Blink Charging Co.

Company Overview

Blink Charging Co. (NASDAQ: BLNK) is headquartered in Florida with offices in Arizona and California, and was originally founded as Car Charging Group, Inc. in 2009. The company is a leader in nationwide electric vehicle (EV) charging equipment & networked EV charging services. Revenues are generated from customers and/or Property Partners who use equipment connected to its network. The company adopts a flexible business model encompassing Blink-owned and host-owned to meet the needs of property partners and EV drivers. As of June 30 2020, the company had a total of 15,151 EV charging stations deployed throughout the US, of which 5,385 were commercial EV charging stations (additional 305 units on other networks), 1,193 residential, 8,166 non-networked residential, and 102 DC charging. The company has direct access to growing registered member base of 180,000+ through commercial, municipal, and retail partners.

Our Insight

The Opportunities

Blink operates in the fast growing EV charging market, the backbone infrastructure for adoption of EVs. Early mover coupled with end-to-end EV charging solutions provides the company with a competitive advantage over other players that focus on either selling hardware or support drivers with an EV charging network. The advantage is that Blink’s ownership of the equipment can enable them to take advantage of the significant increase in utilization of the equipment as more EVs are in operation versus a one-time equipment sale. Recent partnerships with Envoy Technologies, Cushman & Wakefield, SemaConnect, will not only expand its network but also bring in affordability/connectivity.

The Obstacles

Slower demand due to COVID is the near term obstacle for Blink that could impact its revenues. The company continues to report losses and gross margins fell significantly in 2019 due to higher product costs. Continued losses and high cash burn have left the company with only $1.5M in cash at Q1’20 from $4.0M in 2019 and $15.0M in 2018, which necessitated additional capital raising of $4.0M in Q2 2020 and $13.8M subsequent to Q2 2020 mainly through share issuances, which results in dilution for existing shareholders. Low entry barriers and intense competition could result in pricing pressures and loss of market share to larger and new players. However, the company’s strong prospects amid the rapid adoption of EVs should drive higher-margin services revenues that would offset lower product sales and/or higher product prices.