EVgo, the leading EV charging network operator, has reported impressive second-quarter revenue figures that exceeded Wall Street’s expectations. Additionally, the company posted a narrower-than-expected loss, reflecting the growing number of electric vehicle drivers utilizing its network. EVgo’s private-label eXtend unit also experienced a significant boom in revenue. This article will delve into the key numbers from the second-quarter report, highlight the factors contributing to EVgo’s success, and discuss the company’s increased guidance for the full year.
EVgo’s second-quarter performance surpassed the consensus estimates of Wall Street analysts. The company reported a loss per share of 8 cents, which is substantially lower than the anticipated 27 cents. Moreover, EVgo generated revenue of $50.6 million, significantly surpassing the expected $29.6 million.
One of the primary drivers of EVgo’s growth is its “network throughput,” a measure of the total electricity provided to charging customers. In the second quarter, EVgo experienced a remarkable 147% year-over-year increase in network throughput, reaching 24.9 gigawatt-hours. This surge can be attributed to several factors, including the rising number of electric vehicles on the road, the use of more powerful EV batteries requiring higher charging power, and increased utilization of EVgo’s chargers.
The Rise of eXtend
EVgo’s “eXtend” unit, which provides and manages chargers for business clients under their own brands, saw significant growth during the second quarter. Revenue from eXtend amounted to approximately $33.3 million, accounting for nearly 66% of EVgo’s total revenue for the period. Notable businesses, such as General Motors, truck-stop operator Pilot, and banking giant Chase, have all enrolled in the eXtend program.
As of June 30, EVgo had approximately 3,200 fast charging stalls in operation or under construction, reflecting a slight increase compared to the first quarter. The company also welcomed over 82,000 new customer accounts during the period, leading to a total of about 688,000 accounts as of June 30, denoting a 55% year-over-year growth.
Revised Guidance for the Full Year
Impressively, EVgo has increased its guidance for the full year. The company now anticipates revenue ranging from $120 million to $150 million, up from the previous guidance of $105 million to $150 million. Additionally, the adjusted EBITDA loss range has been narrowed down to between $68 million and $78 million, compared to the earlier guidance of $60 million to $78 million.
Despite the positive performance, EVgo’s CEO, Cathy Zoi, recently announced her retirement from the company, effective November. Zoi’s successor will be Badar Khan, a seasoned veteran with 25 years of experience in the energy sector and former president of National Grid’s U.S. operations. With this leadership transition on the horizon, EVgo remains committed to its growth plans. The company retains its expectation of having between 3,400 and 4,000 fast charging stalls in operation or under construction by the end of the year.
EVgo’s second-quarter results have demonstrated strong revenue growth and reduced losses, surpassing market expectations. The company’s focus on network throughput and the success of its eXtend unit have been instrumental in driving its performance. With a continuously expanding customer base and an optimistic revision of their full-year guidance, EVgo is well-positioned for future success in the rapidly evolving electric vehicle market.