By Mr. Marin
Recent rebranding as mPower communicates focus on charging stations/consumer engagement
mPhase-Technologies XDSL is developing an electric vehicle (EV) charging network and consumer engagement platform under the mPower EV+ brand. The company’s ecosystem combines electric vehicle charging with consumer engagement tools that are expected to extend the reach of each charging station location, with the aim of driving additional in-store traffic for retail customers and promote a growing range of products and services.
XDSL expects to generate several different revenue streams from EV charging station operators, retailers and consumers. Management believes its platform contains the broadest software content of any electric vehicle charging company currently providing services and believes this will provide a key competitive advantage.
XDSL builds on a strong existing revenue base; the company has an existing annual revenue of approximately $32 million. Revenues from new growth initiatives are expected to come into production beginning in fiscal 2023. As the company introduces new services, technologies and products, XDSL expects consolidated revenues to transition to a combination of higher margins. elevated over time.
The platform will allow retailers to offer push advertising and drive in-store traffic and allow travelers to personalize their travel experience. The initial phase of the EV+ rollout will focus primarily on electric vehicle charging and consumer engagement. The company also has a number of other potential revenue streams under development.
Importantly, in 2021, global electric vehicle sales appear to have accelerated, accounting for around 9% of the global new car market in 2021, compared to 4.1% in 2020 and 2.5% in 2019, according to industry data. Supportive government policies including subsidies, improved performance of electric vehicles, and growing consumer attention to sustainability are key drivers.
As the adoption of electric vehicles continues, the number of charging stations should continue to increase. According to the DOE, “electric vehicle charging continues to experience rapidly evolving technology and growing infrastructure.” Even many existing gas stations are adding electric charging equipment to position themselves for the anticipated rise in electric vehicles. The Biden administration has a stated goal of building a nationwide public charging network of 500,000 ports by 2030.
Focus on cross-selling a growing range of products, services and technologies
At the same time, XDSL is expanding its footprint by focusing on markets where it can create a concentration of EV charging points to take advantage of the proximity characteristics of its mPower EV+ ecosystem. XDSL has recently begun signing deals that fit this strategy, including deals to install the platform at stations in Illinois, Virginia and Florida. In total, the company has a pipeline of over 30,000 locations and plans to acquire new locations through two different sales channels.
The company’s goal is to focus on markets where it can cross-sell its growing line of products, services and technologies. By early 2023, XDSL intends to have a multistate footprint of over 10,000 mPower locations. The company is engaged in discussions with EV charging manufacturers, microgrid companies and automotive OEMs to support this ambitious goal.
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