EVgo Inc. Q4 FY2023 earnings call

• Mission and Business Model: EVgo's mission is to accelerate EV adoption via a convenient charging network, focusing on DC fast charging which grows faster than EVs.
• Financial Results: Fourth quarter 2023 revenue $50M (83% YOY growth), full-year 2023 revenue $161M (nearly tripling). Adjusted EBITDA loss improved in 2023.
• Network Growth: Added over 930 new stalls in 2023, ending with ~3,550 stalls. Customer accounts grew to over 884,000.
• Operational Leverage: Gross margin expanded due to operating leverage. Installed base profitable on standalone basis.
• Network Planning: Proprietary model considers EV adoption rates, multifamily housing density, rideshare volumes, etc., for charger location.
• Customer Experience: Autocharge Plus and reservations improved user experience; one and done rate increased to 91%.

EVgo has three main revenue sources.

• Owned and operated DC fast chargers: Fourth quarter 2023 revenue was $50 million, an 83% year-over-year increase. Retail charging revenue grew from $5.8 million in Q4 2022 to $16.7 million in Q4 2023 (186% YOY growth). Commercial charging revenue grew from $1.3 million in Q4 2022 to $6.3 million in Q4 2023 (378% YOY growth). Full-year 2023 revenue was $161 million, nearly tripling compared to 2022. Retail charging revenue was $45.7 million (142% YOY growth), commercial charging revenue was $14.5 million (331% YOY growth).
• eXtend business: Fourth quarter 2023 revenue was $18.3 million (10% YOY growth). Full-year 2023 revenue was $72.4 million (292% YOY growth).
• Ancillary/tech-enabled services: Revenue growth is noted, with PlugShare and fleet-focused services contributing, though specific detailed figures are less emphasized.

• 2024 Revenue: Expected to be in the range of $220 million to $270 million.
• 2024 Adjusted EBITDA: Expected to be in the range of negative $48 million to negative $30 million.
• 2025 Outlook: Target adjusted EBITDA breakeven.
• Capital Expenditures: 800-900 new owned stalls in 2024, with capital expenditures net of offsets expected to be in the $95 million to $110 million range.

• Market and Regulatory Risks: Factors affecting EV adoption, changes in government incentives, and regulatory changes.
• Competition: Competition from other charging networks, including Tesla opening up their network.
• Execution Risks: Delays in network expansion and challenges in monetizing grants and incentives.

Q: Gabe Daoud from TD Cowen asked about 2024 capital offsets and 30C credits.

A: Olga Shevorenkova responded on capital offsets and 30C credits, noting first-time monetization of 30C credits and exploration of pricing.

Q: Andres Sheppard from Cantor Fitzgerald asked about NEVI funding and utilization.

A: Badar Khan and Olga Shevorenkova responded, stating NEVI funding is not material to build plan but they access various grants.

Q: Bill Peterson from JPMorgan asked about eXtend business and network growth.

A: Olga Shevorenkova responded, stating eXtend revenue expected to be equally distributed across quarters with Q4 heavier.

Q: Stephen Gengaro from Stifel asked about Tesla opening up the network and site planning.

A: Badar Khan responded, stating Tesla opening up the network aids EV adoption and site planning considers multiple factors including Tesla's network location.

Q: Craig Irwin from Roth MKM asked about rideshare economics for traditional drivers.

A: Badar Khan responded, noting potential economic advantages for rideshare drivers but detailed discussion deferred.