EVgo (US:EVGO)2022-08-09 20:00Financial Data and Key Metrics Changes - EVgo reported revenue of $9.1 million for Q2 2022, a 90% increase compared to Q2 2021 [42] - Charging revenue was $5.3 million, up 66% year-over-year, with retail charging increasing by 76% [42] - Adjusted gross margin improved to 37.2%, reflecting a 15 percentage point increase year-over-year [43] - Adjusted EBITDA was negative $19.8 million, compared to negative $11 million in Q2 2021 [45] - CapEx increased to $44 million in Q2 2022, driven by charger deployment efforts [44] Business Line Data and Key Metrics Changes - EVgo placed 170 stalls into operation across 17 states during Q2 2022, bringing total stalls in operation or under construction to 2,397 [9][39] - Network throughput reached 10.1 gigawatt hours, a 66% increase over Q2 2021 [10][41] - Customer count increased by 18% from the first quarter, totaling 444,000 [41] Market Data and Key Metrics Changes - EVgo's active engineering and construction development pipeline grew from 3,344 stalls at the end of Q1 to 3,669 at the end of Q2 [40] - The company activated plug-in charge for all GM EVs on its network, enhancing customer experience [11] Company Strategy and Development Direction - EVgo is focusing on partnerships, including a significant agreement with Pilot and GM to deploy up to 2,000 charging stalls [16][46] - The company is preparing for regulatory changes and funding opportunities under the Infrastructure Investment and Jobs Act and the Inflation Reduction Act [8][36] - EVgo emphasizes technology-enabled innovation as a competitive advantage, with initiatives like Autocharge+ and the EVgo Innovation Lab [31][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting revenue guidance for the second half of the year, driven by new contractual revenues and seasonal factors [55][62] - The company is well-positioned to benefit from the NEVI program and anticipates significant funding opportunities [66] - Management highlighted the importance of being a well-capitalized player in the evolving EV charging market [70] Other Important Information - EVgo has applied for public funding in over 30 different grant programs in 2022 [31] - The company received a $3.6 million grant from the California Energy Commission to build fast charging infrastructure for multi-family housing [30] Q&A Session Summary Question: Can you provide confidence in revenue delivery for the rest of the year? - Management is tracking to forecasts, considering growth in EVs and the impact of the Pilot Flying J deal [53][55] Question: How significant will the eXtend program be in the next few years? - eXtend is expected to contribute significantly, especially in rural areas, as EVgo has a strong track record [56][58] Question: What is the expected seasonality impact on revenue in Q3 and Q4? - Revenue is expected to ramp up in the second half due to new contractual revenues and seasonal factors [61][62] Question: Can you provide insights on the NEVI program and its impact? - Management anticipates significant funding from the NEVI program starting in Q4 2022 or Q1 2023, with EVgo positioned as a key player [64][66] Question: How does the current economic environment affect partnerships? - The well-capitalized companies are seen as more favorable partners, and EVgo's track record enhances its attractiveness [70] Question: What is the cash flow positivity threshold for locations? - Cash flow positivity varies by location, influenced by EV density, energy costs, and local incentives [74] Question: How do you see the margin profile of the eXtend program? - EVgo targets a minimum of a double-digit cash flow margin for eXtend deals [78] Question: What is the expectation for LCFS credits in the second half of the year? - LCFS credits are expected to remain flat at around $95 per credit [91]