Blink Charging Co.

Good afternoon and welcome to Blink Charging's third quarter 2022 earnings conference call. All participants are in listen-only mode. 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 Vitaly Stilyev, Vice President of Investor Relations. Please go ahead.

Thank you, Kelly. And welcome, everyone, to Blink's third quarter 2022 earnings call. On this call today, we have Michael DeFarkas, 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 US GAAP measures in the appendix of our earnings deck. You may find the deck along with the rest of our earnings materials and other important content on Blink's investor relations website. Today's discussions may also include forward-looking statements about our expectations. Actual results may differ from those stated And the most significant factors that could cause actual results to differ are included on page two of the third quarter earnings deck. Unless otherwise noted, all comparisons are year over year. Now, regarding the investor relations calendar, Blink will be hosting investors at the upcoming Consumer Electronics Show, CES, between the 5th of January and the 8th of January of 2023 in Las Vegas. In addition, Blink Management will be participating in the annual Needham Growth Conference in January of 2023. I will now turn the call over to Michael D. Farkas, founder and CEO of Blink Charging. Go ahead, Michael.

Good afternoon, everyone. Thank you for joining us. As you can see, we delivered an extremely strong third quarter of 2022, highlighted by record revenue of $17.2 million. an increase of 169% over the third quarter of 2021. During the third quarter, our product sales grew by 177%, an increase of $10.8 million compared to Q3 of 2021. Service revenue grew by 123%. Within service revenue, Blink's network fees grew by over 600%. I repeat, over 600%. And this is our recurring revenue model with very, very strong gross margins. Our record third quarter results are reflective of our strong fundamentals driven by organic and strategic opportunities. And the third quarter we contracted sold or deployed 7,834 commercial and residential chargers. an increase of 160% compared to the same quarter of last year. Most of our competitors don't even have that many units on their entire network, let alone deployed last queue. Our success in part is rooted in our ability to fulfill customer orders relatively quickly. Our goal is to establish Blink as a reliable provider of choice, able to comply with our customers' tight deadlines even a world still impacted by supply chain issues. To that end, in Q3, we strategically substantially increased the investment in our inventory levels to ensure that we had the components, equipment, and products on hand to meet current and future customer and market demand. Subsequent to the end of the quarter, we had two major announcements. On October 11th, we announced our all new Blink network and Blink charging mobile apps, completely redesigned from the ground up. It's there to power our next generation best in class EV charging experience. More on that later. And on October 18th, in conjunction with the Secretary of Labor's visit to Blink headquarters, we announced our current plans to increase Blink's U.S. manufacturing capabilities to up to 100,000 chargers per year. Trust for the U.S. We are very excited about these announcements as these are important building blocks in our future success here in the United States and globally. Turning to slide five, Blink has sold, deployed, or installed nearly 59,000 chargers since the inception of the company. We have over 440,000 active users on Blink's networks. a number that has been consistently growing. Blink today has global manufacturing capabilities in the US, India, and Taiwan. And most importantly, our advanced hardware and our networks are compatible with the standards adopted by the majority of countries around the globe. A recent study from McKinsey published in April of this year shows that the United States alone could have 48 million EVs on the road by 2030. And globally, Bloomberg New Energy Finance recently pointed to the need for between 340 million and 490 million chargers by 2040. Remember, the entire global market today has a few million viable chargers deployed at best, and almost 500 million units are estimated to be needed. We view this as a massive growth trend in the marketplace and a tremendous opportunity for Blink. Turn to slide six, please. At Blink, we are dedicated to providing the best in EV charging, and we're proud of the new, completely redesigned Blink network and Blink charging mobile apps. Our state-of-the-art infrastructure, tech stack, and user-centric approach allowed us to create a technology platform that can be augmented quickly and efficiently without disrupting our customers. The mobile apps put EV drivers in control by giving them improved search capabilities for nearby amenities and chargers by zip code, city, business, category, or address, and it seamlessly integrates EV charging into everyday life. Drivers can save favorite charger locations and manage payment information as well as view payment history and real-time charging status. I encourage everyone on this call to experience the new Blink charging apps and network for yourselves, and that's by downloading it at the iOS App Store or the Google Android App Store. On slide seven, when it comes to host benefits, the entire experience has been redesigned with ease of use in mind. The new cloud-based Blink network allows site hosts to manage their EV charging business in multiple languages that include English, French, Greek, Hebrew, and Spanish across 25 countries, with additional languages to be added. Site hosts will also have expanded functionality in creating dynamic pricing protocols responsive to various use cases, locations, and schedules. Our new infrastructure will allow for the faster integration of our recent acquisitions, which we will outline in our next slide. Our legacy businesses currently operate on four separate networks. In the near future, all of our chargers globally will operate on one network. Four networks consolidated to one should translate into major savings and technological innovations. Turning to slide eight. A recap of our recent acquisitions. In June of 2022, we completed the acquisition of Semiconnect, significantly expanding our charging networks in the United States. This provides vertical integration and manufacturing capabilities in the US and globally and allows Blink to comply with Buy American mandates. In April of 2022, we acquired the UK-based Electric Blue, giving us access to the UK and Ireland's fast-growing markets and adding nearly 1,200 chargers to our global footprint. So overall, as you can see, In Q3, we continue to position Blink for significant current and future growth. Our equipment, our new and updated networks and apps will serve as the foundations to launch new services and functionality in the future. With that, I'll turn the call over to Brendan Jones, President of Blink, to discuss some of our recent developments.