Blink Drops Over 5% on Larger-than-Expected Quarterly Loss

Shares of Blink Charging Co. (NASDAQ: BLNK) dipped 5.1% in the extended trading session on Thursday after the provider of electric vehicle (EV) charging equipment and services posted a wider-than-expected loss for the fourth quarter of 2021. Meanwhile, revenues beat analysts’ expectations.

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Results in Detail

Blink reported a net loss of $0.45 per share against the Street’s loss estimate of $0.39 per share. The company recorded a loss of $0.12 per share in the same quarter last year.

Total revenues of $7.95 million jumped 224% year-over-year and surpassed the consensus estimate of $5.43 million. Results were driven by the expansion of charging station infrastructure and brand development internationally.

Remarkably, service revenues grew 471% to $1.8 million, while product sales surged 214% to $5.7 million. Increased usage of chargers, along with revenues associated with the Blue Corner acquisition and the Blink Mobility ride-sharing service program acted as tailwinds.

In the quarter, 3,733 charging stations were contracted or sold, reflecting a rise of 253% from the prior-year quarter.

Adjusted EBITDA was a loss of $9.1 million, compared to the loss of $7.1 million in the prior-year period.

For 2021, Blink reported a net loss of $1.32 per share, compared with the loss of $0.59 per share recorded in 2020. Total revenues stood at $20.9 million, up 236%.

As of December 31, 2021, cash and marketable securities came in at $174.8 million.

CEO’s Comments

Looking forward, the CEO of Blink, Michael D. Farkas, said, “As we move through 2022, we are excited about the opportunities we’re seeing to bring our industry-leading charging technology to a broader audience, both in the U.S. and internationally. With more than a decade of proven success in the EV charging industry, we look forward to growing our leadership role in the development of robust and consistent EV charging infrastructure.”

Analyst Recommendations

The stock has picked up a rating from one analyst in the past three months. Needham analyst Vikram Bagri reiterated a Buy rating and a price target of $29 (15.4% upside potential) on the stock. Shares of Blink have lost 39.3% in value over the past year.

Risk Analysis

According to the new TipRanks Risk Factors tool, Blink stock is at risk mainly from three factors: Finance and Corporate, Tech and Innovation, and Production, which contribute 13, 4, and 4 risks, respectively, to the total 27 risks identified for the stock.

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