Q4 2021 EVgo Inc Earnings Call

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Outro

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Hi, Brooks of Investor Relations.

Ted Brooks: Everyone, welcome to EVgo's fourth quarter and full year 2021 earnings call. My name is Ted Brooks and I head investor relations at the company.

Everyone welcome to <unk> fourth quarter and full year 2021 earnings call. My name is Ted Brooks might head Investor Relations at the company as we can.

And be accessed from the investors section.

That's one of our website at investors.

The call will be archived and available.

Ted Brooks: Investor presentations 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 investor.

Mutation and a transcript of today's proceedings will be available at the events and presentations section of the investors page after the conclusion.

Today's call.

Speaker Change: Joining me on today's call are Kathy Zoi, Evigo's CEO , and Olga Shevchenkova, the co-founder of Evigo. We will be discussing Evigo's latest financial

Joining me on today's call are Kathy, Julie <unk>, CEO , and Olga sugar and Coco.

We will be discussing <unk> latest financials.

221, followed by a Q&A session.

During the call management will be making forward looking statements regarding the 'twenty, where expected growth and investment initiatives.

Speaker Change: During the call, management will be making forward-looking statements regarding the 20 or expected growth and investment initiatives. These forward-looking statements, many of which are beyond our control.

Yeah.

These forward looking.

Many of which are beyond our control.

Materially from our expectations.

The severity and duration of the effect.

Thanks to the COVID-19 pandemic.

Speaker Change: These forward-looking statements apply as of today, and we undertake no obligation to update these statements that contain a detailed description of factors that could cause...

These forward looking statements apply as of today and we undertake no obligation to update these statements detailed description of factors that could cause.

Speaker Change: Please refer to our Form 10-K filed soon with the SEC and posted to the investor section of our website.

Please refer to our Form 10-K filed soon with the SEC and posted to the investors section of our website.

Speaker Change: Also, please note that certain financial measures we use on this call are on a non-GAAP basis. For historical periods, we provide reconciliations of these non-GAAP financials. Your presentation can be found on the Investor section of our website.

Also please note that certain financial measures we use on this call on a non-GAAP basis for historical periods. We provided reconciliations of these non-GAAP financial presentation can be found on the investor.

Mr section of our website.

Speaker Change: With that, I will turn the call over to Kathy Zoie, EVgo's CEO . Kathy?

With that I will turn the call over to Kathy Zoe <unk> CEO kathi.

Thanks, Ted and good morning, everyone.

Kathy: Indigo has another strong quarter, wrapping up a tremendous first year as a public.

E V go has another strong quarter wrapping up a tremendous first year as a public company.

Kathy: We made significant progress in solidifying our position as the nation's largest public fast-charging network for electric vehicles in a rapidly growing EV market.

We made significant progress in solidifying our position as the nations largest public charging network for electric vehicles, and a rapidly growing market.

Kathy: I'd like to begin this morning with some observations about the EV industry given the escalating market momentum and enthusiasm we're seeing.

I'd like to begin this morning, with some observations about the EV industry, given the escalating market momentum and enthusiasm.

Kathy: In 2021 alone, the market share of electric vehicles more than doubled, along with U.S. driver purchases of EVs.

In 2021 alone the market share of electric vehicles more than doubled along with U S driver purchases of Evs.

Kathy: Approximately 475,000 electric vehicles were purchased in the U.S. with sales from just the year before.

Approximately 475000 electric vehicles purchased Sydney with sales from just the year before.

Kathy: This is just the beginning. Auto manufacturers are planning to introduce approximately 50 new EV models just over the next 24 months, including the arrival of EVs in segments like SUVs and pickup trucks that will unlock new demographic

I think it's just the beginning auto manufacturers are planning.

Today, approximately 50, new EV models over the next 24 months, including the arrival of Evs in segments like Suvs and pickup trucks.

Unlock new demographic frontiers in EV adoption.

Kathy: And by 2025, dozens more will follow, creating an abundance of EV choice for every type of driver.

And the 2025 that means more will follow creating an abundance an easy choice for every type of drive it.

Kathy: We expect these trends will be further accelerated by tailwinds in the macro environment, as electrification of transportation has never been more widely accepted and anticipated.

We expect these trends will be further accelerated by tailwind in the macro environment.

Electrification of transportation has never been more widely accepted and anticipated.

Kathy: The improving cost and breadth of offerings comes at a time when rising commodity prices makes EV ownership more economically attractive than ever.

The improving cost and breadth of offerings comes at a time when rising commodity prices makes EV ownership more economically attractive than ever.

As the pace and easy adoption accelerates forecasters expect annual EV purchases to triple by 2025, and then Triple again by 2030, it's worth remembering that we expect the demand for DC fast charging to outpace this already rapid market growth.

Kathy: As the pace of EV adoption accelerates, forecasters expect annual EV purchases to triple by 2025 and then triple again by 2030, it's worth remembering that we expect the demand for DC fast charging to outpace this already rapid market growth.

Kathy: Automakers are meeting the consumer demand for fast charging solutions with battery technologies capable of supporting significantly higher levels of charging throughput.

Automakers are meeting the consumer demand for fast charging solutions with battery technology is capable of supporting significantly higher levels of charging throughput.

Kathy: With EVgo's growth and ability to scale profitability tied to EV adoption, we are energized by the powerful secular trends bringing more EVs to the road. Everything we're witnessing across the industry reinforces our confidence in this market and EVgo's leading position within it.

With EDI goes growth and ability to scale profitability tied to EV adoption, we are energized by the powerful secular trends, bringing more evs to the road.

Everything we're witnessing across the industry reinforces our confidence in this market and <unk> leading position within it.

Kathy: It's why we have more conviction than ever in the investments we're making and the plan we're executing against.

It's why we have more conviction than ever and the investments, we're making and the plan we're executing against.

Kathy: Let me now highlight some of EDU's remarkable accomplishments in fiscal year 2021.

Let me now highlight some of <unk> remarkable accomplishments in fiscal year 2021.

Kathy: We delivered 26.4 gigawatt hours of charging throughput, a 68% increase over 2020.

We delivered $26 four gigawatt hours of charging throughput.

68% increase over 2020.

Kathy: This demand for EVgo's charging services led to $22.2 million in revenue, a 52% increase over 2020.

This demand for EV charging services led to $22 2 million and revenues of 52% increase over 2020.

Kathy: We ended the year with 340,000 customer accounts as more drivers chose EVgo as a key charging partner, up from 231,000 at the start of 2021.

We ended the year with 340000 customer accounts as more drivers chosen <unk> as a key charging partner.

Up from 231000.

<unk> 2021.

Kathy: This equates to about 80% of non-Tesla EVs sold in the U.S. last year coming to EVgo.

This equates to about 80% of non Tesla Evs sold in the U S last year Tony E V go.

Yeah.

Kathy: This demand for EVgo and our charging services extends past individual drivers and is illuminated by our numerous partnerships throughout the industry.

This demand for E V go and are charging Cherokee extends past individual drivers and is illuminated by our numerous partnerships throughout the industry.

Kathy: further cementing our market leadership in the EV charging space.

Further cementing our market leadership in the EV charging space.

Kathy: We hear it time and again when potential partners call us, and we're often that first phone call they make. They recognize EVgo's experience, track record, and leadership position.

We hear it time and again when potential partners call up and were often that first phone call. They make they recognize E. V. Go has experienced track record and leadership position.

Kathy: Over the last year, we've signed several new landmark partnerships with key OEMs, including Subaru and Toyota. EVgo is now the charging partner.

Over the last year, we signed several new landmark partnerships with key Oems, including Subaru and Toyota.

<unk> is now the charging partner of automakers.

Kathy: Should these OEM leaders ramp up their own EV production, EVgo is exceptionally well positioned to be the charging network of choice for new EV drivers.

Which of these OEM leaders ramps there all in EV production EV.

<unk> is exceptionally well positioned to be the charging network of choice for do we be drivers.

Kathy: We've also grown our fleet business with numerous new and expanded partnerships.

We've also grown our seat business with numerous new and expanded partnerships.

And leaders in the autonomous vehicle space.

Kathy: And we're introducing our eWeGo Xtend business line to the market today.

We're introducing R. E V go extend business lines of the market today and about.

Operator.

Kathy: Additionally, we ended the year with over 1,600 DCFC stalls in operation and increased the size of the EVgo development pipeline to approximately 3,100 new stalls, marking a 26% rise since the end of the third quarter.

Additionally, we ended the year with over 600 D. C. S T cells in operation and increased the size of the EV go development pipeline to approximately 3100 installed marking a 26% rise since the end of the third quarter.

Over the longer term.

Kathy: We have a funnel of approximately 4,000 additional sites.

We have a funnel of approximately 4000 additional flight each to wholesale.

Kathy: which represents close to five times the number of fast-charging

At least for charging saw which represents close to five times the number of fast charging station locations. We currently operate.

Kathy: In terms of technology, EVgo continues to add value to our infrastructure business by developing innovative software products that attract new customers and deepen relationships with existing drivers and B2B partners.

In terms of technology <unk> continues to add value to our infrastructure business by developing innovative software products that attract new customers and deepen relationships with existing drivers and <unk> partners.

Kathy: This includes the rollout of EVgo Optima, our customized software for fleets, a new mobile app, and EVgo Inside, our proprietary software and API suite, all designed around the same principle of anticipating how to meet our customers' charging needs in a comprehensive and intuitive way.

This includes the rollout of BB go Optima, our customized software for fleet.

Our new mobile App.

And even though inside our proprietary software or an API suite.

All designed around the same principle of anticipating how to meet our customers' changing needs and a comprehensive and intuitive way.

Kathy: In short, EVgo has been busy in 2021 laying the foundation for a comprehensive electrified transportation future.

In short <unk> has been busy in 2021 laying the foundation for a comprehensive electrified transportation future.

Kathy: I'll return to these achievements and expansions of our business in more detail in a few moments.

I will return to these achievements and expenses of our business with some more detail in a few moments, but let me now touch on the passage of the federal government infrastructure legislation in November and important moment that will certainly generate material effects.

Kathy: But let me now touch on the passage of the federal government's infrastructure legislation in November , an important moment that will certainly generate material effects.

Kathy: The National Electric Vehicle Infrastructure Program, or NEVI, will allocate $5 billion to states over the next five years, with an initial $615 million being made available later this year.

The national electric vehicle infrastructure program or <unk>.

$5 billion to states over the next five years with an initial $615 million being made available later this year.

Kathy: This federal support to fast-charging infrastructure may cover as much as 80% of a project's cost, and may include coverage of operating costs as well as capital expenditures.

This federal support for fast charging infrastructure it may cover as much as 80% of our projects.

And they include coverage of operating costs as well as capital expenditure.

Kathy: The federal support may be complemented by local or private sources of funding, marking a significant benefit to developers like eVgo and incentivizing the continued widespread build out of a more comprehensive national fast charging network.

Federal support may be complimented by local or private sources of funding, marking a significant benefit to developers like E. V go and incentivizing. The continued widespread build out with a more comprehensive national fast charging network.

I think we all expected preference of federal infrastructure funding will be towards Buildout, along highway corridors first with requirements that charges be at least 150 kilowatts and capacity with at least four charging salt per location.

Kathy: As you would have expected, preference of federal infrastructure funds will be toward build-up along highway corridors first, with requirements that chargers be at least 150 kilowatts in capacity with at least four charging stalls per location.

Kathy: Those locations are meant to be no more than one mile off a highway in most cases.

Those locations are meant to be no more than one mile off of highway in most cases.

Kathy: states must submit their fast-charging infrastructure plans to the federal government by August 1.

States must submit.

Mr Fast charging infrastructure funds to the federal government by August 1st with the truth was of those plant is expected by the end of September .

Kathy: with approvals of those plans expected by the end of September .

Kathy: And while EVGO is looking forward to participating in NEBI, once the program structures are finalized at the state level...

And while EBITDA was looking forward to participating in <unk>. Once the program structures are finalized at the state level.

Kathy: Our guidance for 2022 does not incorporate any financial benefits that might arise from these

Our guidance for 2022 does not incorporate any financial benefits that might arise from these affected over the coming quarters, we will provide investors with updates on state level implementation.

Kathy: Over the coming quarters, we will provide investors with updates on state-level implementation, the role EVgo is playing in different geographies, and the financial upshot for the company.

<unk> E V go was playing in different geographies and the financial upshot for the company.

Kathy: As we look back on the rapid evolution of the EV charging industry in 2021 and look ahead to what we expect will be even more substantial growth ahead, I thought it was timely to revisit EVgo's approach to the market. We've always had a driver and customer.

As we look back on the rapid evolution of the EV charging industry in 2021.

Go ahead to what we expect will be even more substantial growth ahead.

I thought it was time to revisit <unk> approach to the market.

Always had a driver and customer centric focus.

Kathy: building chargers where we think they will help spur the adoption of EVs and where they will be used.

Building charges, where we think they will help for the adoption of the Tvs and where they will be used the.

Kathy: The compliment to that, of course, is providing solutions to the auto manufacturers and the site hosts that need easy charging infrastructure built to accommodate their own customers.

A complement to that of course is providing solutions to the auto manufacturers and the cycles that need EV charging infrastructure built to accommodate their own customer base.

Kathy: As a leader in the sector, EVgo has a finely honed methodology for determining where and when to build, own, and operate fast-charging infrastructures to meet our investment hurdles and unlock long-term cash flow and profitability for our investors.

As a leader in the sector, even though has a finely honed methodologies for determining where and when to build own and operate fast charging infrastructure to meet our investment hurdles and unlock long term cash flow and profitability for our investors, hence <unk> historical focus on owning assets in high traffic metropolitan areas.

Kathy: Hence UB's historical focus on owning assets in high-traffic metropolitan areas.

Kathy: With interest in the EV market expanding to lower traffic, rural geographies and corridors, EVgo is receiving requests to parlay our world-class experience in building stations and operating the most expansive and reliable public network in America to new geographies.

With interest in the EV market expanding to lower traffic rural geographies and corridors indigo is receiving requests to parlay, our world class experience and building stations and operating the most expansive and reliable public network in America to new geographies geographies in which we would prefer it to be but services provider other than the asset owner.

Kathy: geographies in which we would prefer to be the services provider rather than the asset owner.

Kathy: Fueling along interstates is an example of such an opportunity.

Fueling along Interstate is an example of such an opportunity.

Kathy: We expect growth in this area to be bolstered by the passage of the infrastructure legislation whose policy objectives include national charging infrastructure ubiquity.

We expect growth in this area to be bolstered by the passage of the infrastructure legislation, whose policy objectives include national charging infrastructure ubiquity.

Kathy: With this in mind, EVGo is excited to announce the formalization of our white label services provided for years to partners like Kaiser Health, Green Mountain Power, and Salt River Project in the form of a new offering under the banner EVGo Extend.

With this in mind <unk> excited to announce the formalization of our White label services provided for years to partners like Kaiser Health Green Mountain power in Salt River project in the form of the new offering under the banner easy go extend.

Kathy: EVgo Extend partners will leverage all the end-to-end benefits of EVgo's decade-plus of planning, building, operating, and maintaining the nation's most reliable charging network, while the partners themselves purchase and then retain ownership of the charging assets.

<unk> extends partners will leverage all the end to end benefit Aviva goes a decade plus of planning building operating and maintaining the nation's most reliable charging network, while the partners themselves purchase and then retain ownership of the charging assets.

Kathy: Formalization of eBiggo Extend into our solution suite puts customers and drivers first.

Formalization of either go extend into our solutions suite with <unk>.

Customers and drivers first.

Kathy: unlocks another avenue for value creation and near-term growth upside, expands EVgo's geographic reach and potential partners, and complements efforts within the rest of our business that relate to fleet, software, and scaling efficiency.

Unlocks another avenue for value creation, and near term growth upside.

Expand <unk> geographic reach and potential partners and.

And complements effort for the rest of our business that relate to fleet software and scaling efficiencies.

Kathy: EDGoExtend leverages our core competencies to expand our network footprint beyond sites that currently meet our underwriting hurdles with asset ownership.

E V go extend leverages, our core competencies to expand our network footprint beyond sites that currently meet our underwriting hurdles with asset owners.

So it creates.

Kathy: creates another way to grow recurring revenues, and mitigates risk associated with sites that are likely to have low utilization in the intermediate term.

It's another way to grow recurring revenue and mitigate risk associated with sites that are likely to have low utilization in the intermediate term.

Kathy: We're working on several exciting potential EVGo Xtend partnerships that will provide upside to our overall growth in the years to come.

We're working on several exciting potential easy go extend partnerships that will provide upside to our overall growth in the years to come we are hopeful that we will be able to communicate more concretely about these efforts soon please stay tuned for updates.

Kathy: We're hopeful that we will be able to communicate more concretely about these efforts soon. Please stay tuned for updates.

Kathy: As mentioned at the outset, you may have seen recent announcements from EVgo on new partnerships with two major auto OEMs, Subaru and Toyota.

As mentioned at the outset.

They have seen recent announcements from easy go on new partnerships with two major auto Oems Subaru and Toyota.

Kathy: With Subaru, EVgo was proud to become the preferred charging partner for their first electric vehicle, the Solterra EV, which is expected to become available in the U.S. this summer.

With debris E. V go was proud to become the preferred charging partner for their first electric vehicle. The Sakura EV, which is expected to become available in the U S. This summer.

Kathy: EVgo's business deal with Toyota provides for one year of unlimited charging on EVgo's network for buyers or lessees of Toyota's first widely available electric offering, the BZ4X, which Toyota anticipates will be available later this year.

<unk> business deal with Toyota provides for one year of unlimited charging on EV goes networks for buyers of <unk> of Toyota's first widely available electric offering the BZ Forex, which Toyota anticipates will be available later this year.

Kathy: This marks Toyota's first move in significant plans to become fully electric, and EVgo was delighted to have been selected as their fast-charging partner.

Toyota's first move and significant plans to become fully electric and E. V. Go was delighted to have been selected as their fast charging partner.

As I noted earlier with Toyota and Subaru along with existing partnerships with other Oems.

Kathy: As I noted earlier, with Toyota and Subaru, along with existing partnerships with other OEMs,

Kathy: Evigo now has charting relationships with auto manufacturers that together represent over 40% of annual auto sales in the U.S.

Even though mall has charging relationships with auto manufacturers that together represent over 40% of annual auto sales in vivo.

Kathy: This provides clear evidence of the success EVgo has had in building and operating America's most robust fast-charging network over the last dozen years.

This provides clear evidence of the success <unk> has had in building and operating America's most robust fast charging network over the last seven years.

Kathy: One of the many reasons EZGo is able to attract and retain high-quality partnerships is a commitment to technology-enabled innovation across the company.

One of the many reasons indigo was able to attract and retain high quality partnerships is a commitment to technology enabled innovation across the company.

Kathy: One of these innovations is EVgo Inside, which is a suite of software and APIs that helps EVgo partners manage the customer experience process from enrollment to charging to billing. We recently released an updated mobile app that showcases both a sophisticated and a friendly design that welcomes drivers to the EVgo charging experience.

One of these innovations is easy go inside which is a suite of software or an API that helps E. V. Go partners manage the customer experience process from enrollment to charging to billing. We recently released an updated mobile app that showcases both a sophisticated and a friendly design welcomed drivers to the E V go charging experience.

Kathy: And our eVgo Reservations and eVgo Advantage software products have broadened their reach into new locations during 2021. And eVgo's club share surpassed 2 million registered users.

And our easy go reservations and E. V go advantage software products have broadened their reach into new locations during 2021, and even goes from share surpassed 2 million registered users.

Kathy: Electrification activity in the fleet segment has rapidly expanded during the last 12 months with EVgo's current fleet clients like Uber, Lyft, and two leading AV companies ramping their EV deployments and dozens of new fleet operators placing their first orders for EVs.

Electrification and activity in the fleet segment as rapidly expanded during the last 12 months with easy dose current fleet clients like Uber, Lyft and T, leading AG companies ramping their EV deployment.

And dozens of new fleet operators, placing their first orders for EV.

Kathy: These newcomers to electrification are beginning to engage in charging infrastructure planning as they await arrival of their EVs.

These newcomers to electrification are beginning to engage in charging infrastructure planning as they await a rival a very rude.

Kathy: EVgo's fleet team is at work helping fleets craft infrastructure programs that will meet their needs through our EVgo Optima, EVgold, and EVgoInside solutions. We look forward to sharing updates with you.

Maybe go sleep team is at work, helping suites Kraft infrastructure programs that will meet their needs through our easy go Optima EV goal and easy go inside solutions, we look forward to sharing updates with you in the coming quarters.

Kathy: Before I turn the call over to Olga, I want to underscore the EVgo investment opportunity in the context of the growing EV ecosystem as a whole.

Before I turn the call over to <unk> I want to underscore the Ido investment opportunity in the context of the growing EV ecosystem as a whole.

Olga Shevchenkova: As we shared, EVgo is a pure play EV charging company with a special focus on DC fast charging and a history of executing and operating at a superior level with uptimes in the high 90% range for our chargers historically and with over a decade of delivering on our promises to site hosts and drivers.

As we shared.

<unk> is a pure play EV charging company with a special focus on DC fast charging and a history of executing and operating at a superior level.

Uptime in the high 90% range for our charges historically and with over a decade of delivering on our promises to site hosts and drivers.

Olga Shevchenkova: We are a pioneer with a first-mover advantage. Our relentless focus on innovation and technology, products, and solutions has provided us with an edge in design, deep expertise in clean energy.

We are a pioneer with a first mover advantage, our relentless focus on innovation and technology.

Our solutions has provided us with an edge in design.

Deep expertise in clean energy.

After five future.

The superstar employees across.

Olga Shevchenkova: committed to excellence and delivery of EV go charging services but there's a larger mission of a decarbonized

We're committed to excellence in delivery of EV charging services.

Because the larger mission of a decarbonize.

Five transportation future.

Olga Shevchenkova: eVgo has ESG in our DNA.

E V go is ESG in our DNA.

Olga Shevchenkova: EasyGo's experience and track record of execution are durable advantages in a sector with tremendous growth opportunities.

He began his experience and track record of execution are durable advantages in a sector with membership growth opportunity.

Olga Shevchenkova: We've done this all with a keen focus on financial discipline, long-term margin potential, risk mitigation, and underwriting that prioritizes profitability and the prudent allocation of investor capital.

We've done this all with a keen focus on financial discipline, and long term margin potential risk mitigation and underwriting that prioritizes profitability and prudent allocation of investor capital.

Speaker Change: As Olga will share, even in these early stages, we have realized positive results of this discipline, with growth in both customers and throughput driving cash flows and providing concrete evidence of what the future will bring across the eVGO platform as eV adoption continues.

As overbook sure even in these early stages, we have realized positive results of this discipline with growth in both customers and throughput driving cash flows and providing concrete evidence of what the future will bring across the <unk> go platform as EV adoption continues.

We are more excited than ever about the immense opportunity in the space and <unk> position in the market at EV adoption is set for takeoff.

Speaker Change: We are more excited than ever about the immense opportunity in this space and EVgo's position in the market as EV adoption is set for takeoff.

Speaker Change: We expect a lot of positive inflection points in 2022, with increasing driver demand, OEMs introducing new vehicles, and the implementation of supportive power.

We expect a lot of positive inflection points in 2022, with increasing driver demand Oems, introducing new vehicles and the implementation of supportive policy.

Speaker Change: But we would also point to the long term and remind everyone that we are in the early innings of a major sectoral transformation, the electrification of the multi-trillion dollar transportation sector is just getting started.

But we would also point to the long term I remind everyone that we are in the early innings of a major sectoral transformation. The electrification of the multi trillion dollar transportation sector is just getting started.

Speaker Change: Ego is poised to be a key player in this transformation and we couldn't be feeling better about the future.

Even though with poised to be a key player in this transformation and we couldnt be feeling better about the future.

Speaker Change: And with that, I will turn it over to Olga to discuss some of our financial and operational highlights. Olga?

And with that I will turn it over to Olga to discuss some of our financial and operational highlights.

<unk>.

Thanks Kathy.

Olga Shevchenkova: I will start with some key operational highlights and review of our financial performance in the fourth quarter and full year of 2021. As Kathy noted, network throughput of 26.4 GWh exhibited material growth in 2021 with a 68% year-over-year increase and a 95% increase in the fourth quarter of 2021 versus the fourth quarter of 2020.

I will start with some key operational highlights and review of our financial performance in the fourth quarter and full year of 2021.

Kevin noted networks throughput of $26 four gigawatt hour.

If it is material growth in front of funds to one with a 68% year over year increase and a 95% increase in the fourth quarter expenses on two one versus the fourth quarter of 2010.

Olga Shevchenkova: Shortcuts of the year exceeded our guidance range of 24 to 26 gigawatt hours provided during our third quarter earnings call.

Sure, but for the year exceeded our guidance range of 24 to 26 gigawatt hours provided during our third quarter earnings call.

Olga Shevchenkova: Our active engineering and construction development pipeline exhibited big gains during the year, ending 2021 with over 3,100 stalls. Our active engineering and construction development pipeline was at 2,500 at the end of third quarter, exhibiting a 26% quarter-over-quarter sequential increase.

Our active engineering and construction development pipeline exhibited big gains during the year and then went to 21 was over 3100 stall.

Our active engineering and construction development pipeline was at 2500 at the end of third quarter, exhibiting a 26% quarter over quarter sequential increase.

Olga Shevchenkova: We ended 2021 with 340,000 customer accounts.

We ended the 20th century, one with 340000 customer accounts.

Olga Shevchenkova: on our network, which represents 47% growth year-over-year. Overall, over 109,000 customer accounts were added to EVgo's network in 2021, which represented roughly 80% of non-Tesla EV sales. We also continue to attract more customers to our network.

On our network, which represents 47% growth year over year.

Overall over 109000 customer accounts were added to even though it is not working consequently, one which represented roughly 80% of non passenger EV sales. We also continue to attract customer drivers our data suggest the Tesla drivers continued to comprise about.

Olga Shevchenkova: Our data suggests that Tesla drivers continue to comprise about 15 percent of our new customer accounts and that Tesla drivers represented approximately six percent of total EVgo retail charging throughput at the end of 2021.

15% of our new customer accounts and that Tesla drivers represented approximately 6% of total physical retail charging throughput.

End of 2021.

Olga Shevchenkova: Revenue in the fourth quarter of 2021 increased 70% versus the fourth quarter of last year and 15% quarter over quarter sequential.

Revenue in the fourth quarter of 2021 increased seven 2% versus the fourth quarter of last year, and 15% quarter over quarter sequentially.

Olga Shevchenkova: As the combination of EV adoption and EVgo's business development efforts drove high activity in both retail and flea markets.

The combination of EV adoption and if it goes business development efforts drove high activity in both retail <unk>.

And fleet segments.

Olga Shevchenkova: Adjusted growth margins hit new highs of 28% during the fourth quarter due to high usage and growth in high-margin data-driven ancillary services business lines.

Adjusted gross margin hit new highs of 28% during the fourth quarter.

Due to high usage and growth in high margin data driven ancillary services business lines.

Turning now to the full year results.

Olga Shevchenkova: Revenue increased 62% year-over-year to $22.2 million.

Revenue increased 52% year over year to $22 $2 million.

Olga Shevchenkova: above the upper end of our guidance range of $20 to $22 million provided during the third quarter earnings call.

The upper end of our guidance range.

It just went to $2 million provided during the third quarter earnings call.

Olga Shevchenkova: This was primarily driven by an 88% increase in retail charging revenue year over year and an 84% increase in ancillary revenue, including the addition of the cargo revenue.

This was primarily driven by an 88% increase in retail charge in revenue year over year, and an 84% increase in ancillary revenue.

The addition of the cargo revenues.

Olga Shevchenkova: Adjusted gross margin for the full year increased from 3% in 2020 to 23% in 2021 as we continue to scale the business driven by greater contribution from high margin data-driven ancillary revenues like Recargo and network throughput growth that allow to exercise operational leverage.

Adjusted gross margin for the full year.

Chris from 3% in funds advancing to 23% as much as one to watch.

We continue to scale the business driven by greater contribution from high margin data driven ancillary revenue just like with cargo.

And network throughput growth that allowed to exercise.

So on the leverage.

Olga Shevchenkova: Finally, adjusted EBITDA was negative $51.4 million for the year, which was ahead of our guidance of negative $54 to $58 million as revenue was stronger and G&A expenses grew at a slow

Finally adjust.

Adjusted EBITDA was negative 50 $114 million for the year.

Which was ahead of our guidance of negative <unk> $54 million to $68 million as revenue was stronger and.

G&A expenses grew at.

At a slower rate than anticipated.

And now we're gonna install deployments for the full year.

Olga Shevchenkova: We finished 2021 with 1,676 either operational or under construction.

Wednesday threat defense to one with 1676% either operational or under construction.

Olga Shevchenkova: Both of these figures were in line with our guidance provided on the third quarter call.

Both of these figures were in line with our guidance provided on the third quarter call.

Olga Shevchenkova: I would like to spend a few minutes talking about EVgo's business model and key profitability drivers.

I would like to spend a few minutes talking about <unk> business model and key profitability drivers.

Olga Shevchenkova: The EasyGo business model is centered at deploying charging infrastructure. I would like to walk you through our deployment criteria and.

The EBIT gold business model centers are deploying charging infrastructure I would like to walk you through our deployment criteria.

Olga Shevchenkova: EVGO employs both short-term and long-term demand models to determine expected...

Maybe go employees, both short term and long term demand models to determine expect.

Develop.

Olga Shevchenkova: Our short-term model, which predicts demand down to the census block.

Our short term model, which predicts demand down.

<unk> is a census block.

Olga Shevchenkova: or about one-tenth the size of a zip code, has been high.

For about 110th the size of the Zip code.

Has been high.

I accurate and its predictive capabilities.

Olga Shevchenkova: Our longer-term model overlays short-term forecasts against adoption trends in the market place for EVs and fast charging.

Our longer term model overlays short term forecast against adoption trends in the marketplace for Evs and fast charging.

Olga Shevchenkova: For every project we underwrite, we develop a financial model using this utilization forecast, revenue per kilowatt hour evolution, regulatory credit pricing evolution, if applicable, non-energy costs, and energy costs.

For every project, we underwrite we develop a financial model, you're using those utilization forecast revenue per kilowatt hour evolution regulatory credit pricing evolution if applicable.

Non energy costs and annual decline.

Costs for the existing tariff.

Olga Shevchenkova: Note, we do not assume improvements on those energy costs unless new tariffs have been approved by utilities.

We do not assume improvement in those and there is a cost.

<unk> has been approved by you to it.

I would like to highlight that model non energy costs for every project.

Olga Shevchenkova: I would like to highlight that modeled non-energy costs for every project are quite uncomfortable.

<unk>.

Olga Shevchenkova: and include charges, call center costs, payment fees, and the portion of asset management and customer operations team's salary. Topics estimates.

And include charges call center costs payment fees, and the portion of asset management and customer operations teams salary.

Capex estimates.

Capex funding support.

Such as governmental grants.

Or OEM offsets.

Olga Shevchenkova: or OEM offsets, if it is available to us. We continue to model no residual value in our underwriting program.

It is available to us as we continue to model noted.

Digital value in our underwriting.

Because it's beautiful to conservative.

Olga Shevchenkova: but also likely to present upside opportunity for us as the market develops.

But also likely to present upside opportunity for us as the market develops.

Olga Shevchenkova: With respect to stations and operations, we continue to evaluate network financial performance on a cash flow basis by market.

With respect to the stations in operation, we continue to evaluate network financial performance on a cash flow basis by market.

Olga Shevchenkova: which is calculated as charging and regulatory credit revenue minus energy and non-energy costs using the same cost categories as the ones we used during the underwriting process.

Which is calculated as charging and regulatory credits revenue minus energy and non energy costs using the same cost categories as the <unk>.

Once we used during the underwriting process.

Olga Shevchenkova: California is the most advanced EV market in the U.S.

California is the most advanced EV market in the U S. It has attractive electricity costs.

Olga Shevchenkova: It has attractive electricity costs, LCFS and FCI credit revenue opportunities, favoring the highest living penetration rate in the country.

Fashion Sci credit revenue opportunities.

The highest penetration rate in the country.

Even though it was California charging Netflix already.

Olga Shevchenkova: If you go with California Charging Network, already as an illustrative case study, I would like to highlight the San Francisco metro market within California.

Illustrative case.

I would like to highlight.

Francisco Metro markets within California.

San Francisco <unk>.

Dumped into the United States.

And at the year end plans with them.

One is ago operated 292 stores in the area, resulting in eight 4% utilization rate of throughput in the fourth quarter.

Olga Shevchenkova: Evigo operated 292 stalls in the area, resulting in 8.4% utilization rate in the fourth quarter of 2021.

Most of my good friends at <unk>.

Olga Shevchenkova: The San Francisco charging network generates 43% cash flow margin for EasyGo, driven by its solid utility.

The San Francisco charging networks.

You're right, 43% cash flow margin for <unk>.

Driven by solid utilization levels.

Olga Shevchenkova: and attractive energy cost environment, LCFS add-ons, and dedicated fleet-stalled take-or-pay contracts. These margins and cash-flow generation ability are options. San Francisco is a market demonstrating such results.

Oh, and the chocolate and Theres, a cost environment healthcare fast add ons and dedicated suite stalled take or pay contract.

These margins and cash flow generation ability.

Some franchise.

Market demand shaping such results other metro areas in college.

So similar results.

And we're seeing comparable profitability.

Olga Shevchenkova: the trends in markets outside of California as well.

So the trends in markets outside of California as well.

Olga Shevchenkova: I can call a tantrum to Portland, Oregon, and see...

I can call attention to Portland, Oregon.

Olga Shevchenkova: Phoenix, Arizona, as two more examples of metro markets where easy-go portfolios are generating positive cash flows.

Phoenix, Arizona is two more examples of metro markets or is it all portfolios are generating positive cash flow.

Olga Shevchenkova: And this is in markets that have lower EV penetration than California and do not have the advantage of meaningful regulatory credit revenue.

And this is in markets that have lower penetration than California, and do not have the advantage of meaningful regulatory credit revenue.

Olga Shevchenkova: The rising side of the V adoption continues to improve performance in these markets and many other across the country.

The rising tide of a V adoption continues to improve performance in these markets and many other across the country.

Olga Shevchenkova: EZGo's rigorous investment process and site selection are bearing fruit across a number of key markets already today. Even when EV penetration remains very low, about 0.5% nationally, which demonstrates the strength of our business model and the attractive upside potential.

He didn't go as rigorous investment process and site selection.

Through across a number of key markets already today.

Even with the penetration remains very low about 0.5% nationally, which demonstrates the strength of our business model and the attractive upside potential.

Olga Shevchenkova: EVgo's overall path to profitability is closely tied to EV adoption.

If it goes overall path to profitability is closely tied to the adoption.

Olga Shevchenkova: We would like to illustrate what could happen to eVGO revenue and eBITDA generation and how eVGO is positioned to profitable scale when eV adoption increases from 0.5% and 15% in the future.

Who would like to illustrate what could happen to either go revenues EBITDA generation and how easy go is positioned to profitably scale when easy adoption increases from 0.5 and.

And 15% in the future no change this.

Olga Shevchenkova: still represent the EV market in its infancy.

So much still to present, the EV market in its infancy.

At 5% of the adoption, we estimate even though revenue of between EBITDA of 600 to 800 million representing guests.

Olga Shevchenkova: At 5% EV adoption, we estimate EVgo revenue of between EBITDA of 600 to 800 million, representing a

30% to 35% margin.

Olga Shevchenkova: As EV adoption increases to 10%, we expect revenue to reach $3.2 to $3.4 billion with adjusted EBITDA margins of 35% to 45%.

Did he adoption increases to 10%.

We expect revenue to reach three two to $3 4 billion with adjusted EBITDA margins of 35 to 40 per pound.

Olga Shevchenkova: At 15%, we estimate revenue of between $4.8 and $5 billion.

This 10%, we estimated revenue of between $4 eight and five billon.

Olga Shevchenkova: dollars with adjusted EBITDA of 1.7 to 2 billion with 35 to 40 percent margin.

With adjusted EBITDA of 1.7 dollars 2 billion with 35% to 40% margin.

Olga Shevchenkova: Even then margin improvements are expected to be achieved by a that basis

EBITDA margin improvements are expected to be achieved by us.

But that basis at roughly.

Two 5% to be adoption rates from there the near term were introduced.

Olga Shevchenkova: 2.5% of the adoption rate. From there, the absentee term, we introduced

Thanks, Dwayne just wanted to guidance based on our current expectations for the full year.

Speaker Change: Thanks 2022 guidance based on our current expectations for the full year.

The adoption.

Speaker Change: supply chain and other global economic and political challenges may present a short-term obstacle for OEMs to meet.

Why chain and other global economic and political challenges may present, a short term obstacle.

Oems and getting the new models on the roads.

Speaker Change: At the same time, we will continue to strategically invest in the massive mid-term and long-term markets. We will prioritize profit-driven and profitable growth.

At the same time, we will continue to strategically invest in the massive midterm and long term, we will prioritize profit.

So simple growth was the focus.

Speaker Change: For the full year 2022, we expect to deliver network throughput of

For the full year 2000 vintage II, we expect to deliver network throughput.

Speaker Change: 50 to 60 gigawatt hours, revenue 48 to 55 million dollars, adjusted EBITDA of negative 75 to 85 million dollars, in operational under construction at year-end 2022 of 3,000 to 3,300 dollars.

50 to 60 gigawatt hours.

Revenue $48 million to $55 million.

Adjusted EBITDA of negative <unk> $75 million to $85 million in operation or under construction at year ends when it went to two of 3000 to 3300 staff.

Speaker Change: Both revenue and network throughput guidance represent a more than doubling of comparable figures to 2019.

Both revenue and network throughput guidance represent a more than doubling of comparable figures to transit.

When do you want the results.

Speaker Change: The drivers for adjusted EBITDA reflect increased investment in technology and personnel to respond to expanding market expectations.

The drivers for adjusted EBITDA reflects increased investments in technology and personnel to respond to expanding the market.

Finally.

Speaker Change: Trouble stalls in operation or under construction reflect the advancements we're making.

Total installed in operation or under construction reflect the advancements we're making.

Speaker Change: both of which are driven in part by the technology and personnel investment I just raffled.

Both of which are driven in part by the technology and personnel investments I just referenced.

Speaker Change: We're seeing a lot of progress and enthusiasm in the business with a number of strategic commercial partnerships.

We're seeing a lot of progress and sushi items in the business with a number of strategic commercial partnerships in there.

Various stages of development.

Speaker Change: We believe that EVgo has a substantial growth runway over the next decade and beyond.

We believe.

Even though has a substantial growth runway over the next decade and beyond.

Assuming the electric vehicles in operation.

Speaker Change: 75% CAGR for network throughput, 70% to 75% CAGR for revenue, CAGR.

5% CAGR from network throughput, 70% to 75% CAGR for revenue.

Hager for D C charge installed.

Speaker Change: Given the strong tailwinds and significant industry momentum Kathy discussed earlier, active opportunity ahead.

Given the strong tailwind and significant industry momentum Catherine discussed earlier as an opportunity to have and.

Believe that Eagle is well positioned to capitalize on that.

Speaker Change: believe that EVgo is well positioned to capitalize on it. Thank you for your time this morning.

Thank you for your time this morning.

Speaker Change: Thank you and at this time we will be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. If a participant is using speaker equipment, it may be necessary to pick up the phone.

Thank you and at this time, we'll be conducting a question and answer session.

I can ask a question.

Please press star one on your telephone keypad.

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.

Interest of time, we do reference each person.

In the queue to limit themselves.

One moment, please while we poll.

And our first question comes from them.

Gabe Daoud with Cowen.

Speaker Change: Hey, good morning, everyone. Thanks, Kathy and Olga, for all the preparatory remarks. Super helpful.

Hey, good morning, everyone. Thanks, Kathy in order for all of the prepared remarks Super helpful.

Speaker Change: 17 and 18, maybe Olga give us a little more thinking about long-term here what kind of underpin some of these assumptions

On 17, and 18, maybe also give us a little more.

About long term.

Sure.

Yes.

Under these assumptions.

Okay.

Right and that would be helpful and then.

Does that answer your first credits.

Speaker Change: 517, like what percentage of that San Francisco cash flow comes from LCFS credit?

Slide 17, like what percentage of that San Francisco cash flow comes from Lcs.

Speaker Change: Hi Gabe, thanks for the question. So 17, so just to kind of clarify first, page 17

Hi, Gabe Thanks for the question. So 17, so just to kind of quantify first page 17.

Speaker Change: that's an actual number right so there are no no assumptions which are going into that just the numbers were observed

That's an actual number right. So there are known no assumptions, which will go in into that drove the numbers were observed.

Speaker Change: LCFS is, of course, an important part of our cash flow, but even if you remove LCFS cash flow from San Francisco, you'd still see a positive cash flow margin. I wouldn't disclose the exact number on performance of San Francisco market today. First of all, it's

Urban L. CFS is of course, an important part of our cash flow, but even if you remove the CFS.

So it's on San Francisco, you still see a positive cash flow margin I wouldn't disclose the exact number.

Performance at San Francisco market.

Today first of all ads.

Because the energy cost.

We have to do.

Are there any is it.

Speaker Change: quite attractive. And that's what you observe here in a cash flow margin. We have a quite

Quite attractive and Thats, what you observe here in a cash flow margin we have a question.

Speaker Change: quite a substantial presence of dedicated fleet take-or-pay contracts, which is baked into this number. That plays into this. And the third and most important is one of the highest TV adoption rates in the country. As you can see, it's 3%. And that bakes into pretty decent utilization of 8.5%. So that's a utilization we deem decent as of today with the current adoption level. So of course, expect that the definition of decency will change over time. But for today's standards, that's pretty good.

Quite a substantial presence of dedicated fleet, the take or pay contract, which is baked into this number that plays into this and the third and most important is one of the highest adoption rate in the country as you can see 3% and that bakes into pretty decent utilization of <unk>.

5%.

That's the utilization, we deem decent as of today with the current adoption levels will of course exercise that dose.

The definition of decency will change over time, but for today's standards Thats pretty good.

Speaker Change: So, when we talk about the page 18, so there's a lot of assumptions about the stalls. We're not changing our overall target, which we

So when when we talk about the page 18.

So there's a lot of assumptions about the stores, we're not changing our overall targets, which we.

Speaker Change: manifested during our SPARC process of 16,000 stalls by

Manifested in our thought process of 16000 stores.

Got it so.

Speaker Change: We, again, we wouldn't probably disclose exactly what it will be at 5%, 10%, and 15%, but when we run our forecast, we make sure that the complex investments and the amount of stocks we're deploying to support the debt and revenue generation make sense and fairly prudent and conservative.

We again, we wouldn't probably disclose exactly what it will be a 5%, 10% or 15%.

On all four of US will make sure that the capex investments in the amount of software to deploy and to support the EBITDA and revenue generation makes sense, and then fairly prudent and conservative yeah. If I could just jump in and add a little bit gave I love Lubbock reasonably included.

Speaker Change: Yeah, if I could just jump in and add a little bit, Gabe, I love the reason we included San Francisco as a market spotlight is that, as we all know, California is an early bellwether to what happens in many things, and in particular, electrification.

San Francisco as a market spotlight.

California is an early belt bellwether to what happens on in many things and in particular to electrification caliber.

Speaker Change: of the country, et cetera, early adopter. California's been an early adopter in autonomous vehicles. California's been an early adopter in rideshare across the country.

So the country et cetera early adopter California's been an early adopter in autonomous vehicles, California's been an early adopter and rideshare.

Most of the countries. So when we take a good look at.

Speaker Change: business model, we look first at California. Is it working in California? And it's working in San Francisco, it's working in LA, and what's really interesting is that, as Olga points out, it's also working very...

And our business model, we look first to California is it working in California, and it's working in San Francisco Whats working in L. A and what's really interesting is that all the points out is also working very.

So July Portland, and Phoenix So.

Confidence that we're on.

Speaker Change: confidence that we're capitalizing on, investing and charging assets in a way that's going to ride the wave of electrification or transportation across America.

We're capitalizing on investing in charging assets in a way that's going to ride the wave of electrification of transportation across America.

Speaker Change: Awesome. That's really helpful. Just a follow-up, I guess. Just on this new business line, Cathy, Xtend, could you talk a little bit about maybe the economics there? And are any stalls that are in queue for this year under this business model? Just how do we think about balancing that long-term potential that you highlighted on slide 18 versus the Xtend business model? Yeah, so the EDO Xtend

Awesome, that's really helpful.

And just a follow up I guess to follow this new business launch Kathy you extend could you talk a little bit about maybe the economics there.

Install another.

In Q4 this year under under this business model and just how do we think about balancing the long term potential.

But you highlighted oncology versus the extent business model.

Yes.

The ego extension.

But we're already a market leader in.

Speaker Change: In siting, building, owning, operating, and we do that label with a few customers now.

Inciting building owning operating what what.

White label with a few customers now.

Speaker Change: The incoming that we're seeing, particularly as the corridor, interest in building in corridors grows, is that we tend to meet our traditional hurdle.

The incoming that we're seeing particularly as a corridor.

Interestingly building in corridors grows is tend to need our traditional hurdle.

For rates to own the assets. However, there is a there is a wonderful way for us to participate in that extension of our network to really go extend by providing the network planning siting construction and then on O&M It comes with having.

Speaker Change: rates to own the assets. However, there's a there's a wonderful way for us to participate in that extension of our network through EDGO Extend by providing the network planning, siting, construction, and then an O&M that comes with having

Speaker Change: that's accretive. We are still cooking in the oven. As soon as we can, as soon as it comes out of the oven, it's a really, really exciting addition to EVgo's solution.

That's accretive.

Uh huh.

We are seeing in the oven as soon as we can soon as it comes.

It's a really really exciting addition.

<unk> solution set.

Awesome. Thank you Todd.

Everyone have a one question only.

Speaker Change: Our next question comes from the line of Maheep Mandoori with Credit Suisse. Please proceed with your question.

Our next question comes from the line of Mark.

With credit Suisse. Please proceed.

Yes.

Maheep Mandoori: Thanks for taking the questions and congratulations on the quarter. I have a question for you. Can you break down the guidance for us? We understand the revenue guidance was driven by the ride-share recovery. Can you talk about the growth?

Hi, Mohit <unk> from <unk> Suisse.

So taking the questions and congratulations on a good quarter.

Maybe a question for you if I could just kind of break down the guidance for <unk> I understand the revenue guidance, a little bit was driven by the rideshare.

Sorry, sorry, let's see weaker than expected, but could you just talk about Laguna gross.

Maheep Mandoori: Are you seeing any changes versus what the expectations were going into the year previously, especially trying to understand the...

Are you seeing any changes versus what the.

Patients going into the year previously.

And especially I'm trying to understand.

Speaker Change: impact of any rising electric bills later this year due to higher energy prices. And technically, I just wanted to touch base on EV charging hardware availability. Some of your peers have been talking about delays on that, so any color on that would be appreciated. Thanks. Sure. So, on energy costs, just to remind everybody that we are not trading wholesale power and we're not exposed to short-term volatilities and power we're seeing.

The impact if any rising electric boat.

Later this year due to higher energy prices.

Secondly.

Just wanted to touch base on EV charging hardware availability some of your peers have been talking about delays on that.

So any color on that would be appreciated. Thanks.

Sure.

Energy cost just to remind everybody is that we are not trading in wholesale power and we are not exposed to short term volatility.

Power was C&I customer with Youtube.

Speaker Change: In on a short term, on the short horizon, we know exactly what our energy costs will be now, obviously, the macro environment.

On a short term on the short horizon, we know exactly what our energy cost will lead now all this is a macro environment.

Speaker Change: is it such that the power prices are rising? Then you choose. It will probably start pricing them on us, but we'll know in advance.

Is there such that the power.

Alright, and then utilities will probably start causing them on Oslo, we'll know in advance.

Speaker Change: and that doesn't happen overnight. So we don't foresee that.

And so and that doesn't happen to happen overnight. So we don't see that specifically, we as EBITDA will feel the effects of rising energy costs in 2022. So on the gross margin expected to be where it is or improve in what was an improvement in throughput. So all of those.

Speaker Change: Specifically, we at eBIGO will feel the effect of rising energy costs in 2022. So on a gross margin, expect it to be where it is or improving with an improvement in throughput. So our gross margin is a reflection of a leveraging of operational fixed costs. That's why you saw it improving. And in addition, the growth of our high margin data-driven ancillary services. So both of those trends are expected to continue to be favorable next year. So you'll see margin.

Margin.

Is it a reflection of the leveraging of fixed cooperation on fixed cost. That's why you saw an improvement and in addition, the growth of our high margin data do you have an ancillary services. So both of those trends I expect it to be to continue to be favorable next year, so you'll see margin.

Speaker Change: slightly better or at the same level. We're not guiding to the gross margin, so I won't disclose specific expectation, but that's some light I can give to you. And then on hardware, so we're obviously, and no exception to anybody else, we're extremely focused on securing hardware supply and managing our supply chain. As of now, all of our vendors had expressed confidence that they would be able to deliver the equipment we need this year at the pre-agreed price. And we have certain contractual agreements which give us, again, quite a decent confidence that that will be the case. And I emphasize that in multiple conversations with investors before, and I'll emphasize again, our main concern regarding supply chain for this year is the ability for OATs. That's, I think, where our main.

Slightly better all at the same level, we're not guiding for the gross margin, so I wont disclose specific expectation, but but thats.

Some wide I can I can give to you.

And then on hardware. So we're obviously are no exception to anybody else, we're extremely focused on secure hardware supply and managing our supply chain.

Now all of our.

Vendors had impressive express confidence that they would be able to deliver the equipment. We need this year at the pre agreed price.

And we will have certain contractual agreements, which give us.

Again quite a decent confidence that that will be the case.

And besides that multiple conversations with investors before and I'll emphasize again, our main concern regarding supply chain for this year is the ability for both zinc where our main.

Speaker Change: concern is centered around that the outside of our control but we're cheering for everybody in the market

John is centered around that are outside of our control, but with children for everybody in the market.

Speaker Change: to deliver cars, because again, as we emphasize multiple times through our script, our business is tied to the adoption. More EVs, more throughput, more revenue for us.

To deliver cars, because again and good bye.

As we emphasized multiple times through our script our business is tied to the adoption more evs monster, but more revenue for us.

Got you, thanks, and I'll jump back on materials.

Thank you.

Speaker Change: Our next question comes from the line of Craig Irwin with Rock Capital. Please proceed with your.

Our next question comes from the line of Craig Irwin with Roth Capital. Please proceed with your question.

Craig Irwin: Good morning, and thanks for taking my questions. So I'm quite curious about the cdgo extend model. It seems your more recent implementation skewed towards using equipment from two vendors. One of them is used by a number of other fast charging network operators. But the other happens to be the world's largest.

Good morning, and thanks for thanks for taking my questions.

So I'm quite curious about the <unk> extend model.

It seems you are more recent implementation skew towards using equipment from two vendors.

One of them is used by a number of other.

Fast charging network operators, but the other happens to be the world's largest.

Craig Irwin: largest power supply producer and well-known as a low-cost, high-quality producer with very little representation in North America.

Largest power supply producer and.

And well known as a low cost high quality producer with.

Very little representation in North America.

Craig Irwin: Do you expect to maybe have some sort of an alliance or strategic agreement that would allow you assured supply or a different type of access for this equipment, given that it looks like you might be blazing some trails for them, where they traditionally have not had some... They've not been very good at marketing globally outside of the monster EMS companies and very large tech companies.

Do you expect to maybe have some sort of an alliance or strategic agreement that would allow you.

Assured supply or.

Different type of access for this equipment given that it looks like you might be placing some trails for them, where they have traditionally not had some.

It has not been very good at marketing globally outside of the Monster EMS companies very large companies.

Speaker Change: Well, Craig, thanks for the question. On the hardware supply, as I think we've talked about before, our engineering team is

Craig Thanks for the question on the on the hardware supply as I think we've talked about before our engineering team is.

Or is it pretty random.

Extremely rigorous process for qualifying any hardware that we put into the field that we put onto our network and that that'll be true for the <unk> extend customers as well as what the assets that we retain ownership of at the moment. We've got we've got to preferred vendors for our fast charging equipment.

Speaker Change: go extend customers as well as the assets that we retain ownership of. At the moment, we've got two preferred vendors for our fast-charging equipment that are capable of supplying 350-kilowatt chargers, which is our standard ultra-fast configuration now. We have a couple of other vendors that we've used in the past, but the team is continuing to qualify others that are capable. And our exacting specifications for ultra-fast, frankly, the vendors had to catch up to what we wanted. And to be able to do power sharing and power routing, the vendors had to catch up. So our team is

<unk>.

That are better.

Alright capable of supplying 350 kilowatt charges, which is our standard because ultrafast configuration now.

We have a couple of other vendors that we've used in the past, but the team is continuing to qualify others better capable again.

Our exacting specifications for ultrafast frankly, the vendors had to catch up to what we wanted and to be able to do power sharing empower routing vendors had to catch up so our team.

Speaker Change: Frankly, the vendors had to catch up to what we wanted. And to be able to do power sharing and power routing, the vendors had to catch up. So our team.

Speaker Change: is continuing to look at suppliers that will be able to meet those exacting standards that are essentially what we expect and what drivers will expect and what OEMs expect, which is the ability to alter a fast charge reliably. So we wouldn't rule out any special sort of alliances with vendors in the future, but there's nothing more I can tell you at this point.

With continuing to look at suppliers that we'll be able to meet those exacting standards that are that are essentially what we expect and what drivers will expect and with Oems, we expect which is the ability to ultra fast charge reliably.

We wouldn't rule out any special sort of alliances with vendors in the future, but theres nothing more I can tell you at this point.

Speaker Change: Okay, and then just as a follow-up, siting of chargers can often be challenging for local site capacity for electricity, right? So a lot of conversation out there about co-implementing with batteries, with energy storage. Can you update us where you stand on this? Do you see this as strategically important over the next couple of years, or is the format that you're using the format of choice and what you expect to pursue?

Okay, and then just just as a follow up.

Citing charged.

Charges can often be challenging quarter.

Local site capacity for electricity right. So a lot of.

A lot of conversation out there about.

Co implementing with batteries for energy storage.

Can you update us where you stand on this do you see this as strategically important over the next couple of years.

Or is the format that you are using the format of choice and what you expect to pursue.

Speaker Change: We have probably a dozen stations in California that have onsite batteries, and we put them in years ago, and that was, again, a good economic decision to avoid punitive demand charges. Wherever it will pencil economically, it makes good sense, and in some cases, the utilities will be excited about it if utilities modernize and go to more distributed energy sources.

Yeah, well we.

We have probably a dozen stations in California that have onsite batteries and that was when we put them in years ago and that was again, a good economic decision to avoid punitive demand charges.

Wherever it will pencil economically it makes good sense and in some cases, the utilities there'll be excited about it and the utilities modernize and go to more distributed energy sources.

Speaker Change: two-way power flows. I think there's going to be more interest in that. The very practical question for us is does the location have the footprint to have on-site storage?

And two way power flows I think there's going to be more interested in that.

Very practical question for US is it does it does the location have the footprint to have onsite storage.

Speaker Change: We're pretty excited about some of our larger projects under development, mega hubs, giga hubs, charging hubs, where there will be...

We're pretty excited about some of our larger projects under development Mega hubs Giga hub charging hubs, where there will be <unk>.

Speaker Change: room in a parking lot or in the location for on-site storage, but again, it all has to pencil. You've got to pencil the double-digit return. So, if it makes financial sense, we're open to it, and there's a lot of different ways, a lot of different ways to do it.

Bloom in a parking lot or in the in the location for onsite George but again it all has to attempt to get a pencil to double digit returns. So if it makes financial sense, we are open to it.

And that there is a lot of different ways.

Yeah.

Ryan Greenwald with Bank of America.

Please proceed with your question.

Hey, good morning, everyone.

Starting with.

Ken price deflation, but also your best credits.

More modest 5%.

Speaker Change: more modest 5% decrease to revenue. Obviously, you have the full year of contribution from Ricargo, but can you just talk a bit about other key offsets there?

Kris to revenue obviously, you have the full year of contribution from Ricardo but can you just talk a bit about other key offsets there.

Speaker Change: Sure, so the first and foremost on the network throughput, the main difference, well, we haven't provided the formal guidance before just to send to everybody, but from my understanding, you either referenced in the SPAC deck or your own.

Sure so the.

First and foremost on the network throughput the main difference.

Haven't provided the formal guidance before just to send to everybody, but from my understanding you either referenced in our slide deck or your own.

Well the good news that we saw.

<unk>.

Speaker Change: There's a rebound of ride-share in general as an industry, but what we now are seeing is that there is not enough

There is a rebound of rideshare and general industry, but what we now I've seen is that there is not enough.

Speaker Change: have cars for all the rideshare operators to get and electrify their fleets and that is delayed and that's a fact of a post-COVID turnover and supply chain.

Of cars for all the rideshare operators.

The gas and electrify their fleets and that is delayed and that the effects of a post COVID-19 Hanover and supply chain.

Speaker Change: So that's the main driver of why the network throughput is probably below somebody's or everybody's expectation. On the revenue side, you're absolutely right. LCFS is below what we all expect.

And challenges. So that's the main driver of why the network throughput is probably below somebody though everybody's expectations on the revenue side.

On the revenue side, you're absolutely right I'll say, a fast is below what we all.

Speaker Change: even a few months ago, and that is baked into a certain extent in our forecast, but we're observing the situation, of course, because the situation is dynamic. Some of the offsets are our take-or-pay fleet contracts, which we see quite a strong pipeline on and making certain assumptions on when those projects will hit. Just to remind everybody, take-or-pay fleet-dedicated contracts, it's a fixed amount of dollars paid to us a month, independent of...

Thought even a few months ago and that is baked into the system extends in our horizontal <unk> in the situation of course the situation is dynamic some of the offsets are our take or pay fleet contracts, which was quite a strong pipeline on and making certain assumptions on when those projects will hit triple just to remind every.

By the take or pay fleet dedicated contracts, it's a fixed amount of dollars paid to us in months independent of all of the throughput and we have quite a strong view on that for this year and we didn't on an expense side, we have as Katherine mentioned, we have done but sometimes in bacon, we haven't we haven't.

Speaker Change: of the throughput, and we have quite a strong view on that for this year. And we didn't, on an extent side, we have, as Cassie mentioned, we have something baking. We haven't included a full effect of that.

Included a full effect of that here because most most of what's being bacon three and beyond but there are certain modest inclusions.

Speaker Change: here because most of what's been vacant, three and beyond, but there are certain modest inclusions on the second half of the year where we might see those.

Second half of the year, where we might see those.

Speaker Change: Great, thank you for the pricing assumption that you guys are assuming now.

Great. Thank you.

So you're essentially you guys are assuming that.

Speaker Change: And how are you thinking about timing a cash flow infraction

And 'twenty two.

Or are you thinking about timing of cash loan collection. These levels are sustained.

So we as human.

Speaker Change: So we're assuming 150 for the full year.

100 <unk>.

For the full year.

And then cash flow inflection.

How would that kind of impact are you guys are thinking about things.

Speaker Change: I'm not sure I fully understand your question, and accounts for infraction?

I am not sure I fully understand your question and the cash flow inflection.

In terms of.

Speaker Change: Expect to be adjusted if the deposit is at a moment in time when EV adoption is going to be around 2.5% or to zero.

We expect to be adjusted EBITDA positive.

At a moment in time lens.

Option is going to be.

Around two 5%.

We again our businesses.

Speaker Change: If that 2.5% will hit earlier, then we'll be a bit more positive earlier, later, later.

Hmm levels, if that two 5% rohit earlier than that.

Not positive early or later.

Speaker Change: So, that's how we think about our business, but we're not given a specific year guideline.

Later, so that's how we think about our business, but we have not given a specific yield guidance.

Our next question comes from the line of Vikram <unk> with Needham.

Speaker Change: Our next question comes from the line of Vikram Bagri with Needham.

Good morning, everyone.

Vikram Bagri: I have a multi-part question on California's study. The patient is pretty high and yet.

I have a multipart question on California.

The issue is pretty high.

Vikram Bagri: and reutilization is under 9%. How do you see that situation evolving over at all? Do you see utilization coming down? Or do you see utilization going higher than EV and EVF? And then.

I think utilization is under 9% how do you see that situation evolving over at all or do you see utilization coming down.

See utilization Green Hollywood <unk> UBS.

And then.

Yeah.

Also you mentioned.

Vikram Bagri: and 6% of throughput is represented by Tesla chargers.

Two 6% up through to Scoop, which is represented by Tesla Chargers.

This increase is higher recall do you.

Vikram Bagri: and to sort of close that gap between the throughput and the percentage of connectors allocated to Tesla. And the third question I had was.

I'm, just sort of close that gap.

Between the two.

And if there's going to be the connectors to Tesla.

And the third question I had.

Utilities months in advance.

You have to.

Right.

Vikram Bagri: Increases in California and multiple across the country are so far this the revenue per kilowatt

Price increases in California and.

Multiple across the country so far this.

Revenue per kilowatt hour.

The increase year on year.

Vikram Bagri: in 2022, it's just being driven by higher energy costs that you're passing on to the customers.

Pretty pretty pretty too is just being driven by higher energy costs. Thank you of course can go on to the customers.

Yes.

For the first one.

Vikram Bagri: We do expect utilization to go up over time. And let me kind of go back to the basics, the utilization and the sea charging business. So the utilization and the sea charging infrastructure is not only driven by EV to sea.

We do expect utilization to go up over time, and let me kind of go back to the basics.

Elevation in D C charging business, so that the utilization of <unk> chosen infrastructure is not only driven by EV.

Still ratio. It also is driven by <unk> density and what percentage of charging needs of this specific population is being met by <unk>. So it was going to be very different in San Francisco versus Santa Monica versus a place in the country, where people live and single home.

Vikram Bagri: ratio. It also is driven by MUD density and what percentage of charging needs of this specific population is being met by DC. So it's going to be very different in San Francisco versus Santa Monica versus a place in the country where people live in single homes. How many people live in apartments versus how many people live in single family homes?

And on that yes, just let me know.

How many people live in apartments versus how many people live in single family.

Vikram Bagri: That's a very important driver because if you have a charger at home, we have no illusions about it. And the data confirms that you will use a factor here, electrification is quite an advanced market regarding fleets, but it's still not.

Now at home, that's a very important driver because if you have a charge at home.

Have no illusions about it on the data confirms that.

Will you act that he is electrification.

So it is quite an advanced market regarding.

But it's still not additive.

And with the expectation of more liquid.

Vikram Bagri: of Rideshare and just as a reminder we discussed it during our briefing and on top

The vacation of Rideshare and just as a reminder, we discussed that during.

<unk>.

As miles a year and on top of it.

Users did see charging for salmon.

Vikram Bagri: to the 75% of their charging needs. So that's a massive, that's a- by utilization.

For the 75% of the charges so that's a massive.

That's.

But utilization as a function of.

So these installed laser for the year.

Vikram Bagri: to come is not fully correct. We do think that utilization for the network in five to six years on average will probably be around 18 percent.

The comp is not fully correct, we're just saying that utilization.

Network.

In five to six years on average will probably be around 18%.

Vikram Bagri: That's our best guess as of now. And that's how we run our models. We think it's fairly conservative as well. But we expect utilization to go. So that's that's answering your first question. The second question about the Tesla.

That's our best guess as of now and Thats, how we run our models, we think is fairly conservative as well.

Expect utilization to go so that's answering your first question. The second question about the Tesla.

Speaker Change: I'm not sure I follow what the question is about. Ken, if you are you, are you asking, Nick, are you asking how many of our Tesla connectors are, to what extent the Tesla connectors on the, on our EVGO charters are reflecting that uptick of Tesla, Tesla usage on our network? I'm just trying to get, I don't quite understand your question either.

I'm not sure I follow the question was about <unk>. If you are you are you asking.

Are you asking how many of our of our Tesla connectors are.

To what extent that Tesla connectors on the just on our <unk> charters are reflecting that uptick of Tesla Tesla usage on our network.

Trying to get I don't quite understand your question either.

Ken: I was trying to understand what percentage of your total connectors over your network are Tesla connectors And I believe that percentage is higher maybe in a 10 or 15

I'm trying to understand what percentage of your tubing connectors audio network, our Tesla connectors.

I believe that percentage is higher.

Okay.

Ken: 15% of their connectors are Tesla connectors, but the throughput allocated to Tesla vehicles is only 6%. And I was wondering, like, is it a factor of pricing not being competitive or Tesla drivers preferring Tesla connectors? You installing a slightly higher percentage of connectors are allocated to Tesla, but the throughput percentage allocated to Tesla you're seeing is lower.

15% of your connectors, our test market sectors with the seafood allocated to Tesla Rico, who will be 6% and I was wondering with the fact that all pricing not being competitive.

Drivers Jeffery Kessler connectors.

Stalling spiking hard percentage of connectors and literature to desktop with the treatment percentage allocated to pass laws Youre seeing is lower.

Excluding the Jean Ann.

Ken: of Tesla usage on our network. And it's 6% of total retail usage across the country. We have geographies where it's much, much higher, and it goes to double-digit percentage, and the ratio gets reversed. That usage is very much dependent from what we're seeing from early data on availability. So geography by geography, you'll see very different ratios, very different percentages. 6% is a blended number. But that is mostly driven by lack of Tesla infrastructure in a specific geography. So for those geographies where the ratio of Tesla EVs versus Tesla superchargers is skewed, and there is not enough infrastructure, we see very high usage.

Of Tesla usage on our network and it's 6% of total retail uses across the country, we have geographies, where it's much much higher and it goes to double digits.

<unk> and the ratio gets reversed that usage is very much independent from what we've seen from early data on availability. So it's geography by geography, Youll see very different ratios better different percentages of 6% is a blended number but that is mostly driven by lack of Tesla.

Dr <unk> and the specific geographies or for those geographies, where the ratio of Tesla Evs versus Tesla supercharger is skewed and there is not enough infrastructure, we see very high usage of Tesla on our networking for the places where we're at.

Ken: of Tesla on our network and for the places where it's revived but that they exist we don't

Exists we don't.

Ken: see such high percentages because, of course, Tesla drivers will use a Tesla. OK, that's what we planned for.

T such high percentages because of course Tesla drivers will use.

Okay, that's what we planned for.

Ken: And that's how our business model works. So that's 6% number, which is very early in it. And as I also mentioned in my screen, you know, in my classroom, which sign up with easy go.

And that's how our business model works, so that 6% number which is very early evening and as I also mentioned in my script and my second.

Customers, who sign up with <unk>.

Ken: at Tesla, which shows that that 6% is positioned to grow further. We're quite happy about those.

So I'd say.

So which shows us that 6% is positioned to grow further we are quite happy about those.

Ken: So just to reinterpret, it's good news, it's not bad news.

So Justin it's a good news bad news.

Ken: And then I think there was another question about electricity pricing, our pricing and electricity pricing. Do you want to talk a little bit about that? Right. So it's a business of determining retail prices as a pure spread, and it's not necessarily that we are going to pass on consumers every single increase of tariffs, because we look at it from a...

And then I think there was another question about about electricity pricing, our pricing and electricity President you want to talk a little bit about that right.

<unk> of determinants.

Retail prices and the pure spread and it's it's not necessarily that we're going to pass on consumers every single increase of terrorist because we'll look at it from.

Ken: from a network perspective. And in certain places, yes, you get indexation or you get the inflation or some tariff adjustments up. In certain other places, with the great efforts of our market development team, we're getting access to much better tariffs and much better tariffs.

From a network perspective and in certain places, yes, you get indexation or you got the inflation or some tariff adjustments and certain other ways. It was the great efforts of our market development team will get done.

Access to much better tariffs and much better.

Ken: per kilowatt-hour energy cost, and on top of it, with the increasing utilization and increasing throughput, demand charges, which still exist in our network, get amortized, which again translates into lower per kilowatt-hour energy cost. So you have all these different multiple...

On a per kilowatt hour energy costs and on top of it was the increasing utilization of an increase in throughput demand charges, which still exists and natural get amortized, which again translates into lower per kilowatt hour and they'll just so you have all these different multiples.

Ken: factors and vectors of events happening on the network and we again we're not we're not talking a single cent back on a consumer where we're going back and estimating the whole network or maybe like a market by market and trying to see

So.

Factors and factors of events happening on the network and we again, we're not we're not passenger single stand back on a consumer going back on estimating the whole network or maybe like a market by market and trying to see.

Speaker Change: If that still makes sense, if economics still works. The other thing I would add is that what you've seen in California, Vic, is that we introduced – first, we went to kilowatt-hour pricing from permanent pricing. Second, we introduced time-of-use pricing at the behest of the utilities and the California Public Utility Commission. And we've been just watching about what different types of consumer responses, driver responses there have been to cheaper early-bird pricing, higher on-peak pricing. So what we do – and I think I might have said this before – we have a software backbone that will allow us to do customized pricing based on location, and we also introduce location-based pricing. So our pricing is not inextricably linked to the electricity cost. There are a multitude of attributes that we use to determine what pricing will make the most sense that will deliver value to drivers and will maximize income to us.

Is that still make sense, if economics still works.

The other thing I would add is that what you've seen in California. Vic is that we introduced first we went to kilowatt hour pricing from permanent pricing second we introduced time of use pricing at the behest of the utilities and the California Public utility Commission and we're being just watching about how and what different types of consumer responses driver responses.

There has been too cheap for early bird pricing higher on peak pricing and so we do and I think I might have said this before we have a software backbone that will allow us to do customized pricing based on location and we also introduced location based pricing. So our pricing is not inextricably linked to the electricity cost there is a multitude of.

Attributes that we use to determine what pricing will make the most sense that will deliver value to drivers and will maximize income to us.

Speaker Change: Yes, sir. Thank you.

Thank you.

Speaker Change: And our next question comes from the line of Bill Peterson with J.P. Morgan. Please proceed with the one...

And our next question comes from the line of Bill Peterson with Jpmorgan. Please proceed with your one question.

Speaker Change: Hi, this is Mahima calling in for Bill and thanks very quickly. Have you seen any impacts from any permitting delays? And if so, has it been prevalent in any particular geographies? And then maybe could you give us the latest timing from order that we can deploy more fast charges more quickly? So.

Hi, This is <unk>, calling in for Bill and things. We quickly have you seen any impact from any permitting delays in itself.

Has it been prevalent in any particular geographies and then maybe could you give us the latest timing some orders. So we can deploy more fast start as Margaret.

So I will start off with.

Speaker Change: Our pipeline continues to grow. Site hosts continue to be really excited about having charging infrastructure on their parking lots. It still takes us four to eight weeks to actually start digging and then get the station built.

Our pipeline continues to grow site has continued to be really excited about having charging infrastructure on their parking lot still takes us four to eight weeks to actually like start digging and then get the get the station built what we're seeing is.

Speaker Change: What we're seeing is, you know, and again last year I talked about going from 18 months on average down to down to six months.

And again last year I talked about going from 18 months on average down to down to six months.

Speaker Change: we are still nowhere close to six months. That's still my dream, but we've got a long way to go. As we go into new jurisdictions, it is often the first time a local government has, like, had to approve a charging station. The variability around that timing, it can be as short as one week and it can be as long as 12 months for the local government permit, and I kid you not. Similarly, with utilities approving designs and getting easements with the landlords, again, it can be as quick, probably as four to six weeks, and as long as 12 months. And then the final energization process that the utilities have to do for inspection, again, that can be, like, next day or that can be probably at the end of 2021.

They are still nowhere close to six months, that's still my dream, but we've got a long way to go as we go into new jurisdictions. It is often the first time a local government has had.

<unk> station the variability around that timing it it can be as short as one week and it can be as long as 12 months for the local government permanent and I Kid you not similarly.

<unk> is proving designs and getting easements with the landlords again it can be as quick probably is four to six weeks and as long as 12 months and then and then the final <unk> process of the utilities have to defer inspection again that can be that can be like next day or that can be probably 16 at the end of 2020.

One.

Speaker Change: like dozens and dozens and dozens that were completely ready for drivers except the utility had to come along and do the final inspection. So we've got Connect the Watts that we're pushing on to continue to share best practice. The more activity in the sector, the quicker we assume it will go. It's like early days of solar. But it is something that we're continuing to work on and, as I say, making progress. But I think I can't give you a number because variability is still we've got super fast players and then we've got super slow-mo. And I don't know the latest is probably on the distribution around that, but it's a pretty wide distribution. Hope that helps.

Dozens and dozens and dozens that we're that we're completely ready for drivers except the utility had to come along and do the final inspection. So we've got connect to watch that we're pushing on to continue to like to share best practice, the more activity in the sector. The quicker we assume it will go it's like early days.

As a solar.

It is a it is something that we're continuing to work on and I would say, making progress that I think I can't give you a number because the variability is still we've got we've got superfast players and then we've got Super slow Mo and I don't know the latest is probably on the on the on the distribution around that but it's a pretty wide distribution hope that helps.

Speaker Change: Yes, thanks so much for the coverage.

Yes, thanks, so much for the color.

Okay.

Speaker Change: And our next question comes from the line of Andre Sheppard with Cancer Fitzgerald. Please proceed with your question.

And our next question comes from the line of Andre Shepard with Cantor Fitzgerald. Please proceed with your question.

Hey, guys. Thanks for taking my question congrats on the quarter and thanks again for running a few minutes over and taking all of our questions.

Andre Sheppard: Hey, guys, thanks for taking my question. Congrats on the quarter. And thanks again for running a few minutes over and taking all of our questions. Maybe just to quickly follow up from the last question there. Are you able to give us any sort of breakdown in terms of how quickly you can convert those, you know, over 3000 stalls?

Maybe just to quickly follow up from the last question there.

Are you able to give us any sort of breakdown in terms of how quickly you can convert those over.

Over 3000 stores that are in the pipeline.

Andre Sheppard: that are in the pipeline into operational and maybe in addition to that.

Into operational and maybe in addition to that they need any plans of expanding abroad.

Speaker Change: any plans of expanding abroad? I know some of your peers have been increasing their footprint in Europe , for example, so I'm just wondering if that's something that's being thought of. Thanks again.

Of your peers have been increasing their footprint in Europe . For example, so I'm just wondering if that's something that's being photo thank.

Thank you guys.

Speaker Change: Yeah, so on the timing look, I think that like.

So on the on the timing look I think that like the.

Speaker Change: What we're now doing is sort of counting on at least 12 months from idea to energization. Not wishing for six months, we're counting on 12 months, and we're working really hard on that. And again, so what we're doing right now, like those 3,000 to 3,300, those are going to get energized. There's going to be dogs that take longer, and then there's going to be super-quickie ones. But generally speaking, those are going to be sites that are going to go. So the 3,000 to 3,300 have been in planning for a while that are going to go live, but then we're building the pipeline for even bigger numbers for 23, 24, 25, right? So that's kind of what our site host development team is working on. And that's just sort of learning it, like we'll be delighted if it starts to go faster. Like we'll be delighted. On the overseas planning, look, we've got our hands full, we're really busy, we're actively doing all kinds of things in the United States. With that said, we'll be opportunistic. If there's an opportunity to naturally sort of extend our expertise, our skill, and our returns and bring in, grow the business overseas, we wouldn't be closed to it, but it's not something that we're actively pursuing at this point.

What we're now doing is sort of counting on at least 12 months from idea to <unk> not not wishing for six months or counting on 12 months and we're working really hard on that and again.

So that's that's what we're doing right now like there's.

<unk> 3000 to 3300, those are gonna get energized theres going to be there's going to be dogs that are take longer and then theres going to be super quickie ones, but generally speaking those are going to be sites that are going to go the 3% to 33.

<unk> thousand 338, hundreds have been in planning for a while that are going to go live. But then we are building the pipeline for even bigger numbers for 'twenty three 'twenty four 'twenty five right. So that's kind of what our what our site hosts and development team is working on so.

So and that's just let's just sort of learning is like we will be delighted if it starts to go faster I will be delighted.

On an overseas planning well look we've got our hands full we're really busy we're actively doing all kinds of things the United States with that said, where it will be opportunistic if there is an opportunity to naturally sort of extend our expertise our scale and our and our returns.

And you can bring and grow the business overseas, we wouldn't be closer, but it's not something that we're actively pursuing at this point.

Speaker Change: Got it. Very helpful. Thanks again and again, congrats on the quiz.

Got it very helpful. Thanks, again, and again congrats on the quarter.

I appreciate it thank you.

And ladies and gentlemen, we have reached the end of the question and answer session. This concludes today's conference as well you may disconnect. Your lines at this time.

Speaker Change: And ladies and gentlemen, we have reached the end of the question-and-answer session, and also this concludes today's conference as well. You may disconnect your lines at this time. Thank you for your participation.

Thank you for your participation.

Speaker Change: Thanks for watching!

Yes.

[music].