Blink Charging Co.

Good afternoon and welcome to Blink Charging's second quarter 2022 earnings conference call. All participants are in listen-only mode and there will be an opportunity for analysts to ask questions at the end of today's presentation. If you should need assistance during the conference, please press star zero on your touchtone phone. Please note this conference is being recorded. A replay of this call will be available on the investor relations page of the company's website. At this time, I'd like to turn the presentation over to Vitali Stelia, Vice President of Investor Relations.

Thank you, Ali. Welcome to Blink's second quarter 2022 earnings call. On the call today, we have Michael Farkas, Chairman and Chief Executive Officer, Brendan Jones, President, and Michael Rama, Chief Financial Officer. Today's discussions will include non-GAAP references. These are reconciled to the most comparable U.S. GAAP measures in the appendix of our earnings deck. You can find the deck along with the rest of our earnings materials and other important content on Blink's investor relations website. Please note, today's discussions may also include forward-looking statements about our expectations. Actual results may differ from those stated. The most significant factors that could cause actual results to differ are included on page two of the second quarter earnings deck. Unless otherwise noted, all comparisons are year-over-year. And now, regarding our communications calendar, we have two upcoming engagements. On August 10th, Michael Farkas, Blanco and founder, will present at the J.P. Morgan Auto Conference in New York. And on September 7th, Blink will participate in the Barclays CEO Energy Power Conference, also in New York City. And now I will turn the call over to Michael Farkas, founder and CEO of Blink Charging. Go ahead, Michael.

Good afternoon, everyone. Thank you for joining us. We delivered a very strong second quarter of 2022, highlighted by record revenue of $11.5 million, an increase of over 664% over the second quarter of 2021. It is very important to note here that from an organic growth perspective, excluding 2022 acquisitions, our second quarter revenue doubled on a year-over-year basis, which proves that we have a solid strategy and robust growth on both our owner-operator side, and the ancillary sales models. During the second quarter, our product sales grew by 170%, service revenue grew by 155%, and recurring network fees grew by nearly 350%. Our record second quarter results are reflective of our strong fundamentals, as these results do not, and I repeat, do not yet fully reflect the integration of our recent acquisitions of Sema Connect and EB Charging. In fact, our second quarter results include only half of a month of Sema's financials since this transaction closed on June 15th. Going forward, the recent acquisitions will only accelerate our momentum in sales, network expansion, and product development. In the quarter, we contracted, sold or deployed 5,630 commercial and residential chargers. An increase of 73 per same quarter last year. During the same period, Blink was awarded an additional 2 million from various 32 million dollars since the beginning of 2021. In addition, we are extremely encouraged by yesterday's passage of the Inflation Reduction Act in the Senate. We believe that the Act's provisions for consumer incentives for both new and used electric vehicles, conversion of government fleets to EVs, and its favorable tax and cap tax implications will contribute to a faster transition to electric transportation, resulting in higher demand for EV charging infrastructure. This aligns well with Blink's strategy and our future growth plans. On slide five is the most important highlight of this quarter, which is Blink's acquisition of Sema Connect. The combination of Blink and Sema creates a powerhouse of the charging industry, getting over 12,800 active chargers and 151,000 registered users to Blink's portfolio of chargers. And as importantly, this acquisition provides Blink with vertically integrated manufacturing capabilities in the US, which instantly qualifies Blink for the Buy America mandate within the Biden administration's seven and a half billion dollar EV charging investment plan. Sema's large portfolio of technology and intellectual property includes level three DC fast chargers, which significantly accelerates Blink's go-to-market strategy in the fast charging DC space. And financially, SEMA has one of the highest, if not the highest, margin profiles in the industry with a strong recurring sales and cash flow model and multiple revenue streams. We are very pleased with this acquisition and look forward to continuing the integration of SEMA into the Blink family. Mahi Reddy, founder and chief executive officer of Semiconnect, joined the Blink board of directors recently, a great addition, which will positively impact the integration process. On page six, you can see that Semiconnect acquisition was preceded by two other very important transactions. In April of 2022, we closed the EV charging acquisition in the UK. giving us access to the UK and Ireland markets and adding nearly 1,200 chargers to Blink's global footprint. As a part of that transaction, they acquired a confirmed order book of about $16 million, which is being fulfilled as we speak. Prior to that, in May 2021, we acquired Blue Corner in continental Europe, establishing an initial presence there with plans to grow significantly in the fast-growing European market. This includes countries such as Belgium, Netherlands, France, among many others. Our strategy is paying off, as demonstrated by the recently announced agreements with QPARC to deploy nearly 600 chargers across 80 sites in the UK and Ireland. QPARC is one of the three largest providers of parking facilities in western europe so we're extremely excited about this new partnership blink strategic and organic growth has contributed to our fast global expansion as you can see on slide seven our network is already established on three continents and key markets within each and we're looking to spend further from here we think that there is significant opportunity ahead for blink because of our equipment our new and updated soon to be revealed software and our network are compatible with the charging infrastructure in most places on the globe. Combined with strong projected growth rates and EV penetration and EV infrastructure needs, we think Blink is very well positioned for substantial organic and strategic growth. In fact, a recent study from McKinsey, published in April of this year, argues that the United States alone could have 48 million EVs on the road by 2030. 48 million. And globally, Bloomberg New Energy Finance recently pointed to the need of between 340 million to 450 million chargers by 2040. I'm going to repeat that. 340 million to 490 million chargers. It's massive. And interestingly, when you think about it, only 3% of those are projected to be superchargers. Blink is positioned to take advantage of this incredible growth environment due to our strong value proposition. As you can see on page eight, we believe Blink has the most advanced technology in the market right now with strong intellectual property and vertical integration capabilities globally. We offer multiple business models to our customers for them to choose how they want to deploy their capital. Anywhere from full ownership to no capital requirement and minimal involvement. And we have an extremely large footprint that we believe will only keep growing at a very, very accelerated pace. Nine, another thing that I'm tremendously excited about is Blink's new global framework empowered by our recent acquisitions, which we believe is a game changer in the EV charging industry. Besides having manufacturing capabilities in the US, India, and Taiwan, Our international network and portfolio of equipment is unparalleled today. Anywhere from New York to Brussels, Tel Aviv, London, even to Guam, you can use the same network and branded chargers in six languages, 19 currencies across 21 countries. And we're only getting started. We have a lot of other countries and many more features to follow. In essence, Whether we own and operate or sell the hardware, Blink strives to deliver best-in-class products and services globally. This is what enables a faster transition to EVs and what helps our customers and site hosts to make the switch to EVs and to Blink. With that, I'll turn the call over to Brendan Jones, President of Blink, to discuss some of our recent developments.