EVGO EVgo Inc

Achieves 6th Consecutive Quarter of Triple Digit Year-Over-Year Network Throughput Growth

Raises Midpoint of Total Revenue Guidance by $10 Million

• Revenue reached a record $66.6 million in the second quarter, representing an increase of 32% year-over-year.
• Charging network revenue totaled $36.4 million in the second quarter, an increase of 146% year-over-year, representing the 7th sequential quarter of double-digit charging revenue growth.
• Network throughput reached a record 66 gigawatt-hours (“GWh”) in the second quarter, an increase of 164% year-over-year, representing the 6th consecutive quarter of triple digit year-over-year growth.
• Added more than 220 new operational stalls during the second quarter, including EVgo eXtend™ stalls.
• Ended the second quarter with approximately 3,440 stalls in operation, including EVgo eXtend™ stalls.
• Added over 131,000 new customer accounts in the second quarter, reaching more than 1 million overall at quarter end.

EVgo Inc. (Nasdaq: EVGO) (“EVgo” or the “Company”) today announced results for the second quarter ended June 30, 2024. Management will host a conference call today at 11 am ET / 8 am PT to discuss EVgo’s results and other business highlights.

Revenue reached $66.6 million in the second quarter of 2024, compared to $50.6 million in the second quarter of 2023, representing 32% year-over-year growth. Revenue growth was driven by year-over-year increases in charging network revenues.

Network throughput increased to 66 GWh in the second quarter of 2024, compared to 25 GWh in the second quarter of 2023, representing 164% year-over-year growth. The Company added over 131,000 new customer accounts during the second quarter of 2024, a 60% year-over-year increase in new accounts. The overall number of customer accounts was more than 1 million at quarter end, an increase of 59% year-over-year.

“EVgo delivered yet another quarter of great financial and operating results, including the 7th sequential quarter of double-digit charging revenue growth,” said Badar Khan, EVgo’s CEO. “We are seeing continual record demand in the industry, which we are well situated to capture given our position as an owner operator and as evidenced by the tremendous growth in throughput and new customer accounts. We look forward to continuing to execute on our strategic priorities and building the critically important, fast charging, OEM-agnostic infrastructure necessary to deliver an excellent customer experience for EV drivers across the nation. We are confident this momentum will result in strong returns for our shareholders.”

Business Highlights

• Subaru Charging Credit: Subaru extended their charging credit program with EVgo, giving new Subaru Solterra drivers a $500 EVgo charging credit.
• Stall Development: The Company ended the quarter with approximately 3,440 stalls in operation, including EVgo eXtend™ stalls. EVgo added over 220 new DC fast charging stalls during the quarter, including EVgo eXtend™ stalls.
• EVgo eXtend™: EVgo ended the quarter with 190 operational EVgo eXtend™ stalls.
• Network Utilization: Utilization on the EVgo network in the second quarter of 2024 was 20%, up from approximately 11% in the second quarter of 2023.
• Average Daily Network Throughput: Average daily throughput per stall for the EVgo network was 227 kilowatt hours per day in the second quarter of 2024, an increase of 103% compared to 112 kilowatt hours per day in the second quarter of 2023.
• Commercial Charging: EVgo’s commercial charging business continues to grow driven by rideshare, with throughput increasing nearly threefold year-over-year.
• EVgo Autocharge+: Autocharge+ was over 18% of total charging sessions initiated in the second quarter of 2024, and the number of Autocharge+ charging sessions in the second quarter increased 202% compared to the second quarter of 2023.
• PlugShare: PlugShare reached 5.3 million registered users and achieved 8.5 million check-ins since inception.

Financial & Operational Highlights

The below represent summary financial and operational figures for the second quarter of 2024.

• Revenue of $66.6 million
• Network Throughput1 of 66 gigawatt-hours
• Customer Account Additions of over 131,000 accounts
• Gross Profit of $6.4 million
• Net Loss of $29.6 million
• Adjusted Gross Profit2 of $17.7 million
• Adjusted EBITDA2 of ($8.0) million
• Net Cash Provided By Operating Activities of $7.6 million
• Capital Expenditures of $24.2 million
• Capital Expenditures, Net of Capital Offsets2 of $13.8 million

____________________

1

Network throughput for EVgo network excludes EVgo eXtend™ sites.

2

Adjusted Gross Profit, Adjusted EBITDA, and Capital Expenditures, Net of Capital Offsets are non-GAAP measures and have not been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”). For a definition of these non-GAAP measures and a reconciliation to the most directly comparable GAAP measure, please see “Definitions of Non-GAAP Financial Measures” and “Reconciliations of Non-GAAP Financial Measures” included elsewhere in this release.

 

(unaudited, dollars in thousands)

 

Q2'24

 

Q2'23

 

Better (Worse)

 

 

Q2'24 YTD

 

Q2'23 YTD

 

Better (Worse)

Network Throughput (GWh)

 

 

66

 

 

 

25

 

 

164

%

 

 

 

119

 

 

 

43

 

 

177

%

Revenue

 

$

66,619

 

 

$

50,552

 

 

32

%

 

 

$

121,777

 

 

$

75,852

 

 

61

%

Gross profit

 

$

6,398

 

 

$

5,529

 

 

16

%

 

 

$

13,239

 

 

$

5,570

 

 

138

%

Gross margin

 

 

9.6

%

 

 

10.9

%

 

(130) bps

 

 

 

10.9

%

 

 

7.3

%

 

360 bps

Net loss

 

$

(29,610

)

 

$

(21,539

)

 

(37

)%

 

 

$

(57,803

)

 

$

(70,620

)

 

18

%

Adjusted Gross Profit1

 

$

17,658

 

 

$

12,853

 

 

37

%

 

 

$

34,945

 

 

$

19,258

 

 

81

%

Adjusted Gross Margin1

 

 

26.5

%

 

 

25.4

%

 

110 bps

 

 

 

28.7

%

 

 

25.4

%

 

330 bps

Adjusted EBITDA1

 

$

(7,982

)

 

$

(10,553

)

 

24

%

 

 

$

(15,189

)

 

$

(30,620

)

 

50

%

____________________

1

Adjusted Gross Profit, Adjusted Gross Margin, and Adjusted EBITDA are non-GAAP measures and have not been prepared in accordance with GAAP. For a definition of these non-GAAP measures and a reconciliation to the most directly comparable GAAP measures, please see “Definitions of Non-GAAP Financial Measures” and “Reconciliations of Non-GAAP Financial Measures” included elsewhere in these materials.

(unaudited, dollars in thousands)

 

Q2'24

 

Q2'23

 

Change

 

 

Q2'24 YTD

 

Q2'23 YTD

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows provided by (used in) operating activities

 

$

7,556

 

$

(3,182

)

 

337

%

 

 

$

(6,526

)

 

$

(22,525

)

 

71

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP capital expenditures

 

$

24,196

 

 

$

34,811

 

 

(30

)%

 

 

$

45,267

 

 

$

100,057

 

 

(55

)%

Capital offsets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OEM infrastructure payments

 

$

5,956

 

 

$

6,022

 

 

(1

)%

 

 

$

11,782

 

 

$

9,917

 

 

19

%

Proceeds from capital-build funding

 

 

4,459

 

 

 

2,040

 

 

119

%

 

 

 

6,139

 

 

 

4,256

 

 

44

%

Total capital offsets

 

 

10,415

 

 

 

8,062

 

 

29

%

 

 

 

17,921

 

 

 

14,173

 

 

26

%

Capital Expenditures, Net of Capital Offsets1

 

$

13,781

 

 

$

26,749

 

 

(48

)%

 

 

$

27,346

 

 

$

85,884

 

 

(68

)%

____________________

1

Capital Expenditures, Net of Capital Offsets are non-GAAP measures and have not been prepared in accordance with GAAP. For a definition of these non-GAAP measures and a reconciliation to the most directly comparable GAAP measures, please see “Definitions of Non-GAAP Financial Measures” and “Reconciliations of Non-GAAP Financial Measures” included elsewhere in these materials.

 

 

 

6/30/2024

 

6/30/2023

 

Increase

Stalls in operation or under construction:

 

 

 

 

 

 

EVgo Network

 

3,690

 

3,180

 

16%

EVgo eXtend™

 

480

 

—

 

*

Total stalls in operation or under construction

 

4,170

 

3,180

 

31%

 

 

 

 

 

 

 

Stalls in operation:

 

 

 

 

 

 

EVgo Network

 

3,250

 

2,520

 

29%

EVgo eXtend™

 

190

 

—

 

*

Total stalls in operation

 

3,440

 

2,520

 

37%

____________________

*

Percentage not meaningful.

2024 Financial Guidance

EVgo is updating 2024 guidance as follows:

• Raising the midpoint of total revenue guidance by $10 million with total revenue guidance of $240 - $270 million
• Adjusted EBITDA* of ($44) – ($34) million

____________________

*

A reconciliation of projected Adjusted EBITDA (non-GAAP) to net income (loss), the most directly comparable GAAP measure, is not provided because certain measures, including share-based compensation expense, which is excluded from Adjusted EBITDA, cannot be reasonably calculated or predicted at this time without unreasonable efforts. For a definition of Adjusted EBITDA, please see “Definitions of Non-GAAP Financial Measures” included elsewhere in this release.

 

Conference Call Information

A live audio webcast and conference call for EVgo’s second quarter earnings release will be held today at 11 am ET / 8 am PT. The webcast will be available at investors.evgo.com, and the dial-in information for those wishing to access via phone is:

Toll Free: (888) 340-5044 (for U.S. callers) Toll/International: (646) 960-0363 (for callers outside the U.S.) Conference ID: 6304708

This press release, along with other investor materials that will be used or referred to during the webcast and conference call, including a slide presentation and reconciliations of certain non-GAAP measures to their nearest GAAP measures, will also be available on that site.

About EVgo

EVgo (Nasdaq: EVGO) is a leader in electric vehicle charging solutions, building and operating the infrastructure and tools needed to expedite the mass adoption of electric vehicles for individual drivers, rideshare and commercial fleets, and businesses. EVgo is one of the nation’s largest public fast charging networks, featuring over 1,000 fast charging locations across more than 35 states, including stations built through EVgo eXtend™, its white label service offering. EVgo is accelerating transportation electrification through partnerships with automakers, fleet and rideshare operators, retail hosts such as grocery stores, shopping centers, and gas stations, policy leaders, and other organizations. With a rapidly growing network and unique service offerings for drivers and partners including EVgo Optima™, EVgo Inside™, EVgo Rewards™, and Autocharge+, EVgo enables a world-class charging experience where drivers live, work, travel and play.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “estimate,” “plan,” “project,” “forecast,” “intend,” “will,” “expect,” “anticipate,” “believe,” “seek,” “target,” “assume” or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements are based on management’s current expectations or beliefs and are subject to numerous assumptions, risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. You are cautioned, therefore, against relying on any of these forward-looking statements. These forward-looking statements include, but are not limited to, express or implied statements regarding EVgo’s future financial and operating performance, revenues, market size and opportunity, capital expenditures and offsets; EVgo’s confidence that “this momentum will result in strong returns for our shareholders”; EVgo’s progress on its network buildout, customer experience, technological capabilities and cost efficiencies; growth in the Company’s throughput; growth in the Company’s commercial charging business; and the Company’s collaboration with partners. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of EVgo’s management and are not predictions of actual performance. There are a significant number of factors that could cause actual results to differ materially from the statements made in this press release, including changes or developments in the broader general market; EVgo’s dependence on the widespread adoption of EVs and growth of the EV and EV charging markets; competition from existing and new competitors; EVgo’s ability to expand into new service markets, grow its customer base and manage its operations; the risks associated with cyclical demand for EVgo’s services and vulnerability to industry downturns and regional or national downturns; fluctuations in EVgo’s revenue and operating results; unfavorable conditions or disruptions in the capital and credit markets and EVgo’s ability to obtain additional financing on commercially reasonable terms; EVgo’s ability to generate cash, service indebtedness and incur additional indebtedness; any current, pending or future legislation, regulations or policies that could impact EVgo’s business, results of operations and financial condition, including regulations impacting the EV charging market and government programs designed to drive broader adoption of EVs and any reduction, modification or elimination of such programs; EVgo’s ability to adapt its assets and infrastructure to changes in industry and regulatory standards and market demands related to EV charging; impediments to EVgo’s expansion plans, including permitting and utility-related delays; EVgo’s ability to integrate any businesses it acquires; EVgo’s ability to recruit and retain experienced personnel; risks related to legal proceedings or claims, including liability claims; EVgo’s dependence on third parties, including hardware and software vendors and service providers, utilities and permit-granting entities; supply chain disruptions, inflation and other increases in expenses; safety and environmental requirements or regulations that may subject EVgo to unanticipated liabilities or costs; EVgo’s ability to enter into and maintain valuable partnerships with commercial or public-entity property owners, landlords and/or tenants (collectively “Site Hosts”), original equipment manufacturers (“OEMs”), fleet operators and suppliers; EVgo’s ability to maintain, protect and enhance EVgo’s intellectual property; and general economic or political conditions, including the conflicts in Ukraine, Israel and the broader Middle East region, and elevated rates of inflation and associated changes in monetary policy. Additional risks and uncertainties that could affect the Company’s financial results are included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations of EVgo” in EVgo’s most recent Annual Report on Form 10-K, filed with the Securities and Exchange Commission (the “SEC”), as well as its other SEC filings, copies of which are available on EVgo’s website at investors.evgo.com, and on the SEC’s website at www.sec.gov. All forward-looking statements in this press release are based on information available to EVgo as of the date hereof, and EVgo does not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made, except as required by applicable law.

Financial Statements

EVgo Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

 

 

 

 

 

 

 

 

 

June 30,

 

December 31,

 

 

2024

 

2023

(in thousands)

 

(unaudited)

 

 

 

Assets

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash, cash equivalents and restricted cash

 

$

162,736

 

 

$

209,146

 

Accounts receivable, net of allowance of $553 and $1,116 as of June 30, 2024 and December 31, 2023, respectively

 

 

34,771

 

 

 

34,882

 

Accounts receivable, capital-build

 

 

13,217

 

 

 

9,297

 

Prepaid expenses and other current assets

 

 

14,747

 

 

 

14,081

 

Total current assets

 

 

225,471

 

 

 

267,406

 

Property, equipment and software, net

 

 

403,418

 

 

 

389,227

 

Operating lease right-of-use assets

 

 

79,444

 

 

 

67,724

 

Other assets

 

 

2,098

 

 

 

2,208

 

Intangible assets, net

 

 

43,845

 

 

 

48,997

 

Goodwill

 

 

31,052

 

 

 

31,052

 

Total assets

 

$

785,328

 

 

$

806,614

 

 

 

 

 

 

 

 

Liabilities, redeemable noncontrolling interest and stockholders’ equity (deficit)

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Accounts payable

 

$

16,165

 

 

$

10,133

 

Accrued liabilities

 

 

38,742

 

 

 

40,549

 

Operating lease liabilities, current

 

 

6,484

 

 

 

6,018

 

Deferred revenue, current1

 

 

28,610

 

 

 

32,349

 

Other current liabilities

 

 

94

 

 

 

298

 

Total current liabilities

 

 

90,095

 

 

 

89,347

 

Operating lease liabilities, noncurrent

 

 

73,239

 

 

 

61,987

 

Earnout liability, at fair value

 

 

345

 

 

 

654

 

Asset retirement obligations

 

 

19,829

 

 

 

18,232

 

Capital-build liability

 

 

41,479

 

 

 

35,787

 

Deferred revenue, noncurrent

 

 

64,290

 

 

 

55,091

 

Warrant liabilities, at fair value

 

 

2,746

 

 

 

5,141

 

Total liabilities

 

 

292,023

 

 

 

266,239

 

Commitments and contingencies

 

 

 

 

 

 

Redeemable noncontrolling interest

 

 

479,710

 

 

 

700,964

 

Stockholders' equity (deficit)

 

 

13,595

 

 

 

(160,589

)

Total liabilities, redeemable noncontrolling interest and stockholders' equity (deficit)

 

$

785,328

 

 

$

806,614

 

____________________

1

In 2024, deferred revenue, current, and customer deposits were combined into a single line item. Previously reported amounts have been updated to conform to the current period presentation.

 

EVgo Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

Six Months Ended

 

June 30,

June 30,

(in thousands, except per share data)

2024

2023

Change %

2024

2023

Change %

Revenue

 

 

 

 

 

 

 

 

 

 

Charging, retail

$

22,336

 

$

9,085

 

146

%

$

40,662

 

$

15,700

 

159

%

Charging, commercial

 

7,094

 

 

2,418

 

193

%

 

12,933

 

 

4,133

 

213

%

Charging, OEM

 

3,638

 

 

986

 

269

%

 

6,370

 

 

1,538

 

314

%

Regulatory credit sales

 

1,749

 

 

1,613

 

8

%

 

3,783

 

 

2,828

 

34

%

Network, OEM

 

1,627

 

 

742

 

119

%

 

5,050

 

 

3,441

 

47

%

Total charging network

 

36,444

 

 

14,844

 

146

%

 

68,798

 

 

27,640

 

149

%

eXtend

 

27,667

 

 

33,281

 

(17

)%

 

46,818

 

 

43,573

 

7

%

Ancillary

 

2,508

 

 

2,427

 

3

%

 

6,161

 

 

4,639

 

33

%

Total revenue

 

66,619

 

 

50,552

 

32

%

 

121,777

 

 

75,852

 

61

%

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

 

 

 

 

 

 

 

 

 

Charging network1

 

23,979

 

 

12,009

 

100

%

 

43,489

 

 

21,988

 

98

%

Other1

 

25,093

 

 

25,731

 

(2

)%

 

43,541

 

 

34,669

 

26

%

Depreciation, net of capital-build amortization

 

11,149

 

 

7,283

 

53

%

 

21,508

 

 

13,625

 

58

%

Total cost of sales

 

60,221

 

 

45,023

 

34

%

 

108,538

 

 

70,282

 

54

%

Gross profit

 

6,398

 

 

5,529

 

16

%

 

13,239

 

 

5,570

 

138

%

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

General and administrative

 

33,827

 

 

34,333

 

(1

)%

 

68,053

 

 

72,222

 

(6

)%

Depreciation, amortization and accretion

 

4,958

 

 

4,783

 

4

%

 

9,943

 

 

9,567

 

4

%

Total operating expenses

 

38,785

 

 

39,116

 

(1

)%

 

77,996

 

 

81,789

 

(5

)%

Operating loss

 

(32,387

)

 

(33,587

)

4

%

 

(64,757

)

 

(76,219

)

15

%

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

2,064

 

 

2,199

 

(6

)%

 

4,337

 

 

4,197

 

3

%

Other expense, net

 

(8

)

 

(1

)

(700

)%

 

(17

)

 

—

 

*

Change in fair value of earnout liability

 

101

 

 

2,496

 

(96

)%

 

309

 

 

433

 

(29

)%

Change in fair value of warrant liabilities

 

677

 

 

7,391

 

(91

)%

 

2,395

 

 

1,011

 

137

%

Total other income, net

 

2,834

 

 

12,085

 

(77

)%

 

7,024

 

 

5,641

 

25

%

Loss before income tax expense

 

(29,553

)

 

(21,502

)

(37

)%

 

(57,733

)

 

(70,578

)

18

%

Income tax expense

 

(57

)

 

(37

)

(54

)%

 

(70

)

 

(42

)

(67

)%

Net loss

 

(29,610

)

 

(21,539

)

(37

)%

 

(57,803

)

 

(70,620

)

18

%

Less: net loss attributable to redeemable noncontrolling interest

 

(19,233

)

 

(14,513

)

(33

)%

 

(37,593

)

 

(50,518

)

26

%

Net loss attributable to Class A common stockholders

$

(10,377

)

$

(7,026

)

(48

)%

$

(20,210

)

$

(20,102

)

(1

)%

 

 

 

 

 

 

 

 

 

 

 

Net loss per share to Class A common stockholders, basic and diluted

$

(0.10

)

$

(0.08

)

 

$

(0.19

)

$

(0.25

)

 

Weighted average common stock outstanding, basic and diluted

 

105,584

 

 

85,320

 

 

 

105,130

 

 

78,196

 

 

____________________

*

Not meaningful

1

In the fourth quarter of 2023, the Company changed the presentation of cost of sales to disaggregate such costs between “charging network” and “other.” Previously reported amounts have been updated to conform to the current presentation.

 

EVgo Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(unaudited)

 

 

 

 

 

 

 

 

 

Six Months Ended

 

 

June 30,

(in thousands)

 

2024

 

2023

Cash flows from operating activities

 

 

 

 

 

 

Net loss

 

$

(57,803

)

 

$

(70,620

)

Adjustments to reconcile net loss to net cash used in operating activities

 

 

 

 

 

 

Depreciation, amortization and accretion

 

 

31,451

 

 

 

23,192

 

Net loss on disposal of property and equipment, net of insurance recoveries, and impairment expense

 

 

5,497

 

 

 

6,008

 

Share-based compensation

 

 

10,103

 

 

 

14,922

 

Change in fair value of earnout liability

 

 

(309

)

 

 

(433

)

Change in fair value of warrant liabilities

 

 

(2,395

)

 

 

(1,011

)

Other

 

 

5

 

 

 

(155

)

Changes in operating assets and liabilities

 

 

 

 

 

 

Accounts receivable, net

 

 

112

 

 

 

(11,422

)

Prepaid expenses, other current assets and other assets

 

 

1,324

 

 

 

3,779

 

Operating lease assets and liabilities, net

 

 

(3

)

 

 

642

 

Accounts payable

 

 

6,130

 

 

 

(2,872

)

Accrued liabilities

 

 

(5,764

)

 

 

2,925

 

Deferred revenue1

 

 

5,461

 

 

 

12,458

 

Other current and noncurrent liabilities

 

 

(335

)

 

 

62

 

Net cash used in operating activities

 

 

(6,526

)

 

 

(22,525

)

Cash flows from investing activities

 

 

 

 

 

 

Capital expenditures

 

 

(45,267

)

 

 

(100,057

)

Proceeds from insurance for property losses

 

 

152

 

 

 

159

 

Net cash used in investing activities

 

 

(45,115

)

 

 

(99,898

)

Cash flows from financing activities

 

 

 

 

 

 

Proceeds from issuance of Class A common stock under the ATM

 

 

—

 

 

 

5,828

 

Proceeds from issuance of Class A common stock under the equity offering

 

 

—

 

 

 

128,023

 

Proceeds from capital-build funding

 

 

6,139

 

 

 

4,256

 

Payments of deferred debt issuance costs

 

 

(908

)

 

 

—

 

Payments of deferred equity issuance costs

 

 

—

 

 

 

(4,751

)

Net cash provided by financing activities

 

 

5,231

 

 

 

133,356

 

Net (decrease) increase in cash, cash equivalents and restricted cash

 

 

(46,410

)

 

 

10,933

 

Cash, cash equivalents and restricted cash, beginning of period

 

 

209,146

 

 

 

246,493

 

Cash, cash equivalents and restricted cash, end of period

 

$

162,736

 

 

$

257,426

 

____________________

1

In 2024, deferred revenue, current, and customer deposits were combined into a single line item. Previously reported amounts have been updated to conform to the current period presentation.

 

Use of Non-GAAP Financial Measures

To supplement EVgo’s financial information, which is prepared and presented in accordance with GAAP, EVgo uses certain non-GAAP financial measures. The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. EVgo uses these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. EVgo believes that these non-GAAP financial measures provide meaningful supplemental information regarding the Company’s performance by excluding certain items that may not be indicative of EVgo’s recurring core business operating results.

EVgo believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing EVgo’s performance. These non-GAAP financial measures also facilitate management’s internal comparisons to the Company’s historical performance. EVgo believes these non-GAAP financial measures are useful to investors both because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making and (2) they are used by EVgo’s institutional investors and the analyst community to help them analyze the health of EVgo’s business.

For more information on these non-GAAP financial measures, including reconciliations to the most comparable GAAP measures, please see the sections titled “Definitions of Non-GAAP Financial Measures” and “Reconciliations of Non-GAAP Financial Measures.”

Definitions of Non-GAAP Financial Measures

This release includes some, but not all of the following non-GAAP financial measures, in each case as defined below: “Charging Network Margin,” “Adjusted Cost of Sales,” “Adjusted Cost of Sales as a Percentage of Revenue,” “Adjusted Gross Profit (Loss),” “Adjusted Gross Margin,” “Adjusted General and Administrative Expenses,” “Adjusted General and Administrative Expenses as a Percentage of Revenue,” “EBITDA,” “EBITDA Margin,” “Adjusted EBITDA,” “Adjusted EBITDA Margin,” and “Capital Expenditures, Net of Capital Offsets.” With respect to Capital Expenditures, Net of Capital Offsets, pursuant to the terms of certain OEM contracts, EVgo is paid well in advance of when revenue can be recognized, and usually, the payment is tied to the number of stalls that commence operations under the applicable contractual arrangement while the related revenue is deferred at the time of payment and is recognized as revenue over time as EVgo provides charging and other services to the OEM and the OEM’s customers. EVgo management therefore uses these measures internally to establish forecasts, budgets, and operational goals to manage and monitor its business, including the cash used for, and the return on, its investment in its charging infrastructure. EVgo believes that these measures are useful to investors in evaluating EVgo’s performance and help to depict a meaningful representation of the performance of the underlying business, enabling EVgo to evaluate and plan more effectively for the future.

Charging Network Margin, Adjusted Cost of Sales, Adjusted Cost of Sales as a Percentage of Revenue, Adjusted Gross Profit (Loss), Adjusted Gross Margin, Adjusted General and Administrative Expenses, Adjusted General and Administrative Expenses as a Percentage of Revenue, EBITDA, EBITDA Margin, Adjusted EBITDA, Adjusted EBITDA Margin and Capital Expenditures, Net of Capital Offsets are not prepared in accordance with GAAP and may be different from non-GAAP financial measures used by other companies. These measures should not be considered as measures of financial performance under GAAP and the items excluded from or included in these metrics are significant components in understanding and assessing EVgo’s financial performance. These metrics should not be considered as alternatives to net income (loss) or any other performance measures derived in accordance with GAAP.

EVgo defines Charging Network Margin as total charging network revenue less charging network cost of sales divided by total charging network revenue. EVgo defines Adjusted Cost of Sales as cost of sales before (i) depreciation, net of capital-build amortization, and (ii) share-based compensation. EVgo defines Adjusted Cost of Sales as a Percentage of Revenue as Adjusted Cost of Sales as a percentage of revenue. EVgo defines Adjusted Gross Profit (Loss) as revenue less Adjusted Cost of Sales. EVgo defines Adjusted Gross Margin as Adjusted Gross Profit (Loss) as a percentage of revenue. EVgo defines Adjusted General and Administrative Expenses as general and administrative expenses before (i) share-based compensation, (ii) loss on disposal of property and equipment, net of insurance recoveries, and impairment expense, (iii) bad debt expense (recoveries), and (iv) certain other items that management believes are not indicative of EVgo’s ongoing performance. EVgo defines Adjusted General and Administrative Expenses as a Percentage of Revenue as Adjusted General and Administrative Expenses as a percentage of revenue. EVgo defines EBITDA as net income (loss) before (i) depreciation, net of capital-build amortization, (ii) amortization, (iii) accretion, (iv) interest income, (v) interest expense, and (vi) income tax expense (benefit). EVgo defines EBITDA Margin as EBITDA as a percentage of revenue. EVgo defines Adjusted EBITDA as EBITDA plus (i) share-based compensation, (ii) loss on disposal of property and equipment, net of insurance recoveries, and impairment expense, (iii) loss (gain) on investments, (iv) bad debt expense (recoveries), (v) change in fair value of earnout liability, (vi) change in fair value of warrant liabilities, and (vii) certain other items that management believes are not indicative of EVgo’s ongoing performance. EVgo defines Adjusted EBITDA Margin as Adjusted EBITDA as a percentage of revenue. EVgo defines Capital Expenditures, Net of Capital Offsets as capital expenditures adjusted for the following capital offsets: (i) all payments under OEM infrastructure agreements excluding any amounts directly attributable to OEM customer charging credit programs and pass-through of non-capital expense reimbursements, and (ii) proceeds from capital-build funding. The tables below present quantitative reconciliations of these measures to their most directly comparable GAAP measures as described in this paragraph.

Reconciliations of Non-GAAP Financial Measures

The following unaudited table presents a reconciliation of EBITDA, EBITDA Margin, Adjusted EBITDA, and Adjusted EBITDA Margin to the most directly comparable GAAP measure:

(unaudited, dollars in thousands)

Q2'24

 

Q2'23

 

Change

 

 

Q2'24 YTD

 

Q2'23 YTD

 

Change

 

 

 

 

 

 

 

 

 

GAAP revenue

$

66,619

 

$

50,552

 

32

%

$

121,777

 

$

75,852

 

61

%

 

 

 

 

 

 

 

 

 

 

 

GAAP net loss

$

(29,610

)

$

(21,539

)

(37

)%

$

(57,803

)

$

(70,620

)

18

%

GAAP net loss margin

 

(44.4

%)

 

(42.6

%)

(180) bps

 

(47.5

)%

 

(93.1

)%

4,560 bps

 

 

 

 

 

 

 

 

 

 

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

Depreciation, net of capital-build amortization

 

11,288

 

 

7,407

 

52

%

 

21,764

 

 

13,875

 

57

%

Amortization

 

4,342

 

 

4,117

 

5

%

 

8,805

 

 

8,236

 

7

%

Accretion

 

477

 

 

542

 

(12

)%

 

882

 

 

1,081

 

(18

)%

Interest income

 

(2,064

)

 

(2,199

)

6

%

 

(4,337

)

 

(4,197

)

(3

)%

Interest expense

 

—

 

 

—

 

* %

 

—

 

 

—

 

* %

Income tax expense

 

57

 

 

37

 

54

%

 

70

 

 

42

 

67

%

EBITDA

$

(15,510

)

$

(11,635

)

(33

)%

$

(30,619

)

$

(51,583

)

41

%

EBITDA margin

 

(23.3

%)

 

(23.0

%)

(30) bps

 

(25.1

)%

 

(68.0

)%

4,290 bps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

Share-based compensation

$

5,402

 

$

8,495

 

(36

)%

 

10,103

 

 

14,922

 

(32

)%

Loss on disposal of property and equipment, net of insurance recoveries, and impairment expense

 

2,757

 

 

2,389

 

15

%

 

5,497

 

 

5,849

 

(6

)%

Loss on investments

 

—

 

 

5

 

(100

)%

 

5

 

 

4

 

25

%

Bad debt expense

 

81

 

 

56

 

45

%

 

311

 

 

153

 

103

%

Change in fair value of earnout liability

 

(101

)

 

(2,496

)

96

%

 

(309

)

 

(433

)

29

%

Change in fair value of warrant liabilities

 

(677

)

 

(7,391

)

91

%

 

(2,395

)

 

(1,011

)

(137

)%

Other1

 

66

 

 

24

 

175

%

 

2,218

 

 

1,479

 

50

%

Total adjustments

 

7,528

 

 

1,082

 

596

%

 

15,430

 

 

20,963

 

(26

)%

Adjusted EBITDA

$

(7,982

)

$

(10,553

)

24

%

$

(15,189

)

$

(30,620

)

50

%

Adjusted EBITDA Margin

 

(12.0

%)

 

(20.9

%)

890 bps

 

(12.5

%)

 

(40.4

)%

2,790 bps

____________________

*

Percentage greater than 999%, bps greater than 9,999 or not meaningful.

1

For the six months ended June 30, 2024, comprised primarily of costs related to the organizational realignment announced by the Company on January 17, 2024. For the six months ended June 30, 2023, comprised primarily of costs related to the previous reorganization of Company resources announced by the Company on February 23, 2023 and the petition filed by EVgo in the Delaware Court of Chancery in February 2023 seeking validation of EVgo's charter and share structure (the "205 Petition").

The following unaudited table presents a reconciliation of Charging Network Margin to the most directly comparable GAAP measures:

(unaudited, dollars in thousands)

Q2'24

 

Q2'23

 

Change

 

 

Q2'24 YTD

 

Q2'23 YTD

 

Change

 

 

 

 

 

 

 

 

 

 

 

GAAP total charging network revenue

$

36,444

 

$

14,844

 

146

%

$

68,798

 

$

27,640

 

149

%

GAAP charging network cost of sales

 

23,979

 

 

12,009

 

100

%

 

43,489

 

 

21,988

 

98

%

Charging Network Margin

 

34.2

%

 

19.1

%

1,510 bps

 

36.8

%

 

20.4

%

1,640 bps

 

The following unaudited table presents a reconciliation of Adjusted Cost of Sales, Adjusted Cost of Sales as a Percentage of Revenue, Adjusted Gross Profit and Adjusted Gross Margin to the most directly comparable GAAP measures:

(unaudited, dollars in thousands)

Q2'24

 

Q2'23

 

Change

 

 

Q2'24 YTD

 

Q2'23 YTD

 

Change

 

 

 

 

 

 

 

 

 

 

 

GAAP revenue

$

66,619

 

$

50,552

 

32

%

$

121,777

 

$

75,852

 

61

%

GAAP cost of sales

 

60,221

 

 

45,023

 

34

%

 

108,538

 

 

70,282

 

54

%

GAAP gross profit

$

6,398

 

$

5,529

 

16

%

$

13,239

 

$

5,570

 

138

%

GAAP cost of sales as a percentage of revenue

 

90.4

%

 

89.1

%

130 bps

 

89.1

%

 

92.7

%

(360) bps

GAAP gross margin

 

9.6

%

 

10.9

%

(130) bps

 

10.9

%

 

7.3

%

360 bps

 

 

 

 

 

 

 

 

 

 

 

Adjustments:

 

 

 

 

 

 

 

 

Depreciation, net of capital-build amortization

$

11,149

 

$

7,283

 

53

%

$

21,508

 

$

13,625

 

58

%

Share-based compensation

 

111

 

 

41

 

171

%

 

198

 

 

63

 

214

%

Total adjustments

 

11,260

 

 

7,324

 

54

%

 

21,706

 

 

13,688

 

59

%

Adjusted Cost of Sales

$

48,961

 

$

37,699

 

30

%

$

86,832

 

$

56,594

 

53

%

Adjusted Cost of Sales as a Percentage of Revenue

 

73.5

%

 

74.6

%

(110) bps

 

71.3

%

 

74.6

%

(330) bps

 

 

 

 

 

 

 

 

 

 

 

Adjusted Gross Profit

$

17,658

 

$

12,853

 

37

%

$

34,945

 

$

19,258

 

81

%

Adjusted Gross Margin

 

26.5

%

 

25.4

%

110 bps

 

28.7

%

 

25.4

%

330 bps

 

The following unaudited table presents a reconciliation of Adjusted General and Administrative Expenses and Adjusted General and Administrative Expenses as a Percentage of Revenue to the most directly comparable GAAP measures:

(unaudited, dollars in thousands)

Q2'24

Q2'23

Change

Q2'24 YTD

Q2'23 YTD

Change

 

 

 

 

 

 

 

 

 

 

 

GAAP revenue

$

66,619

 

$

50,552

 

32

%

$

121,777

 

$

75,852

 

61

%

GAAP general and administrative expenses

$

33,827

 

$

34,333

 

(1

)%

$

68,053

 

$

72,222

 

(6

)%

GAAP general and administrative expenses as a percentage of revenue

 

50.8

%

 

67.9

%

(1,710) bps

 

55.9

%

 

95.2

%

(3,930) bps

 

 

 

 

 

 

 

 

 

 

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

Share-based compensation

$

5,291

 

$

8,454

 

(37

)%

$

9,905

 

$

14,859

 

(33

)%

Loss on disposal of property and equipment, net of insurance recoveries, and impairment expense

 

2,757

 

 

2,389

 

15

%

 

5,497

 

 

5,849

 

(6

)%

Bad debt expense

 

81

 

 

56

 

45

%

 

311

 

 

153

 

103

%

Other1

 

66

 

 

24

 

175

%

 

2,218

 

 

1,479

 

50

%

Total adjustments

 

8,195

 

 

10,923

 

(25

)%

 

17,931

 

 

22,340

 

(20

)%

Adjusted General and Administrative Expenses

$

25,632

 

$

23,410

 

9

%

$

50,122

 

$

49,882

 

0

%

Adjusted General and Administrative Expenses as a Percentage of Revenue

 

38.5

%

 

46.3

%

(780) bps

 

41.2

%

 

65.8

%

(2,460) bps

____________________

1

For the six months ended June 30, 2024, comprised primarily of costs related to the organizational realignment announced by the Company on January 17, 2024. For the six months ended June 30, 2023, comprised primarily of costs related to the previous reorganization of Company resources announced by the Company on February 23, 2023 and the 205 Petition.

 

The following unaudited table presents a reconciliation of Capital Expenditures, Net of Capital Offsets, to the most directly comparable GAAP measure:

(unaudited, dollars in thousands)

Q2'24

Q2'23

Change

Q2'24 YTD

Q2'23 YTD

Change

 

 

 

 

 

 

 

 

 

 

 

GAAP capital expenditures

$

24,196

$

34,811

(30

)%

$

45,267

$

100,057

(55

)%

 

 

 

 

 

 

 

 

 

 

 

Capital offsets:

 

 

 

 

 

 

 

 

 

 

OEM infrastructure payments

$

5,956

$

6,022

(1

)%

$

11,782

$

9,917

19

%

Proceeds from capital-build funding

 

4,459

 

2,040

119

%

 

6,139

 

4,256

44

%

Total capital offsets

 

10,415

 

8,062

29

%

 

17,921

 

14,173

26

%

Capital Expenditures, Net of Capital Offsets

$

13,781

$

26,749

(48

)%

$

27,346

$

85,884

(68

)%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240801376933/en/

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