Blink Charging Q2 Revenue Hits $33.3 Million Despite Decline in EV Sales

In the second quarter of 2024, Blink Charging Company (BLNK) reported a revenue of $33.3 million, reflecting a modest increase of 1.5% year-over-year. Service revenue, which accounted for 20% of total revenue, experienced a notable growth of 15%, rising to 24% of the company’s overall revenue.

The gross margin for the quarter stood at 32%, closely aligning with the company’s targets. Although there was a temporary dip in electric vehicle (EV) sales, Blink Charging remains optimistic about the industry’s future, highlighting an ongoing demand for charging infrastructure. The company’s strategic partnerships and emphasis on cost management are essential as it aims to achieve a positive adjusted EBITDA by 2025.

Key Takeaways:

• Total revenue for Q2 2024 was $33.3 million, with service revenue making up 20%.
• Gross margin was reported at 32%, consistent with company guidance.
• Blink Charging sold or deployed 4,106 chargers globally, dispersing approximately 33 gigawatts of energy across its networks.
• Despite a slight slowdown in EV sales, the outlook for the EV industry remains positive.
• Significant contracts were secured, including partnerships with a major European retailer and designation as an official provider for New York State.
• The focus includes driving higher-margin software and services revenue and effective cost management.
• The company aims to maintain a gross margin of around 33% and targets a revenue of $145 to $155 million for 2024.
• Cash reserves as of June 30, 2024, were $73.9 million.

Company Outlook:
Blink Charging is optimistic about long-term growth in the EV market and is actively working towards achieving a positive adjusted EBITDA by 2025. It maintains a revenue target between $145 million and $155 million for the full year of 2024, focusing on strategic partnerships and higher-margin software and recurring services revenues.

Challenges:
There has been a slight decrease in EV sales due to political uncertainty and negative public perceptions regarding electric vehicles. Sales of DC fast chargers have also declined compared to the previous year.

Opportunities:
Despite the challenges, the company is confident about future market conditions, noting signs of recovery in EV sales during the second quarter. Strategies emphasize owner-operator investments and growth in the multifamily and fleet sectors, with plans to leverage AI to enhance revenue on charging sites and develop energy management solutions.

Management Commentary:
CEO Brendan Jones highlighted that while the company faced lower product sales, service revenue growth remained strong, showcasing the strength of the business model. The focus is on continuing to adjust for future demand while improving operational efficiencies and maintaining a competitive position in the EV charging landscape.

As part of ongoing efforts, Blink Charging is involved in various strategic initiatives, including potentially spinning off Blink Mobility, which is nearing completion of its S-1 filing. Leadership remains dedicated to cost reduction strategies across all business units to drive significant annual savings while advancing long-term growth.