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Oct 12, 2023

Revenues Build For Charge Enterprises As Its EV Charger Business Grows

Charge Enterprises Inc. reported rising revenues and narrowed losses for the

Charge Enterprises Inc. reported rising revenues and narrowed losses for the first quarter of 2023.

The ink on Charge Enterprise Inc.'s bottom line isn't yet black but looking at the company's first quarter results, its founder and CEO Andrew Fox has every confidence it won't be long until they won't be read in red.

Andrew Fox, founder and CEO, Charge Enterprises Inc.

"I think we're demonstrating that we're executing to plan," Fox said in an interview. "We have phenomenal partners that thankfully believe in the long term mission of what we're doing."

What Charge is doing is building electric vehicle recharging and telecommunications infrastructures while also providing telecommunications messaging connectivity.

It's a difficult and expensive proposition but based on its latest financial results the four-year old company is closing in on becoming profitable, with chief financial officer Leah Schweller stating in a release she expects Charge to deliver a before tax profit by the first quarter of 2024.

During the first three months of the year Charge lost $9.2 million but that's 8% less than the $10 million it lost during Q1 2022 as revenues climbed.

Indeed, Charge said its revenues increased 19% in the last quarter over Q1 2022 to $193.5 million.

What's driving that income boost for Charge is strong growth is a combination of upward trends in all corners of its business.

"Our infrastructure segment backlog, surpassed $100 million with for the first time ever reporting 20% derived from our EV division," said Fox. "So I think we're starting to see the exponential growth that we expected, and as much like the fourth quarter of last year. We have a very small burn."

The company is also making progress in reaching its goal of providing EV recharging stations at 1,000 dealerships in the U.S. by 2025, which it said, would account for approximately $365 million in potential revenue.

"Through the first quarter we're 15% of the way there and we think that laying out milestones will help give people kind of our earnings potential," said Fox. "I think the milestone that we're looking to achieve is very achievable. We know the first 1,000 is gonna be the hardest. But once we get that critical mass, we think the second third and fourth 1,000 won't be as difficult because we'll have the expertise."

While not permitted to discuss specific automakers or brands, Fox said the company worked with 20 different brands just in the last quarter.

He said his company is simply attempting to satisfy what he called a "mandate" in the private sector to create a substantial EV recharging infrastructure and that mandate in turn, has created the urgency to move fast in doing so.

Never mind a consumer study released by J.D. Power last week indicating a good many aren't yet ready or willing to purchase or even consider an electric vehicle. Fox is certain those results are only a snapshot of a temporary condition.

Instrument panel on 2022 Chevrolet Bolt EUV

"Today with only 20 or 25 vehicles to choose from, that are electric, yeah, you can see that but by the end of the decade when basically, you know, 50% of everything rolling off the assembly lines going to be EV, and then by 2035, where it's almost 100% It's gonna just be like cell phones. 35 years ago, people were like, why do I need a cell phone? Today? You can't live without one." Fox predicted.

With the expected increase in EV sales in mind, Charge is looking beyond auto dealerships to grow its recharging network to fleets and "we did a deal with the Methodist churches. There are 30,000 of them across the country," Fox said.

But over the long haul, by continuing to diversify its business and sticking to its overall plan, Fox is enthusiastically optimistic his young company will be writing its bottom line in black ink before long, declaring, "I'm pretty confident that we'll be able to meet our expectations, and, in most cases because of our focus, I think it's going to make us a stronger player, longtime."