Good day, everyone, and welcome to today's Blink Charging Third Quarter Results Conference Call. [Operator Instructions]. And it is now my pleasure to turn today's call over to John Nesbett of IMS Investor Relations. Please go ahead.

Good afternoon, everyone, and welcome to Blink Charging's Third Quarter 2020 Investor Call. On the call today, we have Michael Farkas, Blink Charging Founder and CEO; Brendan Jones, Chief Operating Officer; and Michael Rama, Chief Financial Officer. I'd like to take a moment to read the safe harbor statement. This conference call contains certain forward-looking statements as defined within Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934 as amended. These forward-looking statements and terms such as anticipate, expect, intend, may, will, should or other comparable terms involve risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. These statements include statements regarding the intent, belief or current expectations of Blink and members of its management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, including those described in Blink's periodic reports filed with the SEC, and that actual results may differ materially from those contemplated by such forward-looking statements. Except as required by federal securities law, Blink undertakes no obligation to update or revise forward-looking statements to reflect changed conditions. I will now turn the call over to Michael Farkas. Please go ahead, Michael.

Good afternoon, everyone. Thank you for joining us for our third quarter investor call. There's been a tremendous amount of momentum in the EV space and solid progress at Blink since we last spoke. In spite of the pandemic, we have made great progress expanding and upgrading our network, adding new partnerships, executing our acquisition strategy and further positioning Blink to grow as a leading provider of charging stations around the world. For the 9 months, we grew 84% to $3.8 million, exceeding last year's total revenue of $2.8 million. Our third quarter revenue was a little bit more than $900,000, in line with the most recently published analyst revenue estimate but below consensus purely due to the other revenue estimate being an outlier. H.C. Wainwright, we know you're still sure about us doing the ATM with Roth. Schwab [ph], please get over and stop already. Before we get into the specifics of the quarter, I want to make sure we keep sight of the big picture. The opportunity in front of Blink is enormous, and few companies are better positioned to capitalize on the anticipated significant growth in demand for EV infrastructure as more drivers make the change to electric vehicles. According to BloombergNEF's Electric Vehicle Outlook 2020, which provides a global outlook for the EV market, passenger EV sales increased from 450,000 in 2015 to 2.1 million in 2019 and are expected to reach over 50 million by 2040. Bloomberg also expects that more than 50% of new car sales will be EVs by 2040. That is a staggering transition of our primary method of transportation, and it will require a very fast rollout of EV infrastructure. Guidehouse Insights is projecting 25% CAGR globally in the number of charging stations now through 2030. And Bloomberg projects that the…

All right. Thank you very much, Michael, and good afternoon, everybody. It's a pleasure to speak with everyone. It continues to be a very, very busy time at Blink as evidenced by many of our recent developments and the announcements. So I'll jump right in and review just a few of the highlights. In August, as Michael mentioned earlier in the call, we launched a program for existing Blink EV charging locations to upgrade their first-generation equipment to Blink's new fast Level 2 charging station, the IQ 200. Our goal in this initiative is to expand and improve the Blink network of equipment. And during the past year, we've upgraded over 884 charging stations to the new 80 amp IQ 200 as part of a strategic initiative to improve infrastructure. As part of this promotional program, we are providing upgraded equipment to existing hosts when they enter into a new multiyear revenue share agreement with Blink. This offering gives our host partners the chance to provide the best equipment in the marketplace. And with the revenue sharing structure, Blink becomes a partner with the owner-operator rather than solely providing hardware. Also in August, we received a follow-on order from InterEnergy for 150 Level 2 and DC fast-charging stations soon to be deployed in the Dominican Republic. This order, valued at over $1 million, will be fulfilled during the fourth quarter and is a follow-on to the company's previously announced $1.2 million purchase order for 200 charging stations with InterEnergy. With these orders, InterEnergy has purchased 350 Blink Level 2 DC fast chargers and residential charging stations. InterEnergy, through its CEPM subsidiary, provides energy solutions to more than 66% of the national tourism sector in the Dominican Republic, and installation locations for Blink charging stations will include hotels, resorts, shopping centers…

Thank you, Brendan, and good afternoon, everyone. Blink had a solid third quarter 2020, particularly in light of the continued economic impact of COVID-19 pandemic. I thought it would be helpful to first remind everyone of our revenue model. As Michael discussed, a unique advantage of the Blink business model is our ability to provide multiple options to our customers. This flexibility is key in our ability to quickly expand our network. We offer 4 business models for EV charging equipment and connectivity to our cloud-based EV charging network, and we work with our property partners to help design a program that fits their needs. The four options are as follows. There's a Blink-owned turnkey option, which is where we own and operate the charging station. It is utilized in high-traffic locations with significant potential for high utilization. In this model, Blink provides the equipment, installation, operations and administration of the EV charger deployment and shares a portion of the charging revenue with the host. Next is the Blink-owned hybrid option, which is another model where we own and operate the charging station. It is our most common business model, and it fits more EV charging locations. The hybrid option allows the location to quickly provide the charging stations to their customers in a cost-efficient manner. Blink covers the cost of equipment, operations and administration, whereas the host location is responsible for the installation. Charging revenue is shared under the hybrid model as well. Third is our -- is the host-owned option, which is for those who want to be the owner and operator of the EV charging stations. The host location is solely responsible for the costs associated with the deployment of the EV charging stations. This includes installation, the cost of equipment, the annual network fees and the…

[Operator Instructions]. And we'll take our first question from [indiscernible].

Michael, I wanted to spend a little bit of time on the Blink owned and operated model. It obviously has some interesting parts to it. I guess a 2-part question as I'm trying to understand how to model this. First, can you provide some color on the current utilization rates? But also very importantly, I'm trying to understand, as you deploy these going forward, how do we think about utilization rates and timing of that? In other words, do they just grow with EV cars on the road? Or how do we think about the growth in there, faster than the industry, slower than the industry, and also how the profitability changes on that as the utilization increases? I assume it has a pretty high contribution margin.

Okay. In regards to utilization, during our last call, we basically stated that we weren't really disclosing utilization rates. Bottom line is if you really look at the EV industry, plug and hybrid EV industry, when you're looking at that space, you're looking literally at low single digits of entire fleet sales if you're looking at passenger vehicles throughout the United States. And our utilization is very similar. It's low single digits. But what we do see is as more cars are available on the road in tandem with the increase in percentage, we are also seeing increase in utilization. And as more and more cars on the road are EVs, it will directly impact utilization.

And as the utilization goes, how does the margin profile look for you? I mean, let's say, you're going from 10% to 50% to 70% utilization, let's say, a single unit somewhere. How do you think about profitability of that particular deployed unit?

Okay. So when you're looking at from a perspective of utilization, one of our charging stations that's a Blink owned, which is something that's a turnkey solution, we pay from A to Z, at a 5% utilization rate, we would make about $20 a month. At about a 10% utilization, it would be considerably higher. The real number that one really wants to look at in trying to figure out what value can be brought as an investor, where do they want to invest their capital, do you want to invest your capital in the EV space, which is what we're doing in the infrastructure side is more of the picks and the shovels than it is for the searching of the gold. I would say the gold searching for is more like finding the right EV producer who's going to score. And historically, if you look at the automotive market -- and that's really where my background is, not that I worked in the auto industry, but my passion my entire life has always been automobiles. And if you study the market, you'd realize that 99% of all auto manufacturers have gone bankrupt. And I'm not joking. It's actually over 99%. What we do is we supply the cars. No matter who makes the car, whether it's GM or Ford or Mercedes or BMW or Rivian or Tesla or BMW, Audi, we don't gamble on who that is. We're going to make sure that wherever that car that's being driven around, no matter who manufactured, we're the one who could supply the fuel. And that's really, if you look at transportation, the money is in the fuel. It's not in the car, and it's not in the gas pump. It's actually the one who supplies the fuel. And that's…

So it's obviously clear, the [indiscernible] strategy for Blink obviously have much better economics. How does that impact the capital need, let's say, and capital deployment with that in terms of the owner-operator strategy there in particular? Is it expensive to deploy these? Are you burning capital? How are you getting them deployed in the field from a financing standpoint?

Okay. So yes, there's obviously an investment that we need to make versus a competitor who sells the hardware. They typically make money off the hardware itself, and then they have a small recurring. We have to invest money in the ground. And while the payback takes a little while, again, remember, listen to the numbers. I told you at 25% utilization, the difference is $27 a month in profit for ChargePoint and we do $793. Now at 50% utilization, which is very, very high, they're at $38 and we're at $1,588. So yes, you have to invest a little bit more money in order to get that kind of return. But there's a big difference also because in our model, we have exclusive rights for very long periods of time to be the sole provider of EV infrastructure in that location. So it's not like you're selling a charging station and the owner of that property puts it in a parking space. When we provide our services, when we invest our money into our property on a partner's locations, we have long-term exclusive contracts to provide their services. And it's not just that spot. It's every single parking space in that location.

I just have one last question. I know it can be a hard one to answer, and then I'll kind of step back. But when you talk with your customers and your partners out there, why are they choosing one strategy versus another? I know it's having the flexibility to pick one model versus the other. But obviously, for you, the more attractive model, being Blink owner operated, how do you pitch this to a customer or partner? And why do they pick one versus another just in kind of a general thought process?

Okay. What we're seeing and the type of customers that we're dealing with, when you look at like the Cushman & Wakefields, when you look at the parking garage operators, when you look at the McDonald's, these are companies that manage properties that belong to another party. So while we may have our desire to go down a certain path and the manager, whether it's a property manager or if it's a garage management company, they may have their own path. Property owners all have their own models on how they operate their business. There are property owners that outsource every single service, whether it's washing machines if they're in multifamily, but they outsource everything. There are others, property owners who handle everything from A to Z no matter what it is. So because we have companies that have vast scale and they represent different types of owners, the reason why we're getting selected by them to work with them is because of our flexibility, because McDonald's has owners, certain ones that want to own the hardware. They have other ones that don't want to take technological risk but they're willing to maybe pay for the installation. You have other ones that have a great location. They don't want to put up a nickel or a penny. They just want to get rent or a revenue share. So because of our flexibility, we're able to handle these companies where our competitors sometimes are unable to because of not having that same type of flexibility.

[Operator Instructions]. It does appear that there are no further questions. I'll turn the call back over to the management team for any closing remarks.

Thank you, everybody, for joining us, and we're looking forward to a very exciting year ahead of us. With, hopefully, with COVID being behind us and more people traveling on the road, it should increase utilization accordingly. And with our new hardware offerings and partnerships, we're very excited about being able to deploy a lot more equipment over the next year and 2. We're looking forward to some very exciting times. Thank you, everyone. We appreciate it.

Thank you. And this does conclude today's program. Thank you for your participation. You may disconnect at any time.