Q3 2021 EVgo Inc Earnings Call

Greetings and welcome to the EV go third quarter 2021 earnings Conference call. At this time all participants are in a listen only mode. A question and answer session will follow the formal presentation.

Speaker 1: Greetings and welcome to the EVgo third quarter 2021 earnings conference call. At this time all participants are in a listen only mode. A question and answer session will follow the...

Just as a reminder, we have allotted one hour for this call if anyone should require operator assistance during the conference. Please press star zero on your telephone keypad.

Speaker 1: Just as a reminder, we have allotted one hour for this call. If anyone should require operator assistance during the conference, please press star zero on your telephone key.

As a reminder, this conference is being recorded I would now like to turn the call over to Chad Brooks Vice President of Investor Relations. Thank you you may begin.

Speaker 1: As a reminder, this conference is being recorded. I would now like to turn the call over to Ted Brooks, Vice President of Investor Relations. Thank you.ealing

Hi, everyone welcome to even go to third quarter earnings call. My name is Ted Brooks and I head up Investor Relations of the company.

Speaker 2: Hi everyone. Welcome to EVgo's third quarter earnings call. My name is Ted Brooks and I head up investor relations at the company.

Today's call is being webcast and the call and supporting materials can be accessed from the investors section of our website at investors <unk> E V go Dot com.

Speaker 2: Today's call is being webcast and the call and supporting materials can be accessed from the investors section of our website at investors.evgo.com. The call will be archived and available there and the company's results, investor presentation and a transcript of today's proceedings will be available at the events and presentations section of the investors page after the conclusion of today's call.

The call will be archived and available there and the company's result, investor presentation, and a transcript of today's proceedings will be available at the events and presentations section of the investors page after the conclusion of today's call.

Joining me on today's call are Kathy Zoe you didn't get a C E L F.

Speaker 2: Joining me on today's call are Kathy Zoey, Edie-Gurze, CEO , and Olga Shavrancova, the company's chief financial officer.

Oh, the Chevron Cobra, the company's Chief Financial Officer.

Today, we will be discussing E V goes latest financial results for the third quarter of 2021, followed by a Q&A session. During the call management will be making forward looking statements regarding the 2021 fiscal year and our outlook for expected growth and investment initiatives.

Speaker 2: Today, we will be discussing EVGo's latest financial results for the third quarter of 2021, followed by a Q&A session. During the call, management will be making forward-looking statements regarding the 2021 fiscal year and our outlook for expected growth and investment initiatives.

These forward looking statements involve risks and uncertainties many of which are beyond our control and could cause actual results to differ materially from our expectations, including among other risks and uncertainties.

Speaker 2: These forward-looking statements involve risks and uncertainties, many of which are beyond our control and could cause actual results to differ materially from our expectations, including, among other risks and uncertainties, the severity and duration of the effects of the COVID-19 pandemic.

And duration of the effects of the COVID-19 pandemic.

These forward looking statements apply as of today, we undertake no obligation to update these statements after the call.

Speaker 2: These forward-looking statements apply as of today. We undertake no obligation to update these statements after the call.

For a more detailed description of factors that could cause actual results to differ please refer to our Form 10-Q filed soon with the SEC and posted to the investors section of our website.

Speaker 2: For a more detailed description of factors that could cause actual results to differ, please refer to our Form 10-Q filed soon with the SEC and posted to the investors section of our website.

Also please note that certain financial measures, we use on this call or a non-GAAP basis core historical periods. We provide reconciliations of these non-GAAP financial measures to GAAP financial measures and the investor presentation can be found on the investors section of our website with that I will turn the call over to Kathy joined E V go CEO kathi.

Speaker 2: Also, please note that certain financial measures we use on this call are of a non-GAAP basis. For historical periods, we provide reconciliations of these non-GAAP financial measures to GAAP financial measures, and the investor presentation can be found on the investor section of our website. With that, I will turn the call over to Kathy Zoe, EVGo's CEO . Kathy?

Thanks, Ted and good morning, everyone.

E V go continued to make great progress during the third quarter, which marked our first full quarter operating as a public company.

Speaker 3: EVgo continued to make great progress during the third quarter, which marked our first full quarter operating as a public company.

With 130000, EV sales in Q3, and now over 1.3 million Evs and U S Road E V go into operations in the third quarter demonstrated further progress toward an electrified transportation future.

Speaker 3: With 130,000 EV sales in Q3 and now over 1.3 million EVs on U.S. roads, EVgo's operations in the third quarter demonstrated further progress toward an electrified transportation future.

We celebrated the continuing growth of our customer base, our customer accounts ending the quarter at over 310011% increase in just the last quarter.

Speaker 3: We celebrated the continuing growth of our customer base with customer accounts ending the quarter at over 310,000 and 11% increase from just the last quarter.

We generated our highest network throughput ever at eight gigawatt hours or 31% increase in network throughput quarter over quarter with retail and fleet, both showing significant upticks.

Speaker 3: We generated our highest network throughput ever at 8 gigawatt hours, a 31% increase in network throughput quarter over quarter, with retail and sleep both showing significant up to.

And this in turn resulted in a 29% quarter over quarter revenue increase.

Speaker 3: And this in turn resulted in a 29% quarter over quarter revenue.

If he goes network performed well delivering hundreds of thousands of charging sessions across 35 states and 68 metropolitan areas with plenty of capacity on our current network footprint to accommodate expected traffic from 'twenty to 'twenty two E D sale.

Speaker 3: EVgo's network performed well, delivering hundreds of thousands of charging sessions across 35 states and 68 metropolitan areas, with plenty of capacity on our current network footprint to accommodate expected traffic from 2022 EV sales.

Said another way if you go to the existing charter base can handle it.

Speaker 3: Said another way, EVgo's existing charger base can handily absorb the throughput arising from expected near-term growth in EV sales, and we're expecting charging revenue to increase accordingly.

Arising from the expected near term growth in EV sales and were expecting charging revenue to increase accordingly.

And given that we're in the business of skating to where the puck is going to be we're continuing to build charging stations and in advance of the dozens of leading models hitting the market in 'twenty two 'twenty three 'twenty four and beyond.

Speaker 3: And given that we're in the business of skating to where the puck is going to be, we're continuing to build charging stations in advance of the dozens of EV models hitting the market in 2023, 24 and beyond.

This means that during the third quarter. We ensured every part of V. Go station development pipeline expanded agreements with new national and regional Scytodes eager to participate in transportation electrification.

Speaker 3: This means that during the third quarter we ensured that every part of EVgo's station development pipeline expanded. Agreements with new national and regional site hosts eager to participate in transportation electrification.

Dozens of local government authorities reviewing applications for fast charging stations within their locality some faster than others.

Speaker 3: Dozens of local government authorities reviewing applications for fast charging stations within their localities some faster than others

Working with major utilities and utility commissions toward new EV friendly electricity tariffs.

Speaker 3: working with major utilities and utility commissions toward new EV-friendly electricity tariffs.

And engaging with the government agencies launching new programs to provide financial support for charging infrastructure.

Speaker 3: and engaging with the government agencies launching new programs to provide financial support for charging infrastructure.

Taken together E. D goes active engineering and construction pipeline grew to nearly 2500 D. C. F C charging stealth 400 more than when we last spoke with you just three months ago with a V go placing 47, new styles into service in nine Metro markets in Q3, bringing total daus in operation to one.

Speaker 3: Taken together, EVgo's active engineering and construction pipeline grew to nearly 2,500 DCFC charging stalls, 400 more than when we last spoke with you just three months ago. With EVgo placing 47 new stalls into service in nine metro markets in Q3, bringing total stalls in operation to 1,595 by the end of last quarter.

595 by the end of last quarter.

In particular, the market appetite for hosting fast Chargers is accelerating and increasing quick.

Speaker 3: In particular, the market appetite for hosting fast chargers is accelerating and an increasing clip.

E V. Go now has multi year programs underway with national retailers like target Kroger whole foods, Albertsons and retail real estate leaders like regency centers kimco and bricks more.

Speaker 3: EVgo now has multi-year programs underway with national retailers like Target, Kroger, Whole Foods, Albertsons, and retail real estate leaders like Regency Centers, Kimco, and Brixmore.

These are complemented by a plethora of site host agreements with more regional and local retail brands.

Speaker 3: These are complemented by a plethora of site host agreements with more regional and local retail brands.

All of whom have joined and accelerated the transition to electrification and E. V. Go retains our commitment to build stations in locations convenient to drivers in their everyday lives.

Speaker 3: all of whom have joined and accelerated the transition to electrification as EVgo retains our commitment to build stations and locations convenient to drivers in their everyday lives.

And based on the increased appetite for easy go charging stations across the board.

Speaker 3: And based on the increased appetite for EVgo charging stations across the board, and General Motors' sustained commitment to electrification and planned delivery of 30 EV models to the market by 2025, I'm pleased to report that EVgo and GM have expanded our partnership.

And in general Motors sustained commitment to electrification and planned delivery of 30 E V models to the market by 2025 I'm pleased to report that E V go and Jan have expanded our partnership.

Together, we will be building, an additional 500 high powered fast charging dollars by 2025, taking the total in this program for 3250.

Speaker 3: Together, we will be building an additional 500 high-powered fast-charging stalls by 2025, taking the total in this program to 3,250.

Geographically the work with GM and others. It means that we expect E V goes public charging network to span over 75 Metro markets and at least 40 states by 2025.

Speaker 3: Geographically, the work with GM and others means that we expect EVGO's public charging that works to span over 75 metro markets in at least 40 states by 2025.

During the third quarter, we also focused on deepening our relationships with EBIT drivers themselves launching new customer loyalty and pricing program as well as per transaction billing.

Speaker 3: During the third quarter, we also focused on deepening our relationships with EV drivers themselves, launching new customer loyalty and pricing program, as well as per transaction billing.

Coupled with E V goes existing reservations coupons and seamless parking garage access. These efforts are aimed at increasing flexibility incentivising charging at different times during the day and enhancing a world class customer experience.

Speaker 3: Coupled with EVgo's existing reservations, coupons, and seamless parking garage access, these efforts are aimed at increasing flexibility, incentivizing charging at different times during the day, and enhancing a world-class customer experience.

Also during this quarter EBIT goes reach into the growing electrified fleet statement extend it.

Speaker 3: Also during this quarter, EVgo's reach into the growing electrified fleet statement extends.

Tailoring our offerings to the particular needs of businesses that own and operate fleets. We introduced the E V go Optima software product suite.

Speaker 3: Tailoring our offerings to the particular needs of businesses that own and operate fleets, we introduced the EVgo Optima software product suite.

Optimists fleet management platform delivers highly efficient charging performance co optimizing cost energy man and grid conditions in a manner that integrates fully with the charging needs of our fleet customers.

Speaker 3: Optima's fleet management platform delivers highly efficient charging performance, co-optimizing costs, energy demand, and grid conditions in a manner that integrates fully with the charging needs of our fleet customers.

Does that N E V go sleep business is growing with new agreements announced with general Motors merchant fleet and electric last mile solutions.

Speaker 3: To that end, Evie goes fleet businesses growing with new agreements announced with general motors, merchant fleet, and electric last mile solutions.

E V. Go also signed a new agreement with Uber to extend and expand our relationship and helping drivers on the Uber platform go electric.

Speaker 3: EVgo also signed a new agreement with Uber to extend and expand our relationship in helping drivers on the Uber platform go electric.

And building on our pilot work with Penske on the D. C. S. T side E V go and Penske had a new order for high powered level two chargers at Penske locations that are starting this quarter.

Speaker 3: And building on our pilot work with Penske on the DCFC side, Evie Go and Penske have a new order for high powered level two chargers at Penske locations that are starting this quarter.

E V. Go has achieved these milestones despite the headwinds that continue to affect not just our nascent industry, but the whole global economy as workers everywhere face continued COVID-19 restrictions and the rest of uncertainties that come with it.

Speaker 3: EVgo has achieved these milestones despite some headwinds that continue to affect not just our nation's industry but the whole global economy as workers everywhere face continued COVID restrictions and the wrath of uncertainties that come with it.

So far in 2021 E. V go has seen that while the time it takes us to construct a station. It's four to eight weeks. The average timetable forgetting high powered charging stations from concepts to utility energized they shouldn't and dense retail parking lot can be 18 months or more.

Speaker 3: So far in 2021, EVgo has seen that while the time it takes us to construct a station is four to eight weeks, the average timetable for getting high-powered charging stations from concept to utility energization in dense retail parking lots can be 18 months or more. And so during Q3, we worked with our partners, including GM, to adjust charger build programs accordingly, including updating partnership agreements where that was required to reflect current market reality.

And so during Q3, we worked with our partners, including G. N. Two of just charge a build programs accordingly, including updating partnership agreements where that was required to reflect current market realities.

We of course continue to engage with other members of the charging ecosystem.

Speaker 3: We of course continue to engage with other members of the charging ecosystem, utilities, local permitting authorities, state funding agencies, and site hosts themselves through our Connect the Watts program to create a more streamlined process for bringing chargers to life.

<unk> local permitting authorities state funding agencies and site host themselves through our connect the what's a program to <unk>.

Create a more streamlined process for bringing charges to life.

You've heard me call it a flywheel and we see evidence that it's starting to spin.

Speaker 3: You've heard me call it a flywheel, and we see evidence that it's starting to spin.

E V go witness a 50% increase in the number of permits granted in Q3 versus Q2.

Speaker 3: EVgo witnessed a 50% increase in the number of permits granted in Q3 versus Q2.

We loved the third consecutive quarter of exceeding quarterly targets for executed site.

Speaker 3: We logged a third consecutive quarter of exceeding quarterly targets for executed sites.

A company record in Q3 of beating our targets by 37% and we met our full year target one quarter early.

Speaker 3: a company record in Q3 of beating our targets by 37%. And we made our full year target one quarter early.

And we more than doubled the number of executed utility easements in Q3 versus the prior quarter.

Speaker 3: and we more than double the number of executed utility easements in Q3 versus the prior quarter.

There is of course much more to be done as local permitting and utility easements remain bottlenecks in the fast charger build process.

Speaker 3: There is, of course, much more to be done, as local permitting and utility easements remain bottlenecks in the fast charger build process.

Overall momentum for electric vehicles, and the decarbonization of transportation is undeniable, though.

Speaker 3: Overall momentum for electric vehicles and the decarbonization of transportation is undeniable though. Whether it is the new EV purchases

Whether it is a new easy purchases I referenced above.

The greater than 50% increase in 2020 seven EV penetration forecast made by leading market analysts in the last year.

Speaker 3: the greater than 50% increase in 2027 EV penetration forecasts made by leading market analysts in the last year.

Oh and commitments ranging from Ford's plans to invest $11 billion in new E V and battery manufacturing facilities in the U S toy.

Speaker 3: OEM commitments ranging from Ford's plans to invest $11 billion in new EV and battery manufacturing facilities in the US.

Toyota's announcement to have a full battery electric vehicle in the market by next spring.

Speaker 3: Toyota's announcement to have a full battery electric vehicle on the market by next spring.

G M October analyst day that focused on the centrality of the EDI universe through its Fran.

Speaker 3: GM's October analyst day that focused on the centrality of the EV universe through its plan.

With the continued support at a policy level that is playing out in the U S and elsewhere.

Speaker 3: or the continued support at a policy level that is playing out in the u.s. and elsewhere.

On that last point, a quick update and perhaps sense of scale for the programs included in the infrastructure and reconciliation bills in Congress.

Speaker 3: On that last point, a quick update and perhaps sense of scale for the programs included in the infrastructure and reconciliation bills in Congress.

The infrastructure Bill, which was passed late last week includes provisions that allow for up to $7.5 billion of grant funding for electric vehicle charging infrastructure and additional potential opportunities on top of that.

Speaker 3: The infrastructure bill, which was passed late last week, includes provisions that allow for up to $7.5 billion of grant funding for electric vehicle charging infrastructure and additional potential opportunities on top of that.

This new support represents a considerable increase in the financial commitment on the part of policymakers for the E D and E V charging industry and the funds will likely slow through the states starting in late 2022 and on into 2023.

Speaker 3: This new support represents a considerable increase in the financial commitment on the part of policy makers for the EV and EV charging industry. And the funds will likely slow through the state starting in late 2022 and on into 2023.

Additionally, as big as the infrastructure Bill is there's likely more to come.

Speaker 3: Additionally, as big as the infrastructure bill is, there's likely more to come.

The build back better Act reconciliation legislation includes an extension and expansion of the section 30 feet tax credits supporting the build out of the infrastructure.

Speaker 3: The Build Back Better Act Reconciliation Legislation includes an extension and expansion of the Section 30C tax credits supporting the build out of the VV infrastructure, as well as consumer tax credits for EV purchases, both new and used, delivering benefits to more US drivers.

Well as consumer tax credits for EV purchases, both new and used delivering benefits to more U S drivers.

E V go strongly supports complementing infrastructure funding with consumer side incentives for purchasing eating and we'll be watching closely in the coming weeks as the final terms of build back better or hopefully agreed and this package of additional EV incentives is passed by the Congress and has the President's desk.

Speaker 3: EVgo strongly supports complementing infrastructure funding with consumer side incentives for purchasing EVs. And we'll be watching closely in the coming weeks as the final terms of Build Back Better are hopefully agreed and this passage of additional EV incentives is passed by the Congress and heads to President Biden's desk.

One final note on these pieces of legislation, though while we are enthusiastic about the additional tailwind build back better could provide the transportation electrification.

Speaker 3: One final note on these pieces of legislation, though. While we are enthusiastic about the additional tailwinds Build Back Better could provide to transportation electrification, EVgo's build program is, and has been, grounded in investing in charging assets that will deliver returns to our shareholders based on the market settings in place at the time we decide to make an investment in that charging station.

If he goes build program is and has been grounded in investing in charging assets that will deliver returns to our shareholders based on the market setting in place at the time, we decided to make an investment in that charging station.

Our multi year forecast and plans were developed without reliance on pending or potential legislation.

Speaker 3: Our multi-year forecasts and plans were developed without reliance on pending or potential legislation.

With the infrastructure build now a reality, we will be working with policymakers on how the funding will get distributed over the coming months and well update EDI goes one business plans accordingly.

Speaker 3: With the infrastructure bill now a reality, we will be working with policymakers on how the funding will get distributed over the coming months and will update EVgo's own business plans accordingly.

We expect that this funding will allow for more rapid expansion and increased upside for EV goes growth and I look forward to discussing this with you on future calls.

Speaker 3: We expect that this funding will allow for more rapid expansion and increased upside for EVgo's growth, and I look forward to discussing this with you on future calls.

With that I'll turn the call over to Olga to provide our financial and operational update as well as our updated 2021 guidance.

Speaker 3: With that, I'll turn the call over to Olga to provide our financial and operational updates, as well as our updated 2021 guidance.

Thank you Kathy I would like to start with a review of all operational and financial results for the quarter.

Speaker 4: Thank you, Kathy. I would like to start with a review of our acceleration on financial results for the quarter. Network throughput in the third quarter was 8.0 gigawatt hours, an increase of 31% from 6.1 gigawatt hours in the second quarter.

And that's what the throughput in the third quarter was 810 gigawatt hour.

And then Kris 31% from 611 gigawatt hour in the second quarter.

This sequential increase in throughput was driven by new retail customers added on the EBIT go network as well as the ramp up of activity on autonomous vehicles sites I would like to add that EBIT goes network throughput outpaced the growth in electrical vehicles in operation over the spirit.

Speaker 5: This sequential increase in throughput was driven by new retail customers added on the EVGO network, as well as a ramp up of activity on autonomous vehicle sites.

Speaker 4: I would like to add that EVgo's network throughput outpaced the growth in electrical vehicles in operation over this period by about 20 percentage points.

About 20 percentage points.

More than 36000, new customer accounts were added during the quarter, bringing total customer count to over 310000 is a growing base of drivers continue to choose either go as a key EV charging provider.

Speaker 5: More than 36,000 new customer accounts were added during the quarter, bringing total customer accounts to over 310,000 as the growing base of drivers continue to choose EVGO as a key EV charging provider. Tesla drivers represented roughly 15% of all new EVGO customers in the third quarter.

That's what the drivers represented roughly 15% of all new easy go costumers and the third quarter.

Today, we estimate Tesla drivers accounted for approximately 5% of total either go to tail throughput.

Speaker 5: Today, we estimate Tesla drivers account for approximately 5% of total EVgo retail through

We observe the trends and 9% quarter over quarter revenue increase in the third quarter.

Speaker 5: We observed a 29% quarter-over-quarter revenue increase in the third quarter.

This increase reflects ongoing easy adoption trends and continued improvement in economic activity.

Speaker 5: This increase reflects ongoing EV adoption trends and continued improvement in economic activities.

But he tell charging revenue increased 28% in the quarter, while sleep charging revenue increased 26% due to a ramp in activity on our dedicated autonomous vehicles sleep diets.

Speaker 5: Retail charging revenue increased 28% in the quarter, while fleet charging revenue increased 26% due to ramps in activity on our dedicated autonomous vehicle sleep sites, as well as the growth of public fleet traffic from continuing the recovery after many COVID-19 disruptions.

As well as the growth of public fleet traffic from continued recovery after many COVID-19 disruptions.

Retail and fleet revenues were up 101, and 64% year over year, respectively.

Speaker 4: Retail and fleet revenues were up 101 and 64 percent year-over-year respect.

Ancillary revenues increased seven 3% versus the prior quarter predominantly driven by the inclusion of the cargo revenues following the close of our acquisition on July nine.

Speaker 5: Ancillary revenues increased 73% burst of the Priac water, predominantly driven by the inclusion of Ricardo Rebunius, following the close of our acquisition on July 9.

This quarter, we have changed the presentation of certain costs by reclassifying some of the items in cost of goods sold account general administrative expenses.

Speaker 5: This quarter we have changed the presentation of certain costs by reclassify and sum of the items and cost of goods sold accounts to general administrative expense.

This reclassification to G&A is being done to more accurately reflect the cost of goods sold associated with providing charging and audit services to our customers.

Speaker 5: This reclassification to GNA is being done to more accurately reflect the cost of goods sold associated with providing charging and other services to our customers.

And therefore give investors some more properties view of the person to deal with it.

Speaker 5: and therefore give investors a more proper view of the profitability.

Plus previously included in cost of goods sold but now in general and administrative expenses include network platform services certain storage and freight costs, we have duration, all around and licensees call center expenses and certain costs related to steel and costume.

Speaker 5: First, previously included in the cost of goods sold, but now in general administrative expenses include network platform services, certain storage and freight costs, re-appirational around and license fees, call center expenses and certain costs related to field and custom operations. This week's

Operations.

Cost of goods sold include charges depreciation and amortization expense direct energy expenses maintenance rent property taxes payment processing fees and other non charging network costs related to activities that support.

Speaker 5: Costs of goods sold include charger side depreciation and amortization expense, direct energy expenses, maintenance, rent, property taxes, payment processing fees, and other noncharging network costs related to activities that support ancillary remedies.

Ancillary revenue.

Our adjusted gross profit for the third quarter was one $4 million, representing a 22.2% adjusted gross margin up from $1 million and 21, 4% respectively in the second quarter.

Speaker 5: Our adjusted gross profit for the third quarter was $1.4 million, representing a 22.2% adjusted gross margin, up from $1 million and 21.4% respectively in the second quarter.

The margin increase was mostly driven by the inclusion of higher margin Chicago revenues. Following our acquisition completed in early July.

Speaker 5: The margin increase was mostly driven by the inclusion of higher margin cargo revenues following our acquisition completed in early July .

Adjusted cost of goods sold totaled $4.8 million for the third quarter up from $3.8 million for the second quarter, driven by higher overall energy cost due to higher network throughput and higher non energy costs due to expanding the number.

Speaker 5: Adjusted cost of good sold totaled $4.8 million for the third quarter up from $3.8 million for the second quarter driven by higher overall energy cost due to higher network throughput and higher non-energy costs due to expanding the number of charges sold.

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As part of our ongoing process to help our investors understand the drivers for either go with financial results I wanted to take a moment to describe the components of our revenue.

Speaker 5: It's part of our ongoing process to help our investors understand the drivers for EVGO financial results. I wanted to take a moment to describe the components of our

Revenue breaks down into four shop categories charging regulatory credits ancillary and network.

Speaker 5: Revenue breaks down into four subcategories, charging, regulatory credits, answer Mandariners and parties, ancillary, and nothing.

Charging revenue comprises roughly 65% of our total revenue as of today.

Speaker 5: Charging revenue comprises roughly 65% of our total revenue as of today. And we further break down charging revenue into three categories, retail, suite and OEM.

And with further breakdown charging revenue into three categories retail suite and OEM.

Retail charging revenue, which is I know jud rose by 28% in the quarter.

Speaker 5: Retail charging revenue, which as I noted, rose by 28% in the quarter, is driven by retail customers charging at public stations on EVgo's network, and is comprised of membership of subscription payments as well as volumetric base payments.

Is it driven by retail customers charging at public stations on EBIT goes and that works and is comprised of membership subscription payments as well as below metric based payments.

This revenue stream is driven by the adoption by regular commuters who choose either goes they're charging provider.

Speaker 5: This revenue stream is driven by via adoption by regular commuters who choose EVgo as their charging provider.

Felipe charging which rose 26% quarter over quarter is comprised of both public and dedicated fleet charging the activities everything and rideshare drivers charging at lunchtime Georgetown unless vehicles charging in depots and could be revenue linked to volumes.

Speaker 5: Fleet charging, which rows 26% quarter over quarter, is comprised of both public and dedicated fleet charging activities. Everything from rideshare drivers charging at lunchtime, to autonomous vehicles charging in depots, and could be revenue linked to volumes, as well as take or pay type of payments, if you go to seats for stalls at dedicated fleet depots.

As well as take or pay type of payments. If you go to cheese for stole the dedicated fleet depots.

Boy I'm charging revenue is associated with prepaid charging credits that even goes OEM partners, such as general Motors on Nissan.

Speaker 5: OEM charging revenue is associated with free paid charging credits that ev goes OEM partners such as general models or Nissan, awards to their respective customers.

Awards to their respective customers.

Oh, yes, prepay either go for such credits and even go recognizing the revenue.

Speaker 5: OEMs prepay EVgo for such credit, and EVgo recognizes the revenue when OEM customers show up to charge.

Oh, Yeah, I'm costumers, Joe off the charge.

This revenue line is driven by some of our OEM agreements and the number of vehicles. This OEM sell into the market, which is expected to increase with the adoption.

Speaker 5: This revenue line is driven by some of our OEM agreements and the number of vehicles that are sold into the market, which is expected to increase with the adoption of new vehicles.

Regulatory crowd as revenue is it the next important component in our revenue stream and comprises approximately 10% of our total revenue.

Speaker 5: Regulatory credit revenue is the next important component in our revenue stream and comprises approximately 10% of our total revenue.

This largely reflects the monetization of graduates either go cells under the low carbon fuel standards.

Speaker 5: This larger little flat, the monetization of credit illegal cells under the low carbon fuel standards.

The LCR first program, which is the most mature and advanced in California.

Speaker 5: The LCFS program, which is the most mature and advanced in California,

Wires company to adhere to carbon emission targets was those exceeding the limits obligated to purchase graduates to being compliant.

Speaker 5: requires companies to adhere to carbon emission targets, with those exceeding the limits obligated to purchase credits to being compliant.

The nature of it it goes business combined with the fact that our network is hundred percent powered by renewable electricity means that with January don't surface credits there was on sell in the market.

Speaker 5: The nature of Ivego's business, combined with the fact that our network is 100% powered by renewable electricity, means that we generate LCFS credits that we then sell in the market.

Since pricing is determined by the market, we expect to experience volatility in realized prices and have averaged 20 to 24 cents per kilowatt hour over the last several quarters.

Speaker 4: Since pricing is determined by the market, we expect to experience volatility in realized prices and have averaged 20-24 cents per kilowatt hour over the last several quarters.

In addition to California, Oregon has introduced its own regulated carbon reduction program, which prices have been lower at approximately eight cents per kilowatt hour.

Speaker 5: In addition to California, Oregon has introduced its own regulated carbon reduction program whose prices have been lower at approximately 8 cents per kilowatt hour.

The state of Washington has recently created a program as well and that program should be up and running by 'twenty two 'twenty three.

Speaker 5: has recently created a program as well. And that program should be up and running by 2023.

It's easy to go over to see adoption of our CFO style programs in other states such as New York, where it has been proposed it would represent upside to our base case for costs.

Speaker 5: If either go were to see adoption of LCFS style programs in other states, such as New York, where it has been proposed, it would represent upside to our base case forecast.

To date, the vast majority of regulatory revenue was either go has been derived from California's LCR program.

Speaker 5: Today, the vast majority of regulatory remnants of EVGO has been derived from California's LTFS program.

Next is ancillary revenue comprising 15% to 20% of our total revenue, which includes everything from maintenance services development and project management revenue data and technology, driven services consumer retail revenues, such as reservations and coupons.

Speaker 4: Next is Ancillary Ravinia, comprising 15 to 20% of our total revenue, which includes everything from maintenance services, development and project management revenue, data and technology driven services, consumer retail revenues, such as reservations and coupons, and advertising revenue.

And advertising revenues.

As mentioned he's he goes ancillary revenues also include the recently acquired your cargo.

Speaker 4: As mentioned, EVgo's ancillary revenues also include recently acquired cargo.

And finally network revenue comprises 5% to 10% of total revenue is recognized in association with the services, we provide to OEM partners tied to significant charge of infrastructure build programs.

Speaker 4: And finally, Network revenue comprises 5-10% of total revenue. It is recognized in association with the services we provide to OEM partners, tied to significant charge infrastructure build probes.

Oh, so let us take a minute to walk through the main components of our adjusted cost of goods sold.

Speaker 5: Also, let us take a minute to walk through the main components of our adjusted cost of goods sold.

Energy remains the biggest piece, that's roughly 45% to 50%.

Speaker 5: Energy remains the biggest piece, a roughly 45 to 50%.

While site rent property taxes maintenance and payment processing fees collectively comprise another 45% to 50%.

Speaker 5: While shite-drand property taxes, maintenance and payment process in fees, collectively comprise another 45 to 50.

The remaining 5% reflect other non charging network related items, such as engineering and development cost and hosting fees.

Speaker 5: The remaining 5% reflects other noncharging network related items such as engineering and development costs and hostings.

And even though we have an ongoing focus on optimizing our cost structure and as part of this effort. We are working with our utility partners to reuse and there was a cost.

Speaker 5: At EVgo, we have an ongoing focus on optimizing our cost structure. And as part of this effort, we're working with our utility partners to reduce energy costs.

And I, Resona, Connecticut, Illinois, and California, where the territory served by Tucson, Electric, Connecticut light and power, United Illuminating, Connecticut light and power, United Illuminating Ameren, Illinois, and the Los Angeles Department of water and power we have seen it.

Speaker 5: In Arizona, Connecticut, Illinois and California, for the territory served by Tucson Electric, Connecticut Light and Power, United Illuminating, Connecticut Light and Power, United Illuminating, Illinois and the Los Angeles Department of Water and Power, we have seen electricity rate changes, equating to an approximate 20% reduction in future EV charging rates in those locations.

Electricity rate changes equating to an approximate 20% reduction in future EV charging rates in those locations.

In addition, further rate proceedings pending in Arizona, Ohio, and Massachusetts, providing the potential for meaningful future rates relief.

Speaker 5: In addition, further rate proceedings appending in Arizona, Ohio and Massachusetts providing the potential for meaningful future rate relief.

While our current footprint in some of these locations husbands small improving cost structures will support growth and if it goes capital commitments in those areas.

Speaker 5: While our current footprint in some of these locations has been small, improving cost structures will support growth and if it goes capital commitments in those areas.

Before moving into 2020, one guidance update I would like to elaborate on the relationship between Evs on the road EBIT.

Speaker 5: Before moving into 2021 guidance update, I would like to elaborate on the relationship between EVs on the road, EV goes network throughput and associated revenues, and the number of stalls and operations on our networks.

If it goes network throughput and associated revenues.

And the number of stores in operation on our network.

As mentioned earlier, we observed 31 system grows and network throughput in the third quarter, which was driven by the rise in the number of Evs on the road and corresponding customers, who charged it's easy to go locations.

Speaker 5: As mentioned earlier, we observed 31% growth in networks throughput in the third quarter, which was driven by the rising the number of EVs on the road and corresponding customers who charged at EVGOL locations.

<unk> has consistently focused on geographies with the highest easier adoption.

Speaker 5: EVgo has consistently focused on geographies with the highest EV adoption.

For example, in Los Angeles, our home market.

Speaker 5: For example, in Los Angeles, our homeowner.

Approximately 90% of EV owners live within 10 miles of an easy go charger.

Speaker 5: approximately 90% of EV owners live within 10 miles of an EV grow charger. And current utilization in Los Angeles is 9 to 10%.

And current utilization in Los Angeles is 9% to 10%.

Our analysis suggests that we could still radically pause the development of new stores for the next 15 months and still see growth in both throughput and revenues in line with prior periods before expecting to see any negative inputs from availability.

Speaker 5: Our knowledge suggests that we could see or radically pause the development of new stalls for the next 15 months and still see growth in both throughput and revenues in line with prior periods before expecting to see any negative impacts from availability of Bureau of Reloadability of US.

Okay.

At present, we see a very similar picture in all of our other key markets network throughput grows is just to reinforce.

Speaker 5: At present, we see a very similar picture in all of our other key markets. Network throughput growth is just to reinforce a function of more drivers adopting the views and the prudent charge location selection that accommodates and encourage that adopt.

A function of more drivers adopting movies and the prudent charge of location selection that accommodate and encouraged that adoption.

The new stores that are in development as part of either goes build programs that cathie described Elliot will satisfy future demand arising from vehicle sales in 'twenty, two 'twenty three and beyond.

Speaker 4: The new stalls that are in development as part of even those build programs that Cassie described earlier will satisfy future demand arising from vehicle sales and current is going to 3 and beyond.

A key takeaway is that where the brand new charging station is energized this quarter or two or three quarters from now we will not have a material effect on EBIT goes overall network throughput or revenues in the near term.

Speaker 5: A key takeaway is that whether brand new charging station is energized this quarter or two or three quarters from now will not have a material effect on ebgoes overall network throughput or navigation in the near-turn

We are increasing our expectations for revenue network throughput and adjusted EBITDA for the full year of 201 to one.

Speaker 5: We are increasing our expectations for revenue, network throughput and adjusted EBITDA for the full year of 2021.

Our updated expectations off of tranches of $22 million of revenue 24 to 26 gigawatt hours of network throughput.

Speaker 5: Our updated expectations are for $20 to $22 million of revenue, 24 to 26 GWh of network throughput, and negative $54 to $58 million of adjusted EBITDA.

And negative $54 million to $58 million of adjusted EBITDA.

The increases in our forecast for revenue and adjusted EBITDA are driven by higher than estimated throughput on our network.

Speaker 4: The increases in our forecast for revenue and adjusted EBITDA are driven by higher than estimated throughput on our net.

As for store guidance for 'twenty to 'twenty, one where issuing our first formal operational stole target guidance of 280 to 320 newly operational stalls for the full year of 201 to one.

Speaker 4: As for stall guidance for 2021, we are issuing our first formal operational stall target guidance of 280 to 320 newly operational stalls for the full year of 2021.

It tends to take eight at the 90 days sort of stall to go operational once we're big in construction. This consists of our construction timing plus you do assume they're just Asia.

Speaker 4: It turns to take 8.90 days for a stall to go operational once we begin construction.

Speaker 4: This consists of our construction timing plus utility energization.

The ability of these external factors may contribute just short term shifts in operational status. We think that it is helpful to provide color on the number of stores expected to be under construction as of year end.

Speaker 5: While the variability of these external factors may contribute to short-term ships in operational status, we think that it is helpful to provide color on the number of stalls expected to be under construction as of year-end.

In addition to stores in operation as of year end, even though expects the 220 260 stores will be under construction at the end of 'twenty one to one.

Speaker 4: In addition to stalls in operation as of year-end, if you go expect, the 220 to 260 stalls will be under construction at the end of 2021.

Resulting in a forecasted total of between 1890, and 1917 operational or under construction stores as of December 31st.

Speaker 4: resulting in a forecasted total of between 1,890 and 1,970 operational or under-construction stalls as of December 31st.

Final point of nodes on the timing and content of future results.

Speaker 5: A final point of note on the timing and content of future results.

We expect to be reporting fourth quarter and full year 2006. When do you want to result in mid to late March at that time, we will initiate our operational and financial guidance for two branches once you chip.

Speaker 5: We expect to be reporting for Squadra and full year 2021 results in needs to late March. At that time, we will initiate operational and financial guidance for 2022.

With that we will conclude our prepared remarks and turn the call over to the operator to take your questions. Thank you.

Speaker 5: With that, we will conclude our prepared remarks and turn the call over to the operator to take your questions. Thank you.

Thank you we will now be conducting a question and answer session. If you would like to ask a question. Please press star one on your telephone keypad.

Speaker 1: Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star.

A confirmation tone will indicate your line is in the question queue.

You May press Star two if you would like to remove your question from the queue for participants using speaker equipment. It may be necessary to pick up your handset before pressing the star keys, one moment. Please while we poll for your questions.

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Yes.

Okay.

Our first questions come from the line of Craig Irwin with Roth Capital. Please proceed with your questions.

Speaker 1: Our first questions come from the line of Craig Irwin with Roth Capital. Please proceed with your questions.

Craig could you please check if you're on mute.

Hi, Thank you good morning, and thanks for taking my questions.

Speaker 1: Hi, thank you. Good morning and thanks for taking my question.

Kathy I wanted to start off by.

Speaker 1: Kathy, I wanted to start off by asking about the expanded relationship with General Motors.

By asking about the expanded relationship with general Motors.

Added 500 sites, a dozen new geographic markets.

Speaker 1: He added 500 sites, a dozen new geographic markets.

Can you maybe give us a little color on how this this expansion from what was already a pretty substantial agreement started too.

Speaker 1: Can you maybe give us a little color on how this expansion, to what was already a pretty substantial agreement, it started to, how it started, right? How the conversation with General Motors said, let's do more, let's do it faster. And what does this mean really for the outcome or what we should be looking at as far as the partnership between General Motors and EVGo over the next couple years? Yeah, hey, thanks Chris.

How it started right how the conversation with general Motors, So, let's do more let's let's do it faster and what does this mean really for the outcome or you know what we should be looking at as far as the partnership between the General Motors, maybe go over the next couple of years.

Yeah, Hey, Thanks, Craig look that the.

At G M expanded relationship between GM and even go that we just announced is a home run for both companies and the larger updated program for the for the 30 to 50 cell is delivering a higher N. P V to E V go than the original program of course, and more geographic reach and D. C. S. He presents for GM in markets, where they plan to sell Evs and it doesn't work.

Speaker 3: The expanded relationship between GM and EVGO that we just announced is a home run for both companies. So larger updated programs for the 3250 cells is delivering a higher NPV to EVGO than the original program, of course.

Speaker 3: and more geographic reach and dc sc presents for gm in market where they plan to sell evs and it doesn't require more g and capital to get that done

Acquire more G and capital to get that done. So why is that so how it's structured well E. V. Go has done is we've tried it early builds in 2020, one that require actually more G. M subsidy that pencil for larger first for charter builds in 2023 and 'twenty to 2025 that don't as a result of higher EV penetration in those late.

Speaker 3: So why is that so how it structured? What EVGO has done is we've traded early bills in 2021 that require actually more GM subsidy to pencil for larger for charger bills in 2023 and 2025 that don't as a result of higher EV penetration in those later years.

For years.

I guess to say it another way if you build later the same $90 million can buy an extra 500 charging solved and so we'll look where we're where we're delighted because we get to go into new markets and build charging a structure, where we have total well we have all the exposure on the revenue side. Once those are built and G M get to feel excited about going into.

Speaker 3: I guess to say it another way, if you build later, the same $90 million can buy an extra 500 charging stalls. And so we're delighted because we get to go into new markets and build charging infrastructure where we have total, where we have all the exposure on the revenue side once those are built. And GM gets to feel excited about going into those new markets where they want to sell things.

Are those new markets, where they want us Leds, it's great great win win I mean, our relationship just continues to strengthen.

Speaker 3: Great win-win. I mean our relationship just continues to shrink.

Perfect Perfect. So then I wanted to ask a little bit about the the N C. A pipeline 2500 units up about 400, I think since last quarter, that's that's fairly substantial growth.

Speaker 1: Perfect, perfect. So then I wanted to ask a little bit about the EMC pipeline in 2500 units, up about 400 I think in last quarter. That's fairly substantial growth. You know,

You know.

Can you talk about you know how youre feeding the front end of the pipeline. We expect this kind of growth to potentially continue over the next number of quarters.

Speaker 1: Can you talk about how you're feeding the front end of the pipeline? Do we expect this kind of growth to potentially continue over the next number of quarters?

Craig We are you know, it's funny that in the old days it used to be we had to explain to our site hosts.

Speaker 3: Craig, we are, you know, it's funny that in the old days it used to be we had to explain to a site host.

Not only we don't need to charge what was an easy one and he was what we're now seeing some site, hoping you know I mentioned, a bunch of national brands, but it's also a local regional brands.

Speaker 3: not only were we chargeable what was in the easy what an e.d. was. What we're now seeing from site host and you know I mentioned a bunch of national brands but it's also local regional brands that are out there in retail settings. They're really excited about getting e.d. charging bill. Everybody across the country seems to feel that momentum. So our expectation is that pipeline is going to continue to grow. We are a great counterparty so site hosts are excited about working to e.d. go.

That are that are out there in a retail setting they're really excited about getting EV charging gil everybody across the country seems to feel that momentum. So our expectation is that pipeline is going to continue to grow we are a great counterparty. So site hosts are excited about working with me to go.

Amazing Amazing and then E D.

Speaker 1: amazing amazing and then the eight the eight gigawatts in the quarter right 31% growth sequentially

Gigawatts in the corner right, 31% growth sequentially.

That's a pretty chunky resolved, obviously, it's been kind of view on the on the top line and I would say bottom line this quarter.

Speaker 1: Good, they're pretty chunky results. You know, obviously it's been a good view on the top line and I would say the bottom line this quarter.

You know as we look forward over the next few quarters or if we see this above trend growth is there an opportunity to maybe build the network faster you know I know you optimize your utilization different locations and and kind of calibrate what the different geographic markets compare I mean is this something.

Speaker 1: You know, as we look forward over the next two quarters, if we see this above trend growth, is there an opportunity to maybe build the network faster? You know, I know you optimize for utilization different locations and kind of calibrate, what the difference geographic markets can bear. I mean, is this something we should read through as an indicator that there is room to go.

We should read through is as an indicator that there is room to go there.

But look there we we do you rightly point out that we do calibrate and we've got you know is as old and I. Both mentioned in our remarks, we've got we've got headroom on the network to absorb much more throughput that's coming in and with the expectation of the of the EV penetrations that are going to come from the various new models that are just going to show up in 'twenty two.

'twenty two but overall the business model as I've said, many times can accordion up.

Or down, but it can accordion up very quickly. So if we see for example, EV incentives from the federal government and the EV sales go faster than what the market analysts have said E. V go can get out there and and build in more places for us it's still that financial discipline, where is this going to wear is EV charging infrastructure going to pencil well.

Speaker 3: but it can accord you enough very quickly. So if we see, for example, EV incentives from the federal government and the EV sales go faster than what the market analysts have said, EVGO can get out there and build in more places. For us, it's still that financial discipline. Where is EV charging infrastructure going to pencil well and deliver the returns that our shareholders expect? And we just, we can move up or down as we need to.

<unk> and deliver the returns that our shareholders expect and we just we can can move up or down as we need to.

Great Congratulations on a solid results here I'll I'll hop back in the queue.

Speaker 1: Great, congratulations on a solid result here. I'll hop back in the queue.

Thanks.

Thank you our next questions come from the line of Gabe Daoud with Cowen. Please proceed with your questions.

Speaker 6: Thank you. Our next questions come from the line of Gabe Dawood with Cowen. Please proceed with your...

Hey, Thanks, good morning, everyone and thanks for the prepared remarks, a super helpful.

Speaker 7: Hey, thanks. Good morning, everyone. Thanks for the prepared remarks. Super helpful.

Cathy maybe can we just talk a little bit about just the revised guidance for the remainder of the year. If I looked at the new throughput estimate kind of implies maybe a <unk>.

Speaker 7: Kathy, maybe could we just talk a little bit about just the revised guidance for the remainder of the year? If I look at the new throughput estimate, it kind of implies maybe a sequential decrease in throughput in 4Q. Is that just general conservatism? Is there anything else I should be thinking about related to throughput for the rest of the year?

Sequential decrease in throughput at four two is that just general conservatism is there anything else I should be thinking about related to throughput for the rest of the year.

Okay, well I'm going to pass this over to Olga.

Yeah.

Sure. Thanks, Cathy so Gabe it is it is both it is a bit of a general conservatism, but also Q4 is traditionally a factored by Thanksgiving and Christmas.

Speaker 5: Sure, thanks, Cassie. So Gabe, it is both. It is a bit of a general conservatism, but also Q4 is traditionally affected by things given in Christmas.

Actually don't tend to drive much over those hold as they stay back home and enjoy their family time, and dinners and doctors I think kind of what influence our general conservatism and we'll see how people behave. This here is just based on our observations from past years.

Speaker 4: People actually don't tend to drive much over those holidays. They stay back home and enjoy their family time and dinners. And that's, I think, kind of what influenced our general conservatism. We'll see how people behave this year. It's just based on our observations from past years over the Q4.

Over the Q4.

Got it thanks that's.

Speaker 7: Got it. Thanks. All good. That's helpful. Maybe just following up on the policy side, you mentioned a BIF and funds, potentially flowing through late 22 early 23. Curious, Kathy, how you kind of balance this with. I think in the past, you maybe mentioned EVgo not really being a highway corridor company. And, you know, I think BIF funding will first be allocated towards a highway corridor. So.

That's helpful. Maybe just following up on the policy side, you mentioned, a b I F and funds funds potentially flowing through late 'twenty two early 'twenty three.

I'm curious Kathy how are you how are you kind of balance this with I think in the past you. Maybe mentioned you go not really being a highway corridor company.

And you know I think be a funding will first be allocated towards highway corridor. So could you maybe just talk about how you balance those two and you know it does it does build out accelerate.

Speaker 7: Could you maybe just talk about how you balance those two and does build out accelerate as a result of BAS to capture these awards?

As a result of the I guess to capture these awards.

Yeah, well so.

Speaker 3: Yeah, well, so first principle for EVgo, we'll invest in charging infrastructure that pencils for our shareholders, right? In the past.

Earth's principle for easy go we'll invest in charging infrastructure that pencils for our shareholders right and in the past.

Some quarters it didn't pencil, but when you didn't see us going deep into quarters with the with the with the widespread support in the magnitude of that support our quarters well be taking a look at that and we'll be working with policymakers to see how that flows. In addition, I'm sure. You've also read that that that in certain places where the quarters are covered the states are going to be able to see.

Speaker 3: corridors didn't pencil. So you didn't see us going deep into corridors. With the widespread support and the magnitude of that support for corridors, we'll be taking a look at that and we'll be working with policymakers to see how that flows.

Speaker 3: In addition, I'm sure you've also read that in certain places where the corridors are covered, the states are going to be able to say, okay, now we're also going to do metropolitan areas.

Say, okay. Now we're also gonna do metropolitan areas. So what look we're really we're working closely with policymakers on how these programs are going to unfold and you can be sure that easy go all will be coming to the party wherever there's an opportunity for us to build charging infrastructure that delivers returns that our shareholders expect.

Speaker 3: So look, we're working closely with policymakers on how these programs are going to unfold and you can be sure that EVgo will be coming to the party wherever there's an opportunity for us to build charging infrastructure that delivers returns at our shareholders.

Understood. Thanks, guys. That's helpful. And then one just last one for me just on a rate reform and in several states on the utility side and for the proceedings are pending in some states could you talk a little bit more about this like how long is the relief or or demand towards holiday in place for and could you.

Speaker 7: So thanks, guys, that's helpful. And then one just last one for me, just done rate reform in several states on the utility side and for the proceedings.

Speaker 7: a pending in some states. Could you talk a little bit more about this? Like how long is the relief or demand charge holiday in place for? And could you maybe also just talk on the cost side?

And maybe also just talk.

On the cost side.

Potential impacts related to increasing commodity pricing and thus electricity pricing and what that means to your cost of energy.

Speaker 7: potential impacts related to increasing commodity pricing and thus electricity pricing and what that means to your cost of energy?

Yeah, Okay. Let me take let me talk about generally and then toss it to you about some of the specifics, but what the the general answer to your question Gabe is either very very jurisdictions for specific so some places you might get a demand charge holiday someplace. Some jurisdiction that we're seeing that specific E V rates that are going to be in place for a long time. So what we want you know obviously.

Speaker 3: Yeah, Olga, let me take, let me talk about generally and then toss it to you about some of the specifics. But what the general answer your question gave is these are very, very jurisdictions.

Speaker 3: specific. So some places you might get a demand charge holiday, some place some jurisdictions we're seeing specific EV rates that are going to be in place for a long time. So what we what you know obviously what we are working on and we've been what we've been successful in is garnering rates in the places in the places Olga mentioned in her comments that are favorable to us building more infrastructure than those places.

What we are working on and we believe what we've been successful in is garnering rates in the places in the places that AGA mentioned in her comments that are favorable to us building more infrastructure in those places.

So it's very very jurisdiction specific but you know where there's lots of things that are pending and it takes some time to go through these regulatory processes Olga on the commodity stuff.

Speaker 3: So it's very, very jurisdiction-specific, but there's a lot of things that are pending, and it takes some time to go through these regulatory processes. Olga, on the command...

Sure so on and I'm surprised that we are not subject to short term volatility or inflationary pressures on those we are he too has a C&I customers. So our tariffs are regulated and and they have fixed over long longer term. If you do it is feels at them.

Speaker 5: Sure, so on energy crisis, we are not subject to short-term volatility or inflation of repression on those. We are utility C&I customers, so our tariffs are regulated and they are fixed. Over long-term, if utility stills at the

And Simon has changed them as revise those tariffs and will become a party.

Speaker 4: environment has changed, they may revise those tariffs and will become a party, yes to that party, but not in the short term. So what's happening right now will not affect us in the coming probably year I would say.

Yes does that party, but by but not in the short term. So what's happening right now will not affect us in the coming probably in year I would say.

Great really helpful. Thanks, everyone.

Thanks Gabe.

Thank you. Our next question is coming from the line of James West with Evercore ISI. Please proceed with your questions.

Speaker 6: Thank you. Our next questions come from the line of James West with Evercore ISI. Please proceed with your questions.

Hey, good morning, everyone.

Okay. So just curious you mentioned a little bit about quarters earlier, but the highway strategy here as you guys are seeing is it.

Speaker 8: Hey, so Kathy curious, you mentioned a little bit about quarters earlier, but the highway strategy here is you guys are seeing.

Rightfully so was the leader in fast charging a lot of the ranging society that people face you know myself included I guess in that is that.

Speaker 8: And rightfully so is the leader in fast charging a lot of the range anxiety that people face. I felt included I guess in that.

I know I can find it easy go no charger.

Speaker 8: You know, I know I can find an EVGO, you know, torture.

And in Los Angeles at a whole foods or things like that but I'm not convinced they can do that on the highway wanted take a longer trip and so I recognize there's a returns a focus to the business, but there's also the chicken and the egg or the range anxiety and so how are you guys thinking about building out into.

Speaker 8: in Los Angeles, at a hope of food, or things like that.

Speaker 8: But I'm not convinced I can do that on the highway. I want to take a longer trip. And so I recognize there's a returns focus to the business, but there's also that chicken in the egg of the range anxiety. And so how are you guys thinking about building out into...

First George into the highway system is that something that maybe you would work on with the you know the gym a relationship I guess your overall strategy there would be would be great to hear about.

Speaker 8: fast-sourging into the highway system, is that something that maybe you would work on with the GM relationship, I guess your overall strategy there would be, would be great to hear about.

Yeah look at it.

Got it.

When every car in America isn't easy then the quarters would pencil just like Metropolitan area, probably right. I mean, you know in your end.

Speaker 3: When every car in America is an EV, then the corridors were penciled just like metropolitan areas, probably, right? I mean, you know, and, but we're now in an interim period, but as I think the policy...

Well, we're now a word and enter winter interim period, but as I think the policy.

The policy support that's coming for quarters is going to change that equation and and expand the aperture E. V. Go can make money for its shareholders. So I think what we're doing is where we're excited about those possibilities.

Speaker 3: The policy support that's coming for quarters is going to change that equation and expand the aperture over which EVGO can make money for its shareholders. So I think what we're doing is we're excited about those possibilities.

Yes, and G M. As excited about those possibilities. So I think we just just continue to watch the space change, we'll keep we'll keep you posted on on our business opportunities again, but again, we're not going to deviate from our financial discipline.

Speaker 3: Yes, and GM is excited about those possibilities. So I think we just continue to watch this space, James. We'll keep you posted on our business opportunities. Again, we're not going to deviate from our financial discipline. But there are lots of opportunities to have others come to the party to create those circumstances where we can invest in new places and new ways, whether it's corridors or more rural areas or new states, to get to deliver those returns. Bye.

But there are lots of opportunities to have others come to the party to create those circumstances, where we can invest in new places and new ways, whether its quarters or more rural areas or new state to get to do you know to deliver those returns.

Okay that makes sense.

But I do like the returns focus.

Speaker 8: I do like the returns focus, so trust me, I get that. On the permitting side and the easement side, the easel is like there's some progress.

Trust me I I get that the on the permitting side and the easement side. It sounds like there's some some progress being made here to speed up some of the development of the network.

Speaker 8: made here to speed up some of the development of the network.

Is that.

People become more comfortable is it a some standardization of the permitting process. What do you think is driving that.

Speaker 8: people become more comfortable is that some standardization of the permitting process what do you think is driving that whole improvement in remark and recognizing that it's still right.

That whole.

And remember, Eric and recognizing it's still an impediment to.

Yeah. So look first and foremost I think it's experience like there are literally thousands of local governments that are now being asked many for the first time can you approve this fast charging stations and they say what I mean, we've got only got one in Franklin, Ohio. That's at the local Council has considered at three times just like what is this.

Speaker 3: Yeah, look, first and foremost, I think it's experience. Like there are literally thousands of local governments that are now being asked, many for the first time, can you approve this fast charging station?

Speaker 3: and they say what? I mean, we've got one example in Ohio that the local council has considered it three times. He's like, what is this? Do we need to ask the landscape guy about whether the plants will go care around this thing? I mean, that's quite an extreme example.

Do we need to ask the landscape guy about how well the plants look okay around this thing.

That's quite an extreme example, but I kind of liken it to like that.

Speaker 3: But I kind of liken it to like the DMV. Like, you know, when you go to the DMV, eventually they're going to renew your driver's license. Right. You're just not sure how long it's going to take. This is what dealing with the local government authorities are like. Some of them are going to go. Some of them are going to learn and it's going to be like.

The D. M V. Like you know when you go to the Dnb eventually they're going to renew your driver's license right, you're just not sure how long it's going to take this is worth dealing with the local government authorities or like what are some of them are gonna go some of them are going to learn and it's gonna be like electronic rubber stamping and it'll be a couple of weeks and we have some examples of that sort of really fast now.

Speaker 3: Electronic rubber stamping and it'll be a couple weeks and we have some examples of that that are really fast now Other stuff just to take longer what we are doing at EVGO is we're building that into our plant

They're just going to take longer what we are doing a D. V go as we're building that into our planning now like you know you can because it would be it would be we would be drilling if we thought everybody is going to move to electronic yes off you go.

Speaker 3: like you know you because it would be it would be we would be dreaming if we thought everybody's going to move to that electronic yes off you go

They're all gonna be individuals', so look but the flywheel spinning the processing that's happening in our connected watch initiatives, it's just growing and growing like we have these quarterly salons and people.

Speaker 3: they're all going to be individuals. So look, the fly was spinning. The processing is happening and our connection was initiative is just growing and growing. We have these quarterly salons and people from all across the country come on and they share best practice. For example, in the last one, State of New Jersey has passed an ordinance.

All across the country come on and they share best practices. For example in the last one state of New Jersey has passed an ordinance to streamline local permitting that that that the representative the lead from the New Jersey came onto our conduct of what's call and shared that experience with others and they said Oh well that's interesting. So that's just one of the things that we're doing it even to go to it.

Speaker 3: to streamline local permitting that the representative of the lead from the New Jersey came on to our connect the Watts call and shared that experience with others and they said, all of that's interesting. So that's just one of the things that we're doing at EVGO to encourage the streamlining of the process.

Courage, the streamlining of the process okay.

Okay very helpful. Thanks, guys.

Pleasure.

Thank you our next questions come from the line of Ryan Greenwald with Bank of America. Please proceed with your question.

Speaker 6: Thank you. Our next questions come from the line of Ryan Greenwald with Bank of America. Please proceed with your questions. Hey, good morning, everyone.

Hey, good morning, everyone.

Maybe I can kick off in.

Good morning in terms of the increase to the revenue expectations in the widening to the top end of 22 million I know in the initial projections. So you guys had laid out you were excluding any revenue associated with the OEM payments just wanted to clarify this new range is inclusive of that contribution that you have a bit more visibility here and how much of a four year revenue increase was attributed to the deal.

Speaker 6: Good morning. In terms of the increase to the revenue expectations and the widening to the top end of 22 million, I know in the initial projections that you guys had laid out, you were excluding any revenue associated with the OEM payments. Just wanted to clarify if this new range is inclusive of that contribution as you have a bit more visibility here and how much of the full year revenue increases attributed to these and any contribution from a card though.

And any contribution from a cargo.

I'm sure. So we do not include contribution additional contribution from OEM revenues in here or young revenues, they they sitting in our balance sheet.

Speaker 5: Sure, so we do not include contribution additional contributions from OEM revenues in here. OEM revenues they sit now balanced as the third revenue and will be amortized in a due course. That increased definitely not associated with that. It has some of the revenue were not disclosed in how much.

Deferred revenue and will be amortized in due course, so that that increase definitely not associated with that it has some of the cargo.

<unk> revenue, we're not disclosing how much.

But our ancillary revenue went up by seven 3% this quarter versus last quarter and that was mostly driven by inclusion of a cargo. So you could probably infer from them.

Speaker 4: but our answer to the revenue went up by 73%. This quarter versus last quarter, and it was mostly driven by inclusion of a carver, so you could probably infer from there.

Got it that's helpful. And then in terms of the regulatory credit revenue increase was pretty modest quarter over quarter. Despite the meaningful pick up in throughput any color you can provide just in terms of the latest trends youre seeing in terms of also your best pricing and any dynamics around the F. C I credits.

Speaker 6: got it that helpful. And then in terms of the regulatory credit revenue, increased was pretty modest, quarter over quarter, despite the meaningful pickup and throughput. Any color you can provide just in terms of latest trends you're seeing in terms of LCFS pricing and any dynamics around the FCI credit.

Sure. So right now we are recognizing the revenue took waters after Virginia rate kilowatt hours associated with that revenue so pretty much. The Q3 Elsea first volume is associated with Q1 and Q2 is associated with Q4 two times at the end. So there was no meaningful pick up between Q1 and Q4.

Speaker 5: Sure. So right now we are recognizing the revenue took waters after we generate kilowatt hours associated with that revenue. So pretty much the Q3 LCFS volume is associated with Q1 and Q2 is associated with Q4 to enter. There was no meaningful pickup between Q1 and Q4 due to bad.

You too.

But then still exist in college quite severe COVID-19 restrictions. So that's what you see in kind of Q2 to Q3 dynamic on the price and we trade it our Q3 volumes at 180 per crowded.

Speaker 4: still exist in quite to the coverage restrictions.

Speaker 4: So that's what you see in kind of P2 to P3 dynamics. On the price, we traded...

Speaker 4: our Q3 volumes at 180 per credit.

Right now we have a bit of an up price price compression environment. So we would most probably will show a Q4 volumes traded it lowers amdocs, we don't know that yet.

Speaker 4: Right now we're in a bit of a price compression environment. So we most probably will see our Q4 volumes traded at lower than that. We don't know that yet.

And on F. C. I glad that's F C. I graduate that actually exact same courageous, there's I'll say a fast so they get bundled together and trade. It in the same way so they're subject to all the same pricing, but let's see let's see increases or decreases.

Speaker 4: And on FCI credits, FCI credits are actually direct same credits as OCFS, so they get bundled together and traded in the same way. So they're subject to all the same price. The liquidity increases with the creepers.

Got it. Thank you for that and then maybe just lastly, it looks like you guys are implying a yearend charter count closer to 1700 versus the 'twenty 200, plus that you guys laid out there in your initial projections.

Speaker 6: Got it. Thank you for that. And then maybe just lastly, looks like you guys are applying a year end charger count closer to 1700 versus the 2200 plus that you guys laid out there in your initial projections. Appreciate the fact that you expect another 200 and change to be under construction here, but can you just provide a bit more color in terms of how you're thinking about the impact into 22? I know there's a bunch of kind of puts and takes here, but specifically around the delay in deployments relative to what you previously outlined.

The fact that you expect another 200 and change to be under construction here, but can you just provide a bit more color in terms of how youre thinking about the impact into 'twenty. Two I know, there's a bunch of kind of puts and takes here but.

Specifically around the delay in deployments relative to what you've previously outlined.

Yeah, I mean, I just think what we've we talked about the flywheel, we talk about the that sort of the pain points that are that are taking a long time. So that the permitting we've discussed you know per Jamie dangerous question the.

Speaker 3: Yeah, I mean, I just think what we talk about the flywheel, we talk about the sort of the pain points that are taking a long time. So the permitting we've discussed per James's question.

Speaker 3: The utility easement process is turned out, turning out to take a bit longer. So when our standard that we're going to market with typically,

The utility easement process has turned out turning out to take a bit longer so when when our standard that we're going to market with typically Brian is the 350 kilowatt charging configuration that almost always requires a service upgrades in the utility and if it requires a service upgrade the utility engineering as a just a little bit of it.

Speaker 3: Ryan is a 350 kilowatt charging configuration. That almost always requires a service upgrade from the utility.

Speaker 3: And if it requires a service upgrade, the utility engineering is just a little bit, it takes a little bit more on the utility engineering side plus.

It takes a little bit more on the utility engineering five plus.

Do you have a service upgrade it usually requires an easement or some sort of access agreement between the landlord the land owner and the utility itself that just adds more time to the process. So that's that's sort of what we're witnessing in terms of the timing of these of the job. The charger installed so again, it's not a question.

Speaker 3: If you have a service upgrade, it usually requires an easement or some sort of access agreement between the landlord, the land owner and the utility itself. That just adds more time to the process.

Speaker 3: So that's sort of what we're witnessing in terms of the timing of the charger installed. So again, it's not a question of if, it's more a question of the time it takes to get these things deployed. So we're not in any way concerned about it, we're just being pragmatic and realistic about what the time is going to take.

If it's more a question of the time it takes to get these things deployed. So we're you know we're we're not we're not in any way concerned about it. We're just you know being being pragmatic and realistic about what the time, it's going to take.

In terms of financial impact, though anything to kind of consider there.

Speaker 6: In terms of financial impact though, anything to kind of consider there.

Well no as I think we've tried to explain is that is that what we're building right now is for as long as the Wayne Gretzky, saying is for future EV for future EV sales that are going to probably be taking place in 'twenty three 'twenty four so we've got a bunch of headroom on our current network now to be able to absorb handily all of Oh.

Speaker 3: Well, now as I think we've tried to explain is that what we're building right now is for, is the way you're actually thinking. It's for future EV, you know, for future EV sales that are going to probably be taking place in 23, 24. So we've got a bunch of headroom on our current network now to be able to absorb handily.

All of the E V sales that are coming so whether whether we turn on you know 100, new Chargers this quarter next quarter or even midway through 2022, it's not going to impact revenues in anyway.

Speaker 3: all of the EV sales that are coming. So whether we turn on 100 new chargers this quarter, next quarter, or even midway through 2022, it's not going to impact revenues in any way.

Great I'll leave it there thanks for the time.

Thank you. Our next question is coming from the line of Mohit Mandel with Credit Suisse. Please proceed with your question.

Speaker 9: Thank you. Our next questions come from the line of Mahip Manloi with Credit Suisse. Please proceed with your question.

Hey, good morning, Thanks for taking my questions.

Speaker 10: Good morning, thanks for taking the questions. Just a quick follow up on the previous question. If you can quantify how many of these

Just a quick follow up on the previous question.

If you can quantify the call many of these <unk>.

<unk> under construction at our existing sites versus a new sites.

Speaker 10: stalls under construction are at existing sites versus...

Oh, the vast majority of so I'll instruction or at new sites go ahead, sorry, yoga yoga and ironed out in the same location go head all that I had I was about to say exactly what you have just stopped I agree strongly following most of it is on the new side.

Speaker 3: Reality of those all 18 sites and I have heard something all gunfire not about you have two

Gotcha.

Speaker 10: Gotcha. And just follow up on that, like I think, go ahead and mention T.

Yeah, just a follow up on that like I think in total that you mentioned a T.

Charges, the new charger necessarily not contributing much to the 'twenty to 'twenty two revenues. So if we could just probably remind us like why is that why are you seeing.

Speaker 10: charges, the new charges are not currently covering much of the 2022 revenues. So forget this is probably a reminder, like why is that? Why are you seeing a slower ramp here on new locations? And can the overall new slow around EVs or EV charges is that changing? Any of that ramp up? Either for existing or.

Slower ramp here on new locations and B E.

Just kind.

Kind of the overall news flow around Evs or EV charges is that changing and you start to ramp up.

For existing or for the music.

Yeah, Let me start and then I'll toss it to Olga Okay. Although do you Wanna go.

Speaker 3: Yeah, let me start and then I'll talk about the ogre. Okay, okay, do you want to go?

No not really starts.

Speaker 3: Then the blue stars. Yeah, so the, as I say, I wouldn't call it a slower ramp. I would say it's a longer time table to get things energized.

Yeah. So the as I say, it's I wouldn't call. It a slower ramp I would say, it's a longer timetable to get things energized right. So so for example, like you know at the end of the as our end of quarter call with G. M. Anthony in Q3, we had we had built a whole bunch of salt and dozens of them were like finished beautiful pictures there.

Speaker 3: Right, so for example, like, you know, at the end of the, as our end of quarter call was GM and so on in Q3, we had, we had built a whole bunch of stalls and on dozens of them were like finished beautiful pictures. They were sitting there in a parking lot, but the utility hadn't come to do the final inspection and energization. I mean, literally dozens of them. So that's a common practice that's outside of our control. So anybody, Olga, over to you.

We're sitting there in the parking lots, but the utility hadn't come to do the final inspection and energized they should I mean literally dozens of them. So that's a that's a common practice that's outside of our control. So anyway I'll go over to you.

Sure so on the ramp up once they say that new styles.

Speaker 3: Sure, so on the ramp up, when we say that new stones, we don't necessarily say they don't contribute, but we're saying that they don't necessarily create additional traffic right away. So if we open overnight, magically, 10,000 new stones and Los Angeles, for example, that would be possible, we won't necessarily...

We don't necessarily say they don't contribute what we're saying is it doesn't necessarily create additional traffic right away. So if we open overnight magically 10, thousands news fills in Los Angeles for example that would be possible.

We won't necessarily see.

The equivalent increase in the chocolate overnight just because the number of cars in Los Angeles overnight has not increased and what what happens in such situations. When we opened new stations, we just see new customers and old customers. They kind of they just your views on people like Oh, and you station, Okay I'm gonna be using this one instead of they wanted to use them before.

Speaker 3: The equivalent increase in the chart at overnight is because the number of cars in Los Angeles overnight has not increased.

Speaker 3: And what happens in such situations when we open new stations, we just see...

Speaker 3: New customers and old customers, they call it redestribute. And people are like, oh, a new station, okay, I'm going to be using this one instead of the one I've been using before because it's huge.

Because if you're.

It's in the more convenient location and whatnot and so as I tried to kind of get them to distribute guess sort of just debuted itself. You know short term and then was that this capacity he kind of gets filled up.

Speaker 3: It's an immocent being a vocational one. So the traffic kind of gets to distribute itself in a short term. And then with capacity kind of gets filled up.

Was mark was more cars coming to the specific market. So I like the I really like to compare this to maybe a chain or a coffee shop like does that mainly coffee drinkers into sound. So if you just keep on opening in coffee shops, and a number of coffee drinkers.

Speaker 3: with more cars coming to the specific market. So I really like to compare this to maybe a chain of a coffee shop. There are that many coffee drinkers in this town. So if you keep on opening coffee shops and a number of coffee drinkers...

The increase in that particular town right you won't see that revenue well Luckily in a very different business and coffee shops, because that were coffee drinkers Achy E V drivers keep on increasing at a very high rate. So we're building slightly ahead of those EV drivers come into the market, but that doesn't necessarily mean that new station.

Speaker 3: don't increase in that particular town, right? You won't see that revenue increase. We're luckily in a very different business than coffee shops because our coffee drinkers, AKA EV drivers, keep on increasing at a very high rate. So with buildings slightly ahead of those EV drivers come into the market, but that doesn't necessarily mean that new stations don't have users. It is the users' yet organic, where they distributed to people choose where they want to charge and open which is new location. Sometimes they prefer to stick with the old location because they were mockered.

I don't have the users. It's just the use of debt organically to distribute its just people choose whether they want a charging opened its just new locations, sometimes they prefer to stick with the old location because it was more convenient I.

I hope that answer your question.

Speaker 3: I hope that answer your question.

Thank you our next questions come from the line of John Lopez with vertical group. Please proceed with your question.

Speaker 9: Thank you. Our next questions come from the line of John Lopez with Vertical Group. Please proceed with your questions.

Hi, Thanks, so much.

Speaker 11: Hey, thanks so much. I had two if I could. The first one, I just wanted to come back to the throughput question from a bit earlier and I apologize, but I think a year ago your throughput actually increased between calendar Q3 and calendar Q4. Why was that and what would make it different this year versus last?

I had two if I could the first one I just wanted to come back to the throughput question from a bit earlier and.

I apologize, but I think a year ago your throughput actually increased between calendar Q3 and calendar Q4.

Why was that and what would make it different this year versus last.

Yeah.

So last year, it wouldn't necessarily be iraqians case, because the increases could have been attribute it to COVID-19 restrictions easing in Q4 from my mum in California, what does not forget $70 75 per cent I've ever seen which has happened and he has happened in California from my memory.

Speaker 4: So last year wouldn't necessarily be a reference case because the increases could have been attributed to COVID restrictions easing in Q4. From my memory, in California, let us not forget, 70 to 75 percent of everything which is happening here is happening in California. From my memory, let us not forget, 70 to 75 percent of everything which is happening in California. From my memory, in California, let us not forget, 70 to 75 percent of everything which

The vast majority of Q4, we saw like an improvement in the restaurants open and people started getting out on the streets and whatnot and then end of Q4, beginning in Q1. They again introduced new restrictions because there was a new wave so I wouldn't necessarily look at the 'twenty to 'twenty and then for Andy and normal pattern. So much because they were heavily a song.

Speaker 4: The vast majority of Q4 was so like an improvement and restaurants got open and people started getting out on the streets and whatnot. And then end of Q4 beginning in Q1, they again introduced new restrictions because there was a new wave. So I wouldn't necessarily look at the 2020 and infer any normal patterns from it because they were heavily affected by what was happening with COVID.

Ted by by what was happening was called it.

Gotcha, Okay that helps thanks and then.

The second one I wanted to come back to the G. M commentary and so I apologize I might not have caught all of this but I thought I heard you say that you're effectively trading off some higher cost near term units for some lower cost units longer term like further out in time.

Speaker 11: And the second one, I wanted to come back to GM commentary and show I apologize. I'm not a caught all this, but I thought I heard you say that you're effectively trading off some higher cost near-term units for some lower-cost units longer term, like further out in time.

So he did I hear that right could you just tick through assuming I did tick through like what changes in the cost profile and see is the is the dollar value of that engagement actually different or is it the same dollar value, but just a higher number of chargers.

Speaker 11: So, A, did I hear that right? B, could you just kick through, assuming I did, kick through like what changes in the cost profile? And C, is the dollar value of that engagement actually different or is the same dollar value but just a higher number of chargers?

Yeah, John I know you didn't quite hear right.

Speaker 1: Yeah, John , no, you didn't quite hear right. Remember that EVA goes principles are we will we will invest in the charging station where it pencils and one of the key. One of the key inputs are many inputs about what makes it pencil the caffex etc etc etc. The rent but one of them is what's the utilization on that station going to be? So when you're building stations where in the earlier years when there were fewer EVs on the road.

Remember that E. V goes principles are we will we will invest in the charging station, where it pencils and one of the key.

One of the key inputs there are many inputs about what makes it penciled for capex etcetera, etcetera, etcetera, the rent, but one of them is what is the utilization on that station going to be so when you are building stations were in the earlier years when there were fewer evs on the road.

It takes more money from someplace else, if youre going to build them. So if you're building in 2021 that the the subsidy per station required by somebody else and in this case G. M is higher if you're building in 2023 after dozens more evs if it's a market that's been sold than the required subsidy to make a charge your pencil is much much.

Speaker 1: It takes more money from someplace else if you're going to build them. So if you're building in 2021, the subsidy per station required by somebody else, and in this case, GM, is higher. If you're building in 2023, after dozens more EVs, if it's a market and been sold, then the required subsidy to make a charger pencil is much, much less. So what we've been able to do, for the same $90 million of GM contributions, we've been able to build 500 extra charging stalls.

So what we've been able to do for the same $90 million of G. M contribution we've been able to build 500 extra charging stalls.

In the latter years of the build program and have an increased the overall N. P V E V go.

Speaker 1: in the latter years of the build program and have it increase the overall MTV to EVGO.

Oh, Okay that really helps category, but sorry is the total commitment dollar commitment between the two of you unchanged and in the charter count higher.

Speaker 11: Okay, that really helps, Kathy, but sorry, is the total commitment, dollar commitment between the two of you unchanged in a charger count higher? Yes. Okay, got it.

Yes.

Okay got it alright, thanks I appreciate it.

No problem.

Yeah.

Thank you our next questions come from the line of Stanch Bednar with Pickering Energy Partners. Please proceed with your questions.

Speaker 9: Thank you. Our next questions come from the line of Stan Schbetner with Pickering Energy Partners. Please proceed with your questions.

Hi, Thanks for taking my question.

Speaker 12: Hi, thanks for taking my question. On fleet sales, as you continue to pivot towards fleet over time, one, do you maintain your long-term target to get fleet through to to be about two thirds of your toll throughput? And as that trend continues, do you expect to see revenue growth sequentially to moderately lag the rate of your throughput growth? Oh, you want to take this one?

On fleet sales as you continue to pivot towards fleet over time, one do you maintain your long term target to get fleet through put to be about two thirds of your total throughput.

And as that trend continues do you expect to see revenue growth sequentially to moderately lagged the rate of your throughput growth.

Oh, you would take us up.

Sure.

Not necessarily in the long run in a short in the short run you might see those those fluctuations and they could go both ways you might see revenue grow in quicker than throughput one would open a new dedicated locations. They start paying us immediately for all the stores that are open but it takes our partners time.

Speaker 5: In a short run, you might see those fluctuations and they could go both ways. You might see revenue grow in quicker.

Speaker 4: Then throughput when we open you dedicated location, the set pain is immediately for all the stalls that are open, but it takes our partners.

Often to ramp up capacity. So you might see again, if you look at a quarter to quarter developments in the next couple of years, but Oh, the revenue grew but the super data or vice versa riding the fallen Gwadar. You'll for example, see revenue didn't grow that much, but but but the throughput ramped up because now theyre I'm talking capacities. They really look at a long term they shouldn't go hands on.

Speaker 4: time often to ramp up capacity. So you might see, again, if you look at a quarter to quarter developments in the next couple years, but oh, the revenue grew, but the throughput didn't, or vice versa, right? The following quarter, you'll, for example, see revenue didn't grow that much, but but but the throughput ramped up, because now they're in top capacity. So really look at a long term, they should go hand in hand.

Have we.

We don't foresee much of an overlap if you really take a step back and look at it in the multiyear.

Speaker 4: We don't foresee much of a lag if you really take us to back and look at it in the multi-year line.

Fine.

So if you think about in pricing terms and is it your fleet pricing somewhat of a discount to what you're charging on a retail level and so that would have some impact on average pricing on a going forward basis.

Speaker 12: So if you think about in pricing terms then, isn't your fleet pricing somewhat of a discount to what you're charging at a retail level and so that would have some impact on average pricing on a going forward basis.

Oh that is not quite so I apologies I thought you were asking about food specifically if you look at the business overall, yeah. That's it.

Speaker 4: Oh, that is an apology. So I thought you were asking us which specifically, if you look at the business overall, yes, that will have that effect. If you just take the overall kilowatt hour throughput versus overall revenue, because per kilowatt hour price for fleet is lower, you'll notice this effect. If you however look at the fleet and isolation, you probably will see a much more even development between the revenue and so.

We will have that effect. If you just take the overall kilowatt hours throughput versus overall revenue because but for a per kilowatt hour price for fleet is lower you'll notice the stock. If you. However look at the fleet in isolation, you probably will see a much more even.

Development between the revenue and so forth.

And then just one follow on as you think about being able to integrate additional services and related revenues with fleet customers on a medium to long term basis. How do you think about the margin profile of fleet revenues versus your retail business.

Speaker 12: And then just when follow on, as you think about being able to integrate additional services and related revenues with fleet customers on a medium to the long-term basis, how do you think about the margin profile of fleet revenues versus your retail business?

In comparison.

So so that's that that's an interesting question because I was with business has two distinct barged public and dedicated public public is when we can give access to our fleet partners and their cars coming out and that is looking to drive and we do give them a discount so on a per kilowatt hour basis would do make.

Speaker 4: So that's an interesting question because I will say business has two distinct parts, public and dedicated, public.

Speaker 4: Public is when we give access to our fleet partners and their cars come on our network and their drive and we do give them the volumetric discount. So on a per kilowatt, our basis would do make less over margin, but the volumes definitely make up for it because they drive a lot.

Less of a margin, but the volumes definitely make up for it because they they they they drive a lot on a dedicated stations. So it's a very different business model, we don't take much of a risk on the throughput and we pretty much leaves if you want to call it or a charge of dedicated price for every store.

Speaker 4: On a dedicated station, there's a very different business model. We don't take much risk on the throughput and we pretty much leave if you want to call it or charge a dedicated price for every stall our partners are using. And those are very high margins.

Parking say using them those are very high margin businesses and they also have a very strong downside protection. So overall I think the margin profiles of two businesses are similar when you look at it. It makes if you just look a dedicated suite business. It's a it's a it's a very advantages business from them.

Speaker 4: businesses and they also have a very strong downside protection. So overall, I think the margin-profile of two businesses are similar. When you look at the mix, if you just look at dedicated sweet business, it's a very advantageous business from a margin-profile.

Margin perspective, great.

Great. Thanks very much.

Yeah.

Thank you.

Speaker 9: Thank you. That is all the time we have for a question and answer for today's call.

That is all the time, we have for question and answer for today's call.

We do appreciate your participation. This does conclude today's teleconference. You may disconnect your lines at this time.

Speaker 9: You do appreciate your participation. This does conclude today's teleconference. You may disconnect your lines at this time.

And have a great day.

Thank you.

Thank you.

Yeah.