Blink Charging Co. (BLNK) delivered a disappointing performance in its third-quarter financial results, causing its stock to plummet over 8% in premarket trading on Friday. The company missed analyst expectations for revenue and revised its fiscal 2024 outlook downwards.
Blink Charging’s third-quarter revenue came in at $25.19 million, a significant 41.9% drop compared to the same period last year and falling short of analysts’ estimates of $35.50 million. This shortfall can be attributed to a decrease in product revenue, which reached $13.45 million, a sharp decline from $35.06 million in the previous year’s quarter. However, service revenue saw a positive uptick, increasing 30% year-over-year to $8.75 million. This growth was primarily driven by the expansion of Blink Charging’s global network of owned chargers and the resulting increase in demand for charging and networked services.
Despite the revenue miss, Blink Charging managed to beat analyst estimates for adjusted earnings per share, reporting a loss of 16 cents compared to the expected loss of 17 cents. The company’s gross margin also improved, expanding by 700 basis points to 36%, largely due to a shift in the sales mix.
Looking ahead, Blink Charging revised its full-year 2024 revenue guidance to a range of $125 million to $135 million, down from its previous forecast of $145 million to $155 million. This revised outlook is considerably lower than the $146.16 million consensus estimate. The company now anticipates achieving positive adjusted EBITDA in the second half of 2025, pushing back its timeline for profitability from its initial goal of 2025.
Blink Charging’s recent struggles are highlighted by several key developments. In September, the company announced plans to cut around 14% of its global workforce to reduce operational expenses. Additionally, in August, Brendan Jones, the company’s President and CEO, revealed his intention to retire on January 31, 2025, with Michael (Mike) Battaglia set to assume the role starting February 1, 2025.
The market reacted strongly to the disappointing news, with BLNK stock plummeting 37% year-to-date. In premarket trading on Friday, the stock was down 7.96% at $1.84.
While Blink Charging faces challenges, the company remains optimistic about its long-term prospects. The global electric vehicle charging market is expected to experience significant growth in the coming years, driven by the increasing adoption of electric vehicles. However, Blink Charging will need to overcome its current obstacles and regain investor confidence to capitalize on this growth potential.
