Nuvve Holding Corp. Q3 FY2024 earnings call

• Third quarter 2024 was challenging but saw the payoff of multiple efforts, with expense reduction, margin increase, and topline sales picking up, partly due to the Fresno hub project kickoff.
• Closed a convertible loan with new investors post-quarter end, and David and Gregory provided a bridge loan. School bus business sales picked up but expect revenue to slide in 2025 while working on EPA round 4.
• Recognized revenue from the Fresno EOC commission project, which brings cash and secures 2025 revenue. The Nuvve GIVe software platform connects various resources for grid management and optimization.
• Collaborated with Taipower Corporation, signed a contract with e-Formula, with a breaking ground event likely mid-February after Chinese New Year for a project with 90+ charging stations and stationary storage.
• Joint work with WISE EV-LLC on public infrastructure, multiple sites signed up, TEP applications submitted to NV Energy, and negotiating financing for SPVs.
• Engaged with Capital Global on strategic investments, making progress and hoping to share updates soon. Emphasized Nuvve is not just an EV company, and its platform is key for grid modernization regardless of EV mandates.

In the third quarter of 2024, Nuvve generated total revenues of $1.9 million. This is a $1.1 million quarter-over-quarter increase compared to the second quarter of 2024 ($0.8 million) and a $0.8 million decrease compared to the third quarter of 2023 ($2.7 million). The revenue increase was driven by a $0.9 million increase in service revenues and a $0.2 million increase in hardware revenue. $0.6 million of the service revenues earned this quarter relates to the hub project in Fresno, California. Year-to-date revenues through September 30, 2024 were $3.5 million, a decline of $3.2 million from the prior year period ($6.7 million), impacted by a reduction in charger hardware sales of $2.4 million and non-recurring EV bus sales of $0.9 million. Gross margins improved in the third quarter of 2024 to $1 million compared to $0.3 million in the third quarter of 2023. Year-to-date gross margins through September 30, 2024 were $1.5 million compared to $0.9 million in the same period last year. DC charger gross margins at standard pricing generally range from 15% to 25%, AC charger gross margins are approximately 50%, grid service revenue margins are generally 30%, and software and engineering service margins are as high as 100%.

• Expect Q4 revenue to have some benefits from school bus business progress but revenue to slide into 2025 while working on EPA round 4.
• Anticipate more activity on the Fresno hub opportunity in the next several quarters as the project gets built out.
• Expect improvements in cash burn due to lower operating costs and improved gross margins compared to last year.

• Delays in EPA funding awards negatively impacted hardware sales pace this year.
• Cash operating expenses and cash flow could be a risk as seen in previous periods with cash operating losses and changes in cash balances.
• Project推进 may face uncertainties such as delays in breaking ground events or issues with SPV financing.