EV charging network operator EVgo has reported impressive second-quarter results, surpassing Wall Street’s expectations. The company’s revenue exceeded estimates, and it posted a narrower loss than anticipated. This positive performance is attributed to an increase in electric vehicle (EV) drivers using the EVgo network and a surge in revenue from its private-label eXtend unit. In light of these results, EVgo has also raised its guidance for the full year.
Strong Performance Numbers
EVgo’s second-quarter report revealed noteworthy figures that surpassed analysts’ consensus estimates. The company reported a loss per share of 8 cents, significantly outperforming the 27 cents per share that were expected. Additionally, EVgo’s revenue stood at $50.6 million, exceeding the anticipated $29.6 million. It is worth noting that the company faced a net loss of $21.5 million, or 8 cents per share, in contrast to a profit of $17 million, or 6 cents per share, during the same period last year when revenue was $9.1 million.
EVgo experienced accelerated growth in its network throughput, indicating an increased provision of electricity to its charging customers. In the second quarter, the network throughput grew by an impressive 147% year over year, reaching 24.9 gigawatt-hours. Furthermore, individual charging stalls witnessed a growth rate of approximately 30% on average. This enhanced throughput can be attributed to the rising number of EVs on the road, the utilization of more powerful EV batteries that demand greater charging power, and increased usage of EVgo’s chargers.
Success of the eXtend Unit
Another significant contributor to EVgo’s success was its “eXtend” unit. This division provides and manages chargers for business clients under their own brands. In the second quarter, eXtend generated approximately $33.3 million in revenue, accounting for nearly 66% of EVgo’s total revenue for the period. Prominent businesses such as General Motors, Pilot, and Chase have already joined the eXtend program, contributing to its strong performance.
As of June 30, EVgo operated or had under construction approximately 3,200 fast charging stalls, reflecting a slight increase from the end of the first quarter’s figure of about 3,100 stalls. Additionally, the company added over 82,000 new customer accounts during the period, resulting in a total of approximately 688,000 accounts as of June 30, representing a 55% year-over-year increase.
EVgo has revised its guidance for the full year, signaling confidence in its future prospects. The company now expects revenue between $120 million and $150 million, surpassing its prior guidance of $105 million to $150 million. Additionally, the adjusted EBITDA loss range has been refined to $68 million and $78 million, compared to the previous guidance of $60 million to $78 million. EVgo maintains its projections for the number of fast charging stalls in operation or under construction, with a target of between 3,400 and 4,000 stalls by the end of the year.
In a separate announcement, EVgo revealed that CEO Cathy Zoi will retire from her position in November. Zoi’s successor will be Badar Khan, an industry veteran with 25 years of experience in the energy sector and former president of National Grid’s U.S. operations. This leadership transition will be crucial in guiding EVgo through its next phase of growth and success.
To conclude, EVgo’s second-quarter results have exceeded expectations, showcasing the company’s ability to capitalize on the growing EV market. With increased network throughput, a thriving eXtend unit, expansion in charging stalls, and a growing customer base, EVgo is well-positioned for future success. The revised guidance further underscores the company’s confidence in its prospects. As it moves forward with a leadership transition, EVgo aims to maintain its position as a prominent player in the EV charging network space.
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