Company Performance - EVgo Inc. reported a quarterly loss of $0.11 per share, better than the Zacks Consensus Estimate of a loss of $0.15, and compared to a loss of $0.12 per share a year ago, indicating an earnings surprise of 26.67% [1] - The company posted revenues of $67.51 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 2.85%, but showing an increase from year-ago revenues of $49.99 million [2] - Over the last four quarters, EVgo has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times as well [2] Stock Outlook - EVgo shares have declined approximately 39.8% since the beginning of the year, contrasting with the S&P 500's decline of only 0.5% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.15 on revenues of $75.26 million, and for the current fiscal year, it is -$0.55 on revenues of $369.98 million [7] Industry Context - The Automotive - Original Equipment industry, to which EVgo belongs, is currently ranked in the bottom 40% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact EVgo's stock performance [5]

Nasdaq: EVGO – investors.evgo.com Q4 2024 Earnings Call March 4, 2025 SAFE HARBOR & FORWARD-LOOKING STATEMENTS Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "estimate," "plan," "project," "forecast," "intend," "will," "expect," "anticipate," "believe," "seek," "target," "assume" ...

Core Viewpoint - EVgo's stock experienced a decline following its earnings report, as investors are concerned about the future of the electric vehicle (EV) industry without the support of former President Trump [1] Company Summary - EVgo reported its earnings, which did not meet investor expectations, leading to a drop in stock price [1] - The company is facing challenges in a potentially changing political landscape that may affect EV incentives and support [1] Industry Summary - The EV industry is at a critical juncture, with uncertainties regarding government support and policies that could impact growth [1] - Investors are weighing the implications of a future without Trump's backing, which could alter the dynamics of EV adoption and infrastructure development [1]

Revenue Performance - Revenue for Q4 2024 was $67.5 million, a 35% increase year-over-year[2] - Full year 2024 revenue reached a record $256.8 million, up 60% from 2023[2] - Total revenue for Q4 2024 was $67.5 million, a 35% increase from $50.0 million in Q4 2023[24] - GAAP revenue for Q4'24 was $67,513 thousand, representing a 35% increase compared to Q4'23, and FY 2024 revenue reached $256,825 thousand, up 60% from FY 2023[39] Charging Network Performance - Charging network revenue in Q4 2024 was $46.5 million, a 73% increase year-over-year[2] - Charging network revenue reached $46.5 million in Q4 2024, up 73% from $26.9 million in Q4 2023[24] - Charging Network Gross Profit for Q4 2024 was $18,838 thousand, up 116% from $8,719 thousand in Q4 2023[37] - Charging Network Gross Margin increased to 40.5% in Q4 2024, up 810 basis points from 32.4% in Q4 2023[37] Customer Growth - EVgo added over 133,000 new customer accounts in Q4 2024, reaching over 1.3 million total accounts[4] Operational Metrics - Network throughput for Q4 2024 was 84 GWh, representing a 68% increase year-over-year[2] - The average daily throughput per stall increased by 37% to 269 kWh in Q4 2024[4] - The company added over 480 new operational stalls in Q4 2024, totaling approximately 4,080 stalls in operation[2] Financial Losses and Improvements - The net loss for the year ended December 31, 2024, was $126.7 million, a 6% improvement compared to a net loss of $135.5 million in 2023[24] - GAAP net loss for Q4 2024 was $(35,608) thousand, a 3% improvement compared to $(36,589) thousand in Q4 2023[34] - Adjusted EBITDA for Q4 2024 was ($8.4) million, improving 40% from the previous year[10] - Adjusted EBITDA for Q4 2024 was $(8,404) thousand, a 40% improvement from $(13,962) thousand in Q4 2023[34] Cash and Assets - Cash and cash equivalents decreased to $117.3 million as of December 31, 2024, from $208.7 million in 2023[22] - Total assets as of December 31, 2024, were $803.8 million, slightly down from $806.6 million in 2023[22] Expenses and Cost Management - Operating expenses for Q4 2024 were $44.8 million, a marginal increase of 1% compared to $44.4 million in Q4 2023[24] - Adjusted General and Administrative Expenses for Q4'24 were $31,159 thousand, a 14% increase from Q4'23, while FY 2024 expenses totaled $108,150 thousand, a 7% increase year-over-year[39] - GAAP General and Administrative Expenses as a percentage of revenue decreased to 59.2% in Q4'24 from 77.6% in Q4'23, and for FY 2024, it decreased to 55.0% from 88.9% in FY 2023, reflecting a significant improvement[39] Capital Expenditures - Capital expenditures for the year were $94.8 million, a decrease from $158.9 million in 2023[26] - Capital expenditures for Q4'24 were $23,685 thousand, down 32% from Q4'23, and FY 2024 capital expenditures totaled $94,787 thousand, a 40% decrease compared to FY 2023[40] - Capital expenditures, net of capital offsets, for Q4'24 were $13,823 thousand, a 36% decrease from Q4'23, and FY 2024 net capital expenditures were $46,377 thousand, down 62% from FY 2023[40] Debt and Financing - The company generated $13.1 million in net cash from financing activities in 2024, compared to $143.0 million in 2023[26] - EVgo secured a loan guarantee of up to $1.25 billion from the U.S. Department of Energy to build approximately 7,500 fast charging stalls over the next five years[4] Adjustments and Reclassifications - The company reclassified certain revenues and costs in FY 2024, impacting the presentation of financial results[37] - Total adjustments to General and Administrative Expenses in Q4'24 amounted to $8,805 thousand, a 24% decrease from Q4'23, while FY 2024 total adjustments were $32,981 thousand, down 22% year-over-year[39]

Core Viewpoint - EVgo Inc is set to report its fourth-quarter earnings, with Wall Street anticipating a loss of 9 cents per share and revenues of $69.10 million, while the stock has seen a significant decline of 9.62% over the past year and 38.31% year-to-date [1]. Group 1: Stock Performance and Technical Indicators - EVgo stock is currently priced at $2.61, remaining below all major moving averages, indicating a strongly bearish trend, with the 200-day moving average at $4.27 [1]. - The Moving Average Convergence Divergence (MACD) indicator is at negative 0.29, signaling weak momentum, while the Relative Strength Index (RSI) is at 29.31, suggesting the stock is in oversold territory [2]. - Despite the bearish technical setup, the deeply oversold RSI indicates a potential for a short-term relief rally if buyers enter the market [2]. Group 2: Analyst Ratings and Price Targets - The consensus analyst rating for EVgo stock is currently a Buy, with an average price target of $6.97, suggesting a potential upside of 132.14% [4]. - Recent analyst ratings from JPMorgan and UBS support an average price target of $6, indicating significant upside potential from the current trading price of $2.44 [4].

Core Insights - The electric vehicle (EV) charging network, particularly EVgo, is experiencing significant growth ambitions despite a recent stall in overall electric vehicle sales in the United States [2][3]. Company Overview - EVgo operates one of the largest networks of charging stations in the U.S., with over 1,100 locations and 3,680 charging ports, aiming to capitalize on the growth of electric vehicles [4]. - Unlike Tesla's integrated network, EVgo provides charging solutions for non-Tesla electric vehicle owners, positioning itself as a necessary alternative to home charging [5]. Market Dynamics - In Q3 2024, EVgo's charging throughput grew by 111%, indicating rapid growth, particularly as non-Tesla electric vehicle sales increased by 18% year-over-year to 178,000 units [6]. - EVgo's revenue surged by 92% year-over-year to $62.5 million, with trailing-12-month revenue increasing by 1,530% since March 2021, highlighting its status as one of the fastest-growing businesses globally [7]. Future Growth Potential - Fully electric vehicles currently represent less than 10% of total vehicle sales in the U.S., but there is potential for this figure to rise significantly over the next decade, which would drive demand for EVgo's services [8]. - Projections suggest that EVgo's revenue could reach $2 billion or more in 10 years, assuming a continued annual growth rate of 23%, supported by federal financial backing [10]. Profitability Outlook - While revenue growth appears promising, profitability remains a concern, with EVgo's gross margin recently improving to around 10% but still considered thin [9]. - Assuming gross margins can improve to 15% over time, a net margin of 5% on projected revenues could yield $100 million in annual net income, suggesting a favorable valuation for EVgo's stock in the long term [11].

Core Insights - The EV charging stocks have faced significant challenges recently, coinciding with increased uncertainty in the industry due to recent actions by the Trump Administration [1] Industry Overview - The EV charging sector is currently experiencing a rough period, marked by a lack of positive developments and heightened uncertainty [1]

Core Viewpoint - The electric vehicle (EV) charging station industry is experiencing high growth, and while some funding questions have been addressed, additional factors must align for success [1] Group 1: Industry Insights - The EV charging station sector is characterized by significant growth potential, indicating a favorable market environment for companies like EVgo [1] - Despite the positive outlook, there are substantial challenges that could hinder the industry's progress and individual company performance [1] Group 2: Company Analysis - EVgo has the potential to outperform the market, but there are serious concerns regarding its odds of success in the current landscape [1]

Core Insights - EVgo is positioned in a growing industry focused on electric vehicle (EV) charging infrastructure, which is essential for the transition from combustion engines to EVs [2][8] - The company has made significant progress, operating around 1,100 charging stations with over 3,600 stalls, and has seen a year-over-year increase of over 33% in the number of stalls [3][4] - Despite impressive growth metrics, EVgo continues to face substantial costs, resulting in losses, with a reported increase in loss per share of more than 20% in Q3 2024 [5][6] Company Overview - EVgo builds and operates electric vehicle charging stations, which are crucial for supporting the widespread adoption of EVs [2] - The company has expanded its customer accounts by 57% year over year and achieved revenue growth of over 90% [4] Financial Performance - EVgo generates a gross profit, indicating that the revenue from its charging network exceeds operational costs, but overall expenses lead to net losses [6] - The company's cash reserves decreased by approximately 25% in the first nine months of 2024, highlighting the significant capital expenditures required for infrastructure development [7] Market Position and Future Outlook - Although EVgo's stock has declined since its peak in 2021, the long-term opportunity remains intact, potentially improving with the gradual shift towards EVs [8] - The substantial costs associated with building and maintaining the charging infrastructure suggest that EVgo may continue to operate at a loss for an extended period, making it a more suitable investment for aggressive investors [9]

Core Viewpoint - The recent federal directive has negatively impacted EV charging stocks, particularly EVgo, which saw a decline of over 7% in its shares, contrasting with the S&P 500's sub-1% decline [1]. Group 1: Federal Government Directive - The Trump administration halted a $5 billion initiative aimed at expanding EV charging infrastructure along U.S. highways, directing states to stop their participation in the National Electric Vehicle Infrastructure (NEVI) Formula Program [2]. - Plans approved by former President Joe Biden are now suspended until new guidelines are issued by the Transportation Department [3]. Group 2: Impact on Industry - The suspension of the program is detrimental to specialist EV charging companies and affects car manufacturers like Tesla that are involved in charging networks [3]. - Some states, such as Pennsylvania, are not complying with the directive and continue to operate their awarded projects, although future developments in these states appear uncertain [4]. Group 3: Market Reaction - There is potential for backlash from the charging segment and the broader auto industry, which may lead the administration to reconsider its decision [5]. - Despite the government's previous support, EV charging stocks have not performed well in the market, indicating limited investment opportunities at this time [5].