EVgo (US:EVGO)2023-03-30 19:09Financial Data and Key Metrics Changes - EVgo reported fourth quarter revenue of $27.3 million, a substantial increase of 283% year-over-year, driven by increased retail charging revenue and execution of the EVgo eXtend contract with Pilot Flying J in partnership with General Motors [76] - Full year revenue reached $54.6 million, representing a year-over-year growth of 146% [78] - Adjusted EBITDA for Q4 2022 was negative $20.1 million, compared to negative $16.3 million in Q4 2021 [77] - Full year adjusted EBITDA was negative $80.2 million, compared to negative $51.4 million in 2021 [110] - Capital expenditures (CapEx) totaled $200.3 million in 2022, primarily for new stall deployments [79] Business Line Data and Key Metrics Changes - Customer accounts increased by 63% year-over-year, with throughput growth of 69% significantly exceeding operational stall growth of 29% [78] - EVgo added nearly 670 new stalls to its network in 2022, a 131% increase from 2021 [109] - The adjusted gross margin declined from 28.2% in Q4 2021 to 18.3% in Q4 2022 due to a decrease in regulatory credit sales contribution [108] Market Data and Key Metrics Changes - In 2022, over 800,000 fully electric vehicles were sold in the U.S., marking a 70% increase from 2021, with battery electric vehicle sales accounting for nearly 6% of all vehicles sold [65] - California led the market with 19% of all new cars sold being EVs, compared to 6% for the entire country [97] - EVgo's throughput for the full year was 44.6 gigawatt hours, an increase of 69% from 2021 [98] Company Strategy and Development Direction - EVgo aims to build a robust charging network and has committed to investing in charging solutions that deliver targeted financial returns [2] - The company is focused on enhancing customer experience through innovations like the EVgo mobile app and partnerships with major automakers [7][55] - EVgo plans to expand its fleet business and partnerships with autonomous vehicle companies, positioning itself to benefit from the growing adoption of electric vehicles [111] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of government initiatives and funding, such as the Bipartisan Infrastructure Law and Inflation Reduction Act, in accelerating EV charging deployment [8] - The company anticipates potential delays in project timelines due to supply chain issues and regulatory requirements but remains optimistic about long-term growth [10] - EVgo expects full year 2023 adjusted EBITDA to be negative $78 million to negative $60 million, with a target of 3,400 to 4,000 DC fast charging stalls in operation or under construction by year-end [84] Other Important Information - EVgo's partnerships with companies like Amazon and GM are crucial for expanding its charging network and enhancing customer experience [6][52] - The company is actively engaging with state departments of transportation to expedite charging project deployments [9] - EVgo's subscription plans are gaining traction, offering value for drivers based on their expected charging frequency [82] Q&A Session Summary Question: What factors influence the guidance for the number of stalls installed? - The guidance includes uncertainties related to NEVI rules and normal volatility in utility delivery timelines [86] Question: How does EVgo view competitive pricing changes in the market? - EVgo has a sophisticated pricing strategy and is exploring dynamic pricing capabilities to enhance customer satisfaction and profitability [120] Question: What is the expected impact of supply chain issues on fleet partnerships? - While there is a slower rollout of EVs due to supply chain shortages, EVgo does not see a pullback in fleet partnerships but rather a slower initial investment phase [135]