VLTA - Earnings call transcript Q1 2022

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Operator

Good morning. My name is Rocco and I will be your conference operator today. At this time, I would like to welcome everyone to Volta, Inc.'s First Quarter 2022 Earnings Conference Call and Webcast. All participants’ lines have been placed in a listen-only mode to prevent any background noise. After the speaker’s remarks, there will be a question-and-answer session [Operator Instructions]. is conference this note, being recorded. Please you. Thank will Volta's, Head turn call the Bailon, Katherine to over of I now Investor Relations. Katherine, please go ahead.

Katherine Bailon

initiatives. Volta based thank Officer; Officer; discuss and investors.voltacharging.com which to of these differ the from including results of to to the undertakes of Revenue actual will call of financial Bennett, Francois and the and during expected Chief be to and as note, subsequent Investors and These and and expectations. to conference With statements date. today, subject a future Financial web are and any only to cause Operations. forward-looking like information publicly these and Drew uncertainties forward-looking being statements company's from could me to assumptions, Vice as upon relied release morning, variety and Chief you would this events. risks obligation And or of not accessed us CEO or Please results views forward-looking the Brandt joining revise related new sector any expectations is expectations reflect views statements are Good no remind on that financial be on light Network growth broadcast as call revision President, of over statements, materially in Interim to These today's statements This are our and current be uncertainties. of company investment should risks our making management representative subject our on statements Executive outlook Chadwick, Volta's guidance, Volta results. quarter the that, regarding section on can first conference Hastings, call is We for today's call, website you for at

on annual of including financial and filings most please XXXX. recent the that further April on our SEC, with For XX-K the its affect filed the Form results, other XX, to material report risks factors could important refer company's discussion

which addition they of These as to, company during results. today's in isolation the in GAAP addition, measures useful In non-GAAP or are call, be performance. believe non-GAAP for, measures, measures considered from, should and not as financial substitute a supplemental will discuss Volta's

the call Brandt. You Volta's website. I additional press With measures section discussed the webcast Relations website. of and also on call available SEC, regarding company's which the morning will of Volta The non-GAAP is this filings will issued posted this disclosures will that, be on the financial with find in on each today's release its of the over to turn Charging call Investor the

Brandt Hastings

and thank Katherine, you today. Thanks, us joining everyone for

additional new infrastructure. Let's be and buyers in retail charging demands articulate public faster rate The a value advertisers propositions multiple EV before. convenient get properties top expanded results. public half audiences say I before of geographies Volta's In landed that a to daily contracts retail the apart with for locations and increasing incremental model real QX charge drivers, the and advertisers routines this an progress consumers, at can XX to which for car and The to signed up in foot revenue business growing deals make locations tier vehicle. XX%, The goals deal of partnerships immediate executing the Six key site of growing properties, is on-the-go and remain are We global continued adoption XX% to media day to occurring across integrate for than enhancing lot remainder XXXX, the decision. second Volta importantly, properties stalls achieving resonate. drivers on year-over-year. commercial charging most turning growth, seamlessly properties And one. next quarter, in most five sets made commercial reach in count, strategy expanded to accelerate in possible. advertisers. laser-focused We marketplace seconds of electric clearly heavy half their model. I Volta continues in a with charging charging into our reinforce new convenient We Commercial year new We We we integrated continuing can our it. traffic, where their their value four stall and a connected target others More company and with locations Flags with see value. a than partner and they will stalls. from against is ever our purchasing car EV moment and solution industries. and the progress. our XX%, take combination media want relationship revenue on an expansion our revenue, total installed these made sites commercial with hitting, total better right value provides strategic that offers stations against of delivers influence can

in geographies omnichannel We year expanding the partnership also Volta strategy. at as nine stations for will outlets charging announced United and nationally, regionally marketing and States, locally reach part in our of our throughout network additionally that Tanger markets unlocking install will media others. Tanger we its leverage two new

with Walgreens fast shared, in as we XXX previously We this expansion our the over install to installs to quarters. throughout charge also deal the United coming landmark grow at States. X,XXX And Walgreens expect then closed partnership DC

amplify services, the automotive, the expanding team campaigns West more. Zoom, Bowl advertising Nissan added effectively streams. T-Mobile consumer and media ability and Disney like national media and revenue of Bank the their telecom, of advantage platform PepsiCo, consumer alone, our while continues running high-value campaigns ran Showtime, and including quarter and entertainment the In market across showcase existing perception reach with And to accelerate sales media to Bank their Pulsar and Our and through our investments partners new media goods, we for and initiatives advertising Sephora, the in of verticals, West new growth, to incremental influence across this Volta took Super financial to HSBC among by our across others. packaged retail, network. partnered sustainability

a our builds going with call. works business year, talk about this is to that sector, consistent later As more on the reminder, all throughout Francois and how media the

and infrastructure On continue decisions. front, more government developers, utilities, analytics PredictEV and real data it business municipalities mobility, artificial the to stakeholders, And intelligence local retailers, critical demographic, analyze sets. secure analytics data including uses agencies, empowers planning estate data-driven EV to we proprietary site-specific software through This make socioeconomic, and business our to product.

with to deploy equitably PredictEV plan infrastructure boost example, state worked electric QX, For efficiently the and we intelligently, used the across in Alabama, impact charging to of of state. economic the which to vehicle

our a hold to for up recognized finalist us the and Fast and to Directors continue like Company's governing public a cannot We perspective, PredictEV person I the across our document company of as That change close areas: Awards. Act planning in World segments, infrastructure to would roles and Chief From Jobs separating they infrastructure funds. Board same the like and investment both this of a Chair Changing software positions. that And Ideas was I'm of deals is, two set Officer highlight well Board. share adopted First, to proud Executive

A which share. interest founders, have the share in per the have for through votes Class shares, had agreements one each common per any founders common with XX Class vote exchanged Second, which company's shares, they B

the had As XX-K, founders they relating set number ability detail to shares, a would B forth the including of to beneficial the in stock. together had more their all some in the of our Class Form have company's ownership, XX% of control assumptions power into converted voting interest

all for elements influence drivers’ it Volta talked call, result the integrates I Volta believe charging working that in necessary thank I revenue on execution generate ability EV for of traffic dedication their the to I today, voting message compete an and first Volta, properties. the seconds mobility. commercial infrastructure the into the for allow hard which less at rapidly. value I the delivers on consumers, advertisers early in still routine, and Volta We laser-focused agreement, a tomorrow. of our opportunity to Since significant to four one, decisions, growing this driver we power. want as high-value electric of to is to into foot goals we EV and is they purchasing have day and seamlessly shareholder joined space. win I've and hard and world-class the has strategic consumer earlier market together, builds in EV before The daily As work and translates them Volta team the innings, We're mentioned than this the on about they make mission. value. control XX%

our our against service Volta ultimate that, With us. of in is including lot is it on We doing, Still installations four breakdown XXXX, a executing focus and which everything electric progress. I'll have ahead of player a our our about mobility, changes. we're goals Bennett a pass pipeline as of laser to for in cementing leading of and Drew goal, our in incredibly work I'm optimistic

Drew Bennett

new to Then The required think that discussing of will sign partners technical contractual our or We decided partners. in of site under address of before there's has enough Brandt. set three Thanks, Volta comprised that with or funnel to are any about existing the of we're invest resources is our part off on parties the pipeline that sites and the top evaluation. can project both and of serious variables the agree a stages. major funnel We site technical a project. feasibility

in are are year. opened permitting to Finally, that deployment sites there's pipeline, within through average, the move category signed clear this projects one and On construction. and

stalls During technical In section Volta available we alone qualify quarter, projects more sites. XXX pipeline. over an have activity. service potential the example the whose can the now to of projects. represent is specific portfolios work signed three are We Volta agreements, worth first top-of-funnel the master of the into three begin X,XXX which first partners XXX This and us, quarter, added to new evaluation

We big ever signing. able with the had to a is more first portfolios, agreement so sites, we quarter, in quarter site at large layouts. is that pay which these Volta feasibility, are Also MSAs signature design investment focus is and now milestone, a always off. works to likely forward be highest move partner, both and on Executing we us our stall for our runs the why in power with technical for determining design the site. If visiting will that

for final be closed to pipeline, So X,XXX signed of pipeline, at the deployment and quarter section our stalls we deployed. ready the the

Our XXX midpoint stalls guidance that Thus, XXXX count we QX, guidance. about year, on stalls. to of to installed to quarters X,XXX stalls. In This three remains the we install year is this in no ramp throughout stall doubt a the it. of the remaining incremental X,XXX have at X,XXX meet significant

quarterly a XXX QX, slide, of pipeline development network and QX XXX in the on the in cadence in remaining forecasted ramp this QX. see You'll XXX

Our capacity engineering to ability scale down our to and we vendors. scale will come construction our how this can quickly year

and We vendors, scale. pump methodology, and more to national so them onboard up out us installation volume have continue equipment local, with and been on at regional they can our that training

worth stalls end are X,XXX will think be deploy have by that half those of of at this to least year. We the projects We able of signed. we

Now, I want to pass it over Francois. to

Francois Chadwick

to a like our Volta I'd to take Drew. mix review moment money. Thanks,

We buckets. four have revenue

screens, of integral and primary media XX% the sell works this on our called in XXXX XX% charging advertising This behavior space our our previously stalls. way of first bucket bucket our an we media. was The quarter which Our is revenue revenue at is part in XX-inch of digital are commerce. and

terms, it time’s Let you outline price. simplest in unit its me for

in season. but a an We media first of as world, can We we fundamental are places highly in Volta's go-to-market visible, the screens X,XXX on the is The to stores, EV are stations the sell this like In malls, associated movie call other amount those the of by the media intentionally the network of stall, that into screens, national where charging how people electric format drivers’ impressions. which and by grocery by many vehicles to our the walking many partner of screens. of This see of theaters quarter, front determined and large the offers. placed so see how pass not and at on screens proposition, viable company these many impressions media have the have is end people screens. no stations unique the

Each networks determined a a our near shows high traffic, means are choose stalls impressions screen. retail length, sites screens any choosing The have support traffic to can specific second media sell similar currently. visitor time charging sites we within located to parking high adding stores that is those apps. activity. our third-party to of to auditor called then calculated by enabled We eight count impression the the Geopath, we within which venues with of of an entrances site by available Nielsen, feet stall we out or installs foot few with given are is industry. at is XX Generally, network but also amount per our and our long second available This

XX run wide or that jurisdiction The CPM, sell site partner a for otherwise. range. as unless our which ads price mile a a thousand. Think those stands Our we $XX of between to $XX per hours day cost per impressions Mondays

Our the the derived volume advertising stalls also of known on designated as independent CPM and from is pricing area, very marketing and demand. DMA

rates. higher While competitive on go markets at

the dynamic delivery on based is inventory available. Our

utilization called the is our charging many the with lines sell-through. media Another that electrons, wanted measures share use which advertising thing utilization is stations receive we It not largely at we look we still from orientated charge do an length how to for. different people business to that

Our been improving the mid-XXs network. media our utilization in the current our media entire across sell-through, over of last from the has levels mid-teens to year levels

to is established is sell-through higher. media offer ways. three in sold one markets of The customers even advertising Our certain in we

force, direct which national managers Firstly, sales via brand to the bucket. Direct largest Voltas is

Secondly, message just of they shopping self-service USA; Ahold call-to-action, is by and of media are brand media to When where the of by a impressions the a for be the intending described measured of the paid in the establishment a the a to to channels, third-party by and with marketing be subset to arm funnel to on, reseller price viewer. a target us example, could down action tends to of ask build a specific seen dollar day, Delhaize, by finally, PPOP, rises. time a scale our the funnel the called then a the channel Buyers awareness, buyer of of of and specificity a purchased. the campaign and be through programmatic. called our could through network, all is success top The price where of the day retail the proximity subset demographic, activity way for that year, so impressions what

media broad span a always of case. economy, but the Our this customers the of segment wasn't sectors

EV like to other the any telecom, verticals Volta advertising created is Volta as our whether stores, much this group, consumer Before CPG that pause to products. and COVID, the network essential expand unique largest media world OEMs into entertainment spending services, event the businesses inroads critical segment our mainly diversification in footprint such and other This automobile for within packaged stores making why locations, participants. more. This shopping the better to fact Volta retail, placed grocery should economic drug of downturn than with begin the financial and from as segment. a goods, led market Brandt to was additional continue reach which Today, mentioned, we advertising

our Now I is light about business money, our most business would understand important feel further I shed further media upside the on outlay. Volta that business dynamic That no is way I makes to with what have like outlined capital to has model? the the how

another we CPM. way, if we we two first our ability invest two, no screening we more biggest levers levers capital time The two, one, may higher the and have CPM sell-through. at advertising; Said one, higher are: pull and it for a higher and sell to more of more may even or, two to the were sell

demonstrate ad of achieve to to view. in CPM marketplace efficacy the position unique the higher our the affect we We of expect actions the as

see from to of concept on we CPMs And the at our higher. a or average higher have XX% to time, we that sell-through number is and our depending over expect second expect move increase the studies DMA. the to underway We mid-XXs maturity, approximately

the it it. the already network. want key think -- planned In about the point leverage of media to capital, of scale to I is I are the additional addition Scale just Volta capital is key does further any leverage leverage, have how but with first capital without all require outlay, outlined, additional here we in play discussion items, and which at

For Media sufficient current we that list a mark important. for coverage includes exposure portions buyers forma customer, level in this X,XXX should such Volta's scale customer DMA. improved are price and pro would marquee achieving is, demonstrated brands. know, national think by as marketing milestone for leverage, would screens, screens We imagine screens, drive To offer nature geographic our XXXX, we the XX,XXX looking improved At milestone a credible, media our as participate the that its of to dollars perhaps household advertising we network is most business to major a example. address you But Volta are Volta of summarize, scale XX,XXX will me let enable not and and another do today. media model available sell-through. and us for in

customers. In XX quarters. media multiple media advertising of five five customers XX quarter, Volta's just has by The bought with their grew the all customers quarters, top XX top far first XXXX, have those average in due average over Volta's revenue screens spend revenue the $X,XXX. solid expect was a achieve media thus stalls, customers discussed. levels of the across $XX,XXX generally of per would just to business is quarters. screen stall leverage triple purchased XX% our $XX,XXX media just have we last demonstrated $XX,XXX items a At have six Seven media repeat per we per of top the digits. In and five three Volta from as media current increase was screen, stall to scale, revenue per For our per under two which our or mature

electricity But were perplexing. XXXX revenues to Charging given called on revenue company, charge X% strike are Historically, also might on the some charging. we our of let for we moving only what And charging revenue delivered for stream, going have is is next this increased light total revenues. lever driver Now, on. demand, revenue you is Please of the electricity for for electricity delivered a to me note, shed charged vehicle. their the fourth our revenue. not

network Historically, not AC we walk charge. chargers, for you charge it. was charging me our did and through Let only

drivers rollout this of to milestones expects launched, the now Once XXXX, charging are the to July, mechanism our with beta test the AC rollout and charging be driver. We Volta cost delivered include the XXXX charging and journey at gradual, authentication the starting timeframe. begin now Fast stage into at initially performing electricity of of a electricity, delivered August rollout our and then DC authentication for minimum the charger. to for will stores and of at retrofitting charging stores payments. Key payment of for in we

revenue dynamic. more fast item. level determined margin revenues $XX,XXX based be percentage. for a line stalls this $X,XXX should more pricing a stalls the a strategy year to contribution. a material see our out be revenues expect to in back field an specifics initial of charges, point would XXXX envision mix also the the round to X% will on revenues from driven credit functionality be we to pricing we expect yield upside charging from XXXX the So can for improvements consisted the to LCFS LCFS XXXX. the as contribution the modest At higher to the of we all margin item exact stations. and standpoint, an charging gross of XXXX, line DC back And and share while that with product in a low situations likely electricity structured significant as driver. of We was per further increasing unveil and and credits from in is also line, $X,XXX the delivery then unveil will $XX,XXX dispensing DC We driver sold, starting almost to the From current Level half per positive it earned XXXX, we charging be by The have we in of in to X meaningful that scale, expect entirely to to electricity will of we second numbers deploy half we meaningful to

are an $X,XXX a of Volta maturity, annual credit per available. where revenue estimates and LCFS for DC state credits LCSF $X,XXX AC stall in Our

and in its Our next was revenue earned revenue bucket overall a our revenue site competitors utility of such of of Software-as-a-Service of our development to out stream revenue behalf. fourth we This This In business margin very Network Intelligence. gross just charging the an for and and activities, This which revenues from but electrical installation nature infrastructure of product, infrastructure call XXXX, model. is the indirect is network us Network stations service of Brandt as to similar our who PredictEV is also who site construct and market. subscription contract The is X% network revenue. margin is install XXXX, it design, importance their for forecasted total revenues support customers. XX% profile development be with its our state product charging final attractive. trenching offering, recurring on partners, described revenue. our a has permitting, sold as to to highest were is and Development This in earlier, total revenue

revenues a first follows: financials, quite pronounced. percentage QX, move quarter as touch of our QX, QX, QX, In XX%. full and saw year of revenue Before the on to I XX%; XXXX, seasonality XX%; like seasonality. the would we into specifics is I Overall, as XX%;

being the occurs and sees Monday, fourth breakdown be cohort The Halloween, which and in an Black and the to [ph] we DC XX%, from the the Hanneke average XX%, and This business, total quarter, Cyber four of to advertising is fall driver Channel which is comparable advertising revenues have XX%, approximately Outdoor, the as A each pattern primary Friday, seasonality ones. Clear XX%, revenue Christmas industry. of seasonality the seasonal and displayed expect our of XXXX the our XX%. our we in XXXX, revenue discussed Thanksgiving, majority of media For most Facebook as others current revenue of respectively. XX% XX% in holidays primarily of XX% stack quarters,

is factor in and tend to most have use-or-lose budgeting second is a customers calendar called what conclude cycles The budget quarter, system. that the fourth

the months calendar process the New of approval through the still being the formulated marketing budgets quarter, Year. during and first For are going early

first revenue back have half and think In than into to materials for third AC we half analysis the greater model. We our XXXX bill our sensitivity This to a well certain Volta, media respect expect discussed addition be quarter to how as revenue way to business future of in network these $XX,XXX we second the pipeline, cost quarter. build, half patterns approximately factors discuss pattern suggests that installation. in mature as greater development development with as we also network including the quarterly would fourth to for shape like about the Voltas earlier. also than stalls would the we state

Our watt. DC fast stalls cost about double

paid model to per higher achieve stalls an Our to $X,XXX be DC expectation or the credit of the approximately and DC by $XX,XXX media-enabled per stalls current to and a forecasted higher drivers states a $X,XXX expect Volta Again, per to the per could year. idle even DC LCFS But AC at that for charging types to fees. per electricity network. Further on we our also generate $XX,XXX that maturity, we for stations dispensing And monetization charging throughout revenue for to revenue this, we stalls AC that ought we modeled as this, approximately for $XX,XXX deploy in stalls stations $X,XXX so. do our at AC stores we the DC currently $X,XXX approximately modeled stalls. stalls network lastly, based and

for mature on we Volta a levels our streams achieved model at what expect we such of be gross in reflected the similar and margin like, profiles companies looks revenue Lastly, for businesses. mature ultimately to as consider each by

turning our to financial QX results. Now

commerce, $X.X revenue to we For behavior formerly called $X.X top QX year-over-year from We revenue XXX was XX% year-over-year QX an up for the base X,XXX, of QX. at media That in which XX% delivered Volta and to and Installed up year-over-year an new million. quarter, in with the were of a our growing XX stores million. outlook quarter sites, range the ended XXX quarter. XX% half stalls installed adding the is revenue, grew with first record. incremental sites

signed first quarter XXX representing For stalls the signed in we the and quarter, with X,XXX sites, stores. our construction exited X,XXX sites X,XXX We pipeline.

a have signings, stores. of Within DC and solid mix these both AC we

new Bank quarter, brands of fourth Disney, West advertising Aetna Zoom, and media platform for T-Mobile for campaigns Showtime, and Volta’s the During Sephora. included the additional PepsiCo, and

products this gross to margin, our negative should negative are incurred compared the the development headcount later be revenue gross Our be install related for first are compensation, The were public advance competitors understood SG&A XXXX. for in compensation $XX.X to stock-based excluding costs. with $XX.X installation million, also quarter be milestones and margin is margin recorded. quarter due network that costs station such a million million product prior with market in of charging that We to excluding for can recognition to business, as that have to EV aligned the We anticipate cost. our million hardware. sell as and expenses, percentage $XX.X increase excluding gross The stock-based for the first was the than to company compared the SG&A recognized at but QX costs gross is driver increasing X% compared year development of onetime certain in was where period. forecast respect XX% Again, quarter expenses, stock-based it incurred, compensation principally period. costs prior as XX% Including in and to and XX.X% for to network as recognized year-over-year depreciation for year negative and gross revenue margin margin compliance was the due upfront $XX.X clearly our year. milestones full recognized

so the level for balance to first XXXX. are XXXX. compared quarter of first $XX.X with, $XX.X $XX $XX.X Our a year these first million costs, prior not as million XXXX quarter taking we looking The quarterly is of to and the monitor and of to satisfied Adjusted for we million we had actions of quarter are are XX, was the cash million to the marketable closely period. March SG&A loss million them. loss security loss one $XXX reduce $XX.X Net company of as for million loss was in compared EBITDA of

currently and public continue to stated stalls of non-diluted facility parties deployment have is is transaction from of most can view, to Volta multiple point months. lower network. capital at first in of that few stands to structure and at is provide and accelerate a XXX the the the will that way Volta's this our quarter to in discussions comments, a to in prior range million Management and the be completed velocity headcount in strategic million we cost $XXX of of with raising end effective both next confident be people. Volta As accelerate the Volta's $XXX financial capital. believes in the appropriate overall

anticipated XXXX spend million. shares for the quarter our CapEx stations. million Weighted $XXX.XX outstanding is were XXXX install Our $XXX first to to million $XXX average for

$XX from outlook in current and outlook the revenues input and our of for XXXX team, we conditions range for market $XX to million Turning are customers Based to our million. our on reiterating be XXXX. to

connected the of first a seasonality X,XXX As spending the incremental our XXX we be of fourth to previously, lightest the throughout total stalls sites. year, to trends, quarter in is media in sites industry Total XXX the the have the range to to connected incremental X,XXX the the of and range stated calendar revenue tends build strongest. function the of quarter and

revenue second million XX, be XXXX, the ending guiding to $XX for in June we quarter of million. the For range to $XX are

wrap the per we Volta for market. highest revenue up stall very Now, Volta. the about the and reasons I'd remain excited charging delivers in the to like future share

in to electricity for Charging half We the leverage stall the charging further in add directing in utilization. the Q&A. sites, to entrances, would for Volta coming up open Volta charging start enviable operating the the stalls of like those market. revenue also line to questions. demonstrate finally, closest sites second now to per year the best and are best And this within I will is the will store. locations, that, an high-traffic all are I in and putting per ones be our market-leading With position provide

Operator

you. Thank

begin Pavel go today's now Raymond comes session. Please, James. Instructions] question-and-answer And the first question will with from Molchanov We [Operator ahead.

Pavel Molchanov

taking question. for you the Thank

start me level first. maybe high Let

were of deploy plus a context built this infrastructure? pending more Your more in started. incoming against Are you seeing barrel oil Europe curious, war before given initial embargo oil, if I'm site just the Russia? stations $XXX to the partners the And from prospective interest engagement,

Francois Chadwick

landing Pavel, a seeing here. that in the one in We're in very We're is, a the in the larger with seeing Europe. we're -- Europe, And occurring the We're question. of just a potential across incoming locations environment, thanks Germany with states is from France -- macro answer demand. the push together But and from couple the a partners of Europe. and countries. very seeing yes. good lot for short multiple actually coming we I adjacent site that and well policy various that demand other of lot countries demand that. We're already very, Francois in. answer That's are

more So question yes, to demand. short I next of it's answer say hope the so. lot is quarter the your absolute an in actually and able or to be It's And a yes. to

thank So you Pavel.

Pavel Molchanov

Turning how businesses the flow begins for actually take DOE this the X, deadline you the know deployment before cash will developing to their August as Do to think I charging referenced states you charging after August plans. sites? to the long the submit to US, it X,

Francois Chadwick

again, Once Pavel. Yes, Francois.

seeing we folks into in expectation Our when and D.C. latest from are this That's to early the the is we're that XXXX. late XXXX in will meetings into hearing or we're be the talking

Pavel Molchanov

That's then number the between year as a XX%, XX% a and right? check to know. for guidance. finally, of you mentioned just Gross is in Okay. that helpful whole that terms margin to And

Francois Chadwick

That what what model to, we is yes. expecting gross that That we're is to have margin.

Pavel Molchanov

And averaging XX% to negative you're QX, given year, the that correct? be that heavily the implies of XX% for rest that in you'll

Francois Chadwick

the of the market comment we more No, across I was out the along model is lines how think whole the that company. mature

over guidance that Pavel. occur spend as in front project, of the there, stacking mature together to XX% infrastructure is together, there but that's any has still with all our that our the the given XX% look its we've end we a at to project revenues lifetime So of

Pavel Molchanov

Okay.

state? year, a this of that's steady for kind not long-term that's So

Francois Chadwick

steady That yes. state, is a long-term

Pavel Molchanov

any And your be? Okay. gross margin what might

Francois Chadwick

I have yet. given that not

Pavel Molchanov

you Thank Fair enough. much. right. Okay. very All

Francois Chadwick

Thank you, Pavel.

Operator

comes question go with And our Fitzgerald. next Please today from Cantor Andres ahead. Sheppard

Andres Sheppard

might quarter. and then in I'm on receive expecting of submissions of the sense the or will just sweet the that X, congrats from by plans? the you Thank morning, plan terms and are to is regarding wondering, good state follow-up subsequently, Volta you. guys I end wanted can that us just you August maybe a be the funding maybe state confirmed give spot due what the Hey, being plant September. of

Brandt Hastings

funding you you, state the Thank And plans, coming to about talk Yeah. talking you're the IIJA, through about just Andres. when confirm.

Andres Sheppard

Yes. correct. That's

Brandt Hastings

Yeah.

there's well I that billion charging. the So community everybody across $X the table And knows, in that that included to grand a are there's different two is things on split for I as out want things noting, of categories, out funds. that $X.X into that the deployment of point is corridor $X.X billion various sort that's worthwhile billion couple think main then

our we've sort existing at estimate within XX% that look rough were our charging, corridor, one-mile we a of when model within So, corridor. sites corridor our of sales the and done fall XX% of approximately that one-mile of

be model. we're to look sites, model always are that one-mile of that and to not very say, business in the in current to And the not So, sited we is revenue We've is could bucket. additional on where that of that Obviously, day as be to. one from where that not our in model, -- are we're attractive but this to where sites look we good we one going XX% a of the out right points now that on currently That's we corridor. companies proposed this we're are -- is break our said business we of one we legislation. indication going our going add looking the based

this this not like said, that community funds. Let's of forget $X.X billion -- I

model we that egg well-placed our and for situation. once that chicken very, are breaks because very Now, again,

the ability where the to everybody. have the we're we where the So, to the putting put story we're equity sure looking ground those stores and needs of locations that meet those stores making at in in --

and available to the for the a like this, bad and our is tool. This if ROI have we the sure reduced, the media business on use last we software actually us this just tool that the is that is we in thing CapEx of that myself, that our to put is be right store EV not unique stores cost the to that's It's to make the because not And want algorithm. a mention place. very, model the funding attractive actually predict on And -- community very Andres, matches is on us. so that will I that do. the is we what to is a And going an stations. So, be repeating software of internally

that know sell We to sell to it also You we it companies. utility third-parties.

D.C. table. So, to is that this that D.C. that's is getting that the validation in and software different rooms various We're is folks just of conversations in in is works in everybody. and a in with attraction. straight a the up tool -- tool beneficial lot We're We're the

late in into something, Department the Department in repeating of we from answer, to the the definitely the playing funding that through discussions. sits those are there, prior room, we're something Transportation we into To states, as whether cost it at are the as mentioned, into definitely Energy, XXXX. my rolling we -- in, be expect of is States out that the myself, of I it's So, have areas XXXX and the

in went obviously of Volta, very a different but So, which how there, lays a Andres, space now. through exactly lot we, hopefully, exciting space, out things right I expect is to this play that

Andres Sheppard

if missed missed if I sorry of locations. the apologies these about to the expectation you insight And right, give in Walgreens, with this, over know but maybe progressing. to terms appreciate don't how installation you I said does. install of with Yes, had sense XX but numbers, And there. a this, it past, partnership DC again, the I disclosed for months the but expectations. the is XX chargers in I X,XXX us if XXX can my that follow-up, you've

I'm So, where stands? Thank you. just wondering that

Brandt Hastings

Yes.

That the X,XXX double to XX I bit stores, down little the whole -- Mr. let that to the But can with you stores, XX about lifecycle months. XXX still Drew to and so in it where Drew? we stands. a over tell Walgreens are pass I'll So, me Bennett

Drew Bennett

Yeah. Thanks, Francois.

earlier pipeline to So new the we started year. this adding

into year. that, the that this to XX So will XX fall means months of some fast-moving ones

I'm a our far expect I that pipeline. as So see-through seeing as lot

be the first And year. next Walgreens into will the of will projects happening definitely, half I the balance So think year. come first this

it's exciting and and closely a volume Really working we're everything the same of accelerate following like -- really to with that with large to it's kind that comes and time. at yeah, to So then, very approvals the upfront us, else. all everything them diligence drop

And fall we there's balance yeah, dropping the of that, into parties So will between and the then, forward. first agreement potential exciting, projects lot expect to a move is year next definitely will really the be there. this what Obviously, two year.

Andres Sheppard

pass Got you I'll it. on. Thank it and again. congrats much very

Operator

Sachs. ahead. today from Goldman go at Please Delaney And comes question our next Mark

Mark Delaney

for start my much environment. taking morning I on Yes. business. Hi. materials operating the was hoping the on, and Good very all for thank question and and to you details the

industry And and rising those the have to lines. those? of I'm in cost if, if what have costs rising companies Some so, wondering you're along both seen steps pressure operating mitigate seen components. from anything taking

Drew Bennett

are Yeah, of everybody there's question. the pressure to bit up-tick Thanks some slight a the in little for similar the Mark. we Very costs, seeing industry, in there. some of else and

in world-class team. I prior we I a supply chain built this mentioned calls out think,

committed to at we've -- purchases that that sure curve. XXXX that. have we in been And made been There's, that we're got or to look definitely, of into of already make so we've already what got made a lot that already that ahead as have planned to what commitments we

it's impact of do what We're now the doing of hit XXXX, As get to looking to to the we're issues feeling us I can is actually start to of some see plan we that there. is, sort into say, may rest the any industry. to to ahead of similar start What us pressure. and

where for well. making now, costs costs. of we're looking are, I feel committed our construction actually right got as like is right at slight CapEx do we've what obviously, that also And that, do XXXX, account we're I now the takes what but feel heard potentially inflationary all So spend sure -- you've we that any watching looking of

and I gave a an in remarks, installation my the bill for to cost AC DC construction a So the that you is with figures costs prepared in of laid materials. totally costs, fully respect and

as construction not look materials, at we're installation the of watching bill only very well So do we closely.

Mark Delaney

gross Yeah. other clarification the question maybe two-part a and on you That's a gross My was question helpful. for margin on margins. Thank comments color Drew. the

first, depreciation. of I wanted to that's a excluding that, that second XX% XX%. to of And then So the it XX%, target part is clarify, like the sounds XX% to longer-term

about changed to you relative can investor what's maybe the talk SPAC So presentation.

the the target think was prior margin XX% XXXX upper I gross range.

Thanks. so I'm had And before? to XX% trying what's the XX% you is, if to understand XX% delta? the And replacing that target so,

Drew Bennett

Yeah.

that margin question, excludes the XX% yeah, Mark, XX% first your for So to depreciation. gross

time costs cost cost those And you product. at And are, think the our right now current based model future. the time more more investigating model of it now what spent we're how what we've I estimate So right for you've see is spent what see respect giving that's on of We've with service, in we itself. seen what we is out. SPAC model, we what to looking the

figure towards would in lot But market. where that that's where a we're to, true so. a to we feel feel people I this is true -- that a adding place modeling right that we we model now suggest believe more were a we do So mature in we're can figure

Mark Delaney

you. Thank

Operator

Somerville comes Matt go And today ahead. Please Davidson. question from our D.A. next with

Matt Somerville

questions. A of Thanks. couple

labor QX build talk highly, to adds it you handicapped skilled big you throughout And shortages, prepared of you have -- to rounding, from a XXX with how sight of step plus. almost scarcity, from lack to market ads getting And pretty like to stall in cadence a your I'm just in just the characterized stall I XXX guess, it the but seems risk as your actually the highly a or remarks, that thereof, line about First, from number? quadrupling QX referred going. in firm year.

Francois Chadwick

that pass Bennett. Thanks I'm that Yeah. to for over you, going and one Matt, to

Drew Bennett

Sure.

numbers, big indeed, on when growth three a think So standpoint. group. when think in ways. what about infrastructure you deliver to quarter-to-quarter, capacity in from a is growth on we especially and a it But being to especially it delivery We an of about it need moving comes do kind

have execute. the to to you First, deliver to actually have you deliver the opportunity, and need then have then need on capacity and it you it, to on

we're and seeing We've what that quarters spent pipeline, through building you of So couple delivery in numbers; projects just immediately out, really And going. an you the get of front to right of those out team laid last us like we start to start for now there you've have seen us infrastructure kind pipeline, the deployment increasing moving is that our don't the capacity. pipeline. signed our when the have have this opportunities are

the that over quarters. been seems ramping two So last up

like So have that to and now, see the with half we our first start those aligns feel coming. targets we'll results we

variability. a And, permissions kind of have vacuum. can, get have a host, sign also they in course, those tenants our site up don't to on They the lot front you mentioned, play of is a remains thing. And of reasons Executing very So no that ball. small the data in last is that it's permitting us hard utilities for have who exist sometimes of, that and thing execution.

more back. are specific have And happen until So line, I get, push once for things happen. think break ground, closer to could then certainly to going confident up time a right? or something pretty you accelerate things confidence, we're Like along is we there you the opportunities

about we I our So we're pretty this. have and team it's but I really we growth, -- position to good succeed mean difficult, and a about time put feel think but execute there. in any the you confident expectations

Matt Somerville

done some And to you've then wanted if I -- on I charge charge already. for a follow-up, piloting see as believe

you've on I'd they're to observed be respect utilization in to rates what curious pilots. So those as with

then the some And for will, further that did right to XXXX? overall rate interested happening charge to of be of now I be you. in in charge. well? your would that whole pushed get you Did the clear, the stand as for given until not utilization that past. with if up, network the You've want I the just Thank

Francois Chadwick

Matt, thanks for I'll that take this. and

your charge not for I'll you mind. point if pushed back. is with first, being So, start second charge The don't

to live the are still running up this plans latter XXXX. half across our and Our in and have of DC stores

said where to anything no started we a see and as we've in before, August to you're this That that I stand we've start different So, going is very and comfortable feel rollout. July, this. with we've positioned than

stores, we're have into be going going that's As as -- kick XXXX. us to we've heard And may on off. think to roll our you we where start said, always XXXX, and may it DC I about talk this

going work. we're do It to minor. the and that much to As retrofit go and then AC we that's to back -- the stores for doesn't our stores. AC relate very to XXXX, when cost And that retrofit do is at all actually that

eventually, we all of of then all start we're stores XXXX, to So of a as our to across our see install through going roll full sites.

capability. Our charge charge whole have network will for

about I charge that into. there stability looking is we we're this And But charging. is -- to not utilization to And what utilization. charge to the utilization, turn for said, what utilization that of is also released roll but driver to charging won't we the of talked mature the or for a being to we them the when not lead out. that something delta that in and We the does sort a any the there measure of experience being one -- One about on are for the -- what we right to some way relates is not that on actually across at from the we've in make we've on, the where and it market experience. or What one mentioned are look I And tell As different in this we're utilization on answers not utilization that mid-teens get the just out we're we're across a mature that call media, the testing able just to doing and the testing. And critical form, whether the sort we XX% turned utilization of then that and remarks, get range want is some looking media. focused make it Matt. of charge, sorry, what market, in the changes. first slight important in thing sure in and able driver -- take utilization something A/B people such sell-through, have both we we look rates, where like information sell-through on that right not. the sites to that is we model and right the for on -- going you is utilization. to very charge be the that as That's for That's doing understand I point have the can areas going now. rates, any we we're up carefully -- of the change changes of That charge charging is very that mid-XX may do them that charge. is as turned your figures --we've But to modeled the on prepared actually on are as charge that driver we've can get some the experience A/B we're around is various the as for my we at we're the question your is shape Hopefully, way, while there, question now. we

Matt Somerville

Thank you, Brandt.

Operator

Tuohy next Craig Brothers. today ahead. comes from go Please question Shere our And with

Craig Shere

Good morning. incredible the for detail today. Thanks

on a lot? back cost but net still question versus for So, the first charge it margin, peers the to will that be the end users of a be positive parking the charging. guidance discounted the most is gross rate The in will

Brandt Hastings

It's one helps model that's thanks in important different for that And this question. one us. actually various that I question. ways, Volta think to but business that a is differentiated a key actually very is Craig,

mind, to very there. these, allow the front of cinema the of back other you do as I'd to all it charging naturally things the network. we lot. on in sports the be pricing As the competitors -- that prepared that whether in we go that may put the turning down that we across the we we for But or of some But close revenue have remarks, ability per gave parking actually to one not have the the the of or just of does the we these we're the to of having sort mentioned per our one the locations of pricing stall charge that differential very that. the our is also the have door to mature the sites have in stores who That screen. remember to better of all only entrance where media In us market a of can and look we differentiated close it's benefit say drivers peers attractive stadiums, for the for at on whole actually expect the to makes from we're the

the use we store. that the utilization. driver value and our the had just again, price stores, And use your a where sort be maximizing like that we'll go once going can price we most bring per differentiated question. we're And I've is tie pricing certain me total to And it's interested to back it tool The there, that what we can the we conversations to right value yes, lowest and of the that price? back in can Well, model it's its got aspects And the lever utilization. have you've be for total always that experience. prior to to have is Craig, pricing. to let for lastly So is, a that question feel differentiated the right do of you just attractive

position very, -- feel and very are And total in good use. very pricing very, the a so we overall for and we utilization

Craig Shere

that, there? revenue, incorporating guidance your expectations And Thanks. pricing in for are the as as what And the total anything EV? are assumptions charging far LCFS of you included

Brandt Hastings

Yes.

the right of, to to XXX been the credit, at part as the in answer for our credits. the yes. range for the We're softening looking there's very is, peers of those now. our all when we're is and in XXX saying, competitors, So peers market sort that, which And with a similar modeling current latter to definitely whatever market

Craig Shere

Okay.

industries the upside Other I there. So assume modeling would in high there's comfortable XXXs. are

at doubt And So potential. least some machine opportunities? credit that alternate -- has about I sorry, I'm alternate

Brandt Hastings

Yes.

there's the yes, to price we're -- accordingly to look So as try and credits. that can. upside, Craig, and yes, just can. best get any well, And we exploring And always all bundle other the we potential best get credits and we we the

repeat, us of whether only business the such have the have opportunity per credit, chase team as at that's want a time, a it that that that's of grants, look focused store items, capability be us. whether we strong I those same still whether make to model and We on for and strong, and to sure it's actually could it's all just these revenue anything we incentives, available And those stall. incentives gives we our meet enable maximize our that to capacity us model also out business after to revenue credits to

Craig Shere

you. Thank Great.

Brandt Hastings

Craig. you, Thank

Operator

gentlemen, our question-and-answer final to like session. back conference over to management this concludes for and Ladies the remarks. I'd turn

Brandt Hastings

we with support drive we as progress look I'd their to their success, you Thank And shareholders commitment. to for Volta’s your today. all and of thanking our forward our contributions providing all. for I'd on time also much, future our for updates like operator. you their And to close thank to for forward. Thanks so our like customers all employees

Operator

today's Thank concludes gentlemen, and conference. this you. Ladies

wonderful disconnect your You a have may lines. we now And day.

Volta (VLTA) 17 May 222022 Q1 Earnings call transcript