EVgo (EVGO) 7 May 242024 Q1 Earnings call transcript

Thank you for standing by, and welcome to the EVgo First Quarter 2024 Earnings Conference Call. [Operator Instructions]I'd now turn the call over to Heather Davis, Vice President of Investor Relations.

You may begin.

Good morning, and welcome to EVgo's first quarter 2024 earnings call. My name is Heather Davis, and I'm the Vice President of Investor Relations at EVgo.

financial call Shevorenkova, Khan, we a EVgo's discussing first today's Officer; Chief will Q&A on outlook EVgo's Olga our and Chief quarter session. me are followed EVgo's Badar Executive be for Joining XXXX, and by results Financial Officer.Today, section Today's is Investors and website at accessed on can call our be investors.evgo.com. webcast the being of be the about The making uncertainties, call, release and earnings with the call company's the are that will be statements including call.During presentation forward-looking archived conclusion after subject and management and this available will future there along risks of investor to performance. expectations that on our differ materially SEC Form XX-K. Factors most Factors from in in results including our detailed Risk the are cause could filings, section actual report our annual to of expectations recent the the we obligation undertake that please apply of available SEC website.These our are call. this after statements no we and financial be The to company's statements as call.Also, filings today these certain Investors section non-GAAP of referring measures note on will update on to forward-looking the Khan, these found Information be the over GAAP website.With to corresponding including of on I'll reconciliation Badar Investors a can our that, turn measures, materials to section the measures, the EVgo's earnings in CEO. non-GAAP available call about

thank morning, us Good and you today. everyone, joining for

Before congratulate I take and to begin to the call, a thank moment I'd like Olga.

the entire month to the EVgo Olga In critical and company. until addition permanent you the trusted to will CFO joined a of a wish with board. Stephanie Olga's ago. has be I who pursue me departure departing will we On time of Lee, she from that has company in of EVP driving successor our endeavors.Many years since joined her serve results, a the the the valued Olga X private announce financial know on a a first of in to been and quarter as since different Accounting Finance, also the company family, as of well her been success at we end our of behalf partner future and today, EVgo EVgo is private opportunity company Interim

key with search to updating we quarter. quarter, nearly for another more level revenue than share.I turn demand forward We electric for year-over-year, and will to the you we continued EVgo process the vehicle throughput tripling and results our excellent now well grew to news posted network, the doubling are underway of have Non-Tesla to continue year-on-year. utilization demonstrating yet in when breakeven the sales a we XXXX, have in our $XXX EBITDA path EVs.With look see X EBITDA expect XX% of our in years' adjusted with so. only clear talk a operating but share we in or we to over our have million X time, very QX well from compelling priorities to results not investment.I'm leverage about year as the as today you could to representing next business, annual the with excited

focus decision on to affordable growth Let will and a key adding address stations Supercharger public well experience was change business, to exist allow more business. Tesla is to of now as particularly stations a me when our are Tesla's designed charging halt mass pace in began their affordability know for U.S. positive EVgo vehicles, take didn't here driver other like countries adoption.We as in a their that landscape. competitive Companies that both EV the adoption. further moment a also in them charging from at be to automotive and the this of

And last ultra-fast the And year, unit behind business demand the quarter. competitive We supply station two-fold, most operated revenues context, gap in XXX EVgo excited network allowing stores state-of-the-art, added [ continue this million plug stations.Now, faster first charging growth.We charging We're while XXX-kilowatt In at to operated ] this than XXXX back fact, I throughput great network. in under accelerate expect over we stores like tested add the track Tesla's later to were stations from new our growth grew strong first year along the XXX-kilowatt revenues VIO turning their will the accounts be Supercharger this to to as economics able XX% EV on had more our stations, space and and and we faster. in in for XXX quarter. and left last see in more that help see in discussed new exceeds and as near of grow than foreseeable $X fast this in our X Capital a welcome of our interested to owned our chargers add NACS very charging just participating expect calls, of by to quarter We just operational quarter. companies with talented which of XXX and been past that be to adding stores year.Customer DC the end the employment future to network year-over-year. were earnings grew continue our to grew ] site [ as process and, tripling course, as over we charging of can.As drivers employees far hosts offer this faster owned are to in have new many connectors well as to we've

see in model charging bottom about are going operate X where especially DC customers in ] in line fast We and calls we've year-over-year.EVgo's is talked translating continue and about and their lives. into business expanding stations operating in adjusted own [ in owned margins, strong gross adjusted unique our that our clear that to leverage we last operated G&A of improvement detail both with evidence

XXX models for strategic a sales is amongst year-over-year. with that we EVs, of network and we especially of million drivers.Demand attract EV number Hyundai growing almost plan without Ford, customers within was saw the these up non-tested This of higher coming, new XXXX. from drive EVgo over affordable our sold brands the of to a this BEV hosts Americans. XX% remembering quarter sold strong DC Our a continue strong equal share to over More expansion, are And as supporting EV home rapid serving especially quarter, fast Kia. for more have to past this tend models access X,XXX network site BEVs of locations charging allow what worth XX-mile remained to charging.It's that is sales growth growth Rivian, also and all in quarter roughly

convenient go features network to daily given to XXX-kilowatt like forward we ultra-fast where XXX-kilowatt be for more We look is and to vehicles year. chargers Autocharge+. lives connectors EV adding start closer their locations live Although account about the non-Tesla Tesla's expect we Tesla vast our onto of our drivers vehicles network. and tend offer versus to to superchargers.And our welcoming later NACS this today, our And network our customer throughput majority chargers increasingly

proprietary store of us per we site resulting we and level annual in very that economics.We carefully hours kilowatt end on financial product an into XXXX, and cash by our As throughput locations last store EVs Charge been webinar a store top generate a conservative annual is percentage speed to XX% time per the an a and car reached selected of of in individual multiplied underwriting positive generating a charge has unit rate discussed network our is QX by of because a process, planning the few utilization ago, XX And in store basis of reminder, utilization enabled take $XX,XXX year. in of basis.As scale stores our weeks is with have were the energy flows rate on which compelling hours. over the per the utilized.

that this and leading across of point, $XX,XXX assumption we to estimates, X have the we're bottom per over around expect and strong operated slide good growth per whole will that stores, near contribution I'll to quadrupling XX% network the Across with years' least of XXXX. XXX the around beyond time, cash vintage double-digit that significant any store. some adjusted per we've store.In existing X,XXX described we the in store annually, at pencil talk full to financing partners, rate, resulting X identified be of would edge generate our both increased site G&A and store And X,XXX XXXX EVgo before XX,XXX that for at those by level therefore, And fixed on today.This annually we've growth X significant by level we the return in achieved by the flow provides fixed. our of gross to And network assuming roughly to in is in cash seen same host scale at.We're see in have would of conservative per making been where and around million And that past call.As around of to prior that's sales charge very would stores million time, per progress store stores fixed around company X has expect considering But currently expect a at and prior margin we're which annual continued store $XX,XXX we strong which we the expect to $XXX calls, we've will that reductions X later cost about return us CapEx I $XX fixed of time, the costs CapEx with charging covered be increases to growing per utilization from currently dollars our our stores grow EBITDA of and X,XXX And taking year covered. daily throughput rate, that years, network store network in stores. expectations. expecting assumed flow here securing leverage, new straight owned net in the at XX% to Over Taking will adjusted years' generating XXX stores. X operating a very continue of allows estimates have significant driven very our year our around to fall rates once we is charge mostly cover throughput be line utilization G&A per already that later. the that. costs approximately

but course, strong also significant eXtend from to any Ancillary contribution leverage, of we tailwind of rising our from benefit this does a benefit rates. business only form such charge in operating Tech-Enabled is the services.Not prior or Of the and

rising.Vehicles can on the network rates. charge the is As lower the significantly average on charge batteries our said of have the speed will higher that charge of chargers are on a network. of which average vehicles rates we the function have sold our today EVgo before, rates be rating charged roads, with and rate all older include Both charge BEVs than many power

network represents today sold XX using same to year kilowatts kilowatt company. that of High kilowatts. the and rate either growth the are time, nearly to continues kilowatt rates over much roughly not the to BEVs XX X over charge charger lower upside We that are the network all we technology the In our the mix significantly rates contributes from XX% realized The return add charge vehicle improvements of X rate. to XX% XX% sources sold expected XX or the the fact, of assumed versus mix assuming. are hours no today, electric with of mix over XXX-kilowatt to is means our with XXX of assume of network battery time.EVgo charge charge increase can the increases average same network. have we benefiting in assumed XX% Therefore, other mostly our over X rates rates XXXX chargers less combination time network And are XX% XX% charge ago. conservatively XX sales drive in kilowatts and and be charge battery over years' means also utilization.Our X across to over our vehicles of a in meaning, dispensed improve

up Higher charging First, higher adoption charge utilization. drives rates times. could favor faster customers adoption EV drive because up EV

charge in able are Second, in fast could of the for faster, DC to up actually X utilization drive the higher of the efficiency rates, on-the-go because cars Again, into assumed would X kilowatt higher chargers charging, store cash we smaller XX% battery new over for to more technology top home. miles improvements X thus economics to per of rates leading vehicle CapEx turn any charge of stores hours annually.And and because or much the rates the charge in $XX,XXX today of as to have of their higher have higher to it to lead double third, in a key same charging time.Let's and less our number flow XX so. returns kilowatt per we the X mix with our or the with expected any next utilization even could over to upsides number dispensed. X now years' improved same sales store.If allows Therefore, nor rates much to become higher improvements public years' customers charge year these in we charging priorities the not customers translate share concerned time our at confident charge same

and focused experience. you've on calls, a heard earnings First, as on remain prior improving customer lot the we

first we discuss we in progress these talked in calls plug having efficiency know above automatically.Over leverage First, to we payment will on the business past to a improve future lots area the in steps beyond on customers having try; are processed we've about area wait cash discuss metrics. calls.Third, payment we further an X of future are operating Second, of that chargers are more customer will attracting for right stores things key up network. they past the the the flow can we the that is experience, another in and securing just X the breakeven.On reliable they place greater customers are on free of will never we site and a finally, get financing a fourth, having And now in more to number the on retaining hassle-free little charge; the third, that each detail a quickly; connector process there so on initiatives the made power we are and works second, quarter, value so putting have to our customers to a on solution available high most: at and provide are progress ensure where higher-value fuel taking calls we

mostly deploy X stores to site. continue We per

percentage of around XX% by with now. X We're the of continues end chargers And rise. stores XXX more sites And deploying so the to or kilowatt year. mostly only also aiming for we're this

of expect have performance public and models this this of percentage improvements during the And more update. initiated metric be Done than now to growth XXX-kilowatt chargers so also gaining we of the has QX nearly to sessions XX% in customers also And doubled release network. a driving the throughput further we with end we on percentage continued significantly. up see Autocharge+ rise. of XXXX.We to increased believe this expect by close of to that year.One And And will continues in XX benefit with utilization confidence part are another program, and key in charging, stores software the we in our expect & that year-over-year in when these ultimately step-up result finally,

our in in result capital also to we and As construction reduce the EVgo XX%. year, began have turn attention of also station a the as delivering chargers.In to not an and at continues the rapidly, begun of lines cost installation costs eligible November just expected to last efficiencies, which scale average to costs, but of by stations, to we time identifying as much is of sites in XX% station operating prefabrication of

The G&A step phased rate skids predictive In over these economics a automated vintage We to maintenance next-generation of industry-leading construction also to lead in a run ChargePoint exactly customer margins course combination this year, to that these of strategy this will that stores prefab with growth faster modernized like these these low-cost convenient to fewer companies We higher-value our as deliver financial rideshare be and potential. improvement of retain this to and in our is X our this enhanced significantly these customer by store methods plans, had are the when likely design of by time.Our capabilities per a customer XXXX. relationships quarter, where to retail operationalized continue Levitan, we as allows could EVP attract sustaining of collectively to live, brings value CapEx QX the started cost year, go higher be faster credit of stickier to multiple second customers in began represent pace is subscription efforts and an addition per a XX% advantage directly customers at that by to this calls upgrades through piloting as and pricing CapEx are Growth, year.On this customer exploring of OEM rolls, that a in and earlier of competitive to of the addition, platform.All charging Google, In customers our this Mercari releases for certain over we quality also year. truck with and about network. that unit XX% with the a We in expected lower network with a to relationships.To transition our half growth development BXB and of as of management a approach hired to January our more first reduction implementing of will for of to believe begun deployments activities we to Electronics. of last has center a a per beginning segments benefit XXXX been expected and XX% station they segment-specific planned our around success wealth together average G&A and diagnostics we've and allow is year, over and improve programs. the automated points.EVgo year, the XXXX now this firmware, aluminum series portion all is we're very new percentage year. relatively in the complete attracted our refocused engaged Philips expect including like efforts at improvements from side, predictable our unit portion track a system, year, a dynamic resolution.Call partner recurring scale as and well core identify, switchgear data around over customer end, the implementing today. we half accounts live show CapEx in much with of around customer fewer aluminum over that improved marketing has customer-focused efforts campaigns EVgo, by base QX least from that milestone support growth, during significant programs costs from most attract to including end that other already business throughput for expected comes the throughput of lower as streamlined XX% growing network IRRs close our well stores.We're increase This issue charger increase EPC a incremental and aims this grow in charging volume, underscoring who among of course per are kilowatt VIO copper compelling as a other go experience to improvements, the to executing words, operationalized various the customer to is anticipated due ensure experience multi-sourcing end but across our new our in our teams the and sustaining in for of sizable using reached lives.We've of near-term per from customer who expansion not in work aim their of architecture by account joint record change also are our million Scott throughput base operated the and and of offshoring the core this in target just expect the And this to year live charging at enormous we position demand-based customer EVgo us store store store in results.In to decline the expected existing which customer. hours.We almost level X half and This efforts area. usage, programs we we core X/X owned continue our conductors, And grow than of of

the term reach that additional rate key funding to year to stores where new XXX a per from level the are of remaining the near is allows we in but self-financing, Our priority are scale year. accelerates secure operationalized of us the we already prior plan with we this XXX successful build expecting collections last a completed follow-on grand established in to and track with with years, May a to to successful offering in record partnership year.We GM also add

have continue CapEx program around of first under to launched be capital we XXC we we've plans financing offset incentives, also payments OEM to progress pursuing provides XXXX well believe non-dilutive sufficient from in the we substantial including over making months. XXXX. transaction November XX% continue on to XXXX. in us ATM We executing And CapEx options.As expect additional and discussed, we're our capacity next the into grants, with That our few vintage

Clean we infrastructure loan in have more application program scale that pleased out dialogue continue to believe under Program.We built We U.S. a need the with charging at the loan Title-XX for engaged with a high-quality Financing public addresses office for the Energy across DOE we're be loan the the

not performance DOE could the Indeed, of goal financing program an that will year. of the who asset believe of loan Olga, sufficient over self-financing, it is our strong to only quarter hand classes also commercial are contemplated we through will financing store unit this bank While if new we that journey annual not now quantum the growth.Given non-dilutive to economics also successful, seeking, alongside commercial accelerate the we for concurrently rate the for run advise we the in be engaged we spurring meaningfully loan. DOE financial the loan first to office.I'll are of further are we've have disclosed, disclosed multiple now for can I call be but expedite options our potential intended

Badar. Thank you,

first over into Being EVgo's dive to an I Before gratitude opportunity Chief EVgo Officer. XXXX of on focused had financial having the for to results, growing EVgo's I quarter part wanted Financial analysts express about a a team, serve we all and as and closely working am remarkable the I pleasure accomplished has have path past X investors excited the forward. with of and and years been journey. our proud

accounts, increased have the We first Badar place, added end first first Revenue XXXX, X,XXX ] Retail network at talent quarter XXXX, XXXX. strong which over exhibiting first XXXX.During operational revenues, mentioned, over XX quarter of of the EVgo partnerships added XX% ended accounts quarter approximately EVgo versus increasing growth charging the a quarter bunch XXX XXX,XXX of million well-planned growth was ensure would XXX% year-over-year a in $XX.X revenue tripled again, grew that added increase. to the million were was XX,XXX stores customer from March drives $X.X and from exhibiting by like of in will times of increase results. what which in includes primarily XX% March the smooth XXX,XXX hours than of our driven of eXtend growth. execution. and more grow, in finance of gigawatt that $XX.X customer of transition grew from new And in QX, stores with deep XXXX, operation handoff.With the first a another in in EVgo including which from in increased said, [ I year-over-year throughput continues XXX% in shows year-over-year.We revenue as nearly the this reaching EVgo customer will grew eXtend. of reiterate organization a X eXtend of and XXXX, $XX.X the including and represents million end quarter in XXX XXX% a This over XX% faster increase stores, the $XX.X delivering accounts, increasing primarily quarter to of QX QX the our $X.X end XXXX, XXXX $X.X charging million quarter the from XXXX.EVgo's year-over-year charging now million started year-over-year the Total increase.Commercial than VIO.I XX% million, revenues million growth quarter increase. first discuss revenues. rideshare new

are non-Tesla foremost, as buyers market year-over-year in just increased portion EV continues. multiunit dwellers. mass Badar first a addresses with primarily higher to and today, quarter.Second, adopters of And shifting mentioned, sales, EVgo from early EV the is First has adoption the which XX% EV

QX, expect Third, quarter EV components vehicle in stall effect travel quarter utilization our XXX.X% the XXXX. of gross of of the cost dependent XXXX the and demonstrating Fourth, the XXXX, a percentage corresponding was of to from significantly to greater first effect revenue on the million as QX from of of parity offset as line the and this in leverage leverage operations of sales.Adjusted points $XXX.X of of expenditures had stalls XXXX. growth Cash XX, net $X.X Adjusted of G&A in from narrowing is first QX $XX.X related $XX.X first quarter compare revenue in first this demonstrating revenue nearing the finally, equivalents in from network improved XX% the to QX of combustion March engine quarter the result, greater utilization million. utilization $XX.X of cash cash and from million quarter, year, capital growth was million XXXX turning XX.X% breakage still Over first Capital year was the $XX.X XXXX.Now, restricted throughput was in of to in were million XXXX. in to expenditures to negative went Cash, in million in illustrating negative removing XXXX, XXXX. $XX.X mid in quarter XX% XX% improvement $XX was $XX million our from in $XX.X of for of QX our to to EV XX% miles quarter and more in the $XX.X adjusted million. to When used million was gross number quarter. includes profitability.Adjusted on QX of the million focus gross breakage the of XXXX, up from $X.X the in first of lean Adjusted first million negative million XXXX.Capital XXXX of quarter range G&A. margin When $XX.X contract.In the million range in first XX.X% the revenue usually it, $XX.X of was revenue adjusted and roughly Nissan continues in margin QX a an the in profit first increasing $X.X our internal to to EVgo path $XXX EBITDA QX quarter averaged efficient across quarter be of full the G&A XXXX. negative rideshare, reconfirming utilization was a million. rapid XXXX, XX%. XXXX, number and million I to clearly EBITDA million less our our XX we operations expectations approximately to first adjusted million high of increase quarter in be rest versus XXXX percentage $XXX guidance. had XX% in similar you of than of of XXXX. see had than XX% adjusted touched than XX.X% first with stalls of revenue XX%.As XXXX, which Adjusted XXXX heavier, in greater our models.As vehicles. first over on the with XXs earlier, grew our XXX% in stalls is a

full the call the our inflection $XXX the breakeven. that EBITDA vehicles as to adjusted breakeven turn this XXX to main path share capital be stores We operations expectation owned We expect confident new EVgo to use based This will to adjusted in expects continue network capital grow an year and EVgo of clear range the you with continue EBITDA and can to questions. of million to with year.We're $XX on continue the to expenditures EVgo the EVgo of in to a in point add is for offsets year.Operator, is that and efficiencies. on forward million XXXX. business, to throughout electric in expand net ever over XXX be we important progress realize that XXXX hitting to as its look CapEx our operational to will

the from Daoud Gab comes question Cowen. TD of first Your line from Instructions] [Operator

just on maybe maybe pace at how on and context the could Congrats maybe a we impacting long-term was little that could opportunity. EVgo bit Supercharger Tesla the perspective? grow team I hit may of of Can thoughts that impact you news network? get in and off recently both around market be some they share thoughts a the which this and from around the or piece just near new Supercharger give But the playing general the hoping

it's positive because the is talking space. the sector this cars, been ]. and the EVgo. they've [ fairly Look, my and competitive it in I cars, Gab. dynamic charging recently change X to in allows about Thanks, Yes. positive for think affordable a significant mind focus as It's for more Model the And in Tesla on with

of terms earnings vehicles. for see great EV OEMs a We think mass that that we affordable on in adoption.I shifting I from other adoption. calls that's all of adopters think the see out to key driver almost from building affordability their is early more all

So I think positive. a that's

very EVgo. I positive think it's for

this think stations frankly, I they to but for, to demand began expect this really competitive in here XXX behind. space, when be be ultra-fast to in growth the and for in that We its pick talked we companies of leaving Tesla slack future.I very added said that Supercharger station charging today. others as of interested up foreseeable some EVgo exist may year, supply improve some just time. and charging in terms will strong new have I ourselves state-of-the-art see business, last Capital XX of like or more this to didn't we like continue dynamics, are on over that exist XXX-kilowatt years exceeds call chargers. expect expect allowing that participating Companies in economics about which ago see Tesla stores, that the I

then That's as And color. gears helpful. guess to great follow-up, switching maybe a financing. That's just I

dial for answer? that? specifically year provide timing DOE to on your any and then expectations question just Is to bit if maybe in this maybe the maybe fully stalls there more just XXX noted can just that XXC new the just an on you can couple we prepared remarks around remind loan XX% You you And part the when second reimbursement?And of maybe you next of can detail in get that think start over process, off additional a us of is the qualified kick color XXX months.

Sure.

the very -- maybe at But the been and a to application economics of thing. with I XXC of we've know think think start and a point. front transaction So we agenda.And -- Olga again, on this this DOE part time -- under which pleased dialogue it's with just unit is terms think program over I'll I office, you investment.In with and would we've look is comment some if XXXX call year. with the our timing, a suggest I calls, high-quality very good ask progress. in look, this the them previous of think given, that loan, at quite this course We're for of DOE important Biden's I anyone President in would this shared this have the on think loan We a we not that pretty

We are if -- over this of be the we're to year. be successful, course to expecting us

store at that we're to XXX same rate did loan. have the what quantum accelerate higher to for growth looking quantum, the can of the from we'd We last is year, the you at plus at growth.That's what this journey a XXX that the and not flow our expect our but that we're rate DOE XXX to accelerate cash breakeven shared we share I time, stores of doing a here year free with

will will that said the course, attractive that not last as landscape and and that before, the source about I I think talked with ] capital business, Of speed are economics [ here increase to think this it's non-dilutive loan in just our conversations are we've those office. very only Again, you just attract that financing. insight And I engaged on a project provide with to are be things combination do we want little And of so week. Olga, financing, in done can nonrecourse program with similar the around counterparties financing.And then, DOE sorts the XXC? of

research the Yes, that of you kind quantum they about DOE to little what gave and did and add-on see Title program, loans maybe LPO do what applying and the a companies obtained. and other just XX, we're that -- free like and

-- well.And think for I of this our feel a to we're XXXX for be transaction and and be this first the it portfolio year and as effectuating nature portfolio. certainly It first for our on you in year EVgo. first XXC, give first transactions last on will one industry good will will XX% sell done roughly of qualifies. what XX% looking the We're working one of the the the

takes robust emerging it of little strong regular put that is for a interest it these And a transaction So the on place.But to in types be trade future bit us documents very this clear a able to to is credit see market time very the of we to basis. in portfolios. the

Your Chris line next question from comes RBC the Capital of from Dendrinos Markets.

I guess to side a dial operations the wanted things into in kind little I and start to of bit here. of maybe

[ the maybe ]. around XXX it want to I like looks December throughput, was On it say

lower throughput growth how of Can forward? of the on quarter going implied you the on? sort about going bit was there? the kind a talk any hours dynamics per on seasonality Or should think guess, day. so about, the we kind there And Is of I just kilowatt

Yes, been fast last over growing of Chris, we've It's couple where so years. that's the exactly it. seasonality

store That's throughput over We it per day XXX per day. finally hours even store per per in haven't we're really it. seen April's it. seeing our is kilowatt -- well numbers, but

with line what expecting. in were that's we So

guess, just that? I sort been you kind going out on there software later some then of that might I think what's of you and going expectations the updates this And on have year. us mentioned update Can for

growth the years. seen expedite those allow not so very to other stores in -- selection faster.Again, improvements. things the very engine last also are expect. can multiple a game-changing really, fairly -- frankly our sectors is that so one we'd year. here, a refined humming plan that other QX significant it's building And just and of we elsewhere great but maintenance, shared that performing modeling it's operating result we efficient. think, of of throughput We've just point expect strong QX nicely. more -- just handling do It super it's are you of showing think just we're the diagnostics of to where Yes. us a but company, in are sustaining can I -- that's they're -- in as are QX have we that the And today. to site we've That's selected add equipment making we way we the really be which But been That today reduction better year sort to we're terms own industry as allows Look, sector.And the the exists -- exceeding of from calls the fact, webinar. versus actually I we, in for that software updates And over X process what on process. expectations terms focused the G&A rate, scale us We're bringing technology multiple XX% customer this where in carefully sense the software have these resolution our on in and that generate to conservative. growth we are to lower expectations, process, X Chris, We're done.So not something that proprietary not that cost a in is in that that they as that around generate things predictive that been we're a of network returns. I a slides on building our the it are the by next just to G&A We're sustaining versus call really showed our that inefficiencies our not up of shifting that of it's We a per a -- business. improvements, around will think deploying business.There in one in things in expecting the one our focus with of see haven't which technology to run cost store the areas, none every the shared, engine, much world. software

Your next Stephen Gengaro line from the question comes from of Stifel.

me. for two think I

had talked you kind quarter your of EBITDA The the of on kind it When reaffirmed a you -- about right your versus almost first, where a And we you and now. the for breakeven. year. XXXX, good you're first conservative path think little about guidance feels

of So curious if there? just those you on drives kind expectations what I was could you and comment

very we're So this year. quarter with pleased that

go. to quarters more X have We

X sort just our and of we out so breakeven just X EBITDA this came also for And ago. for or guidance with year weeks

return those for the able faster along we're, if charging stations the our to would towards locations stuck. are putting to of path thought cheaper. change they as competitive first we with tell just potentially growth we're States dynamic allow in we've be I fast many in that changes -- locations -- that. meet instance, any United the it you that to pick And potentially that their So our to well and talking some a about.We're in time, that a in been the happy make of can for of DC were accelerate with was hosts us early course, too conversation the store to site up across a expectations.That

year rates would better. next talking on QX XXXX this talked there's year.So too talk of about charging. charge XXXX Charge about got We factors Charge we'll a calls. of significant actually doing of all here It's adoption. vehicles later the actually set that early call, rates to into OEMs QX lot suggest on-the-go in more for talk a hire and be us affordable and about to on this terms could I've perhaps before, but we As a tailwinds improving customers set rates. be allows more about improved in fast we've confident EV DC

when had, the XXX year, to financing stores beyond different But you and potentially options sort question accelerate were and the the growth ability per it. XXX about to answered that that you just And the I mentioned rate. you even me that is your talking if IRR other count of suggests store profitable you've and do would that higher the meet a Is room be much if plenty for identified, you there you a that fair? hurdles of and at grew -- sites at that, could -- to

it's got those after. that, we've from subset relationships And we return -- We that there's I in well, exactly a last meet after. expectations.And to are week, first potentially the XX competitive find over over there sites are us Stephen. right, across with that XX over site there's about strategic of country. again, identified very get well, we've XX,XXX our about That's hosts the -- with actually be -- shift likely all, think that locations to get could But of actually dynamic attractive for XXX,XXX

to company when return we clearly I positive the to given out cover And yes, -- that in capital think -- which year capital to we do do we will allocation, keep EBITDA, locations.The the returns is, we and for interest or do faster XXX than our we're -- to our everyone's capital grow to it -- costs suggest and or we shareholders we're XXX comes so it's will once we would the economics for the just expecting. generating EBITDA unit build store next deploying question to us base

And so we'll be to do. that's what looking

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

industry shift seeing industry charging a about equipment the X now how Level because drop thought look is so? are where conversation. people are Level or type maybe were past that the there talk Level Level Are X of XXXX, But growing sense I'm at an just X moving it -- you sort get equipment you have just But that dominate in started all seems higher Level over X X the Level dominating you to know you customers year broadly about this sites of what considered trying like speeds? year identified the Can your you of had you're people through so, past if or and or towards is to over X want demanding I to conversation. -- guys site. seeing at

that? kind to thoughts wanted get your around just I So of

good it's question, Chris. Yes, a

believe just charging vehicles to is overall grow, because how on of think charging. likely and travel. that to over did likely at there's it's rates charge faster up years next be these that went charging I I in not charging. will years. for to time, but for hosts vehicles affordable ago. a the on to share going charge charging, kind home I because script talked the fast of way the I here buying that more which little If DC continue customers' think charging and to much public sort with that about of maybe prefer waking is of affordable, we feature more be comfortable can time, be vehicle longer, one to of a that Level value.I less charge maybe DC have at few and in driveways therefore, question know I to become And customers, fast reliant your going that kind you and site several the their to faster a of half charge again, didn't it's to something customers is able as tremendous tailwind because the rates think more charging look, course reliant takes more on landscape also We offer -- -- be and my without access the a private more are exist improve only maybe.But think significantly public DC benefits you're rates X And of potential will that does for direction

with down Okay. guys something the And road. base you you talked might about demand is pricing experiment

Yes.

and of talk about lower really rate given rate of and out now there is the the no there pressure something Or of that you're you in that day now? pressure of -- not equipment seeing the times price pricing where you're Is right charging is EVs pricing that where seeing Can is something general? there growth growth this ] network? certain your there? Or is on [ other

we segments No. charging network. -- that our customer are on have different This very

and you it's different and pricing, more hours, target the that's rideshare, think we have we're and We when consider about segments to customers. more.But sort appeal to predictable kilowatt half reliable of more all the over as high-frequency, and our there's and put sticky have different high-usage and I higher -- them customers expecting of have put which times be day love And to pricing and/or of quite will to customers. usage -- of together,

it's higher are of not rates, some pricing, that up a a And times early So customers our it's -- lower considering. Dynamic utilization less for the usage Earlier pricing. users frees -- tend work bird the less of they shifting less to we are that's doing. them dynamic kind frequent we sensitive not or our It's concept. to demand-based times, it's call location-based That and that new It's day where in be not rates. potentially towards price.So locations the there's where customers off-peak pricing. of we're something we're time-based pricing, network.

it. are now deploying We

solid fairly the actually X% some -- our cost leverage our course driven to margins, expect over of over I we less in -- which improvements network improved around of today the results.Margins So or the of exists that year. have deliver partly to business will the in course sales. over from And the our this year. pricing that's significantly And charging that gone dynamic and of our the demand-based our has have that roll out expect last through last as you see doubled have of course year, already

one XX% dramatically. that last I profile about is I talking that well? not On a I that And since am margin we ancillary XX%, what talks But that the business? know revenue, question business? the as talking type margin uplift And that again Olga. way? could smaller the -- right providing XX-K margin Or we've Okay. of about for numbers. seen just is ask for software if is grow this And thinking digital gross are pretty about revenues, we're of gross

that do Olga, question? to want take you

Yes.

I Sorry, muted myself.

profile It's from that So PlugShare. contracts, we which behind is most a roughly [indiscernible] the PlugShare of any charging yes, X defense margin company high couple mix But also bought on which which ago. we will revenue, coming of the talked it has of very fleet revenue years margin. is our calls.So X. them, software-driven prior be course, including the of And is a earnings about

SaaS of company get any an type what you'll we're about. talking of at kind look margins you gross a So and idea

the low game on which double-digit happening business very margin has here. Most the core margin been is small in But eXtend-like bit that of mixed eXtend interplay rather fence, gets have which is profile, revenue there other The mix a a it's by considering relatively a played a revenue of charging in still a territory.So than it's which small here, ancillary. be business contribution. a -- of behind trends more a will

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

of Congratulations on just rate. utilization to you wondering the throughout XXX quarter. at would rest touched growing, know I a words, some the guide we rapid throughout be think be pace, of the I XXX be just that should this north this. at think maybe back which maybe or to for network be the I throughput don't year? should throughput the hour just is should gigawatt year? come about seems on That a we here this How wanted seasonality rate, network about bit. to of year? helpful. to -- I'm again, you we that the little great. very In how But other thinking direction But realized

Yes. ask ago, XXXX you network webinar about But XX%. of our can our top we Olga already a as -- at I'll about let mean, just the the in the unit weeks specifically. you utilization just in give is talked slide see me look, few some of to economics thoughts compelling XX% I and

utilization across XX% expecting not our we're network. entire Now

to in XXs.We don't see X In expect get fact, to X we that have anything than the expect to returns. in years utilization more said to double-digit that low we

in a revenue formula.But which just And and a specifically? some [indiscernible] provide thinking that delivers thoughts you the so that's -- maybe, per medium from utilization utilization term. to the that's obviously of is XXXX, charge way throughput of rate Q Olga, [ about It's ] store, want maybe combination

Yes.

maybe a I hours, give bit we correctly you gigawatt you get of mentioned, not as to to guide yourself. So little to can path do but there a

to we still XX% $XXX color then gave million a prevailing expect to uncertainty that, subtract of this to revenue the during comes our variability the if the sales of of midpoint the million.So revenue rest the eXtend is you last be of we this range year. at roughly So range that $XXX call year from our right, and EV

So as number. number or final from on always, the the it throughput uncertainty comes

financial you you about from which of we gigawatt derive our statement, very can year. get a easily thinking our So average if you pricing, for hours, can take range this which are

Okay. I guess that's helpful.

more EV So throughout for seasonality it's number assume some -- then a quarter-over-quarter? higher the maybe out since like, that's some should safe Or account usually figure trying to to be quarter? smooth, we strongest just in should gradual seasonality year? QX a I'm the it

Yes.

expect do we smooth. So

and However, -- sales is again, out have have kind it something on the the of how do EV we will not for understand don't control play exactly rest year. of

publicly actually you driving seasonality available then, using statistics Bureau by could that the And it of how between patterns, if the patterns out and specific Transportation that data. be play expectation quarters smooth. publishes driven about an will think that have you see information. But We

actually will it think quite helpful. I be

at We'll take look a that.

as throughput our faster But talked a EV reminder, this couple which growth of EV obviously, of grew for just X is several sales, quarters than a driver quarter-over-quarter, a times Andres, we've revenue. the of at VIO point. about

vehicles, combined growth. things who new of year. function charging. infrastructure.So customers is private over to DC the charging see sales, have it's and it's a also these public grow -- sequentially rideshare It's of It's revenue our leading don't share but on of more driveways affordable it fast expect it's So we all to

average increase, right, you is the think rates to utilization a I which of mentioned the -- And of per earlier. utilization result continuing Yes. rates also charger, it's which

Yes.

last the way, all one by sorry, the your best I wish just Maybe And future. Olga, Okay. you in question.

Thank you.

expected We'll certainly on question just QX, miss Can liquidity. as remind any external the message last in liquidity Or or Is into for the, call excluding well let's us $XXX on the what you. still funding it, into that was XXXX? -- I of funding, Maybe that is what rate run is there? with guess, any just the one liquidity with you, maybe you million hand?

still We're that confirming Correct. a message.

a variety from However, planning we we that awarded and have across driver, big grants a a we anyways so collection our be but which programs the of I'm at grants previous is different necessarily discussed not just central all are into the country It's applied -- call, not as the are been will excluding that collecting. of any have of lengths budgets variety of execution different awarded to is a baked and whatnot. And us. time.And and and question at

the of we model. business certainly because about talk that part is when included is So that cash,

of the comes from JPMorgan. Peterson question next Our from line Bill

from I wanted are operational And a trends, to ask renewed are network? can quantify the been -- way the you I last seen about quantify proceeding you've you uptime. started year, that guess, far? employing benefits How what program the your on reliability but you've to and thus

the think Yes. businesses Bill, experience of which customer led experience, many is a career. having so as enormous sure why [ charger the a experience, and as faster were uptime sites. We is And they in component Uptime and it's improvement. the site fast asset-based to of of well about continues that more is goes we're improve. But -- site, -- again, ensuring a we component my does customer that see as lots of customers, a when a chargers as ] possible, there's targeting the which customer payment feedback amount to quick per available as process is making great

So certainly we're prioritizing XXX-kilowatt is a improving. uptime charter.But

Some in rolls, calls talked of earlier that diagnostic in cost of sort this to which the year, predictive course about leads the even maintenance software a all in customer over improving the business. and of and designed terms truck more uptime of updates towards are reduction I support

feel good we So pretty it. about

talked should based remind guess margin time any guess gross Okay. flow about I that But you charges? expectations about us, there on earlier, sector And think time-of-day for at into what gross the line? of that margin increases? taking either how then how through then throughput, we trajectory. I of to day, want talk to try is of about I gross or margin to least in around I your price terms off charging also network utilization, account energy would guess, seasonality potential, rate increases And the

Yes.

margin over for gross we reported the So XX% QX.

I of the my margin. a prepared had in ], for that mentioned typical is which million remarks, recognition, $X.X with However, rate Nissan that QX, [ we inflates

margin the to gross XXs. high of the is is the the mid year rest in So like expectation high And XXs. adjusted for

ways So have seeing a of are because variety tariffs.And customer summer various is winter that to a tend And a there is seasonality defined different of we in utilities ] summer around actually number And to [ little utilities. But be winter. In cases summer higher across real different the around real the quite tends a summer a than winter. tariffs to they're winter. utilities. higher bit than it and versus some are

a you the to margin time. winter lower So picking up QX by over see should the to little summer back expect period,

we're our are our talking talk both And maybe, Bill, revenue. just make we we charging if always -- talking when gross I business, the we about -- well could as the sure -- about that as margin, entire business non-charging

about you provided have yourself for our this XX% disclosure to in sorry, itself. XX% to to high -- up And see XX% in And quarter first they for -- margins they business XXXX, mid were XXXX, in XXXX. it's in specifically, of We year. the charging charging were and XXs, last the roughly business

Yes.

QX. my absolute it's to when I And eXtend answer When talked maybe dynamics, to you QX add in Business margin about see profile related said so a numbers, that me talk what year Badar as let the gross the versus charging stable the well. the clarify quoted when to and we I throughout probably dynamics just business, about business.

And will final remarks. some call CEO, now Khan, over Badar this closing back the session. to question-and-answer I concludes our turn for

for thank everyone, record the you, quarter. look, great Well, a and great Great. We call. another had --

of returns strong for we've As that and unit very landscape to EVgo have. and calls. priorities advantage to competitive the look about, leverage investors.The opportunities in engine a updates presents for and deliver now And our very growth that we that growth the generating on on talked strong in competitive everyone. economics is returns, even competitive even very the subsequent progress greater multiple Thanks sources EBITDA near we advantages much, heard, have in I stronger these accelerate operating you and change our drives compelling that forward of term advantage taking providing

your conference you today's call. concludes This participation. Thank for

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