EVgo, Inc. Q4 FY2024 earnings call

• Customer consumption on the network continued to rise: average daily throughput per public stalls rose by 37% versus the same quarter last year and up more than five - fold in three years; network utilization reached an industry - leading 24%, up 5% from a year ago.
• Infrastructure expansion: added a record 480 new operational stalls in the fourth quarter, with over 1,200 new stalls added in 2024 and over 4,000 operational stalls in total; closed a $1.25 billion loan guarantee with the Department of Energy Loan Programs Office.
• Partnerships and product development: plan to launch the first of 400 new flagship stalls in partnership with GM;推进与Delta Electronics合作开发下一代充电架构,预计降低每充电桩资本支出30%; launched native NACS connectors pilot project.
• Pricing and customer base: 100% of existing fast - charging sites had dynamic pricing by year - end 2024; customer accounts reached over 1.3 million in 2024, growing over 50% from 2023.

EVgo had a strong fourth quarter and full year 2024. Core charging business full - year revenues more than doubled year - over - year, and Q4 was the ninth sequential quarter of double - digit growth. Full year revenue grew 60% year - over - year, with a near 12 - fold growth in three years. In the fourth quarter, 480 new operational stalls were added, making it a record year with over 1,200 new stalls added and over 4,000 operational stalls in total. Core charging network revenues in 2024 were $155.7 million, up from $74.2 million in 2023, a 110% year - over - year increase. eXtend revenues in 2024 were $86.6 million, up from $72.4 million in the prior year, a 20% growth. 2024 public network throughput was 277 gigawatt hours, a 116% increase compared to the previous year. Network utilization in the fourth quarter increased to 24%, up from 19% a year ago. Charging network gross margin in 2024 was 37.6%, up from 26% in 2023. Full year 2024 revenue was $256.8 million, an increase of 60% over 2023. Adjusted EBITDA in 2024 was a loss of $32.5 million, a $26.4 million improvement over 2023. Cash, cash equivalents, and restricted cash was $121 million as of December 31, 2024, and after receiving the first $75 million draw under the DOE loan in January 2025, it reached approximately $200 million.

• Revenue: Expect total revenues in the range of $340 million to $380 million in 2025. Charging network revenue is expected to comprise approximately two - thirds of total revenue and see sequential quarterly growth throughout 2025. eXtend revenues are expected to be roughly flat in 2025 to 2024, with growth in the second half of the year. Ancillary revenues are expected to grow in 2025, mostly in the fourth quarter of 2025.
• Adjusted EBITDA: Target adjusted EBITDA breakeven in 2025 with a range of negative $5 million to positive $10 million.
• Capital expenditures: Expect fiscal CapEx net of offsets to be in the range of $160 million to $180 million for 2025.

• Government funding risk: Government funding is under review, which may affect the subsequent disbursement of the loan.
• LCFS pricing risk: There is a risk related to LCFS pricing.
• NEVI risk: Risk associated with NEVI.
• Tariff risk: Potential impact on the supply chain due to tariff changes, although currently, the direct impact on charging infrastructure is minimal.
• Demand charge risk: Possible impact of demand charges over time with expected load growth in the US.

Q: Please shed some light on when you expect the second drawdown to occur for the loan, any conditions that must be fulfilled, and discussions with the administration regarding the loan, as well as non - dilutive financing options.

A: We have a productive relationship with the LPO team. We received the first quarterly advance in January. It's too early for the next quarter (Q2). We are looking at complementary non - dilutive financing, with positive reception from banks due to our proven developer status and strong cash flows.

Q: What can drive the outcomes to the negative or positive end of the 2025 guidance, and how does it relate to DOE loan deployments, G&A increase per stall, and factors like utilization, charging rate, and network throughput?

A: Revenue range reflects variability in throughput (plus or minus 5%) and LCFS pricing risk. Non - charging revenue range is due to timing differences on contracts, permitting, logistics, and NEVI risk. G&A is expected to increase modestly from Q4 run rate. Adjusted gross margin percentage for both charging and non - charging businesses is expected to increase.

Q: If the DOE loan was paused, how would you respond? Would you curtail activity or look for other financing opportunities?

A: We feel confident in the loan as the loan assets are performing strongly. We have a strong cash balance of about $200 million at the start of the year. We are pursuing complementary non - dilutive financing and are confident in executing on that this year.

Q: Talk about the strategy on the AV charging station side and how it compares with the public network stations.

A: We've been operating dedicated sites for AV fleet partners for years. We more than doubled the number of operational dedicated stalls last year. Margins for this business are lower than public owned and operated but higher than eXtend business. We estimate we have about a 20% share of dedicated hubs for AV partners today.

Q: How has the strategy shifted on the prioritization of geographic growth, especially regarding the current administration's stance on electrification?

A: We are increasing the share of store growth and network expansion outside California. In the fourth quarter of last year, usage in the rest of the United States exceeded that in California. We are following demand and designing our network plan to follow demand.

Q: Has there been any sensitivity or studies regarding potential tariffs and their impact on CapEx?

A: Minimal direct impact from tariffs as we don't source chargers from China and have options in the supply chain. Our business is resilient, driven by the delta between EV demand and charging infrastructure supply.

Q: Update on where you stand with utilities and jurisdictions on extending or instituting demand charge holidays, and risk from expected load growth.

A: We have demand charge reductions or holidays across most of our kilowatt hours. As throughput per stall grows, the impact of demand charges becomes smaller over time.

Q: How do you think utilization will evolve in 2025 based on guidance, and is there a target sweet spot of utilization?

A: We are already in the range of our updated long - term utilization range (23% - 26%). Throughput per stall is driven by utilization and charge rate. We are sophisticated in deploying pricing and customer marketing. In 2025, utilization is expected to continue to develop, and we may update the long - term target again.

Q: Any uptick in Tesla vehicles charging on the network since it opened its network to other OEMs?

A: Tesla vehicles are charging on our network at higher rates than before with the NACS cable pilot, but it's too early to project across the rest of the network. We are expanding NACS cable deployment throughout the year.

Q: To what extent could skid - based hardware drive cost reductions for 2025 vintage CapEx and offset loss of 30C tax credits?

A: The charger CapEx reduction program with Delta is looking at a 30% improvement in gross CapEx per stall. The 30C tax credits represent less than 0.5% of total cost of the IRA and our business is not overly reliant on federal incentives. We see modest improvements in gross CapEx per stall in 2025.

Q: Thoughts on Ionna moving from beta to national release and competition perspective?

A: Increasing charging supply stimulates demand. Ionna's sites don't appear to be sites we would look at for maximizing utilization. Our business has a resilient model and we get a disproportionate share of kilowatt hours due to well - located sites.