Q2 2024 Nuvve Holding Corp Earnings Call

August 13, 2024

Good afternoon, and welcome to the new V-Holding Corporation second quarter 2024 earnings conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero.

Operator: 2nd Quarter 2024 Earnings Conference Call All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press the star key, then one, on a touchtone phone.

Operator: Second quarter, 2024, earnings conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on a touch-tone phone. To withdraw your question, please press star, then two. Please note this event is being recorded.

After today's presentation there will be an opportunity to ask questions. To ask a question you may press star then 1 on a touchtone phone. To withdraw your question please press star then 2. Please note this event is being recorded.

Operator: To withdraw your question, please press star, then two. Please note, this event is being recorded. On today's call are Gregory Poilasne, Chief Executive Officer, and David Robson, Chief Financial Officer, of Nuvve. Earlier today, Nuvve issued a press release announcing its second quarter 2024 results. Following prepared remarks, we will open up the call for questions.

Operator: On today's call are Gregory Poilan, Chief Executive Officer, and David Robson, Chief Financial Officer, of Nuvve. Earlier today, Nuvve issued a press release announcing its second quarter 2024 results. Following prepared remarks, we will open up the call for questions.

Speaker Change: On today's call are Gregory Poilasne, Chief Executive Officer, and David Robson, Chief Financial Officer of Nuvi. Earlier today, Nuvi issued a press release announcing its second quarter 2024 results. Following prepared remarks, we will open up the call for questions.

Operator: Before we begin, I would like to remind you that this call may contain forward-looking statements. While these forward-looking statements reflect Nuvve's best current judgment, they are subject to risks and uncertainties that could cause actual results to differ materially from those implied by these forward-looking projections. These risk factors are discussed in Nuvve's violence with the SEC and in the earnings release issue today, which are available on our website. Nuvve undertakes no obligation to revise or update any forward-looking statements to reflect future events or circumstances.

Operator: Before we begin, I would like to remind you that this call may contain forward-looking statements. While these forward-looking statements reflect Nuvve's best current judgment, they are subject to risks and uncertainties that could cause actual results to differ materially from those implied by these forward-looking projections. These risk factors are discussed in Nuvve's filings with the SEC and in the earnings release issued today, which is available on our website. Nuvve undertakes no obligation to revise or update any forward-looking statements to reflect future events or circumstances. With that, I would like to turn the call over to Gregory Poilasne, Chief Executive Officer of Nuvve.

Speaker Change: Before we begin, I would like to remind you that this call may contain forward-looking statements. While these forward-looking statements reflect NUVI's best current judgment, they are subject to risks and uncertainties that could cause actual results to differ materially from those implied by these forward-looking projections.

Speaker Change: These risk factors are discussed in NUVI's filings with the SEC and in the earnings release issued today, which are available on our website. NUVI undertakes no obligation to revise or update any forward-looking statements to reflect future events or circumstances.

Gregory Poilan: With that, I would like to turn the call over to Gregory Poilan, Chief Executive Officer of Nuvve.

Speaker Change: With that, I would like to turn the call over to Gregory Poilasne, Chief Executive Officer of NUVI. Gregory?

Gregory Poilan: Gregory? Thank you, and good afternoon to everyone here today. Thank you for joining our second quarter 2024 results call. We are pleased to have the opportunity to update you on the progress we believe we are making in scaling our business and positioning Nuvve for future growth. This second quarter has remained challenging for Nuvve, as school districts have been awaiting EPS funding approval letters before placing orders. The good news is that the EPS funding rounds two and three are finally moving forward, but after significant delays. This situation forces us to be more aggressive and review our operational processes tidy.

Gregory Poilasne: Thank you, and good afternoon to everyone here today. Thank you for joining our second quarter 2024 resource call. We are pleased to have the opportunity to update you on the progress we believe we are making in scaling our business and positioning Nuvve for future growth. This second quarter has remained challenging for Nuvve, as school districts have been awaiting EPF funding approval letters before placing orders. The good news is that EPF funding rounds 2 and 3 are finally moving forward, but after significant delays. The situation forces us to be more aggressive and review our operational processes tightly.

Gregory Poilasne: Thank you and good afternoon to everyone here today. Thank you for attending our second quarter 2024 results call. We are pleased to have the opportunity to update you on the progress we believe we are making in scaling our business and positioning Nuvi for future growth.

Operator: Second Quarter, 2024, Earnings Conference Call All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star than one on a touch-tone phone. To withdraw your question, please press star than two. Please note this event is being recorded.

Speaker Change: This second quarter has remained challenging for NUVI as school districts have been awaiting EPF funding approval letters before placing orders.

Speaker Change: The good news is that the EPF funding rounds 2 and 3 are finally moving forward, but after significant delays.

Speaker Change: This situation forces us to be more aggressive and review our operational processes tightly.

Operator: On today's call are Gregory Poilan, Chief Executive Officer and David Robson, Chief Financial Officer of Nuvve. Earlier today, Nuvve issued a press release announcing its second quarter, 2024 results. Following prepared remarks, we will open up the call for questions.

Gregory Poilan: We are now seeing orders picking up, and we expect that the following three quarters will see a significant increase. But that also means that some recognized revenue expected in 2024 will slide into 2025. This is disappointing, but doesn't change our view on the school bus business in the long run.

Gregory Poilasne: We are now seeing orders picking up, and we expect that the following three quarters will see significant increases. But that also means that some recognized revenue expected in 2024 will slide into 2025. This is disappointing, but doesn't change our view on the school bus business in the long run.

Speaker Change: We are now seeing orders picking up and we expect that the following three quarters will see significant increase.

Speaker Change: But that also means that some recognized revenue expected in 2024 will slide into 2025.

Speaker Change: This is disappointing, but doesn't change our view on the school bus business in the long run.

Gregory Poilan: Concerning your project in Fresno, we had a great event in July, where the different parties got together for a breaking ground event. This allowed us to share more details about the project and help other customers understand the value that Nuvve platform can bring for such development. As a reminder, Nuvve software platform provides the ability to manage and optimize site-level EV charging and behind-a-meter solar and battery storage, and to aggregate resources across multiple sites to participate in ancillary services and grid service markets. This allowed three operators to save money, transition to EV streets faster, and optimize capital asset life.

Gregory Poilasne: Concerning our project in Fresno, we had a great event in July where the different parties got together for a groundbreaking event. This allowed us to share more details about the project and help other customers understand the value that Nuvve Platform can bring for such a development. As a reminder, NuGiv's software platform provides the ability to manage and optimize site-level EV charging and behind-the-meter solar and battery storage and to aggregate resources across multiple sites to participate in ancillary services and grid service markets. This allows fleet operators to save money, transition to EV fleets faster, and optimize capital asset life.

Speaker Change: Concerning our project in Fresno, we had a great event in July where the different parties got together for a Breaking Ground event.

Speaker Change: This allowed us to share more details about the project and help other customers understand the value that NubyPlatform can bring for such development.

Speaker Change: As a reminder, Neweggiv software platform provides the ability to manage and optimize site-level EV charging and behind-the-meter solar and battery storage.

Gregory Poilan: With that, I would like to turn the call over to Gregory Poilan, Chief Executive Officer of Nuvve. Gregory? Thank you, and good afternoon to everyone here today. Thank you for joining our second quarter, 2024 results call. We are pleased to have the opportunity to update you on the progress we believe we are making in scaling our business and positioning Nuvve for future growth. This second quarter has remained challenging for Nuvve, as school districts have been awaiting EPS funding approval letters before placing orders.

Speaker Change: and to aggregate resources across multiple sites to participate in ancillary services and grid service markets.

Speaker Change: This allows fleet operators to save money, transition to EV fleets faster, and optimize capital asset life.

Gregory Poilan: We also expect our other project in collaboration with Taiwan Public Corporation to tick off soon, as we are finalizing our contract with E Formula, our local partner. Expect to hear more soon on this project with a total deployment of 90 bus charging stations. In the meantime, our pipeline of projects on the island is also expanding.

Gregory Poilasne: We also expect our other projects in collaboration with Taiwan Power Corporation to kick off soon, as we are finalizing a contract with eFormula by a local partner. Expect to hear more soon on this project with a total deployment of 90 plus charging stations. In the meantime, our pipeline of projects on the island is also expanding. As a reminder, you can find more details on our V2G Hub projects on our Hub website, www.nuvv2ghubs.com. I now have some exciting news to share with you.

Speaker Change: We also expect our other project in collaboration with Taiwan Power Corporation to kick off soon, as we are finalizing a contract with eFormula by a local partner. Expect to hear more soon on this project, with a total deployment of 90-plus charging stations.

Speaker Change: In the meantime, our pipeline of projects on the island is also expanding.

Gregory Poilan: The good news is that the EPS funding rounds two and three are finally moving forward, but after significant delays. This situation forces us to be more aggressive and review our operational processes tidy. We are now seeing orders picking up, and we expect that the following three quarters will see significant increase. But that also means that some recognized revenue expected in 2024 will slide into 2025. This is disappointing, but doesn't change our view on the school bus business in the long run.

Gregory Poilan: As a reminder, you can find more details on our V2G Hub projects on our hub website, www.newve2ghubs.com.

Speaker Change: As a reminder, you can find more details on our V2G Hub projects on our Hub website, www.newvv2ghubs.com.

Gregory Poilan: I know I have some exciting news to share with you. To further expand the deployment of our technology, we have been working with a new partner, Wise EV LLC, headquartered in Nevada. To this relationship, we are excited to announce the launch of our joint SPV, Special Purpose Vehicle. This SPV targets a deployment of public infrastructure on the first site in Nevada, leveraging a very attractive source of funding from Nevada Energy. We expect this to be the first in the series of planned SPVs that allow us to accelerate new PV technology deployment, save money for EV drivers by providing attractive energy cost pricing and reliable equipment, and bring non-productive cash to new V in the form of prepaid services.

Gregory Poilasne: To further expand the deployment of our technology, we have been working with a new partner, WISE EV LLC, headquartered in Nevada. As part of this relationship, we're excited to announce the launch of our joint SPV, Special Purpose Vehicle. This activity targets the deployment of public infrastructure on a first site in Nevada, leveraging a very attractive source of funding from Nevada Energy. We expect this to be the first in a series of planned SPVs that allow us to accelerate Nuvve technology deployment, save money for EV drivers by providing attractive energy cost pricing and reliable equipment, and bring non-dilutive cash to Nuvve in the form of prepaid services.

Speaker Change: I now have some exciting news to share with you.

Speaker Change: To further expand the deployment of our technology, we have been working with a new partner, WISE EV LLC, headquartered in Nevada. Through this relationship, we're excited to announce the launch of our joint SPV, Special Purpose Vehicle.

Gregory Poilan: Concerning your project in Fresno, we had a great event in July, where the different parties got together for a breaking ground event. This allowed us to share more details about the project and help other customers understand the value that Nuvve platform can bring for such development. As a reminder, Nuvve software platform provides the ability to manage and optimize site-level EV charging and behind-a-meter solar and battery storage and to aggregate resources across multiple sites to participate in ancillary services and grid service markets.

Speaker Change: This SPV targets a deployment of public infrastructure on a first site in Nevada, leveraging a very attractive source of funding from Nevada Energy.

Speaker Change: We expect this to be the first in a series of planned SPVs that allow us to accelerate new V technology deployment, save money for EV drivers by providing attractive energy cost pricing and reliable equipment, and bring non-dilutive cash to new V in the form of prepaid services.

Gregory Poilan: This first SPV will be financed through depth provided to the SPV for a total project cost of about $1.5 million.

Gregory Poilasne: This first SPV will be financed through debt provided to the SPV for a total project cost of about $1.5 million. An event scheduled in Las Vegas on Thursday will allow us to promote the next set of projects. The Consumer Public Infrastructure segment is not new to you. You might remember our engagement with Circle K last year in Europe.

Speaker Change: This first SPV will be financed through debt provided to the SPV for a total project cost of about $1.5 million.

Gregory Poilan: An event scheduled in Las Vegas on Thursday will allow us to promote the next set of projects. The consumer-public infrastructure segment is not new to New V. You might remember our engagement with Circle K last year in Europe. We believe this is a key segment that requires a deep integration into the electric system, and that is also supported by a significant amount of funding from various governments around the world. We believe the SPV structure we have adapted makes our future revenue more forecastable and provides cash up front. On the other hand, revenue recognition happened on the longer period.

Gregory Poilan: This allowed three operators to save money, transition to EV streets faster, and optimize capital asset life. We also expect our other project in collaboration with Taiwan Public Corporation to tick off soon, as we are finalizing our contract with E Formula, our local partner. Expect to hear more soon on this project with a total deployment of 90 bus charging stations. In the meantime, our pipeline of projects on the island is also expanding. As a reminder, you can find more details on our V2G Hub projects on our Hub website, www.newve2ghubs.com.

Speaker Change: An event scheduled in Las Vegas on Thursday will allow us to promote the next set of projects.

Speaker Change: The consumer public infrastructure segment is not new to me.

Gregory Poilasne: We believe this is a key segment that requires deep integration into the electric system and that is also supported by a significant amount of funding from various governments around the world. We believe the FPB structure we have adopted makes our future revenue more forecastable and provides cash upfront. On the other hand, revenue recognition happened over a longer period. When we planned our 2024 revenue forecast in late 2023, we guided full year 2024 revenue to range between $15 to $20 million.

Speaker Change: You might remember our engagement with Circle K last year in Europe. We believe this is a key segment that requires a deep integration into the electric system and that is also supported by a significant amount of funding from various governments around the world.

Speaker Change: We believe the FPB structure we have adopted makes our future revenue more forecastable and provides cash up front.

Speaker Change: On the other hand, revenue recognition happened in a longer period.

Gregory Poilan: When we planned our 2024 revenue forecast in late 2023, we gave it full-year 2024 revenue to range between $15 to $20 million. However, given project delays, we are experiencing with some of the large customers, and delay is occurring in the timing of ETS funding or word, as well as the structure of the project we are making for future revenue, we believe that we no longer anticipate to achieve the $15 to $20 million revenue target this year.

Speaker Change: When we planned our 2024 revenue forecast in late 2023, we guided full year 2024 revenue to range between $15 to $20 million.

Gregory Poilan: I know I have some exciting news to share with you.

Gregory Poilan: To further expand the deployment of our technology, we have been working with a new partner, Wise EV LLC, Headquartered in Nevada.

Gregory Poilasne: However, given project delays we are experiencing with some of the large customers and delays occurring in the timing of ETF funding awards, as well as the structure of the projects we are making for future revenue, we believe that we no longer anticipate we will achieve the $15 to $20 million revenue target. Given the difficulty in forecasting the timing to convert our backlog and pipeline to revenue, we'll not be updating our revenue guidance for 2024.

Speaker Change: However, given project delays we are experiencing with some of the large customers and delays occurring in the timing of EPF funding award, as well as the structure of the project we are making for...

Gregory Poilan: To this relationship, we are excited to announce the launch of our joint SPV, Special Purpose Vehicle. This SPV target a deployment of public infrastructure on the first site in Nevada, leveraging a very attractive source of funding from Nevada Energy. We expect this to be the first in the series of planned SPVs that allow us to accelerate new PV technology deployment, save money for EV drivers by providing attractive energy cost pricing and reliable equipment, and bring non-productive cash to new V in the form of prepaid services. This first SPV will be financed through depth provided to the SPV for a total project cost of about $1.5 million.

Speaker Change: for future revenue. We believe that we no longer anticipate we will achieve the 15 to 20 million dollar revenue target this year.

Gregory Poilan: Given the difficulty in forecasting the timing to convert our backlog and pipeline to revenue, we will not be updating our revenue guidance for 2024.

Speaker Change: Given the difficulty in forecasting the timing to convert our backlog and pipeline to revenue, we will not be updating our revenue guidance for 2024.

Gregory Poilan: Finally, earlier this quarter, we had announced we had engaged Capital Global, Los Angeles-based investment bank in order to work on our strategic investment. This process is underway, and we hope to share our updates with you over the next few months. The SPV is a good indication of our vision. In the meantime, we are managing our cash tightly.

Gregory Poilasne: Earlier this quarter, we announced we had engaged Capelo Global, a Los Angeles-based investment bank, in order to work on our strategic investment. This process is underway, and we hope to share an update with you over the next few months. The FPV is a good indication of our vision.

Speaker Change: Finally, earlier this quarter we had announced we had engaged Capelo Global, a Los Angeles-based investment bank, in order to work on our strategic investment.

Speaker Change: This process is underway and we hope to share an update with you over the next few months.

Gregory Poilasne: In the meantime, we are managing a cash tight. And now, I will let David take you through the details of our financials. Thanks, Gregory.

Speaker Change: The FPV is a good indication of our vision. In the meantime, we are managing our cache tightly.

Gregory Poilan: An event scheduled in Las Vegas on Thursday will allow us to promote the next set of projects. The consumer-public infrastructure segment is not new to new V. You might remember our engagement with Circle K last year in Europe. We believe this is a key segment that requires a deep integration into the electric system, and that is also supported by a significant amount of funding from various governments around the world. We believe the SPV structure we have adapted makes our future revenue more forecastable and provides cash up front. On the other hand, revenue recognition happened on the longer period. When we planned our 2024 revenue forecast in late 2023, we gave it full year 2024 revenue to range between $15 to $20 million.

David Robson: And now, I will let David take you through the details of our financials.

Speaker Change: And now, I will let David take you through the details of our financials.

David Robson: David. Thanks, Gregory. I will start with the recap of second quarter 2024 results. In the second quarter, we generated total revenues of $802,000, compared to $2.12 million in the second quarter of 2023. The decrease was primarily driven by the reduction in charger hardware sales and the related timing of EPA funding awards this year versus the prior year. Year to date, through June 30, 2024, total revenues were 1.6 million, which compares to 4 million for the prior year period. The year-over-year decrease in revenues is also primarily driven by the reduction in charge of hardware sales due to the timing of EPA funding awards this year versus last year.

David Robson: I will start with a recap of the second quarter 2024 results. In the second quarter, we generated total revenues of $802,000 compared to $2.12 million in the second quarter of 2023. The decrease was primarily driven by the reduction in charger hardware sales and the related timing of EPA funding awards this year versus the prior year. Year-to-date through June 30, 2024, total revenues were $1.6 million, which compares to $4 million for the prior year period.

David: Thanks, Gregory. I will start with a recap of second quarter 2024 results. In the second quarter, we generated total revenues of $802,000 compared to $2.12 million in the second quarter of 2023.

David: The decrease was primarily driven by the reduction in charger hardware sales and the related timing of EPA funding awards this year versus the prior year.

David: Year-to-date through June 30th, 2024, total revenues were $1.6 million, which compares to $4 million.

David Robson: The year-over-year decrease in revenues is also primarily driven by the reduction in charger hardware sales due to the timing of EPA funding awards this year versus last year. Margins on products, services, and grant revenues were 24.9% for the second quarter of 2024 compared to 8% for the year-ago period. Year-to-date margins through June 30, 2024, were 29.9% compared with 14.2% for the year-ago period. The increase is primarily due to improved pricing on hardware sales and a higher mix of service and grant revenues this quarter compared with last year.

Speaker Change: for the prior year period. The year-over-year decrease in revenues is also primarily driven by the reduction in charger hardware sales due to the timing of EPA funding awards this year versus last year.

Gregory Poilan: However, given project delays, we are experiencing with some of the large customers, and delay is occurring in the timing of ETS funding or word, as well as the structure of the project we are making for future revenue, we believe that we no longer anticipate to achieve the $15 to $20 million revenue target this year. Given the difficulty in forecasting the timing to convert our backlog and pipeline to revenue, we will not be updating our revenue guidance for 2024.

David Robson: Margin's on products, services, and grant revenues were 24.9% for the second quarter of 2024 compared to 8% for the year-go period. Year-to-date margins through June 30, 2024, were 29.9% compared with 14.2% for the year-go period. The increase is primarily due to improved pricing on hardware sales and a higher mix of service and grant revenues this quarter compared with last year. Excluding grant revenues, margins on product and service revenues were 10.1% for the second quarter of 2024 compared to 4.8% in the year-go period. As a reminder, margins can be lumpy from quarter to quarter depending on the mix. DC Charger gross margins at standard pricing generally range from 15 to 25%, while AC Charger gross margins are approximately 50%, but in dollar terms, are a smaller fraction of the revenue of a DC Charger.

Speaker Change: Margins on products, services, and grant revenues were 24.9% for the second quarter of 2024 compared to 8% for the year-ago period.

Speaker Change: Year-to-date margins through June 30th, 2024 were 29.9% compared with 14.2% for the year-ago period.

Gregory Poilan: Finally, earlier this quarter, we had announced we had engaged capital global Los Angeles-based investment bank in order to work on our strategic investment. This process is underway, and we hope to share our updates with you over the next few months.

Speaker Change: The increase is primarily due to improved pricing on hardware sales and a higher mix of service and grant revenues this quarter compared with last year.

Gregory Poilan: The SPV is a good indication of our vision. In the meantime, we are managing our cash tightly.

David Robson: Excluding grant revenues, margins on product and service revenues were 10.1% for the second quarter of 2024, compared to 4.8% in the year-ago period. As a reminder, margins can be lumpy from quarter to quarter, depending on the mix. DC charger gross margins at standard pricing generally range from 15 to 25 percent, while AC charger gross margins are approximately 50 percent, but in dollar terms, they are a smaller fraction of the revenue of a DC charger.

Speaker Change: Excluding grant revenues, margins on product and service revenues were 10.1% for the second quarter of 2024, compared to 4.8% in the year ago period.

David Robson: And now, I will let David take you through the details of our financials. David. Thanks, Gregory.

David Robson: I will start with the recap of second quarter 2024 results. In the second quarter, we generated total revenues of $802,000, compared to $2.12 million in the second quarter of 2023. The decrease was primarily driven by the reduction in charger hardware sales and the related timing of EPA funding awards this year versus the prior year. Year to date, through June 30, 2024, total revenues were 1.6 million, which compares to 4 million for the prior year period.

Speaker Change: As a reminder, margins can be lumpy from quarter to quarter depending on the mix. DC charger gross margins at standard pricing generally range from 15 to 25 percent, while AC charger gross margins are approximately 50 percent.

Speaker Change: but in dollar terms are a smaller fraction of the revenue of a DC charger.

David Robson: Grid service revenue margins are generally 30%, while software and engineering service margins are as high as 100%. Operating cost, excluding cost to sales, was 6 million for the second quarter of 2024 compared to 7.5 million for the first quarter of 2024 and 8.5 million for the second quarter of 2023. We have continued to drive efficiencies in 2024, resulting in lower overhead costs. We expect the lower operating costs we have realized this quarter to continue in future quarters. Cash operating expenses, excluding cost to sales, stock compensation, and depreciation and amortization expense, declined to 5.4 million in the second quarter of 2024 versus 6.3 million in the first quarter of 2024 and 7.3 million in the second quarter of 2023.

David Robson: Grid service revenue margins are generally 30%, while software and engineering service margins are as high as 100%. Operating costs, excluding cost of sales, were $6 million for the second quarter of 2024, compared to $7.5 million for the first quarter of 2024 and $8.5 million for the second quarter of 2023. We have continued to drive efficiencies in 2024, resulting in lower overhead costs. We expect the lower operating costs we have realized this quarter to continue in future quarters.

Speaker Change: Grid service revenue margins are generally 30% while software and engineering service margins are as high as 100%.

Speaker Change: Operating costs, excluding cost of sales, was $6 million for the second quarter of 2024, compared to $7.5 million for the first quarter of 2024, and $8.5 million for the second quarter of 2023.

David Robson: The year over year decrease in revenues is also primarily driven by the reduction in charge of hardware sales due to the timing of EPA funding awards this year versus last year. Margin's on products, services, and grant revenues were 24.9% for the second quarter of 2024 compared to 8% for the year-go period. Year to date margins through June 30, 2024 were 29.9% compared with 14.2% for the year-go period. The increase is primarily due to improved pricing on hardware sales and a higher mix of service and grant revenues this quarter compared with last year.

Speaker Change: We have continued to drive efficiencies in 2024, resulting in lower overhead costs. We expect the lower operating costs we have realized this quarter to continue in future quarters.

David Robson: Cash Operating Expenses, excluding cost of sales, stock compensation, and depreciation and amortization expense, declined to $5.4 million in the second quarter of 2024 versus $6.3 million in the first quarter of 2024 and $7.3 million in the second quarter of 2023. Other income was $1.8 million in the second quarter of 2024, up from $0.3 million in the year-ago quarter. The current period benefited from a non-cash gain from the change in the fair value of warrants.

Speaker Change: Cash operating expenses.

Speaker Change: excluding cost of sales

Speaker Change: stock compensation, and depreciation and amortization expense declined to $5.4 million in the second quarter of 2024 versus $6.3 million in the first quarter of 2024 and $7.3 million in the second quarter of 2023.

David Robson: Excluding grant revenues margins on product and service revenues were 10.1% for the second quarter of 2024 compared to 4.8% in the year-go period. As a reminder margins can be lumpy from quarter to quarter depending on the mix, DC Charger gross margins at standard pricing generally range from 15 to 25%, while AC Charger gross margins are approximately 50%, but in dollar terms are a smaller fraction of the revenue of a DC Charger.

David Robson: Other income was 1.8 million in the second quarter of 2024, up from 0.3 million in the year-go quarter. The current period benefited from a non-cash gain from the change in the fair value of warrants. Net loss attributable to newly common stockholders decreased in the second quarter of 2024 to 3.9 million from a net loss of 8 million in the second quarter of 2023. The improvement was primarily a result of lower operating expenses and non-cash gains from the change in the fair value of warrants this quarter compared to the second quarter of 2023. Now, turning to our balance sheet, we had approximately 1.4 million in cash as of June 30, 2024, excluding half a million in restrictive cash, which represents a decrease of 0.1 million from December 2023.

Speaker Change: Other income was $1.8 million in the second quarter of 2024, up from $0.3 million in the year-ago quarter. The current period benefited from a non-cash gain from the change in the fair value of warrants.

David Robson: The net loss attributable to Nuvve common stockholders decreased in the second quarter of 2024 to $3.9 million, from a net loss of $8 million in the second quarter of 2023. The improvement was primarily a result of lower operating expenses and non-cash gains from the change in the fair value of warrants this quarter compared to the second quarter of 2023. Now, turning to our balance sheet, we had approximately $1.4 million in cash as of June 30, 2024, excluding $0.5 million in restricted cash, which represents a decrease of $0.1 million from December 2023. The decrease was primarily a result of $8.7 million used in operating activity.

Speaker Change: Net loss attributable to newly common stockholders decreased in the second quarter of 2024 to $3.9 million.

Speaker Change: from a net loss of $8 million in the second quarter of 2023. The improvement was primarily a result of lower operating expenses and non-cash gains from the change in the fair value of warrants this quarter compared to the second quarter of 2023.

David Robson: Grid service revenue margins are generally 30%, while software and engineering service margins are as high as 100%. Operating cost, excluding cost to sales was 6 million for the second quarter of 2024 compared to 7.5 million for the first quarter of 2024 and 8.5 million for the second quarter of 2023. We have continued to drive efficiencies in 2024 resulting in lower overhead costs. We expect the lower operating costs we have realized this quarter to continue in future quarters.

Speaker Change: Now, turning to our balance sheet, we had approximately $1.4 million in cash as of June 30, 2024, excluding $0.5 million in restricted cash, which represents a decrease of $0.1 million from December 2023.

David Robson: The decrease was primarily a result of $8.7 million used in operating activities. Subsequent to the quarter ended June 30, 2024, in August, we received $1 million in proceeds from a short-term loan, which will be paid off in monthly payments with interest through March of 2025. During the quarter, inventory is decreased by 2.1 million to 6 million at June 30, 2024, as we continue to reduce inventory levels. The net decline in inventory during the quarter was partially offset by the recording of LCFS credits at customer sites generated during the same period. Accounts payable at the end of the second quarter of 2024 was 1.9 million, an increase of 0.4 million compared to the first quarter of 1.5 million.

Speaker Change: The decrease was primarily a result of $8.7 million used in operating activities.

David Robson: Subsequent to the quarter ended June 30, 2024, in August, we received $1 million in proceeds from a short-term loan, which will be paid off in monthly payments with interest through March of 2025. During the quarter, inventories decreased by 0.1 million to 6 million at June 30, 2024 as we continue to reduce inventory levels. The net decline in inventory during the quarter was partially offset by the recording of LCFS credits at customer sites generated during the same period.

David Robson: Cash operating expenses, excluding cost to sales, stock compensation, and depreciation and amortization expense declined to 5.4 million in the second quarter of 2024 versus 6.3 million in the first quarter of 2024 and 7.3 million in the second quarter of 2023. Other income was 1.8 million in the second quarter of 2024 up from 0.3 million in the year-go quarter. The current period benefited from a non-cash gain from the change in the fair value of warrants.

Speaker Change: Subsequent to the quarter ended June 30, 2024, in August we received $1 million in proceeds from a short-term loan.

Speaker Change: which will be paid off in monthly payments with interest through March of 2025.

Speaker Change: During the quarter, inventories decreased by 0.1 million to 6 million at June 30, 2024, as we continue to reduce inventory levels.

Speaker Change: The net decline in inventory during the quarter was partially offset by the recording of LCFS credits at customer sites generated during the same period.

David Robson: Accounts payable at the end of the second quarter of 2024 was $1.9 million, an increase of $0.4 million compared to the first quarter of $1.5 million. Now, turning to our megawatts under management and estimated future grid service revenues. As a reminder, megawatts under management is a metric we use to quantify the aggregated amount of electrical capacity from the deployment of our V1G and V2G chargers, which are primarily deployed in the electric school bus market in the U.S. and in light-duty fleet deployments in Europe, in addition to stationary batteries.

Speaker Change: Accounts payable at the end of the second quarter of 2024 was $1.9 million, an increase of $0.4 million, compared to the first quarter of $1.5 million.

David Robson: Net loss attributable to newly common stockholders decreased in the second quarter of 2024 to 3.9 million from a net loss of 8 million in the second quarter of 2023. The improvement was primarily a result of lower operating expenses and non-cash gains from the change in the fair value of warrants this quarter compared to the second quarter of 2023.

David Robson: Now, turning to our Megawatt's undermanagement and estimated future grid service revenues, as a reminder, Megawatt's undermanagement was a metric we used to quantify the aggregated amount of electrical capacity from the deployment of our V1G and V2G chargers, which are primarily deployed in electric school buses, in the electric school bus market, in the US, and in light duty fleet deployments in Europe. In addition to stationary batteries, currently, these chargers and batteries are located throughout the United States, Europe, and Japan. Megawatt's undermanagement in the second quarter increased 1.7% over the first quarter of 2024 to 27.1 megawatts from 26.6 megawatts, a 35.3% increase compared to the second quarter of 2023.

Speaker Change: Now.

Speaker Change: Turning to our megawatts under management and estimated future grid service revenues. As a reminder, megawatts under management is a metric we use to quantify the aggregated amount of electrical capacity from the deployment of our V1G and V2G chargers.

Speaker Change: which are primarily deployed in the electric school bus market in the U.S. and in light-duty fleet deployments in Europe, in addition to stationary batteries.

David Robson: Now, turning to our balance sheet, we had approximately 1.4 million in cash as of June 30, 2024, excluding half a million in restrictive cash, which represents a decrease of 0.1 million from December 2023. The decrease was primarily a result of $8.7 million used in operating activities. Subsequent to the quarter ended June 30, 2024, in August we received $1 million in proceeds from a short-term loan which will be paid off in monthly payments with interest through March of 2025.

David Robson: Currently, these chargers and batteries are located throughout the United States, Europe, and Japan. Megawatts under management in the second quarter increased 1.7% over the first quarter of 2024 to 27.1 megawatts from 26.6 megawatts, a 35.3% increase compared to the second quarter of 2023. In terms of its composition, 7.1 megawatts were from stationary batteries, and 20 megawatts were from EV chargers.

Speaker Change: Currently these chargers and batteries are located throughout the United States, Europe, and Japan.

Speaker Change: Megawatts under management in the second quarter increased

Speaker Change: 1.7% over the first quarter of 2024 to 27.1 megawatts from 26.6 megawatts.

Speaker Change: A 35.3% increase compared to the second quarter of 2023.

David Robson: In terms of its composition, 7.1 megawatts were from stationary batteries, and 20 megawatts were from EV chargers. We continue to expect further growth at our Megawatt's undermanagement as we go through the remainder of the year and continue to commission our backlog of customer orders we have earned. In addition to new business, we anticipate winning, which we have visibility to on our pipeline for both EV chargers and stationary batteries. Now, turning to backlog on June 30, 2024, our hardware and service backlog decreased to 18.2 million, a decrease of 0.8 million from 19 million reported at March 31, 2024.

Speaker Change: In terms of its composition, 7.1 megawatts were from stationary batteries, and 20 megawatts were from EV chargers.

David Robson: We continue to expect further growth in our megawatts under management as we go through the remainder of the year and continue to commission our backlog of customer orders we have earned. In addition to new business, we anticipate winning, which we have visibility into in our pipeline for both EV chargers and stationary batteries. Now turning to backlog, on June 30th, 2024, our hardware and service backlog decreased to $18.2 million, a decrease of $0.8 million from $19 million reported on March 31st, 2024. The decrease is related to the conversion of backlog into sales this quarter, in addition to adjustments to contract amounts with two customers.

David Robson: During the quarter, inventory is decreased by 2.1 million to 6 million at June 30, 2024, as we continue to reduce inventory levels. The net decline in inventory during the quarter was partially offset by the recording of LCFS credits at customer sites generated during the same period. Accounts payable at the end of the second quarter of 2024 was 1.9 million, an increase of 0.4 million compared to the first quarter of 1.5 million.

Speaker Change: We continue to expect further growth in our megawatts under management as we go through the remainder of the year and continue to commission our backlog of customer orders we have earned.

Speaker Change: In addition to new business, we anticipate winning, which we have visibility to in our pipeline for both EV chargers and stationary batteries.

Speaker Change: Now turning to backlog, on June 30th, 2024, our hardware and service backlog decreased to 18.2 million, a decrease of 0.8 million from 19 million reported at March 31st, 2024.

David Robson: The decrease is related to the conversion of backlog into sales this quarter, in addition to adjustments to contract amounts with two customers. Year-to-date backlog in 2024 has increased by 14.3 million from 3.9 million at December 31, 2023, which is primarily related to a large hub project in Fresno, California, which was closed during Q1 of this year.

David Robson: Now, turning to our Megawatt's undermanagement and estimated future grid service revenues, as a reminder, Megawatt's undermanagement was a metric we used to quantify the aggregated amount of electrical capacity from the deployment of our V1G and V2G chargers, which are primarily deployed in electric school, in the electric school bus market, in the US, and in light duty fleet deployments in Europe. In addition to stationary batteries, currently, these chargers and batteries are located throughout the United States, Europe, and Japan.

Speaker Change: The decrease is related to the conversion of backlog into sales this quarter, in addition to adjustments to contract amounts with two customers.

David Robson: Year-to-date backlog for 2024 has increased by 14.3 million from 3.9 million at December 31, 2023, which is primarily related to a large hub project in Fresno, California, which was closed during Q1 of this year. That concludes my portion of the prepared remarks. Gregory, I'll go back to you to conclude. Thanks, David. So this quarter 2024, this second quarter 2024 has remained challenging. We are very focused on closing on the large projects we have been awarded while the school bus segment is getting back on track.

Speaker Change: Year-to-date backlog in 2024 has increased by 14.3 million from 3.9 million at December 31st, 2023.

Speaker Change: which is primarily related to a large hub project in Fresno, California, which was closed during Q1 of this year.

Gregory Poilan: That concludes my portion of the prepared remarks, Gregory. Back to you to conclude. Thanks, David. But this quarter, 2024, the 7th quarter, 2024 has remained challenging. We are very focused on closing on the last projects we have been awarded while the school bus segment is getting back on track. We also believe that expanding our reach within segments where we can bring significant value and where government support is strong will allow us to diversify our sources of revenue and bring more color to color stability. These are also the points where we feel like we have good control on the timing.

Speaker Change: That concludes my portion of the prepared remarks. Gregory, back to you to conclude.

David Robson: Megawatt's undermanagement in the second quarter increased 1.7% over the first quarter of 2024 to 27.1 megawatts from 26.6 megawatts, a 35.3% increase compared to the second quarter of 2023. In terms of its composition, 7.1 megawatts were from stationary batteries, and 20 megawatts were from EV chargers. We continue to expect further growth at our Megawatt's undermanagement as we go through the remainder of the year and continue to commission our backlog of customer orders we have earned.

Gregory Poilasne: Thanks, David.

Gregory Poilasne: So this quarter 2024, this second quarter 2024, has remained challenging. We are very focused on closing on the large projects we have been awarded while the school bus...

David Robson: We also believe that expanding our reach within segments where we can bring significant value and where government support is strong will allow us to diversify our sources of revenue and bring more quarter-to-quarter stability. These are also deployments where we feel like we have good control at all times.

Gregory Poilasne: segment is getting back on track. We also believe that expanding our reach within segments where we can bring significant value and where government support is strong will allow us to diversify our sources of revenue and bring more quarter-to-quarter stability.

Gregory Poilasne: These are also deployments where we feel like we have good control on the timing.

Gregory Poilan: Finally, we hope to share the progress we are making on a strategic path doing. Thank you.

Operator: Finally, we hope to share the progress we are making on our strategic path. Thank you. We will now begin the question and answer session. To ask a question, you may press star, then 1 on your touchtone phone. If you are using a speakerphone, please pick up your handset before pressing the keys.

David Robson: In addition to new business, we anticipate winning, which we have visibility to on our pipeline for both EV chargers and stationary batteries. Now, turning to backlog on June 30, 2024, our hardware and service backlog decreased to 18.2 million, a decrease of 0.8 million from 19 million reported at March 31, 2024. The decrease is related to the conversion of backlog into sales this quarter, in addition to adjustments to contract amounts with two customers. Year-to-date backlog in 2024 has increased by 14.3 million from 3.9 million at December 31, 2023, which is primarily related to a large hub project in Fresno, California, which was closed during Q1 of this year.

Gregory Poilasne: Finally, we hope to share the progress we are making on a strategic path. Thank you.

Operator: We will now begin the question and answer session. To ask a question, you may press star, then one on your touchstone phone. If you are using a speaker phone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star, then two. At this time, we will pause momentarily to assemble our roster. Again, if you have a question, please press star, then one.

Operator: If at any time your question has been addressed, and you would like to withdraw your question, please press star then 2. At this time, we will pause momentarily to assemble our roster. Again, if you have a question, please press star then 1.

Operator: Seeing no questions, this will conclude our question and answer session. I would like to turn the conference back over to Gregory Poilasne for any closing remarks. Again, I want to thank you for listening to us today and looking forward to sharing more with you in the very near future. The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

Gregory Poilasne: [inaudible]

Speaker Change: We will now begin the question and answer session. To ask a question, you may press star, then one on your touchtone phone.

Speaker Change: If you are using a speakerphone, please pick up your handset before pressing the keys.

Speaker Change: If at any time your question has been addressed and you would like to withdraw your question, please press star then 2.

Speaker Change: David Robson,

Speaker Change: Again, if you have a question, please press star then 1.

Operator: Seeing no questions, this will conclude our question-and-answer session.

Speaker Change: David Robson, Gregory Poilasne, Theodoro Smith, Nuvve Holding

Gregory Poilan: I would like to turn the conference back over to Greco-Lip-Olan for any closing remarks. Again, I want to thank you for listening to us today and looking forward to sharing more with you in the very near future.

Speaker Change: Seeing no questions, this will conclude our question and answer session. I would like to turn the conference back over to Gregory Poilasne for any closing remarks.

Gregory Poilan: That concludes my portion of the prepared remarks, Gregory, back to you to conclude. Thanks, David. But this quarter, 2024, the 7th quarter, 2024 has remained challenging. We are very focused on closing on the last projects we have been awarded while the school bus segment is getting back on track. We also believe that expanding our reach within segments where we can bring significant value and where government support is strong will allow us to diversify our sources of revenue and bring more color to color stability. These are also the points where we feel like we have good control on the timing.

Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

Speaker Change: Bye-bye.

Speaker Change: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

Gregory Poilan: Finally, we hope to share the progress we are making on a strategic path doing. Thank you.

Operator: We will now begin the question and answer session. To ask a question, you may press star then one on your touchstone phone. If you are using a speaker phone, please pick up your handset before pressing the keys.

Speaker Change: [inaudible]

Operator: If at any time your question has been addressed and you would like to withdraw your question, please press star then two. At this time, we will pause momentarily to assemble our roster. Again, if you have a question, please press star then one.

Operator: Seeing no questions, this will conclude our question and answer session.

Gregory Poilan: I would like to turn the conference back over to Greco-Lip-Olan for any closing remarks.

Gregory Poilan: Again, I want to thank you for listening to us today and looking forward to sharing more with you in the very near future.

Operator: The conference has now concluded. Thank you for attending today's presentation.

Operator: You may now disconnect.

Q2 2024 Nuvve Holding Corp Earnings Call

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