EVgo Inc. Q4 FY2024 earnings call

• Customer consumption on the network continued to rise, with average daily throughput per public stall up 37% y-o-y and over five-fold in three years. Utilization hit an industry-leading 24%, up 5% from the prior year.
• Full year revenues from the core charging business more than doubled y-o-y, with Q4 marking the ninth sequential quarter of double-digit growth. Full year revenue grew 60% y-o-y.
• Added a record 480 new operational stalls in Q4, with over 1,200 new stalls added in 2024, totaling over 4,000 operational stalls.
• Key priorities: Improving customer experience (larger sites, higher-power chargers, Autocharge+ traction), operating in CapEx efficiencies (MOU with Delta for next-gen charging, prefabricated skids), capturing high-value customers (rideshare, multifamily, AVs, dynamic pricing), and securing additional financing (DOE loan, non-dilutive options).
• Launched a pilot rollout of the NACS cable, aiming to attract Tesla vehicles and expand network throughput.

In 2024, EVgo's revenue was $257 million, a 60% year-over-year increase. Charging network revenues totaled $155.7 million, up from $74.2 million in 2023 (a 110% increase), and eXtend revenues were $86.6 million, up from $72.4 million (a 20% increase). Public network throughput was 277 gigawatt hours, a 116% increase compared to 2023. The company ended 2024 with 4,080 operational stalls, a 37% increase from 2023. Average daily throughput per public stall rose 37% y-o-y, and utilization reached 24%, up 5% from the prior year.

EVgo expects total revenues in 2025 to be in the range of $340 million to $380 million. The company targets adjusted EBITDA breakeven in 2025, with a range of negative $5 million to positive $10 million. Charging network revenue is expected to comprise approximately two-thirds of total revenue in 2025, with sequential quarterly growth anticipated. eXtend revenues are expected to be roughly flat in 2025, with growth in the second half. Ancillary revenues are expected to grow, mostly in Q4 2025.

• Uncertainties regarding DOE loan disbursements and potential clawbacks. - Tariff impacts on the supply chain and indirect effects on EV demand. - Risks associated with demand charges and potential load growth impacts on utilities.

Q: About the DOE loan second drawdown and non-dilutive financing?

A: Badar and Paul discussed a confident relationship with the DOE LPO, having received the first draw in January, with the next draw expected in Q2, and the company is pursuing non-dilutive financing options.

Q: Factors driving guidance outcomes and G&A impact?

A: Paul mentioned variability in throughput, LCFS pricing, timing of contracts, NEVI risk, and a modest increase in G&A due to investments and inflation.

Q: Impact of Trump executive orders on DOE loan and growth?

A: Badar and Paul stated confidence in the DOE loan, strong cash position, and plans for complementary financing to maintain growth.

Q: AV charging strategy vs public network?

A: Badar discussed dedicated AV stalls, having ~20% market share, and potential faster growth in this segment.

Q: Geographic growth prioritization?

A: Badar mentioned the company is following demand, with non-California usage exceeding California in Q4 2024.

Q: Tariffs impact on CapEx?

A: Badar stated minimal impact on charging infrastructure, with a diverse supply chain and options to adjust production if needed.

Q: Utilization evolution and Tesla NACS?

A: Paul discussed utilization within the updated range, and Badar mentioned a NACS cable pilot with early signs of Tesla vehicles charging on the network.

Q: Skid-based hardware impact on CapEx and 30C tax credits?

A: Badar mentioned a ~30% CapEx reduction goal through skid-based hardware and stated the business is not overly reliant on 30C tax credits.

Q: Accelerating NACS deployment?

A: Badar stated the plan to deploy NACS cables throughout the year, starting with a pilot and aiming to expand to the broader network.

Q: Competition from other charging companies?

A: Badar mentioned the non-zero-sum game nature of the charging infrastructure space, where increased deployment stimulates demand, benefiting EVgo.