EVgo (US:EVGO)2023-08-03 01:05Financial Data and Key Metrics Changes - EVgo reported second quarter revenue of $50.6 million, representing a nearly five-fold year-over-year increase and nearly doubling from the prior quarter [26][92] - Year-to-date revenue in 2023 has already surpassed the total revenue generated in 2022 [26] - Adjusted EBITDA for Q2 2023 was negative $10.6 million, an improvement from negative $19.8 million in Q2 2022 [137] - Cash, cash equivalents, and restricted cash grew to $257.4 million as of June 30, 2023, including $123.4 million raised through an equity offering [137] Business Line Data and Key Metrics Changes - eXtend revenue accounted for 66% of total consolidated revenue in Q2 2023, primarily driven by equipment sales to Pilot Flying J [138] - EVgo commissioned 210 new stalls in Q2, bringing the total operational stalls to approximately 2,500 [21][27] - Charging revenue represented 25% of total consolidated revenue for Q2 2023, with expectations for sequential growth in the third and fourth quarters [51] Market Data and Key Metrics Changes - EVgo achieved double-digit utilization across its network for the first time, with utilization exceeding 15% at 30% of charging cells in June [93] - The company experienced mid-teens utilization in California and other markets, including Las Vegas and San Antonio [93] - Retail throughput more than doubled, and fleet throughput grew fourfold year-over-year [97] Company Strategy and Development Direction - EVgo aims to scale its business to meet increasing fast-charging demand, focusing on partnerships with retailers and expanding its charging network [11][14] - The company is committed to integrating NACS connectors into its network and enhancing customer experience through technology innovations [17][98] - EVgo's strategy includes leveraging multiple funding sources, including federal and state grants, to support its growth [41][111] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in EVgo's ability to capitalize on the growing EV market, anticipating significant demand for charging infrastructure [95] - The company highlighted the importance of maintaining a disciplined approach to investments while expanding its network [94][100] - Management acknowledged the competitive landscape but emphasized EVgo's first-mover advantage and strong partnerships with OEMs [79][160] Other Important Information - Cathy Zoi announced her retirement as CEO, with Badar Khan set to take over, indicating a smooth transition plan [9][90] - EVgo's ReNew program is focused on upgrading or replacing existing charging stalls to enhance service quality [99][114] - The company is actively pursuing NEVI grants and has been successful in securing funding in Ohio [107][156] Q&A Session All Questions and Answers Question: What is driving the increase in throughput and stall growth? - Management indicated that the increase is likely due to a combination of new EV models entering the market and improved customer experience leading to repeat customers [139] Question: How does EVgo plan to handle competition from OEMs? - Management noted that OEMs need to invest in charging infrastructure to support their vehicle sales, and EVgo is well-positioned to collaborate with them [79][160] Question: What is the expected timing for BABA compliant chargers? - Management mentioned that BABA compliant chargers are not expected to be significantly available until 2024, as suppliers are still working on US manufacturing facilities [117] Question: How is EVgo managing its funding and capital needs? - Management highlighted a diversified approach to funding, including equity offerings and grants, which positions the company well for future growth [39][41] Question: What are the expectations for NEVI funding applications? - Management expects announcements for NEVI applications in states like Colorado and Pennsylvania in the near future, with projects likely to start in 2024 [161]