EVgo (EVGO) 1 Aug 242024 Q2 Earnings call transcript

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

Good morning, and welcome to EVgo's Second Quarter 2024 Earnings Call. My name is Heather Davis, and I am the Vice President of Investor Relations at EVgo.

Joining me on today's call are Badar Khan, EVgo's Chief Executive Officer; and Stephanie Lee, EVgo's Interim Chief Financial Officer. discussing XXXX, quarter session. followed be our results will for outlook by we EVgo's financial second and Today, a Q&A call website and Investors webcast is accessed Today's the on can section investors.evgo.com. at be our of being The with company's call after conclusion earnings along call. presentation the of investor will this and and there, archived the be available release

Badar turn a we call to of these be note measures, in to about our These GAAP our as available referring found be the apply statements differ statements XX-Q. cause are about including call. XX-K risks and The financial these website. can the report section to material the Information today, filings, and that, that call. the the after call, the update forward-looking to are recent Form website. that earnings subject filings could expectations With no SEC on SEC Risk our the management I'll Factors During please non-GAAP of measures from certain in on measures on Form Also, that and obligation this to will non-GAAP including we materially company's undertake will future available expectations most Investors to section are statements of quarterly actual section our Factors on be CEO. results report making our corresponding annual over on forward-looking reconciliation in Khan, including EVgo, performance. of Investors uncertainties, detailed the

revenues of revenue triple-digit growth achieved million year-over-year sequential of EVgo network quarter. and becoming to joining today. yet delivered sixth quarter another and grew record and double-digit you quarter last compared over We consecutive seventh for year, revenues everyone, in charging morning, X.Xx growth the $XX throughput. in the thank charging network Good excellent us

and short in per improved X stall XXX% in we today, unit utilization a level in the throughput complete just over breakeven more XXXX. we our adjusted yet have the confidence, With have to EBITDA economics of will network deliver profitability months. and providing the annualized path

adjusted in in costs XXXX, leverage With resulting to flows line have bottom $XXX conservatively cash to if rate, all in the the million fall we result business, covered stronger at A we X operating in X would over in only growth higher are EBITDA. straight EBITDA growing time once this per in of we're years' are the stall stall the rate year. fixed even

this highlights Let's look quarter. past some at key from

revenues. customer operated million driving operational VIO XX% are owned yet than last great add to Charging in increase X was total grew and quarter growth an than second another We stalls quarter. our track and to to doubled, accounts EVgo year exciting accounts, Our continued quarter, revenue by milestone. stalls on recently an and XXX Network XXX more to surpassed grow in year. Customer new second the faster this compared

improvement translating We in of gross bottom operating last and and adjusted with our year-over-year. into continue our we've improvement on adjusted strong to owned operated that G&A see evidence expanding both talked about calls, margins, the leverage few business especially line clear

the In throughput than Non-Tesla today. on network the which our sales narrowed full U.S. EV accounted for XX% grew consistent for the adjusted for EVgo the have including more XXX,XXX, U.S. quarter strong majority record later. quarter more Non-Tesla EBITDA sales last to of the non-Tesla for the the sales operational in year our over a EV the the of and second first in compared up raised time. EVs QX, revenue EV will sales XX% and the make in of Given reached year-to-date, results year, midpoint and business on color provide guidance we improvements Stephanie in

and The electric, EV adopters the EVX, coming. of incredible. adoption. EVgo. XX Equinox, just which continue, opportunity months. a will United point, Chevy to next from those expected is calendar market buyers trend have at J.D. were States this mass rise expect market Today, the to new tipping early EV We such in the X EVs of at with X% growth and EV U.S. as supports moving affordable exciting many models accelerate more future vehicle more in an available vehicles Power's years Ioniq are the just future new a vehicles. expected key MSRP models today of over including are X% a affordable to up and adoption. a Hyundai $XX,XXX this to few, the sold models next-generation driver is to from There Chevy in XX more mass counts choice, of XX few ago. name adoption Bolt, is Kia The coming That's

the overall charge charge be public charging a charging, of home LX share rates at without as these Autonomous long-term only vehicles driver expected in but More is cost lead and continue thus vehicles or of increasing adoption, multiple also EVgo than XXXX. will growth. Rideshare VIO and key already of Significantly, charge vehicles and at decrease EV are access are lower than of sell EVs New VIO at adoption, home faster total are they not who attract to EVs to electric cars affordable reliance charging. additional Energy long-term for Looking only able to today. and will estimates will not price to Finance faster to be forecasts more grow market, total higher point ownership EV why top On that revenue ICE note that to either drivers that the tend growing locations. short charging electrified, Bloomberg B&F major on public charging. DCFC throughput locations. that lower will a being at tend the are public customers not are will than and benefits relying ICE on are important it's dedicated Faster overall but vehicles tailwinds to growth, to customers' charge from is to will expected DCFC increasingly to

those as to and drivers able closer to those companies. XX% recurring with recurring companies receive. equipment generate share site owner-operators that do are the of live Finally, to attract for expect can revenue of public owner a due that listed operate onetime there only charging benefit as and DCFC drivers because drivers more represent And versus hardware networks VIO introduced, of company. is to Tesla public some host the roughly versus onetime benefits expect revenue we to highway these operators total one DCFC limited all and investors expectations EVgo will own stations drivers of energy where located and and the but to Maxcable instead benefit that work that to they many again, of Only equipment our than are was here. of more operated company the is sales drivers that charging be these is to focused we sales versus current equity gaining is DCFC DCFC delivered owned benefit other not U.S., lesser extent charging equipment the LX over In invest on space and sell exclusively time EVgo. focused because who DCFC customers in, consistent

a and in have in compelling were by the and basis planning, now this they a $X,XXX our conservative year, scale of entire per end per As our carefully positive stall economics. months. site stall, increases cash stalls flow calls enabled grown per annual the on due stall year. XX% we considerably on charge our top of in X the $XX,XXX. to proprietary the at underwriting, per generating And in annualized is and that over and us network top We now basis. In This our an this level annual generating kilowatt minor rate. roughly that time, unit selected $XX,XXX driven XX% to This is have by prior we've QX very is resulting last discussed is locations over of last in reached hours generate network over year, stall utilization

flow higher $XX,XXX in In increasing top XX cash provide with the XX% and per far in charge would we over to than continue stalls EBITDA be throughput grow total If under very costs, rates to had charge also increased we utilization this around due reminder, have cash flow whole very X by to XXXX. a stall annually. flow network annual ROI. to years' the we the time, mostly today, math top X, then at would and utilization stalls charge year, the see of cash cash level the rate of compelling hours. driven only periods, across the a the expect the expect vehicles daily point, lower stalls XX% a of exceeding just over stall next many flow stalls lower in the but stall absolute today. only adjusted a to top growth, the X is same as deliver we we years' that fixed at annually, also continue we If our rate we of our If of X they not we tailwinds assumption, in the per unit adding rate to utilization EBITDA the in per in we're of stall simple adjusted stall are to per project X our very to are today, today, As and results of resulting product and $XX,XXX XX% economics network at and multiplied one stalls. These increase count stall double XX-kilowatt breakeven time thus, X,XXX throughput rate rates, compelling charge X-month per the mix the by is conservative

the targeting CapEx from per capital stall much In range. excellent a in EBITDA very all next-generation of to cash in would than potential. strong decline almost costs XX,XXX straight given an other annually. the words, we operating and investment. CapEx recovered per conservatively we are onetime fixed strong expect resulting we returning stall to That is see flows next year, leverage, with lower return line, growth today, bottom With investment fall $XX,XXX seeing $XX,XXX on the net stall-based even gross chargers, assets the very are Once in our

continue XXX XXX to which new As here at we assuming only rate. growth growth per stalls that current is our I've stall said, year, we're

we growth in simply financing, rate successful that flow course, slide, significant cash would minus new X,XXX beyond growth. with adjusted EBITDA securing expect if X years in are stalls per costs that. increase continued annual stall X to of very prior we materially Therefore, in the to our to Of is fixed

sometimes fixed fact, X in get not. economics asked very In to almost annually already I compelling in sites developed. new is definitely have million EBITDA covered And EBITDA the costs years' expected all we've the X based $XX because That been unit most best whether answer every our adds growth adjusted X,XXX stalls adjusted on potential. time. is

And meet of stall when and we over network stalls currently throughput XX,XXX XXXX getting algorithms expectations. for stalls, grows, And pencil of pencil. faring First, in and online. went have just sites daily our and as per more X adoption years. shows would better EV our prior secondly, better. With stalls quality our that been just depending they site QX, have selection This are stalls old, chart than better which all on in over months return some

models financing free progress our efficiencies, first growing don't the we improving for priority, make securing experience, a described our I to in experience on charge. prior reviews. we an will over these capturing to all customer key our ultimately year, much of feature process the capability on of chargers customers discussed priorities where in to X gaining and and expect have sessions Increasing sites the charging, and improvements released progress the plug were second of in Let's the customers we so to CapEx and number customers penetration driving first driving operators to auto We Autocharge+. have now the because breakeven. the and that to number automatically. believe we gets expand Improving the the key can half connector continue hassle-free having remains in customer the reliable retaining flow of have rave and call, sold, on is smaller advantage and scale many per to solution our enrollment and last that on cash fuel works the right execute EV high-value Installing operating in get up quickly, some up last we wait power a able confidence higher customers that so on calls. turn that metrics to XX DCFC QX, they try, And EV payment particularly have payment the network. processed for in just models more in the public further This the of up and a utilization throughput result U.S.

made core volumes, G&A on of across call, efficiencies quarter have on We and our sizable which, most I sustaining prior progress costs. both CapEx. are this said a of completed our our offshoring We driving excellent OpEx portion of as

have to may the economics slide XX% in year targeting we're versus the in X way which earlier, reduction sustaining have year, per made You this on stall progress XX% of time. reduction last expect already noticed well we so and X continue QX to years' or from lowering unit on costs around a G&A substantial from those to the costs is

per for delivered have improvement for the year this work vintage a we skids, as FYXX in various a guided CapEx stall on prefab previously improvements sourcing we gross side, incremental to CapEx result and component the On the improvements. of EPC X% than CapEx already

strategic I'm excited of Martin a this of new the roles the development Sukup, Engineering, hired Given generations to leadership in over multiple years imperative the you superchargers. XX held of of past effort, Tesla tell EVP we

to change lower design per of to We've industry-leading the a do development in represent gross on due and over of by customer that incur second would new milestones X/X even customer-focused joint other It architecture a additional improvements I what an the second improved partner in will CapEx year passed of on half this smaller, the EBITDA in internal in of advantage experience to firmware. to stall with not showed the quarter be Tesla. from We key XX% In fast hires costs our charging step over expect This adjusted are fact, with a drive in important next-generation elsewhere. but aims unit came the dozens stall returns reduction economics source the the we of of States. strategically expected competitive level drives of per stronger the CapEx midpoint key slide. due operators United the effort, our adjusting to guidance also is

on with great And represent I charging XX% of baseload priority. Subaru. what the share with continues throughput stickier segments coming kilowatt We demand credit also higher relatively from The in demand be with network in make usage, to added continue quarter predictable consider of program to our our of growth a that we've hours. to extension progress strong, customer that the

also continue year-over-year. attract higher at new the in We to customers rates than growth XX% VIO, up almost

identify, utilization Our attract customers we hours allows engagement of ensure as the customers as are and new margin low-cost went to just right are goal we that are potential platform customer and live maximize that data the profile segment-specific to retain the the campaigns to times We to well capture. is attracting to with us right at across and all deploying customers and usage get attract targeting. do

driven pricing more demand-based has that XX mentioned more reached on call. source a the prior and than from focus funding originally share GM grant-funded I Unlike all of the planned even offsets rolling that amount the Capital vintage the available allows us advantage XX% for on of we've we around XX% are of higher operators most funding than versus our continued this continue over dynamic, of and expected also indicated. of year stalls objectives them, to by EVgo contemplate now be sources. We of and U.S. on progress in This is previously to to out of our rest of solid scale these also financing, maximizing most across network sites in quarter. today, industry. key of charging a we the On expect our the grant a kinds made the deliver XXXX this resulting level competitive

stalls. guidance XXC finalized expect the half treasury XXXX this first await transaction the year to to continue XXC vintage in execute for We from second and of our

the of loan agenda a XXXX. program high-quality President XX, the loan scale of loan to is significant terms financing in energy a program have be office the this made that the built application at for increasing Our and we electrification. under progress treatment quarter, Biden’s U.S. on application We vehicle infrastructure charging believe across our in DOE supports for out addresses We the conditional part continuing. clean need to confidence a Title core

One This our shareholders of benefits new the to our many strengths financial ability reach and with need close. LPO not expedite differentiating and do our we expect that factors to to application issue is reach equity financial close. both to

self-financing, for sufficient by relation financing to and is of the commercial revenue creates operator of up As loan the owner-operated On EVgo's VIO structures it stall experiencing and positive we are as double DCFC, flow an growth of increase or certainty from VIO by in believe annual the correlation required demonstrated as between a also more. non-dilutive and is in generation not is bank journey top growth, EVgo showing long-term successful, I've EVgo to DCFC our to DCFC The said interest continued throughput. strong class cash to stalls. financing. we growth growth be for asset to application, charging debt proven market support DOE outlook developer but before, expedite only will rate if our

prepare We of our our of the upsides costs we also to financial expecting in are accommodate project because second But are elsewhere. additional incur we of half midpoint EBITDA year changing expect systems the this adjusted to not again, financing. guidance to

our through our have now of will any the the continue project of I'll over call without these for of CapEx who financial to XXXX performance capital benefit this continue second Stephanie, strong financing year. the run quarter efforts. hand sufficient to to into We plans well

the was increased quarter charging strong grew charging QX, $XX.X ride network revenue by the another revenues. quarter Revenue $XX.X revenues, from as the sixth of charging over $X.X million partnership we of to second sequential a of quarter quarter million, exhibiting million last includes driven of from sales delivered quarter This increase. sales increase. consecutive year-over-year QX, including from Retail million of as company increase. June higher pilot year. represents compared from XXXX. expected growth X,XXX double-digit was of increased end operations to eXtend. a share significantly We year-over-year XXXX, equipment which added performance a were approximately triple-digit growth EVgo primarily Commercial growth. XXXX, exhibiting operational the the EVgo in of XXX% million new declined the revenue of revenue quarter XX% exhibiting quarter XXX $X.X our the of XXX% end of Badar. onetime year-over-year the June year-over-year XXXX million the throughput and eXtend including $X.X had increasing eXtend charging sold, sales revenues in Total in you, XXXX, at second primarily seventh $XX.X in second in second Thank XXX in of XX% which

During customer XXXX, more increase quarter than ended versus XXXX. accounts over X QX accounts, growth our customer trajectory. the second million new a with quarter and XX% EVgo of milestones XXX,XXX of the EVgo on added exciting

the X.Xx from throughput increased XXXX, quarter to During hours. year XX gigawatt of network second last

as EV driving traveled, home charge growth from increasing early EV efficient factors continue in to this charging, dwellers model. the and have vehicle adopters rates to to who may that increased growth, portion not We EV moving multiunit benefit buyers of heavier, many mass miles EV higher adopters rideshare, access rapid from less a are with such accelerated

Xx the than of grow faster EVgo's throughput utilization. VIO. in throughput is driving network continues growth to our the nearly One growth metrics network

believe previously Over the sales needed XXXX, utilization over therefore, of our the year XX%, had Over that averaged and XX%. stalls utilization than greater XX% our XX% discussed. than of of economics are over hit doubling had the than unit had of sales to nearly that the greater across from are a a in level utilization XX% we of XX% utilization on greater XX%. our trajectory We, Our network second ago. quarter achieve to strong utilization XX%

to each network daily size June on amount stall driven the from month of XXX throughput is XXX with versus in more Charge per doubled deployment kilowatt measure how with our per network hours. over basis. dispensing doubled reaching daily Average network XX through time, increased the of electricity increased utilization a throughput which delivered and XX%. by Our the month average XXXX, throughput Utilization kilowatt averaging on XXXX, also than increasing hours, rates, daily hours. XX% June same stall much year-over-year the period kilowatt last averaging year for the is of stall of growth stall, year, nearly prior energy

to margin EV towards as expect We grow over models network owned operated mix core we the profitability batteries, network improving as to through our charging QX increasingly chargers. is our QX, margin. charging becomes in from which The primarily faster continue improving, XX.X%, VIO charge growth EV, XXXX. our In and shifts network rates our time with add delivery mix in was that XXX-kilowatt faster and demonstrated network is XX.X%

see throughput continued adjusted a XXXX. significant expect we to is breakeven As achieving average personal in for daily driver our in leverage, operating which improvement EBITDA increases,

charging variable already as maintenance cover such stall of energy sales, some site as Our which revenues such tax fixed costs. costs dependent costs, and property include and cost rent, our network

electricity as in tariffs. is than seasonality there As are a our summer charging winter margin, network tariffs reminder, higher

of quarter XXXX increase in the of demonstrating year. the year, this quarter in of the operating the mentioned in to points in second from the G&A second in Adjusted XX.X% a earlier, from quarter $XX.X an working Adjusted last revenue as second Capital improvement quarter million XXXX. to million expenditures million. quarter $XX.X restricted as June $XX.X XXXX, versus basis XXXX million $XX.X of We XXXX. second XXX equivalents profit Adjusted $X.X in negative was gross of $X generated quarter million second cash XX, the capital negative quarter QX revenue $XX.X of Capital the changes. million of cash in margin a XXXX. operations grew QX second XXXX. I the second were up to the of due was offset As primarily XXXX XXXX. Adjusted effect. was $X.X from and quarter million percentage of XX.X% timing of capital XX.X% of $XXX.X $XX.X expenditures in was also quarter second of of net quarter leverage gross EBITDA million of in was Cash the compared second million of in second in of improved million to XX% of the XXXX, XXXX,

capital net the the were Our XXXX as first vintage to from of higher for well grant of for offset expenditures cost GM and to capital mix build, a qualify amounts funding. half stalls combination of that stalls shift XXXX, cheaper of for to CapEx funding mix which as reductions, reflects benefited stalls, lower and shift relatively that operational faster

XXXX to $XXX year million of guidance. of is to to increasing be $XXX million, range the we our the $XX XXXX revenue guidance in million. and turning our XXXX Now EVgo by midpoint expect full revenue

consistent has the in see revenue. than to be sales. growth charging comprised half quarterly and construction primarily of in eXtend sequential which will relatively equipment revenue, will network lower expect margins second We revenue remain of XXXX

of We to negative but narrowing $XX $XX are the million adjusted to EBITDA million. retaining midpoint XXXX range are guidance the our

covered to Badar in in our increased the be revenue XXXX, expect we upside. well joint the of half As as we to project sufficiently by the our systems financial expect development will next-generation mentioned, financing as make architecture investments second support of which

$XX XXX be million this the expenditures, XXX the to capital use offsets capital CapEx to range, with stalls main new EVgo to in net year. $XXX expect We million of add of to

advance a we As incur operational in of vintage the year. reminder, CapEx or

mobilization build in year of the build As prudent vintage enable of completion return only to lead and decreased us have have incur growth we maintain that growth. to to few meet between and than We a we over fiscally successfully result stalls of years construction our our same the engine, less remain past CapEx hurdles. efforts times sale done rate advance to historically the our

to XXX in experience. improve XXX our we remove to expect to renewed customer of As our EVgo replace part also stalls our chargers owned or and reliability program, XXXX, of

ever with We a important VIO that the EVgo that are continuing call expectation the progress XXXX is as EBITDA based and that Operator, rest as point and namely continue clear you year realize breakeven throughout business, path our year. EVgo an we This grow to full for EV in adjusted inflection to XXXX. on will our to continue operational on will of look of over efficiencies. is hitting to We the expand the questions. can to network to share the turn its forward confident in

[Operator Instruction].

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

to from the maybe on to to internally things maybe what the that a the coming as start uptake off, where of vehicles? be the cable. guess, thinking vehicles access the more result the revenue mentioned Maybe all quarter. to good are Maxcables -- service result. being I able Tesla you with today Congratulations is a you Tesla of what charging might vehicles charge Tesla portion And are that then more you and how share in opportunity about Can

Maxcable decided. the Thanks, for Chris. We're very excited reasons about the you

of this year, out people work. and live to deploying closer across the before they we'll about them them to able as expect end where are next the prior in network to rest of suburban time. roll to to start because, our and excited We're towards be We calls, locations, I've cables said urban, tend be our start locations over

As of distance the for within amenities Tesla site. instance, the we our locations versus have average walking X.Xx

on Tesla sophisticated able portion we're drivers to share expecting that so, our of target drivers. Tesla locations represent be programs customers to more be marketing Today, minimal and to growth a closer our live a to through small those to, and able growing our very network. And therefore, get

fairly Tesla upside we're of And able if roughly that so, are significant company vehicles to this for VIO represents today. attract a XX% the

a as follow-up then And here.

you that And are the provide You change of improve like? incremental investment there stall Is on later this the a next-gen also experience. operational mentioned working around mentioned preview what changes hopefully Can to just looks that that changes there? the year. some going customer little then of or is I all bit of the charging into structural that it that structure charging of some and think you is you maybe a more what

bit maybe on this going So what like. is look more just to details a

Just to become actually we begin enormous of customer of A number our a bring interactions we can because suppliers of company the with, the that where partner customers of we've reached scale these directly. suppliers table. level lot to don't a in to with interface strong the actually

course, Of million we've customers. X got

customers' frustrations have a very and points. design to we so, the process. sense of good And that bring pain We

advantage we large have experience, different we a for an number deliver with that's today. of the dispenser. different distributed that United be that think smaller operators configuration design DCFC equipment, bus States a to for expect architecture, the over I the to And site for able in very the of

So, a the lines as it some And course, on on improvements working the really the construction to well. configuration the time opposed good we've construction. we on. been it's But lines as focused for part site equipment at time in should in costs that's of working are the primarily of and year. result what And

with folks the the of second Superchargers of to in the we're think XX% to some a able additional prototypes past be to Tesla on the that to in than stall. leadership quarter, expect XXXX set we And addition strong the the adds the much CapEx by with from targeting just gross very earlier particularly the we've talent that. have that been improvement per something And of experience. call, of think closely have market half who all involved I I had very leadership over

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

Nice on execution. the job quarterly

which profit presentation model in first from illustrate XX% your from, adjusted midpoint you was is quarterly On believe at in margin, up updated you XX% presented gross the the I here in around X- this presentation, it X-year to quarter. nearly the and

So, going in of I'd impacts gas can which lower maybe revisit point, power from what to obviously forward, like be price at this TCO. prices generally light broadly, prices, other from appears networks, what a I competition to charge lower increasing tell, which

by more importantly margin or view raise this gross power I'm you at this inflation increases, percentage importantly, price your margin So driving the and expectations and your in is, adjusted pricing, other midpoint? unpack what getting target gross equally changed factors are what's to can XX around points prices, to that at target

gross actually, outlook. the Bill, I X-year to changed, has the think don't for So, margin target X-

demand We And the for further X X reinforces or just for believe because charging in are are Tesla infrastructure reason infrastructure unit that is years' is exceeds in exceeding there unit tremendous supply slowdown or long prices demand the term. charging is, today that assuming we're time. whatever we supply and think seeing and it intact that to with I that costs withdrawal

and the said about early I of as of think, talked I've have we time But little clearly around the introducing and I terms in are in portion bit introducing stages begun a pricing, sophistication of relatively really automated expect pricing. that of network, calls the of we small to level pricing are pricing. obviously we I demand-based use location-based before, dynamic pricing, in prior continue.

over and assumption Americans modest margins in time. I all faster, as together charge rising so, flows the for those the very some course, batteries rates generates look really in drivers only are tremendous that of forward buying the here, actually because compelling per cash the a chargers that faster rates. The fleet, is vehicles vehicle road are Charge of real getting deploying mix, stall. upside And felt with we're relatively -- tailwind utilization on reasons, we there's are in our

so $XXX to midpoint XX%. to you million. a profit That first clear, presentation, be in to Just of had adjusted XXX the that in so $XXX and the is revenue is [ have around -- it risk. thought $XXX, gross a at ] million you question is a election My gross can closer revenue but In difference. take We adjusted range $XXX of $XXX a this of just to million offline, of quarter, XX%. that's million next profit

we So, the before in but how a on more process, loans engaged but program, could a change the is have should in you the your this sense election? risk of ] what talked support or you urgency much see done think we that [ in about of broadly, this get changes Do advance Just current the about in daily policy thinking any potential you're to timing government? funding election?

things a think I of couple here.

the vehicles States. in calls, said United buying prior electric we are as people think I across

are states Some of that or and strongest the we're a actually like charging of the for purple other states red states. Florida, demand seeing Texas handful

ground are States, seeing charging States states demand the on the our we're United states. is electric United the people red buying across what So across and occurring vehicles and blue

So I successful our business thrives that very We just speaks think and any under well think the to is underlying administration. demand.

a delivering across key number United of billions is of the investment in I think States. of particularly states of the dollars hundreds IRA

as that's solid core the that's Republican So, states said and seen years. business of states, after The we've it's think part last the NEVI Red tend what or that although over course a not very today, program, that's I X.X have gone a of the our think be before, to I ground. I

feel very happens good actually regardless what of we with So, the ground election. in

the we working of to the you together get the through team to And commitment seen quarter, able year. applications had last DOE over get will LPO, very pretty this course In LPO work have conditional are being feel hard more their with DOE terms this of confident pipeline. in that we've

comes question of Irwin next from Partners. Capital Craig from Your the ROTH line

supposed the In proportionate CapEx $XXX incremental was to I financing. help prepared the spend your out eligibility this XXXX In capital the of last be year? that is It spent was offsets. Can under certain or stalls. you remarks, just vintage frame would funding on million said update the vintage maybe on talked have in 'XX presentation, definitely the about us now 'XX. to appreciate XX% you what CapEx you

you do want take to first? Stephanie, that

Craig. question, the for Thanks Yes.

vintage perspective, interesting spend vintage. because it because about the little CapEx fiscal year when it's CapEx little we the of we a advance interesting fiscal in right, versus I bit gets bit CapEx, of think from talk a a

remarks, and as incrementally mentioned advance, interesting. we little gets spend -- start, times in we prepared lead the construction our I in a of now shorter because have have CapEx So, that we bit between in fiscal amount mobilization terms to

of vintage concept. speak the I'd more to rather So

vintage, vintage from got. driving of we've And higher being offsets a higher really so, GM that XXXX perspective, what's when mix, capital mix the we percentage stalls that is one the look it's at of the a the

we've with side been in much trying just as more grant well from very successful. of got GM funding focused reimbursement the very, we've in as to partnership higher selection. year So, the We've site our the past maximize been

seeing side and coming in play as work the the the what as into grant a So, work the lot really on gone funding is vintage XXC that's well of hard the with you're on really well. the maximizing as focusing results of

driving XX%. what's really that's so And the

XXXX the didn't elements have so, we those some that the vintage have or And of stalls in there extent now.

And was the also so, XXXX in very mix the different vintage.

but don't XXXX economics, we're Badar compare when more we're we're lot he to So, more We sort expectation our to had where continue. cost CapEx unit of X if of when we provides the XX% seeing the the success some of improvements targeting, years, lower to offsets in talking see capital the we're it's a that, going X that architecture even hopefully, structure. of with color a of in mentioned with to that same percentage that about really XX% a level the the sort vintage. that's little And of that bit to challenging expect the spoke as with

of that add, have actually that have job has stalls sites, cash can to on And cheaper were I move as to done shows our higher fantastic I flow these Craig, quarter. our where profiles think have development can, the this build. this at we I in past that attractive the expecting And pipeline, offsets and that choosing more think building we've we in building higher the a stalls team done cheaper sites of that all year just fact, flexibility we sites

different a on, So, is Bill touching my was but something next question, I'll way. ask it

electricity in North America. bit the a last and year here are the up picture, at about rates in big look you If XX%

Your charging to gone XX%. gross margins XX% from have

So of what given going through that price just you these allowing impact unpack to through in doing increases? dynamic now and you what you're the you that utilization are other clearly mentioned going maybe of sort areas there to benefit the having higher can competitive for efficiencies of But Or allowing What pass to you protection that's you efficiently is and these electricity economy? forward. that's do material it's pass sort a you costs, have? us

a just as It's -- Craig. have increased we be good not a prices. reminder, question, to And

of XX% margin within seeing leverage sales. are the We charging cost our cost sales fixed. of year, that because end of At of sits was roughly last operating the expanding of

model to which better expanding per-stall the see exactly seeing of years G&A, impact usage we for getting to of been beauty a without have margin here, see, that we've leverage And on we charging prices. any and cost now, leverage continue part X.X tremendous we're economic And fixed. of is sales that's operating of roughly tremendous the so, will in more as as the I on think expect utilization expands basis, XX% in our and where we is both G&A operating what

to expansion cash beyond prices we've and flow fall driven number stall-based of operating been stall-based respect that from the those times margins seeing. the all of exceeds the the cash leverage, flows fixed flow, cash once to straight So the stalls, of costs, bottom the line. with

shifting very electric that are before, underlying tailwinds there and covering underlying are charging is growing that showing even charging both infrastructure. also public not our VIO not out, several growth in we but charging vehicles, Tesla of the in strong fast and laid As demand share expect I I currently that's may to the for battery the said from Reasons up network. get

those of foreseeable kilowatt-hour all unit on future. think minus margins, support reasons cents the prices robust the I per a remaining basis are costs per for

gross of probably we us the in incremental closely network of improvement the quarters as my next should are quarters. them. we our get with, last backfilling of The one appreciate all as I question, all couple the charging significant print disclosures but the over looking margin models start items, is So, you in

at in have quarter. last XXX as those out any margins trough expect year given did as margins network to to short-term you there We company. third us Are the a through sequentially how we are at quarter? the year? we obviously things was we that be Did of third of the says other apparent And them an played going as the But charging do point? second how the And and any items which gross gross right? here? troughed acceleration charging then or charging the there's things math talk charges in the basis probably -- Can you seasonality, year the of margins, play the network items this maybe build-outs gross points network far mentioned that expenses in of you dip disclose net these than install quarter. this ago more margins maybe So, the in there impact

have Craig. pushed X Quite ask QX, talked step we which But that margin let did about Stephanie We points. there, also in to on percentage charging the a call last about one-offs few things of in. some me in

is electricity In terms of you low either we It's where highest on X points? for want going Stephanie, expand the forward, to that of those tariffs typically have QX the But do buy. point. we

Sure, This exactly yes. is it, Badar.

XXX% and have there. So favorability the charging was QX, we drove because as breakage some a impacted break revenue, reminder, all did that revenue onetime margin that

in that saw the some June when $X.X then hit, tariff you month roughly summer costs was the is we amount seeing of start that seeing the that as And rise. do of adjustment. you So of million start in QX, sort onetime especially

clearly QX is shift bore full you to and already, the QX. charging you in seasonal see start where in the actually does it network So margin then see

XXXX has And I have we think network some onetime well. every period the adjustments. year, charging last adjustments also so some onetime QX in of did as sort And -- the margins even

that And forward, expected the sort would really is to unexpected so seasonality. going what see. focus in the some on is variances sometimes, of it does create with we margin you what need But

QX to looking see improve that hit then you and would expect back as in and QX, again, QX up out for in to QX. and And margin forecasting you're even bump you're so what

share can number the with X.X% And quarter. quarter, And Was possibly delta the us? in you that negative? in first mentioned either or second you the positive the

normally, partnership breakage some So we our with have that happens. of contracts,

contract that in QX. there breakage Our largest contract in our Nissan had was

large any And of QX, we ones. adjustments. were didn't series not a material In onetime sort is so have recurring. smaller that of There

of anything of there. all in there magnitude So, wasn't that kind

areas. Craig, series similar that magnitude, from out call a a to onetime of perspective, nothing adjustments that of smaller So, we in just various would adjust

take seen if improvement more about less think, you I slight charging margin the about a breakage talked to the QX, same We've clearly in that you this or Craig, gets Stephanie out it quarter. in we the you improves from economic margin. the unit this rate have had And quarter. than in see any improvements But in can charging first charge utilization. we lower also quarter slide, utilization price LCFS

impacted that's so little bit. And the margin a charging

than percentage And it's X%, revenue a is is of less total but shrinking, as LCFS so also margin. LCFS XXX%

charging to that your drive point, margin. Badar's in also So it network volatility will

-- margin. levels have also the think through terms pricing rest an to hold we're in network market, So the clearly that I that But the will impact of now, of can as we LCFS, expecting charging the right it with we're on rest this the current consistent of year.

Congrats on progress. the strong

comes question UBS. from from the line William of next Grippin Your

as or increasing of this you in higher the customer times going Or potentially just was rates? during variability more ability higher demand? again forward of wholesale back do to here to margin volatility margin the charging question see around charging a your stable Do just more first capture see as you drive helping to dynamic going My implementation see you pricing here. margin

doing now and on call. the we're I what this Really, main the is call part just -- of in spoke the about

just not chargers show build hope a day customers I want, build have increasingly are of think actually to at and up the and impact people we and where but sophistication when reached time level we they are whatever charging. of scale able chargers

in XX So, what secondly, the utilization challenges where what maximizing therefore, the trying so where we're across we're you if what demand got and will, where that's day, we're And all and requires achieve queuing. That's and us margin pricing. pricing, the that. of also requires charging different right growing us of to right the customers, having without -- sophisticated shifting platform have just hours data requires to subscription at use without quarter of utilization with that demand-based sophisticated day new throughout but -- at. And times charging get the allows the we've all pricing live capture. our That's doing. not and programs, did it as location-based also with database, going and to engagement customer we customers outreach It we're time to customer second

curious have establishing And how you continue the And extent the partnerships to would similar OEMs speak about to the OEM partner it, hear here in GM with you be partnerships. conversations to other to had as just them? on the future. going extent can been conversations the then I To with potentially you've with

great. The GM is partnership

and We very with very a them. strong long-standing relationship have

a I job operational we that we've over quarter call, funded partnership and year. a with more the this result done the is expect cash that's them. said, And have at Stephanie of that had beginning reasons maybe on go are one stalls of than we the both GM the strong of As nice

very going that's well. So

In terms discussions, for very other OEM we of they kind had year of of this a pilot infrastructure small very, deal us. earlier a of Toyota funded announced with where locations couple the construction

we're stations so, to And charging a have. that almost integration about ranging to from dozen dialogue we charging the to credits, in data dialogue with engaged help infrastructure locate drivers OEMs either their

intend So, with dialogue, and pleased with continue it. to we're we the

from of Our Company. comes next Needham Chris Pierce the & line from question

on what's being improvement charge think governor? based And control function cars about here? should I'm we tip you Like spear, the step Slide like charge can rate solar that rate at over see think XX. to if years. new to the of Like new as released putting are right that the the tip looking be seems spear. what in I for the the think Because to the and about couple next way of just all utilization, throughput about charge that out of want that there? the drives you rate rate

beginning That to expands. rate of slide, charge across in the mostly the so back they about XXX-kilowatt charge assuming of same year, same Americans a charger. last mix unit gone X lower to you get X XXXX vehicles, It's in vehicles mix are the chargers from XX XX% were we versus to to mix that continues to and are buying install The higher of of rates our simply network our EVgo XXX-kilowatt is economic years. with up expecting And function If go we're that charge today, electric Chris, charge XX% Those getting XX% that mostly in by over of what to by themselves about factors result XX% to get it's up as just rates to hopefully the up X just year. will this continue end will level in deploying. That In of which, OEMs on X that faster last the they in it to don't course, that the assumes assumes X charge were words, assumes no out year. vehicles years. improvement cars, other market rate are. bring technology,

as yeah, over several throughput inputs I is growing to the that's in I -- So the nicely have into rates X daily rates charging utilization years. some seasonality And you would charge charge quite for all there the rates charge would stall, charge that about out, say expect and of leverage us. operating continue next per which pointed see margin is rates.

the be lower summer charge higher winter rates in So, the and tend to months. months in

you sites growth? prepared really of your the competition to to the like, the curious pencil how I changes was you thought lessened, remarks, the according past And months? if X Tesla have algorithm about using will these the then competition with assuming the stalls has increase same guess I'm XX,XXX -- cetera, for don't versus trying stall just know et pace but what stalls I that to industry same for find is growth in I'm stalls, or like these

as minute look, ecosystem. a we've the got just partners board. relationships We we've with OEMs site excellent So ago, other with fantastic across were about the well got the as but relationships relationships hosts talking in

what that's the of from smaller differentiates the dozens in I U.S. think EVgo operators

prepared differentiates our go I of the sophisticated algorithms on put up stalls. in installed is are The than year also site just XXXX the charging what getting every we where prior. a remarks we proprietary locate the think selection better chart we that that everything I that into -- sites company and our better. very are had stalled stations the stuff we

set there us. that very we good great sites feel so, is of are out a that for there And

or I think in competition, of able it Tesla we but it's the relatively expect days terms to early we're is, continue journey In or of be that withdrawal at. slowdown to whatever still terms

goal of the I the to I've for accelerating of couple been of last our to be that of accelerate growth stalls, the is terms mean, the In stalls. talking quarters, financing pace about able

think Xx to financing no reaching or depends by And next would we of that upon actually the year more or the flow cash shareholders returns cash achieve. deploy flow breakeven. up we're that positive talked with to and so, I've these we're about to returns. be generating able breakeven, point these that that that potentially I Clearly, expect I rates at stalls stalls continue to and think us we economics the as the and more, But would if at long present, accelerating faster quantum EBITDA install as

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

do average how been to the this average? by take does quarter. attribute the industry rate what with of if now. step And the view, your XX% XX% wondering our could you asked lot compare to usage? on back, experienced. questions elaborate average In that A Congratulations I'm maybe have utilization on a this But you you've

growing they're charging without rideshare foreseeable multiple attracting of And growth affordable non-Tesla people versus question, to rates of continue seeing much due year-over-year to encourages grew are locations that today in year. Well, we've is again, home, point because autonomous charge non-Tesla seen which the charge vehicles. time, that sales we've majority actually out charging, tailwinds to the able faster. terms battery that's of vehicles, at of also earlier to seen to see XX% expect electrifying, the demand people tremendously for both to we vehicles, so public last faster We're the electric that's charge network new to the share strong in QX public vehicles underlying over vehicles, on of sales future our

grown utilization from than So, think in all why XX% has That's of the those it's XX% as said, I growth the And things month underlying the in what's throughput XX%. That's are VIO. Xx June. growth for Stephanie driving driving to faster demand.

that. with so, And pleased very we're

of on queuing said may are be don't to today. we encourage issues we In campaigns addition, as charge operators experience hours call, sophisticated I less at sophisticated reasonably point customers that are the day to the experiencing charge where now deploying all

fast But your charging I in average XX% does guess, EVgo, for average to locations maybe to compare specifically the rate industry that DC public how view? utilization in

has are get of these A, answer daily to know the programs able through have I that for a question utilization My reasons. to sophisticated number to definitively. pricing highway chart deploying day, subscription been best versus I Well, if be to be we throughput sites don't programs, that anybody able marketing stronger choose to rates And per locations, performance, terms to vintage be than very we've tend prior suburban locations our deploying keeps programs. in the in new expectation charge better, throughout getting locations showed sophisticated customers data of efforts, to stalls, over better algorithms we urban, is b, the the the that time which having and some years. have higher

better we're expect performing the than for reasons, think I I average. all So, market those that

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

We've you and in more with are and returns have yet in Well, look, of underlying our quarter. everyone. and have And scale can of much, EBITDA XXXX. the for continue providing I importantly, competitive look more see that be trajectory the years now to tailwinds business, multiple level potential. over the to EBITDA the operating thank charging think that And And everyone. you, on I the breakeven future benefit smaller strong public multiple dozens very that great think, a to strong sources a EVgo demand record growth another States. There has of had, clearly operators fast updates operators to come. path Thanks continues where reached advantage to leverage of forward you economics, very calls. I we the there's we on in we

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

may now You disconnect.