Release Date: November 12, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- EVgo Inc (EVGO, Financial) achieved a record quarter with revenues of $68 million, marking a 92% year-over-year increase.
- The company secured a conditional commitment for a $1.05 billion loan guarantee from the U.S. Department of Energy, which will accelerate their fast charging stall deployment.
- EVgo Inc (EVGO) reported a 34% increase in operational stalls and a 57% increase in customer accounts year-over-year.
- The company is targeting a 30% reduction in gross CapEx per stall with their next-generation charging architecture, co-developed with Delta Electronics.
- EVgo Inc (EVGO) raised the midpoint of their 2024 revenue guidance due to strong performance and expects to achieve adjusted EBITDA break-even in 2025.
Negative Points
- The company reported an adjusted EBITDA loss of $8.9 million for the third quarter of 2024.
- There is uncertainty regarding the finalization and timing of the DOE loan, which could impact future growth plans.
- EVgo Inc (EVGO) faces potential risks from energy cost volatility, which could affect their adjusted EBITDA.
- The company is experiencing a deceleration in quarter-on-quarter growth, with expectations of flat growth in the near term.
- There is a reliance on federal incentives, which currently represent approximately 10% of their full-year 2024 gross CapEx.
Q & A Highlights
Q: Can you provide details on the closing conditions for the DOE loan and any potential risks if the process extends past January?
A: Badar Khan, CEO: We are confident in our ability to close the loan without issuing equity. The conditions are largely within our control, and we do not expect a lengthy closing process. The DOE's policy is not to comment on timing, but we feel very confident about the outcome.
Q: What are the near-term growth drivers, especially considering the deceleration in the third quarter and implied guidance?
A: Badar Khan, CEO: We are seeing strong growth in demand and throughput. We expect continued growth in Q4. Paul Dobson, CFO, added that the guidance reflects raised expectations for both revenue and adjusted EBITDA, with energy costs being a potential swing factor.
Q: How does EVgo's utilization rate compare to the industry average, and what are your thoughts on autonomous vehicles impacting charging strategy?
A: Badar Khan, CEO: We have been transparent about our utilization rates, which are likely higher than many peers due to our site selection process. Autonomous vehicles represent a significant growth opportunity, as they will likely rely on fast charging to maximize uptime.
Q: Can you discuss the opportunity to serve Tesla vehicles and the impact of the NACS connector?
A: Badar Khan, CEO: We expect to attract Tesla drivers once the NACS connector is standardized and rolled out. Our urban network is closer to where people live and work, which should appeal to Tesla drivers who currently do not use our network.
Q: What are your expectations for 30C tax credit monetization going forward?
A: Badar Khan, CEO: We are evaluating the best strategy to maximize monetization, whether through annual or semi-annual sales. We expect continued monetization at levels similar to what we achieved this year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
