What happened
Blink Charging's (BLNK 4.76%) stock raced out of the gate Wednesday morning after the company reported its second-quarter earnings. After spiking more than 17%, though, shares of the electric vehicle (EV) charging equipment and services provider pared some of those gains.
As of 10:40 a.m. ET, Blink shares were higher by 8.1%. Though that's still nearly 40% below where they started 2023.
So what
Blink shares jumped today after the company reported record quarterly revenue of almost $33 million, representing an increase of 186% from last year's second quarter. Management also increased its projection for full-year revenue by $10 million, to $115 million at the midpoint of the given range.
Now what
The results can be read as a bit of a mixed bag. While revenue was a record and the company expects to see more growth than it previously predicted in 2023, the new revenue estimate doesn't imply virtually any sequential growth through the rest of the year at the low end of the new range. Even at the high end, it would be a major slowdown in its growth rate.
On the more positive side, gross profit margin jumped to 37% of revenue in the second quarter compared to 17% in second quarter of 2022. That was also a meaningful sequential increase from a 21% margin in the first quarter. Blink management hopes to be operating at a breakeven run rate by the end of 2024 as measured by adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA).
Even if management is right about that, the stock could still have headwinds if the company needs to raise more capital in the future. The company had about $75 million in cash and equivalents as of June 30. That was down from $103 million at the end of the first quarter, and the company may need more at that rate of spending before the end of 2024.
