Q2 2022 Volta Inc Earnings Call
Including its quarterly report on Form 10-Q for the three months ended March 31, 2022, and its annual report on Form 10-K for the year ended December 31 2021.
In addition, during today's call the company will discuss non-GAAP financial measures, which they believe are useful as supplemental measures of <unk> 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 and both of the press release issued this afternoon and its filings with the SEC each of which.
It is posted on the voltage charging website. The webcast of this call will also be available on the Investor Relations section of the company's web site.
With that I will turn the call over to Vince Cubbage, our CEO .
Let me just country Hello, everyone. Thank you for joining today.
Very happy to be with you to report on our second quarter results.
I'd like to start by opening with a few observations made during my time as interim CEO .
It's clear that the world's waking up to the inevitability of Tvs over the past two months I've been immersed in meetings and interactions with all of <unk> stakeholders.
Across the board site partners media customers drivers policymakers, especially our employees, everyone, who really knows this company sees that Volta is uniquely positioned to succeed.
We have a different approach to this enormous opportunity. We're not just building a network of Chargers were building a powerful dual energy and digital advertising platform.
Voltage charging network combines a convenient safe accessible EV charging experience for our drivers with the only digital AD network of its kind.
All powered by industry, leading intelligence.
This enables volta to scale revenue ahead of the CV adoption curve.
Both the growth by partnering with the largest commercial properties and national chains build our EV charging network.
Both as Msas, which are master services agreements with seven of the 10 largest U S commercial property owners, allowing us to install our chargers on their properties under long term agreements.
Last quarter Volta signed three more MSA partners further expanding our national footprint.
Our differentiated model of building infrastructure in front of stores makes us the ideal partner for commercial and retail properties.
This competitive advantage was proven in our second quarter results, we completed 372, new charging stalls, a 71% increase in installations over the first quarter of this year and a 180% increase over the second quarter of last year.
Our Bolton network now totals over 2900 stores as of June 30, a 15% increase from the first quarter and a 48% increase from last year.
One thing I would point out is we only count stalls that are completed and fully commissioned in our numbers.
Our growing platform is achieving scale and creating greater opportunities for both our charging and media customers in the second quarter are charging network experienced significant growth in throughput totaling 4.8 gigawatt hours, a 26% increase over the first quarter and a 106% increase.
<unk> over the second quarter last year.
We expect this growth to continue and to begin contributing revenue in the second half of this year.
Both of those digital media network adds additional leverage to the platform as measured by the impact that and add has on everyone who walks by one of our charges.
The volt immediate network crossed a very important milestone this quarter.
Actually generating over 1 billion.
Monthly impressions.
Our high value network is in demand and as demonstrated by our significant backlog.
As of June 30, we had over 3900, new stores and our contracted backlog.
Adding 88 stores that are currently under construction <unk>.
<unk> hundred 41 stalls, where site engineering permitting work is underway and over 4200 additional stores under technical evaluation.
These numbers are a direct result of our efficient and effective MSA strategy.
To assist in our evaluation of sites Volta has developed a proprietary software program predict EV, which enables us to prioritize our locations and optimize the value of our charging and digital media assets.
Predicting these sites.
In markets with the highest propensity for easy adoption and the best locations within those markets, providing our drivers with safe and convenient charging right in front of brightly lit commercial properties.
Our network is also delivering financially during the second quarter voltage revenue was a record $15 3 million and 83% increase over just last quarter and a 121% increase over the second quarter of 2021.
This includes revenue from our predict media net.
Network development and licensing of.
I'm, sorry predictive D.
So third parties media sales contributed almost $4000 per charger in this quarter alone.
We are excited about this because as we turn on charging revenue it will be completely incremental and further demonstrates the power of both his network.
As we began charging for electricity, we won't need a 200 or 300% margin on electricity just to make our model work. Our network is much much more powerful than that.
This business model puts us in an enviable position.
Interacting with policymakers as an example, we can install chargers in disadvantaged communities and generate industry, leading revenue without overcharging for electricity and.
And we can offer communities important highly visible public communications channels with absolutely no cost.
We're all aware of the recent legislation and the multitude of existing financial grants loans incentives and support structures to facilitate the nationwide expansion of EV charging infrastructure.
Policymakers, who allocate those funds are working very hard to determine efficient impactful ways to accomplish their goals. We believe we have a clear competitive advantage and a more viable short and long term business model and we highlighted in our conversations with local state and federal decision makers.
Our recent win in Hoboken is a great example of US working with the mayor in town planners Ultra recently agreed to install a network of TC FC <unk>, two chargers, placing a voltage charging stations within a five minute walk of every resident in the entire downtown commercial district.
This public private partnership is an ideal example of how Volta enables communities to achieve their sustainability goals and provide the public with open access convenient EV charging further encouraging the transition to electric vehicles.
Summary voltage dual platform model creates an ecosystem that goes beyond electricity to generate significant revenue and drive value for our media customers site partners and our site partners tenants.
I'd like to hand, it over to Brent to review our commercial operations.
Thanks, Vince our commercial organization, a tremendous progress second quarter, several key highlights and I'm pleased to share with you all today in greater detail.
Before I do that I'd like to address some of the current market conditions now we're thinking about <unk> revenue business Chase.
Jason Goldberg Chief commercial strategy officer at publishes a leading advertising agency holding company recently said it really well.
Quote and tight economic times advertisers tend to ship more of their budget.
<unk> funnel and quote.
So I would like to elaborate on J J 's excuse me Jason's remarks.
Down funnel translates into advertisers, becoming more judicious in their marketing spend to ensure that the dollars. They are investing in media translating into measurable business results.
Bolt is digital first media model offers our advertisers and commercial partners unique and measurable value.
Which sets us up better than most to protect against economic uncertainty.
To take a minute to expand on that thought.
The Volta media network is a robust digital media platform.
Our digitally native approach to managing advertising campaigns, including capabilities, such as data driven audience targeting.
Programmatic media buying dynamic.
Dynamic creative triggers mobile re targeting in a suite of measurement and analytics.
<unk> brands rely on Volta for high value branded campaigns.
And for down funnel sales centric campaigns, which are critical to converting now advertising dollars into measurable sales.
I'm going to highlight a few of these examples shortly.
And these campaigns are not a nice to have.
But our need to have for brands of all kinds and are often associated with larger always on budgets.
As Vince mentioned in addition to our sophisticated digital advertising capabilities. Another large part of bolt has unique value is the physical location of our EV Chargers and media screens.
We strategically placed our infrastructure just steps away from the front doors of popular commercial locations.
I'm happy to share that as of June 32022, 77% of voltage screens are located within 500 feet of the front doors of businesses, such as grocery stores and pharmacies.
And this valuable placement and insurers volt as large digital screens are seen by as many consumers as possible maximizing voltage ability to grow awareness for advertisers and the very last message. These consumers see before finalizing their shopping list, enabling volta to directly influence in store.
<unk>.
And as I, just alluded to we're working with a suite of industry, leading digital measurement companies to enable a detailed and quick reporting on the metrics that marketers are prioritizing in today's economy.
And this leads me to our media business previously referred to as behavior in Cogs or.
Our media business has demonstrated solid repeat customers in the last six quarters 16 out of volt as top 20 media customers have purchased advertising across multiple quarters and seven of the top 20 media customers have bought in all six of those quarters in.
In the second quarter, 54% of Volta is media revenue was from repeat advertisers.
And we've also made significant strides in the quarter and position us as an even more compelling must buy for big brands and demonstrates the efficacy of the bolt on media networks.
You recently announced an important strategic relationship with Catalina, a leading shopper intelligence and Omnichannel video provider Catalina.
Catalina unlocks a new measurement capability for Volta campaigns in the form of incremental return on ad spend.
As a fundamental metric used in the world of advertising.
I understand and benchmark media expenditure to measure efficacy.
The ability to quickly report on this critical metric solidifies Volta is a digital first results driven media network in the minds of advertisers unlocking bigger and recurring advertising sales. Additionally, this collaboration makes both immediate inventory accessible to Catalina sales team and their advertising clients.
Opening yet another revenue source for bolthouse.
I'd like to highlight the results of one volts media campaign, which was jointly executed with Catalina and Dole fresh foods Joel.
So we'll start to drive incremental sales lift and grow its category share during the key selling season.
Eyecatching marketing showcasing multiple dose products was deployed on ultra screens near the entrances of grocery stores Catalina as measurement capabilities helped document that campaigns efficacy. It delivered an 8% sales lift and an eight 5% increase in category share for goal.
Pointing to another partner in the consumer packaged goods category, Coca Cola and Volta Media completed a case study partnership with quotient.
It was a leading digital media and promotions technology company to prove out return on Ad spend.
The 28 day study involves measuring sales of sprite seagram's in Fresca over the 2021 winter holidays.
Just level data provided by <unk> retail media and attribution data provided by quotient quantified the impact of the Volta media networks on Coca Cola sales.
The brands featured in the campaign saw a $2 5 billion.
<unk> sales and a return on that spend.
56% higher.
And the average digital out of home food and beverage campaign.
The study also indicated that Coca Cola was successful in converting new customers.
In the previous 12 months before engaging with both the station 8% of these consumers had not purchased these co products and 7% had not purchased a category.
These case studies that demonstrate <unk> ability to directly influence consumer behavior and purchase decisions and deliver those tangible metrics to advertising partners or.
Our stations unique proximity to the point of sale ensures advertisements displayed across the <unk> network for some of the last messages that shoppers see before they walk through the store entrance and fill up their card.
And this work demonstrates the measurable impact Volta campaigns can have on the Coca Cola company Dol and other consumer packaged goods brands.
Now I would like to move on two important developments in our charging solutions business and the terrific progress, we are making with our real estate and retail partners.
Adding new cornerstone clients and increasing our footprint with our existing partners due to the work of our talented sales team and differentiated solutions based business model.
For example, we announced a relationship with Kroger America's largest grocery retailer to bring a mix of DC fast and level two charging to kroger customers nationwide.
Both of our recently launched 16 Kroger locations in the Atlanta, and Indianapolis areas and plans to expand to Columbus Cincinnati.
Louisville, Nashville, Michigan in Southern California.
The collaboration will also enable Kroger precision marketing Kroger's retail media network to sell Volta media inventory to its clients unlocking another source of revenue for Volta and highlighting the power of pulses combined charging and media model to other retailer.
With advertising offerings.
This is another example of where our charging the media model continues to resonate.
<unk> is more than just charging solutions.
Solutions based partner delivering unmatched value to our clients and so in closing I want to reiterate the unique value ultra brings to advertisers commercial properties retailers and municipalities that ultimately drives business growth. This.
This value can be summarized by the strategic placement of our Chargers and media screens near the front doors of businesses into our suite of industry, leading measurement capabilities to approve the revenue generating power of Fulton media campaigns to advertisers and the impact we can make on retailers' business goals.
And with that I'll pass it over to Steven <unk>, Chief Accounting Officer.
Thanks Brent.
Turning to our Q2 financial results for the second quarter, we delivered above our outlook range for revenue with Q2 revenue growing 83% from our first quarter of 2022, and 121% year over year to $15 3 million.
Q2 media revenue, which formerly was called behavior in commerce grew 83% sequentially and 73% year over year to $11 2 million.
We ended the quarter with an installed base of 927 sites, adding 127, new sites in the quarter of Volta record.
Both of US installed base of stalls was 2920 on June 32022, up 15% quarter over quarter and 48% year over year.
The company installed an incremental 370 72 stalls during Q2.
For the second quarter, we signed a 187, new sites and 618 stores, we exited the quarter with a 1468 sites and 3942 stores in our signed construction pipeline.
During the second quarter, new brands to Volta medias.
Advertising platform included Michelin Genesis.
Airlines lift bank of America, and Hewlett Packard. In addition, during Q2, we had campaigns with repeat customers Kea General Mills Zoom Jeep Coca Cola and Apple.
Our gross margin excluding station depreciation for the quarter was 36% as compared to 26% gross margin in Q2 of 2021.
We continue to forecast a 25% to 30% gross margin for the full year.
SG&A expenses, excluding stock based compensation were $37 6 million for the second quarter as compared to $16 $1 million also excluding stock based compensation in the prior year period.
The increase year over year was due principally to increasing head count and related costs as well as public company compliance costs, including stock based compensation and onetime expenses SG.
SG&A was $43 9 million for the second quarter compared to $17 4 million in the prior year period.
We have made improvements to our SG&A levels and continue to work to reduce our recurring SG&A spend we have further work to do.
Adjusted EBITDA was $33 4 million loss for the second quarter of 2022 as compared to a $15 $1 million loss in the second quarter of 2021.
Net loss was $37 4 million for the second quarter compared to a net loss of $20 6 million in the prior year period.
The company had a cash and marketable securities balance of $105 million as of June 32022.
Both of head count during the second quarter was 421.
Our anticipation for full year 2022, Capex is now $110 million to $130 million to install our 2022 stations.
Weighted average shares outstanding for the second quarter were $167 2 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.
As we have stated previously the seasonality of our revenue is a function of the media industry spending trends, which tends to build throughout the calendar year with the first quarter being the lightest and the fourth quarter being the strongest.
In addition, we are reiterating total incremental connected stalls in the range of 1700 to 2000 and finally, we are reiterating total incremental connected sites to be in the range of 650 to 750 sites.
For the third quarter ending September 32022, we are guiding for third quarter revenue to be in the range of $17 million to $18 million.
And now I will turn it back over to Vince for some closing comments.
Hey, Thanks Stephen.
Over the past several months, we have transformed our management team with elevated a number of really exceptional people as well as bringing in several new experienced leaders.
Our team has taken important steps to improve our cost structure finalized the development of new products and lay the groundwork for our expansion into Europe .
There is certainly much more to do but I'm really pleased with the progress we've made to date and attribute much of that to the team. That's on this page by 'twenty colleagues and all of our other exceptional volta colleagues across the firm.
And with that I'd like to open the lines for Q&A.
Okay.
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Our first question is from Andres Sheppard with Cantor Fitzgerald. Please proceed.
Hey, good afternoon, everyone. Congrats on the quarter and thanks for taking my question.
Could you give us an update on your financial needs.
You will see how things progressed on that front. Thanks.
Hi, David This is Vince Thank you for the question.
Is a key question.
You asked me what question I would want to know where I would lead off as well.
There is two others.
I'm sure it's on everybody's mind.
As it relates to the debt we set on our May call that we were starting a process and shortly after saying that and starting that process, both our CFO and GC roughly left the company and drew and Brad I stepped in.
We're very very focused on this the process is well underway, we're very optimistic that we will complete the capital raise on the timeline that we have.
We think that.
It will be well received in the market quite candidly the people, we're talking to who are spending the time to dig into this business are seeing it.
And the way that we think is differentiated.
And as soon as we're able to tell you more on the specifics of what we come up with we will.
Got it.
Okay.
Uh huh.
Great I appreciate that thank you so much and maybe as a follow up.
I'm curious can we get your thoughts on in regards to the infrastructure and jobs Act, obviously theres a big catalyst coming in September with the state.
Getting confirmed and I'm just wondering.
How big of a beneficiary do you anticipate volta to be I know, it's a little bit hard to make some assumptions now as it's still a bit fluid, but I'm just trying to ideally quantify.
How big of a benefit and potentially how much funding you might receive so any any color you could you could add there.
It's a great follow up question to the capital raising because there is a tremendous amount of capital that has been earmarked for that purpose the nationwide build out in that.
The allocation of that capital is still being determined and it's being directed at both enabling long.
Long trips and kind of cross country, and it's also be allocated towards really making sure that nobody's left behind in terms of the ability to adopt <unk>.
Our Hoboken.
Project is a great example of how to do that in a community based approach.
The numbers are in the billions every one of our competitors are as focused on it as we are.
We have a policy team.
Very active on that front.
And drew lifts sure who is also here with US today is spent.
Great deal of time and predates me for certain on on that to do you want to take a minute.
Sure happy to thanks, Thanks, that's very nice to hear your voice again.
I think as Vince said.
With TIAA view, the government has appropriated seven $5 billion.
As everyone now knows $5 billion.
<unk> towards corridor, charging which is the common freight being used $2 $5 billion has been allocated towards urban and equity and community based charging as well we think based on the feedback that we've gotten from meetings that we've had in Washington, and the way that we're setting up focusing on this everyone knows the amount of money that is.
Been allocated to the states. The states have recently published many of them have published their plans now to take advantage of these <unk> funds and how they're going to set up the grant rebate types of programs. We're in the process of going through all of those as we speak as Im sure everyone is and we believe that we're uniquely positioned to garner more than our fair.
Share of the revenue.
It's going to be available or I should say the dollars that are going to be available, which are going to be important not just for volta.
To be able to accelerate our deployment, but also for the industry to accelerate the appointments and help keep the goals of the administrations $500000 500000 public charger target.
Got it. Thanks drew that's very very thorough if I could squeeze maybe one last one.
Could you give us an update on how the.
The partnership with Walgreens is progressing I think in the past you had mentioned that you would expect some of those.
DC fast Chargers.
Particularly get installed later this year, although I think the expectation is heavier installations in in 2023, but I'm. Just wondering if can you maybe give us an update on how thats progressing and some things to look forward there. Thanks.
Hey, its brand I would love to jump in on that thanks.
Thanks for the question.
So I would start off by saying.
Both Walgreens and Alta for me.
Really excited and committed to the rollout.
Building and charging across 500 Walgreens stores nationally.
In terms of an update so we're in the early phases of Tcf see deployment with Walgreens right now.
And we're going through the diligence process of evaluating the requirements in each of their properties within that.
500 store portfolio. So we've done the construction and design work and we believe that we will have the first new sites live in the latter part of 2022.
At the same time I think that we're also mindful of some of the constraints associated that we're seeing with the availability of local utility services that are required to operate.
The installed successfully and so we're going to also factor that into the timing of the rollout as well.
Wonderful. Thank you very much and congrats again I'll pass it on thanks.
Our next question is from Pavel <unk> with Raymond James. Please proceed.
Thanks for taking my question.
First of all can we get an update on your European.
Initiative.
What our deployments like in Germany, Switzerland, France, any other countries, where you are entering.
That is a great question Vince will take it.
And Europe has done a terrific job.
Setting us up.
There are several pieces to that we are very much in the.
Organizational space that has yielded some tremendous wins that we hope to be able to describe to you in the future.
We won't finalize anything until we have both.
The business opportunity as well as the execution plan is most of the financing plan.
All all coupled because we're going to execute things, we're only going to announce in sign and announce things that we can execute.
And we really very much look forward to telling you all about that in the future, but it's a tremendous opportunity Europe is ahead of the U S. In terms of this.
I will tell you that the.
The European conversations, we're having are responding very very well to the vault product offering.
The dual model, where we can deploy profitably ahead of the EV adoption curve is something that they understand the power of a very well.
Understood.
You mentioned.
Our focus on.
Getting into kind of underserved underpenetrated lower income.
Communities.
From a perspective of advertisers.
How is that conversation different given that by definition lower income communities are.
Of of less have less disposable income.
For perspective marketing campaigns that does that makes sense.
So.
There's two parts to that it's a great question, there's two components.
It's really our dual model.
I wanted to start by answering the EV infrastructure charging question and then the overlay of advertise on top of it.
The fact is for EV adoption until rollout the way everyone expects it to and the way policymakers wanted to it needs to be ubiquitous it needs to be available in the in the coastal high income communities it needs to be available in the inner cities it needs to be available everywhere and there.
There is a tremendous amount of capital and resources that are coming from the federal government that are focused on just that and our business model is uniquely positioned to do that because our business model is we don't make all of our money on electrons or electricity, we can deploy our network.
Ahead of actually chart look most of our revenue to date is.
Is from things other than selling electrons now we're turning that feature on in the second half of the year Youll see charge for charging as we referred to it start to contribute to our revenue going forward, but if we're being asked to deploy our network into a community that might be disadvantaged we can do so without overcharging those.
Constituents for electricity and.
And at the same time, we can make money for our stakeholders because of branch business.
Second half of that question, Thanks, Vince and thanks for the question. So when I think about our advertising business one of the great parts and strengths of our business that we reach our wide range of audiences of.
Consumers and if you look at the breadth.
Advertising categories on our platform.
From consumer packaged goods to entertainment and others weren't.
Not only a partner for companies who are marketing in electric vehicles. We're also in the business of helping connect consumer packaged goods brands like Coca Cola, Dol and others to the audiences that matter to them and.
And when you think about our network with a large portion sitting in front of places like stop and shops, and krogers Walgreens and others.
These are places that everybody shops millions of Americans go to these types of stores every week to buy the <unk>.
Products that they need to.
If you pull up their household and they really fall into the category of what I would deem an essential business. So is that one to many model of our advertising, reaching every shopper walking into a store.
Valuable consumers to many brands across our portfolio, but we can give you a really long answer that question because we're excited about the opportunity that that that that's a competitive advantage of our business model look advertisers want to reach consumers at all income levels.
Our charging business is available in markets, where those that are only making their money from elektron sales of electricity sales are not going to they're not going to prioritize those markets theyre not going to move into a market where the average cost today of an EV $65000 and they know that the population isn't buying those cars.
And they don't have the opportunity to charge them for five or six times the price of electricity. We can move into that same community. We can build the infrastructure out ahead of EV adoption.
The key to why this is the winning business model in EV charging we can build it out we can reach consumer packaged good customers with profitable advertising, we can put charging in those communities and we can do it in a way that the <unk>.
Let's see makers are trying to find the answer we are the answer to how to frame EV charging to those types of comments.
Okay.
Lastly, can I, just clarify gross margin guidance.
For the calendar year is what.
Hey, Steve in 25, 25% to 30%.
Okay. So given that it was negative in the first half of the year.
The math implies.
Something close to 50% in the second half.
Yeah.
While we had 33, 6% in the second quarter and as we've previously discussed the seasonality of our advertising industry is comparable to others, where it's low in the first quarter and ramp throughout the rest of the year. So for the full year. We can we continue to forecast 25% to 30%.
On a cash basis.
Yes, excluding depreciation excluding excluding depreciation okay got it thank you very much.
Our next question is from Matt Summerville with D. A Davidson. Please proceed.
Thanks couple of questions first then skew your comment around.
Potential.
Capital raising Francois.
He was there was very specific about seeking sources of I believe you referred to in his quote non dilutive capital is that still the case for the firm and you mentioned that you had a timeline I was hoping you could add a little specificity around what that timeline looks like and then I have a follow up.
Hey, Matt Great question I would tell you it's something that we're working on real time and have been since I landed and it was going on before me.
Look it's a transitional quarter for sure.
We will.
We seek feedback and.
The feedback has been.
Kind of you guys have a lot on your plate and it's certainly true, but this is an exceptional management team.
The talent is rising to the top of this organization, we've made some tremendous hires and.
The people that are interacting with us on the capital raising process.
We are watching that theyre underwriting that they're diligently not they're indicating to us that they are happy with what they're seeing.
In order to be at that point, where I could make that statement you would have a sense of where we are in the process and I'll leave it at that.
In terms of France last comments on non dilutive.
Look we all heard it.
I think that some of US maybe were as surprised as you were to hear that at the time because it was premature given where he was in that process.
I think the market is what it is.
And the market clearing price for a capital raise.
We will be what it is when we finished negotiating.
But I would tell you. This that we think that the opportunity ahead for this business is tremendous and that the capital availability. We're optimistic we'll be there and with capital. This is the winning business model with capital in this business model and the tailwind from policy.
All of the the <unk>.
Helping features along the way we are very optimistic.
I appreciate that color.
The other thing that I wanted to make sure sort of gets addressed if I did the math right and I apologize if I didn't.
But it's implied that there's a really big second half of new store additions I feel like it's almost double the $5 90, or so you did.
Again kind of back of the envelope in the first half of the year I feel like we had the same set up a year ago coming out of your second quarter, and we kind of know where that ended up so I'm wondering why we should feel that this year is different.
Yes.
It's a fair question I guess I can't say, it's a great question. It's a fair question, because I think you're pointing out.
That that execution could have been better than last year and I candidly would agree with you.
Look since the time, we since.
Since this time the time that business went public management team has been.
Simultaneously trying to execute this enormous opportunity ahead of them.
<unk>.
The the past stall pace.
Wasn't as consistent as we would hope it would be but I would point you to is 2022 included.
Management team that has built the model from the bottom up.
Laid out the quarterly progression met it in the first quarter beat it in the second quarter and is optimistic towards the second half of the year. We also provided guidance and you heard Stephen plots is words around that guidance that we think those ranges are still viable theres a lot of work to be done I would kind of overlay that with the <unk>.
Question around capital availability.
In order to get into that range, we need the capital to be on the terms and kind of the pace and timing we expect it to be.
But if you if you piece all that together you can see that we're confident of the road ahead.
Got it appreciate it thanks, Thank you for the color.
Our next question is from Mark Delaney with Goldman Sachs. Please proceed.
Yes, good afternoon, and thank you very much for taking the questions. The first one was on the updated capex guidance.
Leave you lowered it.
To 110 to 130, if I heard correctly.
I think it was perhaps 140 to 160 previously I have my numbers right, but but you kept the number of stations for Samsung. So maybe you could talk about where you're finding the savings on capex, even though the.
Plan on new new additions is unchanged.
Hey, Mark Thanks for the question.
It's a good one.
The financial planning team reports to true and drew do you want to take that sure I'm happy to thanks for the question Mark.
I think there are a couple of factors that we look at.
The Capex guidance when we've got to look at market conditions and as was alluded to earlier in the call.
Certainly.
The availability of power from the utilities puts a little bit different lens. When we think about the mix of AC or level two station versus DC fast Chargers.
So some of the Capex shift is going to be due to the balance or the shift in mix.
And therefore, I shouldn't say ship, but prioritization of the mix.
Between level two charging stations in our DC fast Chargers. So that's the largest contributor to the change in Capex I think we're also starting to see.
Our ability to garner better supply chain relationships, which are helping to improve our overall capex numbers.
Yeah.
Okay understood. That's helpful. I just wanted just thinking of the cash use I don't know if you can be.
That's helpful in terms of how to think about cash use.
Second half of the year or even in <unk>.
And any color on cash burn would be helpful.
Sure.
Look I think.
What we've been focusing on particularly since Vince joined the team and has helped to sort of bring this team together.
Really every dollar that we're spending we're trying to put against one of two of our key goals. Every dollar is going towards a revenue oriented goal <unk> stall in the ground or a station deployment goal and so as we think about capex spend and Steve Polaski alluded to this in his remarks as well.
We're getting more efficient on the Opex side, and we've got work to do and part of that work is around how we allocate capital and deploy capital and we want to make sure that we continue to do that in a way that we are generating revenue and focusing on installations in the most effective and efficient way as possible. So that's a lot of the work that we've been.
Doing to make sure that we're deploying capital effectively.
Okay understood.
One more for me.
If I could please I understand any any updates on the timing for a CEO search and CFO search that you can share.
Yes that sounds like one for me.
Hi, this is Vince.
The.
So we spent to levels that we had said.
Earlier call.
The board has hired Heidrick <unk> struggles with some international executive search firm the search is ongoing.
We are speaking with a number of high caliber individuals.
And we're not going to settle for anyone who is an exceptional because the rest of the management team that I showed on my last slide if you look at if you spend a little bit of time looking at the background of that team. It's an exceptional team and we do think bolt. It clearly has the winning strategy.
The company, obviously has a couple of issues directly in front of it.
The capital raises one in the cost structure is the other.
This team is very focused on it.
The team that's in place as a direct result of the need for change around those issues.
<unk>.
We are making changes that we expect will.
We will become more evident in future quarters and future results.
That is hand in hand, with finding the right CEO the right CEO as someone that has gotten too.
Is the opportunity continue the strategy coalesce this team and execute and it's an interesting role we have a number of people that would like at the best people want to see some of these issues resolved before we get more serious with them and the board wants to.
Make sure that we have a company that matches the caliber of the person that we wanted to happen.
Yeah. The other thing I would say to add on that is this board is very very active and very supportive across the board of this business, whether it's energy or technology or the media side programmatic ads.
Leadership.
Our chair is exceptionally involved and is very.
Granularly involved goal.
<unk> setting in cost cutting and operations side.
That's terrific of Benita is an expert on all of the media side and is helping make connections on the programmatic side.
This board is involved and supportive and is not going to hand. This company to someone that has a different perspective of how to execute the opportunity that so obviously right out.
Okay. Thank you I'll turn it over.
Our next question is.
As Craig Shere with Tuohy brothers.
Please proceed hi, Craig.
Hi, Thanks for taking the question.
So the second quarter, certainly works in line or better than expected relative to the outlook from the first quarter call for the third quarter.
As a bit light relative to the progression that we've shared before.
And that kind of works like it puts pressure on the fourth quarter to achieve the full year revenue outlook not no I understand fourth quarter is seasonally strong for advertising, but as you're charged for charging not really materially rolling out to the fourth quarter and once it is rolled out how broad based is it or can we.
And ongoing improvement in elektron revenue beyond fourth quarter.
So hey, Greg Great question. Thank you for it and thank you for the time working with us on this.
The business model is you really well understand its tool it has immediate component to it which we talked a little bit about the seasonality of that and the backend bill.
It has the electricity, which is a lever that we're beginning to pull in those electrons sales will show up in revenue I don't think that we have given guidance on what the forward charge for charge revenue will be.
We're more indicating that kind of everybody else's business model is available to us when we flip the switch.
Our business model of making money on the media side is not available to anyone that has he built the team or the technology or the MSA portfolio or the backlog or the installed base that we have.
On the on the revenue side, the backend weighting of the guidance that we're giving around media really that's the question.
How would you like to address that yes, no I appreciate it thanks, Craig we've talked a bit about this before and how our revenue business build sequentially throughout the year.
Which I think is mainly driven by how advertising spend increases sequentially quarter over quarter throughout the year.
So when I think about this is it really comes down to three.
Three key areas first for Volta.
More stores in the ground.
Means more impressions for our media sales team to monetize I think that's underscored by the announcement that we just paid out with the bolt immediate network crossing that threshold of over a billion impressions.
But they are now bringing out to the marketplace.
I think the second piece is that eds seasonality throughout the year, our advertisers are simply spending more of their investments, particularly around the holiday period.
Fourth quarter and the third piece for me and this is something that I've been very focused on is we're building a mature digital media business that is driving recurring revenue.
With advertisers and the reason why we're doing it because we are demonstrating favorable returns to these marketers to this form of advertising efficacy when theyre investing with Volta <unk>.
It's because they like the return profile that they're seeing in terms of metrics back to their bottom line and that's also driving our ability to grow our revenue as well.
Okay.
While we're on the subject of the media.
I was under the impression.
Get the exact figure.
A certain number of screens that kind of nationwide that's kind.
The.
Breaking point at which you kind of step more into the Big League and get more dollars for ever.
February .
Advertising campaign wrong.
Hum.
How close how real and how close are you to breaking into.
I don't know what to call it the big leagues.
Yes next year.
Yeah. It's a good question, Greg and we have talked about that before and the number that we have.
Hughes is kind of the lines at this time.
Screen Mark.
And so that is certainly a number that we will continue to march towards and surpass and so I think if you look at kind of the.
The numbers that we put in the deck that we sent out.
Which today is I believe around just over 5400 screens on our network layer on our guidance for full gear with the idea that there has.
Very close to a one two to one correlation between install and media screens. We generally have two screens per saw as you can.
You got to see where we looked at them.
By the end of the year.
But I think you think about that coupled with the 1 billion impressions mark per months.
The media network.
No it's interesting.
On the phone with the CMO just the other day. She was telling me how our company is going through a re prioritizing all of their marketing spend for the back half of the year really to focus on.
Companies that can deliver measurable results.
Cutting the nice to have and prioritizing the must haves.
This is what gets me most excited about where Volta now sits in the advertising ecosystem.
Ability to demonstrate.
Our return profile to marketers that they like.
I think you combine our scaling towards 10000, the $1 billion of impressions, which will continue to grow in this ability to prove out the efficacy of advertising is what.
We are in the big leased out at.
In water.
And so that's something we're really excited about.
Thank you.
We have reached the end of our question and answer session I would like to turn the conference back over to management for closing comments.
Okay.
Okay.
Yeah.
Thank you Sherri, we appreciate that and everyone. Thank you for your time all of the questions you've had.
So I've been really just genuinely impressed the exceptional work being done across both this business. We are extremely dedicated employees and it's clear that there is tremendous opportunity ahead for this company.
Now I'd like to conclude by thanking all of the employees that made this quarter what it was for their contributions to both the success for their steady leadership and work through this transition of our quarter.
And really all of our customers for their commitment.
We look forward to providing you future updates we have a lot to update you on and as we make progress we'll be talking to you in the future. So thank you everyone.
Thank you. This does conclude today's conference you may disconnect. Your lines at this time and thank you for your participation.
Okay.
Yes.
Yes.
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Okay.
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