch on is an area where you've had.

Great. Thanks, and then just the other thing I wanted to touch on is.

An area, where you've had.

a lot of success over time is certainly domestically on the grants side. And so I was interested to hear with the UK acquisition that your new company also has been very active in grants and tenders. So any insight you can give on just how that's going domestically would be great as well.

A lot of success over time.

Domestically on the.

Grants.

And so I was interested to hear was the UK acquisition debt.

Your New company also has been very active in grants and tenders. So any insight you can give on.

Just how that's growing domestically.

Would be would be great as well.

Sure so.

Sure, so we're doing good as we announced, you know, we're still increasing. We're at $30 million since January last year on that.

We're doing good as we announced.

We're still increasing were up $30 million since January last year.

On that the bulk of the.

the money coming from the Biden administration, the $7.5 billion is broken up into two different sections, $5 billion for federal and then for state money that they're going to dole out, and then $2.5 billion stays with the Fed for low-income, rural, and other charging services.

The money coming from the binding administration. The seven five is broken up into two different sections 5 billion for federal and then for state money that Theyre going to Dole out and then two five stays with the fed for low income rural and other charging services. The states are just getting a hold of.

The states are just getting a hold of the rules now. They're going to start rolling out their RFIs first, their request for information, then their RFPs in about Q2, I mean, excuse me, Q3, Q4. We'll see some awards roll in this year, and then we'll see some roll in next year.

The rules now theyre going to start rolling out their RF is first the request for information than their rfps in about Q2.

Q3, Q4, we'll see some awards roll in this year and then we'll see some more next year now blamed after giving the $30 million last year, we've increased and doubled the size of our Rfps and grants team who are active right now on responding to all sorts of other opportunity.

Now Blink, after giving the $30 million last year, we've increased and doubled the size of our RFPs and grants team, who are active right now on responding to all sorts of other opportunities that are still coming in. As a matter of fact, we just got another opportunity that was still aligned with the Volkswagen Mitigation Trust.

Is that are still coming.

Matter of fact, we just got another opportunity that was still aligned with the Volkswagen mitigation Trust from the diesel scandal, where another state Illinois.

from the diesel gate scandal where another state, Illinois, is just allocating a couple million dollars of funding there.

Allocating a couple million dollars of funding there. So everything is popping right now theres, a little bit of a pause because of the waiting for the fed money to rollout, but both state municipal and federal where the money is going to roll in and we have the team to take advantage of it we will get our unfair share.

So everything is popping right now. There's a little bit of a pause because of the waiting for the Fed money to roll out. But both state, municipal, and federal, the money's going to roll in, and we have the team to take advantage of it. We will get our unfair share.

Terrific. Thanks, a lot.

Thank you.

And we have a follow-up question from Steven Gingaro from Spiegel. Steven, your line is open.

And we have a follow up question from Stephens <unk> from Stifel.

Steven Your line is live please go ahead.

Thanks, and thank you for taking the fowl so

Thanks, and thank you for taking the follow up so just.

Just when I think about and I and you started to touch on this, I think, Michael, the the way the operating expenses should evolve as we kind of move forward here.

When I think about you started to touch on yes, I think Michael.

The the way the operating expenses you should evolve as we kind of move forward here.

over the next, say, one to two years. Can you give us any additional color on how we should think about the, even if it's operating expenses in aggregate as revenues rise and how that percentage kind of evolves? You know, I, yeah.

Over the next say one to two years can you give us any additional color on how we should think about the.

Even if it's even if its operating expenses in aggregate as revenues rise and how those how that percentage kind of evolves.

Yes, obviously.

We're continuously still investing in the growth as we mentioned domestically and internationally.

You know, we're continuously still investing in the growth, as we mentioned, domestically and internationally. You know, there's, we're still rounding out areas. You know, as we move forward, we don't know that timeliness, right? So we're still, we're still encountering a place at the.

We are still rounding out areas.

As you will but we don't know that timeliness right. So we're still we're still encountering in place.

you know, resource needs that we have, and we're seeing it in other areas. So, you know, as a percent, you know, we definitely will experience some scale. We definitely expect to see scale in those operating expenses, especially in the compensation and the salary area. You know, so we do, you know, over the next couple of years expect that percentage.

Resource needs that we have and we're seeing.

Other areas so.

As a percent we.

We definitely will experience some scale, we definitely expect to see scale in those operating expenses, especially in the in the compensation and the salaries.

Yes.

So we do over the next couple of years expect that percentage for sure to improve.

for sure to improve from where it's at now to over time. So we'll still see a little bit of a ramp up in the short term, but we'll see that moderate over the next, I'll call it 24 months, 18,

From where it's at now to.

Over time, so we'll still see a little bit of a ramp up in the short term, but we will see that moderate over the next I'll call. It <unk>.

24 months, maybe 18 months.

24 months.

Okay, great. That's helpful. And then the second one.

Okay great.

That's helpful.

The second one.

When you think about acquisitions, and maybe EB Blue is a good example.

When you think about acquisitions and maybe even blue is a good example.

How do you weigh the acquisition versus sort of organic growth? I mean, I imagine it's just value per dollar spent and a more rapid penetration into the market. Is that how we should be thinking about it?

How do you how do you weigh the acquisition versus sort of organic growth I mean, I imagine it's.

As value per dollar spent and in a more rapid penetration into the market is that is that how we should be thinking about.

Let's say so.

Yes.

Okay, Okay great.

OK, OK, great. No, that's all I have. Thanks for the call, gentlemen.

All I have thanks for the color gentlemen.

It's very important to note that when we do our acquisitions, they're strategic from many vantage points.

It's very important to note that when we.

We view our acquisition is their strategic for many vantage points.

It's not only about the portfolio of charging stations that they have in the ground. It's not only the locations that they have rights to, it's also about, you know, having the infrastructure available for us to expand immediately if we have customers that we work with on a global basis that are also present in those areas.

It's not only about the portfolio of charging stations as they have in the ground, it's not only the locations that they have rights to.

It's also about.

Having the infrastructure available for us to expand immediately if we have customers that we work with on a global basis that are also present in those areas.

In addition, obviously, with the EV transaction, when we paid $13 million down and we have a $16 million pipeline, obviously, that makes sense additionally, especially now we're going to be replacing it with the equipment that EV bought from a third party with Blink.

In addition, obviously with EV transaction, when we paid $13 million down and we have a $16 million.

Pipeline, obviously that makes sense. Additionally, especially now where then your accretion it would be equivalent of ABB bought from a third party with Blink manufactured designed networks equipment. So again is looking at it from a.

manufactured, designed, networked equipment. So, again, it's looking at it from, you know, many different vantage points. And if you look at what we did with Blue Corner, we bought the business.

Many different vantage points and if you look at what we did with blue corner.

What the business I think we were pretty creative in expanding this business and now it's much much larger than it was prior to us purchasing it.

I think we were pretty creative in expanding his business, and now it's much, much larger than it was prior to us purchasing.

And that's kind of our strategy and focus when we buy these companies. It's not only the natural growth that they have, it's what we could add to the picture as well.

And that's kind of our strategy and focus when we buy these companies it's not only the natural growth that they have I guess, what we could add to the picture as well.

Excellent. Thank you.

Yes.

Thank you. And there are no further questions in queue at this time. I would now like to turn the floor back to management for closing remarks.

Thank you and there are no further questions in queue. At this time I would now like to turn the floor back to management for closing remarks.

Thank you everyone for joining us today, we are extremely energized by the progress that we've made this past quarter.

Thank you, everyone, for joining us today. We are extremely energized by the progress that we've made this past quarter.

and we're excited by the many opportunities on the horizon as a leader in the EV charging industry. We look forward to speaking with you again very soon. Thank you, everybody.

And we're excited by the many opportunities on the horizon as a leader in the EV charging industry. We look forward to speaking with you again very soon thank you everybody.

Thank you. This does conclude today's conference call. You may disconnect your phone lines at this time and have a wonderful day. Thank you for your participation.

Thank you. This does conclude today's conference call. You may disconnect. Your phone lines at this time and have a wonderful day. Thank you for your participation.

Okay.

Q1 2022 Blink Charging Co Earnings Call

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