Q3 2022 Volta Inc Earnings Call
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Yes.
Welcome to the Volta, Inc. Third quarter 2022 earnings call at this time, all participants will be in a listen only mode.
We will conduct a question and answer session.
I will now turn the call over to your host drew Lipke Scheurer, Chief Development Officer, Mr. Lip, Sir you may begin.
Good afternoon, and thank you for joining us on today's conference call to discuss <unk> third quarter financial results. This call is being broadcast over the web and can be accessed on the investors section of our website at investors <unk> close to charging dot com.
With me from both on today's call are Vince Cubbage interim CEO , Greg Hastings, Chief Commercial officer, and Stephen Philosophy, Chief Accounting Officer.
We would like to remind you that during this conference call management will be making forward looking statements, including statements regarding our expectations related to financial conditions.
Look for this sector and company and our expected investment in growth initiatives.
Please note. These forward looking statements are based on current expectations and assumptions, which are subject to risks and uncertainties.
<unk> reflect the company's views only as of today should not be relied upon as representative of our views as of any subsequent date and bolsa undertakes no obligation to revise or publicly release the results of any revision to these forward looking statements, considering new information or future events.
These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations.
For further discussion of the material risks and other important factors that could affect our financial results. Please refer to the company's filings with the SEC, including its annual report on Form 10-K for the year ended December 31, 2021, and its subsequent quarterly reports on Form 10-Q.
In addition, during today's call the company will discuss non-GAAP financial measures, which we 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 voltage press release issued this afternoon and its filings with the SEC each of which is posted on <unk> website.
With that I will turn the call over to Vince Cubbage, both as interim CEO .
Hey, Thank you Mario and Hello, everyone and thank you for joining us today to review our company's third quarter results.
<unk> completed four quarters as a public company and over this period has evolved tremendously.
Volta was certainly one of the first companies to understand that to sustain at least pursue the enormous opportunity as public EV charging.
One would have to solve the issue is how to generate revenue before there was widespread adoption of electric vehicles.
Our founder and talented employees solve this problem by creating bolt is proprietary and beautifully designed dual media and public EV charging stations, along with a robust portfolio of intellectual property rights set bolted in a class by itself.
Today's Ulta has over 3000 Chargers in 31 states and has been recognized as having the country's most innovative public charging strategy.
Generating revenue and economic benefits far beyond just the intermittent self electrons to early adopting EV driving community.
An understandable desire to build out a national charging network all at once and to do it on our own let our prior management into a high cost structure that was out of step with both is limited capital and unnecessary given the ability to leverage other public and private resources.
And a significant course corrections that is well underway, both as taking the necessary steps to reduce our cost structure improve our operations professional lines, our organization and bring our head count back to rational levels specifically.
Specifically in the last few months, we realigned our organization to become more efficient, which enabled us to reduce our U S workforce by 54%.
This change alone resulted in a 33% reduction in our cash labor expense.
And we didn't just makes the work force smaller we manage to make it better by significantly upgrading our talent in a number of key areas.
For instance, our new finance and accounting team as rework their department to significantly reduce the use of expensive outside consultants and contract employees by simultaneously addressing the floor financial control material weaknesses and related control deficiencies.
<unk> in our prior management or.
Our teams worked not only improved processes procedures and systems across the company, but also eliminated approximately $15 million in annual unnecessary spending from department.
These are just a few examples of the changes in the cost side of our business. The financial benefits of these changes are ahead of us as the structural costs. We were saddled with are unwound in the efforts across the company.
To do more with less or implemented.
As of today, we expect that the cost reduction measures implemented have already reduced run rate cash expenses by over $35 million per year on an annualized basis.
Management is continuing to aggressively implement additional cost reduction measures across all aspects of the business, which are not currently reflected in these numbers.
And while these and future planned cost savings initiatives are certainly meaningful we did not expect or believe until impede our progress on improving our core business are accomplishing our internal and external priorities.
A good example of this resiliency is our revenue this quarter, despite the challenging macro environment and reductions in workforce both of us still able to grow its overall revenue to $14 4 million or 69% increase year over year and achieved record media revenue of $12 $2 million.
So up 66% year over year.
This is a direct result of our media networks front of store effectiveness are exceptional direct and programmatic media sales team our upgraded internal marketing team and most importantly, the support of our valued national advertisers.
This quarter, we also continued our industry, leading pace and installing new charging stations, adding 56, new sites in the quarter, bringing our total sites to 983 in 31 states.
And installing an additional 173 charging stores ending the quarter with an installed base of $3 93 stores.
45% year over year.
While our pace of installation is still one of the best in the industry. This quarter saw fewer total stalled and stalled due to management's decision to preserve our very limited capital during our ongoing capital raising process in response to current market conditions and in part due to the attractive investment tax credits, which would become available.
At the beginning of next year under the inflation reduction.
One impact of that decision is a reduction in network development activity and corresponding revenue in the quarter.
Network development revenue for Q3 was $1 9 million.
Versus $3 6 million in the prior quarter, which offset the increase in record media revenue in Q3.
Given the difficult capital constraints that we face both who will continue to slow its installation cadence until capital, including focus of the funds to the myriad of federal programs previously announced is more readily available in.
In the meantime, Volta will continue to support its media business and serve our excellent brand partners, who value our unique off.
Going forward Volta has initiated discussions with our site partners to develop ways to accelerate network development, while also addressing the increasing costs of installing infrastructure.
One example of these discussions is prioritizing a site partners installations, where they are willing to complete the permitting engineering and site prep work necessary in advance essentially make ready.
Volta out of the construction process and.
And speeding installations.
We are also realigned and significantly expanded our policy team to better focus on identifying and pursuing public private partnerships that align with the $7 5 billion and public crafts that federal government has allocated toward public EV charging infrastructure build out under the bipartisan infrastructure law.
But it isn't just asking for money and applying for Navient Committee grants. However.
We did with the city of Hoboken, we have a much higher value add approach offering to work with local state and federal governments and Ngos to plan and optimize their public projects using our proprietary planning to predict D.
Our AI driven predictive planning tool can ensure that all drivers and all commodities have access to convenient and safe public charging something that is core to our charging for all initiatives.
And our media model provides disadvantaged communities by serving as a public communications platform for delivering essential messaging like emergency alerts, whether alerts and information about community events.
Both the currently has approximately 4000 psi installs that we believe may aligned with the objectives of these many many government programs.
In short, we believe that Volta has the absolute right solution at the absolute right moment in time for this inevitable transition and evolution.
We're not just a network of Chargers were a powerful dual energy and media network delivering charging for oil we connects drivers to clean safe and accessible charging brands to customers and partners to opportunity we remain as excited as ever about the opportunity in front of us and the prospects for both this business and.
Working nonstop to address our near term challenges and with that I'll hand, it to Brent to review our commercial operations.
Thanks, Vince both those commercial organization made tremendous progress in the third quarter as demonstrated by the 6% to 9% year over year revenue growth defense just shared.
One example, which you may have seen this AD exchanger recently named Volta, The best Commerce Media technology for our 2021 holiday campaign with Coca Cola demonstrating the power of the bolt on media network to drive measurable sales results for leading brands.
And we continue to invest in our digital media capabilities, including launching <unk> creative support and they're receiving recognition for using our nationwide media networks to educate drivers on the benefits of electric vehicles, and remind you boaters to cast their ballot and the mid term elections.
On the government and policy front, both have recently highlighted the power of our media model to fund critical EV charging in disadvantaged communities with our collaboration with Tucson Electric power, which will bring a EV chargers to communities in Tucson, Arizona with a high percentage of renters.
Sharing this differentiated message with key audiences, including the recent National Governors Association Conference, where Vince took the stage to explain the benefits of voltage model for cities.
The entities.
I'm excited to provide additional updates with you all today and before I go any further I'd like to address how we're thinking about both as revenue in the context of the market conditions. Many other advertising power businesses have discussed on recent earnings calls.
The World Federation of advertisers and media analyst firm Ubiquity recently surveyed marketers from the largest multinational brands to understand how current economic conditions are impacting advertising budgets and the results show that three quarters of these companies are actively scrutinizing.
Marketing spend in advertising leaders must justify every investment.
Under conditions like these marketers prioritize digital media investments that deliver measurable business results.
The bolt on media networks sits squarely at the intersection of where budgets are being reallocated setting us up better than most to protect against economic uncertainty.
Both are constructed dual EV charging immediate screens in prime locations steps away from popular grocery shopping and entertainment venues by being immediately beside the front doors of those locations are media network delivers the last message of shopper sees on their way to.
Grab a carton, providing advertisers a critical opportunity to directly influenced the items that end up on that shoppers list.
In Bolton suite of sophisticated measurement tools allows us to clearly demonstrate the revenue generating power of these desirable locations.
Kinsey estimates commerce media, otherwise known as retail media this new category of advertising closes the loop between media impressions and commerce transactions could represent as much as $100 billion.
AD spending by 2026.
The volt team. However is wasting no time, capturing growing retail media budgets today bye.
By improving the sales driving potential of our media network, which we've highlighted in previous quarters.
Finally, we are currently in the middle of the Q4 holiday advertising season.
<unk> of the state of the economy. This is a critical time for brands to promote their products and services.
Both of US winning holiday campaigns with brand name advertisers like Coca Cola seeking to preserve and grow market share as consumers consider trading down for more affordable options.
<unk> of our media network outside of grocery stores and pharmacies also allows volta to wind campaigns for these retailers private label brands Nature's promise, which is owned by a whole delhaize USA is one such example.
Shoppers look to make their dollars go even further this holiday season is more affordable store brands are attracted to Bolton media network as the optimal canvas to promote their cost savings potential.
While volatility media network is set up better than most to protect against economic uncertainty our business is not immune to macroeconomic forces.
One such factor is the automotive industry's ongoing supply chain constraints.
Without available inventory many auto manufacturers are postponing vehicle launch campaigns, which often account for the largest advertising budgets.
Despite this and other market forces both those media network is yielding positive results in.
In the third quarter, our media revenue grew 66% year over year and became further diversify across consumer packaged goods brands running retail media campaigns entertainment clients and financial services brands.
Exemplary of this strategy is the fact that our consumer packaged goods or CPG business grew 135% year over year.
We welcomed many notable first time advertisers in the third quarter, including Google Neiman, Marcus Fiji water Peacock and capital one <unk>.
79% of Q3 media revenue was from repeat customers, including cheap target Disney Bank of America, and Coca Cola, demonstrating the ongoing value of our media platform delivers to leading brands.
Now I'd like to move onto our charging solutions business. It reemphasize, what Vince discussed regarding volt is focused on capturing federal grants.
<unk> Harrison administration, because made installing EV charging infrastructure, along highways and within cities a key priority of the bipartisan infrastructure law in inflation reduction Act and under this legislation equal distribution of critical charging infrastructure across all communities.
Of the utmost importance and so.
And the federal government has announced its justice 40 goal, which seeks to ensure that 40% of the overall benefits of these bills flow to disadvantaged communities.
<unk> media powered model generates revenue regardless of how many evs are charged allowing us to construct chargers in disadvantaged communities, where EDI ownership, maybe lagging and making Volta, particularly competitive for these federal grants.
Both are dedicated charging solutions team continues to use our award winning predict EV infrastructure planning software to evaluate which of the nearly 8000 EV stalls in our signed construction and technical evaluation pipeline that satisfy the government's requirements.
By utilizing multiple data sources, including local economic and equity data aligned with the administration Justice 40 initiatives predict television.
Densify locations that will simultaneously be competitive for community government grants.
And valuable for both of Us media business.
This analytical review of our installation pipeline will allow <unk> to continue expanding our network in the most capital effective manner possible in the years ahead.
In closing I want to reiterate the measurable value focus model brings to all of our stakeholders drivers advertisers commercial properties retailers and municipalities. While we continue to monitor macroeconomic conditions, including the impact on advertising spending by marketers.
We believe Volta is set up better than most.
<unk> placement of voltage charging stations.
And media screens near the front doors of businesses in our roster of digital native media capabilities enable Volta to continue attracting new customers and command the larger digital advertising budgets.
With that I'd like to pass it over to Steven Belote ski both as Chief Accounting officer to comment on our Q3 financial results.
Thanks, Brad.
Turning to our Q3 financial results for the third quarter Q3 revenue grew 69% year over year to $14 4 million.
Q3 media revenue grew 9% sequentially and 66% year over year to $12 2 million.
We ended the quarter with an installed base of 983 sites, adding 56, new sites in the quarter.
Both of the installed base of stores was 3093 on September 32022, up 6% quarter over quarter, and 45% year over year. The company installed an incremental 173 stores during Q3.
For the third quarter, we exited the quarter with 1378 sites and 3930 stores in our assigned construction pipeline.
Our gross margin excluding station depreciation for the quarter was 34% as compared to 32, 5% gross margin in Q3 of 2021, we continue to forecast a 25% to 30% gross margin for the full year.
Including stock based compensation and onetime expenses SG&A was $40.0 million for the third quarter compared to $55 7 million in the prior year period, we have made significant improvements to our SG&A levels and continue to work to reduce our recurring spend.
Adjusted EBITDA was $30 9 million loss for the third quarter 2022.
2022, as compared to a $22 1 million loss in the third quarter of 2021 net loss was $42 5 million for the third quarter compared to a net loss of $69 7 million in the prior year period.
The company had a cash and marketable securities balance of $15 6 million as of September 32022.
Our anticipation for the full year 2022, Capex is dependent on the company's ability to raise capital.
Our weighted average shares outstanding for the third quarter were approximately $169 million.
And with that we would like to open the line for Q&A.
Thank you if you'd like to ask a question. Please press star one on your telephone keypad now.
You will be placed into the queue and the order receipt.
Please be prepared to ask your question when prompted.
Once again, if you have a question. Please press star one on your phone now.
Your first question today comes from Matt Summerville from D. A Davidson.
Yeah.
Thanks, So Richard couple.
Couple of questions.
A couple of things, we didn't hear about Tonight, I'd love to get an update.
Where you're at with rolling out charge for charge I guess, if I could.
Remember back to prior calls the fault was theirs.
Going to go through kind of a pilot process, maybe in the first half of the year and coming into the second half of the year ready to talk about sort of the game plan for that revenue stream and I guess from that regard.
It sort of struck me a little bit that you're charging network operations revenue was essentially negligible in the quarter. So maybe start there and then I have a follow up.
Hey, guys. Thanks for the question Derek do you want to cover that yeah, great Great question Max So high.
The high level.
Charter was charged on our DC Newark was deployed in Q2 and towards Q3 and.
As a result, 80% of our DC network currently those charged for charge.
That probably explains why the increase do you see is so small.
On the financial statement line item within charging operations, we do have our.
<unk> best credits been a monotonic as well too so.
Does depend upon when those credits and monetize that provides fluctuation of the choice of a charge, but we are happy with the success.
On our tortured charged with DC network and continue to track the utilization and look forward to presenting metrics as we as we grow that segment of the business.
And then.
Again, something that wasn't mentioned.
What's sort of the update.
On Europe .
We haven't heard much about that what's the status of the business. There. What are you doing head count wise are you still investing there are you pulling back just maybe dig in a little more detail where you are at in Europe , where your site count installed base whatever metrics you can kind of talk about what youre doing strategically right. There as we sit here today. Thank you.
Yeah, maybe I'll take a shot at that Europe is a very interesting market.
I think most everyone knows that we've deployed a team.
We've kind of started the process there that were well up the curve on in the U S.
The reception in Europe is very good bolt is looked at just as attractive as it is here.
Have a very good team on the ground they are busy lining up potential counterparties.
To a site partners.
And <unk> been very successful in generating interest in kind of early stage indications.
From an overall strategic perspective, we have not yet initiated a significant build out in Europe in part because of capital availability and in part because of the strong desire to have.
The business systems, and organizational infrastructure well in place ahead of launching into a aggressive.
Capex number.
We expect to look at as part of our year end planning, where we're evaluating every aspect of it we like it it's quite interesting that you should be able to update you in the future.
Great. Thank you guys.
And our next question will come from Mark Delaney with Goldman Sachs.
Yes. Good afternoon. Thank you very much for taking the questions. The first was on potential capital raising could you. Please clarify if you've done any since the end of the calendar third quarter. So any capital raising has potentially been done quarter to date and.
Maybe talk a little bit around what potential options there might be for the company to raise capital and how much you think you may need to raise.
Hey, Mark Thanks for question.
It's been a coordinating all of the efforts in that entire area through do you want to take that sure. Thanks Marc.
As you know and as I think everyone knows it's the capital markets and the markets macroeconomic conditions have been challenging over the last couple of months. We continue to have active discussions with a number of parties about providing both of them with the appropriate both quantum and structure of financing to help drive our business forward and continue to.
Funding growth.
We will be providing you with an update as soon as we know something I think as we become fond of saying you'll be the second person to know we will be the first.
But we continue to be encouraged by the conversations that we're having and look forward to talking about that more shortly.
Okay understood and then yeah.
You outlined on the call today, a number of cost reduction steps. The company has taken maybe you could clarify.
What that means in terms of your current cash usage rate either per month or per quarter, where does it currently stands.
Yes, Hey, Mark without we're not giving the granularity cash cash usage on a monthly basis, but I would tell you is.
We're trading as a precious commodity we are managing the business on both the cash basis, and a capex basis very carefully.
We are.
We're in an interesting position because there are many different stakeholders, who very much want to see it succeed and there are people in our organization and our site partner network kind of across the business that are.
Collaborating with us to think about how we can expand our network in a more capital.
Friendly way less capital intensive way.
Yeah, I think that's what I would tell you is.
The process is still underway, it's very much linked to our capital raising process and as drew said well.
We will update the market as soon as all of that.
<unk>.
So one last one from me if I could please you predict EV was mentioned today and also I think on your last earnings call I was one of the new focal areas and potential.
Our revenue generating opportunities.
More examples you can give us on the success youre, having with that and what it may mean for the company going forward. Thank you.
Yes, sure predicted visas.
Interesting.
Part of the business, it's a precursor to a network build out, particularly when other people are allocating capital in the Si partners is trying to get us to put charges in front of their store, it's a very one to one relationship.
Government agencies trying to figure out how to allocate seven $5 billion across 70 different kind of big cities 50 States a lot of different jurisdictions.
More difficult task, we have been extremely active on that front.
And we have been meeting those conversations with them.
Hum.
The suggestion and the tool to go with it to properly plan for the capital allocation and the build out using something more than a marketing material of a market participant or predict TV software is agnostic, whether it's our equipment that goes in the ground or someone else's, it's using AI and machine learning.
And forms a policymaker or city leader, where the charter should go and.
And then what's really.
Tremendously to our benefit is that once those sites have been identified we can lease squares are math on top of it and show a policymaker.
Exactly where we already have sites and our MSA contracted backlog, that's a key differentiating factor of of us versus all the other charters who are competing for this money because the people who are kind of organizing their business to go after the money haven't built the backlog of sites that Volta.
It's one of the things bolted did very right very early.
Instead of going after parking lot by parking lot.
Business is Oregon organized around going after a whole portfolios of properties through.
National property on this rates and contract and deliver long term contracts under Msas. So when we sit down the policymaker, we have the tools. The Telemark should go and then we have the inventory at sites, where they can go and their capital can enable it and I.
I guess.
The other piece that you didn't ask about predicting.
The charter itself has an economic benefit far beyond just charging an EV car.
The other part of the volt story, which is why it's so compelling.
Yes, I mean, I think just anecdotally mark the only thing I would add to that if I were in Pittsburgh at a government event. We're been spoke on a panel and mini Canada National Governors Association event around energy transmission infrastructure in Greenville, South Carolina, and predict television was one of the sort of pillars of the conversation that we had in the research.
We got to the opportunity to work with us using predict DB.
As the as the.
The entry point to help cities or municipalities understand.
Infrastructure deployment.
It resonated very strongly in Hoboken again remains a.
Example of that.
Thanks Mark.
You can tell how much we like this part of the business because we can't stop talking about it but the other part about productivity that's interesting is that.
That's the money that's coming from the federal government to the state has a process associated with it and and plans and approval apply as an allocation of capital by market participants and reimbursement of capital all of that's a ways off.
One of the interesting parts not predict TD as it is eligible for the planning money and the planning money can be allocated by the states and by the local governments on an expedited basis.
We stand in a position where it's a focus of a lot of our conversations right now where those jurisdictions can can hire us to use predictive today on a fee for service basis.
And to help them make the plan to allocate the capital that's months and quarters off so.
It's an early tool as well as a very powerful tool.
Thank you.
And our next question will come from Andres Sheppard with Cantor Fitzgerald.
Sure.
Hello, everyone. Good afternoon. Thanks for taking my question and congrats on another quarter.
I wanted to maybe follow up on Mark's question regards to the capital raising needs right. So in the past you had mentioned the need to raise that $250 million to $300 million of non dilutive capital now I know you did the 100 $150 million of shares via the ATM.
Previously, but at these levels.
It might not be the best idea to issue additional shares and so as we stand now with about $16 million in cash as of the end of the quarter is the expectation isn't the expedition to raise capital in Q4 and in that range and ideally non dilutive.
Thanks.
Thanks, Andreas I appreciate the question. So I think just quick comment on the ATM program I think it's not just bolt I think you've seen a number of companies in our industry and in general industries, particularly feedback companies announced ATM programs over the last four to six months.
Good housekeeping.
That's fair.
An insurance policy of sorts on an as needed basis.
We view the ATM program really is sort of a good housekeeping procedure more than I think where you were headed with it.
Our solution or a full solution to the due to the capital needs going forward.
With regard to the with regard to capital required to continue to fund our business and grow our business.
Look we are in the market talking to a number of different investors.
As you can probably imagine every investor has his or her own opinion about structure.
The nature of the dilution or lack thereof in any capital structure.
We're listening and talking actively to all interested parties. We are open to all structures that makes sense. The primary goal of Volta is to raise the money necessary to continue to deploy our chargers and continue to build out our program.
Brant alluded to into their in their remarks, so we.
We hope that it.
Again.
In the near term that we can come back to you guys can tell you more about it.
Okay. Thanks fair enough and maybe as a quick follow up.
Just help me understand a little bit better. So on slide six you have your deployment pipeline and also your technical evaluation I guess just sorry. If this is silly, but just help me understand.
In terms of the pipeline.
What time period is that encompassing in other words, when do you foresee making deploying the charges that are in the pipeline and converting them into actually installed.
Great Great question, and maybe I'll answer your question with a question Andre.
Any way to utilities, who can get them to move faster.
Okay.
We can take that conversation offline, but I'll see what I can do.
We greatly appreciate the help on that side.
Look it's a great question just to maybe level set from a definitional perspective, because we do talk about three turns on slide six we talk about our installed base, which is obviously the network of charters that we have in the ground that are operational we talked about the deployment pipeline. Those are the number of stores that are in what we call the.
Construction phase of the development phase so we've chosen the location the site. The site order agreements are signed we're in somewhere between permitting engineering and commissioning of the stations and then the technical evaluation installed those are a little bit higher up in the pipeline. They are all signed under our pursuit.
To an MSA agreement, but we are in various stages of what we call qualification visits and early construction drawings to identify.
Where the power requirements are what the power availability is either at the property because as you know with our level two Chargers, we typically pull from house power and with DC fast Chargers, we have to have a direct connection to the grid. So evaluating the power. We're also looking at the economics of each of those sites as well to make sure that they have.
The appropriate payback periods and the economic benefits that we seek and once we get through that technical evaluation pipeline. Those stations will then move into our a good portion of those patients will move into the deployment pipeline from a timeline perspective.
It can really vary dramatically on an H J by H J basis.
Depends on permitting it depends on whether there are a number of factors that can influence it but we can see the full pipeline extend anywhere between six and 12 months, depending on the number of risk factors and again just to reiterate part of the reason we're out raising capital.
Predictable availability of capital will also help accelerate or move some of those patients through both the technical evaluation and disappointments pipeline as well.
Wonderful Thanks, Joe very thorough I appreciate it I'll pass it on thank you.
Thanks.
Okay.
And our next question will come from Pavel <unk> from Raymond James.
Yet another guy who asks about the balance sheet with the with the $60 million of cash on the balance sheet, which is roughly half a quarter of <unk>.
G&A.
Is there in.
Backup plan to provide any kind of bridge financing or.
Just a small amount of cash to get.
An extra several months of corporate cost funding your primary financing plans end up being delayed into next year.
Well.
First of all it wouldn't be a conversation without even left you mentioned the balance sheet. So thank you very much I appreciate it.
But of course look we're talking to all kidding aside we are talking to.
Many different capital providers, many different sources of potential capital and as I mentioned, a moment ago in my remarks, we are looking at all possible structures.
We are not necessarily thinking about this as a one and done type of situations. So.
Your your remarks are parents.
Okay.
How much runway in your kind of internal planning do you have based on the cash balance as of September 30th.
At this point.
We're going to comment on.
I think our we're looking at this business over the long term, we're putting both in the best position possible to continue to execute against its plan service the relationships that we've got pursuant to the MSA partners that we have developed those relationships that we are developing our plan is to be a leading provider of EV charging.
The infrastructure.
For a long time, so we continue to reduce costs and working with those efforts as well. So this is an ongoing effort.
This is an ongoing effort as well so we believe that this is we're here for the long term.
Okay.
Im looking at your.
Kind of an accounting question looking at your current liabilities.
There was a sea of term loan payable and then some just standard working capital items is any of that due.
Before let's say December 31.
Other than in the ordinary course now.
Term loans are public docket.
Okay.
Okay. So thats 2023 story.
Correct.
Okay got it.
More about that as we continue to explore capital options, but yes, we're fine for now.
Understood and then just a quick question on on the demand side of the equation you mentioned.
Macro add slowdown that's.
Point is very well taken.
Are there certain kinds of advertisers that are more resilient consumer staples.
Anything along those lines that are not affected by for example, the supply conditions in the automotive value chain.
It's Fran I'll jump in on that thanks for the question.
So we're very focused on continuing to grow rapidly in particular in our media business.
On an absolute basis, you saw the quarter end.
And while there are macroeconomic kind of areas that we're watching in the fourth quarter. I mean this is peak season for many advertisers who are focused on.
Under our holiday campaigns.
So I think we're all familiar with some of the headwinds in the automotive sector for example.
Look into retail and as you look at brands around the holiday season consumer packaged goods brands for example are very resilient.
Just talking with.
CMO very recently and he was telling me how.
During these times of uncertainty.
Focus goes on the prioritization of what marketers know works.
They know that they can also measure and I'm incredibly proud of what the volt immediate achieved has built over the past year, which is a digital advertising platform, where advertisers can reach consumers in a real world minutes before they make a purchase decision about product a per product fee and our ability.
To demonstrate the effectiveness of that advertising back to the marketer.
Yes.
Combination of ingredients, but we feel continues to set up volta better than most particularly during times when marketers may be questioning.
Their immediate priorities and I would also point to some of the research that I referenced briefly on the call. If you look at the areas right now of high growth in advertising.
Digital out of home and retail media, our bold forecast it to be high growth areas and advertising and those are two areas, where volta plays exceptionally well.
That's how we're thinking about the business, particularly heading into the holiday season.
Alright, Thank you very much guys.
Yeah.
And our next question will come from Craig here with Tuohy brothers.
Good afternoon.
I wanted to make sure I understand the answer on this question.
The 96 million Seaworld.
Some like it.
Physical capital in the ground.
Include capitalized costs for permitting engineering and other before physical equipment deployment.
So first I want to make sure I have that right and to a degree that's right.
That would imply that youre not necessarily on the cost of finishing up a sizable chunk of salt or just the minimal incremental capital.
That's fair.
Greg I'm, sorry, you broke up a little bit can you repeat the beginning part of your converts to your question again, it was hard to hear I'm sorry.
No problem so.
On your slides the $96 million of CEVA.
Uh huh.
It sounds from the discussion.
That's not necessarily.
Partially installed physical equipment on the ground, but could be capitalized permitting engineering and other costs.
As such the.
And then I'm trying to get a sense of how close are you in terms of just a little bit of additional capital to having a slew of additional revenue generating stalls.
And if you're capitalizing a lot of.
Cost.
Our physical equipment than maybe it would be a little more difficult to get your next.
Whatever 500 installs.
Gary This is Gary speaking sorry.
It's a great question so within the construction progress balance you are correct. Those are actual current available inventory.
Which we're looking to monetize or.
Our installed in several different separate ways currently.
But your question is right, we do look at it.
On our balance sheet as well as what the installation capitals required to install and satisfy our development pipeline.
Each site is really unique in terms of how installation occurs.
We applaud what thats still deploy their pipeline looks like.
It can vary but we're currently working with.
To identify the most economically advantaged sites to deploy.
Generate revenues on those stations available.
Yeah.
Okay.
Just to sum it up in that $96 million.
There's intangible capitalized costs that are physical equipment on the ground.
Okay.
Got it and currently right now Thats a tangible.
Adams discharged stations and digital media screens.
Right above on that slide that our stations in the ground.
So you have $96 million of physical equipment.
<unk>.
Currently.
Yes.
And operation and revenue producers.
Lot of equipment, that's on the cost.
Potentially getting over the hump and being revenue producers.
Yes amounts include some engineering Adrian Paz foreign fees as you can.
Spec on the install side.
Costs that are.
They are currently being deployed to.
To install a station to be able to monetize.
The screens are charging.
Alright and.
I just wanted to get a better sense that there was a really big drawdown of cash in the quarter and I'm trying to get a sense of.
If there were some one time events and the like severance costs to cut your ongoing overhead or something.
It seemed like there was.
A very large draw down from the second quarter cash balance in the third quarter.
Yeah, Great question, Bob and pushback on the construction progress flights, we had several inventory payments required for suppliers that hit in the quarter and that's what's really driving up the balance from the 67 to <unk> 95.
Gotcha. So so that probably season my first question, though all those inventory payments kind of fill and you'll see what possessions.
Do have some assets on the ground that are producing with a little help you can kind of get that over the home.
Correct, yes.
Great. Thank you.
Yeah.
Yeah.
We'll take a follow up question from Adrienne Shepard with Cantor Fitzgerald.
Yeah.
Hey, guys, sorry me again.
I wanted to maybe I don't think this was asked but I just wanted to get an opportunity to see how the partnership with Walgreens.
Progressing I assume some of the installs that are.
Do you have in the pipeline for the next quarter and for 2023 I presume some of those will be.
<unk> of that partnership with Walgreens, I guess, what im really trying to get at is.
As you look forward to the installation of new Chargers are you going to be almost exclusively prioritizing the DC fast Chargers as opposed to the level two or is it still going to be some sort of mix. Thanks Scott.
Yes, it's Brad Thanks for the question.
The short answer to your question is yes, we are continuing to focus on our partnership with Walgreens.
Leave that that will.
Pick up pace as we enter into 2023, I think it's no secret that anyone who follows our sector and obviously some of the challenges.
That we're all experiencing around DC fast charging into deployment.
Some of the supply chain strengths with Transformers, and given some of the backlogs that utilities have that's certainly playing a role into that partnership given the fact that it is so heavily.
Focused on DC fast I know the team is working very hard.
On mitigating those areas however.
In some cases, there's only so much that we can do from our side.
<unk> itself.
I will leave it there for now.
Got it okay. Thanks very much.
Okay.
Yeah.
This concludes our question and answer session I would like to turn the call back to Mr. <unk> for closing remarks.
Thank you very much and again, thank you to everyone who joined the call today for listening in.
As you can hear we continue to be incredibly excited and enthusiastic about at Bolsa and appreciate everyone's support and look forward to talk to you. All soon thank you very much.
Yeah.
And this concludes today's conference call. Thank you for it.
The host has ended this call goodbye.