Q1 2024 Blink Charging Co Earnings Call

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Good afternoon, everyone and welcome to the Blink charging company first quarter 'twenty to 'twenty four.

Operator: Good afternoon everyone, and welcome to the Blink Charging Company's first quarter 2024 earnings call. At this time, all participants are in a listen-only mode, and we will open for questions following the presentation. If anyone should require operator assistance during the conference, please press star zero on your phone keypad. Please note this conference is being recorded. I will now turn the conference over to your host, Vitalie Stelea, VP of Investor Relations. Vitalie, it's over to you.

Operator: <unk> coal at this time, all participants are in a listen only mode and we will open for questions. Following the presentation. If anyone should require operator assistance. During the conference. Please press star zero on your phone keypad. Please note. This conference is being recorded.

Vitalie Stelea: I will now turn the conference over to your host fatality layout of VP of Investor Relations Vitale over to you.

Vitalie Stelea: Thank you Jenny and welcome to <unk> first quarter 2024 earnings call on this call today, we have Brendan Jones, President and CEO, Michael Rama, Chief Financial Officer, and Michael <unk>, Our Chief operating officer.

Vitalie Stelea: Thank you, Jenny. And welcome to Blink's first quarter 2024 earnings call. On this call today, we have Brendan Jones, President and CEO, Michael Rama, Chief Financial Officer, and Michael Battaglia, our Chief Operating Officer. The discussions today 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 and other important content, on Winston's Investor Relations website.

Vitalie Stelea: The discussion today will include non-GAAP references these.

Vitalie Stelea: These are reconciled to the most comparable U S. GAAP measures in the appendix of our earnings deck.

Vitalie Stelea: You may find the deck along with the rest of our earnings materials. Another important content at least Investor Relations web site.

Vitalie Stelea: Today's discussions may also include forward-looking statements about our expectations. Actual results may be different from those stated, and the most significant factors that could cause actual results to differ are included on page 2 of the first quarter, 2024 earnings data. Unless otherwise noted, all comparisons are year-over-year.

Vitalie Stelea: Today's discussion May also include forward looking statements about our expectations actual results may be different from those stated and the most significant factors that could cause actual results to differ are included on page two of the first quarter 2020 for earnings.

Vitalie Stelea: Unless otherwise noted all comparisons are year over year.

Vitalie Stelea: And now, regarding the Investor Relations Calendar, the team will be attending the B. Reilly Institutional Conference in Beverly Hills, California on the 22nd of May. Stiefel 2024 Cross-Sector Investor Conference on the 4th of June in Boston and the J.P. Morgan Energy Power Renewables Conference on the 17th of June in New York City. We will be meeting with investors during all of these events. Please also follow our announcements and our website for additional events in the future. Now, I would like to turn the call over to Brendan Jones, our President and CEO. Please go ahead, Brendan.

Vitalie Stelea: Now regarding the Investor Relations calendar.

Brendan S. Jones: We will be attending the B Riley institutional conference in Beverly Hills, California on the 20 <unk> of May.

Brendan S. Jones: Stifel 2024 cross sector Industrial conference on the fourth of June in Boston, and the J P. Morgan Energy power Renewables conference on the 17th of June in New York City.

Brendan S. Jones: We will be meeting with investors.

Brendan S. Jones: We're doing all of these events. Please also following our announcements and our web site for additional events in the future.

Vitalie Stelea: And now I'd like to turn the call over to Brendan Jones, our President and CEO. Please go ahead Brendan.

Brendan S. Jones: Sure, and thank you, Vitalie. Good afternoon, everyone.

Brendan S. Jones: Sure. Thank you Vitale.

Brendan S. Jones: Good afternoon, everyone. Thanks, again for joining us today.

Brendan S. Jones: Let's just jump right into the presentation.

Brendan S. Jones: Thanks again for joining us today. Let's just jump right into the presentation. So let's go to slide four. So 2024 is off to a strong start with revenues for the quarter growing to 73% year over year, and that is a first quarter record of $37.6 million. Blink service revenue increased by 72% to $88.2 million. Now, our charging service revenue increased by 74% to $5 million compared to $2.9 million in the first quarter of 2023, representing a $2.1 million increase in charging revenue. We also recorded a 27% increase in network services fees to $2.1 million for the quarter.

Brendan S. Jones: So let's go to slide four so 'twenty 'twenty four is.

Brendan S. Jones: He is off to a strong start with revenues for the quarter growing to 73% year over year.

Brendan S. Jones: For that is a first quarter record.

Brendan S. Jones: $37.6 million for blank.

Brendan S. Jones: <unk> service revenue increased by 72% to $88 $2 million.

Brendan S. Jones: Now our charging service revenue increased by 74% to 5 million compared to $2 9 million in the first quarter of 2023.

Brendan S. Jones: Representing a $2.1 million increase in charging revenue.

Brendan S. Jones: We also recorded a 27% increase in network services fees to $2 1 million for the quarter.

Brendan S. Jones: And our network servicing fees are reoccurring in nature, and they represent what we call a reliable and high-margin revenue stream for Blink. Blink's company-wide gross profit in the first quarter of 2024 was $13.4 million or 36% compared to $4.5 million or 21% of the first quarter of last year, representing a gross profit increase of $8.9 million or 195%. We contracted, sold, or deployed 4,555 chargers globally in the first quarter of this year.

Brendan S. Jones: And our network servicing fees are reoccurring in nature, and they represent and what we call a reliable and high margin revenue stream for Blake.

Brendan S. Jones: Blinks company wide gross profit in the first quarter of 2024 was $13.4 million or 36% compared to $4 5 million or 21% of the first quarter.

Brendan S. Jones: Of last year, representing a gross profit increase of $8 $9 million or 195% and gross profit.

Brendan S. Jones: We contracted and sold or deployed 4555 charges globally in the first quarter of this year.

Brendan S. Jones: Blink's chargers dispersed approximately 30 gigawatts of energy across all Blink networks globally in Q1 of 2024. As you can see from these numbers, our revenue is becoming increasingly diversified. We have a competitive advantage in our industry because we offer flexible business models, and we can provide L2 and DC chargers, as well as network and charging services. We can be nimble, not only in our response to meeting customers' needs but also in reacting to changes in the market, which allows us to effectively manage revenue generation and profitability.

Brendan S. Jones: Blinks Chargers to Perth disbursed, approximately 30 gigawatts of energy across all Blake networks globally in Q1 in 2024.

Brendan S. Jones: As you can see from these numbers our revenue is becoming increasingly diversified.

Brendan S. Jones: We have a competitive advantage and vendor in our industry, because we offer flexible business models.

Brendan S. Jones: And we can provide L to M D C Chargers as well as network and charging services, we can be nimble not only in our response to addressing customers' needs, but also in reacting to changes in the market, which allows us to effectively manage revenue generation.

Brendan S. Jones: And profitability.

Brendan S. Jones: Our first quarter was characterized by strong performance by the blame team and is indicative of healthy customer demand.

Brendan S. Jones: Our first quarter was characterized by strong performance by the Blink team and is indicative of healthy customer demand. Furthermore, it demonstrated our ability to leverage our manufacturing and logistical strengths to meet that demand. Vertical integration is working for Blink. If we move to slide five, for 2024, we are keeping our full year 2024 revenue target unchanged at $165 million to $175 million. Now, while we had a strong Q1, which we, by the way, are very, very excited about, we are also seeing some lower bookings in April.

Brendan S. Jones: Furthermore, demonstrating our ability to leverage our manufacturing and logistical strengths to meet that demand vertical integration is working for Blake.

Brendan S. Jones: If we move to slide five for 2024, we are keeping our full year 2024 revenue target unchanged at 165 million to $175 million now, while we had a strong Q1, which we by the way are very very excited about we are also seeing some lower.

Brendan S. Jones: Bookings in April we are closely monitoring the market and it's too early to tell if we will see an impact in the full year revenue targets. We regularly review our pipeline and we will provide an update if necessary in the future. However, as a result of several companies exiting the charging space or reducing.

Brendan S. Jones: We are closely monitoring the market, and it's too early to tell if we will see an impact on the full-year revenue targets. We regularly review our pipeline and will provide an update, if necessary, in the future.

Brendan S. Jones: However, as a result of several companies exiting the charging space or reducing their presence, along with confirmation of some very strong orders in the Q3 and Q4 timeframe, we expect opportunities for additional growth in the second half of 2024. We are also maintaining our target of achieving a positive IBIDA run rate by December of 2024, as well as our full year 2024 gross margin target of 33%, which you've already seen that we overachieved in the first quarter.

Brendan S. Jones: Their presence along with confirmation of some very strong orders in the Q3 and Q4 timeframe, we expect opportunities for additional growth in the second half of 2024.

Brendan S. Jones: We are also maintaining our target of achieving positive EBITDA run rate by December of 2024, as well as our full year 2020 for gross margin margin target of 33%, which you've already seen and that we've over achieved in the first quarter.

Brendan S. Jones: If we jump to slide six, we have recently strengthened our balance sheet and are properly capitalized to achieve our adjusted EBITDA run rate target. Our cash and cash equivalents at March 31st, 2024 were $93.5 million. Now, let's move on to slide seven.

Brendan S. Jones: If we jump to slide six we have recently strengthened our balance sheet and are properly capitalized to achieve our adjusted EBITDA run rate target, our cash and cash equivalents at March 31, 2024 were $93.5 million.

Brendan S. Jones: Let's take a minute on slide seven to discuss what is happening in the industry, with demand for EVs and EV infrastructure. Despite reports that EV sales are slowing, Kelly Blue Book indicates that first quarter 2024 EV penetration was 7.3% of sales in the U.S., which is an increase of 2.6% versus Q1 2023. sequentially, there was a bit of a decline when you view EVs in terms of the number of vehicles sold as compared to Q4 of 2023. This decline is primarily due to Tesla volumes.

Brendan S. Jones: Now, let's move on to slide seven let's take a minute on slide seven to discuss what is happening in the industry.

Brendan S. Jones: With demand for Evs and EV infrastructure. Despite reports that EV sales are slowing.

Brendan S. Jones: What are your Blue book indicates that first quarter 'twenty 'twenty four EV penetration was seven 3% of sales in the U S, which is an increase of 2.6% versus Q1 of 2023.

Brendan S. Jones: Sequentially, there was a bit of a decline when you view evs in terms of the number of vehicles sold as compared to Q4 of 2023. This decline is primarily due to Tesla volumes as the other nine leading EV manufacturers, excluding Tesla reported EV sales growth up over 50.

Brendan S. Jones: As the other nine leading EV manufacturers, excluding Tesla, reported EV sales growth of over 50% in Q1 of 2024, and that included Hyundai, Kia, Ford, Mercedes, Cadillac, BMW, and others. Additionally, we saw on March 27, 2024, that Hyundai revealed an ambitious $50 billion investment to secure the top three spot in the EV market. We continue to see growth in Europe, and specifically in the markets where we generate a significant amount of charging service revenue.

Brendan S. Jones: Or said in Q1 of 'twenty 'twenty, four and that includes Hyundai Kia Ford Mercedes Cadillacs, BMW and others.

Brendan S. Jones: Definitely we saw on March 27, 2024 that Monday revealed an ambitious 50 billion investment to secure the top three spot in the EV market.

Brendan S. Jones: We continue also to see growth in Europe, and specifically the markets, where we generate a significant amount of charging service revenue in Belgium, the net and.

Brendan S. Jones: In Belgium, the Netherlands, the UK, and Ireland, EVs continue to gain significant momentum with robust growth. In Belgium, battery electric vehicle registrations increased nearly 50% in Q1 2024 versus Q1 2023. In the Netherlands, there was growth of nearly 20% versus last year.

Brendan S. Jones: The Netherlands, UK and Ireland E V has continued to gain significant momentum with robust growth.

Brendan S. Jones: In Belgium battery electric vehicle registrations increased nearly 15% in Q1 2024 versus Q1 2023 in the Netherlands, there was growth of nearly 20% versus last year and then the U K. According to the Guardian newspaper a record number of charters were installed in Q1.

Brendan S. Jones: And in the UK, according to the Guardian newspaper, a record number of chargers were installed in Q1 of 2024. The UK also recorded a number of battery electric vehicle registrations this month of March, representing nearly 25% of all cars sold in the country. In the U.S., McKinsey currently forecasts over 28 million cars will be needed by 2030. And globally, EV infrastructure spending is forecasted to be about 260 billion by 2030, with about 90% of those charges being L2. Moreover, industry data shows that EV infrastructure significantly lags behind the current EV fleets on the roads today in the U.S. and also lags to some extent in Europe.

Brendan S. Jones: Of 2024.

Brendan S. Jones: The UK also recorded a number of battery electric vehicle registration. This month's a mark March representing nearly 25% of all coal car sold in the country.

Brendan S. Jones: In the U S. Mackenzie currently forecast over 28 million charges will be needed by 2030 and globally EV infrastructure spending is forecasted to be about 260 billion by 'twenty 30, with about 90% of those charters being L too.

Brendan S. Jones: Now Moreover, industry data shows that EV infrastructure significantly lags behind the current EV fleets on the roads today in the U S and also likes to some extent in Europe.

Brendan S. Jones: We also see increasing consolidation in our industry, with certain of our competitors choosing to reduce their presence or, in some cases, even pull back entirely. Blink sees these as opportunities to grow and deploy our disciplined operating models in both the L2 and DC fast charger market. Now let's pivot over to slide 8. You can see that cumulatively as of the end of Q1 of 2024, Blink has contracted, sold, or deployed nearly 95,000 chargers since the company's inception, on the way to exceeding 100,000 very soon. Now, if we look at that geographically, 77% of the total company-wide number is attributed to North America, and then 23% to Europe and some other international locations. Now, let's move over to slide nine.

Brendan S. Jones: We also see increasing consolidation in our industry with certain of our competitors choose them to reduce their presence or in some cases, even pull back entirely.

Brendan S. Jones: Blink sees these as opportunities to grow grow and deploy our disciplined operating model and both the L. Two and D C fast sorts of markets.

Brendan S. Jones: Now, let's pivot over to slide eight.

Brendan S. Jones: You can see that cumulatively.

Brendan S. Jones: The end of Q1 of 'twenty 'twenty four Blink is contracted sold or deployed nearly 95000 charges since the company's inception, all the way to exceed 100000 very soon now if we look at that geographically, 77% of the total companywide number is attributed to North America.

Brendan S. Jones: And then 23% to Europe and some other international locations now.

Brendan S. Jones: Now, let's move over to slide nine.

Brendan S. Jones: You can see our innovative product portfolio and flexible solutions for both L2 chargers and high-powered DC fast chargers. The variety of products we offer appeals to a broad and diverse range of customers. Our Series 7 and 8 chargers, which are produced in-house in the U.S. at our Bowie, Maryland facility, are the most popular Level 2 models among our customers. Now, if we move to slide 10, it shows a representative group of our customer base, including many recognizable names across commercial entities, multifamily complexes, planned communities, healthcare facilities, fleets, and municipalities around the world.

Brendan S. Jones: You can see our innovative product portfolio and flexible solutions for both L. Two Chargers and high powered DC fast Chargers the variety of products, we offer appear to appeal to a broad and diverse range of customers our series seven and eight Chargers, which are produced.

Brendan S. Jones: In house in the U S at our Bowie, Maryland facility are the most popular level to model among our customers.

Brendan S. Jones: Now if we move to slide.

Brendan S. Jones: 10, it shows a representative group of our customer base, including many recognizable names across commercial entities multifamily complexes planned community health care facilities fleets and municipalities around the world as we said before we take advantage of places where vehicles.

Brendan S. Jones: As we said before, we take advantage of places where vehicles idle and sit. And just last week, we announced that Blink was selected as one of the official electric vehicle chargers and network service providers for the state of New York. We are excited to have this opportunity to work in close cooperation with New York authorities to electrify the state and municipal fleets, and provide public charging for employees, for residents, and for visitors of the city. So with that, I will now pass the presentation over to Michael Rama, our CFO. Michael, take it away!

Michael P. Rama: I O N sit and just last week, we announced that Blink was selected as one of the official electric vehicle Chargers and network service providers for the state of New York.

Michael P. Rama: We are excited to have this opportunity to work in close cooperation with New York authorities to electrify the state and municipal fleets.

Brendan S. Jones: Provide public charging for employees for residents and for visitors of the city. So with that I will now pass the presentation over to Michael Rama, Our CFO, Michael take it away.

Michael P. Rama: Thank you, Brendan, and good afternoon, everyone. Turning to slide 12, total revenue in the first quarter of 2024 grew 73% year-over-year to $37.6 million. Product sales in the first quarter of 2024 were $27.5 million, an increase of 68% over the same period in 2023. This was primarily due to customers purchasing greater volumes of our commercial grade products. First quarter 2024 service revenues, which consists of charging service revenues, network fees, and car share revenues, were $8.2 million, an increase of 72% compared to the first quarter of 2023. The year-over-year growth was primarily driven by greater utilization of our chargers in the U.S. and internationally.

Michael P. Rama: Thank you Brendan and good afternoon, everyone.

Michael P. Rama: Turning to slide 12 total revenue in the first quarter of 2024 grew 73% year over year or 37 $6 million.

Michael P. Rama: Sales in the first quarter of 2024.

Michael P. Rama: $27 $5 million, an increase of 68% over the same period in 2023. This was primarily due to customers purchasing greater volumes of our commercial charges.

Michael P. Rama: First quarter 2024 service revenues, which consist of charging service revenues network fees and coarser revenues were $8 $2 million, an increase of 72% compared to the first quarter of 2023.

Michael P. Rama: The year over year growth was primarily driven by greater utilization of our charters in the U S and internationally the increase nor charges unblank networks and revenues associated with our car share programs.

Michael P. Rama: The increased number of chargers on Blink networks and revenues associated with our car share program. Now, gross profit for the first quarter of 2024 was $13.4 million, an increase of 195% or $8.9 million over the same period last year. As a percentage of revenues, gross margin was 36% in Q1 2024, compared to 21% in the same period of the prior year. Importantly, we improved our gross margin in Q1 by nearly 200% on revenue growth of 73%. This is primarily due to the shift to higher-margin products, increased vertical integration of charger manufacturing, as well as higher gross margins from service revenue.

Michael P. Rama: Gross profit for the first quarter of 2024 was $13 $4 million, an increase of 195% or $8 $9 million over the same period last year.

Michael P. Rama: As a percentage of revenues gross margin was 36% in Q1 2024 compared to 21% in the same period of the prior year.

Michael P. Rama: Importantly, we improved our gross margin in Q1, nearly two under percent on revenue growth of 73%. This.

Michael P. Rama: This is primarily due to a shift to higher margin product.

Michael P. Rama: Increased.

Michael P. Rama: Vertical integration of charger manufacturing as well as higher gross margins from service revenues now.

Michael P. Rama: Operating expenses in the first quarter of 2024 were $30.9 million, which is a decrease of 13% or an improvement of $4.5 million. This three-query is especially notable when compared to total operating expenses as a percentage of revenues, which show nearly an 8,100 basis point improvement in operating expenses year over year. Within this number, compensation expense was down $7.8 million or 34% year-over-year, and SG&A was down 8% or about $700,000 versus the same period last year.

Michael P. Rama: Operating expenses in the first quarter of 2024 were $39 million, which is a decrease of 13% or an improvement of $4 $5 million. This strict curious is especially notable when compared to total operating expenses as a percentage of revenues, which showed nearly 8100 basis.

Michael P. Rama: Points improvement in operating expenses year over year.

Michael P. Rama: Within this number compensation expense was down $7 8 million or 34% year over year, and SG&A was down 8% or about $700000 versus the same period last year.

Michael P. Rama: Excluding the impact of the noncash charge related to a change in fair value of our consideration payable of $1 $7 million. The actual reduction in overall operating expenses in Q1 would have been $6 2 million or 18% versus the prior year.

Michael P. Rama: Excluding the impact of the non-cash charge related to a change in fair value of a consideration payable of $1.7 million, the actual reduction in overall operating expenses in Q1 would have been $6.2 million, or 18% versus the prior year. This is the result of reductions in executive compensation and discipline, cost reductions, and cost avoidance actions achieved through continuous improvement efforts.

Michael P. Rama: This is the result of reductions in executive compensation and disciplined cost reductions and cost avoidance actions achieved through continuous improvement efforts.

Michael P. Rama: Adjusted EBITDA for the first quarter of 2024 was a loss of $10.2 million, compared to a loss of $17.8 million in the prior year period. This is an improvement of $7.6 million year-over-year. Sequentially, Q1 Adjusted EBITDA improved $3.8 million compared to Q4 2023, a significant improvement from just one quarter. Adjusted EBITDA for the three months ended March 31st, 2024 excludes the impact of stock-based compensation, acquisition-related costs, estimated losses related to underperforming assets of a subsidiary, and the change in fair value related to a consideration payable.

Michael P. Rama: Adjusted EBITDA for the first quarter of 2024 was a loss of $10 2 million.

Michael P. Rama: Compared to a loss of $17 8 million in the prior year period. This is an improvement of $7 $6 million year over year sequentially Q1, adjusted EBITDA improved $3 $8 million compared to Q4, 2023, and a significant improvement from just one quarter.

Michael P. Rama: Adjusted EBITDA for the three months ended March 31, 2024 excludes the impact of stock based compensation acquisition related cost estimate of loss related to underperforming assets of a subsidiary and the change in fair value related to consideration payable.

Michael P. Rama: Now, earnings per share for the first quarter of 2024 was a loss of $0.17 per share, compared to a loss of $0.53 per share in the prior year period. As of March 31, 2024, the weighted average number of shares outstanding was 99.9 million shares. As of March 31st, 2023, the weighted average number of outstanding shares was 56.5 million shares. Adjusted earnings per share for the first quarter of 2024 was a loss of $0.13 per share compared to a loss of $0.49 per share in the prior year period.

Michael P. Rama: Earnings per share for the first quarter of 2024 was a loss of <unk> 17 per share compared to a loss of 53 per share in the prior year period as of March 31, 2024, the weight weighted average shares outstanding was 99.9 million shares as of March 31 2023.

Michael P. Rama: Average shares outstanding was $56 5 million shares.

Michael P. Rama: Adjusted earnings per share for the first quarter of 2024 was a loss of 13 cents per share compared to a loss of 49 per share in the prior year period non-GAAP adjusted earnings per share is defined as net income, which excludes the amortization of intangible assets acquisition related costs estimated loss related to.

Michael P. Rama: Non-GAAP adjusted earnings per share is defined as net income, which excludes the amortization of intangible assets, acquisition-related costs, estimated losses related to underperforming assets of a subsidiary, and the change in fair value related to consideration payable divided by the way an average share is outstanding. Now turning to slide 13.

Michael P. Rama: Underperforming assets of a subsidiary and the change in fair value related to consideration payable divided by the weighted average shares outstanding.

Michael P. Rama: Now turning to slide 13, you can see the Q1 2024 reflects significant progress in revenue growth when compared to the same periods in 2023 and 2022.

Michael P. Rama: You can see that Q1 2024 reflects significant progress in revenue growth when compared to the same periods in 2023 and 2022. Two years ago, our Q1 revenue was below $10 million, and in Q1 2024, it was about $38 million, a four-times growth trajectory in just two years. However, what we believe is equally important about this quarter is that we generated a 36% gross margin and reduced our total operating expenses by over $4.5 million.

Michael P. Rama: Two years ago, our Q1 revenue was below $10 million and in Q1 2024, it was about $38 million.

Michael P. Rama: A four times growth trajectory in just two years. However, what we believe is equally important about this quarter is that we generated a 36% gross margin and reduced our total operating expenses by over $4 $5 million. So in Q1 revenue was up 73% gross profit was up.

Michael P. Rama: So in Q1, revenue was up 73%, gross profit was up nearly 200%, and total operating expenses went down 13%. And if you now turn to page 14, we are showing the quarterly growth in our service revenue. Just three years ago, we had less than $350,000 in service quarterly revenue. In Q1 2024, we recorded $8.2 million in service revenues. That is a 24 times increase at 189% K. The impressive growth is due to the scale and synergies we obtain from acquisitions, as well as new and innovative ways to deliver our service.

Michael P. Rama: Early 200% and total operating expenses went down 13%.

Michael P. Rama: And if you now turn to page three.

Michael P. Rama: 14 here, we are showing the quarterly growth in our service revenues.

Michael P. Rama: Three years ago, we had less than $350000 in service quarterly revenues in Q1, 2024, we recorded $8 $2 million of service revenues that is a 24 times increase at a 189% CAGR the.

Michael P. Rama: The impressive growth is due to scale and synergies we obtained from acquisitions as well as new and innovative ways to deliver our services.

Michael P. Rama: After the balance sheet, cash and cash equivalents at March 31st, 2024 were $93.5 million. We used $21.5 million of cash in operating activities in Q1 2024, that is nearly $3 million less in Q1, less than Q1 of last year. As of March 31, 2024, we fully paid off promissory notes and interest of $45.5 million related to the Semiconnect acquisition, and subsequent to the end of the first quarter, Blink paid off $7 million of notes payable associated with the Envoy Act. Currently, we have no cash obligations, and no cash debt obligations on the ballot.

Michael P. Rama: After the balance sheet cash and cash equivalents at March 31, 2024.

Michael P. Rama: $93 $5 million, we used $21 $5 million of cash in operating activities. In Q1, 2024 that is nearly $3 million less than Q1.

Michael P. Rama: Less than Q1 of 'twenty.

Michael P. Rama: Last year.

Michael P. Rama: As of March 31, 2024, we fully paid off promissory notes and interest of $45 $5 million related to the semiconductor acquisition and.

Michael P. Rama: Subsequent to the end of the.

Michael P. Rama: First quarter Blink paid off $7 million of notes payable associated with the envoy acquisition. Currently we have no cash obligation no cash debt obligations on the balance sheet.

Brendan S. Jones: In summary, we had a record Q1 for both revenue, gross margin, and adjusted EBITDA, showing significant improvements. This is the result of meticulous planning and decisive actions that started two years ago, and we will continue to structurally adjust Blink as we move forward. This concludes my prepared remarks. I'll turn the call back over to Brendan.

Michael P. Rama: In summary, we had a record Q1 for both revenue gross margin and adjusted EBITDA showing significant improvements. This is a result of the meticulous planning and decisive actions that started two years ago and we will now we will continue to structurally adjust blink as we move forward.

Brendan: This concludes our prepared remarks, I'll turn the call back over to Brendan Brennan.

Brendan S. Jones: Thanks, Michael. So now, let's wrap this up.

Brendan: Thanks, Michael So now let's wrap this up obviously you can all tell we are very pleased with our team's performance in Q1 of 2024.

Brendan S. Jones: Obviously, you can all tell we are very pleased with our team's performance in Q1 of 2024. As you can see from the numbers Michael just reviewed, Blink continues its positive momentum in the marketplace. We showed again that we can deliver. We delivered 73% growth in revenues and 36% gross margin while improving adjusted EBITDA by $7.6 million. At the same time, we reduced our operating expenses by 13%, which is a reduction of $4.5 million. Additionally, Blink now has zero cash debt. We paid off all of our cash debt obligations.

Brendan S. Jones: As you can see from the numbers Michael just reviewed Blink continues its positive momentum in the marketplace.

Brendan S. Jones: We showed again that we can deliver we delivered 73% growth in revenues and 36% gross margin, while improving adjusted EBITDA by $7.6 million at the same time, we reduced our operating expense by 13% which is.

Brendan S. Jones: The reduction of $4 $5 million.

Brendan S. Jones: Additionally, Blink now has zero cash that we paid off all of our cash debt obligations.

Brendan S. Jones: Our number one priority right now is to continue to structurally adjust the company for future opportunities, as well as changes in the market conditions. Blink Synergy, cost cutting, and cost avoidance activities will continue throughout 2024. Our goal is profitability and cash generation that will ensure that Blink can grow sustainably into the future. We fundamentally believe that this is achievable, especially with our culture of continuous improvement that is already showing positive results.

Brendan S. Jones: Our number one priority right now is to continue to structurally adjust the company for future opportunities as well as changes in the market conditions.

Brendan S. Jones: Blink synergy cost cutting and cost avoidance activities will continue throughout 2024.

Brendan S. Jones: Our goal is profitability and cash generation that will ensure that link can grow sustainably into the future.

Brendan S. Jones: We fundamentally believe that this is achievable, especially with our culture of continuous improvement that is already showing positive results.

Brendan S. Jones: Again, very proud of our team and the effort this past quarter, but we are even more excited about the future of Blink. We remain committed to making Blink more flexible, adaptable, and, most importantly, for this industry, financially sustainable as we continue to charge towards profitability. Now, that concludes our formal remarks. I think we're ready to turn it over to questions. Thanks.

Brendan S. Jones: Again, very proud of our team and the effort this past quarter, but we are even more excited about the future of blank.

Brendan S. Jones: We remain committed to making blink more flexible adaptable and most importantly for this industry financially sustainable as we continued to charge towards profitability now that concludes our formal remarks, I think we're ready to turn it over for some questions. Thanks.

Speaker Change: Thank you very much we are now opening the floor for questions. If you have any questions. Please press star one on your phone keypad now a confirmation time will indicate that your line is Nicky you May press star two if you would like to remove your question from Nicky So any participant.

Operator: Thank you very much. We are now opening the floor to questions. If you have any questions, please press star 1 on your phone keypad now. A confirmation tone will indicate that your line is in the queue. You may press star 2 if you would like to remove your question from the queue. For any participants using speaker equipment, it might be necessary to pick up your handset before you press the key. Please hold a moment whilst we poll for questions. Thank you. Your first question is coming from Chris Pierce of Needham & Company. Chris, your line is live.

Christopher Alan Pierce: Speaker equipment, it might be necessary to pick up your handset before you buy stickies pays hold a moment, whilst we poll for questions.

Christopher Alan Pierce: Thank you. Your first question is coming from Chris P. S of Needham and company Chris Your line is live.

Christopher Alan Pierce: Oh, hey, good afternoon, everyone. Thanks for taking the questions. On the April softness, was this, I'm assuming this was before the Tesla news? I think calendar-wise that lines up, but I'm just curious because the Tesla news, we're hearing a lot about the superchargers and the Level 3 chargers that they have out there, but they had been moving down into the Level 2 space and had won some hospitality deals with Hilton and, I believe, Best Western. So I just do those.

Christopher Alan Pierce: Oh, Hey, good afternoon, everyone. Thanks for taking the questions on the April softness was this I'm assuming this is before the Tesla news I think the calendar wise that lines up but I'm just curious because it tests. The news we're hearing a lot about the super Chargers and level III charges that they have out there, but they had been moving down into the level two space and had won some hospitality.

Christopher Alan Pierce: He deals with Hilton and I believe best Western So I guess do those are you optimistic about the <unk> being reopened and that kind of creating a revenue opportunity for you guys. I'm just kind of wanted to get a sense, but yeah. I mean sure we we can't get into specifics, but yeah.

Brendan S. Jones: Are you optimistic about those deals being reopened and that kind of creating a revenue opportunity for you guys? I just kind of want to get a sense. Yeah, I mean, sure. We can't get into specifics, but You know, I think the thing that we can say factually is that we received quite a bit of inbound inquiries already when the news came out, and we put ourselves in a position that we're poised to take advantage of them when they actually materialize into an offer, an order, and an order.

Brendan S. Jones: So yes, it has created some momentum for us. And, you know, we have the products, services, and charges to take advantage of that. And we intend to do so. Is that level two momentum, or just broad-based across levels two and three? So we've actually received inquiries on both. Okay, okay. And then just on the cash burn versus the cash balance and getting this year's positive adjusted EBITDA, I don't want to specifically ask about 25, but it just kind of looks like there might be some tightness going into the end of the year based on Q1 cash losses. How should we think about the remainder of the year and kind of potential financing needs as you see it?

Brendan S. Jones: I think the thing that we can say factually as we received quite a bit of inbound client inquiries already.

Brendan S. Jones: When the news came out and we put ourselves in a position that we're poised to take advantage of them when they actually materialize into an offer order in order. So yes. It is creating some momentum.

Brendan S. Jones: For Us and you know, we have the products and services and charges to take advantage of that and we intend to do so.

Brendan S. Jones: Is that level to orient them or just broad based across level, two and level. So we know exactly when.

Brendan S. Jones: We've actually receive inquires on both.

Brendan S. Jones: Okay. Okay, and then just on the cash burn versus the cash balance and gait exiting this year of positive adjusted EBITDA I don't want to specifically ask about 25, but just kind of it looks like there may be some tightness getting going into the end of the year based on Q1 cash losses, how should we think about the.

Brendan S. Jones: The remainder of the year and kind of potential financing needs as you see it.

Brendan S. Jones: Yeah, so as we've stated, we have enough cash on the books to get through EBITDA positives. We're not going to make any statements just yet in terms of free cash flow for 2025, although we've said previously that is the goal. So it's that balance of when that goal is achievable. We are investigating opportunities that we may have as we move into 2025. But as we've said and said before, we will not be engaging in any equity raises or dilution-like activities throughout this year. But we'll have more to come on that topic as we get into, likely, Q3 and Q4 this year. Michael Rama, any additional follow-up questions on that? No, I think you're, no, not for me.

Speaker Change: Yeah. So as we've stated we have enough cash on the books to get through it but a positive.

Brendan S. Jones: We're not going to make any statements just yet on in terms of free cash flow for 2025, Although we've said previously that is the goal. So its that balance to when does that goal is achievable.

Speaker Change: We are investigating opportunities that we may have as we move into 2025.

Brendan S. Jones: But as we've said and said before we will not be engaging in any equity raises or dilution like activities throughout this year, but we'll have more to come on that topic as.

Speaker Change: As we get into our most likely Q3 and Q4 this year, Michael Rama any additional follow up questions on that.

Michael P. Rama: No, I think you're, no.

Speaker Change: No I think you know.

Speaker Change: Not for me sorry.

Speaker Change: Okay. Thank you.

Michael P. Rama: Thank you very much. Your next question is coming from Craig Irwin of Roth and KN <unk>. Your line is life.

Operator: Thank you very much. Your next question is coming from Craig Irwin of Roth MKM. Craig

Craig Edward Irwin: Good afternoon, and congratulations on the really strong revenue order. So Brendan, you guys are crushing it on the gross margin side, right? You're, you're, well above the, uh, guide for 33, coming in at almost 36 this quarter. Can you maybe talk a little bit about, um, you know, where this strength is coming from?

Craig Edward Irwin: Hi, good afternoon, congratulations on the really strong revenue quarter.

Craig Edward Irwin: So Brendan you guys are crushing it on the gross margin side right, you're you're well above the guide for 33 coming in almost 36. This quarter can you maybe talk a little bit about.

Brendan S. Jones: And, you know, you maintained your guide for this year. So should we think about, you know, potential expenses or inefficiencies for gross margins as Bowie Maryland starts to ramp? Or are there other business mix items that you may be factoring in there in the guidance that has you give a number that's, you know, consistent with what you guided before, but lower than recent? Yeah, recent.

Craig Edward Irwin: Where the strength is coming from and you maintained your guidance for this year. So should we think about you know potential.

Brendan S. Jones: Expenses are inefficiencies are for gross margins as Bowie, Maryland Dodge starts to ramp or are there. Other business makes the items that you may be factoring in there in the guidance that that how did you give a number that's a you know.

Brendan S. Jones: Consistent with what <unk> guided before.

Brendan S. Jones: Lower than recent act, yeah recently I mean.

Brendan S. Jones: I mean, you know, there's always the constant challenge of working ourselves out of some legacy product, and we've been doing a fairly efficient job of that. There's still a little bit to go, but it's nothing. It's not a game changer.

Brendan S. Jones: You know Theres always you know continuing to work ourselves out of some legacy product and we've been doing a fairly efficient job of that there's still a little bit to go.

Brendan S. Jones: But it's nothing it's not a game changer.

Brendan S. Jones: And we took some of that this quarter as well. So, you know, it really is two things that add up to this equation. It's continuing to push hard on vertical integration and take cost out of the equation, and that's both on the U.S. production side and on the parts manufacturing and subassembly side in India. Then also, it's pushing for an increase in Europe of more efficiencies and cost savings on the owner-operator model, where that revenue that we're generating off of chargers we own and operate continues to be a class-leading margin. And that also has a big positive effect.

Brendan S. Jones: And we took some of that this quarter as well. So it you know it really is two things that add up to this equation is continuing to push hard on vertical integration.

Brendan S. Jones: And take cost out of the equation and that that's both in the U S production side and then the parts manufacturing and sub Assembly side in India. Then also is pushing for an increase in Europe of more efficiencies and cost savings on the owner operator model or that revenue that we're generating off of charters, we own and operate.

Brendan S. Jones: <unk> continues to be a class leading margin and that also has a big positive effect not only that revenue growing considerably a month over month quarter over quarter year over year, but also it's becoming more profitable when you compare us to other marketplaces in terms of their margin on owner operator.

Brendan S. Jones: Not only is that revenue growing considerably month over month, quarter over quarter, year over year, but it's also becoming more profitable. When you compare us to other companies in the marketplace in terms of their margin on owner-operators, you know, we're the gold standards. We set the bar for everybody else there. We're well above EVGO and others in terms of margin on the owner-operator side of the equation. So, you wrap those two up together.

Brendan S. Jones: Yeah, we were the gold standards, we set the bar for everybody else there were well above E V go and others in terms of our margin on the owner operator side of that equation. So you wrap those two up together.

Brendan S. Jones: You take a look at the networking fees that we get and that those are scalable from L2 to DC fast chargers and then the added software that we're going to be coming out in the market with around energy management and other services that we need in the marketplace to grow, and it continues to add to that margin. And that's why we really believe the flexible business model combined with operating in Europe and the United States and doing both the sales of hardware and services and networking services and the owner-operater models are really making us flexible and adaptable as the market changes. Thank you so much for that.

Brendan S. Jones: You take a look at we.

Brendan S. Jones: The networking fees that we get and that Theres, a scalable from L. Two D. C. Fast charger and then added software that we're going to be coming out in the market with around energy management and other services that we need in the marketplace to grow and it continues to add to that margin and that's why we really believe the flexible business model.

Brendan S. Jones: <unk> combined with operating in Europe, and the United States and doing both the sales of hardware and services and networking services and the owner operator models really making us flexible and adaptable as the market changes.

Speaker Change: Excellent. Thank you so much for that my second question is about the the progress towards positive EBITDA at the end of the year. So if we're thinking you know, it's not really a positive EBITDA quarter, but positive EBITDA months.

Craig Edward Irwin: My second question is about the progress towards positive EBITDA at the end of the year. So if we're thinking, you know, it's not really a positive EBITDA quarter but a positive EBITDA month, so that you're breakeven, you need a fairly substantial move on either lower costs or higher margins if we assume that you executed the high end of your guidance for revenue. So, you know, can you maybe help us understand how we balance lower SG&A costs and salaries and comp as you consolidate these five facilities down to, down to, you know, one and reposition the business? I guess there's probably outside expenses too that you're eliminating. Can you maybe just help us frame this out? And since this is a long way from breakeven, you'd never think, right?

Craig Edward Irwin: So that your breakeven.

Craig Edward Irwin: You need a fairly substantial move on.

Craig Edward Irwin: On either lower cost or higher margins. If if we assume that you executed at the high end of your guidance for revenue.

Craig Edward Irwin: So you know can you maybe help us understand.

Craig Edward Irwin: How we balance lower.

Craig Edward Irwin: Lower SG&A costs, and salaries and comp as you consolidate these five facilities down to down to you know one and reposition the business I guess theres, probably outside expenses to that you're you're eliminating can you maybe just help us to frame. This out because consensus has a long way from breakeven EBITDA right.

Brendan S. Jones: So where I can, there's certain activities we can't disclose yet because of the sensitivity of them, as you probably are aware, but we've announced that we are going to, and we'll have the spinoff completed this year, Blink Mobility, and that includes the Blue LA car service. So that is going to remove a large chunk of it in that simple action. Then also, we are engaged in Cost Reduction Activities across a multiplicity of the businesses. That will be revealed more as we move into Q2 and indeed in Q3.

Speaker Change: So where I can there are certain activities, we can't disclose yet because of the sensitivity of them and as you probably are aware, but we've announced that we're going to and we will have the spinoff completed this year.

Brendan S. Jones: Blink mobility.

Brendan S. Jones: That includes the blue or lay car service.

Brendan S. Jones: So that has been a remove a large chunk of it and that simple action.

Brendan S. Jones: And then also we are engaged in.

Brendan S. Jones: And you know cost reduction activities across a multiplicity of of the businesses that will be revealed more as we move into Q2 and indeed in Q3 and those include.

Brendan S. Jones: And those include expense reductions. There is some structurally adjusting certain businesses and reorganizations that will result in savings on headcount, et cetera, etc. And there's also the closing of non-performing assets. We'll have an announcement shortly on one non-performing asset that we're eliminating. We've successfully sold it. It is below the line right now, but there's a significant net savings in terms of cash outlay on a monthly, quarterly, and yearly basis that will pay off.

Brendan S. Jones: Expense reductions.

Brendan S. Jones: There there is some structurally adjusting certain businesses and reorganizations that were revolt a result in savings on head count et cetera.

Brendan S. Jones: In there and there's also the closing of nonperforming assets.

Brendan S. Jones: We'll have an announcement shortly on one nonperforming I said that we're eliminating we've successfully sold it.

Brendan S. Jones: It is below the line right now, but there's a significant net savings in terms of a cash outlay on a monthly quarterly and yearly basis that will net and we have at least one or two of those more to go. So when you add it all up our team that monitors that they have all these in the different slots in <unk>.

Brendan S. Jones: And we have at least one or two more to go. So, when you add it all up, our team that monitors that, they have all these in the different slots and levers where they come in. We see ourselves right now at the current market rate, and at the current revenue streams that are coming in, we see ourselves achieving the goal based on the cuts that we have planned, the spin-off, et cetera. So, we still feel confident about that. Mr. Rama or Mr. Battaglia, any additional comments for Craig? It's a really good question that we expected.

Brendan S. Jones: Levers, where they come in we see ourselves right now at the current market.

Speaker Change: A market rate and at the current revenue streams that are coming in we see ourselves achieving the goal based on the cuts that we have planned the spin off et cetera.

Speaker Change: So we still feel confident about that Mr. Rama or Mr. Betabia any additional comments for Craig's says, it's a real good question that we expected.

Brendan S. Jones: No my only additional comment would be Craig that this is and this is Michael appetite.

Michael Battaglia: No, my only additional comment would be, Craig, and this is Michael Pataglia, that we continue to be focused on expense reduction across the business. The EBITDA positive goal is a number one goal at Blink, and as long as the market cooperates with us on the top line, we have the plan in place to achieve it.

Michael Battaglia: That we continue to be focused on expense reduction across the business.

Speaker Change: <unk> EBIT positive goal is a it's our number one goal of Blake and as long as the market cooperates with us on the top line. We have the we have the plan in place too.

Michael Battaglia: To achieve.

Speaker Change: Excellent I really appreciate them answered so just as a follow up it sounds like Blink mobility is probably the biggest factor in the spinoff. There can you can you maybe share with us what their expense burden was in in in 'twenty, three or what's the what's a good sort of rough number.

Craig Edward Irwin: Excellent. I really appreciate that answer. So, just as a follow-up, it sounds like Blink Mobility is probably the biggest factor and the spinoff there.

Craig Edward Irwin: Can you maybe share with us what their expense burden was in 23? Or what's a good sort of rough number for us to be thinking in 24 as we look at that? Maybe not the forward-looking number, but the historical number is probably the easier one to give.

Craig Edward Irwin: For us to be thinking in 'twenty four as we look at that maybe maybe not in the forward looking number but the historical numbers, probably the easier one to give.

Michael P. Rama: Michael? Yeah, I'll jump in on that one. Yeah, historically, you know, you know, between the combination of Envoy as well as Lola, it was burning about four million dollars, a bottom line EBITDA. So, there's a good nut chunk that we're looking at that that's going to be once that gets solved, resolved, and all that stuff that will be a positive impact on that EBITDA goal. So, and as we've mentioned, it's really looking at these not performing assets and really being able to position ourselves to really benefit from the strengths of what we do best. And that's an EV charging infrastructure.

Speaker Change: Yeah, I'll jump in on that one yet historically.

Michael P. Rama: Well you know between the combination of envoy as well as a blow away it was burning about $4 million.

Michael P. Rama: Our bottom line EBITDA. So so there's a good chunk that we're looking at that's going to be once that gets solved resolved and all that stuff that will be a positive impact to the to that EBITDA goal. So as we've mentioned, it's really looked at the at these nonperforming assets and really be able to position ourselves to really.

Michael P. Rama: To the strengths of what we do best and that's an EV EV charging infrastructure.

Speaker Change: Great and then last question if I can squeeze in another one and there's the post office right you guys did a great job winning that contract it looks like.

Craig Edward Irwin: Great. And the last question, if I could squeeze another one in, is the post office, right? You guys did a great job winning that contract.

Craig Edward Irwin: It looks like the two other vendors, the one, well, one, they both, they both outsourced. I guess it depends on how you look at it, but it doesn't look like either one of them has Buy in America compliant products. And I think the post office is talking about 14,000 new chargers this year. How ready are you to serve the man from the post office? You know, do you believe it's accurate that the others do not have a Buy in America compliant product to offer the post office at this time? Is there anything else we should probably look at to understand the potential there?

Craig Edward Irwin: The two other vendors, but why weren't they both they both outsourced I guess it depends on how you how you look at it but it doesn't look like either one of them has buy in America compliant product.

Craig Edward Irwin: I think the post office is talking about 14000 of charges this year.

Craig Edward Irwin: Yeah, how how ready are you to serve demand from the post office.

Craig Edward Irwin: Do you do you believe it's accurate that the others do not have buy in America compliant Ah.

Craig Edward Irwin: Product to offer the post office at this time is there anything else, we should probably look at to to understand the potential in there.

Brendan S. Jones: So, um, I'll say this: we can't comment on the other manufacturers and where they stand. Okay.

Craig Edward Irwin: So.

Brendan S. Jones: Well I'll say this but we can't comment on the other manufacturers on where they stand right. We can say that we are.

Brendan S. Jones: We can say that we are in good standing in our relationship with the post office. We're in contact with them, and they're in contact with us about what the future looks like for 2024. We have a lot of confidence in the communications that they're delivering to us and what we need to do to fulfill the orders that will come in in 2024. But the details of that, we haven't got permission from the post office to release yet. So, we have to kind of lay a little bit low on that. Mike Battaglia, any additional insight on that other than what I just said?

Brendan S. Jones: In good standing and our relationship with the post office.

Unknown Executive: We're in contact with them and Theyre in contact with us about what the future looks like for 2024.

Unknown Executive: We have a lot of confidence and the communications that they're delivering to us and what we need to do to fulfill the orders that will.

Unknown Executive: We will come in in 2020 for the details of it we haven't got permission from the post office to release yet.

Unknown Executive: So we have to kind of lay.

Unknown Executive: Lay a little bit low on that Mike the tablet any any additional insight on to that other than what I just said.

Michael Battaglia: Yeah, the only thing I would add is Craig, you asked about production capacity, and to answer your question directly, yes, we have the production capacity to fulfill what they're looking for.

Unknown Executive: Yeah. The only thing I would add is Craig you asked about production capacity and to answer your question directly yes, we have the production capacity to fulfill.

Unknown Executive: What they're looking for.

Craig Edward Irwin: Perfect. Thank you, gentlemen. Congratulations on another really solid quarter. Impressive.

Unknown Executive: Perfect. Thank you gentlemen, congrats on another really solid quarter impressive.

Speaker Change: Thank you very much. Your next question is coming from Steven Kent Alright.

Operator: Thank you very much. Your next question is coming from Stephen Gengaro of Stiefel. Stephen, your line is live.

Stephen David Gengaro: Stifel Steven Your line is life.

Stephen David Gengaro: Thanks. Good afternoon, everybody. Hey, Stephen.

Stephen David Gengaro: Thanks, Good afternoon everybody.

Stephen David Gengaro: Hey, Steven.

Stephen David Gengaro: So, a couple things for me. The first is, when we think about the difference, pieces of revenue, right? And I'm going to think of product sales, but then the revenue from charging service revenue. How should we think about the relative growth of those pieces as we go forward? And I'm talking about, you know, multiple quarters or even the next couple of years. Like, should we think about product? outgrowing that piece? Or do you think you'll start to see the charging service revenue because of EV density picking up start to kind of accelerate?

Stephen David Gengaro: So.

Stephen David Gengaro: Couple of things for me. The first is when we think about the different.

Stephen David Gengaro: Pieces of revenue right.

Stephen David Gengaro: They've got a product sales, but then since then.

Stephen David Gengaro: Then the charging service revenue.

Stephen David Gengaro: How should we think about the relative growth of those pieces as we go forward and I'm talking about.

Stephen David Gengaro: A couple of quarters or even in the next couple of years.

Stephen David Gengaro: Should we think about products.

Stephen David Gengaro: Outgrowing that piece or do you think you'll start to see the charging service revenue because of the density picking up start to kind of accelerate.

Brendan S. Jones: Well, I'll take a shot at it and then I'll let the rest of the team try and answer it as well, Stephen. But certainly, what we've seen in the trend analysis, and I'm going to focus on service revenue first, is that utilization in Europe continues to increase significantly, month over month, quarter over quarter, and quarter over year. So, and we continue in Europe to win awards to install more chargers under that model.

Speaker Change: Well I'll take a shot at it and then I'll, let the rest of the team.

Brendan S. Jones: Try and answer as well, Stephen but but certainly what we've seen on the trend analysis and this I'm going to focus on service revenue first is that utilization in Europe continues to increase significantly month over month quarter over quarter and Kurt over years, So and we continue in Europe to win awards to install more.

Brendan S. Jones: Charge offs under that model. So we're going to see that revenue continue to grow, especially as we Max out utilization on certain stations and they have to add more however.

Brendan S. Jones: So, we're going to see that revenue continue to grow, especially as we max out utilization on certain stations and have to add more. However, you know, when we go back to the data and look at the US alone, and look at who's in the space today with full service solutions, you know, who is a one-stop shop and can provide the network, installation, chargers, and a flexible model to do that. And that's on the product side, and we're one of the most well-positioned ones, plus the vertical integration that we have allows us to do that at high margins.

Speaker Change: However, you know when we go back to the data and looking at the U S alone and looking at.

Brendan S. Jones: Who's in the space today with full service solutions, you know who is one stop shop and can provide network installation Chargers and a flexible model to do that and that's on the product side and we're one of the most well positioned ones plus the vertical integration that we have allows us to do that in high margin. So.

Brendan S. Jones: We do see product continuing.

Brendan S. Jones: So, we do see product continuing to deliver a lot of revenue, and we see growth there, but we think the growth is going to be higher on the owner-operator model than it will be on the product model over time. The difficult part is when does that inflection point come? And, you know, we haven't, while we've done some internal analysis on that, we have nothing substantial enough to report out as when the inflection point will be, and one is going to eclipse the other. Michael or Michael? This is Michael Rahm.

Michael P. Rama: To be delivered a lot of revenue and we see growth there, but we think the growth is going to be higher on the the owner operator model than it will be on the product model over time.

Michael P. Rama: The difficult part is when does that inflection point come and you know we have and.

Michael P. Rama: While we've done some internal analysis on that we have nothing substantial enough to report out as he was when the inflection point will be in one that's going to eclipse the other Michael Michael.

Brendan S. Jones: This is Michael this is Mike I would just add that we've seen just in Q1 itself. This year is I think.

Michael P. Rama: I would just add that, you know, we've seen just in Q1 itself this year a little bit of a shift towards a little bit of a mix of hardware or product sales to service. We're around about 70% now, where we had used to be 75 to 80% on the product side, and now service is closer to 30%. So, we're starting to see an increase in that, you know, that service side of it as a percentage of our overall revenue.

Michael P. Rama: The little bit of a shift towards a little bit our mix on hardware or product sales to service. We're around about 70% now where we have used to be 75% to 80% on the on the on the product side and now services closer to 30%. So so we're starting to see an increase is that what we do.

Michael P. Rama: The service side of it as a percentage of overall revenue trend.

Michael P. Rama: Okay.

Stephen David Gengaro: Okay, that's helpful. And then the one other question, and this is probably a sort of Unknown Speaker 3 year view plus, I mean, should we think about the growth in your business kind of just paralleling, I mean, paralleling EV sales growth? I mean, is that a reasonable way to think about the North American business? Or do you think there are parts that either outpace or underperform that level?

Speaker Change: That's helpful.

Stephen David Gengaro: The one other question and this is probably a sort of.

Stephen David Gengaro: Three year view, plus I mean should we should we think about.

Stephen David Gengaro: The growth in your business kind of just paralleling.

Stephen David Gengaro: Paralleling EV sales growth I mean is that a is that a reasonable way to think about the north American business or do you think there are parts that either out pace or underperform that that philosophy.

Brendan S. Jones: Yeah, I think, you know, it's a reasonable assumption to say that some, but not all of the growth will go in parallel to EV sales. But, as you know, we also know that as we're moving more into energy services and SAS options, such as load management, building management, load curtailment, integration into microgrids, etc., those are different, so services will provide standalone revenue as part of the overall package of network services

Speaker Change: Yeah, I think you know what was going on.

Brendan S. Jones: It isn't a reasonable assumption to say that some but not all of the growth will go in parallel T E b cells, but as you.

Brendan S. Jones: We also know that whereas we're moving more into energy services and than SaaS options, such as load management building.

Brendan S. Jones: Management load curtailment.

Brendan S. Jones: Integration into micro grids, etc. Those are different so services will provide standalone revenue as part of the overall package of network of services. So the SaaS end of the business is going to continue to grow and we can only say what we're working on right now right now what I just outlined but we expect there.

Michael Battaglia: So the SAS end of the business is going to continue to grow. And, you know, we can only say what we're working on right now, as I just outlined. But we expect that, you know, new things in the future may come into energy management. Internally, we have a whole task force and strategy group that's focused on energy management as a standalone item. And we believe that, you know, we'll see more out of that particular channel in the future.

Michael Battaglia: Bad.

Michael Battaglia: No new things in the future may come in to energy management internally, we have a whole task force and strategy group, that's focused on energy matters and as a standalone item and we believe that we will see more out of that particular channel in the future and then there's going to be other SaaS things since we.

Michael Battaglia: And then there's going to be other SAS things since we manage our own network and we deliver other software services. And it's our development center in the U.S., Europe, and India. The SAS applications will continue to grow. So, Michael Battaglia, any other comment on that?

Michael Battaglia: We you know we manage our own network and we deliver other software services and it's our development center in the U S Europe and in India. The SaaS applications will continue to grow some Michael the takeaway any any other comment on that.

Michael Battaglia: No I would just add that.

Michael Battaglia: One of the beautiful things about the linkage that we approach the market, where the market is and where the customer is and what the customer wants and we keep going back to this but our business models.

Michael Battaglia: No, I would just add that one of the beautiful things about Blink is that we approach the market where the market is and where the customer is and what the customer... And we keep going back to this, but our business models enable us to do that. So when we think about the mix between product sales versus owner operator, things like that, that's largely going to follow market opportunities. That said, the focus of the organization is on repeatable, high-margin recurring revenue.

Michael Battaglia: Enable us to do that so when we think about the mix between product sales versus owner operator things like that that's largely going to follow the market opportunities that said the focus of the organization is on repeatable high margin recurring revenue so that.

Michael Battaglia: So that, as we know, is more directed towards things like service; it's things like Blink-owned owner-operated chargers out in the field. So our focus is always on that, but we will continue to deliver to the market what the market is asking of us.

Michael Battaglia: As we know is more directed towards things like AR.

Michael Battaglia: Of course, the services things like Oh, Blink owned owner operator charters out in the field. So our focus always is that but we will continue to deliver to the market what the market's asking of us.

Stephen David Gengaro: Great, now that's a good color gentlemen, thank you.

Speaker Change: Great. That's good color gentlemen, thank you.

Stephen David Gengaro: Thank you very much. Your next question is coming from Sameer Joshi of H C. Wainwright semi a your line is life.

Operator: Thank you very much. Your next question is coming from Sameer Joshi of HC Wainwright. Sameer, your line is live.

Sameer S. Joshi: Great. Thanks, good afternoon, everyone.

Sameer S. Joshi: Great, thanks. Good afternoon, everyone.

Sameer S. Joshi: Thanks for taking my questions.

Sameer S. Joshi: Just if you could give us a little bit more insight into your development on the energy management solutions I know you referenced a reference there.

Sameer S. Joshi: Thanks for taking my questions. Just if you could give us a little bit more insight into your developments on the energy management solutions. I know you referenced it in the previous question, but should we expect these to be stand-alone or grid-adjacent applications or charging-adjacent applications?

Sameer S. Joshi: Because the previous question.

Sameer S. Joshi: But should we expect he used to be standalone.

Sameer S. Joshi: The grid outages and obligations or charging the adjacent applications.

Brendan S. Jones: Yeah, so I'll answer Sameer first from about 30,000 feet, and Mike might give you some more color commentary. So it's a two-stage, it's a two-faceted approach. There's European Energy Management Service and U.S. Energy Management Service, primarily as we're looking at it. The needs in Europe are actually significantly different at this point in time than the needs in the U.S. So the team is already developing these features and benefits. I'm not going to give you a release date yet because that would be premature, but we already have some of them in place today.

Sameer S. Joshi: Yeah. So I'll end it answered some of your first at about a 30000 foot view in and Mike might give you some more color commentary. So it's a two stage two faceted approach the European Energy management service and U S Energy management services, primarily is what we're looking at it the needs in Europe are actually.

Brendan S. Jones: Significantly different at this point in time, then the needs and in the U S. So the team is already developing these features and benefits I'm not going to give you a release date, yet because that would be premature.

Brendan S. Jones: But we already have some of them in place today and on top of that we're adding to fleet manner.

Brendan S. Jones: Management services, so there'll be stand alone in terms of.

Brendan S. Jones: And on top of that, we're adding fleet management services. You know, you have to have the network to activate them in most cases, but they will fit into any model that we do. You can do them on the operator, the hard, the hybrid model, or the sales model, and one will benefit Blink, and the other will benefit the customer. So, their application has to be with the network. So, it wouldn't stand alone as a piece of software that you can buy.

Brendan S. Jones: You have to have the network to activate them in most cases, but they will fit into either model that we do you can do them on the owner.

Brendan S. Jones: Operator to the hard the hybrid model or the sales model and one will benefit blank and the other will benefit the customer so their application it has to be with the network. So it wouldn't be standalone is the piece of software that you can buy.

Brendan S. Jones: Right now, at first, it's going to help to service the network and generate business because what we're seeing in the RFPs that are coming out, you have to have these in order to win the business, and that business that we're seeing is part of a full service RFP for full service, you know, for the chargers, for the network, for the installation, for the energy management, all wrapped into one. Mike, any additional comments on that?

Brendan S. Jones: Right now at first it's going to help to service the network and generate business because what we're seeing in the Rfps that are coming up now you have to have these in order to win the business and that business that we're seeing is part of a full service RFP for full service you know for the Chargers for the network for the installation for the energy management.

Brendan S. Jones: All wrapped into one Mike any additional on that.

Brendan S. Jones: No, Brendan, I think you covered it nicely.

Mike: No no. Thank you.

Mike: Covered it nicely.

Speaker Change: Alright, thanks, Okay.

Brendan S. Jones: All right. Thanks. Okay.

Brendan S. Jones: Occasionally, the CEO is smart, right? Occasionally,

Speaker Change: Occasionally the CEO and warrant right occasionally.

Brendan S. Jones: [laughter].

Speaker Change: Just another question and this was also referenced earlier.

Sameer S. Joshi: Just another question, and this was also referenced earlier, but it seems the product margins are nearly 40% this quarter. Are there further moves to improve these margins going forward, and is that sort of a part of your getting to a positive adjustment by the end of this year?

Sameer S. Joshi: So the product margins of nearly 40% this quarter.

Sameer S. Joshi: Therefore, there is this was the move to <unk>.

Sameer S. Joshi: These margins going forward is that.

Sameer S. Joshi: That's sort of part of your getting to a positive adjusted EBITDA by the end of this year.

Brendan S. Jones: Well, I certainly hope we can improve them. But I don't want to commit to anything just yet.

Speaker Change: Well I certainly hope we can improve them I don't want to commit to anything just yet as you know, we're we continue to be conservative.

Brendan S. Jones: So we can meet expectations properly as a company.

Brendan S. Jones: As you know, we continue to be conservative so we can meet expectations properly as a company. Yeah, we do. We do have some.

Brendan S. Jones: Yeah, we do we do have some we're not seeing a lot of commoditization in the commercial space as of yet and we are seeing an uptick in and the need for quality product, but we also have to balance that you know again to.

Brendan S. Jones: The needs for DC fast Chargers, with ebb and flow a little bit more.

Brendan S. Jones: We're not seeing a lot of commoditization in the commercial space as yet, and we are seeing an uptick in the need for quality products. But we also have to balance that, you know, again, to the needs for DC fast chargers that ebb and flow a little bit more. And when you have higher orders on the DC side, you do reduce some of your margin. Now, we are, you know, we've already succeeded in some margin protecting activities.

Brendan S. Jones: And when you have higher orders on the D. C side, you do reduce some of your margin now we are you know we.

Brendan S. Jones: Already succeeded in some margin protecting the activities. The first was bringing on our D C nine charger, which we produce it.

Brendan S. Jones: Ourselves and we have a higher margin on that.

Brendan S. Jones: The first was bringing in our DC 9 charger, which we produce ourselves, and we have a higher margin on that. But we're working on our own DC fast charger, but we'll have that made by a third-party manufacturer. So, the balance is primarily L2, and those are the commercial chargers that we're very adept at building. Yes, you'll see improvement. But on the whole, we have to be a little conservative. While we'll move to 80% vertical integration when we convert European L2s over to Blink Manufacture, we'll still have a lot of high-revenue DC fast chargers moving out, and those won't be at those high margins that we have on the L2. Michael, I might have convoluted that a little bit. Any color or commentary or clarification on that?

Brendan S. Jones: But we're working on our own D C fast hardware, but we'll have that made by a third party manufacturer. So is it is the balance is primarily L. Two and those are the commercial Chargers that we're very adept at building, yes, youll see improvement, but on the whole we have to be a little conservative.

Speaker Change: While we will move to 80% vertical integration when we convert European L. Twos over the blank manufacturers will still have a lot of high revenue DC fast Chargers moving out and those will won't be at those high margins that we have the all too Michael I might a convoluted that a little bit any any color or commentary.

Speaker Change: Clarification on that.

Michael C. Battaglia: I can jump in.

Michael Battaglia: I can jump in, Brendan. Actually, I have just a couple of quick comments on that. So one thing is we have a couple of different levers that we can pull in terms of margin expansion. One of them is skewed consolidation, which we're working on. So simplifying in order to sell more of fewer SKUs for economies of scale, purchasing power, things like that. The second is that while we have our manufacturing facility in Bowie, Maryland, that's providing Buy America compliant chargers, we also have the ability to produce finished goods in India.

Brendan: Yeah actually I had a just a couple of quick comments on that so one is we have a couple of different levers that we can pull in terms of margin expansion.

Michael Battaglia: One of them is SKU consolidation, which we're working on so simple.

Michael Battaglia: And in order to sell more of a fewer skus for economies of scale purchasing power things like that.

Michael Battaglia: The second is <unk>.

Michael Battaglia: Is while we have our manufacturing facility in Bowie, Maryland, that's providing a buy America complying Chargers. We also have the ability to produce finished goods in India and that is it represents another lever you havent pulled yet for margin expansion of our LTE product line. So there are a couple of different things that we can do.

Michael Battaglia: And that represents another lever we haven't pulled yet for margin expansion on our L2 product line. So there are a couple of different things that we can do to continue to work on that. I think, as Brendan indicated, we're holding to our guidance. We had a good Q1, and so we'll see where that takes us.

Michael Battaglia: <unk>.

Michael Battaglia: Continue to work on that I think as Brendan indicated we're holding to.

Michael Battaglia: Our guidance, we had a good Q1.

Michael Battaglia: And so we'll see where that takes us.

Michael Battaglia: Okay.

Sameer S. Joshi: Understood. Thanks for that.

Michael Battaglia: Understood.

Speaker Change: Thanks for that and then one last one on costs.

Sameer S. Joshi: And then one last one on cost. Will you remind us what constitutes other operating expenses? I think they were slightly elevated this quarter. How should we look at them if we are projecting them for the rest of the year?

Speaker Change: You remind us what constitutes other operating operating expenses I think they were slightly elevated this quarter.

Speaker Change: We look at it.

Sameer S. Joshi: If you are presenting you'd flip the rest of the year.

Michael P. Rama: Yeah, I'll jump in on that. Yeah.

Speaker Change: Yeah Yeah.

Speaker Change: I'll jump in on that yet.

Speaker Change: We had over $2 million, we had a million seven that ran through operating expenses for adjusted to fair value.

Michael P. Rama: We had over $2 million. We had $1.7 million that ran through operating expenses for adjusted defective value. I'll call it an accounting adjustment towards fair value of bringing up the contingent or the consideration payable to envoy that's in stock, so that we had to increase that liability. So that was another million seven, we pulled that out of from an adjusted EBITDA standpoint because it's really not an operating, it's a gap adjustment, if you will.

Michael P. Rama: I'll call it an accounting adjustment towards.

Michael P. Rama: Fair value of bringing up.

Michael P. Rama: The contingent consideration payable to envoy that's in stock. So that we had to increase that liability. So that's that was the other blade seven we've pulled that out up from an adjusted EBITDA standpoint, because there's really not an operating at the GAAP adjustment if you will and.

Michael P. Rama: And you know so.

Michael P. Rama: And then we also had another half a million dollars that we had to take a charge on underperforming assets are weighted to a subsidiary so that in conjunction as by two 2.2 million just in the quarter that's nonrecurring.

Michael P. Rama: And, you know, and then we also had another half a million dollars that we had to take a charge on underperforming assets that were laid to a subsidiary. So that, in conjunction, is about two and a half to $2.2 million just in the quarter that's non-recurring.

Michael P. Rama: Okay.

Sameer S. Joshi: Oh, okay. And the $6.4 million in other operating expenses was slightly elevated relative to $3 to $4 million in the previous quarters.

Michael P. Rama: $6 4 million.

Sameer S. Joshi: Other operating expenses slightly elevated related to like three to 4 million in the previous quarters.

Michael P. Rama: Yeah, it could be timing on some activities and stuff like that. So, you know, we probably had a little bit more in the T&E that we may have, you know, in some trade shows that you had that we were at in the first quarter, and some of that. So, but the meaningful items are the items that I just alluded to.

Sameer S. Joshi: It could be timing on some activities and stuff like that so we had a little bit more probably in the <unk> that we may have Oh antigen trade shows that you had that that we're at in the first quarter.

Michael P. Rama: And so some of that so but the beautiful items is the are the items that are that I just alluded to.

Speaker Change: Right right got it.

Sameer S. Joshi: Thanks a lot and congratulations on a great day.

Speaker Change: Thanks, a lot and congratulations on a great quarter.

Speaker Change: Thanks Man.

Operator: Thank you very much. And your last question is coming from Noel Parks of Tui Brothers. Noel, your line is live.

Speaker Change: Thank you very much.

Operator: Last question is coming from Noel Parks of Tuohy Brothers Your line is life.

Operator: Okay.

Noel Augustus Parks: I lead me to say.

Noel Augustus Parks: I've just got a couple. I wanted to, um... Just touch on maybe a little bit of what's happening in the grants function, and I just wondered if you had any updates you could share around NEVI funding and just where that's showing up in your business, you know, what sort of visibility you might have there.

Noel Augustus Parks: Got a couple.

Noel Augustus Parks:

Noel Augustus Parks: I wanted to.

Noel Augustus Parks: Just touch back on.

Noel Augustus Parks: Maybe a little bit of what's happening on sort of the the grants function and I just wondered if.

Noel Augustus Parks: You had any updates.

Noel Augustus Parks: Sure around NAV any funding and just maybe where that's shown up in your business what sort of visibility.

Noel Augustus Parks: You might have there.

Brendan S. Jones: Yeah, we've won a couple of NEBI sites already, but there's a key thing as a covering statement that we should use. All of our forecasting and data analysis right now that we're looking at is devoid of winning grants in the future.

Noel Augustus Parks: Yeah. We've we've won a couple nervy sites already but theres a key thing as a as a covering statement that we shouldn't use all of our forecasting and data analysis right now that we're looking at is devoid of winning grants in the future.

Brendan S. Jones: We believe that to become a sustainable company, we can't rely on government funding because it may or may not be there.

Brendan S. Jones: We believe that to become a sustainable company, we can't rely on government funding because it may or may not be there, and there may be fewer opportunities or more opportunities depending on how we fit into particular programs and RFPs that the states or the federal government put out there. So, with that said, we do look for NEBI opportunities that really fit Blink, and what I mean by that is we will not be a plant, a flag company.

Brendan S. Jones: And there may be less opportunities or more opportunities depending on how we fit.

Brendan S. Jones: Into particular programs in Rfps.

Brendan S. Jones: The states or the federal government put out there so with that said, we do look for opportunities that really fit blank and what I mean by that is we will not be a plant a flag the company.

Brendan S. Jones: And what that means is we win an award, and we put a station there just because we won the award. But if the site doesn't have positive station economics and we don't get a positive return for our shareholders in a set amount of time, we will pass on the NEVI opportunity regardless of the state and the amount of funding provided. The ones that we have won, and there are only a few of them that we've won, they have already passed that litmus test, meaning that we're going to get a return on that investment, and we can show positive growth in revenue over a period of time to our stakeholders.

Brendan S. Jones: What that means is we win an award and we put a station there just because we won the award.

Brendan S. Jones: If the site doesn't have positive station economics, and we don't do the positive return for our shareholder in a set amount of time, we will pass on and every opportunity regardless of the state and the amount of funding provided the ones that we have won and Theres only a few of them that we we've won they already passed that litmus test, meaning that we're going to get a return.

Brendan S. Jones: On that investment and we can show positive growth in revenue over a period of time to our stakeholders now we do participate in we're already heavily involved in the second part of it is not the Navy, but you know it was $7 $5 million and there's another 2.5 set aside for other projects and we're already feeling.

Brendan S. Jones: Now, we do participate, and we're already heavily involved in the second part of, it's not the NEVI, but $7.5 million, and there's another 2.5 set aside for other projects, and we're already fully engaged. Thanks, Mike. And Mike, actually, you're better suited to answer the CFI part. So you want to follow up there? Yeah, yeah.

Brendan S. Jones: <unk> yeah. Thanks, Mike It might be you know actually you better to two answered the CFR part so you want to follow up there.

Michael Battaglia: Yeah, yeah, no problem. So there's, as Brendan indicated, there's these two pieces to Navi. There's the DC fast charging side, and then there's this other two and a half billion dollars for what's called CFI. And the CFI money is thought to be geared towards level two community chargers. That money is not fair; it's not allocated in the same way that the D.C. money is. So what happens is that local municipalities, states, etc., apply for these funds, they have a project or projects in mind, and then they get approval, they get funding, and then what they will do is RFP out to companies like Blink to win those projects.

Mike: Yeah, Yeah, no problem. So there's as Brendan indicated there's just two pieces didn't have either as a DC fast charging side and then there's this other $2 $5 billion for what's called CSI.

Michael Battaglia: And the C. F. I money is thought to be geared towards level two community charging.

Michael Battaglia: That money is not just it's.

Michael Battaglia: It's not a <unk>.

Michael Battaglia: Allocated in the same way that the D. C money is so what happens is local municipalities.

Michael Battaglia: States et cetera, they apply for these funds they have a project or projects in mind.

Michael Battaglia: And then they get approval they get funding and then what they will do is RFP out to companies like Blink to win those projects. So those are starting now and our real focus as a <unk>.

Michael Battaglia: So those are starting now, and our real focus as a, you know, heavily focused L2 company is to pursue those. So those are just right at the very beginning of money being released, those RFPs being issued. So while we're going to continue to pursue the D.C. side, we are most definitely running hard at the CFI side.

Michael Battaglia: Heavily focused still two company is to pursue those so those are just rent at very beginning cost of.

Michael Battaglia: And he being released those rfps being issued so while we're going to continue to pursue.

Michael Battaglia: The dish. Besides we are most definitely running hard at the CSI side.

Speaker Change: Great. Thanks for that detail and you know.

Michael Battaglia: Great, thanks for that detail. And, you know, I'm just wondering, thinking about the network and sort of the, as you have more time operating a broader set of networks, as far as the customer charging experience, just wondering what sort of feedback you might have had, you know, in recent, recent quarters, and whether there are any, The onsite software that they have in mind.

Michael Battaglia: I was just wondering thinking about the.

Michael Battaglia: The network and I'm sort of the as you have you have more time operating them.

Michael Battaglia: A broader set of networks as far as the customer charging experience just wondering what sort of feedback you.

Michael Battaglia: You might have had and.

Michael Battaglia: In refill.

Michael Battaglia: Recent quarters and whether there are any when he goes or enhancements on the horizon I don't know either for for the app or or the.

Michael Battaglia: I'm sorry, it software.

Michael Battaglia: So you have in mind.

Noel Augustus Parks: Yeah, continuous improvement. We're analyzing feedback from everywhere.

Michael Battaglia: Yeah.

Noel Augustus Parks: The continuous improvement.

Noel Augustus Parks: We were we're analyzing feedback from everywhere.

Noel Augustus Parks: We've analyzed quip equipment that we may need to sunset, because it's not functioning properly there.

Brendan S. Jones: We've analyzed equipment that we may need to sunset because it's not functioning properly due to firmware or software issues. We just launched Blink Care, which is a preventative maintenance program that helps improve the quality of stations out in the field. We're also working on an effort to consolidate platforms, as Mike spoke about earlier, and what that does is limits your problems with points of connection between software, firmware, and a multiplicity of platforms.

Brendan S. Jones: Firm, where our software issues.

Brendan S. Jones: We just lungs, Blink care, which is a preventative maintenance program that.

Brendan S. Jones: That helps improve the quality of stations out in the field that just launched.

Brendan S. Jones: The other day, we're also working on an effort to consolidate platforms as Mike spoke to earlier and what that does it limits your problems with points of connection between software firmware and a multiplicity of platforms vertical integration is helping with that so we.

Brendan S. Jones: Vertical integration is helping with that. So, we have a plan that is both operational and technology-minded to improve our quality scores day-over-day, week-over-week, year-over-year. We're already starting to tick up, but we're paying attention to the industry, the feedback. We're very, very active in the space. Mike is leading that effort. Mike, any comments from you on quality and quality improvement initiatives?

Mike: Have a plan that is both operational and technology minded to day over day week over week year over year improve our quality scores.

Mike: We're already starting to tick up.

Mike: But we're paying attention to the industry the feedback.

Brendan S. Jones: We're very very active in the space, Mike is leading that effort. So Mike any comments from you on quality and crop quality improvement initiatives.

Michael Battaglia: Yeah, so one of the hottest issues in the industry is charger uptime, customer experience, charging, and obviously mitigating and eliminating broken chargers. So, as Brendan indicated, that falls under my purview, and it is something that is reviewed, analyzed constantly, literally on a daily basis, where we look at the population of chargers that are healthy and those that are unhealthy. We do deep dives into the nature of the issues that are causing a charger to be down, offline, whatever it might be. But this is a multifaceted problem.

Mike: Yeah. So the one of the hottest issues the industry is charter uptime customer experience charging.

Michael Battaglia: Okay.

Michael Battaglia: Obviously, mitigating and eliminating broken Chargers, so as Brendan.

Speaker Change: Katy that falls under.

Michael Battaglia: My purview and it is something that is reviewed.

Michael Battaglia: Analyze constantly literally on a daily basis, where we look at the population of charters that are healthy or unhealthy.

Michael Battaglia: But we have we do deep dives into that nature of the issues that are causing a charter to be down.

Michael Battaglia: Down offline whatever it might be.

Michael Battaglia: But this is a multi faceted.

Michael Battaglia: Issues, which sometimes folks overlook because there are some challenges associated with someone else owning the charging station. So we have a lot of control over the charging stations that we own ourselves, and our uptime is very high on those stations. When you sell a charging station to someone and if they don't maintain it, it's very difficult to, in some respects, enforce that, if you will. So we are trying many different things from a marketing perspective, from a field services perspective, to ensure that the entire portfolio of Blink chargers in the market is at their optimized reliability.

Michael Battaglia: Issue, which.

Michael Battaglia: Sometimes folks overlook because there are some challenges associated with someone else owning the charging stations. So we have a lot of them.

Michael Battaglia: Well over the charging stations that we own ourselves and our uptime is very high on those stations when you sell a charging station to someone and if they don't maintain and it's very difficult to in some respects enforce that if you will so we are trying many different things from a marketing person.

Michael Battaglia: From a field services perspective to ensure that the entire portfolio of blinked Chargers in the market are at their optimized reliability.

Michael Battaglia: Yeah.

Noel Augustus Parks: Great. Thanks. It sounds terrific.

Speaker Change: Great. Thanks sounds perfect.

Noel Augustus Parks: Thank you very much well we have reached the end of our question and answer session I will now hand, it back over to Vitale for any closing remarks.

Operator: Thank you very much. We have reached the end of our question and answer session. I will now hand over to Vitalie for any closing remarks.

Vitalie Stelea: Thank you Jenny and thank you all for joining us on the call today and for your interest in blank, especially as we announced another record first quarter.

Vitalie Stelea: Thank you, Jenny, and thank you all for joining us on the call today and for your interest in Blink, especially as we announce another record first quarter. To summarize the quarter in a few numbers. Our Q1 revenue was up 73%, and our gross profit was up nearly 200%. And we did all of that while reducing total operating expenses by 13% and making significant progress toward our adjusted EBITDA profitability run rate target. So, for additional questions or requests to meet with management, please email us at ir at blinkcharging.com, and we'll look forward to engaging with you in the future.

Vitalie Stelea: To summarize the quarter and a few numbers. Our Q1 revenue was up 73% gross profit was up nearly 200% and we did all of that while reducing total operating expenses by 13% and making significant progress towards our adjusted EBITDA profitability run rate target.

Vitalie Stelea: So for additional questions or request to meet with management. Please email us at IR at Bloom charging dotcom and we'll look forward to engaging with you in the future.

Speaker Change: Thank you.

Speaker Change: Thank you very much. This does conclude today's conference call. You may disconnect your phone lines and have a wonderful rest of the day. Thank you. Thank you anticipation.

Operator: Thank you very much. This does conclude today's conference call. You may disconnect your phone lines and have a wonderful rest of the day. Thank you for your participation.

Operator: Yeah.