Blink Charging Co (BLNK) Q1 2025 Earnings Call Highlights: Navigating Revenue Challenges Amidst ...
Total Revenue: $20.8 million in Q1 2025, down from $37.6 million in Q1 2024.
Product Revenue: $8.4 million in Q1 2025, compared to $27.5 million in Q1 2024.
Service Revenue: Increased 29.2% to $10.6 million in Q1 2025 from $8.2 million in Q1 2024.
Gross Profit: $7.4 million, or 35.5% of revenues, compared to $13.4 million, or 35.7% of revenues in Q1 2024.
Operating Expenses: Decreased 7.9% to $28.5 million from $30.9 million in Q1 2024.
Loss Per Share: $0.20 in Q1 2025, compared to a loss of $0.17 in Q1 2024.
Adjusted Loss Per Share: $0.18 in Q1 2025, compared to $0.13 in Q1 2024.
Adjusted EBITDA: Loss of $15.5 million in Q1 2025, compared to a loss of $10.2 million in Q1 2024.
Cash and Equivalents: $42 million as of March 31, 2025, compared to $55 million as of December 31, 2024.
Company-Owned Chargers: 7,091 units, a 22% increase year over year.
Charging Service Revenue Growth: Increased 35% year over year.
Electricity Delivered: 50 gigawatt hours, a 66% increase year over year.
Operating Cash Burn Reduction: Reduced by 45% in the quarter.
Warning! GuruFocus has detected 6 Warning Signs with BLNK.
Release Date: May 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Charging service revenue increased by 35% year over year, reaching a new record high.
Operating expenses were reduced by 8%, marking the lowest level in nearly three years.
The Blink networks delivered approximately 50 gigawatt hours of electricity, representing a 66% increase year over year.
The company closed the quarter with a 22% increase in company-owned chargers, totaling 7,091 units.
Blink's international presence is strong, with significant growth in Europe and a new 15-year contract in the UK valued at over GBP500,000.
Product sales declined sharply to $8.4 million from $27.5 million in Q1 2024.
The company reported a loss per share of $0.20, compared to a loss of $0.17 in the prior-year period.
Adjusted EBITDA for the first quarter was a loss of $15.5 million, compared to a loss of $10.2 million in the prior year.
Cash, cash equivalents, and marketable securities decreased to $42 million from $55 million as of December 31, 2024.
The current product portfolio does not sufficiently address the value-oriented segment of the market, impacting performance.
Q: Can you discuss the factors contributing to the improvement in gross margins and whether this trend is expected to continue? A: Michael Battaglia, President and CEO, explained that the first quarter saw a larger mix of Level 2 chargers, which generally helps margins. As they move into Q2, they expect more DC fast chargers, which could impact margins. However, the shift to Blink-built Level 2 units should help maintain margins in the mid-30s range throughout the year.
Q: What considerations are involved in the decision to build versus buy new value-oriented products, and how does this impact time to market? A: Michael Battaglia emphasized the importance of control over product quality and reliability, which is why Blink prefers to assemble chargers themselves. They have expanded production capacity in India and Bowie, Maryland, allowing flexibility in bringing new chargers to market without significant expansion.
Q: How are you managing expenses related to the business spin-off and restructuring efforts? A: Michael Rama, CFO, noted that share-based compensation has been consistent, and they are integrating acquisitions to achieve savings. Michael Battaglia added that they are taking actions to reduce costs, such as renegotiating software contracts and consolidating facilities, to responsibly manage expenses.
Q: What is the aspirational target for service margins, and how do you plan to achieve it? A: Michael Battaglia stated that the aspirational target for service margins is in the mid-20s. While product development costs are modest, the focus is on growing the top line and improving sales, particularly with the new Head of Sales driving initiatives like the Create Energy collaboration.
Q: Can you elaborate on the strategy for capitalizing on market consolidation? A: Michael Battaglia mentioned that they are considering tuck-in acquisitions that can help Blink grow faster. They have specific companies in mind and are exploring opportunities that align with their strategic goals.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
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