Blink Charging’s Q3 Results Spark Concerns
Revenue Slumps, Outlook Revised Downward
Blink Charging Co. (NASDAQ:BLNK) released its third-quarter financial results on Thursday, sending its stock tumbling 8% in premarket trading on Friday. The company’s revenue fell short of analyst expectations, leading to a downward revision of its fiscal 2024 outlook.
Disappointing Q3 Earnings
Blink Charging reported revenue of $25.19 million, a 41.9% year-over-year decline, missing analyst consensus estimates of $35.50 million. While the company reported an adjusted loss of 16 cents per share, beating analyst expectations, product revenue took a significant hit, dropping to $13.45 million from $35.06 million in the prior year’s quarter.
Silver Lining: Service Revenue Growth
One bright spot in the report was the 30% year-over-year increase in service revenue, driven by the expansion of Blink’s global network of owned chargers and the corresponding demand for charging and networked services.
Charger Deployment Milestone
The company has surpassed 105,000 chargers contracted, deployed, and sold globally since its inception, with 6,978 charging stations contracted, deployed, or sold in the quarter alone.
Gross Margin Expansion
Blink Charging’s gross margin expanded by 700 basis points to 36%, primarily due to a shift in the sales mix.
Cash Reserves Depleted
The company ended the quarter with $64.6 million in cash and equivalents, a significant decrease from $121.7 million on December 31, 2023.
Revised Outlook
Blink Charging lowered its full-year 2024 revenue guidance to $125 million-$135 million, down from its previous estimate of $145 million-$155 million. The company expects to achieve positive adjusted EBITDA in the second half of 2025.
Leadership Changes and Restructuring
In recent months, Blink Charging has undergone significant changes, including the announcement of President & CEO Brendan Jones’ retirement, effective January 31, 2025, and the planned reduction of its global workforce by around 14% to lower operational expenses.
Stock Performance
Blink Charging’s stock has plummeted 37% year-to-date, with shares currently trading at $1.84 premarket.
Leave a Reply