Company raises 2023 revenue target to $110 - $120 million and targets adjusted EBITDA break even run rate by December 2024
Second quarter 2023 total revenues increased 186% to $32.8 million compared to $11.5 million in second quarter of 2022
211% increase in service revenues(1) to $7.0 million in second quarter of 2023 compared to $2.2 million in second quarter of 2022
253% increase in network fees to $1.7 million in second quarter of 2023 compared to $0.5 million in second quarter of 2022
528% increase in gross profit to $12.3 million in second quarter of 2023 compared to $2.0 million in second quarter of 2022
Gross margin improved to 37% in second quarter of 2023 compared to 17% in second quarter of 2022
5,830 charging stations contracted, deployed or sold in second quarter of 2023
Miami Beach, FL, (August 8, 2023) -- Blink Charging Co. (Nasdaq: BLNK) (“Blink” or the “Company”), a leading manufacturer, owner, operator, and provider of electric vehicle (EV) charging equipment and services, today announced financial results for the second quarter and six months ended June 30, 2023. The following top-line highlights are in thousands of dollars and unaudited.
Three Months Ended June 30, 2023 2022 Increase Product Sales $ 24,587 $ 8,828 179% Service Revenues (1) 6,991 2,245 211% Other Revenues(2) 1,264 413 206% Total Revenues $ 32,842 $ 11,486 186%
Service Revenues consist of charging service revenues, network fees, and car-sharing service revenues.
Other Revenues consist of other revenues, warranties, and grants and rebates.
“This was the strongest quarter in the Company’s history reflecting the strength of our full service offering as well as a market that is just beginning its growth trajectory. Blink is the only U.S. vertically integrated EV charging company, manufacturing and selling our charging equipment while also owning and operating our own chargers and network. Our broad capabilities and go-to-market strategy provide us the flexibility to generate revenue from a diversified and growing customer base and allow us to limit some of the risks associated with being either an equipment manufacturer or a charging provider. Simply put, Blink is a sustainable full-service EV infrastructure provider driving considerable growth and value through our comprehensive business model and synergistic revenue streams,” said Brendan Jones, President and Chief Executive Officer. “The revenue growth achieved in the second quarter was largely organic. We saw strong demand for both equipment and services in the U.S. division during the quarter, and in Europe our owner/operator strategy made significant gains. It is important to note that during the quarter our operating expenses were impacted by one-time severance expenses which will not recur in future quarters. As we move through the balance of the year, we remain focused on developing our innovative technology, products, and services to meet the growing demand for reliable EV charging equipment and infrastructure as drivers and fleets increasingly adopt EVs as their vehicles of choice. Notably, Blink supports all OEMs and we recently announced that we’ll incorporate both NACS and CCS into our full line of charging products, creating a portfolio of universally accessible EV chargers, to meet charging needs regardless of EV brand or type. We’re optimistic about the rapidly evolving charging landscape and believe Blink is well positioned to continue to capture market share as consumer recognition of our brand, our advanced technology and our innovative products continues to gain traction.” Revenue and Adjusted EBITDA Targets Given the strong momentum in the business, Blink is increasing its 2023 revenue target to $110 - $120 million from $100 - $110 million. Furthermore, the Company is targeting achieving a positive Adjusted EBITDA run rate by December 2024. The Company reiterates its previously stated annual gross margin target of 30%+. “We are seeing considerable organic growth and expect to drive towards profitability as our business continues to scale and we realize efficiencies across our organization,” Mr. Jones concluded. Second Quarter Financial Results Revenues Total Revenues increased 186% to $32.8 million for the second quarter of 2023 compared to the second quarter of 2022, an increase of $21.4 million. Product Sales increased 179% to $24.6 million in the second quarter of 2023, an increase of $15.8 million from the same period in 2022 primarily driven by increased sales of commercial chargers, DC fast chargers, and residential chargers, as well as revenues from the 2022 acquisitions. Service Revenues, which consist of charging service revenues, network fees, and car-sharing service revenues, increased 211% to $7.0 million in the second quarter of 2023, up $4.7 million from the second quarter of 2022, primarily driven by greater utilization of chargers in the U.S. and internationally, an increased number of chargers on the Blink networks, revenues associated with the Blink Mobility car-sharing service program, and revenues from the 2022 acquisitions. Other Revenues, which are comprised of warranty fees, grants and rebates, and other revenues, increased 206% to $1.3 million in the second quarter of 2023, an increase of $851,000. Gross Profit Gross Profit increased 528% to $12.3 million, or 37% of revenue, in the second quarter of 2023, compared to gross profit of $2.0 million, or 17% of revenue, in the second quarter of 2022. Gross margin increased in the second quarter of 2023, when compared to first quarter of 2023, due primarily to increased sales of chargers manufactured in-house, which provide a higher margin than contract manufactured chargers, as well as growth in service revenue such as charging revenues and network fees. Net Loss and Loss Per Share Net Loss for the second quarter of 2023 was $41.5 million, or $(0.67) per share, compared to a Net Loss of $22.6 million, or $(0.52) per share in the second quarter of 2022. Net Loss for the three and six months ended June 30, 2023, includes the impact of additional non-cash share-based compensation and a one-time non-recurring payment to our former CEO as well as the non-recurring bonus expense related to the performance milestone achieved by our CTO. The milestone relates to the design and launch of Blink’s recently implemented new network. Adjusted EBITDA) and Adjusted EPS Adjusted EBITDA for the second quarter of 2023 was a loss of $13.5 million compared to an Adjusted EBITDA loss of $15.6 million in the prior year period. Adjusted EBITDA (defined as earnings (loss) before interest income (expense), provision for income taxes, depreciation and amortization, stock-based compensation, acquisition related costs and one-time non-recurring expense) is a non-GAAP financial measure management uses as a proxy for net income (loss). See “Non-GAAP Financial Measures” for a reconciliation of GAAP to Non-GAAP financial measures included at the end of this release. Adjusted EPS for the second quarter of 2023 was a loss of $(0.44) compared to an adjusted EPS loss of $(0.41) in the second quarter of 2022. Adjusted EPS (defined as earnings (loss) per diluted share) is a non-GAAP financial measure management uses to assess earnings per diluted share excluding non-recurring items such as acquisition-related costs, amortization expense of intangible assets, additional stock-based compensation expense, and one-time non-recurring expense. See “Non-GAAP Financial Measures” for a reconciliation of GAAP to Non-GAAP financial measures included at the end of this release. Cash and cash equivalents As of June 30, 2023, Cash and Cash Equivalents totaled $75 million. Recent Highlights:
Signed agreement with AAA to offer electric vehicle products to affiliated service providers nationwide.
Expanded electric vehicle charging accessibility by incorporating the North America Charging Standard (NACS) and Combined Charging System (CCS) into entire product line.
Integrated former SemaConnect chargers into Blink’s global network.
Teamed up with Amerit Fleet Solutions to provide preventative maintenance support for Blink commercial fleet customers.
Blink Mobility announced the acquisition of Envoy, expanding its position in the growing EV car-sharing industry.
Awarded $7 million to implement new car-share service in New Jersey for underserved communities.
Blue Corner signed a 4-year agreement with APCOA to deploy and maintain EV chargers in parking facilities in Belgium.
Selected as preferred provider for Mike Albert Fleet Solutions referral program aimed to electrify customers.
Earnings Conference Call Blink Charging will host a conference call and webcast to discuss second quarter 2023 results today, August 8, 2023 at 4:30 PM, Eastern Time. To access the live webcast, log onto the Blink Charging website at www.blinkcharging.com, and click on the News/Events section of the Investor Relations page. Investors may also access the webcast via the following link: https://www.webcaster4.com/Webcast/Page/2468/48672 To participate in the call by phone, dial (888) 506-0062 approximately five minutes prior to the scheduled start time. International callers please dial (973) 528-0011. Callers should use access code: 561714. A replay of the teleconference will be available until September 7, 2023 and may be accessed by dialing (877) 481-4010. International callers may dial (919) 882-2331. Callers should use conference ID: 48672.
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BLINK CHARGING CO. AND SUBSIDIARIES Condensed Consolidated Statements of Operations (in thousands, except for share and per share amounts) (unaudited)
2023 2022 2023 2022 For The Three Months Ended June 30, For The Six Months Ended June 30, 2023 2022 2023 2022 Revenues: Product sales $ 24,587 $ 8,828 $ 40,976 $ 16,880 Charging service revenue - company-owned charging stations 4,367 1,494 7,252 2,601 Network fees 1,667 472 3,295 633 Warranty 921 99 1,314 166 Grant and rebate 188 125 237 200 Car-sharing services 957 279 1,209 518 Other 155 189 227 288 Total Revenues 32,842 11,486 54,510 21,286 Cost of Revenues: Cost of product sales 13,159 6,369 24,890 12,471 Cost of charging services - company-owned charging stations 743 351 1,630 534 Host provider fees 2,239 821 3,886 1,372 Network costs 495 182 932 416 Warranty and repairs and maintenance 1,415 523 2,363 634 Car-sharing services 1,594 659 2,231 1,085 Depreciation and amortization 906 624 1,744 1,231 Total Cost of Revenues 20,551 9,529 37,676 17,743 Gross Profit 12,291 1,957 16,834 3,543 Operating Expenses: Compensation 37,990 10,779 60,699 20,038 General and administrative expenses 9,449 9,002 17,927 13,429 Other operating expenses 4,916 4,138 9,111 7,080 Total Operating Expenses 52,355 23,919 87,737 40,547 Loss From Operations (40,064 ) (21,962 ) (70,903 ) (37,004 ) Other Income (Expense): Interest expense (786 ) (139 ) (1,403 ) (139 ) (Loss) gain on foreign exchange (1,026 ) (244 ) 781 (241 ) Change in fair value of derivative and other accrued liabilities - (73 ) 10 (73 ) Other income (expense), net 600 (203 ) 650 (307 ) Total Other Income (Expense) (1,212 ) (659 ) 38 (760 ) Loss Before Income Taxes $ (41,276 ) $ (22,621 ) $ (70,865 ) $ (37,764 ) Provision for income taxes (206 ) - (418 ) - Net Loss $ (41,482 ) $ (22,621 ) $ (71,283 ) $ (37,764 ) Net Loss Per Share: Basic $ (0.67 ) $ (0.52 ) $ (1.20 ) $ (0.88 ) Diluted $ (0.67 ) $ (0.52 ) $ (1.20 ) $ (0.88 ) Weighted Average Number of Common Shares Outstanding: Weighted Average Number of Common Shares Outstanding: Basic 61,882,330 43,509,693 59,176,129 42,973,758 Diluted 61,882,330 43,509,693 59,176,129 42,973,758
BLINK CHARGING CO. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (in thousands, except for share amounts)
June 30, 2023 December 31, 2022 (unaudited) Assets Current Assets: Cash and cash equivalents $ 74,464 $ 36,562 Accounts receivable, net 43,443 23,581 Inventory, net 45,361 34,740 Prepaid expenses and other current assets 5,759 4,399 Total Current Assets 169,027 99,282 Restricted cash 76 71 Property and equipment, net 31,236 25,862 Operating lease right-of-use asset 8,163 4,174 Intangible assets, net 27,033 26,582 Goodwill 232,220 203,710 Other assets 686 2,861 Total Assets $ 468,441 $ 362,542 Liabilities and Stockholders’ Equity Current Liabilities: Accounts payable $ 30,066 $ 24,585 Accrued expenses and other current liabilities 17,809 13,109 Notes payable 4,795 10 Current portion of operating lease liabilities 2,015 1,738 Current portion of financing lease liabilities 1,180 306 Current portion of deferred revenue 12,678 10,572 Total Current Liabilities 68,543 50,320 Contingent consideration 1,357 1,316 Consideration payable 60,749 40,608 Operating lease liabilities, non-current portion 7,035 3,030 Financing lease liabilities, non-current portion 889 408 Other liabilities 386 645 Deferred revenue, non-current portion 8,924 5,258 Total Liabilities 147,883 101,585 Commitments and contingencies (Note 7) - - Stockholders’ Equity: Common stock, $0.001 par value, 500,000,000 shares authorized, 63,994,317 and 51,476,445 shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively 64 51 Additional paid-in capital 728,558 597,982 Accumulated other comprehensive loss (2,751 ) (3,046 Accumulated deficit (405,313 ) (334,030 Total Stockholders’ Equity 320,558 260,957 Total Liabilities and Stockholders’ Equity $ 468,441 $ 362,542
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. BLINK CHARGING CO. AND SUBSIDIARIES Consolidated Statements of Cash Flows (In thousands) (unaudited)
2023 2022 For The Six Months Ended June 30, 2023 2022 Cash Flows From Operating Activities: Net loss $ (71,283 ) $ (37,764 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 6,825 3,393 Non-cash lease expense 833 215 Change in fair value of contingent consideration 41 73 Loss on disposal of fixed assets 33 - Change in fair value of derivative and other accrued liabilities 10 - Provision for bad debt 1,318 798 Provision for slow moving and obsolete inventory 65 161 Stock-based compensation: Common stock 10,500 962 Options 3,857 2,027 Warrants 5,082 - Changes in operating assets and liabilities: Accounts receivable and other receivables (20,630 ) (2,728 ) Inventory (11,855 ) (8,105 ) Prepaid expenses and other current assets (1,073 ) 4,270 Other assets 2,219 (1,339 ) Accounts payable and accrued expenses 7,379 4,491 Other liabilities (258 ) 50 Lease liabilities (2,232 ) (146 ) Deferred revenue 5,450 2,656 Total Adjustments 7,564 6,778 Net Cash Used In Operating Activities (63,719 ) (30,986 ) Cash Flows From Investing Activities: Purchase consideration of Envoy, net of cash acquired (5,981 ) - Purchase consideration of SemaConnect, net of cash acquired - (38,338 ) Purchase consideration of Electric Blue, net of cash acquired - (11,360 ) Capitalization of engineering costs (526 ) (288 ) Purchases of property and equipment (6,766 ) (2,247 ) Net Cash Used In Investing Activities (13,273 ) (52,233 ) Cash Flows From Financing Activities: Proceeds from sale of common stock in public offering, net [1] 113,254 - Proceeds from exercise of options and warrants 835 92 Repayment of financing liability in connection with finance lease (1,443 ) (71 ) Payment of financing liability in connection with internal use software (220 ) (235 ) Net Cash Provided By (Used In) Financing Activities 112,426 (214 ) Effect of Exchange Rate Changes on Cash and Cash Equivalents 2,473 (2,350 ) Net Increase (Decrease) In Cash and Cash Equivalents and Restricted Cash 37,907 (85,783 ) Cash and Cash Equivalents and Restricted Cash - Beginning of Period 36,633 175,049 Cash and Cash Equivalents and Restricted Cash - End of Period $ 74,540 $ 89,266 Cash and cash equivalents and restricted cash consisted of the following: Cash and cash equivalents $ 74,464 $ 85,136 Restricted cash 76 4,130 Total Cash and cash equivalents and restricted cash $ 74,540 $ 89,266
[1] Includes gross proceeds of $118,928, less issuance costs of $5,674.
Non-GAAP Financial Measures The following table reconciles Net Loss attributable to Blink Charging Co. to EBITDA and Adjusted EBITDA for the periods shown:
For The Three Months Ended For The Six Months Ended June 30, June 30, 2023 2022 2023 2022 Net Loss $ (41,482) $ (22,621) $ (71,283) $ (37,764) Add: Interest Expense 786 139 1,403 139 Provision for Income Taxes 206 - 418 - Depreciation and amortization 3,659 2,635 6,825 3,393 EBITDA (36,831) (19,847) (62,637) (34,232) Add: Stock-based compensation 11,663 1,027 19,438 2,989 Acquisition-related costs 51 3,216 283 3,274 One-time non-recurring expense 11,632 - 11,632 - Adjusted EBITDA $ (13,485) $ (15,604) $ (31,284) $ (27,969)
The following table reconciles EPS attributable to Blink Charging Co. to Adjusted EPS for the periods shown:
For The Three Months Ended For The Six Months Ended June 30, June 30, 2023 2022 2023 2022 Net Income - per diluted share $ (0.67) $ (0.52) $ (1.20) $ (0.88) Per diluted share adjustments: Add: Amortization expense of intangible assets 0.04 0.04 0.08 0.04 Acquisition-related costs 0.00 0.07 0.00 0.08 One-time non-recurring expense 0.19 - 0.20 - Adjusted EPS $ (0.44) $ (0.41) $ (0.92) $ (0.76)
Blink Charging Co. publicly reports its financial information in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). To facilitate external analysis of the Company’s operating performance, Blink Charging also presents financial information that is considered “non-GAAP financial measures” under Regulation G and related reporting requirements promulgated by the U.S. Securities and Exchange Commission. Non-GAAP measures should be considered in addition to, and not as a substitute for, or superior to, Net Income (Loss) or other measures of financial performance prepared in accordance with GAAP and may be different than those presented by other companies, including Blink Charging’s competitors. EBITDA and Adjusted EBITDA are not performance measures calculated in accordance with GAAP and are therefore considered non-GAAP measures. Reconciliation tables are presented above. EBITDA is defined as earnings (loss) attributable to Blink Charging Co. before interest income (expense), provision for income taxes, depreciation and amortization. Blink Charging believes EBITDA is useful to its management, securities analysts, and investors in evaluating operating performance because it is one of the primary measures used to evaluate the economic productivity of the Company’s operations, including its ability to obtain and maintain its customers, its ability to operate its business effectively, the efficiency of its employees and the profitability associated with their performance. It also helps Blink Charging’s management, securities analysts, and investors to meaningfully evaluate and compare the results of the Company’s operations from period to period on a consistent basis by removing the impact of its merger and acquisition expenses, financing transactions, and the depreciation and amortization impact of capital investments from its operating results. The Company also believes that Adjusted EBITDA, defined as EBITDA adjusted for stock-based compensation expense, acquisition related costs, and one-time non-recurring expenses is useful to securities analysts and investors to evaluate the Company’s core operating results and financial performance because it excludes items that are significant non-cash or non-recurring expenses reflected in the Condensed Consolidated Statements of Operations. Our definition of Adjusted EBITDA and Adjusted EPS may differ from other companies reporting similarly named measures. These measures should be considered in addition to, and not as a substitute for, or superior to, other measures of financial performance prepared in accordance with GAAP, such as Net Loss, and Diluted Earnings per Share.