Blink Charging: First-Quarter Results Energize Its Bulls

May 12, 2022 10:32 PM ETBlink Charging Co. (BLNK)5 Comments4 Likes
Leo Imasuen profile picture
Leo Imasuen
4.93K Followers

Summary

  • Blink just reported fiscal 2022 first quarter results that brought in a more than 3x increase in revenues.
  • The company continues to expand its international charger footprint with the acquisition of UK-based EB Charging.
  • Blink's management is confident that they can take advantage of the global opportunities posed by the electrification of transport.
Blink EV Charger at Moorpark Railway Station

Laser1987/iStock Editorial via Getty Images

Blink Charging (NASDAQ:BLNK) rallied after reporting its fiscal 2022 first-quarter results which saw revenue come in at a more than 3x increase from the comparable year-ago period as demand for its charging stations continued to grow. The company delivered an incredibly strong start to the year with revenue hitting a new record and with its management executing on their $23.4 million acquisition of EB Charging, a leading provider of EV charging and sustainable energy solutions in the UK. This drastically expands Blink's European presence and sets the company up for an additional 1,150 chargers installed or committed to delivery.

With this, Blink is now present in more than 19 countries and will likely enter more as the global pace of electrification increases and as the company moves to globally position its charger footprint to fully take advantage of the shift in transportation set to happen in the years ahead. Blink's management stated that they expect global EV sales to grow at a 24% CAGR from 2021 to 2030 on the back of the number of EVs sold increasing from 3 million in 2020 to about 25 million in 2030. Fundamentally, this expected increase in the number of EVs will necessitate EV charging solutions which Blink expects to be over 120 million chargers globally by 2030.

Revenue Growth Starts The Year Strong

Blink reported its earnings report after market close on Monday. It was a strong quarter with revenue coming in at $9.8 million, a 340% increase from the comparable year-ago quarter and a huge $3 million beat on consensus estimates. This came on the back of a 99% increase in charging stations contracted or sold during the quarter to 3,174 versus the comparable year-ago quarter.

Blink was also awarded a total of $3 million from numerous government grant and rebate programs as the legislative context continues to encourage broader uptake of zero emission transport. This is important as federal, state and local governments begin to distribute money from the $7.5 billion allocated by the Biden administration for nationwide EV charging infrastructure.

Blink's total count of chargers now contracted, sold, or deployed hit a record during the quarter at 36,337, continuing the upward trend that has accelerated in recent quarters. This will continue to ramp more rapidly in future quarters as Blink integrates recent bolt-on acquisitions and executes on new ones to expand its global charger footprint to favourable markets.

US and International charger mix

Blink Charging

The bulk of the company's chargers still reside stateside. But Blink is now in over 19 markets including Belgium, UK, Greece and nine countries in Latin America. Whilst geographic expansion presents some risks in terms of an overextension to relatively unprofitable nascent EV markets without the level of government support for EV purchases as the US, the US is itself still in a relatively nascent stage. Blink is clearly moving to grab as much land as possible as the market matures in the years ahead.

The company is not profitable, generating negative net income of $15.1 million during the quarter, an increase from a loss of $7.4 million in the comparable year-ago period. But with cash and equivalents at $162 million as at the end of the quarter, the company ended with ample liquidity to sustain its losses for a few years. Whilst this is unpalatable in today's market where growth stocks have become toxic, it's unrealistic to expect a company in such early stages to be pushing out cash flows with its industry still in land-grab mode.

Blink Charging Is Riding The Wave Of Electrification

Against what continues to be a terrible year for growth stocks, Blink Charging continues to maintain its strong pace of revenue growth. This is a great thing for its investors looking ahead to the future. Yes, the company is not profitable, yes it's still burning cash. These are both very important factors in today's market where fear has taken over entirely and stocks realize double digits collapses every single day for weeks.

The future of transport is electric. This is an inevitable fact mainly driven by a myriad of factors that have come into place over the last decade and beyond. The most important of which being a critical need to mitigate our environmental impact on the planet. Indeed the current energy crisis while having a short-term salvo of boosting core inflation and weighing down on a stock market that once flew amongst the stars will also have a medium to longer-term impact of influencing consumers both residential and commercial to switch to electric alternatives.

I expect Blink Charging to continue to see a rapid increase in its revenue growth, matching the expectations of current long-term shareholders. The first-quarter results were strong, and expect this momentum to continue as Blink rides the waves of global electrification.

This article was written by

Leo Imasuen profile picture
4.93K Followers
The equity market is an incredibly powerful mechanism as daily fluctuations in price get aggregated to incredible wealth creation or destruction over the long term. These two polarising forces lay at the core of my stock coverage. The aim is to avoid wealth destruction and embrace wealth creation. Not an easy feat, but one achieved from my radical obsession with achieving superior financial returns and built on my background in finance, accounting, and economics.
Follow

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.