EVgo Inc. Q1 FY2024 earnings call

• Badar Khan highlighted strong Q1 results, revenue doubling and throughput tripling y-o-y. Noted Olga Shevorenkova's departure and Stephanie Lee as Interim CFO. - Discussed positive impact of Tesla's focus on cars for EV adoption, seeing EVgo as well-positioned. - Key priorities:
  • Improve customer experience: Deploying mostly 6 stores per site, aiming 20% by year-end; 350-kilowatt chargers near 50% by year-end; One & Done and Autocharge+ increasing.
  • Drive efficiencies: Prefabrication of stations reducing construction cost and time; software updates for predictive maintenance; offshoring call center to lower G&A; CapEx improvements like transition to aluminum conductors.
  • Attract higher-value customers: Hired EVP of Growth, segment-specific marketing, dynamic pricing, modernized customer data platform.
  • Secure financing: Utilizing ATM program, pursuing non-dilutive options, DOE loan application progress.

EVgo's first quarter 2024 revenue was $55.2 million, a 118% year-over-year increase. Retail charging revenues were $18.3 million, up 177% y-o-y; commercial charging (rideshare) revenues were $5.8 million, up 240% y-o-y; eXtend revenue was $19.2 million, up 86% y-o-y. The company added 250 new operational stores in Q1, with total stores in operation at ~3,240 by end of March 2024. Customer accounts grew to over 981,000, a 60% increase y-o-y. Network throughput reached over 53 gigawatt hours, nearly tripling year-over-year. Revenue contribution: retail charging ~33.2% ($18.3M/$55.2M), commercial charging ~10.5% ($5.8M/$55.2M), eXtend ~34.8% ($19.2M/$55.2M).

• Full-year 2024 revenue expected $220 million to $270 million.
  • Adjusted EBITDA expected -$48 million to -$30 million.
  • Capital expenditures net of capital offsets expected $95 million to $110 million, with focus on adding 800 to 900 new owned stores.
  • Aim for adjusted EBITDA breakeven in 2025.

Q: Gab Daoud asked about Tesla's impact on EVgo and financing details.

A: Badar Khan said Tesla's focus on cars is positive for EV adoption and benefits EVgo, expecting Capital to be more interested in the space. On financing, mentioned DOE loan application progress and 30C transactions expected over the next few months.

Q: Chris Dendrinos inquired about throughput seasonality and software updates.

A: Badar Khan noted seasonality, with April throughput per store per day well over 210 kilowatt hours. Software updates to improve predictive maintenance and customer issue resolution, expecting sustaining G&A cost per store to lower by around 20% run rate.

Q: Stephen Gengaro asked about 2025 EBITDA breakeven and financing impact.

A: Badar Khan said 2025 guidance is set, but potential to accelerate growth with financing as there are sites meeting return expectations and tailwinds in charge rates.

Q: Christopher Pierce asked about Level 3 vs Level 2 and ancillary margins.

A: Badar Khan discussed Level 3 becoming more dominant due to customer demand for higher speeds. Olga Shevorenkova mentioned ancillary revenue margin mix, with software-driven revenue high margin and eXtend-like business having lower double-digit margins.

Q: Andres Sheppard-Slinger inquired about utilization and liquidity.

A: Badar and Olga discussed utilization trends and liquidity including grants baked into planning, with cash ~$175.5M as of March 31, 2024.

Q: William Peterson asked about reliability and gross margin.

A: Badar Khan said uptime is improving with software updates for predictive maintenance. Olga Shevorenkova discussed gross margin dynamics, with charging business margins improving and ancillary revenue margin mix affecting overall gross margin.