Blink Charging Co.

ladies and gentlemen thank you for your patience this conference will begin shortly once again thank you for your patience and this conference will begin shortly Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Ladies and gentlemen, once again, thank you for your patience, and this conference will begin shortly. Thank you for your patience, and we will begin shortly. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Greetings and welcome to the Blink Charging Company fourth quarter and year end 2022 earnings call. At this time, all participants are in the listen only mode and the question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. I will now turn the conference over to your host, Satali Stelia, Vice President of Investor Relations. Sir, please go ahead.

Thank you, Ali. Welcome to Blink's fourth quarter 2022 earnings call. On the call today, we have Michael Tarkas, Founder 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. The most significant factors that could cause actual results to differ are included on page two of the fourth quarter 2022 earnings deck. Unless otherwise noted, all comparisons are year-over-year. Regarding the investor relations calendar, Blink Charging will participate in the Roth MKM investor conference on the 14th of March and the JPMorgan Energy Conference on the 21st of June in New York City. Please follow our announcements for additional investor events in the future. 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. Before I dive into our record financial results for the year, I would like to reflect on 2022, which was a transformational year for the EV industry and even more so for Blink. Industry-wise, we store record year for electric vehicle sales globally, and this trend is only poised to accelerate based on consumer preferences and strong governmental incentives. Electric vehicles are becoming more commonplace on our roads and highways, as global EV sales grew by 68% year over year, with EVs achieving around 10% market share for the very first time. And the vast majority of consumers who try an EV never go back to an internal combustion engine vehicle again. In fact, many OEMs are going electric with their mainstream offerings and making them more affordable in order to achieve scale, which will ultimately lead to price parity with their internal combustion engine offerings. Just think of the impact this will have on societies and the environment in the next 10 to 15 years. Mobility is being revolutionized in a way that has only happened once before. when people went from horses and carriages to self-propelled vehicles. This shift to electric vehicles will not only change the needs in terms of how we refuel, but also puts in place the need for new infrastructure required to service and maintain these vehicles as EVs become the dominant means of transportation. As for Blink, 2022 was truly monumental. Not only did we increase our revenue, by almost threefold during 2022 when compared to 2021, we fundamentally changed what Blink represents to the EV charging industry and our position around the world. Slide four shows our capabilities as the only fully vertically integrated charging company in the United States and among only a few vertically integrated charging providers globally. Our ability to design and manufacture our equipment and ownership of our network is a competitive strength, particularly when paired with our flexible business models as shown on slide five. With our variety of ownership models, which range from simple network subscription to host-owned, hybrid or blink-owned and operated, we are intensely focused on consistently delivering excellent products and services with an unparalleled customer experience. Having control over the engineering, design, and manufacturing of our products and software enables us to efficiently scale the business while at the same time delivering superior products and customer service. As a 14 year veteran of the EV charging industry, we have the expertise to identify and meet customer needs and design our best in class hardware and software offerings to exceed customer expectations. In essence, We now control our destiny while leveraging scale and know-how to generate some of the highest gross margins in the industry today. As for our financial results, you can see on slide six that our fourth quarter revenue grew 184% year over year to $22.6 million. And our full year 2022 revenue grew 192% to $61.1 million compared to only $20.9 million last year in 2021. Our growth significantly outpaces the industry. We are second to none, and it is a testament to the strength of our experienced team, our strategy, and our products and service offerings. Our service revenue grew by 213% in Q4 2020. to $5.7 million compared to $1.8 million in Q4 of 21. And importantly, our network fees grew to $2.3 million in Q4 of 22. That is an increase of 827% when compared with the same quarter last year. I repeat, 827% and at very healthy gross margins. Looking at earnings performance adjusted EBITDA loss for the fourth quarter of 2022 was $14.8 million, which is a sequential improvement of $3 million when compared with a quarter three of 2022, which was $17.6 million. Adjusted EPS for the fourth quarter of 2022 was a loss of 41 cents compared to adjusted EPS loss of 47 cents in the third quarter of 2022. Our number of stations contracted, sold, or deployed grew to 66,478 units, an increase of 105%. when compared to the prior year of 2021. Our growth in network fees and charging stations is related in part to our strategic acquisitions of Semiconnect and Electric Blue in 2022, reflecting the strength of adding these complementary businesses to the Blink family. And subsequent to year end on February 9th, we closed an oversubscribed registered public offering of common stock for gross proceeds of approximately $100 million. The newly raised funding will go towards running the business and strategically investing in complementary opportunities. We expect these funds to take us well into 2024. Also in January, we exhibited at CES in Las Vegas, where we unveiled five new charging products for a wide variety of customers here in the U.S. and also for customers in Europe, Latin America, and Southeast Asia. India, for an example, is a market where we expect strong growth in electrification of both two and three wheeled vehicles. And we have a very, very special offering for those compact EVs. 2022 was a year of tremendous progress for Blink. This growth was enabled in large part by the acquisitions we closed in 2021 and 2022, as shown on slide seven. To recap our timeline of recent acquisitions, We acquired Blue Corner in May of 2021, adding over 7,000 charging points and a strong European network. This acquisition really opened a window into the lucrative European market for us. Since completing this acquisition, we have added nearly 5,000 or 70% more charging ports to the existing Blue Corner network. And as a result, The Q4 2022 revenue for Blue Corner grew nearly 50% and is trending very strongly. Adding on to our growth in Europe, in April of 2022, we acquired Electric Blue, we also call it EB, in the fast-growing market of the United Kingdom, adding nearly 1,200 charging ports to our network and a confirmed order book of approximately 16 million pounds. Finally, in June of 2022, we closed on our largest acquisition ever. We acquired SemaConnect, which in addition to a robust charging network and customer base, also brought key design and manufacturing capabilities for Level 2 and DC fast chargers. Positioning Blink to qualify for the Buy American requirements of the NEVI plan. Semiconnect has one of the highest, if not the highest, gross margins in the business, which we intend to institutionalize across the entire Blink organization. Overall, Blink is a combination of many acquisitions since we were founded. By adding complementary businesses gradually and strategically, we have built what I believe to be the most talented team in the industry. second to none, allowing us to leverage our collective knowledge to deliver the best products and business models possible. As you can see on page eight, we have grown to become a truly global business with over 66,000 chargers sold, deployed, or installed in 25 different countries with much, much more to come. However, we are not done here. Slide 9 illustrates that the industry is positioned to see exponential growth as electric vehicles continue to win customers all over the world. Bloomberg predicts that by 2040, we're going to need anywhere between 340 to 490 million chargers globally to meet demand. Today, we're not even close at about 14 million chargers with many, many of them not even viable for where we are today. At best, we believe the runway is just tremendously, tremendously long. Just as the shift to EVs continues to build momentum, just imagine the opportunities that lie ahead for the charging industry and especially for Blink. We are very excited for the future and are working hard to prepare the company to be able to handle this amazing growth. With that, I will pass it on to Brendan Jones, our president.