Q1 2022 EVgo Inc Earnings Call

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Greetings and welcome to even go first quarter 2022 earnings conference call. At this time, all participants are in a listen only mode.

Greetings, and welcome to EVGO First Quarter 2022 Earnings Conference Call. At this time, all participants are on the list in only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press Star Zero

A question and answer session will follow the formal presentation, if anyone should require operator assistance during the conference.

Please press Star zero on your telephone keypad as a reminder, this conference is being recorded I would now like to turn the competency over to your host Ted Brooks Investor Relations. Thank you you may begin.

As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Ted Brooks, Investor Relations. Thank you. Welcome to the ZoomItLocal.

Hi, everyone welcome to <unk> first quarter 2022 earnings call. My name is Ted Brooks and I head up Investor Relations at the company.

Hi everyone, welcome to EVGO's first quarter 2022 earnings call. My name is Ted Brooks and I head up investor relations at the company.

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

Today's call is being webcast and can be accessed from the investors section of our website at investors.edgo.com.

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

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

Joining me on today's call are Kathy Zoe video's CEO .

Joining me on today's call are Kathy Zoe, EZGO's CEO , and Olga Shevarankova, the company's chief financial advisor.

Oh that Chevron cool, the company's Chief Financial Officer.

Today, we will be discussing even goes latest financial results for the first quarter of 2022, followed by a Q&A session. During the call management will be making forward looking statements regarding the 2022 fiscal year and our outlook for expected growth and investment initiatives.

Today we will be discussing EVGO's latest financial results for the first quarter of 2022, followed by a Q&A.

During the call, management will be making forward-looking statements regarding the 2022 fiscal year and our outlook for expected growth and investment.

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

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

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

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

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

For a more detailed description of factors that could cause actual results to differ, please refer to our Form 10-Q filed soon with the SEC and post it to the investor section of our web.

Also please note that certain financial measures we use on this call are on a non-GAAP basis.

Also, please note that certain financial measures we use on this call are on a non-GAP basis. For historical periods, we provide the reconciliation of these non- GAAP financial measures to GAAP financial measures. The investor presentation can be found on the

Historical periods, we provided reconciliations of these non-GAAP financial measures to GAAP financial measures. The investor presentation can be found on the investors section of our website with.

With that I'll turn the call over to Kathy Zoon E V go CEO kathi.

With that, I'll turn the call over to Kathy Zoey, EVGO's CEO . Kathy?

Thanks, Ted and good morning, everyone.

E V go had a strong first quarter advancing our position as the nations most expensive public fast charging network for electric vehicles, our results, including the recent partnerships. We've signed demonstrates the advantages of being a pure play EV charging company with a robust and rapidly growing D C fast charging network.

TVGo had a strong first quarter, advancing our position as the nation's most expansive public fast-charging network for electric vehicles.

Our results, including the recent partnerships we've signed, demonstrate the advantages of being a pure play EV charging company with a robust and rapidly growing DC fast charging network.

Our ability to drive technological innovation and deliver new products and solutions for both consumers and partners alike will continue to provide us with a competitive advantage and exponentially growing EV charging market.

Our ability to drive technological innovation and deliver new products and solutions for both consumers and partners alike will continue to provide us with a competitive advantage in an exponentially growing EV charging market.

First quarter of 2022 shows that we are on the right path to achieving discuss E.

First quarter of 2022 shows that we are on the right path to achieving this growth.

E V go realized revenue of $7 $7 million and 86% increase compared to the first quarter of 2021 with throughput growing by 95% to eight gigawatt hours relative to the same quarter last year.

EVGO realized revenue of $7.7 million, an 86% increase compared to the first quarter of 2021, with throughput growing by 95% to 8 gigawatt hours relative to the same quarter last year.

We ended the quarter with 375000 customer accounts, which represents a 51% increase over the first quarter of 2021.

We ended the quarter with 375,000 customer accounts, which represents a 51% increase over the first quarter of 2021.

Do you want a 2022 with EDI goes best quarter ever for operational and mobilized charging stock representing a 166% increase in newly mobilized and newly operational staff when compared with the first quarter of 2021.

Q1 of 2022 was EDGO's best quarter ever for operational and mobilized charging stalls, representing a 166% increase in newly mobilized and newly operational stalls when compared with the first quarter of 2021.

Newly operational daus in the month of March alone exceeded every previous full quarter, except for one.

Newly operational stalls in the month of March alone exceeded every previous full quarter except for one.

Total salt in operation or under construction reached approximately 2100 at the end of the first quarter, putting E V go on track to achieve our full year targets.

Total stalls in operation or under construction reached approximately 2100 at the end of the first quarter, putting EVGO on track to achieve our full year targets.

We achieved this impressive performance despite continued headwinds from supply chain issues and inflationary cost pressures, we increased our active engineering and construction development pipeline and important progress stage for our business to more than 3300 store, which marks a considerable jump from the 1500 staff and the end of the.

We achieved this impressive performance despite continued headwinds from supply chain issues and inflationary cost pressure.

We increased our active engineering and construction development pipeline and important progress stage for our business to more than 3,300 stalls, which marks a considerable jump from the 1,500 stalls in the end of the first quarter of 2021.

First quarter of 2021.

Growth in the funnel has been substantial largely due to the experience of our team and he goes reputation as a dependable partner.

This growth in the funnel has been substantial, largely due to the experience of our team and EDGO's reputation as a dependable partner.

E V go has been scaling operations to capture the demand growth for fast charging we are focused both on increasing the size of our development pipeline and the capacity of the sites themselves. Both in terms of salt to a location and power level of the Chargers.

As EVDO has been scaling operations to capture the demand growth for fast charging, we have focused both on increasing the size of our development pipeline and the capacity of the sites themselves, both in terms of salt per location and power level of the chargers.

Oems have started to produce E d's with bigger batteries with more powerful charging capacities and they intend to sell lots of them in anticipation of this market evolution. Even go standard spacing configuration will be dealt with 350 kilowatt charging and at least six adult and more at the site hosted utility grid can accommodate it isn't.

OEMs have started to produce EVs with bigger batteries with more powerful charging capacities, and they intend to sell lots of them. In anticipation of this market evolution, EVgo's standard station configuration will be built with 350 kilowatt charging and at least six stalls, and more, if the site-hosted utility grid can accommodate it. This is an exciting development for the overall EV industry.

The exciting development for the overall eating industry.

Turning to business development and new partnerships in the last several weeks, we have signed and announced partnerships with Toyota and Subaru growing our list of OEM partners.

Turning to business development and new partnerships, in the last several weeks we have signed and announced partnerships with Toyota and Subaru, growing our list of OEM partners.

Neither our OEM partners are responsible for more than 40% of vehicle sales in the U S.

Together, our OEM partners are responsible for more than 40% of vehicle sales in the U.S.

Partnerships are moving into the implementation stage with software and marketing integrations underway as Subaru has announced pricing for the sole terror and begun making orders available to reservation holders.

Those partnerships are moving into the implementation stage, with software and marketing integrations underway, as Subaru has announced pricing for the Salterra and begun making orders available to reservation holders.

Both Toyota and Subaru anticipates, delivering new EV models in Q2, and Q3 of this year.

Both Toyota and Subaru anticipate delivering new EV models in Q2 and Q3 of this year.

E V. Go also entered into a partnership with Chase bank to add DC fast charging stations at many of its retail banking locations across the U S and we already broke ground at the first Jay site that will house E. V go fast Chargers in Indiana, continuing to make charging more convenient and accessible for drivers.

EVgo also entered into a partnership with Chase Bank to add DC fast charging stations at many of its retail banking locations across the U.S. And we already broke ground at the first Chase site that will host EVgo fast chargers in Indiana, continuing to make charging more convenient and accessible for drivers.

On the site Health front. We also went live with our first five E. Z go fast charging five admire grocery stores in Michigan, and Ohio, expanding our presence in the Midwest I E D's increase in popularity across the country.

On the site host front, we also went live with our first five EVGo fast charging sites at Meijer grocery stores in Michigan and Ohio, expanding our presence in the Midwest as EVs increase in popularity across the country.

You do also opens new sites with existing retail partners like Wawa whole foods, and Albertsons, Safeway and with bricks more and regency shopping centers in markets from Worcester mass to Tacoma, Washington.

Edigo also opened new sites with existing retail partners like Wawa, Whole Foods, and Albertson's Safeway, and with Bricksmore and Regency Shopping Centers in markets from Worcester, Mass., to Tacoma, Washington.

E V. Go also launched the implementation of a data sharing and roaming agreement with shell recharge solutions, which provides drivers with the council either charging platform access to the other's network.

EVgo also launched the implementation of a data sharing and roaming agreement with Shell Recharge Solutions, which provides drivers with accounts on either charging platform access to the other's network.

Agreements like these enhance the interconnectedness of the charging ecosystem and put drivers first making it easier for them to find a fast reliable charge.

Agreements like these enhance the interconnectedness of the charging ecosystem and put drivers first, making it easier for them to find a fast, reliable charge.

This latest agreement allows easy go drivers access to approximately 50000 charging stations across the U S and brings drivers using the shell recharge solution charging at the easy go network further increasing our throughput.

This latest agreement allows EVgo drivers access to approximately 50,000 charging stations across the U.S. and brings drivers using the Shell Recharge Solutions charging app to the EVgo network, further increasing our throughput.

Demonstrating the broadening geographic diversity and wide reach of EV E. V. Go also announced a partnership with the city of Portland name building on our long history of serving as a partner of first resort to deliver innovative charging solutions to forward leaning municipality.

Demonstrating the broadening geographic diversity and wide reach of EVs, EVgo also announced a partnership with the city of Portland, Maine, building on our long history of serving as a partner of First Resort to deliver innovative charging solutions to forward-leaning municipalities.

New partnership will bring E V go fast Chargers and level, two chargers to city controlled properties and provide a direct commercial relationship with the city of Portland Municipal fleet vehicles, helping to accelerate their ability to reach their sustainability goals.

This new partnership will bring EVGO fast chargers and Level 2 chargers to city-controlled properties and provide a direct commercial relationship with the City of Portland municipal fleet vehicles, helping to accelerate their ability to reach their sustainability goals.

At least beyond municipalities continue to take advantage of the benefits. He these can offer and this week. The E. V. Go team is exhibiting at the Act Expo in long Beach, California, It's kind of like the Woodstock for clean transportation, where we're highlighting either go after them and our other customized charging solutions for fleets of all stripes.

Fleets beyond municipalities continue to take advantage of the benefits EVs can offer. And this week, the EVgo team is exhibiting at the App Expo in Long Beach, California. It's kind of like the Woodstock for Clean Transportation, where we are highlighting EVgo Optima and our other customized charging solutions for fleets of all stripes.

This past quarter easygoing, Uber Walsh, our new joint marketing programs, including direct in that message as to drivers on the Uber platform informing them of the special pricing available to them on the E V go network.

This past quarter, EVgo and Uber launched a new joint marketing program, including direct in-app messages to drivers on the Uber platform, informing them of the special pricing available to them on the EVgo network.

Those efforts are yielding real results as monthly E V go throughput from drivers on the Uber platform increased by almost 50% in April from the average first quarter usage this year.

Those efforts are yielding real results, as monthly EV dose throughput from drivers on the Uber platform increased by almost 50% in April from the average first quarter usage this year.

Also during the quarter, we continued successfully securing funding award from governmental agencies and utility partners. We've worked with across the U S, including the California Energy Commission, and New Jersey's public service electric and gas as well as many others.

Also, during the quarter, we continued successfully securing funding awards from governmental agencies and utility partners we worked with across the U.S., including the California Energy Commission and New Jersey's Public Service Electric and Gas, as well as many others.

E V go continues to deliver software driven ancillary services like E. V. Go advantage in E. V go reservation, which has demonstrated solid success and provide us with a competitive differentiation in the charging market.

EVgo continues to deliver software-driven ancillary services, like EVgo Advantage and EVgo Reservations, which have demonstrated solid success and provide us with a competitive differentiation in the charging market.

We have observed a steady increase in customer demand for reservation and have doubled the number of easy go locations, where reservations are available we.

We have observed a steady increase in customer demand for reservations and have doubled the number of easy-go locations where reservations are available. We are now offering reservations at nearly 50 sites across seven different states in the U.S. and plan to roll out the offering more broadly.

We are now offering reservations at nearly 50 sites across seven different states in the U S and plan to roll out the offering more broadly.

We currently charge $3 per reservation with a two dollar no solti sepsis.

We currently charge $3 per reservation with a $2 no-show fee.

Such services has the potential to be highly accretive to our financial profile as these fees all directly to the bottom line and enhance our margin profile at.

Such services have the potential to be highly accretive to our financial profile, as these fees fall directly to the bottom line and enhance our margin profile. As EV penetration grows, we expect to offer a wide array of ancillary software-driven services that, like reservations and EVGo Advantage, set EVGo apart and allow us to efficiently monetize driver interaction.

Its E V penetration grows we expect to offer a wide array of ancillary software driven services that like reservations and need to go advantaged set E. D go apart and allow us to efficiently monetize driver interactions.

Also in the software vein in the last quarter, we launched E. V go inside a suite of application programming interfaces that enable third parties to win back the full E V go charging experience and do their own application.

Also in the software vein, in the last quarter we launched EVgo Inside, a suite of application programming interfaces that enable third parties to embed the full EVgo charging experience into their own applications.

This capability allows third party like auto OEM to provide holistic experiences for their new E. D owners. It includes a complete E V go charging experience as.

This capability allows third parties like Auto OEM to provide holistic experiences for their new EV owners that include the complete EVO charging experience.

As an example, we are currently working with Toyota as they leverage E V go inside and build their integrated driver application within the Toyota App.

As an example, we are currently working with Toyota as they leverage EVgo inside and build their integrated driver application within the Toyota app.

As you can see this quarter, we have been executing on each and every element of the business that makes E. V. Go stand apart infrastructure build out in locations, where drivers want to charge partnership development with marquee names in the transportation space and addition of value, creating software services that delight, our customers and partners alike.

As you can see, this quarter we have been executing on each and every element of the business that makes EDGOS stand apart, infrastructure build out in locations where drivers want to charge, partnership development with marquee names in the transportation space, and addition of value creating software services that delight our customers and partners alike.

We're excited to build on this momentum in the quarters to come and with that I'll turn it over to Olga to discuss our financial results Olga.

We are excited to build on this momentum in the quarters to come. And with that, I'll turn it over to Olga to discuss our financial results. Olga?

Okay.

Thanks Kathleen.

Thanks, Cathy. I will begin with a review of the key operational highlights. As Cathy noted, stalls in operational under construction were 2,110 at the end of the first quarter, with a total of 1,772 stalls being in operation and 338 under construction.

I will begin with a review of the key operational highlights as Kevin noted the old information under construction for 2000 and 110 at the end of the first quarter was a total of 1772 stores being in operation and 338 under <unk>.

Instructions.

This total is a 23% increase from the first quarter 'twenty to 'twenty one.

This total is a 23% increase from the first quarter of 2021.

Our active engineering and construction development pipeline more than doubled year over year to 3344.

Our active engineering and construction development pipeline more than doubled year over year to 3,344. Altogether, during the first quarter, we placed stalls into operation in 12 different states. For example, aside from California, we have been active in Michigan, Ohio, and North Carolina, to name a few.

Altogether during the first quarter, we placed stolz into operation in 12 different States. For example, aside from California, We haven't been active in Michigan, Ohio, and North Carolina to name a few.

We are extremely focused on accelerating the pace at which sites are selected developed constructed and commissioned while making sure that we retain our profitability and return targets. Even go continues to work collaboratively with others in the charging ecosystem utility.

We are extremely focused on accelerating the pace at which sites are selected, developed, constructed and commissioned, while making sure that we retain our profitability and return targets. EVEGO continues to work collaboratively with others in the charging ecosystem, utilities, governments, site hosts and equipment suppliers. To get the charger development fly will spin.

Is government side hosts and equipment suppliers to get the charge of development flywheel spinning.

And that's illustrated by EBIT goes banner months in March, we're making progress on shrinking those development timelines.

And as illustrated by EvieGos banner months in March, we're making progress on shrinking those development timelines.

In parallel though.

In parallel, though, we're implementing a variety of process improvements internally that are already bearing fruit in terms of cost and time saving.

We're implementing a variety of process improvements internally.

Already bearing fruit in terms of cost and time savings.

Notable among them is the use of drones to speed up and automate parts of a site survey process.

Notable among them is the use of drones to speed up and automate parts of the site survey process.

By increasingly utilizing drones instead of physical on sidewalks.

by increasingly utilizing drones instead of physical on-site walks if you go can achieve the same or better information accuracy at a much lower

If you go kind of choose the same or better information accuracy and a much lower cost.

As a result.

As a result, our overall survey activity in the first quarter increased by almost 25% as compared to the fourth quarter of 2021.

The overall survey activity in the first quarter increased by almost 25% as compared to the first quarter of 'twenty to 'twenty one.

Network throughput was eight gigawatt hours for the quarter with March being our highest throughput months in the history of illegal.

Network throughput was 8 gigawatt hours for the quarter, with March being our highest throughput month in the history of Ibiza.

As a reminder, vehicle miles traveled for both IC and electric vehicles have sandwiches in the Hologic with the spring and summer being the busiest time on U S roads.

As a reminder, vehicle miles traveled for both ICE and electric vehicles have some seasonality, with the spring and summer being the busiest time on U.S. roads.

Volume tends to fade in the fall and winter, usually bottoming out in January and February .

Volume tends to fade in the fall and winter, usually bottoming out in January and February .

Well I was showing a repeat of that trend in this year's first quarter, coupled with the omicron spike at the beginning of the year and fleet throughput volatility, we still delivered network throughput that was 95% higher than the first quarter of 'twenty or 'twenty, one as more consumers.

While we saw a repeat of that trend in this year's first quarter, coupled with the Omicron spike at the beginning of the year and fleet throughput volatility, we still delivered network throughput that was 95% higher than the first quarter of 2021, as more consumers in the US transitioned to UVs and the COVID recovery continues.

The U S transition to Evs and the Covid recovery can genius.

Turning to financial results, we reported $7.7 million of revenue in the first quarter of 'twenty to 'twenty, two which represented an eight 6% increase over the first quarter of two inches when do you want.

Turning to financial results, we reported $7.7 million of revenue in the first quarter of 2022, which represented an 86% increase over the first quarter of 2021.

Charging the revenue was up 66% over the first quarter of two once it went to one ancillary revenue was up 265% and the regulatory credit sales were up 142% over the same period.

Charging revenue was up 66% over the first quarter of 2021. Ancillary revenue was up 265% and regulatory credit sales were up 142% over the same period.

In charging revenue retail growth was the main drive posting a 94% increase.

In charging revenue, retail growth was the main driver, posting a 94% increase.

Ancillary revenue continues to benefit from the addition of black shirt in July 'twenty to 'twenty one.

Ancillary revenue continues to benefit from the edition of BlackShare in July 2021.

It is worthwhile to dive a bit further into the realized increase in regulatory credit sales.

It is worthwhile to dive a bit further into the realized increase in regulatory credit sales during the first quarter.

During the first quarter.

As many of you know.

As many of you know, pricing of LCFS credits has come down in the last year.

Pricing, although CFO credits has come down in the last year.

We have historically had a two quarter lag between junior racing and monetizing because these credits, but beginning in the first quarter, we have a new trading partnership that allows us to reduce the lag to just one months. This means that for the first and second quarters.

We have historically had a two-quarter lag between generating and monetizing this credit. But beginning in the first quarter, we have a new trading partnership that allows us to reduce the lag to just one month.

This means that for the first and second quarters of 2022 we will be bringing forward five months of credit monetization so you should expect an elevated regulatory credit sales line from us for Q1 and Q2. After that, we expect the line item to normalize.

Just wanted to well, we'll be bringing forward five months of credit monetization. So you should expect an elevated regulatory credit sales lines from us for Q1 and Q2 after that we expect the line item to normalize.

Adjusted gross margin was 37% for the first quarter and benefited from this regulatory credit sale acceleration.

A trusted gross margin was 37% for the first quarter and benefited from this regulatory credit sale acceleration.

Even without the benefit thereafter, and we estimate our adjusted gross margin would have been 29% an increase of approximately 10 percentage points from the first quarter of 2021.

Even without the benefit reference, we estimate our adjusted gross margin would have been 29% an increase of approximately 10 percentage points from the first quarter of 2021.

As expected Capex has increased materially year over year as our pace of charge of deployment has accelerated significantly.

As expected, COPEX has increased materially year over year, as our pace of charger deployment has accelerated significantly.

G&A expenses remain in line with our expectations, we reported adjusted EBITDA of negative $18.2 million, which was in line with our expectations as well.

GNA expenses remain in line with our expectations.

We reported adjusted EBITDA of negative 18.2 million dollars, which was in line with our expectations as well. We started the year consistent with the ramp-up as expected and are on track to achieve our financial and operational guidance for full year 2022.

We started the year consistent with the ramp up as expected and are on track to achieve our financial and operational guidance for full year two I just wanted to.

We look forward to seeing many of you in the coming weeks that concludes our prepared remarks and with that I would like to turn the call back to the operator to open up the line for questions.

We look forward to seeing many of you in the coming weeks. That concludes our prepared remarks. And with that, I would like to turn the call back to the operator to open up the line for questions.

Thank you at this time, we'll be conducting a question and answer session. If you'd like to ask a question. Please press star one on your telephone keypad.

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A confirmation tone will indicate your line is in the question queue. You May press star two if you'd like to remove your question from the queue for participants using speaker equipment. It may be necessary to pick up your handset before pressing the star keys, one moment, please while we poll for questions.

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Our first question comes from the heap Mandalay with credit Suisse. Please proceed with your question.

Our first question comes from Mahip Mandalay with Credit Suisse. Please proceed with your question.

Hey, good morning, everyone and thanks for taking my questions here just.

Hey, good morning everyone, and thanks for taking more questions here. Just on the guidance itself, could you just talk about the drivers over here? I think on the last call we talked about recovery and ride share, kind of providing some upside over here, just given the, you know,

Just on the guidance itself could you just talk about the drivers over here I think on the last call we talked about a recovery in rideshare.

Providing some upside over here.

Just given you're not them.

Pfizer companies themselves expecting a foster growth here do you see some growth on top and.

I check companies themselves expecting a faster growth here. Do you see some growth on that end? And then I ask them for lots of questions.

Awesome photo too thanks.

How many Cathy here. So we do expect overall everything to be ramping back up during the course of the year. So we expect the rideshare recovery to continue and we expect the EV sales to rise, we expect that you'd be penetration right. So as you know like our business model is tied.

underneath Kathy here. So we do expect

Overall, everything could be ramping back during the course of the year, so we expect a ride share recovery to continue. We expect the EV sales to rise. We expect the EV penetration to rise. So as you know, like our business model is tied to the throughput on the network is tied to the number, the amount of EVs being driven on the road. So the COVID recovery, we expect to continue a pace. Olga, did you want to add anything to that?

To the throughput on the on the network is tied to the number the amount of D. V is being driven on the road. So the COVID-19. The Covid recovery, we expect to continue a pace or did you want to add anything to that.

Alright, there, especially I would like to emphasize that our throughput are especially sensitive to the number of east of our OEM partners driving on the road shows with GM, Nissan Toyota and a few others. So we we get a higher share of those oh, those drivers and again, especially sensitive to that.

Right, especially I would like to emphasize that our throughput is especially sensitive to the number of EVs of our OEM partners driving on the road, such as DM, Nissan, Toyota and a few others. So we get a higher share of those drivers and again especially sensitive to those and we're monitoring how the sales are unfolded.

And then monitory and how their sales are unfolding.

Got it thanks for that and then just like on the high level from a federal incentive point of view of state incentives could you just remind us what read a weird or what's the status of the in frostbitten and expectations on kind of like some of that money kind of a floor.

get it, no thanks for that and then just like on the high level from a federal incentives point of view or state incentives could just remind us where are we, what's the status of the infra bill and expectations on kind of like some of that money kind of flowing through the different states here.

Through the different say too.

Yeah, you bet. So so again the.

Yeah, you bet. So, again, the $5 billion infrastructure bill money is not likely to start to flow until the end of this calendar year at the earliest. So where we are in the process, Maheep, is that the states are now preparing their plans, their individual plans for implementation based on the guidance that the federal government produced. I think it was in March, and that those plans from the states are due August 1.

5 billion dollar infrastructure build money is not likely to start to flow until the end of this calendar year at the earliest so where we are in the process and the heap is that is that the states are now preparing their plan their individual plans for implementation based on the guidance that the federal government produce I think it was in <unk>.

March and that those plans from the states are due August 1st.

And then the federal government has to review those plans and has undertaken to provide a yes no. This works what with what we want by the end of September I think it is so that's basketball that's all sort of happening right. Now. In addition, the department of Transportation is it is meant to issue technical guidelines on the program again, they were they were supposed to come out.

And then the federal government has to review those plans and has undertaken to provide a yes-to-no. This works with what we want by the end of September , I think it is. So that's all sort of happening right now. In addition, the Department of Transportation is meant to issue technical guidelines on the program. Again, they were supposed to come out on this Friday. We hear through kind of the rumblings in Washington that may be delayed just a little bit. But those are technically specific guidelines.

This Friday, we here through the kind of the rumblings in Washington that may be delayed just a little bit it doesn't technically specific guideline.

What our team in E. V. Go has been doing is we've been we've been liaising with Dayton D O Ts as they as they think about their own individual state plans and and then with the feedback. We're getting is some easy goes one best practice documents are connected to what the program has been very very helpful, particularly to those states.

What our team at EDGO has been doing is we've been liaising with state DOTs as they think about their own individual state plan.

And the feedback that we're getting is some of EVGO's own best practice documents, our Connect the Watts program has been very, very helpful, particularly to those states that have not had much experience to date in deploying fast chargers. So we're actively engaged. We're really excited about this, but again, it's not necessarily going to be material financial close until end of the calendar year at the earliest.

That had not had much experience to date in deploying fast Chargers, so where we're actively engaged we're really excited about this but again, it's not necessarily going to be material financial close until end of the calendar year at the earliest.

Gotcha no.

Yeah, thanks for that clarity and just like one last housekeeping for me. One other additional point that I should make about federal stuff, which is, so that's the five billion dollar infrastructure money known as NEVY. Those are the other part of it, which you can formally refer to as Build Back Better. This was the package of incentives that got stuck at the end of last year that Senator Manchin held up.

So that clarity and just like one loan.

What other what other additional point that I should make about about federal stuff, which is so that's the 5 billion dollar infrastructure money known as nervy.

At the other part of it which once you get into formerly referred to as build back better. This was the package of incentives that got stuck at the end of last year that Senator Manchin held up against the latest is that there may be a deal to be struck on tax incentives with senator manchin coming on board in that way.

Again, the latest is that there may be a deal to be struck on tax incentives.

Include both 30 C. M 30 days. So 30 see is the is the tax breaks for building the infrastructure and 30 D is the tax incentives for individual purchases of E V and again, our our folks in D. C are hearing that there is there is potentially a deal with the term.

So, 30C is the tax breaks for building EV infrastructure, and 30D is the tax incentives for individual purchases of EVs. And again, our folks in DC are hearing that there is potentially a deal, the terms of which could conceivably be agreed to by Memorial Day, and that wouldn't become law that quickly, but where everybody got kind of sad and depressed and thought that this isn't going to happen, there is now a new cautious optimism, I would say, floating around policy circles that indeed this might go ahead. So that, again, that will accrue to EVs because we have a model of this and it will accrue to EVs because that's it.

Of which could conceivably be agreed to by Memorial day, now wouldn't become law that quickly, but where where everybody heightened got kind of sad and depressed and thought that there isn't going to happen. There is now a new cautious optimism I would say floating around policy circles that indeed this might go ahead.

But again that will accrue to you because we haven't modeled it I don't know.

So that, again, that will accrue to you because that is what we have to model this and it will accrue to you because.

Yeah.

Oh, that's interesting Memorial day is probably hum.

That's interesting. Memorial Day is probably the timeline for that, right? At least in terms of negotiation, if not the final... Yeah, yeah, in terms of the negotiation, yeah.

The timeline for that right at least in terms of negotiation right yeah, Yeah in terms of the negotiation yeah yeah.

Right and it can stick with just one last one on the housekeeping on the $7 7 million number Oh gift could just remind us the regulatory credit is that part of that 7.7 of them. In addition to that 7.7, and how should we kind of think about seasonality.

Right. And just one last one on housekeeping. On that 7.7 million number, Olga, if you could just remind us, the regulatory credit, is that part of that 7.7 or that in addition to that 7.7? And how should we kind of think about seasonality on an annual basis?

Yeah. Thanks.

So $77 million.

So $7.7 million gap revenue, which we reported this quarter, so it includes regulatory credit sales of roughly $1.4 million.

It's a GAAP revenue, which we reported this quarter. So it includes regular sort of credit sales of roughly one point formula and.

We don't give a specific guidance on a how much all specifically regulatory credit sales. We expect to have this year is included in our overall guidance, which we have reiterated but we are looking at a bit of a lower credit.

We don't give specific guidance on how much of specific regulatory credit sales we expect to have this year. It's included in our overall guidance, which we have reiterated, but we are looking at a bit of a lower credit.

Are there price prescribed this right now as it would've actually been going up in the last few days, but it's counter balanced by us changing the methodology by which we recognize the graduate says I described earlier. So that's not we're looking at a similar number for the full year, but we're looking at a few months ago.

the price for credits right now, though it actually has been going up in the last few days. But it's counterbalanced by us changing the methodology by which we recognize the credits as I described earlier. So, net-net, we're looking at a similar number for the full year as we were looking at a few months ago.

Got it and they're really helpful. Thanks, a lot everyone on Oh.

Yeah, they're really helpful. Thanks a lot, everyone.

Right.

Thank you.

As a reminder, we ask that you please limit to one question and one follow up.

As a reminder, we ask that you please limit to one question and one follow-up.

Our next question comes from Ryan Greenwald with Bank of America. Please proceed with your question.

Our next question comes from Ryan Greenwald with Bank of America. Please proceed with your question.

Good morning, Tim.

I appreciate the time you're right.

Maybe just starting with throughput for the quarter can we unpack that a bit more looks like 2% sequential drop despite.

Maybe just starting with throughput for the quarter. Can we unpack that a bit more? Looks like 2% sequential drop, despite AFDC data suggesting 10% plus increase in stalls. How much do you guys kind of attribute this to seasonality? Any noticeable pressure from competition? I know you guys alluded a bit to other factors as well, but if we could just kind of quantify that a bit more.

D C data, suggesting 10% plus increase installs how much do you guys kind of attribute this to seasonality any noticeable pressure from competition I know you guys alluded a bit to other factors as well but.

We can just kind of quantify that a bit more.

Oh do you want to use.

Olga, you and I have been talking about the unpacking of this. Do you want to take that? Yeah, sure. So just a reminder, the number of souls is not as strong of a driver of throughput for everybody, not just us. The key inputs into how much people are charging is how many cars are there and how much they are driving. Those are absolutely key. So that, I think, explains why.

And I have been talking about the unpacking of that when I take that yeah. Sure. So just a reminder that the the number of salt, it's not as strong of a driver of throughput for everybody and I'll just ask the key.

Inputs and into how much people are charging is how many cars are they and how much. They are driving those are absolutely key. So that's I think explains why.

You your season and increase the number of stores in Cogs and are now in that work well you see a flattish and a slight decrease in the overall throughput. So is the reason for the seasonality in January and February are the lowest months in terms of vehicle miles traveled in the United States, whereas if it increases by a by the time it's summer.

you see the increase in the number of stalls, including on our network, but you see a slight decrease in the overall throughput. So the reason for it is seasonality. January and February are the lowest months in terms of vehicle miles traveled in the United States, whereas it increases by the time it's summer.

Then another thing is omicron the December and January both months were actually a Fox at my Omicron search and you can you can look at better data points that we're looking at the open table for example, and how much restaurants bookings have plummeted in December and January and we saw that really.

Then another thing is Omicron. December and January , both months, were actually affected by Omicron search. And you could look at better data points. We were looking at an open table, for example, and how much restaurants bookings have plummeted in December and January . And we thought that's really representative metric for the demographics, which uses our network. And we saw that January , it's in the normal year, would be slower than January .

But he presented this magic because the demographics, which uses our network and we saw that the January it's it's in a normal year would be slower than.

Than other months, but here it was accentuated by omicron search where it must be a lot of people who are sick and they were we're not driving.

than other months, but here it was accentuated by Omicron search where most people, a lot of people were sick and they were not driving.

And I think E. We published the graph on the presentation, which clearly shows a genuine temporary the low in February also has 28 days.

And I think we published the graph in our presentation which clearly shows that January and February were lower. February also had 28 days compared to January and compared to March. But if you adjust February for 31 days, you already will see a recovery by the end of February . And then you clearly see how much we recovered in March. And that's associated with.

First of January and compare it to March but if you are just February 431 day already we will see a recovery by the end of February and then you can really see how much would it cover than March and that's associated with it ease in kind of a temporary easing this well will observe cogs.

easiness, kind of a temporary easiness, we'll observe COVID as it goes on, but March was, I think COVID in March was slightly suppressed, so people went back on roads, and also Cincinnati played a role where by the time it's spring, people just drive more. And another reason is fleet volatility, some of our dedicated contracts

It goes on but March was I think COVID-19 in March was a slightly suppressed our people went back on the road and also seasonality played a role where by the time, it's bringing people just drive more and another reason is felipe volatility of some of our dedicated contract.

Just a reminder, we have take or pay contracts with autonomous vehicle partners, where it doesn't matter how much they use they pay us some form of a floor and those guys. They are still in a testing mode and they ramp their use of chop them theyre rapidly usage down and they don't have a consistent usage parking just yet.

Just a reminder, we have take-or-pay contracts with autonomous vehicle partners, where it doesn't matter how much they use, they pay us some form of a floor. And those guys, they are still in a testing mode, and they ramp their usage up, and they ramp their usage down, and they don't have a consistent usage pattern just yet. They also shift their cars around.

They also shifted their cars around.

Just as a function of what are the islands and development cycle and we just saw a little bit of a decrease on there from a strong January and February as well, which is now recovering, but that's really where we don't have much insight into their testing partners. It almost it doesn't affect our revenue, but it affects solid throughput as well.

just as a function of where they are in their development cycle, and we just saw a little bit of a decrease on their trend throughout January and February as well, which is now recovering, but that's really, we don't have much insight into their test departments. It obviously doesn't affect our revenue, but it affects our throughput as well, and that complemented Omicron and seasonality on the retail.

And that's complemented the omicron Susan knowledge on the retail side.

Got it that's helpful. Any color you can provide around same store economics in utilization versus comparable periods.

Got it, that's helpful. Any color you guys can provide around same-style economics and utilization versus comparable periods.

I'm, sorry, say that again right.

In terms of just you know the same stores on an apples to apples basis.

In terms of just, you know, the same stalls on an apples-to-apples basis without the additional capacity here.

Without the additional capacity here.

Can you help kind of frame utilization and profit per store versus comparable periods, even just kind of <unk> 2021.

Can you help kind of frame utilization and profit per stall versus comparable periods, even just kind of 1 Q2 021?

Oh, so olga.

Yeah, so maybe just take a step back when you add the

Yeah sure. So maybe just to take a step back when you add them when you're at adult isn't that book it doesn't necessarily mean that that stall by itself comes with some additional utilization you're kind of looking into the overall market in our dessert and data analysis indicates that people kind of rest spread.

When you add a stall to the network, it doesn't necessarily mean that that stall by itself comes with some additional utilization. You're kind of looking at the overall market, and our research and data analysis indicates that people kind of re-spread themselves, as you wish. And the growth really happens when people start driving more or when you add new cars to the market. So looking at it at a same-stall basis, it is not how we look at our network. We do in-depth analysis about the utilization of percentage and how it is being driven, because if you add too much capacity but your traffic hasn't grown at the same rate over the period you're looking at, you will see some utilization drop, and we look at it region by region. This is not the level of detail we would like to disclose at this time.

Themselves as you wish and the growers really happens when you when people start driving more or when when you add new cars to the market. So looking at editors at a same store basis that is that's not how we look at all in that book, we would do in depth analysis about that if we could do it.

As a percentage and how it is being driven because if you add too much capacity, but your traffic hasn't grown at the same rate over the period, you're looking at you will see some utilization drop and we will look at it region by region. This is not the level of detail, we would like to disclose at this time, but.

Frankly.

But frankly, um,

I'm not sure that would be that that's useful for your purposes useful for us and for all and that's where the development activities, which were doing by utilizing that data and learn from it I think what's important to them. There are there are more of these sales definitely Q1, we saw we saw strong EV sales despite all of that.

I'm not sure that would be that useful for your purposes, useful for us and for our network development activities, which we're doing by utilizing that data and learning from it. I think what's important is there are more EV sales, definitely Q1. We saw strong EV sales despite all the challenges. We hope that trend continues. We saw a very great recovery in March.

Alan just would hope that trend continues we saw a very gradual recovery in March.

Which is indicative of again the recovery of the usage, but also additional EV sales and with things. Those are all positive news. The same store utilization is a bit of a foreign concept on how we're looking at it but I'm also not sure that that is going to be helpful for your.

which is indicative of, again, recovery of the usage, but also additional easy sales. And we think those are all positive news. The same stall utilization is a bit of a foreign concept of how we're looking at it, but I'm also not sure that that's going to be helpful for your overall modeling purposes. But let me know if you would like to unpack it further.

Overall more than purposes, but let me know if you if you would like to unpack it further.

Yeah, I mean, Ryan as I think about it like in a fast growing market like this.

Yeah, I mean, Ryan, as I think about it, in a fast-growing market like this, I'm kind of with, oh, I'm not sure what that level of that precision would be useful for either for you or for us. When we tend to look at the overall profitability on a network basis, there's a number of EVs on the road growth, and that's what actually really, really matters to us at the end of the day.

I'm kind of with all the I'm not sure what that level of that precision would be useful for either for you or for us and them. We tend to look at the overall sort of profitability on a network basis. There's a number of evs on the road grows and that's that's what actually really really matters to us at the end of the day, though.

Any color just on regional utilization overall versus last year.

Any color just on regional utilization overall versus last year?

Oh sure I mean look we as we talked about it in our last call California's profitable and we have a number of other other profitable regions that are that are interesting and like Portland, Denver, what were the other cities that we highlighted that it was all number now C C.

Oh, sure. I mean, like, look, as we talked about in our last call, California is profitable and we have a number of other...

profitable regions that are interesting like Portland, Denver, what were the other cities that we highlighted? I was on now. Phoenix is a great market, and I would venture to say that a year ago that wasn't the case. So that is absolutely a function of ED penetration rising in those metropolitan areas and us having a good stable of charges to meet that demand. I'm just dead.

I think Phoenix is a great market and I would I would venture to say that a year ago that wasn't the case. So that is absolutely a function of EV penetration rising in those metropolitan areas and and us having them having.

A good stable of charges to meet that demand.

Understood got it I will leave it there. Thank you so much for the time.

Thanks, Brian .

Our next question comes from Andres Sheppard with Cantor Fitzgerald. Please proceed with your question.

Our next question comes from Andres Shepard with Cantor Fitzgerald. Please proceed with your question.

Hey, good morning, guys and congrats on another great quarter.

Hey, good morning, guys, and congrats on another great quarter. I was just wondering if you could maybe expand a little bit on the revenue seasonality for the remainder of the year. So you've reaffirmed guidance, which is great. I'm just wondering should we kind of assume the next two quarters to continue to ramp up, and maybe Q4 to be a little bit less than the previous ones, or better to kind of assume increasing revenues quarter after quarter.

I was just wondering if you could maybe expand a little bit on the revenue seasonality for the remainder of the of the year right. So you've reaffirmed guidance, which is great.

Just wondering should we kind of assume the next two quarters to continue to ramp up and maybe Q4 to be a little bit less than the previous ones or better to kind of assume increasing revenues quarter. After COVID-19.

Okay that's true.

Sure. So that that is a good question. We we are simultaneously dealing with the seasonality and also the rate at which he visa being added to the network.

Sure, so that is a good question. We are simultaneously dealing with the seasonality and also the rate at which EVs have been added to the network. So those, and sometimes in those particular months when there are a lot of EVs being added on the network, it could mask your seasonality and vice-versa.

So those are the the and in sometimes in those particular months worth or a lot of it is being added on the NASA, it's called the Moscow seasonality and vice versa.

So it's not enough.

So it's not enough for some reason because they're not even money.

Reason, because they're not even amongst the months sometimes.

Sometimes when evs the number of movies, which got edits isn't that book wasn't as high but you know this is a knowledge. It would show the highest months, you'll get an average month of those two play in together and we frankly, we have some ideas about how easy is that going to be added to our Napa, but obviously, there's always a watertight switch.

Sometimes when EVs, the number of EVs which got added to the network wasn't as

But, you know, this is an allergy which shows a higher amount, you'll get an average amount. So, those two play in together. And we, frankly, we have some ideas about how EVs are going to be added to our network, but obviously those are forecast, which is really important.

Which are outside of our control so I want to caution on making statements that Q2, and Q3 will be very high and then Q4 will go down they might not be the case I'm looking at various different scenarios, but in general we could definitely expect that summer is a very strong because of the driving partners and you would see some.

which are outside of our control. So I would be cautioned on making statements that Q2 and Q3 will be very high and then Q4 will go down. They might not be the case. I'm looking at various different scenarios. But in general, we could definitely expect that summer is very strong because of the driving patterns. And you would see some LHS.

Elevation, how Q4 would play out this.

how Q4 would play out, but the time will show it's a little bit difficult to say right.

The time will show it it's a little bit difficult to say right now.

Got it that's very helpful. Appreciate it and maybe for my my follow up I'm wondering if you could maybe expand a little bit on the E. V. Go extent you know I think it's a very interesting addition to the business model.

Got it. No, that's very helpful. Appreciate it. And maybe for my follow-up, I'm wondering if you could maybe expand a little bit on the EVGO extent. I think it's a very interesting addition to the business model, and so I'm just wondering if you could maybe add a little bit more color there, or what should we expect to hear more about it? When does that kind of start to ramp up? Any color there would be helpful.

And so I'm just wondering if you could maybe add a little bit more color there.

When should we expect to hear more about it when does that kind of start to ramp up any any color there would be helpful.

Sure Yeah, well, so we talked a bit about what what needs to go extend is a threat for the other listeners.

Sure. Yeah. Well, so we talked a bit about what EVGO Extend is for the other listeners in the last talk. For the other listeners, EVGO Extend is a kind of a branding of a service that we provide where EVGO goes and identifies some sites that are great, because it's a great service.

And the other listeners you'd be go extend is there is a kind of a branding of the service that we provide where E V go goes and cause.

Some sites that are great construct operate and operate chargers, but the assets are actually owned by the cycles. If you will and what there's a giant opportunity I mean as you know what <unk> does is we we only build sites, where they pencil to double digit returns and part of that is a function.

and operate chargers, but the assets are actually owned by the site host, if you will. And there's a giant opportunity. I mean, as you know, what EVGO does is we only build sites where they pencil the double-digit returns and part of that is a function of utilization, et cetera, et cetera.

B utilization etcetera, etcetera, with the Biden infrastructure money focused on rural areas in particular in quarters, which don't necessarily have great utilization in the near term, but there are a number of site hosts who want who want to participate in the electric vehicle charging infrastructure.

With the Biden infrastructure money focused on rural areas in particular and corridors, which don't necessarily have great utilization in the near term, but there are a number of site hosts who want to participate in the electric vehicle charging infrastructure growth phenomenon. They might be interested in owning the assets where we actually don't want to take the risk on utilization, but we want to be able to add those stations to our geographic footprint and earn some revenue from them.

Infrastructure grew.

Gross phenomenon there.

They might be interested in owning the assets, where we actually don't want to take the risk on utilization, but we want to be able to do you want to be able to add those stations to our geographic footprint and earn some revenue from them. So what we are we lost maybe go with sandwiches that business model. So those those site hosts will have E. V go operated.

So what we launched EVGO Extend, which is that business model, so those site hosts will have EVGO-operated chargers

Chargers on their location and then we will collect the money to do the E. P C and to keep those on our network over overtime. So its a great revenue accretive stream, we are as I've alluded to in the last call. We are in advanced conversations with a number of really interesting partners.

And we will collect money to do the EPC and to keep those on our network over time. So it's a great revenue to create a stream.

We are, as I alluded to in the last call, we are in advanced conversations with a number of really interesting partners.

And we will you know when those deals are inc. We look forward to sharing them with you, but it's a very very exciting way for E. V go to extend its reach to its to grow our revenues at a at a at a sort of a very sort of without exposing ourselves to any sort of utilization risk in places, where we are not I'm confident that the utilization will not.

And we will, you know, when those deals are inked, we look forward to sharing them with you, but it's a very, very exciting way for EVGO to extend its reach, to grow our revenues at a sort of a very sort of, without exposing ourselves to any sort of utilization risk in places where we are not.

Confidence of the utilization will necessarily be the way the business model will work the best.

To say it would be the way the business model works the best so stay tuned on it actually it will come back as soon as we can but the specifics.

So stay tuned, Andres. We'll come back as soon as we can with a special...

Thank you very much Cathy that that's very thorough I appreciate it I'll pass it on thanks, again and congrats on the quarter.

Thank you very much, Kathy, that's very thorough. I appreciate it. I'll pass it on. Thanks again and congrats on the

Thank you.

Our next question comes from Bill Peterson with Jpmorgan. Please proceed with your question.

Our next question comes from Bill Peterson with J.P. Morgan. Please proceed with your question.

Yeah.

For taking my questions and nice job on the quarterly results.

Yeah. Thanks for taking my questions. It's a nice job on the quarterly results.

My first question is you mentioned in your cost increase to I guess across.

My first question is, you mentioned a constant increase to, I guess, approximately 375,000, looks like a 30k increase.

Approximately 375000, it looks like a 30% increase.

Can you show me customers came as a result of of OEM and rideshare customers and I guess the second part is looking ahead okay.

Can you share how many customers came as a result of OEM and ride share customers? And I guess the second part is looking ahead. I'm curious on the repeat business from customers that have accounts through OEM partnerships. For example, can you share any metrics of customer usage of car owners such as

Chris on the repeat business from customers that have a culture OEM partnerships. For example, can you share any metrics of customer usage of car owners, such as they figure like Nissan leaf, where the first year credit goes away or expired.

I think, like, Nathan Leaf, you know, where the first-year credits goes away and expired, just trying to get a feel for the stickiness of the business as we think about, you know, these partnerships.

Trying to get a feel for the stickiness of the business as we think about these partnerships.

Okay.

Sure. So the vast majority of the of the 200000 certified thousands of besides our retail customers. We don't disclose the exact split between OEM and kind of normal retail, but retail is still a an overweight on fleet.

Sure. So the vast majority of the 30,000, 35,000, if you say, retail customers, we don't disclose the exact split between OEM and kind of normal retail, but retail is still an overweight. On fleet, with rideshare customers, the number will be very small, but they bring a lot of traffic. So they have an outsized effect.

What's the right customers. The the number will be very small, but they bring a lot of traffic. So they have an outsized effect.

But that but I would think about it is about the majorities retail for now.

But I would think about it as a majority retail for now.

And the second question stickiness. So yeah. It says if you could repeat it because I I had hard time to process two questions too long because it would be just so yeah. We could do you have a lot of great partnerships with.

So if you could repeat it, because I had a hard time to process two questions with one. You have a lot of great partnerships with new ones like Toyota and Subaru and older ones like with Nissan. I remember Nissan, I think, was like a one-year program, so they come off, right? I kind of understand like, do these guys stick with EVGo after their sort of complimentary charging comes off? Yes.

Subaru and older ones like with Nissan, but.

Nissan I think it was like a one year program so they come off right.

But if I understand like do these guys stick with D V go after there.

Implemented recharging comes off.

Yeah. So there's a Nissan was Oh two year program. So one was an extension, but yes, absolutely they just stick around well seasoned and nowadays, it's a great acquisition channel.

or a two-year program, so one with one extension. But, yes, absolutely. They just stick around with thesis and our data. It's a great.

acquisition channel. It's early to say it was super-antiotic, because those cars are not circulating on our network yet. But we do expect the same effect, and we expect the same effect from our General Motors customers, when General Motors starts really selling their cars unmasked, and all of our contracts will get the full use, we will see the same

It's early to say with Subaru Toyota because those cars are not simple as you know in that book, yet, but would you expect the same in fact, and we expanded the same effect from our general mottos customers when general Motors, that's really selling their cars on Nash and Ah all of our contracts will get the full use where will we see the same.

In fact, so we love those partnerships precisely because it's a great sales channel because early data shows us that people do stick with them.

So we love those partnerships precisely because it's a great sales channel, because early data shows us that people do stick with the initial, um...

So charging provider.

Okay. Thanks for that.

Okay. Thanks for that. And I also have a question on seasonality, not so much, I guess, for the retail or network throughput, but I think you mentioned that you're going to see an outsized portion of LCFS credits coming in the first half of the year. But what is – does it go – I just try to get a feel for how we should model that for the full year, maybe more importantly, longer term. I mean, I assume we should assume some compression, but any sort of color you can provide on, I'd say, the other non-charging related portions of your seasonality.

Also the question on seasonality not so much I guess for the retail or our network throughput, but thank.

Thank you mentioned that Youre going to see an outsized portion of it also your best credits coming in the first half of the year, but what it does it go just trying to get a feel for how that how we should model that for the full year and maybe more importantly longer term I mean, I assume we should assume some compression, but any sort of color you can provide on the let's say all the other non charge.

And related portions of your seasonality.

Yeah.

Yeah, so it's kind of actually even easier to model that business line now because we used to recognize the LCFS revenue, regular credit sales revenue, took waters after those credits or kilowatt hours were generated. We now have an off-take agreement with a third party provider where they

It's kind of actually even easier to model that business line now because we used to recognize and Oh fantastic rather than you go to the greatest gels revenue took waters. After those are credits or kilowatt hours of January that we now have on our offtake agreement with a third party provider where are they.

Get them or what are we recorded revenue of one months after they've been generated to when you can just forget about them I was just kind of call. It immediately so that that that that it depends on how much kilowatt hour, Virginia raised in California, and its usually around 65% to 75% booked.

get over a record revenue one month after it's been generated so when you can disregard your month just call it immediately so that it depends on

how much kilowatt hour was generated in California, and it's usually around 65 to 75 percent. It's up to eight, but it's around that.

Two eight.

But it's around that and then the the amount of revenue but of course will be strictly proportionate to those California kilowatt hours in Q1, and Q2, what kind of using both methods where are we recognize those killer, California kilowatt hours as they come in and we sell.

The amount of revenue recorded will be strictly proportionate to

those California kilowatt hours, and Q1 and Q2, we're kind of using both methods where we recognize those California kilowatt hours as they come in, and we sell the balance which we had from past quarters to create a bit of an elevated number in Q1 and Q2. But then Q3, Q4, it's actually pretty easy. California kilowatt hours, which is a certain percentage of total, and that corresponds into how many credits.

Oh, there's imbalance, which would have from past quarters that creates a bit of an elevated number in Q1 and Q2, but thank you. So with Q4, it's actually pretty easy, California kilowatt hours, which is a certain percentage of title and that corresponds into how many credits how many how much revenue we book.

how much revenue we book in a proportionate way.

In a proportionately.

Okay. Thanks for that appreciate it.

Our next question comes from all of the Rang with Tudor Pickering Holt. Please proceed with your question.

Our next question comes from Oliver Ng with Tudor Pickering Holt. Please proceed with your question. Good morning, everybody.

Good morning, everybody and thanks for taking my questions.

Hello there.

The current year end target for under construction and operational DC fast Chargers implies a fairly steep ramp and I know its tough given certain timing aspects that are beyond your control, but was hoping to get a bit more color on the expected cadence of installs and construction as we kind of move through the rest of the year or anything really that might help provide the market confidence.

The current year-end target for under construction and operational DC fast chargers implies a fairly steep ramp, and I know it's tough given certain timing aspects that are beyond your control, but I was hoping to get a bit more color on the expected cadence of installs and construction as we kind of move through the rest of the year or anything really that might help provide the market confidence in being able to achieve your reiterated four-year charger count outlook from this morning.

To achieve your reiterated full year charter town outlook from this morning.

Yeah. So I mean, I think what you have to do is you kind of have to go all the way up the funnel. So we've got we've got a.

Yeah, so I think what you have to do is you kind of have to go all the way up the funnel. So we've got a really good question.

Really large engineering and construction activity in the pipeline as we call it which then feeds into what's gonna get mobilized and then energized by the utility so.

engineering and construction, active ENC pipeline as we call it, which then feeds into what's going to get mobilized and then energized by the utility. So it is large. I think what this is starting to say, and you've heard me talk about this before, Oliver, it's the flywheel spinning.

It is it is large the I think what this is starting to say and you've heard me talk about this before Oliver the flywheel spinning them you know the when we first came out as a public company. We you know the data we gave it it takes 18 months on average from idea of having a station at a location to mutually energized nation with my.

When we first came out of the public company, the data we gave, it takes 18 months on average from idea of having a station at a location to utility energization with my Cathy's early aspirations of getting it down to six months, and we are not at six months yet, but we are starting to see the processes pick up in many jurisdictions.

My Caffeine's away aspiration of getting it down to six months and we are not a six months yet, but we are starting to see the processes pick up in many jurisdictions.

And so we are we've got that confidence that you know with our banner month in March.

And so we've got that confidence that, you know, with our banner month in March, and again, that's everybody pulling together in the attire. It takes a village to build a charger, you know, the utilities are coming together, the local government authorities, the site hosts are super excited. We have a lot of confidence that that is going to continue to ramp so that we can actually reach our year-end targets. And we feel confident that we're on track to do that because of the pipeline, because of this.

And again, that's everybody pulling together in the tire it takes a village to build a chartered utilities are coming together the local government authorities to fight as they're Super excited we have a lot of confidence that that is going to continue to ramp. So that we can actually reach our year end targets and we feel confident that we're on track to do that because of the pipeline because of the this the speed.

With which things are picking up in every stage of that process right still it takes about four to eight weeks to do the construction, but the bits on either side of it.

speed with which things are picking up in every stage of that process.

It still takes us four to eight weeks to do the construction, but the bits on either side of the project are still there.

The contract signing with between hosting and utilities for easements.

contract signing between site hosts and utilities for easements, utility energization, timetables, all of those sorts of things. So that is actually the good news.

Utility energized nation timetables all of those sorts of things. So that that's that is actually the good news side.

Thanks, that's very helpful and for a second question just operationally any color on what the average rate of acceptance that youre seeing today relative to what you all kind of spoke to last summer just kind of given the greater mix of upgraded B vs of has there been more of those are entering the vehicles in use mix in.

Thanks. That's very helpful. And for a second question, just operationally, any color on what the average rate of acceptance that you're seeing today relative to what you all kind of spoke to last summer, just kind of given the greater mix of upgraded BEVs as there have been more of those entering the vehicles and use mix and just higher power capability of your newer charger ads and any change in terms of the timeline of being able to hit that 80 or so threshold.

Just a higher power capability of your newer charge rats and any change in terms of the timeline of being able to hit that 80% threshold.

Ray like Stephan.

Sorry.

Yeah. The the right rate of throughput that you are seeing on average I think you all spoke to it being in the low thirties previously.

Yeah, the rate of throughput that you're seeing on average, I think you all spoke to it being in the low 30s previously in the summer of last year.

And in the summer of last year.

You're in charge right Damian charges right.

Oh, Yeah, that's right.

So we do see the charge rate growing slowly but steadily, so every single month it goes up. And I was just this morning looking at the analysis showing that if you look at the charge rate of people who joined in the last five months versus everybody else, they are quite a bit 15% higher on charge rate than everybody before. And then also when you look at the charge rate

Got it right. So we do see the charge are growing slowly but steadily. So every single months. It goes up and I was just this morning looking at the analysis showing that if you look at the charge and the people who joined in the last five months versus everybody else. They are quite a.

Bed, 15% higher on charge rate than everybody before and then also when you look at the charge rate.

On our higher powers to the charges, which is mostly what we are deploying right now that charge rated.

on our higher power 350 charges, which is mostly what we are deploying right now, the charge rate is very low.

Neil the garble, a little bit less than double versus versus on on 50 kilowatt charges. So we absolutely see the rise of the charge rate and we expect that to go up with new models being introduced to the market and then just dominated in circulation. So that's absolute.

nearly double, a little bit less than double versus on 50 kilowatt charges. So we absolutely see the rise of the charge rate and we expect that to go up with new models being introduced to the market and just dominating circulation. So that absolutely goes as planned.

Can they go with his plans.

Yeah.

Perfect. Thanks for the time.

Our next question is from Noel Parks with Tuohy Brothers. Please proceed with your question.

Our next question is from Noel Parks with Tilly Brothers. Please proceed with your question.

Hi, good morning.

I know.

I just wanted to touch on a couple of things and I apologize if you touched on this earlier, but I was curious if you could talk about the sales cycle for the fleet market and I wonder within your organization.

I just want to touch on a couple of things, and I apologize if you touched on this earlier, but I was curious if you could talk about the sales cycle for the fleet market, and I wonder, within your organization, is there a dedicated group or team that has that as its primary focus, or is it essentially within just the broader sales cycle?

Is there a good cause.

<unk> group a team that has that as his primary focus or is it essentially within just the broader sales effort.

You know it is the we do have a dedicated team we have a dedicated fleet BD team and and many of them are in long Beach right now at the at the Act conference, where everybody who does anything on sleep is on an annual basis and so the.

You know, we do have a dedicated team. We have a dedicated Fleet DVD team, and many of them are in longings right now at the ACTS conference, where everybody who does anything on Fleet is on an annual basis.

The sales cycle. It's a great question the sales cycle tends to be a bit longer for a couple of reasons. One is that the fleets themselves have not been able to access E. V. So they've been kind of citizen. They had you know until kind of maybe six to nine months ago, and they kind of sitting on the sideline, saying well I'm not going to worry about infrastructure until I get my vehicles. They now.

The sales cycle, it's a great question, the sales cycle...

tends to be a bit longer for a couple reasons. One is that the fleets themselves have not been able to access EVs. So they've been kind of sitting, they had, you know, until kind of maybe six to nine months ago, and they're kind of sitting on the sidelines saying, well, I'm not going to worry about infrastructure until I get my vehicles.

I have had the aha realization that they need to be planning. These things concurrently what most of them are doing is they're doing either small pilots or they're doing rfps. So we you know E. V. Go has been very very busy over the past few months responding to rfps and that process is a multi month process to get responses. So we've got law.

They now have had the aha realization that they need to be planning these things concurrently.

What most of them are doing is they're doing either small pilots or they're doing RFP. So, you know, EVGO has been...

Very, very busy over the past few months responding to RFPs and that process is a multi-month sort of process to get responses. So we've got lots and lots and lots of irons in the fire and as soon as something happens, we're, you know, we'll be excited to tell you about it, but I can tell you that the reception that we are receiving.

Lots and lots and lots of irons in the fire and as soon as something happens where you know we'll be excited to tell you about it but I can tell you that the the reception that we are receiving from a combination of R. E. D. E V go Optima software when we demo it for fleets and Windows suite providers come and visit our innovation lab in El Segundo, which is L. A S.

from a combination of our EVO Optimus software when we demo it, for please, and when those fleet providers come and visit our innovation lab in El Segundo, which is kind of new at LAX, that, you know, as I said, really, really, really well received. Our expertise at

That you know as I said really really really well received our expertise at operating a public network where are our financial success is predicated on making sure that it's up and running is standing us in good stead with lead providers as they consider who they want to partner with them on their own in their own fleet operations and electrifying.

operating a public network where our financial success is predicated on making sure that it's up and running, is standing us in good stead with these providers as they consider who they want to partner with in their own fleet operations and electrifying.

Great, Thanks, and I wanted to turn to the.

Great. Thanks. And I wanted to turn to the big pile of money that is the Federal Infrastructure Bill. And I've been hearing a little bit here and there about the process. I guess the rules have gone out to the states that they can then use to sort of come up with their own sort of allocation.

Big pile of money that is the are the federal infrastructure, Bill and I've been hearing a little bit here and there about the process.

I guess the rules have gone out to.

To the states that you could then use to sort of come up with their own sort of allocation and distribution criteria.

criteria. Could you talk about that? I'm just curious if in your own modeling you you serve the vision of a time horizon when that funding will will actively be in place?

Could you talk about that and I'm just curious if I'm in your own modeling you you sort of envision the time horizon.

Funding will actively be in play.

Yeah. So so we we we even go helped you know we use our experience and liaising with the federal government before they should those guidelines that came out in March. So we felt you know we felt like the general guidelines issued by the federal government and their guidelines are not rules per state guidelines to give to the states.

Yeah, so we either go help

we used our experience in liaising with the federal government before it issued those guidelines that came out in March. So we felt, you know, we felt like the general guidelines that were issued by the federal government, again, they're guidelines, they're not rules per se, they're guidelines to give to the states, was pretty well informed. What we're now doing is we're liaising with the states as they develop their more detailed program design.

We're pretty well informed of what we're now doing is we're liaising with the states as they develop their more detailed program design and and again, our our our team our market development and public policy team is feeling pretty confident that this that most of the states are looking at what happens in the real world and what will bode well for success of electrifying transportation. So.

And again, our team, our market development and public policy team, is feeling pretty confident that most of the states are looking at what happens in the real world and what will bode well for success of electrifying transportation. So, you know, we're fingers crossed thinking that these program designs that are going to come to the states are going to be, you know, pretty grounded in what's going to be successful. So that's the good news. On the timing.

Well you know were fingers crossed thinking that these program designs that are going to come from the states are going to be you know pretty pretty pretty grounded in what was what's going to be successful, but that's that's the good news on the timing again, we talked a little bit about this earlier in the call. We don't expect that the money will shake loose them until the end of this calendar year.

Again, we talked a little bit about this earlier in the call. We don't expect that the money will shake loose.

until the end of this calendar year at the earliest. And so, you know, we haven't modeled that we're going to get anything before that time anyway. So what you see in our guidance is not predicated on accessing that federal money to the extent that there are existing grant programs at the state and with utilities that we know about, that we have access to, that are included in what our plans are for this year. But the federal government money when it flows is upside.

At the earliest and so you know we haven't we haven't we haven't modeled that we're going to get anything like it.

For that time anyway, so so where what you see in our guidance is not predicated on accessing that federal money to the extent there are existing grant programs at the state and with utilities, but we know about that we have access to them that are included and what our plans are for this year, but the federal government money when it flows as upside.

Okay, great. Thanks, a lot.

Sure.

We have reached the end of the question and answer session and this concludes today's conference you may disconnect. Your lines at this time and we thank you for your participation.

We have reached the end of the question and answer session, and this concludes today's conference. You may disconnect your lines at this time, and we thank you for your participation.

Thank you.

Okay.

Okay.