EVgo shares are surging after fourth-quarter results trounce Wall Street estimates

Earnings

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U.S. Secretary of Transportation Pete Buttigieg looks at an EVgo charging station during an electric vehicles event outside of the Department of Transportation October 20, 2021 in Washington, DC.
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EV charging network operator EVgo on Thursday reported fourth-quarter revenue that beat Wall Street expectations and posted a narrower-than-expected loss as booming demand from business clients drove big jumps in sales and usage.

While EVgo’s revenue guidance for 2023 fell slightly short of Wall Street’s expectations, investors didn’t seem to mind: Shares were up over 8% in premarket trading following the news.

Here are the key numbers from EVgo’s fourth-quarter earnings report, compared with Wall Street consensus estimates as reported by Refinitiv.

  • Loss per share: 6 cents, versus a loss of 16 cents expected.
  • Revenue: $27.3 million, versus $21.8 million expected.

EVgo’s fourth-quarter revenue marked a 283% increase from a year ago. The company’s net loss for the quarter was $17 million. The company had $246.2 million in cash and equivalents remaining at year-end, down from $484.9 million at the end of 2021.

For the full year, EVgo reported revenue of $54.6 million, network throughput of 44.6 GWh, and an adjusted EBITDA loss of $80.2 million, all in line with the guidance ranges it provided with its third-quarter results in November.

EVgo’s network throughput, a measure of the total energy provided to charging customers, grew 76% year-over-year to 14.4 gigawatt-hours (GWh) in the fourth quarter. The company added about 59,000 new customer accounts during the period, and ended the year with over 2,800 fast-charging stalls in operation.

The company saw dramatic growth in its “eXtend” unit, which provides and manages chargers for business clients under the businesses’ own brands. Revenue from eXtend totaled about $16.7 million in the fourth quarter, or 61% of EVgo’s total revenue for the period, up from just $114,000 a year ago. General Motors, truck-stop operator Pilot, and banking giant Chase are among the businesses that have signed up for the eXtend program.

Retail charging revenue totaled $5.8 million in the quarter, up 65% from a year ago.

EVgo’s guidance for 2023 came with a caveat: The company isn’t yet sure how many U.S.-made chargers it’ll be able to get by year end. New U.S. government rules require domestically made chargers for certain federally-funded projects, and it’s not yet clear how much domestic manufacturing capacity will be up and running before the end of the year.

Here’s the guidance EVgo provided for the current year:

  • Revenue: Between $105 million and $150 million.
  • Adjusted EBITDA loss: Between $78 million and $60 million
  • Fast charging stalls in operation or under construction: 3,400 to 4,000 by year-end.

That revenue guidance is slightly short of Wall Street’s expectations. Analysts polled by Refinitiv had expected 2023 revenue to reach $153.7 million, on average.  

EVgo will hold a conference call for analysts and investors at 11 a.m. ET on Thursday.

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