Thank you for joining the second quarter conference call. Today, we issued our second quarter shareholder letter, which provides details about our second quarter performance as well as our outlook for the remainder of the year.
Let me start by saying, it was a good quarter.
The key highlight is that, we showed substantial improvement in operating margins and adjusted EBITDA. This improvement is both year-over-year and on a sequential basis. This underscores inherent operating leverages in our business model. At a quarterly gross billing rate of about $60 million, we are break-even at our current cost structure.
In addition, ongoing cost reductions continue to lower this threshold.
Some highlights for the quarter include; the company deployed over 2,000 GenDrive units, up 70% year-over-year and reported gross billings of $58.6 million, up 50% year-over-year.
Additionally, the company was EBITDA breakeven for the second time in the past three quarters.
We also completed a small tuck-in small scale hydrogen fuel cell technology acquisition to complement our suite of offerings for broader logistics, robotics and UAV markets. We expanded into on-road vehicle applications and secured our first commercial scale deployment of ProGen fuel cells for on-road logistics with StreetScooter, a subsidiary of DHL.
As people know DHL is the world's largest logistics and mail communication service company, starting with 100 units for on-the-road vehicles programmed and expected to expand. According to Markus Reckling, the Head of German Operations at DHL Express, “If everything works as we imagine it would, there could be soon be 500 vehicles worldwide”. He further added that 80% to 90% of last-mile delivery vehicles would likely be a hybrid system, including batteries and fuel cells.
Few more items before moving on to the question-and-answers. One, we are reiterating our 2019 guidance; gross revenues between $235 million to $245 million; adjusted EBITDA for the full year 2019, when you exclude non-cash charges for customer warrants. Three, and finally, the company will make four major announcements. DHL’s StreetScooter was our first.
Also, we will be hosting the Plug Power Symposium on September 17th and 18th in Latham, New York. We're bringing together a group of the hydrogen fuel cell industry’s thought leaders to discuss pertinent issues that will help accelerate the growth of the industry. Program will feature key industrial players, including suppliers and major customers, and we'll ask them to share their experience and growth aspirations.
Additionally, we’ll share additional insights on the second day, highlighting both Plug Power’s near-term and long-term plans.
Paul and I will now be open to your questions.