EVgo (EVGO) 8 Nov 232023 Q3 Earnings call transcript

Thank you for standing by. My name is Ian, and I will be your conference operator today. At this time, I would like to welcome everyone to the EVgo Inc. Q3 2023 Earnings Call. All lines have been placed on mute to prevent any background noise. there a remarks, session. speaker's the will question-and-answer be After

over question to time, like If Vice call like Relations. a of to Heather during Investor President the now you would would ask this Davis, I [Operator turn to Instructions]

your You conference. may begin

welcome Investor Third Quarter and Relations name at Call. XXXX the am EVgo's and Davis, EVgo. Heather I to Vice morning, Earnings My Good is President of

and incoming Olga BCO's on EVgo's Chief Cathy Executive CEO, today's Badar with along me Officer. Khan; Joining Financial Zoi, our Shevorenkova, Chief call Officer; are

the available section on Today, company's of investor being after Quarter we Q&A release the our will XXXX be financial presentation be is of the discussing and and webcast archived EVgo's results earnings call Third conclusion Investors and and XXXX, outlook call. along of there, remainder call this accessed the investors.evgo.com. with at a The by followed can website session. Today's will be for

to that management call, could will the in subject materially Factors results performance. about cause During uncertainties, from forward-looking actual that are to be statements including our expectations detailed future differ expectations are risks our making and SEC filings, our Form recent Form website. our of and Factors including Risk on available on SEC report XX-Q. Investors in quarterly reports company's filings section of section XX-K The annual are most the the on

be corresponding Investors that earnings about the can obligation the These GAAP of the these note and be these will including update to found a no this on materials after in to available forward-looking call. statements of measures as reconciliation call. certain undertake non-GAAP on Information apply please we statements we non-GAAP the measure referring section website. the Also, today, to measures, financial

EVgo call over I'll CEO. turn Zoi, that, With Cathy to the

a incoming our Good morning, EVgo's a for and vehicles leading that to owner engine introduce trending to you you thank to are increasingly today. results electric well-located Badar charging It's share joining Khan, strategy. infrastructure and The and and throughput is service is Revenues, of everyone, indeed CEO. winning EVgo the superbly. excited for phenomenal of humming. operator being clear utilization quarter growth I'm fleet and hungry

As and our XXX% we revenue with on quarter-over-quarter, accelerated to and year and case EVgo's the to dispensed are commitments partners XX% versus our last third to year customers, and quarter sequentially. gigawatt the has raise deliver over EVgo our to rapidly shareholders, operational our electricity hours, pleased on guidance. been execution continues growing nearly network in the ability XX The full

over the drive and addition extend third retail throughput last the year's versus helped growth, network revenues In in to quarter, business over quarter. our to $XX growing million XXX%

are loss $XX from cost focused adjusted the operational of leverage as remain year achieving Our narrowed prior efficiencies. EBITDA significantly million on we and

EVgo added network remains J us under the X,XXX to over providers We've was milestone or exciting on the of development the operational fast This extend quarter, at X,XXX EVgo includes markets, XX first station over locations. United XX including course. stalls XX in Flying With and one over extend charging pilot operationalizing stores the site construction. stalls in the States. in operation and the to metropolitan states roughly strong of third XXXX largest XXX stalls, bringing in

XXXX. EVgo's this XX% About has over to quarter of with continues fastest-growing some Texas, in half quarter September California. station Arizona. Michigan across Florida, outside in across exceptional the Our and the country entire was this of throughput development the of the delivered network markets utilization energy translated

basis double-digit over XX% threshold These of or nearly validate achieve of base our EVgo's and our to network utilization stalls EV up returns utilization modeling, top case adoption, utilization. already strong soar. ever. algorithms. our just financial sophisticated were utilization, XX% half assumptions current underwriting site stronger believe leverage is than network stalls our A my stalls truly business trends at a And spirit planning we exceeding utilization over and from XX% selection to or go-forward on makes September, rigorous in picture XX% fact, XX% profitability that June. in With full In designed our in the

I'm strong While a to able It's call to report be CEO I'm not surprised my of been to earnings as honor last great such you during results quarterly thrilled. EVgo, certainly that lead foundation and and now flywheel the to foundational start a EVgo flywheel elements adding business in team building privilege to to witness the to that at and create spin. of

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video blog fast-charging are to posts and ecosystem. new related experienced talk and EV drivers renewed series helping charge adapt and Our the ever-changing

XX% a One success as we one at EVgo on metric their of what one-and-done started and This done at will of what we XX% charging. to track percentage have customers refer towards the of year-end, the continue showing they with came successful first get is driving benchmarks is time achieving XXXX reached attempt. EVgo's and for, one done with charge rate we a We of XXX%. and aim at now and XX% a

are charging and gains charging up ease EVgo customer speed from rising QX XXXX strong Satisfaction J.D. off up XX% experience the results. saw customer improved Power in Index, with on QX and investments metrics of JD experience of key X%. overall scores In and plug percentage such Our paying X Power points as

cost are that standard XXX-kilowatt at EVgo's retrofit a existing with potential EV rolling cool the chargers to high-powered a cables most cable players, cost supply to for qualified and connector to of with cables are a the chain. of CCS Turning eVgo NACS U.S. EVgo liquid deployment. support to eVgo NACS today which for committed required stations. out minimal connector. cables, Along charging comparable a NACS in industry We've has couple suppliers XXXX to anticipates including

their We ready with NACS to transitioning the expect the to that for well road. NACS NACS cables EVs our on automakers are be chargers before have

respect for able equipment chargers, fast pricing. to With CapEx trends negotiate lower we've to been

there of However, previously the several mentioned factors our to at CapEx are range. end contributing top currently being

eligible by BABA standards. or to IRI must BABA. order stipulates America chargers meet Build nevi America funding, First, the that In be for

building supports industry, BABA capabilities EVgo While EV manufacturing the chargers compliance for at fully present. domestic cost more the charging

about under of many these power of networks are XXc, such and portion local requirements distribution more wage grant-funded charging on add labor the for upgrade to prevailing fast And costs to more needing accommodate utilities Second, companies passing projects to finally, XX% CapEx. are nevi chargers, to or EVgo. they and as

the in fronts required To on help headwinds the the to cost innovation CapEx station. pursuing our counter industry, current build to EVgo is reduce many

will eligible charging is example, mobilized application several by and lines time and expected months by recently being prefabricated in later the a reduced equipment cost locations scalable be to and stations at honed reduce a sites. that's in capital more skid announced few next XXXX. This deployment model For in for we installation XX% design widespread deployed XX% on designed

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drivers stations for signing their Honda. and of ACURATE models Last another on with quarter, be software with added EVgo $XXX EV proprietary eligible our public Honda nearest. EV partner embed to to up will inside Honda enable navigation charging system a EVgo help network. a will their credit blue-ribbon charging EVgo's locate OEM an Future agreement to into

charger, EV partners find deal to and their quarter by drivers XXXX. at delivered with fleets. inside ] their year model Lyft, extended signed Stelantus providing a agreement significant API charge. this as EVgo's automakers will of fast We to EV growth Toyota they to year EVgo also a move goals into rideshare towards availability and our their apps, a aid EVgo of their aggressively free Uber leverage with [ start go drivers as integrate do who a Toyota, for their charging electrifying led

its beverage third higher two are network double signed third company national and And BXB PlugShare, on the than counts Throughput XX, the from remains last inception PlugShare the EVgo is the largest of site have second and allow a quarter. is Hertz our more sites EVgo since And EVgo world to to more in PlugShare the users charging X.X fleets vehicles network of an in million for for vehicle depot reaching between the site software. stall public in operational, a to public to charging in community this be our charging and easier launched EV to within fleet XXXX. charge EVgo's between pay a to expects with on their Pay proprietary drivers they year's reach grow. January continues go agreement quarter. million management our business, Yelp site to users app. the compared in XX in all charged and Harnessing rentals. with Optima, and using food California, world make EVgo These X.X than company fleet across quarter our Also open check-ins size. fleet autonomous PlugShare Hertz typical Xx registered EV networks, third allowing October, across

turning capital. Now deployment to of

similarly the site returns grants ahead our The to to and our going allows Let timing to he our us noted the EVgo's just of team. puck keeping in capital EVgo is infrastructure and that model skates capital business times. growth the integrating to puck. legend Incorporating compared was but times great EVgo demand where market invest skate of I've our the to point availability ability timing pace of of hockey torque to it me high-performance and didn't to adjust while Gretzky, schedule where lead reemphasize famously anticipating shareholder build the to our EVgo's the circumstances of deployment many while I've agility to engine growth the speed of as mind. match to we was, often strength Wayne you a new our and engine and to build-out. of successful, optimize front who be. be management made

A regarding of mix. non-dilutive of new capital. plethora sources And are in now capital the government

and of loan timing in to low-cost our amount is predict year. The available significant likelihood progressing becoming well. with this sometime First, DOE with precision. of difficult to EVgo next potential is application the latter debt half the exact of for a

of start credits believe Second, XXc of significant charging tradable tax XXXX, the to be cover through to infrastructure XX% CapEx will for of up at for are we and a EVgo's available likely projects. portion

the so transferred to first may will the credit the full like For monetize credit EVgo be time, be that value. XXc companies eligible

As U.S. a quarter, the teams result, final provide go EV credit. certainty finance past and dollars months In implementation. to prepare over have worked the monetize from Treasury to EVgo the of years. finalize the is EVgo's Department forecasting for in benefits to tax the annually millions expecting to the our of rules coming We're needed in plans coming

funding that public bureaucratic way. through hoped continue to delays the programs to awards have third, and nevi other processes. government And months due and arising X to albeit come state expected roughly than might from later X market EVgo's

leaderboard delays above, that be fund EVgo for delays. XX% nevi meet those that the there's has CapEx. will build-out of XX% estimated funds may we frustrating, our only date, hurdles. pace potential to that financial adjust of our appropriated mentioned be for project Recall grants While the dispersed. announced. over of bit where doubt no to the a indeed account projects apply eVgo up at to top can Recall And winning the grantees, the would an as is of funds And amongst Neve to the

Some meet jurisdictions funding program accelerate don't expansion. or available network not our of a criteria. focal it's point, nevi to remains the state public source only [indiscernible] EVgo's designs

eVgo not well. the at with experience growth decade, only have and other build local state for this agencies but has that public we a nevi, programs level to through over as upon For grant and partnered propelled programs continue funding our

sources financial be reminder that the direct typically a funding diverse These investments. complements external As EVgo's the of of significance stacked. funding can

receives CapEx $XX,XXX program payment. is part EVgo's For GM example, of that a ] Ausol [

we locations some locations well funding the a nevi some tax other as may municipal awarded be may with addition, The state as grants XXc include OEM funding, In cover XXc the or eligible In into our fuel next also to for our or introduce credit. cases, reported stack previously. of multiple a of that accelerant majority financial Chief with with CapEx extends those Badar for Executive that, upshot business. well The and of Availability sources genuine picture Officer, are a geographic pass this. more for and engine growth what sources makes EVgo's sheet to hurdles to grants the you profitable, stations to diverse funding is XXXX, ample combination investment station. consistent I'd EVgo's like EVgo's footprint balance the EVgo's vast of current funding And Khan. that nondilutive in

Cathy. you, Thank

successful XXX,XXX in past you company can The leader Let over in want renewable me states, met first to being in long Under leading charging or company EBITDA public, fast be from EVgo since deploy years. your Since public and way charger company number company I come under XXXX tenure a is in energies the EV team congratulate year. on it From over company to you XX raising adjusted the to very first XXX-kilowatt first a has a Tesla a integrated leadership, to serving XX-person EVgo firsts, the what leadership. X over XXX% being has claim a exceeded private revenue been to this your customers. of with and also XXXX, XXXX. EBITDA matched EVgo the guidance the said. having and initial delivering first the has you to for charging and Connector commend revenue a

or we that And market through climate for have EVs our at also the on the change I'm be only CEO years, that growing exciting of I've company a is of than up return. the states rigorous months, year, California. the underlying rates In EVgo, impact most by double-digit faster past like outside chargers mission I've past during U.S. take is on a of see throughput growth motivating. just see will over member to Board achieve long year by to with for is from take the a across by and for growing assets network fast-charging that as And as today. slower past and XXXX, term It over vehicles role network therefore and the I'm excited X term, in BIO mitigating road DC accelerate discipline building Xx impressed recent the the been while some building this electric on EVO's time overall the over adoption future. employed network XX% projected growth metrics network the quarters very past exponential is a denying very in there in key XX,XXX the the in growing focus to XXX,XXX entire faster in growth faster no criteria September. particularly by short continue we that may XX% utilization the are underwriting in X.X the mission the of notably clearly seen increase needed the fast over evidenced excited observed at accelerating by the to

growth Over refine the value and to chargers of compelling and top the lifetime continues well-located cost underwriting we the returns fact has that fast the further grants exceeding that permit, build the that past far engine our utilization The and greater are decade, operate that the for have utilization those EVgo than of our has increases value already growth win to of capital assumed a chargers. built at site, very excess capacity believe growth annual the engine engine. is required in of cost stools our a at that the

partners, on the particular improving I'm recent in the XXXX. I'll the reflected and earnings vendors in on I that now overall Olga guidance. details satisfaction more points more to all look share metrics in in to year. to most across and over well the customers, call scores X look on future the also the over percentage full tracked. year to improvements as performance coming update see focus the EVgo's also meeting turn experience call of customer been months. Olga? of as a delighted has past . Power our shareholders early J.D. quarterly to sharing as the EVgo I an my the thoughts forward XXXX to next forward

a strong EVgo this in and which $XX.X quarter another increased increase. grew second core million year revenue delivered $XX.X $X.X driven third increase. expand and year-over-year third primarily you, the charging Revenue quarter from driven Thank in revenue. Revenue revenues quarter million Badar. a last was year-over-year the eXtend. growth by exhibiting Retail in was business was million in the our XXX% charging by quarter growth retail charging XXX% to year,

Commercial 'XX, and to of continues illustrating XXXX. QX this from realize grew percentage profitability. infrastructure, utilization. $X million XXX% same third year-over-year, on the charging year-over-year Adjusted the by revenue increased year-over-year to in the G&A quarter its to XXX% the $XX.X moved high Adjusted in throughput in last period. way time third soon as $X.X the million XX% from from from year. operating of attributable in costs over year-over-year resulting people third quarter quarter last and million improved while year XXXX. in by ongoing margin this revenue XX.X% increase. a processes revenue And over in third the revenue increase. EVgo year, has at leverage change in to in third the investment the larger 'XX, increased was of quarter compared a $X.X from XX.X% and million The quarter leverage to its operational quarter Network Exhibiting eXtend network to year to EVgo amortize has improved XXX% That third network along to in was existing when QX gross a fixed base. XXX% XX%

QX in and leverage. negative $XX.X as and cash EBITDA XX. negative 'XX equivalents million million of million restricted Cash, $XXX growth revenue the in 'XX. was Adjusted versus was QX cash Reflecting September operating $X.X

$XXX eXtend the We of Four construction at include in stalls under added during have program. operations gross build in at as and as operational stalls XX. which approximately in was to leverage. J and around QX, also continue total new quarter under the under was GM. ongoing X,XXX million used were in to quarter $XX million September the over operating stores execute $XX in reflecting CapEx pilot we million plan. third our our gross operation realization XX with XXX our on eXtend third first of total $XXX.X spent Operational CapEx [indiscernible] Year-to-date, CapEx program XX locations we CapEx. of piloting million. X,XXX network our $X.X including million In were end quarter. over Cash so Installed Including around

vintage recovered $XXX,XXX. XXXX service $XX,XXX for federal, recover through expect collected we discussed XX% which EVgo remainder and expected funding, in to rising brand to a wages project prevailing collected GM CapEx roughly for vintages, and state and XXXX. been to that and credits. $XX have is awarded costs $XX utility of with labor grant half million. of approximately of by accounting EVgo's million as receiving the XXXX its Cathy approximately the QX approximately The XXXX combination stall EVgo per earlier. of requirement and is grants, Driven payments Between XXXX pay stall of to of [indiscernible] and be local remainder with has funds projects approximately CapEx gross interconnection

business, back EVgo through us such in the selling areas million back properties. and locations of in prime U.S. urban gross $XX.X sold the estate we beginning real and quarter, leased Hub part our of proceeds. As locations access entered leasing in fourth In resulted to get into key to arrangements, Fleet allowing the to of

more total this highlighted, compared to significant As throughput to are last create We was Xx this factors quarter EVgo's several believe year. compounding updrop.

including quarter Foremost compared of the EVs. growing estimated is growth X third at growth, year. EV is DIO in to million EVs XX% of the non-Tesla last end U.S., at DIO

market. addressable the of size the in increase an is Second,

Nearing to miles wherever more VMT, engine or needs. vehicles growing reflecting internal More with combustion recent Miles go. in charging they equals according a data, travel industry Vehicle confidence charging availability is parity Travel growing. consumer

CFC is the We that percentage believe charging also as increasing. charging a total of

more charging taking and drivers charging accessible is to to becoming of affordable charging. And increasingly without more top-up become with place. have fast EVs access convenience As available home

Fourth, from network, ride and electrification superior EVgo travels share the enhanced Uber at mostly and an on continued miles average is on The fleet fast driver is market driving is Alside. locations experience EVgo more drivers. more rideshare average Lyft expansion share X customer Xx much usage of to reliant commute charging arising Third than and infrastructure.

new amount the efficiency. Fifht, And enable of hours finally, a more is hence same EVs smaller market in flight go time. have throughput new hitting they higher the to of distance modular That same babies. rates EVs and the as charge lower acquire bigger

EVgo individual which OEM on traffic rideshare categorizes the our automakers. revenue, is includes derived off programs which and public vehicles; charging network which comprised into Retail, lease, drivers three credit categories: autonomous Commercial from charging drivers; of noncommercial and from is

Chicago up than Miami, Dallas, Atlanta, of is trends markets Detroit, the a customer major coast-to-coast joining markets discussed XXX,XXX Raleigh, truly over that quarter. of California first greater EVgo per XXXX. from of to membership is double-digit those It as reflecting Philadelphia, over Houston, by charging the San is XXX,XXX. the our active usage accounts strong our Francisco. of January frequent historically subscription both high customers. the drivers With network quarter on now L.A. X.Xx or categories customer and XXXX. delivering the Over such San has on new delivered third Diego XX added This and revenue and in earlier. value in plan. is customer, programs membership EVgo phenomenon. throughput, We driven monthly three over our per hours customers the retail derived third kilowatt increase total utilization more EVgo Retail this XX% XX% Average quarter. the EV are Bringing to was markets

growing ride share Lyft gigawatt this for largest We rideshare in XX% momentum needs. to for continued powers with gain EVgo partners aloan fleet up throughput our EVgo over of estimate accounts traffic that charging our accounting and October drivers year-over-year. of fivefold XX% our X Uber to quarter, are which Uber XXXX. hours

the right, customer and continued leadership adoption With our relentless in the the experience. focus the on EV a locations of attractiveness on

the building business superior growth foreseeable quarter-on-quarter future and EVgo this in their We to sustainable continue financial expect trajectory profitability. model

on guidance to adjusted to full year million year negative to to full EVgo range And revenue $XX EVgo guidance full is raising EBITDA is $XXX Moving negative its to $XX XXXX million. of raising million. our $XXX of a million guidance. range a its year

to end operational to turn have X,XXX questions. under X,XXX fast installed expect operator of for of over total construction, we'll eXtend that, the to including it XXXX. EVgo DC And We a charging in by with

the Dendrinos [Operator first with question Chris Your comes of Instructions] from line RBC.

Great. the fantastic Congratulations on quarter.

I to well, and reasons throughput rate, here, looks as guidance faster on your in expectations. like accelerating guess DIO, impressive than rates internal utilization the maybe a and start EV even here, demand that. very than noted, start increase, some you is it it's highlighted as you increases growth few driving noted Based stronger perhaps the

Is there guess, maybe you plan and on process demand that? you're utilization development I can shaping the and So desire to in rates are locations the particularly thought comment how about thinking around certain accelerate growth where going forward installations how that strong. is

census of trends network got into Yes, account block these because the down sophisticated that a pretty planning we've takes all tool level. to

particular we'll are compounding to utilization, to So network. the growing and overall about the that continue of kind quickly. where of accelerate in see more be the able yes, sort And remember, we've locations headroom existing demand still that on we're of thrilled increasing got factors we tons

time the XX- lead live. doing So we're when to is stations future XX-month those a what builds is there's for we go plan

time So to lots we're about trends hold thinking market we've going are take most. as where those of got

ramp disaggregated capital a it's our based a investments can of on investments up particular particular the based that locations is that we disaggregated in Gap] up or we it's capital model beauty is tools. it's again, in down model that that locations on can ramp So or sophisticated sophisticated down [Audio tools.

maybe Lancet add tool. it's an that, was my And to just iterative since in Yes. preview, on Network

plan future the the back optimization. moment, into of every feeds into network new fed gets and So month data it every

based network on cetera. recent this to but when a the back the observable and always the and increases utilization So did ensure of we as most recent most yet see, like that we able trends factors elements other They and observed recent learning network is plan before including that. et still go sales, just plan such increases, we

So been our always there's nothing new method here per as se, such. has

on Got I that opportunity concerns guess the maybe I these infrastructure. OEMs the perceived investment the be of just EV lack one general. just negative. driving accelerate to it. looking more both narratives of extend charging would of address as access infrastructure chargers, there to And signal this And been you that's well but be And demand might around up reasons think it an has trend, think EV partnerships from to for this is demand all following out the then quickly. line One demand to in in at as probably the this a business for could

comment urgency So that any is of any any conversations can the on there? OEM potential partners in kind of having just with sense updates there installations? to of their change you're you accelerate And

got leading electrification look, invest are So the in made look, trillion the OEMs, we've of like and to over continue can commitments transportation. relationships, $X all you see, they've cumulatively with great as they --

by XXXX. eye on to million the America EVs on they're space. We're going towards. Everybody's XX this So bullish this road got in have over

particular. infrastructure the of GM, them. for So it's partners charging Honda, ] continuing excited demand to all very [ charging fast which And just about charging and this with reliable time we're closely We're for -- in accelerating creating fast new Dilantis work not are convenient, the with announcements ours. very,

good. all So Chris, -- our it's of from sort it's all it's perspective, --

comes Your with James question the West ISI. Evercore line from of next

ending Cathy, forward you. with strong Badar, your with look on third the welcome. to congratulations here. And quarter tenure quarter And a and working solid very I

James. Thanks,

nevi permits ease accelerate of that So got to to kind to of of I has ready mean are spec-ed your -- guys kind working placement utilities have with a already you always to got their Are states sites just is that I touch getting see I think of been ability go, awareness. of starting of which somewhat? you see is we've I ton to more program, increasing a to and are that Are the things delay. and ramp chargers know but on trying We've and adoption a starting the you the lot putting X wanted up charges.

almost classic and build station, fast question. permit seeing you've or governments thing and them. The either Yes, is ago, seen a maturing. I them. them I it's great ever a other X received in now When started have would have seen years of them them all sector think to beginning that Look, almost see work local you are this had are no and charging cited to a have it's a done.

well -- phenomenon. So and a this truly is national because

is So easier. the The are this. quite becoming getting bit a with familiar utilities permitting

for actual the on is with to compensate tent because them the in awareness, a of done a right process pole for of -- of building transformers bigger utilities, not on bit on upgrades. still but we've longest funnel. still now the a just we because that bottleneck the lack is is The a What there's service have

nevi of us, of pacing So to locations you alluded that prospective that to their deployment pace the line much in accommodate And this We've those about programs the be in it's to done. to all when question can just for got together would schemes, getting positive utility question. a NPV of going available utilities your on planning for going when are matching XX,XXX that and are working EVgo. to sight when become that sophisticated and provide make-ready drop more funds we've

like -- I would again, two charges or EV say years thing So it's thing at a charge I I X started maybe when that, single mostly ago, one still to guess other is at was go trends. location. not build about an it a overnight

working Now have a we're now deliver. center are our flagship going six stalls is There and bigger demand GM an locations to or stations lots, with we're is also in appetite XX going now store location. parking that creating be on And that's sales grocery shopping right to to per now what so actually standard and above. parking lots,

So is but together. maturing, just higher I really, happening the it's really that's demand actually all think market classically, exciting, all is getting it's the and

Right.

follow-up quick Okay. for it. a Got maybe then me. And just

depot large how you depot a this you're many building one. site mentioned point sites, for How at the a you is sales? On second

the location. depends it Again, on particular

and looking XX of these typically what for at between kind Somewhere is XX sites. we're

JPMorgan. of Your Peterson from line Bill comes question the next with

forward [indiscernible] Similarly, to and looking working you. luck Cathy, good with next

initial is on question the First disclosure.

costs the is muddy more some be new some this break the had can the into It than across actually So apples of in on thinking of point guess, sort about materially comprehensive, if you sure to these it's looks apples. graphs disclosure not project But competitive higher order down of to year? double. I like guess cost installation, and the information Tesla. nevi you're awards. how elements hardware construction some being to but Pennsylvania I'm I And other and around would not EVgo

Bill, you're I right. think

But build sort Olga, isn't our think want chime and I we our a of what that apples-to-apples. . materials? necessarily of with to -- may in you like breakdown CapEx it of

stall. the $XXX,XXX our there average, per the sites, will for That will minimis, CapEx All sites, you everything. all costs inclusive on all average the that. a of utility for of equipment, is de types have but have some some So on right, associated with lot you now is labor, right work be

labor. of other of this equipment, XX% XX% roughly So

We what's don't just can we for but concluded is know us and else hard and missing We We to to have seen know it's at don't little it apple-to-apple, looking it portion that's utility labor for compare we is for we're hard saying to on truly half. looking is Tesla it but us absolute number numbers. components, what We a CapEx kind equipment, missing, [indiscernible] at and reported that, probably comment to equipment include a do is bit it's full utility example, and on -- an more don't of very what overall comparison. know to of included missing. believe XXX

to say just it is build and for second, to Suffice But business looking smart decrease that of let's to up every innovate. zoom is materials a Bill.

why real that's that's to we we're going costs we're so And of particularly time. announced doing save and decrease lot a skid excited this prefab like just that

other getting. equipment that lots our a going to are road an maps both benefit be of in there's things labor that's So benefit. on And

So we're -- remain But and you we're innovation our will map hear excited about competitive. about those, I think, from very Bader road year. and to very, Olga next

helpful. flywheel I and model But this utilization working think higher. first kind trends turning take to trying the term, be the here, of it's great think share, about of about long this That's are guess throughput if effect. about to drove we network And stalls installing letting all, more going

next to being So if year we going of about I than beyond, in how guess and your think expand Does the should XXXX faster installed. and we ports about XXXX think share EV the will I drive plan year policy dependent support And flywheel. dependent to funding? be order in next loans this on on how market really, ultimately, DOE growth other in guess, or this or

Yes.

think gets we to start, really a maybe when CFC. share of dispensed percentage the level, we market market always So our hours, which a high think about kilowatt about at as share,

be we network our that we ports. optimize or than when term, plan, always So the of term number long do short rather for market it share

So we is -- somebody not put to as are not else ports our many as many as ports goal average. as

highest Our ports goal invest to locations single every of put maximize the is we port in it. the utilization profitability the to in

this, deploying. -- filings on in won't we're quarter, how in kind of is how probably else, we what looking perspective, faster this everybody hard else is depending That's have time from or are and to the growing I commenting not our we the we DIO What slower. So you've observed be like what terms metric we throughput. of which with faster reiterated than -- going don't that at. just

people various with gaining the last of our quarters, has market versus gaining [indiscernible]. gaining DCC we've CFC in share. segment CFC showed market market we So in share share overall and been segment. The been of extrapolations the been terms few percentage are the charging gaining We've that

without sum our So taco helpful? look that's we ports how and is at we're of at business. looking the The simple that because utilization cost, metrics those Is directly number they profitability. is a

I was is driving terms to sites. driving helpful. all mass, non-California share critical But you need about I on mind think sort in sorry, these markets, It people I these guess markets. in nonetheless, new would to have still, these I mute. Yes, talked mean of and you of

sheet? how I own depend much other funding opportunities versus will on So guess that balance your

From yes. that perspective,

sources, and financed partner sheet, EVgo so -- business state funding -- is we expected and state SoC through on be balance programs, a So include to cash of funding. which combination federal combination municipal

network network into into plan. network sources as of XXXX account. remarks, XXXX, ratios plan this the baked bit So in through spoke The going earlier be forward. takes vintage And the CapEx of that a We assets for is my I about plans. on the we already spend financed mentioned example, little XXXX the CapEx, the call roughly expect prepared similar it will XX% on for

it's the source for we've in DOE before, to a source beyond. a as XXXX network in of also, plan really is which which We capital, priced mentioned of a loan, would and already optimally of capital, process XXXX, us nondilutive plan underpin allow very our

sources various funds various will So a on we are Non-dilutive cash constantly sources, about programs. thinking and always grant balance financing be it sheet. and and combination of

comes the next question of Chris Needham Pierce Co. & from line with Your

where margins gross where as kilowatts, margins speak I where I equipment was of and it exclude were margins. a are level drill equipment you is now positive? we this of they know to But possible of -- roughly network -- to . gross sales. far to could get kind gross need could bit as like And would future? if EBITDA they like hoping the throughput could we of level less a EVgo what selling on down are down go be because sales, in quarter adjusted

me start So let gross margin. with

saw are -- are amortization, lot -- expenses. last margin. noncash at the of a has gross so so we an So versus it's the we quarter margin looking The GAAP and and last we you're managing quarter year. versus of reporting a business, quarter this we're expansion adjusted we gross we're at margin. clearly are this bunch When looking gross That's GAAP looking depreciation number

which caused to the exhibit is which fixed cost. XX.X% net some our of reported And we allows network, effect. the So higher utilization fully by leverage on amortize

So that. that's a on kind comment of

number, adjusted margin, gross is to report a of you depreciation absolutely and every number gross again, that. But margin business. to a amortization seeing a to GAAP revenues last measure quarter. why quarter. It's probably That's we revenues, higher Xtend a a at right. better That last of you're of number the attached had while have seeing it look you're than quarter a extended the single progress lower -- them. can the don't kind revenue consistent On portion mix. That's We we're

to approaching EBITDA when revenue of of the might revenue. year, if XX% our compare this about we from you last revenue see as of has tremendously trends. G&A recent clearly talking come you neutrality, this it, a -- quarter percent Now adjusted We versus XXX% quarter we're from down quarter

So much it's about going moment I market couple we that's months as and exactly happen fully right years. a clear in path market coming the of probably to When illustration The that we're be as this talking will the exact to next that. now. that to happen, the will the in in profitability. And can that's the on update say

Okay.

on margins in -- maybe level, the -- it's business? the now. is coming then way Just at that about And You've sort on those years, got gets the that about later more in sales going of that's to high as built a later something right be said, in you think going a half the give just to to going first you're next year, partners And or out at to the these electricity kind right as confirm, you're to date? that of to drivers. detail equipment

Yes.

So the...

of the not to going to the business? work way that right sort It's together... about think Is

combination of factors. a It's

rates, is fact costs then dependent country. there and different on on our electricity dependent more But on factors. are other efforts locations our So is the are on which It's across widely is pricing electricity electricity the favorable. dependent on margin absolutely ourselves EV are network getting margin of composition usually because

AT&T software charges, overall you our and cost Verizon costs. goods network maintenance, so into connectivity of and so have and non-energy call You costs costs, charges, have sold forth. on always but built some as such energy and center

cut what and the nature ability a well. that per on costs basis that store the to in margin maintain our margin semi-fixed costs a driving items those as or So driving the would is

the it's and all about price costs. some energy you So about not other have just costs, it's not all

pricing, as would able right the on is the think margin, way a but network. are it we, business, for also inform to at energy looking the well those as margin. to optimize looking costs about making That semi-fixed So at sure that

as So gross up margin basis. hope. We quarter. this all we adjusted The had right to the is utilization margin go XX% expected utilization XX.X% now,

expect the you see margin, that on should number So with expanding network. utilization to that high

question from comes Andres line with next of Your the Sheppard Cantor Fitzgerald.

might miss some seen of for to strong question Thanks how into quarter. on endeavors, are missed. there working Ford, Mercedes, just morning, you. will OEMs that your term. even Curious into thoughts best in the be degree, But and for the [indiscernible] you on a We've looking EVgo. in translate Cathy, thoughts, some a future your the for large everyone. that get at congrats earnings out charging talk we and wish this you to in particularly near Cathy, the industry to maybe EVs certainly Tesla, Good about all the we'll least and forward industry updates I slowdown maybe demand with you potential call. the your EV well. in in as

I'm And quarterly Andreas. Thanks, these well. on to as Yes. calls mistaking you

giant to relative from what's some yes, is slowdown modulate a talked is fascinating is slowdown kind So that growth. about that is vertical of the

like, as a would going and So million sector XXXX, we're "Oh, next still that by by from all my goodness, end to viewed year by to X million gracious up slower XX it looking at X EVs XX% other so million XX% million in of them. to X market. XXXX. fast. the growth today, industry And mean, accounts, I to for any be We're

is So very sector. fast-growing remains it a -- it

if is, more to. again, more I a little can do pull bit on a down actually The One deploying if Gretsky the a love truly, metaphor. actually little need stations modulation bit. to just back mean, quickly bit can slow I to little a it's in we more just of we bit lean that go little going quickly

OEMs make models the And it really a XXXX right. for EVs. of still all of little like building are bit that. it's so whether hundreds And There's is the and is of denying to no slower, up us, capacity to

trends of hungry XXXX down. doesn't are really, So and infrastructure of overall guess need fantastic in to provider right? happens trend by what be it sales worry the strong. So charging saw an macro increasingly us. that essential we what fast are for utilization sort as still EV rates people a now. be. of right The leading set I on place a to is really because just is evidenced terribly And high interest

X-part a appreciate that. it. And I super a question. helpful. of Got follow-up, That's I have a maybe all as bit

would -- most slower us to that deployment of with all has in been like. would So I agree nevi, maybe funds think of the the than we probably regards

remind if So run on rate I'm current your us your liquidity just just curious of you with hand. can

fund I into the think in you XXXX. sufficient past, to said business the had that's

that? just Or I year? inflation also cost? if I with to how there fluctuating could a to there. just wanted just thoughts confirm to your higher get And interest rates, and step-up that Should So I'm get of be somewhat add, energy thoughts to you wanted then curious curious considerable ASPs next the on in see your

Yes.

the the talked and secured cash call and grand the some with we current to combination of just on So already confirming of collect. fountain funding, balance the on with which we sheet earlier we're about with the

until sorry, repeat moment. -- any We question. XXXX. and do need the are well second that well capital financed into We extra On don't

Yes.

the... part second The just was around

The energy . stuff.

expect might you . what of kind rates here. Interest

the So interest about energy cost. is

and utilities, of very distributed are country. customer C&I the we're we So across

any wholesale we're nature. not utility to is tied So volatility due tied and the distribution not good we're that thing any particular to to

to of But time. tend the our on costs same utilities of distributed whole the moment network, customers. So the network its nature of some at at because it to pass the do of happen doesn't level

in some So which increase forecast in networks assumptions and network. the have the We're increase. it it sophisticated parts probability happens network and the of on on weighted which the will constantly on pockets monitoring parts

and these times approach time want customers, which everybody of location-based and popular discussed that price-intensive some have remind whatnot. in sophisticated we terms price we have not I times a in we've where and can customers other -- that price-sensitive can what those more free think is how increases less to use access to to We're price and we and for we Now our customers. much charge calls passing there our outpricing a also multiple we very customers at and back we're trying absolutely regulated to allow so are subscription ways on price, maybe of charge of

those away we're much pass our we're we if able see right pretty seeing because on consumers even margin doesn't into fit. as increases that to So erode it

Your TD next question of Gabe comes from the line Daoud with Cowen.

a just get Badar, CapEx trajectory considering and Cathy more I actually hoping to from cash spend could really Congrats quite that -- you both. across bigger to the And could Would high color assume now? to in do our sense decelerate get when lead some trajectory rates then CapEx of can to the become it 'XX, and problem? utilization of just portfolio. of is on your you here? we think it some long a and love Is much preserve how fair was a times are right impacting transformers in maybe on little

now. will about talking various deceleration obviously XXXX next we in plans on our XXXX call. kinds talk about metrics from all but of be -- is We'll Yes. few XXXX don't on think the books, months I a But

is Yes. And transformers And transfer reality of let the me just that are account The take isn't fact sort thing. slowing the time. us just add take long thing we going transformer a down. transformer on the to all of that the

places thinking service we've our XX and required, are of XX make any are upgrade, that where So We lots to most for of think utilities of right? I the them the -- and think have in I do give build can kind into orders it, before. mentioned months so actually helpful go we'll there our meet every being which require places because a to sight as described. we XX a of game for we plan we we with single So utility and have utilities, to they line we're building, plan and as service we're now where we're ordered I months that transformers for upgrades

Some of be Kish, are others. machine agile. in this business. our get to going Dennis we've the the is equipment than the them to best under got extremely It's got that faster of direction COO, their But

the utilities of build so utilities like, to our well. where around were are that to install build able their to parts shift to able ready can we accept -- are are when And as to the teams when we ready we it

very a good we've what sight building. very in we're So a got funnel big of line to

item. mean -- that's It's not it's gating as So turning we're a on many just that not not as that quickly. may

I a few You'll to "Oh, be, Well, from thought, remember a all start maybe years ago, it's couple this plan it. down in that's we to X yet and it get now months. let's of okay will not years, energization. because but there for

Okay.

about some I Is there progress California? there perform Okay. areas a you to a just charge Demand of maybe That's making I in helpful. follow-up, leave was update lost maybe heading. an demand then reform, train talk guess that's and outside just I And -- I'll as new thought. And there. jurisdictions on little of where with it my could bit

Yes.

rates remember does don't does that sort EV active. we're But jurisdictions or again, conceivably dozen top reform, of between head off the a a -- we've dozen sunsetting. So the interventions. that team got are of of advocacy and where that regulatory great my charge extension utility I half half And our demand dozen all it and a of

boil things remembering those on off to underway. take on are hand, are but rate those am happy cases again, outside guys back I to not and you just get the California. and of well All notice where that on Gabe, of

to back There hand things are like to at closing questions remarks. I'd . no further for over this Cathy Zoe time.

is success, leadership. This my for in under and financial and Thank progress look We interest much. the EVgo invested final EVgo. and all financially everyone. attending, update. and remain intellectually you, our while with celebrating to you Thank quarter's earnings appreciate your witnessing so I in call you forward Bader's emotionally I And this is business