Organic growth in hardware and network services and acquisitions drive second quarter results
- 164% increase in total revenues to $11.5 million in Q2 2022 compared to $4.4 million in Q2 2021
- 154% increase in service revenues(1) to $2.2 million in Q2 2022 compared to $0.9 million in Q2 2021
- 5,631 charging stations contracted, deployed or sold in Q2 2022; increase of 73% over Q2 2021
- Acquired SemaConnect creating complete vertical integration of supply chain, engineering and U.S. based, in-house manufacturing
- Acquired EB Charging marking Blink’s first entry into the fast-growing UK and adjacent markets
Miami Beach, FL, August 8, 2022 — Blink Charging Co. (Nasdaq: BLNK, BLNKW) (“Blink” or the “Company”), a leading 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, 2022.
The following financial highlights are in thousands of dollars and unaudited.
|Three Months Ended||Six Months Ended|
|June 30,||June 30,|
|2022||2021||% Increase||2022||2021||% Increase|
|Service Revenues (1)||2,245||881||154||3,752||1,219||208|
(1) Service Revenues consist of charging service revenues, network fees, and ride-sharing service revenues.
Record second quarter 2022 results were highlighted by considerable organic growth complemented by the acquisitions of EB Charging in April and SemaConnect in June. These transactions added thousands of new chargers and users to Blink’s portfolio and further strengthened Blink’s unique and competitive business models.
“Our second quarter results are indicative of the fundamental strengths of our business due to organic growth as well as growth from acquisitions,” stated Michael D. Farkas, Chairman and Chief Executive Officer of Blink Charging. “We provide unparalleled flexibility and support to our site hosts through a variety of business models and advanced hardware solutions. We have launched several new products throughout the first six months of 2022 that address charging demands across the entire EV ecosystem including home, fleet, multifamily and retail locations, which will be excellent additions to our portfolio of available products. In essence, whether we own and operate or sell hardware, Blink strives to deliver best-in-class products and services.”
Mr. Farkas continued, “Strategic acquisitions remain a key part of our growth strategy. In the second quarter, we completed the acquisition of SemaConnect, adding over 12,800 active chargers and 151,000 registered users to Blink’s portfolio. Importantly, our acquisition of SemaConnect also provides us with vertically integrated manufacturing capabilities in the United States. This instantly qualifies Blink for the Buy American mandate and the $7.5 billion in grant money being allocated by the U.S. government to further EV adoption nationwide. Alongside our strong organic results, acquisitions are a key growth driver for us, and we look forward to growing our charging footprint and expanding the Blink network.”
“We continue to see success with municipal and government contracts, as well as with state and federal programs awarding grant funds for the promotion of a nationwide EV infrastructure,” says Brendan Jones, President of Blink Charging. “In the second quarter, we entered into a cooperative purchasing agreement with the Illinois Region 1 Planning Council to expand electric vehicle charging options in public spaces throughout northern Illinois, and we were selected as a purchasing program vendor by the Florida Sherriff’s Association to provide EV charging stations. Moreover, we received $2 million in grants from state and federal programs looking to further EV adoption.”
Mr. Farkas concluded, “This is an exciting time for Blink as we continue to rapidly expand our market presence in an industry that is poised for exponential growth. We’re energized by the developments that we are making and the opportunities that we are seeing in the EV charging industry as we continue to establish ourselves as a leading provider of EV charging technology in services on a global scale.”
Total Revenues increased 164% to $11.5 million for the second quarter of 2022 compared to the second quarter of 2021.
Product Sales increased 170% to $8.8 million in the second quarter of 2022, an increase of $5.6 million from the same period in 2021, primarily driven by increased sales of commercial chargers, DC fast chargers, and residential chargers.
Service Revenues, which consist of charging service revenues, network fees, and ride-sharing service revenues, increased 154% to $2.2 million in the second quarter of 2022, up $1.4 million from the second quarter of 2021, primarily driven by greater utilization of chargers, an increased number of chargers on Blink’s portfolio, and revenues associated with the Blink Mobility ride-sharing service program.
Net Loss and Loss Per Share
Net Loss for the second quarter of 2022 was $22.6 million, or $(0.52) per share, compared to a Net Loss of $13.5 million, or $(0.32) per share, in the second quarter of 2021.
Adjusted EBITDA (2) and Adjusted EPS (3)
Adjusted EBITDA for the second quarter of 2022 was a loss of $15.6 million compared to an Adjusted EBITDA loss of $8.1 million in the prior year period.
Adjusted EPS for the second quarter of 2022 was a loss of $0.41 compared to an Adjusted EPS loss of $0.31 in the prior year period.
Cash and cash equivalents
As of June 30, 2022, Cash and Cash Equivalents totaled $85.1 million.
(2) Adjusted EBITDA (defined as earnings (loss) before interest income (expense), provision for income taxes, depreciation and amortization, and stock-based compensation) 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.
(3) 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 and amortization expense of intangible assets. See “Non-GAAP Financial Measures” for a reconciliation of GAAP to Non-GAAP financial measures included at the end of this release.
Acquisition of SemaConnect
During the second quarter Blink acquired EV charging leader SemaConnect, further strengthening its competitive positioning in the industry by adding complete vertical integration of supply-chain, engineering, and in-house manufacturing capabilities of more than 10,000 EV chargers today and scaling to 50,000 per year. With the addition of U.S.-based, in-house manufacturing, Blink is now in compliance with the Biden Administration’s Buy America Initiatives, and eligible to capitalize on the $7.5 billion EV infrastructure bill, which among other efforts, has the stated goal of building out the first-ever national network of 500,000 electric vehicle chargers along America’s highways and in communities. The acquisition will also position Blink to assist the Administration’s development of a national EV charging network that provides interoperability among different charging companies, and is user-friendly, reliable, and accessible to all Americans.
Commenting on the acquisition, Mr. Farkas stated, “This is a transformative acquisition for our Company and for the broader EV charging industry. SemaConnect is a well-respected EV charging company with a proven track record of success, strong relationships with its site host partners in both the public and private sectors, and best-in-class technical capabilities. Further, SemaConnect brings an extensive product line which complements Blink’s considerable software product offerings. We are particularly excited about SemaConnect’s DCFC charger currently under development, as we believe this offering will significantly accelerate our ability to get DCFC to market while drastically reducing our R&D costs. We’re excited to welcome members of the SemaConnect team to the Blink family and Mahi Reddy to Blink’s board, as we believe together we can continue to revolutionize the EV charging industry,” Mr. Farkas concluded.
- The Company announced its continued deployment of Blink EV chargers for electric school bus fleets, noting that it has already sold or deployed nearly 400 Level 2 chargers at educational facilities in 14 states. With the recent passage of the Infrastructure Investment and Jobs Act (IIJA), the Biden Administration committed $5 billion to the production of environmentally cleaner school buses, likely increasing the number of electric school buses on the road, leading to greater demand for EV charging equipment.
- Blink announced the deployment of five Blink IQ 200 dual port fast Level 2 EV chargers at three locations in the Township of Winslow, New Jersey.
- Blink was selected as an official vendor for electric vehicle charging stations as part of the Florida Sheriff’s Association Cooperative Purchasing Program (CPP). In addition to creating opportunities with thousands of state and local agencies, municipalities and educational organizations in the state of Florida, Blink believes its participation in this program may serve as a template to engage with other statewide cooperative purchasing programs.
- Subsequent to the close of the quarter, Blink was awarded a cooperative purchasing agreement for EV charging equipment and network services from the Illinois Region 1 Planning Council, fo the expansion of electric vehicle charging at public agencies and commercial businesses across northern Illinois.
- In April 2022, Blink acquired UK electric vehicle infrastructure leader EB Charging, adding more than 1,150 chargers to the Blink Charging footprint. Following the acquisition, EB Charging announced an agreement with Q-Park to deploy nearly 600 charging points across 80 sites in the UK and Ireland.
Earnings Conference Call
Blink Charging will host a conference call and webcast to discuss second quarter 2022 results today, August 8,2022 at 4:30 PM, Eastern Time.
To access the live webcast, log onto the Blink Charging website at blinkcharging.com, and click on the News/Events section of the Investor Relations page. Investors may also access the webcast via the following link:
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: 399113.
A replay of the teleconference will be available until September 7, 2022 and may be accessed by dialing (877) 481-4010. International callers may dial (919) 882-2331. Callers should use conference ID: 46227.
About Blink Charging
Blink Charging Co. (Nasdaq: BLNK, BLNKW), a leader in electric vehicle (EV) charging equipment, has deployed over 51,000 charging ports across 19 countries, many of which are networked EV charging stations, enabling EV drivers to easily charge at any of Blink’s charging locations worldwide. Blink’s principal line of products and services includes the Blink EV charging network (“Blink Network”), EV charging equipment, EV charging services, and the products and services of recent acquisitions, including SemaConnect, Blue Corner and BlueLA. The Blink Network uses proprietary, cloud-based software that operates, maintains, and tracks the EV charging stations connected to the network and the associated charging data. With global EV purchases forecasted to rise to 10 million vehicles by 2025 from approximately 2 million in 2019, Blink has established key strategic partnerships for rolling out adoption across numerous location types, including parking facilities, multifamily residences and condos, workplace locations, health care/medical facilities, schools and universities, airports, auto dealers, hotels, mixed-use municipal locations, parks and recreation areas, religious institutions, restaurants, retailers, stadiums, supermarkets, and transportation hubs. For more information, please visit https://blinkcharging.com/.
This press release contains forward-looking statements as defined within Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements, and terms such as “anticipate,” “expect,” “intend,” “may,” “will,” “should” or other comparable terms, involve risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. Those statements include statements regarding the intent, belief or current expectations of Blink Charging and members of its management, as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, including those described in Blink Charging’s Q2 2022 Form 10-Q and other periodic reports filed with the SEC, and that actual results may differ materially from those contemplated by such forward-looking statements. Except as required by federal securities law, Blink Charging undertakes no obligation to update or revise forward-looking statements to reflect changed conditions.