Q4 2023 Blink Charging Co Earnings Call

Good day, ladies and gentlemen, and welcome to the Blinked charging company fourth quarter and year end 2023 earnings conference call.

Operator: Good morning, ladies and gentlemen, and welcome to the Blink Charging Company fourth quarter and year-end 2023 earnings conference. At this time, all participants have been placed in a listen-only mode, and the floor will be open for questions and comments following the presentation. It is now my pleasure to turn the floor over to your host, Vitalie Stelea, Vice President of Investor Relations. Sir, the floor is yours.

At this time, all participants have been placed on a listen only mode on.

And the floor will be opened for questions and comments following the presentation.

It is now my pleasure to turn the floor over to your host fatalities studying our vice president of Investor Relations, Sir the floor is yours.

Thank you Ali.

Vitalie Stelea: Thank you, Ollie. Welcome to Blink's fourth quarter 2023 earnings call. On this call today, we have Brendan Jones, President and Chief Executive Officer, and Michael Rama, Chief Financial Officer. Today's discussions will include non-GAAP references. These are reconciled to the most comparable U.S. GAAP measures in the appendix of our earnings data. You may find this deck, along with the rest of our earnings materials and other important content, on Blink's Investor Relations website. Today's discussions may also include forward-looking statements about our expectations, but actual results may differ from those stated.

Welcome to <unk> fourth quarter 2023 earnings call.

On this call today, we have Brendan Jones, President and Chief Executive Officer, and Michael Rama Chief Financial Officer.

Today's discussion will include non-GAAP references these are reconciled to the most comparable U S. GAAP measures in the appendix of our earnings deck.

You may find the deck along with the rest of our earnings materials. Another important content on Blake's Investor Relations website.

Today's discussion May also include forward looking statements about our expectations actual results may differ from those stated the most significant factors that could cause actual results to differ are included on page two of the fourth quarter 2023 earnings that are.

Vitalie Stelea: The most significant factors that could cause actual results to differ are included on page two of the fourth quarter 2023 earnings deck. Unless otherwise noted, all comparisons are year over year. Now regarding the investor relations calendar, Blink will be participating in taking one-on-one investor meetings at a few upcoming conferences. The first one will be the Roth MKM Investor Conference in Dana Point, California, on the 17th of March.

Unless otherwise noted all comparisons are year over year.

Now regarding the Investor Relations calendar.

Blaine will be participating in the in taking in taking one on one investor meetings.

The upcoming conferences.

The first one will be the Roth M. P M Investor Conference in Dana point, California on the 17th of March.

Vitalie Stelea: The second one will be the JPMorgan Energy Conference on the 17th of June in New York City. Please follow our announcements and the Investor Relations website for additional events that we will organize in the future. I will turn the call now over to Brendan Jones, President and CEO of Blink Charging.

The second one will be J P. Morgan Energy conference on the 17th of June in New York City.

Please fall our announcements and the Investor Relations website for additional events that we will book in the future.

Okay.

I will turn the call now over to Brendan Jones, President and CEO of blank charging.

Go ahead Brendan.

Thanks, Vitale and good afternoon, everyone.

Brendan S. Jones: Thanks, Vitalie. And good afternoon, everyone. Thank you for joining us on this call today. Well, to sum it up, 2023 was a historic year for Blink. It was marked by significant achievements and exponential growth. Now, as some of you know, Blink over the past four years has successfully integrated six strategic acquisitions. And in 2023, we began to demonstrate the powerful consolidated potential of Blink Enterprises. Now, not only did we leverage our advanced product portfolio and service, but we also began to see tangible benefits from our newly enhanced network launched in 2022. Organizationally, we are emphasizing a culture of continuous improvement and have begun to observe synergies and efficiencies that positively impacted 2023 results across all of our businesses. Operationally, we streamlined our sales, engineering, logistics, and distribution, while expanding our manufacturing footprint near Washington, D.C., to capitalize on additional synergies and opportunities for cost optimization. And a little more on that later in this presentation. Now, if we move to the numbers as illustrated on slides 4 and 5, our total revenues were $140.6 million, marking an impressive year-over-year growth of 130% and a remarkable seven-fold increase compared to 2020 revenues. Now, let's talk about that again.

Thank you for joining us on this call today, well to sum it up too.

2023 was a historic year for blank.

It was marked by significant achievements and exponential growth.

Now as some of you know blink over the past four years has successfully integrated six strategic acquisitions.

And in 'twenty to 'twenty, three we began to demonstrate the powerful consolidated potential of the blank enterprises now not only did we leveraged our advanced product portfolio and services, but we also began to see tangible benefits from our newly enhanced network launch.

In 2020 'twenty two organizationally, we are emphasizing a culture of continuous improvement and have begun to observe synergies and efficiencies that positively impacted 20 twenty-three results across all of our businesses.

Operationally, we streamlined our sales engineering logistics and distribution, while expanding our manufacturing footprint near Washington D. C to capitalize on additional synergies and opportunities for cost optimization and a little more on that later.

In this presentation now if we move to the numbers as illustrated on slides four and five our total revenues were 140.6.

$6 million, marking an impressive year over year growth of 130% and a remarkable seven fold increase compared to 2020 'twenty revenues now, let's let's let's talk about that again seven fold increase in just two years.

Brendan S. Jones: Seven-fold increase in just two years. Our fourth quarter 2023 revenues were a Q4 record of $42.7 million, representing a year-over-year increase of 89%. Our 2023 service revenues grew 111% year over year, amounting to $26.4 million. Now, within this figure, network fees grew 71% to $7.5 million, and Q4 2023 service revenues reached $7.9 million. Now in even better news from a financing perspective, if you flip to slide six, we previously discussed raising additional funds to guide Blink towards profitability. I am pleased to announce that we substantially strengthened Blink's balance sheet by raising $113 million in gross proceeds via our existing ATM facility. We took advantage of favorable market conditions and did it opportunistically at scale and in a very, very cost-effective way. As a result, we de-levered our balance sheet and significantly reduced our interest expense by paying off promissory notes and accrued interest of $45.5 million.

Our fourth quarter, 2023 revenues or a Q4 record of 42.7 million, representing a year over year increase of 89%.

Our 2023 service revenues grew 111% year over year amounting to $26 $4 million now within this figure network fees grew 71% to $7.5 million and Q4, 2023 service revenue.

Seven 9 million.

Now an even better news from a financing perspective, if you flip to slide six we previously discussed raising additional funds to guide towards profitability I am pleased to announce that we substantially strengthened <unk> balance sheet by raising $113 million.

In gross proceeds via our existing ATM facility.

We took advantage of favorable market conditions and did it opportunistically at scale and in a very very cost effective way as a result, we delever our balance sheet and significantly reduced our interest expense by paying off promissory notes and accrued interest.

<unk> of $45 $5 million.

Brendan S. Jones: With our current visibility, we anticipate that our existing cash balance will be sufficient to reach our positive EBITDA adjusted rate target in December of 24 and beyond. Now, if we now look at slide seven, for full year 2024, we are targeting revenues between $165 to $175 million and a gross margin of approximately 33%. We are also reconfirming our target of achieving a positive adjusted EBITDA run rate by December of 2024. Now, let's jump over to slide 8.

With our current visibility, we anticipate that our existing cash balance will be sufficient to reach our positive EBITDA adjusted rate target in December of 'twenty four and beyond.

If we now look at slide seven for full year 'twenty 'twenty four we are targeting revenues between 165 to 175 million and a gross margin of approximately 33%.

We are also reconfirming, our target of achieving positive adjusted EBITDA run rate by December of 'twenty 'twenty four now let's jump over to slide eight we show the different actions that we continue that continue to materialize that will continue mineralized excuse me in 'twenty 'twenty four to achieve.

Brendan S. Jones: We show the different actions that will continue to materialize that will continue to materialize, excuse me, in 2024 to achieve our adjusted EBITDA target. First, solid revenue growth is expected to contribute significantly to adjusted EBITDA. We emphasize not only the sales quantity but also the quality of new customers, especially fleets, as they play a crucial role in financing our company's growth. During 2023, we saw important fleet wins in the United States, including the Post Office and Mack Trucks, just to name a few. We also prioritize revenue generated from our existing customers as an optimal way to finance growth.

Our adjusted EBITDA target.

Sourced solid revenue growth is expected to contribute significantly to adjusted EBITDA, we emphasize not only the sales quantity, but also the quality of new customers, especially fleets as they play a crucial role in financing our company's growth during 'twenty to 'twenty three we saw.

Important fleet wins.

And in the United States, including the post office and Matt Mack trucks, just to name a few we also prioritize revenue generated from our existing customers as an optimal way to finance growth.

Brendan S. Jones: Second, we anticipate gross margin improvement as we continue to insource a large portion of our product mix. Our decision to expand our Bowie, Maryland, facility aligns perfectly with our growth strategy, and we are very pleased to have the facility open with production underway. Third, expense management and cost avoidance are currently underway throughout the entire company. We've also implemented a leading software tool to assist in planning and monitoring expenses at all levels of the company. We are pleased with this capability as it enables robust scenario planning and accountability for every department.

Second we anticipate gross margin improvement as we continue to in source a large portion of our product mix.

Our decision to expand our Bowie, Maryland facility aligns perfectly with our growth strategy and we are very pleased to have the facility open with production underway.

Third expense management and cost avoidance are currently underway throughout the entire company.

We've also implemented a leading software tool to assist in planning the planning and monitoring expenses.

All levels of the company. We are pleased with this capability as it enables robust scenario planning and accountability for every department.

Brendan S. Jones: And finally, we anticipate the EV market to maintain its recent momentum, benefiting not only Blink but, more importantly, the entire industry. If we move on to the next page, despite various media stories, we remain very optimistic about the EV market and its continued growth. This optimism is fueled by the decreasing cost of electric vehicles and the continuous expansion and improvement of charging infrastructure. The network effect is now taking hold.

And finally, we anticipate the EV market to maintain its recent momentum benefiting not only blame but more importantly, the entire industry.

If we move on to page now despite various me. This media stories, we remain very optimistic about the EV market and the continued growth. This optimism is fueled by the decreasing cost of electric vehicles, and the continuous expansion and improvement of charging infrastructure.

The network effect is now taking hold now look at the numbers in 2023, he's accounted for one of every five vehicles sold globally.

Brendan S. Jones: Now look at the numbers. In 2023, EVs accounted for one of every five vehicles sold globally. In the US, in 2023, we saw an increase in EV adoption, accounting for 8% of all new cars sold within the United States. Now, if we look at California, EVs represented 25% of all new car sales. To provide context,

In the U S. In 'twenty to 'twenty three we saw an increase in EV adoption accounting for 8% of all new car sold within the United States now if we look at California, Evs represented 25% of all new car sales to provide context Bloomberg.

Brendan S. Jones: Bloomberg New Energy Finance anticipates EV penetration in the U.S. to reach approximately 13% in 2023, marking a significant 500 basis points of expansion in just one year. Now, in Europe, another region where we are active and have three different offices, the EV penetration rate throughout the entire European continent stood at 18% of car sales. But if you start to split this up and look at various countries, France, the UK, Ireland, Germany, the Netherlands, and Belgium, the percent is much higher.

New energy finance anticipates, a deep penetration in the U S to reach approximately 13% in 'twenty two 'twenty three marking a significant 500 basis points, but expansion in just one year.

Now in Europe, another region, where we are active and have three different offices, the EV penetration rate throughout the entire European content stood at 18% of car sales, but if you start to split this up and look at various countries, France U K.

Ireland.

Germany, the Netherlands, and Belgium, the percent is much higher.

Brendan S. Jones: This figure is projected to rise across both Western and Eastern Europe to about 22% in 2024, with a target of 80% by 2030. And we know that's a big number, but it's really not that far-fetched. As many of you may know, about 90% of all cars sold in Norway are EVs. Several larger European countries are closely monitoring this trend, and we at Blink are actively studying and adapting to this evolving landscape. Now, let's turn to page 10.

This figure is projected to rise across both western and eastern Europe, It's about 22% and 2024 with a target of 80% by 2030, and we know that's a big number but it's really not that far fetched as many of you may know about 90% of all.

All cars sold in Norway are E vs. Several larger European countries are closely monitoring this trend and we at blank are actively studying and adapting to this evolving landscape.

Now, let's turn to page 10.

Brendan S. Jones: The proliferation of EVs globally requires rapid improvement in EV charging infrastructure. According to McKenzie's new data, the United States is projected to have over 28 million chargers by 2030. And that's from a bit over $4 million today. The global market is expected to grow at a 25% CAGR through 2030. And if you look across all the major research done in this area, it doesn't matter whether it's McKinsey, PricewaterhouseCoopers, or Bloomberg, most chargers are expected to be level two chargers because drivers will mainly charge vehicles where the vehicle will idle most of the time. This is backed by the US Department of Transportation, which shows that on average, vehicles sit about 95% of the time.

The proliferation of easy globally requires rapid improvement in EV charging infrastructure. According to Mckinsey as new data the United States is projected to have over 28 million Chargers by 2030.

And that's from a bit over 4 million today, the global market is expected to grow at a 25% CAGR through 2030 and the investment required for this expected to be about 260 billion.

And if you look across all major research done in this area. It doesn't matter, whether it's I can't see price waters Cooper or Bloomberg. Most chargers are expected to be level, two chargers because drivers will mainly charged vehicles, where the vehicle will idle most of the time. This is backed by the U S Department of transportation.

Which shows that on average vehicles sit about 95% of the time.

Brendan S. Jones: On page 11, in terms of deployment, since Blink's inception, we have sold, contracted, or deployed 89,825 chargers; 78% of this is in North America, with the majority of the remaining chargers in Europe. Now on to slide 12.

On page 11 in terms of deployments.

Blinks inception, we have sold contracted or deployed 89800 and twenty-five Chargers, 78% of this is in North America with the majority of the remaining Chargers are in Europe.

Now on Slide 12, you will see images of our advanced product portfolio today, we can satisfy the demands of any customer from the product and software perspective, our versatile level. Two chargers are used in multiple commercial residential and fleet applications.

Brendan S. Jones: You will see images of our advanced product portfolio. Today, we can satisfy the demands of any customer from the product and software perspective. Our versatile Level 2 chargers are used in multiple commercial, residential, and fleet applications.

Brendan S. Jones: At the same time, we have made significant strides with our DC fast chargers, as you can see in the lower left section of the slide. And importantly, our chargers already support the North American charging standard, or NACS, which we believe will only benefit Blink as more drivers will be able to easily access Blink chargers and charge on our chargers. And of particular note, just this week, we celebrated the grand opening of our new manufacturing facility near Washington, D.C., which will further drive our gross margin expansion while improving product quality and reliability. Federal, state, and local government officials were present to celebrate with us this significant milestone. And if you look at slide 13, we look forward to supporting government programs when it comes to electrifying their fleets and providing EV charging infrastructure in their jurisdictions.

At the same time, we have made significant strides with our DC fast Chargers as you can see on the lower left section of the slide.

And importantly, our Chargers already support the North American charging standard or next which we believe will only benefit blank as more drivers will be able to easily access link chargers and charge on our Chargers.

And of particular note just this week, we celebrated the Grand opening of our new manufacturing facility near Washington, D C, which will further drive our gross margin expansion, while improving product quality and reliability federal state and local government officials were pressed.

To celebrate with US this significant milestone and if you look at slide 13, we look forward to supporting government program. So when it comes to electrifying their fleets and providing EV charging infrastructure in their jurisdictions.

Now the production that is underway at the facility and bond they use the latest lean manufacturing practices focusing on efficiency and continuous improvement we anticipate that it will support an annual production capacity of up to 50000 Chargers and has been designed.

Brendan S. Jones: Production that is underway at the facility embodies the latest lean manufacturing practices focusing on efficiency and continuous improvement. We anticipate that it will support an annual production capacity of up to 50,000 chargers and has been designed for flexibility to adapt to our future products and manufacturing needs. Now, for a new announcement. In addition to the manufacturing facility, we have established our global headquarters at the same location near the nation's capital.

For flexibility to adapt to our future products and manufacturing needs.

No.

Other new announcements in addition to the manufacturing facility, we have established our global headquarters at the same location near the nation's capital. We believe this offers multiple benefits it brings us closer to our manufacturing operations allows for better team engagement and brings us.

Brendan S. Jones: We believe this offers multiple benefits. It brings us closer to our manufacturing operations, allows for better team engagement, and brings us closer to some of our largest customers. Furthermore, being located near policymakers involved in shaping the federal government's transition to electric vehicles is advantageous as we continue to play a pivotal role in this transformative journey.

Closer to some of our largest customers. Furthermore, being located near policymakers involved in shaping the federal government's transition to electric vehicles is advantageous as we continued to play a pivotal role in this transformative journey.

Brendan S. Jones: Now, if we go to slide 14, over the years, Blink has been able to acquire a number of prominent customers and collaborations with some of the largest fleets globally, automotive companies, commercial and multifamily real estate enterprises, as well as prominent hospitality venues. In 2024 and beyond, we will be adding to this list of prominent customers. Now with that, I'm going to turn the presentation now over to our CFO, Michael Rama, to give you some additional financial detail.

Now if we go to slide 14 over the years Lake was able to acquire a number of prominent customers and collaborations with some of the largest fleets globally automotive companies commercial and multifamily real estate enterprises as well as prominent hospitality venues in 'twenty 'twenty four and beyond.

We will be adding to this list of prominent customers.

Now with this I'm going to turn the presentation now over to our CFO, Michael Rama to give you some additional financial detail Michael.

Michael P. Rama: Thank you, Brendan, and good afternoon, everyone. Now turning to slide 16, our Q4 2023 revenues grew 89% year-over-year to $42.7 million, another record fourth quarter for Blink. Total revenues for 2023 were an absolute record at $140.6 million, a 130% increase compared to $61.1 million for the full year of 2020. As Brendan mentioned earlier, only two years ago, our 2021 full year revenues were nearly $21 million, which represents about 15% of our current 2023 full year revenues of $140.6 million. Now product revenues for the fourth quarter of 2023 were $33.4 million, an increase of 112% over the same period in 2022. Product revenues for the full year of 2023 were $109.4 million, an increase of 138% when compared with the full year of 2029. These increases were driven by strong demand for our commercial level two chargers and DC fast chargers, as well as our ability to satisfy increasing levels of demand.

Thank you Brendan and good afternoon, everyone now turning to slide 16, our Q4 2023 revenues grew 89% year over year to $42 $7 million another record fourth quarter for Blake total revenues for 2023 was an absolute record at one.

$140 6 million.

A 130% increase compared to $61 $1 million for the full year of 2022.

As Brendan mentioned earlier only two years ago. Our 2021 full year revenues were nearly $21 million, which represents about 15% of current 2023 full year revenues of $146 million now product revenues for the fourth quarter of 2023 were <unk> 33.

$4 million, an increase of 112% over the same period in 2022.

Product revenues for the full year of 2023 were $109 4 million, an increase of 138% when compared with full year 2022.

These increases were driven by strong demand for our commercial level, two chargers and DC fast Chargers as well as our ability to satisfy increasing levels of demand.

Michael P. Rama: Fourth quarter 2023 service revenues, which consists of charging service revenues, network fees, and car sharing revenues, were $7.9 million, an increase of 40% compared to the fourth quarter of 2020. Full Year 2022, and Full Year 2023 service revenues more than doubled to $26.4 million, representing a year-over-year growth of 111%, driven by greater utilization of our chargers, increased number of chargers on Blink networks, and revenues associated with the We break out these service revenue lines to differentiate between product and service businesses more accurately.

Fourth quarter 2023 service revenues, which consist of charging service revenues network fees car sharing revenues were $7 9 million.

An increase of 40% compared to the fourth quarter of 2022.

Full year 2022, full year 2023 service revenues more than doubled to $26 4 million.

Representing a year over year growth of 111% driven by greater utilization of our Chargers increased number of charges on <unk> networks and revenues associated with the Blink mobility car share program, we break out the service revenue lines to differentiate between product and service businesses more accurately.

Now turning to gross profit gross profit increased 63% to $10 $6 million or 25% of revenues in the fourth quarter of 2023 compared to gross profit of $6 $5 million or 29% of revenues in the fourth quarter of 2022.

Michael P. Rama: Now turning to gross profit. Gross profit increased 63% to $10.6 million, or 25% of revenues, in the fourth quarter of 2023 compared to gross profit of $6.5 million, or 29% of revenues, in the fourth quarter of 2022. Gross margin decreased in the fourth quarter of 2023 when compared sequentially to the third quarter of 2023 due to increased year-end warranty and maintenance expenditures as well as adjustments related to discontinued components.

Gross margin decreased in the fourth quarter of 2023, when compared sequentially to the third quarter 2023, due to increased year end warranty and maintenance expenditures as well as adjustments related to discontinued components now excluding the impact of these items the gross margin for Q3 Q4.

Michael P. Rama: Now excluding the impact of these items, the gross margin for Q4 2023 would have been approximately 30%. Gross profit for the full year of 2023 increased by 172% to $40.2 million or 29% of revenues compared to gross profit of $14.8 million or 24% for the full year of 2020. Gross margin for the full year of 2023 increased when compared to the full year of 2022, primarily due to a higher mix of in-house manufactured units, which carry a higher margin and increased utilization of energy.

For 2023 would've been approximately 30%.

Gross profit for the full year of 2023 increased by 172% to $42 million or 29% of revenues compared to gross profit of $14 8 million.

24% in the full year of.

2022.

<unk> margin for the full year of 2023 increased when compared to the full year of 2022, primarily due to higher mix of in house manufactured units, which carry a higher margin and increased utilization of Georgia.

Michael P. Rama: Now turning to operating expenses, operating expenses in the fourth quarter of 2023 decreased 16% to $28.7 million compared to $34.2 million in the fourth quarter of 2022. Meanwhile, we group quarterly revenues by 89% year over year. Most of the decrease in operating expenses was driven by 27% reductions in year-over-year compensation expense for 2020. Operating expenses for the full year of 2023 were $239.9 million compared to $104.1 million for the full year of 2022.

Now turning to operating expenses operating expenses in the fourth quarter of 2023 decreased 16% to $28 $7 million compared to $34 two.

$2 million in the fourth quarter of 2022, well, we grew quarterly revenues by 89% year over year.

Most of the decrease in operating expenses was driven by 27% reduction in year over year compensation expense of <unk> 20 for 2023.

Operating expenses for the full year of 2023.

$239 9 million compared to $104 $1 million with full year of 2022, the increase in operating expenses for the full year is primarily driven by $105 $9 million related to a noncash goodwill and intangible assets impairment charge as well as the.

Michael P. Rama: The increase in operating expenses for the full year is primarily driven by $105.9 million related to a non-cash goodwill and intangible assets impairment, as well as the impact of a one-time non-recurring payment to our former CEO and a non-recurring bonus related to the performance milestones achieved by our CTO related to the design and launch of Blink's recently implemented new network. It is very important to mention here that these in-parent charges are not cash, and they do not impact our operations in any way shape or form. Excluding the impact of the $105.9 million Non-Cash Impairment Charge and One-Time Compensation Related Items.

Impact of a one time non recurring payment to our former CEO and a non recurring bonus related to the performance milestones achieved by our CTO related to the design and launch a blinks recently implemented new network. It is very important to mention here that these impairment charges are non cash.

And they do not impact our operations in any way shape or form excluding the impact of the $105 9 million.

Noncash impairment charge and onetime compensation related items the.

Michael P. Rama: Operating expense for full year 2023 would have been $134 million. Now, as a percentage of revenues, this amount represents a reduction of approximately 7,500 basis points, while revenues increased by 130% year over year. Of note, 2023 operating expenses include $3 million of expenses for our 2023 acquisition of Now. Adjusted EBITDA for the fourth quarter of 2023 was a loss of $14 million compared to $14.8 million in the prior year period. As a percentage of revenues, our adjusted EBITDA metric improved nearly 3,200 basis points compared to Q4 2020. This is a 50% improvement year over year, reinforcing our trajectory to a positive adjusted EBITDA run rate by December of this year. Now adjusted EBITDA for the full year 2023 was a loss of $57 million compared to an adjusted EBITDA loss of $60.3 million in the full year 2020.

Operating expense for full year 2023 would have been $134 million now as a percentage of revenues. This amount represents a reduction of approximately 7500 basis points, while revenues increased by 130% year over year of note 2023 operating expenses include.

$3 million of expenses for our 2023 acquisition of envoy.

Now adjusted EBITDA for the fourth quarter of 2023 was a loss of $14 million compared to a $14 $8 million.

In the prior year period as a percentage of revenues.

Adjusted EBITDA metric improved nearly 330 200 basis points compared to Q4 2022.

This is a 50% improvement year over year, reinforcing our trajectory to positive adjusted EBITDA run rate by December of this year.

Now adjusted EBITDA for the full year 2023 was a loss of $57 million compared to an adjusted EBITDA loss of $60 million to $60 $3 million in the full year of 2022 the.

Michael P. Rama: The adjusted EBITDA for the 3 and 12-month periods ended December 31, 2023 excludes the impact of stock-based compensation, acquisition-related costs, one-time non-recurring expenses, non-cash impairment charges, and non-cash losses on extinguished notes payable. As Brendan mentioned earlier, several factors are expected to get us to a positive adjusted EBITDA run rate by the end of this year, including revenue growth, expense management, and cost avoidance actions that have materialized based on our actions to rationalize our operations, consolidate facilities and support functions, and build scale into our manufacturing and sales. Earnings per share for the fourth quarter of 2023 were a loss of 28 cents per share, compared to a loss of 55 cents per share in the prior year period.

The adjusted EBITDA for the three and 12 months periods ended December 31, 2023 exclude the impact of stock based compensation acquisition related costs onetime nonrecurring expenses non cash impairment charges and non cash loss on extinguishment of notes payable as.

<unk> mentioned earlier several factors are expected to give get us to a positive adjusted EBITDA run rate by the end of this year, including revenue growth expense management and cost avoidance actions that are materialized.

Just on our actions to rationalize our operations consolidated facilities and support functions and build scale in tower manufacturing and sales processes.

Earnings per share for the fourth quarter of 2023 was a loss of 28 per share compared to a loss of 55 per share in the prior year period for the full year 2023 earnings per share was a loss of $3 21.

Michael P. Rama: For the full year 2023, earnings per share was a loss of $3.21 per share compared to a loss of $1.95 per share for the full year of 2020. Please note that the impact of the non-cash accounting adjustments to our Goodwill and TANF assets, combined with the one-time compensation charges to our CTO and former CEO, negatively impacted year-to-date earnings per share by $1.67. Now adjusted earnings per share for the fourth quarter of 2023 was a loss of $0.28 compared to an adjusted earnings per share loss of $0.41 in the fourth quarter of 2020. Adjusted earnings per share for the full year of 2023 was a loss of $1.42 compared to an adjusted EPS loss of $1.65 in the full year of 2023. Non-GAAP Adjusted Earnings Per Share is defined as adjusted net income, which excludes the impact of stock-based compensation, acquisition-related costs, one-time non-recurring expenses, non-cash impairment charges, and non-cash loss on extinguishing of notes payable, divided by the weighted average shares estimated.

Per share compared to a loss of $1 95.

Per share for the full year of 2022. Please note that the impact of the noncash accounting adjustments to our goodwill intangible assets combined with the one time compensation charges to our CTO and former CEO negatively impacted year to date earnings per share by $1 67.

Now adjusted earnings per share for the fourth quarter of 2023 was a loss of 28 <unk>.

Compared to adjusted earnings per share loss of 41 in the fourth quarter of 2022 adjusted.

Adjusted earnings per share for the full year 2023 was a loss of $1 42 compared to an adjusted EPS loss of $1 65 in the full year of 2022.

non-GAAP adjusted earnings per share is defined as adjusted net income.

Which excludes the impact of stock based compensation acquisition related costs onetime nonrecurring expenses noncash impairment charges and noncash loss on extinguishment of notes payable divided by the weighted average shares outstanding.

Michael P. Rama: Now turning to slide 17, you can see that Blink has made tremendous progress in growing our revenue base over the last two years. Our revenues grew 671% in just two years. At the same time, we have more than doubled our gross margin from 14% in 2021 to 29% in 2023 and are currently targeting a gross margin of approximately 33% for 2022. Now, moving to our cash position. As of December 31st, 2023, cash and cash equivalents totaled $121.7 million, an increase of $85 million compared to December 31st, 2022 and of $55 million compared to $66.7 million on September 30th, 2022. In the fourth quarter of 2023, we raised $88 million in gross proceeds via the existing ATM. Furthermore, during the first quarter of 2024, we raised gross proceeds of an additional $25 million via the ATM. In total, between November 20, 2023 and February 12, 2024, Blink raised $113 million in gross profit, be of the existing age.

Now turning to slide 17, you can see that Blink has made tremendous progress in growing our revenue base over the last two years. Our revenues grew 671% in just two years at the same time, we have more than doubled our gross margin from 14% in 2021 to <unk>.

29% in 2023, and currently charging targeting our gross margin of approximately 33% for 2024.

Moving to our cash position as of December 31, 2023, cash and cash equivalents totaled $121 7 million, an increase of $85 million compared to December 31, 2022, and a $55 million compared to the $66 <unk>.

$7 million at September 32023 in the fourth quarter of 2000, 22023, we raised $88 million in gross proceeds via the existing <unk>.

Furthermore, during the first quarter of 2024th we raised gross proceeds of an additional $25 million via the ATM.

In total between November 20th 2023, and February 12, 2024, Blink raised $113 million in gross proceeds via the existing ATM.

Michael P. Rama: We access the market opportunistically, at scale, and at very cost-effective terms. As a result, we were able to pay off promissory notes and accrued interest in the amount of $45.5 million, which de-levered the balance sheet to our significant extent, to avoid significant ongoing interest costs, as well as accelerate Blink's Path Towards Profitability. We are very pleased to have closed fiscal 2023 with record fourth-quarter and record full-year results. We believe the charging infrastructure industry is at an inflection point, and we're building a solid foundation for Blink's continued and, more importantly, profitable growth. I will turn the call back over to Brendan for his final commentary. Go ahead, Brendan.

We accessed the market opportunistically at scale and at a very cost effective terms for blink or as a result, we were able to pay off promissory notes and accrued interest in the amount of $45 5 million, which de levered the balance sheet to our significant to avoid significant ongoing interest costs as well.

As decelerate blinks path towards profitability.

We are very pleased to have closed fiscal 2023 with record fourth quarter and record full year results. We believe the charging infrastructure industry is that inflection point and we are building a solid foundation for Bluelinx continued and more importantly profitable growth I will turn the call back over to <unk>.

Brendan for some thoughts for his final commentary go ahead Brendan.

Brendan S. Jones: Well, thank you, Michael. So, I think you all can see that, without a doubt, 2023 marked a truly transformative year for Blink. We couldn't be prouder of our team and the accomplishments during the year of 2023.

Well thank you Michael.

So I think you all can see that without a doubt 2023, mark a truly transformative year for Blake.

We couldn't be prouder of our team and the accomplishments.

For the year of 2023.

Brendan S. Jones: But we've said a lot today, so let's recap really quickly here and get to the more salient points. Our revenues surged to over $140 million, accompanied by an industry-leading gross margin of 29% in 2023. Additionally, as Michael just mentioned, we took advantage of favorable market conditions and capitalized Blink by raising $113 million in cost-effective finance. We significantly reduced our debt obligation and the burden of interest expense on free cash flow.

But we sell a lot today, so let's recap really quickly here.

And get to the more salient points are revenues surged to over $140 million accompanied by an industry, leading gross margin of 29% in 2023.

Additionally, as Michael just in Red, we took advantage of favorable market conditions and capitalized.

By raising $113 million and cost effective financing, we significantly reduced our debt obligation and the burden of the interest expense on free cash flow.

Brendan S. Jones: Now, we didn't just do that, but then when you go further, at the operational level, if you look at slide 19, in 2023, we materially expanded our U.S. manufacturing with the recent grand opening of our facility near the nation's capital. This allowed, and is allowing Blink to consolidate five of its U.S. facilities down to two, while increasing production from a From an operating and Logistics and Networks perspective, we further consolidated. We also consolidated sales back office functions to reduce operating expenses and improve efficiencies.

No. We didn't just do that but then when you go further at the operational level. If you look at slide 19 in 2023, we materially expanded our U S manufacturing.

With the recent Grand opening of a facility near the nation's capital. This allow this allowed in this allowing Blake to consolidate five of our U S facilities down to two while increasing production.

From a <unk>.

Operating and logistics and <unk>.

And network perspective, we further consolidated we also consolidated sales back office functions to reduce operating expenses and improve efficiencies.

Brendan S. Jones: And then the last one is that we have integrated and rebranded our legacy companies of Electric Blue and Blue Corner, who are now Blink UK and Blink Belgium. And we're not done yet. As we move into 2024, the team is laser focused on the targets we have laid out in front of them, and the number one target is achieving an adjusted EBITDA run rate by the end of 2024. Now, if we look at what else we're going to do in 2024, it's all listed out on slide 20. We will continue to drive global efficiencies through optimized manufacturing, logistics, distribution, and facilities and back office consolidation. We will execute our cost reductions and avoidance strategies, leverage expanded manufacturing facilities to support growth, reduce COGS, and enhance our international product portfolio.

And then the last one is we have integrated and rebranded our legacy companies of electric Blue and Blue corner, who are now Blink UK and Blink Belgium.

And we're not done yet as we move into 2024. The team is laser focused on the targets we have laid out in front and the number one target is achieving adjusted EBITDA run rate by the end of 'twenty 'twenty four.

Now if we look at what else, we're going to do in 2024.

All listed out on Slide 20, we will continue to drive the global efficiencies through optimized manufacturing logistics distribution and facilities and back office consolidation, we will execute our cost reductions and avoidance strategies.

Leverage expanded manufacturing facilities to support growth reduce cogs and enhanced international product portfolio.

Brendan S. Jones: We will launch a new multi-market maintenance and service and proactive monitoring network to improve uptime and charge quality and reliability. And we will continue to invest in innovative technologies to improve efficiency and promote continued growth. These tactical and strategic moves will provide Blink with the necessary flexibility to achieve our positive adjusted EBITDA run rate by December of 2024, and this is fundamental to Blink's long-term success. Finally, our success in 23 wouldn't be possible without the outstanding team we have in place, and we thank each and every one of them across the entire organization for their tremendous effort this year.

We will launch a new multi market maintenance and service and proactive monitoring network to improve uptime and charge of quality and reliability.

And we will continue to invest in innovative technologies to improve efficiency and promote continued growth.

These tactical and strategic moves will provide blank.

With the necessary flexibility to achieve our positive adjusted EBITDA run rate by December of 2024.

And this is fundamental to <unk> long term success.

Finally, our success in twenty-three you wouldn't be possible without the outstanding team, we have in place and we thank each and every one of them across the entire organization for their tremendous effort. This year as you might imagine the team is excited about <unk> future and we look forward to update.

Brendan S. Jones: As you might imagine, the team is excited about Blink's future, and we look forward to updating you throughout 2024 as we continue to make progress. With that, the call is now open to questions. Thank you. Ladies and gentlemen, the floor is now open to your questions. If you have any questions or comments, please press star 1 on your phone at this time. We ask that while asking your question, you please pick up your handset if listening on speakerphone to provide optimum sound quality. Please hold while we pull for questions. Bank.

<unk> you throughout 2024, as we continued to make progress.

With that the call is now open for questions.

Thank you ladies and gentlemen, the floor is now open for your questions. If you have any questions or comments. Please press star one on your phone at this time.

He asked at what portion of your question you. Please pick up your handset if listing on speaker phone to provide optimum sound quality.

Please hold while we poll for questions.

Thank you our.

Operator: Our first question is coming from Chris Pierce with Needham. Sir, your line is: Hey, just two for me.

Our first question is coming from Chris Pearce.

Needham.

Your line is life.

Hey, I guess two for me.

Christopher Alan Pierce: We had an industry leader on the earnings call a couple weeks back talk about, you know, seeing their customers thinking about moving towards a dual sourcing model and kind of having multiple charges for multiple brands on site. Is that something that gives you confidence in the growth to triple your production capacity and buoy? Had that already been contemplated in the model? Or is that something new that's just added to kind of what you're thinking about? Yeah, it's an enhancement.

Industry leader on the earnings call a couple of weeks back talk about seeing.

Seeing their customers thinking about moving towards a dual sourcing model.

Having multiple charges from multiple brands on site.

Is that something that gives you confidence in the growth to triple your production capacity and brewery has that already been contemplated in our model or is that something new that's additive to kind of how are you thinking about the future. Yeah. It's an enhancement. So it wasn't in the original math when we agreed to expand buoy, but certainly.

Christopher Alan Pierce: So it wasn't in the original math when we agreed to expand buoy, but certainly, you know, now we're calculating it in. So we see that as an added benefit over time. Okay, and then you're guiding at the midpoint to roughly 20% revenue growth. So I just want to kind of how do we square that with the tripling of capacity? Kind of, you know; one seems a little more aggressive; one seems a little more conservative.

You know now we're calculating it in so we see that as added benefit over time.

Okay, and then you're guiding at the midpoint to roughly 20% revenue growth I just wanted to kind of how do we square that with the tripling of the capacity kind of when it seems a little more aggressive when things a little more conservative I just want to kind of what's the right way to think about that.

Michael P. Rama: I just want to kind of think about that. Michael, how do you want to handle that one? Sure. And, and, and, you know, we built our budgets from the ground up, and we're just, you know, factoring in, obviously, we're a bit conservative where we, you know, as, as you know, we're conservative in nature, and, you know, as we head into 2024 as we navigate through, you know, some noise, but we, we feel confident that that range is most appropriate for what we feel Okay, thank you. Thank you. Our next question is coming from Stephen Gengaro with Stiefel. Your line is: Thanks. Good afternoon, everybody.

Michael you want to handle that one.

Sure.

And you know, where we built our budgets from the from the ground up and we're just we're factoring in obviously light will be conservative where we you know as you know we were conservative in nature and you know as we head into 2024 as we navigate through you know some some noise, but we feel.

Confident that that range is most appropriate for what we feel is to start to start out the year.

Yeah.

Okay. Thank you.

Thank you.

Our next question is coming from Steven <unk> with Stifel. Your line is life.

Thanks, Good afternoon everybody.

Just two for me and wanted to follow up on <unk>.

Stephen David Gengaro: Two for me, and one to follow up on a question Chris just asked: when we think about the revenue guide for 24, and we think about kind of what the industry seems to be going through right now, just from an adoption rate, all the data points have been a little more negative. But notwithstanding that, and your comments on the guide, how would you classify 24, 5, 6? Should we think about that underlying CAGR that you illustrated in the presentation in the mid-20s as kind of a baseline? Is that a good place to start, and if so, how should we think about that impact on overhead and margin progression? You know, it's a good place to start.

Question Christian.

When we think about the revenue guide for 'twenty, four and we think about kind of what the industries seems to be going through right now just from a.

The option right.

All the data points have been have been a little more negative but.

Notwithstanding that in your in your comments on the guide how do how would you classify it like 20 456 like should we think about that underlying CAGR that you that you illustrated in the presentation.

Mid twenties I was kind of a baseline that you've got a good place to start and if so how should we think about that impact on overhead and margin progression.

It's a good place to start now you're going to you know.

Brendan S. Jones: Now you're going to, you know, see different accelerations in different places we operate, especially outside the United States, right? Of course, we see we want to gain for larger numbers, right? We want to make sure we have the capacity to take care of what is going to happen in the space, and not just the capacity but the ability to produce at a high margin. So we're going to be, as Michael said, we're going to be a little conservative in the numbers, but we're basing those on real data. We don't make a decision without looking at what the analysts are saying, whether that analyst is McKinsey or another analyst looking at what they see as industry growth.

See different acceleration in different places, we operate especially outside the United States right.

Of course, we see we want a game for larger numbers right. We want to make sure. We have the capacity to take care of what is going to happen in the space and not just the capacity, but the ability to produce.

At a high margin.

So we're gonna be as Michael said, we're going to be a little conservative numbers, but we're basically knows off a real data.

We don't make a decision.

Without looking at what the analysts are saying whether that analysts and mckinsey or another and I was looking at what they see as industry growth. Let me cross apply that with where we're active and then we look at the segmentation and see okay. Where's our greatest opportunity to expand revenue and then thirdly. The other leg of that is when we're looking.

Brendan S. Jones: Then we cross-apply that with where we're active, and then we look at the segmentation and see, okay, where's our greatest opportunity to expand revenue? And then thirdly, the other leg of that is, you know, when we're looking at our own internal functions, what are our other revenue opportunities as we continue to grow and scale the industry? We think 165 to 175 is healthy, and that is, you know, we're going to have a lot of work to do on that, and it's going to enable us to grow our margins as well. Thanks.

Looking at our own internal functions is what are our other revenue opportunities as we continue to grow and scale the industry, but we think 165 to 175 is healthy and that that is we're going to have a lot of work to do and in that.

And that's going to enable us to grow our margins as.

Stephen David Gengaro: And then as a follow-up, we got to see the new facility this week. When you think about that facility ramping up, and you have, you know, I think you've consolidated and you've centralized the warehouse and production, etc., how should that impact you?

As well.

Okay. Thanks, and then.

As a follow up.

We got to see the new facility.

When you think about that facility ramping and you have I think you've.

Solidago centralized warehouses and production et cetera, how should that impact underlying product margins over the next two years.

Brendan S. Jones: underlying product margins over the next two years. Yeah, it's going to have a positive impact. As you can imagine, we've done a couple different things, right? So we had five facilities, one in Miami. We actually had four in the greater Washington, D.C. Metro area.

Yeah, it's it's going to have a positive impact as you imagine we've done a couple of different things right. So we had five facilities one in Miami, we have actually four.

In the greater Washington D C Metro area, we've now consolidated all those too.

Brendan S. Jones: We've now consolidated all those to two, and with that, we've also been able to reduce overhead across the board at all those locations, so we're anticipating a positive margin impact for that. But we haven't crystallized those numbers yet.

And with that we've also been able to reduce overhead across the board at all of those so we're anticipating a positive margin impact for that but we haven't crystallized those numbers yet. So we haven't had a range and thats something that youre going to see manifest.

Brendan S. Jones: So we have it at a range. And that's something that you're going to see manifest in the Q1 report, which is looking really good, and the Q2 and Q4. Okay, thank you for the details. Operator, next question, please. Sorry, sir, my line was muted by mistake.

In the Q1 report, which is looking really good in Q2 and Q4.

Okay. Thank you for the details.

Yeah.

Okay.

Operator next question please.

Yeah.

Sorry, sorry, my line was muted by mistake.

Craig Edward Irwin: The next question was from Craig Irwin with Roth MKM. Your line is live, sir. Good evening, and thanks for taking my question. Um, more on the housekeeping side. Can you maybe update us on your DC fast charger portfolio? You know, where are we at as far as the new product introductions that you were planning? And, you know, can you maybe break out for us what the contribution will be in 2023? And whether or not there was, again, a margin drag potentially in the fourth quarter?

The next question is from Craig Irwin with Roth and Cam Your line is live Sir.

Hi, good evening and thanks for taking my questions.

More on the housekeeping side.

Can you maybe update us on your.

Your D C fast charter portfolio.

Where are we at as far as the new product introductions that you were planning.

Can you can you maybe break out for us what the contribution was in 2023 and whether or not there was again a margin drag potentially in the fourth quarter.

Brendan S. Jones: Yeah, so, you know, our DC fast charger fast charging strategy is threefold right now, right? First, we have our own products that are already in the market, which are predominantly fleet applications, and that's our DC 9, which is actually the best selling DC product we have, and it comes in 30 and 40 kilowatts. It's being primarily used at dealerships, fleets across the nation. Then we have what we call our third party outsourced, where we have contract manufacturing on a blink look and feel charger. And that charger takes up where the DC 9 leaves off and fills our orders, whether those orders are to dealerships, fleet companies, or municipalities. The last piece of the strategy is our own designed BC240, which the design is done on the charger, and now we're moving towards, you know, certification and final design.

Yeah. So you know our DC fast Chargers.

Our fast charging the strategy is three fold right now right first we have our own products that are already in the market, which are predominantly a fleet applications and that's our D. C. Nine.

Is actually the best seller D.

D C projects products, we have and it comes in 30 40 kilowatts.

It's being primarily used to dealerships fleets.

Across the nation, then we have what we call our third party outsourced, where we have contract manufacturing on a blink look and feel charger.

And that charger takes up where the.

Do you see nine leaves off.

Fills our orders whether those orders are to dealerships.

Fleet companies or municipalities. The last piece of this strategy is our own designed.

D C to 40, which the design is done on the charger.

And now we're moving towards.

Suffocation and final design. So it's been about in terms of our product in a pizza to stage.

Brendan S. Jones: So it's been about, in terms of a product in the P2 stage, 80% of the final, but the engineering aspects, including the silicon carbide modules, that part is all done. And then it's the determination of our manufacturing partner to build that charger with us. So it's a great question, Craig, but that's where we sit today. Unknown Speaker Excellent, excellent.

80% of final.

But the engineering aspects, including the Silicon carbide modules that part is all done.

And then it's the determination of.

Our manufacturing partner to build that charter with us. So it's a great question, Craig, but that's where we sit today.

Excellent excellent and then.

Craig Edward Irwin: And then, Michael, I really appreciate the clarity on the gross margins. You know, 30% is an impressive number for any producer in this industry. Can you maybe help us with some of the items that were impacting this fourth quarter gap versus the adjusted number? Do you have those details to share with us?

Michael I really appreciate the clarity.

Clarity on the gross margins.

30%.

Is a is an impressive number for any producer in this industry can you maybe help.

Help us with some of the items that were.

Impacting this fourth quarter GAAP versus the adjusted number.

Do you have those details to share with us.

Michael P. Rama: Yeah, as we noted in the prepared remarks, you know, a majority, I'd say about a million to a million and a half dollars represented, I'll call it warranty and maintenance expenses or additional warranty and maintenance expenses, as well as we had to expense certain discontinued components from the older models as we're transitioning from the outsourced or contract manufacturer product over to the in-house manufacturer. So there's components that we have that we're basically not using as much or just had to kind of expense throughout at the end of the year. So it's a combination of a few things, but mostly the warranty, maintenance, as well as discontinued components. Okay, and then just a little bit more detail there. Can you give us a little color on what the warranty was on?

Yeah as we noted in the prepared remarks, you know.

A majority of I'd say about a million 2 million and half dollars represented.

I'll call it warranty and maintenance.

Expenses are additional warranty and maintenance expenses as well as we had to expense certain discontinued components from the older as we're transitioning from.

The outsource or.

Contract manufactured product over to the in house manufactured so theres components that we have.

We had that were basically not using as much or just.

Kind of expense throughout the at the end of the year. So it's a combination of a few things, but mostly on the warranty maintenance as well as a discontinued components.

Okay, and then just a little bit more detail. There can you give us a little color on what the warranty was on is this sort of legacy product for many years ago.

Craig Edward Irwin: Is this sort of legacy product from many years ago? Or is this something that, you know, it's just a minor correction for a more recent product? Yeah, it's a combination. No, go ahead. No, no, you're doing fine.

Or is this something that you know.

It's just a minor correction for from our recent product.

Yes, it's a combination no go ahead Doug.

No.

You're doing fine.

Brendan S. Jones: Okay, I'll take it, Ben. So, you know, there are two phases to it, right? There was the, a lot of it had to do with legacy equipment in the field. And it's a two-prong approach, right? You still have customers out there that have the legacy equipment. We honored the warranty to ensure the uptime and quality of those chargers, because, as you may know, that's one of the number one concerns in the industry.

Got it got it.

Okay I'll take it bad so.

You know, there's two phases to it right. There was a lot of it had to do with legacy equipment in the field and it's a two pronged approach right you still got customers out there that have the legacy equipment we.

[noise] honored warranty.

To ensure that uptime and quality if that was chargers because as you may know that's one of the number one concerns in the industry. So that increased our warranty expense a little bit also when we go through the exercise of replacing those legacy charges and.

Brendan S. Jones: So that increased our warranty expense a little bit. Also, when we go through the exercise of replacing those legacy chargers, and the customer still wants that type of charger, one of the nuances we're faced with is that normally we bring in chargers, and you know, we just do a basic rehab. But a lot of these chargers, instead of doing, you know, the basic rehab on them, we have to pull out some old components now, which adds to component expense that can't be reused.

And the customer still wants that type of charge or one of the nuance. We're faced with is normally we bring in Chargers and we just do a basic rehab, but a lot of these chargers instead of doing the basic rehab on them, we have to pull out some old components now, which adds two component expense that can't be reused.

Brendan S. Jones: We're going to get through most of that. So, it's going to be a one-time expense, but it particularly hit in Q4. So, a lot of older components are being upgraded, and some additional warranty expense to maintain quality out in the field. Now, there's also a correlation to, you know, significant revenue and higher charger sales, and then we need to reserve more in warranty as well. That played into that.

We're gonna get through most of that so it's gonna be a one time expense, but it particularly hit in Q4, so a lot of older componentry being upgrades and some additional warranty expense.

Two.

To maintain quality out in the field now Theres also a call a correlation to <unk>.

Significant revenue and higher charge ourselves and then we need to reserve more in warranty as well that played into that so it was a bit of a multi variable equation that ended up with that result.

Michael P. Rama: So, it was a bit of a multivariable equation that ended up with that result. Excellent. And then the last question, if I may buy it in America, right?

Excellent and then last question if I may buy in America right. This is.

Craig Edward Irwin: This is something that your friends at the Department of Energy are big on, and obviously the President is big on too. Uh, you guys are now, I believe, the best-positioned company as far as level two supply into North America with the Bowie Maryland facility. Can you maybe give us a little bit of color as far as the breadth of demand that you're seeing? I know we've talked a few times about going 12,000 to 50,000 units in capacity, and, you know, I think there's a plan to go to 100,000 in 2025. You know, you obviously see tremendous opportunity.

Some of your friends at Department of Energy.

Our big on obviously is bigger.

You guys are now I believe.

The best positioned company as far as level two supply wins in North America with the Bowie, Maryland facility.

Can you maybe.

Give us a little bit of color as far as the breadth of demand that youre seeing I know I know.

A few times about going 12000 to 50000 units in capacity.

I think theres a plan to go to 100025.

You, obviously see tremendous opportunity can you maybe unpack that for us because you know investors.

Brendan S. Jones: Can you maybe unpack that for us, because, you know, investors have a tremendous amount of power around the world. Yeah. Absolutely. So, you know, we met with federal, state, and local reps all this week. There is a tremendous amount of interest in the Buy America product, right? It resonated through whether it was a meeting with Governor Moore or a meeting that took place in the White House just yesterday with the Board of Directors from Blink and key management.

Investors are tremendous.

Around the yeah.

Oh, absolutely yes.

Yes.

So you know we met with federal state and local reps. All this week there is a tremendous amount of interest in the buy America product right. It resonated through whether it was meeting with government or more or a meeting that took place in the white house just yesterday.

With the board of directors from blank and key management.

Brendan S. Jones: But all of them emphasize that they believe the volume of Buy America product they need is exponential in terms of growth. Now, what the Bowie, Maryland, facility allows us to do is service the U.S. market plus the Buy America market while we can also begin to manufacture chargers for our global markets out of our facility in India. And so basically, we take the same design, and we have a global version, and we have a U.S. version, and then we're compliant everywhere we need to be.

But all of them emphasized that they believe the volume of buy in America.

Product they need is exponential in terms of growth now what the buoy. The Maryland facility allows us to do is service the U S market plus the buy America. While we can also begin to manufacturer Chargers for our global markets out of our facility in India.

And so basically we take the same design and we have a global version and we have a U S. Virgin.

And then we're compliant for everywhere, we need to be and Additionally, this flexibility in our manufacturing facilities allows us to move as we've stated Craig one of our goals is to remove the last vestiges of all third party equipment on an L. Two level, we're going to replicate the same strategy in Europe, which.

Brendan S. Jones: And additionally, this flexibility in our manufacturing facilities allows us to move, as we've stated, Craig, one of our goals is to remove the last vestiges of all third-party equipment on an L2 level. We're going to replicate this same strategy in Europe, which is going to bring better gross margin and get her to scale faster, not just in the United States but across the globe. Now, one of the things that you might imagine is the U.S. post office deal is a testament to getting towards scale. They were at the grand opening.

He's going to bring better gross margin and get her to scale faster.

Not just in the United States, but across the gold now one of the things that you might imagine is the U S. Post office deal is a testament to getting towards scale. They were at the Grand opening they were more than happy with seeing but what we're doing.

Brendan S. Jones: They were more than happy to see what we're doing, and they're going to suck up a pretty good percent of those chargers made there. And what a better story that they're all made in North America right here at Blink's facility outside the nation's capital.

And they're gonna suck up.

Pretty good percent of those charges made there and what a better story that they're all are made in North America right here at Blakes facility outside the nations capital. So we're really excited about that.

Craig Edward Irwin: So we're really excited about that. Fantastic. Well, congratulations on the progress. I'll hop back in the queue.

Fantastic well congratulations on the progress I'll hop back in the queue.

Sameer S. Joshi: Perfect. Bank. Our next question is coming from Sameer Joshi with HC Wainwright. Thanks. Good afternoon.

Perfect.

Thank you.

Our next question is coming from Sameer Joshi with H C. Wainwright Your line is live.

Thanks, Good afternoon, congrats on the progress so far.

Sameer S. Joshi: Congratulations on the progress so far. Just a few questions and clarifications on the revenue outlays. What is the contribution from products versus, say, network fees and charging revenue that is being reflected in this 165 to 167? Michael.

Just a few questions and clarifications on the revenue outlook.

What is the contribution from product was this sort of network fees and charging revenue.

That is a that is being reflected in this the 165 to 175 outlook.

Michael P. Rama: Yeah, we expect the trajectory of the split between the service and the product, you know, to still be pretty consistent with what we've seen, you know, in 2023. As we move forward, our mix in the US has been around 75% product and 25% service, and then a kind of flip in Europe. We're about 25% on the product side and about 75% on the owner and operator side. So we're still expecting 2024 to see that continue.

Michael.

Yeah, we expect the trajectory of the split between the service and the product.

To still be pretty consistent what we've seen in 2023 as we move forward.

Our mix at the U S has been around 75% product and 25% service and then kind of flip in Europe.

We're at about 25% on the <unk> on the.

On the product side and about 75% on the.

On the owned and operated sites. So we still expect in 2004 to six that could continue but it gives us the flexibility as we move forward on having to be able to.

Brendan S. Jones: But it gives us the flexibility as we move forward on having to be able to, you know, maximize on either side of the business, either the hardware sales or the service. Yeah, the only modification I'd say to that Sameer is that we're moving rather quickly through 2024 to expand our sales operations in Europe. So while we have a high presence of owner operators there, as Michael just outlined, there's also an opportunity for sales that we're restructuring all of our European offices to begin to take advantage of at a higher penetration rate. So, then the gross margin outlook seems even more conservative than the top line because already in the fourth quarter, you had near 30% excluding extraordinary items. Your product sales are projected to grow, and that should increase overhead absorption. Your charging revenues are also expected to grow, which should add additional gross profit dollars. It seems that the outlook might be cloudy.

Maximize on either side part of the business either the hardware sales or the service side of it.

Yeah, and the only the only modification I I'd say to that Samir is.

We're moving rather quickly through 2024 to expand our sales operations in Europe. So while we have a high presence of owner operator. There is Michael just outlined there is also an opportunity on sales that were restructuring all of our European arm.

Offices to begin to take advantage of at a higher penetration rate.

Understood.

So then.

The gross margin outlook it seems.

Even more conservative than the topline outlook.

Because already in the fourth quarter you have.

New York, 30%, excluding extraordinary items.

See you.

Your product sales are projected to grow.

Sure.

These overhead absorption.

Charging revenues are also expected to grow which should add additional gross profit dollar.

The outlook might be with you.

Well.

The only thing I would say is that for a full service EV infrastructure company today, and we have many contemporaries in the United States. We've seen their earnings results, we are the leading and margin today.

Sameer S. Joshi: Well, the only thing I would say is that for a full-service EV infrastructure company today, and we have many contemporaries in the United States, we've seen their earnings results. We are the leading company in margin today. Now, you know, do we intend to rest on our laurels?

Now.

How do we intend to rest on our laurels, while you've seen we intend to get that the 33%, but you know it's been our history since last year.

Brendan S. Jones: Well, you've seen, we intend to get that to 33%. But, you know, it's been our tradition since last year that when we give guidance, we make sure that we give it from a conservative and realistic perspective. So 33% is we have a fundamental belief in looking at the numbers and the process and the improvements that we can achieve that target. You know, if there are upsides, and we can truly measure that upside and clearly look through the rest of the organization on the finance and accounting side, that there's gonna be nothing that impacts that. We may increase that guidance as we go through the year, but I think 33% is the right target. And again, that's still class leading.

That when we give guidance, we're making sure that we give it from a conservative and realistic perspective. So 33% is we have a fundamental belief and looking at the numbers and the process and the improvements that we can achieve that target.

If theres upsides, and we can truly measure that upside.

And clearly look through the rest of the organization on the finance and accounting side that theres going to be nothing that impacts that we may up that guidance as we go through the year, but I think 33% is the right target and again, that's still class leading we've got one of our competitors that is shown.

Michael P. Rama: We've got one of our competitors that is showing a decrease next year, which is, you know, the complete opposite direction of where we're going. Yeah. Thanks for that. Just one last sort of bookkeeping question. What is the $45.5 million paid before December 31st or subsequent?

A decrease next.

Next year, which is the complete opposite direction to where we're going.

Yeah no understood.

Thanks for that just one last sort of bookkeeping question, what's the $45 5 million.

Dollar.

Bid before December 31st or subsequent to December 31st I'm, just not clear on that.

Sameer S. Joshi: Michael Yeah, I'll jump in that that 45.5 million represented, that was basically the Semiconnect acquisition note that we had out there. So we paid 12 and a half of that during Q4 and the remainder in Q1 of 2024. So with the proceeds generated, and with the capital, we felt it was most prudent and effective to pay down that overhang, that obligation, and really decrease the expense burden on a go-forward.

Michael Yes.

I was hoping that that $45 5 million represented that was basically the semi connect acquisition note that we had out there.

So we paid we paid.

12, and a half of that during in Q4 and the remainder in Q1 of 2024 so.

With the proceeds generated.

With the capital we felt it was most prudent and efficient effective to pay down that that overhang that obligation and really decrease the expense burn on a go forward basis.

Michael P. Rama: Thanks for taking my questions and good luck. Thank you. Thank you. Our final question is coming from Noel Parks. Unknown Speaker Your line: Hi, good afternoon. I just had a couple.

It makes sense.

Thanks for taking my questions and good luck.

Thank you.

Thank you. Our final question is coming from Noel Parks with Tuohy Brothers. Your line is life.

Hi, good afternoon.

Just had a couple.

Noel Augustus Parks: I wondered, could you talk a bit about multifamily? I think you also mentioned, in discussing that briefly, a little bit about hospitality, that sector as well. And I think with multifamily, it's kind of that convergence between consumer adoption and sort of centralized charging. So just interested to hear what you're seeing in that market.

Wondered could you talk a bit about multifamily.

You also mentioned.

In discussing that briefly a little bit about hospitality.

That sector as well and I, just think with multifamily it's kind of that convergence between consumer adoption.

With sort of centralized charging so just be interested to hear what you're seeing.

Seeing in that market.

Brendan S. Jones: Yeah, so the first thing is that we're seeing that segment grow. Next to fleet, we have that as the highest growing segment that we're going after right now. And the industry data sort of backs that up. But, you know, it's a little bit of two models or even three models coming together to service multifamily dwellings. In some multifamily dwellings, you have this single charger model where you don't need any network access, right? In other models, it's a shared space model, where we have to network the chargers, and we have to create access credentials for them.

Yeah. So the first thing is we're seeing that segment grow next to fleet. We have that are the highest growing segment that we're going after right now in the industry that are sort of back that up but you know it's a little bit of a you know two models or even three models you know are coming.

Together to service multifamily dwellings in some multifamily dwellings, you'll have the singer Charger model, where you don't need any next network access right and other models. It's a shared space model, where we have the network the Chargers and we have to create access credentials are to them.

And then another in the third spot spot about multifamily is third party garage based infrastructure, which is not associated with the multi family dwelling, but is contracted out and that requires right now full commercial chargers that are fully networked.

Brendan S. Jones: And then another, and the third point about multifamily is third-party garage-based infrastructure, which is not associated with the multifamily dwelling, but it's contracted out. And that requires, right now, full commercial chargers that are fully networked, but they are reserved for the people who consider that multifamily dwelling their home. Now, what we've done over the last 18 months is make sure that we have a charger for each of those use cases, and we can provide that service. We always recommend networks because with networks, we can build in energy management solutions.

But they are reserved for the.

For the people, who consider that multifamily dwelling they're home now what we've done over the last 18 months is to make sure that we have a charter for each of those use cases.

And we can provide that service, we always rescue med network because with network. We can build in energy management solutions and with fully commercial charges. We can also build an energy management solutions. So you can better work with the facility.

Brendan S. Jones: And with fully commercial chargers, we can also build in energy management solutions. So, you can better work with the facility to determine in the future where you need to curtail use due to a rate card change or a mandate from the public utility, etc. But if it's they don't need a network charger; we have a solution for that. But we're seeing that again, predominantly where it is a dedicated space, a dedicated user, and the owners of the property, in terms of the garage, don't want networking; they just want to charge her there.

To what you in the future to where you need to curtail use due to our rate card change or a mandate from the public utility et cetera, but if it's they don't need a network charter we have a solution for that but we're seeing that again predominantly where it is dedicated space dedicated user and.

The owners of the property in terms of the garage don't want networking. They just want to charge are there.

Noel Augustus Parks: And you know, they'll monitor and charge the customer fee on their own. So all three of those are what we are servicing today. And we see that service increasing in the future. Great, thanks. Thanks a lot for the details. And at Bowie, I wonder, can you sort of outline the number of manufacturing lines you have there, maybe the present number and what the capacity is? Or just some other way to quantify where you stand now and where the ultimate growth is in your footprint there?

And you know they'll monitor and charge the customer fee on their own. So all three of those are what we are servicing today and we see that service increasing in the future.

Great. Thanks, Thanks, a lot for the details and.

Bully I Wonder can you just sort of outline the maybe number of maintenance.

Manufacturing lines you have there maybe.

Number and what the capacity is or just some other.

A way to quantify where do you stand now and where the ultimate growth isn't here and your footprint there.

Brendan S. Jones: Yeah, absolutely. So, you know, we moved out of the facility just now, right? And that was servicing up to 15,000 units. And, you know, now we expect that need to grow exponentially over time here. And that was just a single line that we had there in a very, very cramped space.

Yeah, absolutely. So you know we moved out of the facility just now right and that was servicing up to 15000.

Units and you know now we expect that <unk> need.

Need to grow exponentially over time here.

And that was a single line that we had there.

In a very very cramped space. So now we have three automated lines.

Brendan S. Jones: So now we have three automated lines. One line right now can make up for what we were doing out of the old facilities, with the second two lines, of course, getting that number up. Also, you know, we're working on what we call a standard daylight shift right now, where the technicians come in early in the morning, around seven to eight, and they work to about three on the manufacturing side, and then they do cleanup and restocking before they punch out at the end of their shift. So we're going to get up to the 50,000 unit capacity when we start to add additional shifts and stagger them. And even where needed, if we need capacity for a major fleet player, et cetera, and we have to ramp up quickly, we'll add shifts on Saturday and Sunday, which we've done in the past to make sure that we deliver on time for special customers in unique circumstances. And then just one last one.

One line right now to make up what we're doing out of the old facilities with the second two lines of course getting that number up.

Also you know were working on what we call a standard daylight ship right now where the technicians come in early in the morning around seven to eight and they worked for about three on the manufacturing side and then they do cleanup and restocking before they punch out to the end of their shift so.

We're going to get up to the 50000 unit capacity when we start to add additional shifts and stagger and even where needed if we need capacity for a major fleet player etcetera, and we have that ramp up quickly will add shifts on Saturday and Sunday, which we've done in the past to make sure that we deliver on time.

Special customers in unique circumstances.

Okay, Great and then just one last one interest very interesting to hear you talk about some of the reorganization you've done on the <unk>.

Noel Augustus Parks: It was very interesting to hear you talk about some of the reorganization you've done on the sales side and the reorientation a bit in Europe. And I wondered if you could just talk a bit about the sort of Blink-branded parts of the business versus, for example, on the product side, sort of white-labeled or just, you know, entirely within a fleet customer deployment. Just interested to hear about the role branding plays in your expanding business model going forward. Yeah, so right now, everything that we build is Blink branded. However, there are some circumstances, and we'll let we'll allow an additional brand to be added to that and some additional circumstances, and most of these are OEM or particular customer related. We'll rebrand the entire charger on a custom contract for them. The third-party chargers were fortunate that all the third-party chargers that are being produced that are not Blink manufactured, we have agreements with them that they're all Blink branded. So they come to us pre-branded.

They all are frightened and.

Reorientation a bit in Europe and.

I Wonder if you could just talk a bit about.

The sort of Blink branded.

<unk> of the business versus for example on the on the product side sort of white labeled or or just.

Inherently.

And our fleet customer deployment.

Alright, just interested to hear.

About the role branding plays in your expanding business model going forward.

Yeah, So right now everything that we build is blank branded.

However, there are some sort of.

Circumstances, and will let will allow an additional brand to be added to that and some additional circumstances. In most of these are OEM or a particular customer related we will rebrand the entire charger on accustom contract well for them.

The third party Chargers were fortunate that all of the third party charges that are being that are not manufactured we have agreements with them that theyre all blink branded so they come to us pre branded.

Brendan S. Jones: And, you know, then we ship them out. So, the strategy for Blink, as we said, we're going to move to 80% of all products being Blink manufactured. And we're well on our way to that, and the new buoy facility is going to add greatly to that. Then, when we convert European operations over to Blink manufactured product, which we're beginning, we're actually working on the final stages of the design for that charger now.

And then we ship them out so the strategy for Blake as we said, we're going to move to 80% of all product is blank manufacturers and we're well on our way to that and the new buoy facility is going to add greatly to that then when we convert European operations over to Blink.

Manufactured product, which we're beginning.

We're actually working on the final stages of the design for that charge or now then we're going to do that even further so the future is that 80% of all the products. We sell are built manufactured in branded Blake.

Brendan S. Jones: Then, we're going to do that even further. So, the future is that 80% of all the products we sell are built, manufactured, and branded by Blink. Terrific. Thanks a lot. Thank you. As we currently have no further questions in queue at this time, I would like to hand it back over to Mr. Stelea for any closing remarks. Thank you, Ali. And thank you to all of you who joined us on Blink's fourth quarter 2023 earnings call, as we announced another absolute record quarter of revenue growth and an industry-leading gross margin. This marks the end of this call. We look forward to communicating with you again in 2024. And at this time, you may disconnect. Page PAGE of NUMPAGES www.verbalink.com Page PAGE of NUMPAGES, Thank you, ladies and gentlemen. This does conclude today's call. You may disconnect your lines at this time and have a wonderful day. We thank you for your participation. Yes. Transcribed by https://otter.ai; subtitles by www.zeoranger.co.uk

Terrific. Thanks, a lot.

Banking as we currently have no further questions in queue. At this time I would like to hand, it back over to Mr. Stan <unk> for any closing remarks.

Thank you Ali and thank you to all of you who joined US on <unk> fourth quarter 2023 earnings call as we announced another absolute record quarter of revenue growth and an industry leading gross margins.

This marks the end of this call we look forward to.

Communicating with you in 2024 and at this time you may disconnect.

Okay.

Thank you ladies and gentlemen, this does conclude today's call you may disconnect. Your lines at this time and have a wonderful day, we thank you for your participation.

Okay.

Yeah.

Yeah.

Yeah.

Yeah.