EVgo, Inc. Q3 FY2024 earnings call

• The business model of owning and operating a DC fast charging network is proving to be a leader, with record revenues and doubled throughput for the seventh consecutive quarter. - Charging network revenue nearly doubled, operational stalls grew 34%, over 800 new stalls added, and an EVgo station opened in the 40th state. - Customer accounts increased nearly 60%. - Progress on key priorities: improved customer experience with larger sites, more 350 kW chargers, and Autocharge+ gaining traction; CAPEX efficiencies with next-gen charging equipment co-developed with Delta Electronics targeting 30% reduction in gross CAPEX per stall; 56% of EV gross throughput from Rideshare, OEM charging credit, and subscription accounts; financing: conditional commitment for $1.05 billion DOE loan to build 7500 stalls over five years, and completed sale of 30C income tax credits for 2023 vintage stalls.

In Q3 2024, EVgo's charging network revenues were $43.1 million, a 98% year-over-year increase. eXtend revenues were $21.9 million, up 109% year-over-year. Total stalls in operation were approximately 3680 at the end of September 2024, including 290 EVgo eXtend stalls, a 34% increase from the prior year. Customer accounts ended the quarter at over 1.2 million, a 57% increase versus the prior year. Network throughput more than doubled to 78 gigawatt hours in Q3 2024. Network utilization increased to 22%, with 59% of stalls having utilization >15%, 47% >20%, and 28% >30%. Average daily throughput per stall was 254 kilowatt hours per day, a 64% increase from Q3 2023.

• EVgo is increasing the midpoint of 2024 revenue guidance to $250 million to $265 million due to continued strength in charging network revenues. - Adjusted EBITDA guidance is increased to a range of negative $38 million to $32 million. - Full-year capital expenditures, net of capital offsets, expected to be in the $50 million to $65 million range. - Expect quarterly seasonal growth in charging network revenue in Q4, eXtend revenue to decrease in Q4 due to timing of construction projects. - Confident in hitting adjusted EBITDA breakeven in 2025.

• Factors that could cause actual results to differ from expectations, including expectations about future performance. - Risks related to DOE loan closing process, NEVI program reallocation, 30C tax credit changes, and potential impact of political changes on federal incentives.

Q: Bill Peterson from J.P. Morgan asked about DOE loan closing conditions and near-term growth drivers.

A: Paul Dobson stated confidence in closing the loan, conditions largely within control. Badar Khan mentioned strong demand growth and eXtend details.

Q: Andres Sheppard from Cantor Fitzgerald asked about utilization rates and autonomous vehicles.

A: Badar Khan discussed higher utilization compared to industry peers and opportunities with autonomous vehicles.

Q: Craig Irwin from ROTH Capital asked about Tesla opportunity and DOE funding expense burden.

A: Badar Khan talked about potential to serve Tesla customers with NACS connector and leveraging existing infrastructure.

Q: Christopher Dendrinos from RBC Capital Markets asked about DOE alternative funding and Delta Electronics partnership.

A: Badar Khan discussed non-dilutive financing as options and details on Delta partnership for CAPEX savings.

Q: Chris Pierce from Needham asked about high utilization sites and EV penetration.

A: Badar Khan explained no material difference in sites built with DOE loan and continued utilization growth.

Q: William Grippin from UBS asked about 30C monetization and Rideshare/OEM subscription breakdown.

A: Paul Dobson discussed 30C monetization strategy and Rideshare/OEM revenue breakdown.