Blink (BLNK) announced record revenue results for Q3 2021 and its stock rallied over the passage of the Biden Administration infrastructure bill, with an estimated $7.5 billion earmarked for EV infrastructure.
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The company manufactures, sells, installs, and services EV charging stations. Blink is on the path of rapid expansion in the U.S. and globally; the company provides a critical support business for EVs and transportation infrastructure.
Blink’s stock price is up 151% over the past year and I am bullish on the company. (See Analysts’ Top Stocks on TipRanks)
Q3 Results
Blink reported $6.4 million in revenues, which amounts to a 607% increase year-over-year, and a 47% increase compared to last quarter. Revenue breaks down into $4.83 million in Product sales and $1.39 million in Service revenue (up 425%). The revenue numbers represent a record in amount and growth for the company. Gross profit from the revenues was $892,000.
The company contracted, sold, or deployed 28,291 chargers during Q3. Thirty-seven percent of its revenue come from international sources. Blink reported operating expenses of $16.72 million, and operated at a net loss of $15.32 million. The company’s operating costs have increased because of acquisitions and its European strategy.
Blink reported $25 million in proceeds from government grants and rebate programs.
Q3 Synergies and Forward Growth
There has been an increase in demand for charging stations worldwide and the company plans to take advantage of it. During Q3, Blink had new deployments in Arizona, Florida, Massachusetts, Maryland, North Carolina, Texas, Virginia, and D.C.
Through its recent acquisition of Blue Corner, Blink is set for growth in Belgium. The subsidiary signed a four-year sales contract and 10-year service agreement with KU Lueven to set up 500 charging stations across Belgium on KU Lueven academic and research campuses.
Blink has increased its network of property partners and has made multi-year agreements for supplying new charging stations. The company has set up partnerships for reselling its used charging stations.
It plans a new product launch of improved charging stations in 2022 and will continue to expand the footprint of its stations across the U.S. The company, through its supply agreements, is focusing on supplying charging stations to hotels, shopping centers, business complexes, academic centers, and residential centers.
Blink is positioned to benefit from the passage of the federal infrastructure bill, which included $7.5 billion for EV infrastructure and for an EV charging network. It is expected that half of the vehicles sold in 2030 will be zero-emissions, and it is estimated that there will be 500,000 EV charging stations throughout the U.S. The current number stands at around 100,000.
The number of charging stations in the world is expected to reach 120 million, according to Blink’s Q3 2021 investor presentation.
Investment Thesis
Blink’s stock price has been on a bull run for over a year with little downtrend. The stock is up 153% over the last 12 months and 35% over the last six months.
It hit an all-time high of $64.50 last January and stayed in the $40 to $45 price channel until July, when it dropped to the $30 to $35 price channel.
The high demand for charging stations and the current EV trend will continue to provide Blink with growth opportunities.
Wall Street’s Take
According to Wall Street, Blink has a Moderate Buy consensus rating, based on four Buys and two Holds assigned in the past three months. The average price target for Blink is $41.83, which implies 2.1% downside potential.
Conclusion
Blink reported record revenue results for Q3, and is positioned for continued revenue growth. The company acts as a critical support business for EV infrastructure, and is positioned to benefit from the recent infrastructure bill.
Blink has expanded its operations to Europe with new developments in Belgium. The company has made additional supply agreements in the U.S. and has set up resale networks for its used charging stations.
Disclosure: At the time of publication, Alan Sumler was long on Blink Charging.
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