NEW YORK, September 28, 2022–(BUSINESS WIRE)–Volta Inc. (NYSE: VLTA) today announced an organizational realignment to reduce costs and drive strategic priorities. This refocuses resources on accelerating the company’s successful digital advertising activities, working with Volta’s many business and commercial real estate partners, and driving public-private partnerships that align with 7.5 funding. billions of dollars the federal government has allocated to build public electric vehicle charging infrastructure under the Bipartisan Infrastructure Act.
As part of the redefinition of strategic priorities, Volta is focusing on:
Rationalization of the organization: Today’s announcement represents a 10% reduction in current full-time employees. To date, Volta has reduced its full-time workforce by approximately 18% through further workforce reductions and organic attrition since June 1, 2022.
Achieve additional cost savings: Volta is implementing additional cost reduction initiatives by tightening business processes, limiting reliance on external consultants, consolidating teams and its three San Francisco offices into one, and managing marketing and administration.
Competition for federal funds: Volta’s model is attractive to municipalities, as evidenced by its recent collaboration with the City of Hoboken. The company’s dedicated team is well positioned as a public-private partner for state and federal funding, as evidenced by Volta’s relationship with the State of Michigan and DTE Energy. Volta intends to continue to prioritize EV charger installations eligible for government-provided funds by leveraging its award-winning program PredictEV® infrastructure planning software. By analyzing multiple data sources, including local economic and equity data, PredictEV can identify the locations in the company’s pipeline of more than 8,200 electric vehicle charging stations signed or covered by master agreements. service (MSA) that meet government requirements.
“Volta’s Board of Directors and senior executives are taking difficult but important steps to align the business with current market dynamics and position the business for long-term success,” said Vince Cubbage, Chief Executive Officer by Acting Volta. “Despite the near-term challenges, there are significant opportunities in the electric vehicle charging market as adoption accelerates and federal funding for electric vehicle infrastructure is rolled out. We are evaluating each aspect of the business to position Volta to seize this opportunity through disciplined management, capital, reduced operating expenses and an increased focus on public-private partnerships that enable us to more effectively grow our network and meet the needs of all our stakeholders.”
Outlook Financial and Installation Update
The profitability measures announced today aim to align Volta’s business with current market conditions. In addition to the risk factors described in Volta’s previous statements, these factors include: the advertising environment, particularly as automotive brands delay advertising spend due to inventory shortages; limited availability of power transformers affecting DC fast charger installations; and the impact of the fourth quarter shopping season on construction availability in commercial properties.
Given the ongoing execution of Volta’s strategic reprioritization, combined with these market conditions and an uncertain macroeconomic environment, the company is revising its third quarter revenue guidance to between $13.5 million and $14.5 million. of dollars. Additionally, the company is withdrawing its 2022 revenue and installation guidance until further notice. Volta remains committed to securing additional funding – including government incentives that will be available in 2023 – and pursuing new cost reduction initiatives.
Volta Inc. (NYSE: VLTA) is an industry-leading electric vehicle (“EV”) charging and media company. Volta’s unique network of charging stations powers vehicles and drives business growth while accelerating a clean energy future. Volta delivers value to site partners, brands and consumers by installing charging stations with large format digital advertising screens located steps from entrances to popular retail locations. Retailers can attract and influence foot traffic, advertisers can accurately target audiences, and EV drivers can seamlessly charge their vehicles as they go about their daily business. Volta’s extensive network is powered by its proprietary PredictEV® platform, which uses sophisticated behavioral science and machine learning technology to help commercial owners, cities and electric utilities plan infrastructure electric vehicles in a smart, efficient and fair way.
This press release contains certain forward-looking statements within the meaning of the federal securities laws, including statements regarding our electric vehicle charging network and media. These forward-looking statements are generally identified by words such as “anticipate”, “believe”, “estimate”, “expect”, “future”, “intend”, “could”, “opportunity”, “plan,” “potential,” “project,” “should,” “strategy,” “will,” “would,” and similar expressions. Forward-looking statements are predictions, projections, and other statements about future events that are based on current expectations and assumptions and, therefore, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements contained in this press release, including, but not limited to, the factors, risks and uncertainties included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021 and our Quarterly Reports on Form 10-Q for the quarterly periods ended March 31, 2022 and June 30, 2022, as these factors may be updated from time to time in our other filings with the Securities and Exchange Commission (the “SEC”), available on the SEC’s website at ‘address www.sec.gov and the Investor Relations section of our website at www.voltacharge.com. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to place undue reliance on any forward-looking statements and, except as required by law, we undertake no obligation and do not intend to update or revise any such forward-looking statements, whether whether as a result of new information, future events, or otherwise.
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