EVgo (EVGO) - 2024 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - EVgo reported full year revenues of $257 million, representing a 60% year-over-year increase, with Q4 revenue growing 35% year-over-year to$ 67.5 million [44][50] - Total throughput on the public network for 2024 was 277 gigawatt hours, a 116% increase compared to the previous year [44] - Charging network gross margin improved to 37.6% in 2024, up from 26% in 2023, while adjusted EBITDA margin also showed significant improvement [49][51] Business Line Data and Key Metrics Changes - Full year revenues from the core charging business more than doubled year-over-year, with charging network revenues reaching $155.7 million, a 110% increase from$ 74.2 million in 2023 [11][45] - eXtend revenues increased by 20% to $86.6 million from$ 72.4 million in the prior year [45] - The average daily throughput per public stall was 269 kilowatt hours, compared to 197 kilowatt hours last year, indicating a significant increase in utilization [48] Market Data and Key Metrics Changes - Utilization on the network reached 24%, up from 19% a year ago, with 65% of stalls having utilization greater than 15% [10][47] - EVgo added a record 480 new operational stalls in Q4, bringing the total to over 4,000 operational stalls [11][43] - The company estimates that less than 10% of 2025 revenue will be driven by new first-time drivers of EVs, indicating a shift in focus towards overall electric vehicle operation rather than new sales [16][85] Company Strategy and Development Direction - EVgo plans to triple its installed base over the next five years, supported by a $1.25 billion loan guarantee from the Department of Energy [12][40] - The company is focusing on improving customer experience, operational efficiencies, and capturing high-value customers, with 56% of throughput coming from rideshare and subscription accounts [28][35] - EVgo is expanding its partnerships with site hosts and plans to launch flagship stalls in collaboration with GM, enhancing customer experience [38] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of charging infrastructure in stimulating demand for electric vehicles, especially in the context of competition with China [13][16] - The company remains confident in its business model, which is resilient to fluctuations in EV sales, as it is driven by the overall growth of electric vehicles in operation [20][112] - EVgo expects total revenues in the range of$ 340 million to $380 million for 2025, with a target of adjusted EBITDA breakeven [66] Other Important Information - EVgo's cash, cash equivalents, and restricted cash stood at$ 121 million as of December 31, 2024, and increased to approximately $200 million after the first draw of the DOE loan [53] - The company achieved a 9% reduction in gross CapEx per stall in 2024 and anticipates further reductions in 2025 [34][32] - EVgo is also exploring complementary non-dilutive financing options to support growth beyond the DOE loan [82] Q&A Session Summary Question: Status of the DOE loan and second drawdown - Management expressed confidence in the DOE loan, stating it is a legally binding contract and they have a productive relationship with the LPO team [74][75] Question: Guidance for full year outcomes - Management indicated that revenue guidance reflects some variability, with G&A expected to increase modestly due to investments in technology and inflation [87][88] Question: Impact of executive orders on funding - Management reiterated confidence in the loan and highlighted strong cash balances, indicating the ability to adjust CapEx deployment if necessary [100][102] Question: Strategy for AV charging stations - Management discussed the growth in dedicated hubs for autonomous vehicles, noting a different revenue model with fixed monthly payments [105][107] Question: Geographic growth strategy - Management confirmed a shift towards expanding outside California, following demand trends in other states [115][116] Question: Impact of tariffs on CapEx - Management stated minimal impact from tariffs, emphasizing a robust supply chain that is not reliant on imports from China [120][121]