Nuvve Holding Corp. Q4 FY2024 earnings call

• 2024 has been extremely challenging with revenue down; many in the industry went out of business. School bus business had delays due to EPA approval letters and grant purchase order holds. Hub projects impacted by financing delays.
• Worked on reducing costs: cash and non-cash operating expenses (excluding cost of sales) down 33% in fiscal year 2024 compared to 2023. Working on further reducing cash expenses without impacting operations and opportunities.
• Expanded business: moved into stationary battery business; announced first Battery-as-a-Service model in the US for electric cooperatives; expanding stationary battery business in Japan; selected by New Mexico to deploy electric vehicle and infrastructure, with COO focused on this and new LLC to be formed.

In the fourth quarter of 2024, total revenues were $1.8 million, compared to $1.6 million in the fourth quarter of 2023, with the increase primarily driven by higher charger hardware sales. For the full year 2024, total revenues were $5.3 million, down from $8.3 million in the prior year, mainly due to reduced charger hardware sales and timing of EPA funding awards. Margins on products, services and grant revenues were 15.8% in the fourth quarter of 2024 versus 29% in the year-ago period. Year-to-date margins through December 31, 2024 were 33.1% compared to 16.2% in the prior year. Excluding grant revenues, margins on product and services were 11.4% in the fourth quarter of 2024 versus 24% in the year-ago period. On a full-year basis excluding grant revenues, margins on product and service revenues were 27.5% in 2024 compared to 12.8% in the prior year. DC charger gross margins 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 more activity on the Fresno Hub opportunity in the next several quarters as the project gets built out. - Anticipate improvements in cash burn resulting from lower operating costs and improved gross margin dollars compared to last year.

• Industry challenges with many companies going out of business. - Delays across the board, such as school district EPA approval letter delays and hub project financing delays. - Potential reduction in governmental funding, especially federal subsidies.