Q4 2022 EVgo Inc Earnings Call

Speaker 2: Good day and welcome to the EVgo fourth quarter and full year 2022 earnings call. Today's call is being recorded. I would now like to turn the call over to Heather Davis, Vice President of Investor Relations. Please go ahead. Heather did not mechanism.

Heather Davis: Hi, everyone, and welcome to EVgo's Q4 and full year 2022 Earnings Call. My name is Heather Davis, and I am the head of investor relations at EVgo. Joining me on today's call are Cathy Zoi, EVgo's Chief Executive Officer, and Olga Shevorenkova, the company's Chief Financial Officer. Jonathan Levy, EVgo's Chief Commercial Officer, will join us for the Q&A portion of the call. Today, we will be discussing EVgo's financial results for the Q4 and full year 2022, an initial outlook for 2023, followed by a Q&A session. Today's call is being webcast and can be accessed on the investor section of our website at investors.evgo.com. The call will be archived and available there, along with the company's earnings release and investor presentation after the conclusion of this call.

Speaker 2: Hi everyone and welcome to EVgo's fourth quarter and full year 2022 earnings call. My name is Heather Davis and I am the head of investor relations at EVgo.

Speaker 2: Joining me on today's call are Kathy Zoe, EVgo's Chief Executive Officer, and Olga Shevronkova, the company's Chief Financial Officer.

Speaker 2: Jonathan Levy, EVgo's Chief Commercial Officer, will join us for the Q&A portion of the call.

Speaker 2: Today, we will be discussing EVgo's financial results for the fourth quarter and full year 2022 and initial outlook for 2023 followed by a Q&A session.

Speaker 2: Today's call is being webcast and can be accessed on the investor section of our website at investors.evgo.com.

Speaker 2: The call will be archived and available there along with the company's earnings release and investor presentation after the conclusion of this call.

Heather Davis: During the call, management will be making forward-looking statements that are subject to risks and uncertainties, including expectations about future performance. Factors that could cause actual results to differ materially from our expectations are detailed in our SEC filings, including in the risk factor section of our most recent annual report on Form 10-K. The company's SEC filings are available on the investor section of our website. These forward-looking statements apply as of today, and we undertake no obligation to update these statements after the call. Also, please note that we will be referring to certain non-GAAP financial measures on this call. Information about these non-GAAP measures, including a reconciliation to the corresponding GAAP measures, can be found in the earnings materials available on the investor section of our website. With that, I'll turn the call over to Cathy Zoi, EVgo's CEO.

Speaker 2: During the call, management will be making forward-looking statements that are subject to risks and uncertainties, including expectations about future performance.

Speaker 2: Factors that could cause actual results to differ materially from our expectations are detailed in our SEC filings, including in the Risk Factor section of our most recent annual report on Form 10-K . The company's SEC filings are available on the...

Speaker 2: to certain non-GAAP financial measures on this call.

Speaker 2: Information about these non-GAAP measures, including a reconciliation to the corresponding GAAP measures, can be found in the earnings materials available on the investor section of our website. For more information, visit GAAP.gov

Cathy Zoi: Hello, everyone, thank you for joining today. EVgo achieved record revenue in 2022, reflecting the continued growth of our ultrafast DC charging network, our blue ribbon partnerships, and our industry-leading technology offerings. In our first full year as a public company, revenue and adjusted EBITDA were at the high end of our guidance range. This accomplishment is something I'd like to thank the entire EVgo team for. We look forward to continuing to grow and deliver in 2023. On today's call, I'll focus on a few themes from the year that we see as the building blocks to EVgo's long-term opportunity. One, growth, two, execution, and three, innovation. Starting with growth, a foundational element to the EVgo investment story. When we look back, we may view 2022 as a pivotal turning point in the electrification of America's transportation sector.

Speaker 2: With that, I'll turn the call over to Kathy Azoy, EVgo's CEO .

Speaker 3: Hello everyone and thank you for joining today.

Speaker 3: EVgo achieved record revenue in 2022, reflecting the continued growth of our ultra-fast DC charging network, our blue ribbon partnerships, and our industry leading technology offering.

Speaker 3: In our first full year as a public company, revenue and adjusted EBITDA were at the high end of our guidance range.

Speaker 3: This accomplishment is something I'd like to thank the entire EVgo team for.

Speaker 3: We look forward to continuing to grow and deliver in 2023.

Speaker 3: On today's call, I'll focus on a few themes from the year that we see as the building blocks to EVGo's long-term opportunities. One, growth. Two, execution. And three, innovation.

Speaker 3: Starting with growth, a foundational element to the EVgo investment story.

Speaker 3: When we look back, we may view 2022 as a pivotal turning point in the electrification of America's transportation sector. Everywhere you look, whether it's sales trends, OEM investments, government initiatives, or even Super Bowl ads on TV, we're seeing a fundamental shift in our country's attitude toward electric vehicles.

Cathy Zoi: Everywhere you look, whether it's sales trends, OEM investments, government initiatives, or even Super Bowl ads on TV, we're seeing a fundamental shift in our country's attitude toward electric vehicles. If you've listened to one of our calls before, you know how passionate I am about the electrification of transportation in the US. We see data point after data point that confirms the market is rapidly accelerating. In 2022, there were more than 800,000 fully electric vehicles sold in the US, an increase of over 70% from 2021, according to Cox Automotive. Battery electric vehicle sales accounted for nearly 6% of all vehicles sold, up from 3% in 2021. This growth occurred despite an overall declining market, with US auto sales overall falling by 8% in 2022. This growth is beginning to accelerate, too.

Speaker 3: If you've listened to one of our calls before, you know how passionate I am about the electrification of transportation in the US. We see data point after data point that confirms the market is rapidly accelerating.

Speaker 3: In 2022, there were more than 800,000 fully electric vehicles sold in the U.S., an increase of over 70% from 2021, according to Cox Automotive.

Speaker 3: Battery electric vehicle sales accounted for nearly 6% of all vehicles sold, up from 3% in 2021.

Speaker 3: And this growth occurred despite an overall declining market with US auto sales overall falling by 8% in 2022.

Cathy Zoi: BEV sales increased by 72% year-over-year in Q4, most forecasts expect the US to easily eclipse the million battery electric vehicles sold figure in 2023, an exciting milestone. EV sales should only continue to grow as automakers are set to introduce dozens of new models by the end of 2024, including a number of more affordable options, as well as models with longer ranges and faster charging rates. A Reuters estimate last Q noted the world's top automakers are planning to spend approximately $1.2 trillion through 2030 to develop and produce millions of EVs, EV batteries, and the raw materials used in their production. This estimate is 2x what Reuters had previously calculated just a year earlier.

Speaker 3: This growth is beginning to accelerate, too. BEV sales increase by 72% year-over-year in the fourth quarter, and most forecasts expect the U.S. to easily eclipse the million battery electric vehicles sold figure in 2023, an exciting milestone.

Speaker 3: And EV sales should only continue to grow, as automakers are set to introduce dozens of new models by the end of 2024, including a number of more affordable options, as well as models with longer ranges and faster charging rates.

Speaker 3: A Reuters estimate last quarter noted that world's top automakers are planning to spend approximately $1.2 trillion through 2030 to develop and produce millions of EVs, EV batteries, and the raw materials used in their production.

Speaker 3: This estimate is 2x what Reuters had previously calculated just a year earlier.

Cathy Zoi: This is an astonishing, once in a lifetime type of investment, and we believe EVgo will be positioned to capture outsized throughput growth on our network as more and more cars hit the road. Notably, California, our top market, continues to lead the way. The state announced that 19% of all new cars sold in California were EVs, compared to the 6% for the entire country. California's leading position is reflected in our own growth, with kilowatt-hour throughput continuing to rise rapidly across our charging network here. We're also seeing strong growth in many other markets, including Florida, Texas, Washington, and New York. Another exciting aspect of all this growth is how EVs are drawing younger consumers into the fold, who are both environmentally conscious and also tech savvy, ideal EVgo customers.

This is an astonishing once-in-a-lifetime type of investment, and we believe EVgo will be positioned to capture outsized throughput growth on our network as more and more cars hit the road.

Notably, California, our top market, continues to lead the way.

The state announced that 19% of all new cars sold in California were EVs compared to the 6% for the entire country.

California's leading position is reflected in our own growth, with kilowatt-hour throughput continuing to rise rapidly across our charging network here.

We're also seeing strong growth in many other markets including Florida, Texas, Washington, New York.

Another exciting aspect of all this growth is how EVs are drawing younger consumers into the fold, who are both environmentally conscious and also tech-savvy, ideal EVgo customers.

Cathy Zoi: An IHS Markit survey indicated that through the first 9 months of 2022, 44% of all EV buyers were under 45, a substantial increase from the 35% of buyers from this age group for all new vehicles purchased over the same period. Given these trends, it's no wonder that virtually every automaker is investing in new EV models, which should help them attract loyal consumers for their brands for decades to come. It's also why we've invested so heavily in building out the best and most reliable fast charging network. We believe this growth, fueled by technology-enabled innovation, will continue to be our focus in 2023 and beyond. To build and operate the best network in the US and ensure both environmental and financial sustainability, we invest only in charging solutions that we expect to deliver our targeted financial returns.

An IHS market survey indicated that through the first nine months of 2022, 44% of all EV buyers were under 45, a substantial increase in the 35% of buyers from this age group for all new vehicles purchased over the same period.

Given these trends, it's no wonder that virtually every automaker is investing in new EV models, which has helped them attract loyal consumers for their brands for decades to come.

And it's also why we've invested so heavily in building out the best and most reliable fast charging network.

We believe this growth, fueled by technology-enabled innovation, will continue to be our focus in 2023 and beyond.

and to build and operate the best network in the US and ensure both environmental and financial sustainability, we invest only in charging solutions that we expect to deliver our targeted financial returns.

Cathy Zoi: We believe this approach will deliver substantial growth and value for our investors as EV adoption continues to accelerate across the US. The themes of growth and execution were consistent across our results in 2022. EVgo increased stalls in operation or under construction to over 2,800 at the end of the year, growing 47%. For the full year 2022, we energized nearly 670 new stalls on our network, a 131% increase from 2021. We delivered nearly $55 million in revenue for the year at the high end of our guidance, representing year over year revenue growth of 146%. Full year network throughput was 44.6 gigawatt hours, an increase of 69% from 2021. We're seeing rapid growth well beyond California, with utilization topping 10% in markets such as Austin, Las Vegas, and West Palm Beach.

We believe this approach will deliver substantial growth and value for our investors as EV adoption continues to accelerate across the US.

The themes of growth and execution were consistent across our results in 2022. UbiGo increased stalls in operation or under construction to over 2,800 at the end of the year, growing 47%.

For the full year 2022, we energized nearly 670 new stalls on our network, a 131% increase from 2021. We delivered nearly $55 million in revenue for the year at the high end of our guidance, representing year-over-year revenue growth of 146%.

Full year network throughput was 44.6 GWh and an increase of 69% from 2021.

We're seeing rapid growth well beyond California, with utilization topping 10% in markets such as Austin, Las Vegas, and West Palm Beach.

Cathy Zoi: In 2022, we continued to expand EVgo's suite of innovative business partnerships, where we work with automakers, retailers, and fleet operators to develop new solutions and products to meet evolving needs in this young sector. General Motors remains one of our most important partners, with GM and EVgo now working together on urban public charging on highway corridors, workplace charging, fleet solutions, and in tech-enabled services. EVgo has made tremendous progress on the EVgo-owned urban charging program set to build 3,250 high-powered DC fast charging stalls over the next few years. That partnership has now deployed ultra-fast 350kW charging stations on EVgo's network in 35 metropolitan markets across 22 states.

In 2022, we continue to expand EVgo's suite of innovative business partnerships, where we work with automakers, retailers, and fleet operators to develop new solutions and products to meet evolving needs in this young sector.

General Motors remains one of our most important partners, with GM and EVgo now working together on urban public charging, charging on highway corridors, workplace charging, fleet solutions, and in tech-enabled services.

EVgo has made tremendous progress on the EVgo-owned urban charging program set to build 3,250 high-powered DC fast charging cells over the next few years.

That partnership has now deployed ultra-fast 350-kilowatt charging stations on EVgo's network in 35 metropolitan markets across 22 states.

Cathy Zoi: Building on this success, EVgo continued to deepen our relationship with GM by launching a collaboration with GM and Pilot Company, agreeing to deploy up to 2,000 charging stalls at around 500 Pilot and Flying J locations across the US. With 78% of the continental US interstate system within 10 miles of a Pilot or Flying J, we see incredible potential for this project, which is part of the EVgo eXtend business. These future stations are also well-aligned with the priorities of the federal government's National Electric Vehicle Infrastructure, or NEVI program, deploying $5 billion to build out a nationwide charging network, starting with interstate corridor sites. I'll share more on NEVI later.

Building on this success, Easygo continued to deepen our relationship with GM by launching a collaboration with GM and Pilot company, agreeing to deploy up to 2,000 charging cells at around 500 Pilot and Flying J locations across the U.S.

With 78% of the continental U.S. interstate system within 10 miles of a pilot or flying J, we see incredible potential for this project, which is part of the EVGo extend business.

These future stations are also well aligned with the priorities of the federal government's National Electric Vehicle Initiative, or NEVI, program, deploying $5 billion to build out a nationwide charging network, starting with interstate corridor sites.

Cathy Zoi: blue ribbon OEM partnerships are a key pillar of our retail growth strategy. 2022 was a banner year for EVgo as we secured multiple new agreements with leading automakers for EVgo Inside integration, charging credit programs, and more. In addition to our foundational partnerships with GM and Nissan, EVgo entered into a commercial agreement with Subaru to provide drivers of the 2023 Solterra EV SUV with the option to receive a $400 charging credit on the EVgo public fast-charging network. EVgo also announced a commercial agreement with Toyota to provide drivers of the new Toyota bZ4X battery electric SUV with one year of complimentary charging on EVgo's nationwide network. Continuing our partnership with GM, EVgo commenced a commercial agreement to offer drivers of the 2023 Cadillac LYRIQ the option of two years of unlimited public fast charging on our network.

I'll share more on NEBI later. Blue Chip OEM partnerships are a key pillar of our retail growth strategy, and 2022 was a banner year for EVgo as we secured multiple new agreements with leading automakers for EVgo inside integration, charging credit programs, and more.

In addition to our foundational partnerships with GM and Nissan, EVgo entered into a commercial agreement with Subaru to provide drivers of the 2023 Solterra EV SUV with the option to receive a $400 charging credit on the EVgo public fast charging network.

EVgo also announced a commercial agreement with Toyota to provide drivers of the new Toyota BZ4X battery electric SUV with one year of complimentary charging on EVgo's nationwide network.

Continuing our partnership with GM, EVgo commenced a commercial agreement to offer drivers of the 2023 Cadillac lyrics the option of two years of unlimited public fast charging on our network.

Cathy Zoi: In December, we announced the launch of a new B2C charging discount program for rideshare drivers on the Lyft platform. This expansion of EVgo and Lyft collaboration demonstrates our shared commitment to achieving mass EV adoption and increases access to convenient, fast-charging infrastructure for rideshare drivers. This also applies to our Uber partnership, which continued to grow in 2022, with new in-app technical and marketing collaborations helping drive increased throughput on EVgo's network. On the fleet side, EVgo continues to work with large operators of delivery fleets as they undertake their first products to get to know the EV space. We signed a new behind-the-fence agreement with a large national food and beverage company in Q4, through which EVgo will install and manage private charging stalls for the company's fleet.

In December , we announced the launch of a new B2C charging discount program for Rideshare drivers on the Lyft platform. This expansion of EVgo and Lyft collaboration demonstrates our shared commitment to achieving mass EV adoption and increases access to convenient fast charging infrastructure for Rideshare drivers.

This also applies to our Uber partnership, which continued to grow in 2022, with new in-app technical and marketing collaborations helping drive increased throughput on EVgo's network.

On the fleet side, EVgo continues to work with large operators and delivery fleets as they undertake their first product to get to know the EV face.

We signed a new behind-the-fence agreement with a large national food and beverage company in the fourth quarter, through which EVgo will install and manage private charging stalls for the company's fleet.

Cathy Zoi: Earlier in 2022, we signed an agreement with MHX Solutions, representing our first EVgo Optima deployment for a Class 8 truck fleet. EVgo has continued to expand our fleet business with the January 2023 signing of a significant new agreement with an existing autonomous vehicle partner. The hubs business at EVgo was a core part of our fleet strategy, with sustained interest from our existing AV partners and other fleets needing access to dedicated charging away from their own depots. While it's still early days, we are excited to have EVgo's fleet business grow alongside the EV investment fleet operators are making as more vehicles become available to them. This growth is a testament to the team at EVgo. We've been delivering on EVgo's growth plans and our partners' growth plans as we attract and retain employees who want to work for a mission-driven company.

Earlier in 2022, we signed an agreement with MHX Solutions, representing our first EVgo-optimized deployment for a Class 8 truck fleet.

And EVgo has continued to expand our fleet business with the January 2023 signing of a significant new agreement with an existing autonomous vehicle partner.

The Hub's business at EVgo was a core part of our fleet strategy, with sustained interest from our existing AV partners and other fleets needing access to dedicated charging away from their own depot.

While it's still early days, we're excited to have EVgo's fleet business grow alongside the EV investment fleet operators are making as more vehicles become available to them.

This growth is a testament to the team at EVgo. We've been delivering on EVgo's growth plans and our partners' growth plans since we attract and retain employees who want to work for a mission-driven company.

Cathy Zoi: Similarly, our relationships with suppliers have enabled us to have charging equipment available even with disruptions other companies have seen in their supply chains. EVgo's slate of blue ribbon partnerships is closely related to our commitment to creation of a first-class driver experience. That starts with reliability and continuous improvement of the EVgo network. As a leader in public charging since 2010, we continually assess our network and determine where investments can help meet and exceed our customers' expectations for ultra-fast charging today and in the coming years. Under our comprehensive maintenance and reliability program, which we formally launched as EVgo ReNew, we upgraded over 100 stalls and retired approximately 160 stalls in 2022. Last year, we largely focused on our legacy 50 kilowatt chargers. EVgo ReNew is not a one and done effort.

Similarly, our relationships with suppliers have enabled us to have charging equipment available even with disruptions other companies have seen in their supply chains.

EVgo's slate of Blue Ribbon Partnerships is closely related to our commitment to creation of a first-class driver experience.

That starts with reliability and continuous improvement of the EZ-GO network.

As a leader in public charging since 2010, we continually assess our network and determine where investments can help meet and exceed our customers' expectations for ultra-fast charging today and in the coming years.

Under our Comprehensive Maintenance and Reliability Program, which we formally launched as EZ-GO-Renew, we upgraded over 100 stalls and retired approximately 160 stalls in 2022.

Last year we largely focused on our legacy 50 kilowatt chargers.

Cathy Zoi: We continue to evaluate sites for upgrading based on charger performance, available power at the site, driver demand, and EV growth projections for that geography. Turning to innovation. Innovation is baked into everything EVgo does, as you can tell from the technology undergirding the commercial agreements I've already mentioned. As another example, we recently announced an agreement with Amazon to support an Alexa-enabled EV charging experience. EVgo is Amazon's first charging network partner in the US for this collaboration, which will allow drivers to ask Alexa to help them find and navigate to nearby EV charging stations and seamlessly initiate and pay for charging sessions at EVgo stations. This charging experience will leverage both PlugShare and EVgo Inside. Our partnership with Amazon is an example of how we leverage EVgo Inside API technology to integrate into commercially branded apps.

The EVgo Renew is not a one-and-done effort. We continue to evaluate sites for upgrading based on charger performance, available power at the site, driver demand, and EV growth projections for that geography.

Turning to innovation.

Innovation is baked into everything EVgo does, as you can tell from the technology undergirding the commercial agreements I've already mentioned.

As another example, we recently announced an agreement with Amazon to support an Alexa-enabled EV charging experience.

EVgo is Amazon's first charging network partner in the US for this collaboration, which will allow drivers to ask Alexa to help them find and navigate to nearby EV charging stations and seamlessly initiate and pay for charging sessions at EVgo stations.

This charging experience will leverage both PlugShare and EVgo inside.

Our partnership with Amazon is an example of how we leverage EVgo inside API technology to integrate into commercially branded apps.

Cathy Zoi: This approach provides third parties with the ability to offer customers the EVgo charging experience without needing to switch between apps. In addition to Amazon, we have leveraged the EVgo Inside APIs with Toyota, Lyft, and Uber, among others. Another EVgo innovation, AutoCharge+, initially launched with GM this year and is now available on the EVgo network for more than 20 EV models, a number that includes Teslas using the CCS adapter. AutoCharge+ offers a seamless plug, charge, and go experience for EV drivers with more and more sessions being initiated with AutoCharge+ on the network every month. With PlugShare, which is the Yelp app for EV charging that EVgo purchased in 2021, we now have more than three million registered users worldwide, and we continue to adapt and innovate the technology to better serve EV drivers.

This approach provides third parties with the ability to offer customers the EVGo charging experience without needing to switch between apps.

In addition to Amazon, we have leveraged the EVgo Inside APIs with Toyota, Lyft, and Uber, among others.

Another EVgo innovation, Auto Charge Plus, initially launched with GM this year and is now available on the EVgo network for more than 20 EV models, a number that includes press loads using the CCS adapter.

Auto Charge Plus offers a seamless plug, charge, and go experience for EV drivers with more and more sessions being initiated with Auto Charge Plus on the network every month.

with ClubShare, which is a Yelp app for EV charging that EVgo purchased in 2021.

We now have more than 3 million registered users worldwide, and we continue to adapt and innovate the technology to better serve EV drivers.

Cathy Zoi: Last year, we enhanced the PlugShare platform with Pay with PlugShare and PlugShare Premium. To leverage the platform's unique user base and monetize its broad reach, we also launched direct and indirect advertising on PlugShare. PlugShare is a great resource for companies who want to understand driver behavior in the emerging EV market. The analytics PlugShare can provide on a fee-for-service basis are important to a variety of players in the EV ecosystem, as well as to our own operations. Our EVgo Innovation Lab is a go-to for automakers developing new EVs and manufacturers developing new equipment to charge those EVs. In addition to a principal EVgo lab in El Segundo, California, we also have three testing locations set up at OEM facilities. This distributed approach enables automakers to test vehicles much earlier in the development cycle, sometimes even before a prototype has been officially released.

Last year, we enhanced the PlugShare platform with Pay with PlugShare and PlugShare Premium. To leverage the platform's unique user base and monetize its broad reach, we also launched direct and indirect advertising on PlugShare.

Further, PlugShare is a great resource for companies who want to understand driver behavior in the emerging EV market. The analytics PlugShare can provide on a fee-for-service basis are important to a variety of players in the EV ecosystem, as well as to our own operations.

Our EVgo Innovation Lab is a go-to for automakers developing new EVs and manufacturers developing new equipment to charge those EVs.

In fact, in addition to a principal EZGO lab in El Cagundo, California,

We also have three testing locations set up at OEM facilities. This distributed approach enables automakers to test vehicles much earlier in the development cycle, sometimes even before a prototype has been officially released.

Cathy Zoi: EVgo retains access to the testing software and remotely manages the testing in support of the OEM's design and commercialization process. With a relentless focus on customer experience, we enhanced the EVgo mobile app to enable more sophisticated charging session diagnostics to help us better serve our customers into the future. The app is gaining traction with EV drivers. In 2022, we more than doubled the monthly average app users and app-initiated charging sessions. Now on policy. We also want to provide a quick update on the National Electric Vehicle Infrastructure Program, or NEVI, and other government initiatives. Policy continues to provide an important tailwind, not just for EVgo, but the whole sector. A couple of highlights for 2022 and looking forward.

EVgo retains access to the testing software and remotely manages the testing in support of the OEM's design and commercialization process.

And with a relentless focus on customer experience, we enhanced the EVgo mobile app to enable more sophisticated charging session diagnostics to help us better serve our customers into the future.

And the app is gaining traction with EV drivers. In 2022, we more than doubled the monthly average app users and app-initiated charging sessions.

And now on policy, we also want to provide a quick update on the National Electric Vehicle Infrastructure Program, or NEVI, and other government initiatives.

Policy continues to provide an important tailwind, not just for EVgo, but the whole sector.

Cathy Zoi: Last year was a very active year in terms of utility proceedings, with outcomes in states such as California, Colorado, and Georgia yielding material electricity savings for EVgo's owned and operated business. Similarly, prior legislative interventions in Illinois, New York, and Massachusetts led to state regulatory proceedings that are expected to yield multimillion-dollar benefits to EVgo's business, both in incentives and in electricity savings. As we work to accelerate that 12 to 18-month charger deployment timeframe for the whole industry, utilities and local permitting authorities continue to be important partners. In January 2023, EVgo announced the first Connect the Watts Charging Heroes. Overall, Charging Heroes include utilities National Grid and PSEG, site hosts like CBL and ShopCore, and contractors like Owl and WB Engineering. These companies are all in on the roles they are key to playing in transportation electrification. Timeframes are unfortunately not accelerating across the board, though.

A couple of highlights for 2022 and looking forward.

Last year was a very active year in terms of utility proceedings, with outcomes in states such as California, Colorado, and Georgia yielding material electricity savings for EVgo's owned and operated business.

Similarly, prior legislative interventions in Illinois, New York, and Massachusetts led to state regulatory proceedings that are expected to yield multi-million dollar benefits to EDGO's business-spoiling incentives and an electricity savings.

As we work to accelerate that 12 to 18 month charger deployment timeframe for the whole industry, utilities and local permitting authorities continue to be important partners.

In January 2023, EVgo announced the first Connect the Watts charging heroes.

In all world charging heroes include utilities National Grid and PSEng, site hosts like CDL Shop Core and contractors like OWL and WB Engineering.

These companies are all in on the role they are key to playing in transportation electrification.

Cathy Zoi: With respect to utility processes, I would note that we and our peers are seeing some utility timelines get longer rather than shorter, arising from delays on transformer procurements, as well as from competing utility priorities of grid management and system upgrades. EVgo will continue to work collaboratively with utilities and be helpful where we can in reducing bottlenecks in their processes. With implementation of the Bipartisan Infrastructure Law and Inflation Reduction Act underway, $ billions of incentive funding are poised to accelerate EV charging deployment and EV adoption overall. The IRA contained an expansion and extension of 30C, the Alternative Refueling Property Tax Credit. With a new transferability provision, that should make it easier for companies like EVgo without federal tax liability to monetize the value of the credit.

Timeframes are unfortunately not accelerating across the board though. With respect to utility processes, I would note that we and our peers are seeing some utility timelines get longer rather than shorter, arising from delays on transformer procurements as well as from competing utility priorities of grid management and system upgrades. EDGO will continue to work collaboratively with utilities and be helpful where we can.

With a new transferability provision, that should make it easier for companies like EVgo without federal tax liability to monetize the value of the credit.

Cathy Zoi: The IRA also revised the consumer EV tax credit under 30D, as well as first-time tax credits for used and commercial EV sales under 25E and 45W, respectively. On the Bipartisan Infrastructure Law, the Federal Highway Administration finally issued a final minimum technical standards early in 2023 for the $5 billion in NEVI formula funds flowing through state DOTs to build out charging infrastructure across priority corridors and other projects. I would caution, however, that there are some critical details that will influence how quickly those funds actually impact outcomes for every charging company pursuing federal incentives. For 30C, the tax credit has geographic restrictions tied to certain census tracts and particular labor requirements related to the availability of apprenticeship programs or other factors. For 30D, there are critical materials and domestic content requirements that have limited the applicability of the full tax credit for many EVs.

The IRA also revised the consumer EV tax credit under 30D, as well as first-time tax credits for used and commercial EV sales under 25E and 45W, respectively.

On the bipartisan infrastructure law, the Federal Highway Administration finally issued a final minimum technical standards early in 2023 for the $5 billion in neti formula funds flowing through state DOTs to build out charging infrastructure across priority corridors and other projects. I would caution, however, that there are some critical details that will influence how quickly those funds are being used.

Cathy Zoi: For the NEVI funding, there are actually 50-plus different programs, with each state having an approved plan and wide discretion on processes, timelines, and program specifics. At this point, most states are already behind the originally anticipated schedule for funding awards, given the delay in final technical standards being promulgated. EVgo continues to engage directly with state DOTs to reduce friction and avoid further delays on the time to deploy charging, but notes that the funds have still not begun to flow from the states to charging project partners. The recently finalized federal Buy America waiver for NEVI-funded projects will likely present significant near-term supply chain challenges as the whole EV charging industry works to onshore the production of EV chargers, especially 350 kW fast chargers.

and domestic content requirements that have limited the applicability of the full tax credit for many EZs.

And for the NEVY funding, there are actually 50 plus different programs, with each state having an approved plan and wide discussion on processes, timelines, and program specifics.

At this point, most states are already behind the originally anticipated schedule for funding awards given the delay in final technical standards being promulgated.

EVO continues to engage directly with state DOTs to reduce friction and avoid further delays on the time to deploy charging, but notes that the funds have still not begun to flow from the states to charging project partners.

And the recently finalized federal Buy America waiver for NEDI funded projects will likely present significant near-term supply chain challenges as the whole EV charging industry works to onshore the production of EV chargers, especially 350 kilowatt fast chargers. While EVgo wholeheartedly supports the goals of...

Cathy Zoi: While EVgo wholeheartedly supports the goals of Buy America and has been working with our suppliers on their onshoring strategies for many months, the reality is that a meaningful domestic supply chain comprised of numerous manufacturing and assembly facilities will take time to be able to produce at scale. Across the sector, we anticipate delays from contracting to installation for most applicants as this supply chain ramps. The upshot is that due to equipment supply uncertainty, recipients of NEVI funds under the currently crafted Buy America rules may see potential 2023 projects shift to 2024.Notwithstanding the potential near-term delays arising from new government requirements, the trend line is up and to the right. The opportunity ahead of EVgo to build state-of-the-art charging infrastructure that meets our rigorous financial criteria remains vast.

from contracting to installation for most applicants as the supply chain ramps.

The upshot is that due to equipment supply uncertainty, recipients of NEVI funds under the currently crafted Buy America rules may see potential 2023 projects shift to 2024.

But, notwithstanding the potential near-term delays arising from new government requirements, the trend line is up and to the right.

The opportunity ahead of EVgo to build state-of-the-art charging infrastructure that meets our rigorous financial criteria remains vast. As Oda will describe, in 2023 we expect to continue our site development and revenue growth to deliver financial results that capitalize on the accelerating electrification needs of the transportation sector. With that, I'll turn the call over to EVgo's CFO to talk about our 2022 results.

Cathy Zoi: As Olga described, in 2023, we expect to continue our site development and revenue growth to deliver financial results that capitalize on the accelerating electrification needs of the transportation sector. With that, I'll turn the call over to EVgo's CFO to talk about our 2022 results and our guidance for 2023.

Olga Shevorenkova: Thank you. EVgo end of the year with strong growth momentum as we continued to rapidly build out our network and execute on our contracts. I will first cover results for Q4 and then for the full year of 2022. EVgo's active engineering and construction stall development pipeline grew by 29% in 2022 versus 2021, ending the year at approximately 4,000 stalls. EVgo added over 180 new stalls to our network during the quarter, and stalls in operation or under construction were over 2,800 at quarter end. Q4 revenue of $27.3 million grew 283% year-over-year. This substantial increase was driven by increased retail charging revenue and continued execution of our EVgo eXtend contract with Pilot Flying J in partnership with General Motors. Under this multi-hundred million dollar multi-year contract, we recognize revenue in four phases for every site.

and our guidance for 2023.

Thank you. If you go end of the year with strong growth momentum as we continue to rapidly build out our network and execute on our contract.

I will first cover results for the fourth quarter and then for the full year of 2022. EZGON's active engineering and construction stall development pipeline grew by 29% in 2022 versus 2021 and in the year at approximately 4,000 stalls.

IZGO added over 180 new stalls to our network during the quarter, and stalls in operation or under construction were over 2,800 at quarter-end. Last quarter revenue of $27.3 million.

We are 283% year over year.

This substantial increase was driven by increased retail charging revenue and continued execution of our EVgo Xtend contract with Pilot Flying J in partnership with General Motors.

Under this multi-hundred million dollar multi-year contract,

Olga Shevorenkova: The first one, pre-engineering work is done on site. The second one, charging equipment delivery. Revenue is recognized when charging equipment changes title upon arrival at our facilities and subsequent payment by PFJ. The third one, construction. Revenue is recognized proportionally to work being done on the site. Finally, the fourth one, operational monthly fees once the site goes operational. In Q4, we accomplished certain pre-engineering work and took delivery of the first charging equipment shipment. Adjusted gross margin declined from 28.2% in Q4 2021 to 18.3% in Q4 2022 due to a decrease in the percentage contribution of regulatory credit sales to the revenue mix and the year-over-year reduction in LCFS prices. We reported adjusted EBITDA of -$20.1 million in Q4 2022 versus -$16.3 million in Q4 2021.

We recognize revenue in four phases for every site.

The first one, re-engineering work is done on site. The second one, charging equipment delivery.

Revenue is recognized when charging equipment changes title upon arrival at our facilities and subsequent payment by PFJ.

The third one, construction. Revenues recognized proportionally to work being done on the site.

And then finally the fourth one, operational monthly fees once the site goes operational. In the fourth quarter, we accomplished certain pre-engineering work and took delivery of the first charging equipment shipment.

Adjusted gross margin declined from 28.2% in Q4 2021 to 18.3% in Q4 2022 due to a decrease in the percentage contribution of regulatory credit sales to the revenue mix.

in the year-over-year reduction in LCFS prices. We reported adjusted EBITDA of negative $20.1 million in Q4 2022 versus negative $3 million in Q4 2021.

Olga Shevorenkova: Adjusted G&A as percent of revenue declined from 267% in Q4 2021 to 92% in Q4 2022, illustrating the leverage EVgo started realizing from its investments in G&A, both administrative and growth-driven payroll and non-payroll investments. CapEx was $66.4 million during Q4 as EVgo accelerated charger deployments and continued to execute against our long-term strategic plans. As a reminder, all our charging infrastructure deployments go through a rigorous underwriting process and pencil to our targeted financial returns. EVgo raised $10.4 million in net proceeds by issuing 1.6 million shares of Class A common stock during at the market equity offering in Q4. We anticipate using the ATM opportunistically going forward. Turning to our full year 2022 results. EVgo added nearly 670 new stalls to our network during the year versus approximately 290 added in 2021, an increase of 131%.

Adjusted GNA as percent of revenue declined from 257% in Q4 2021 to 92% in Q4 2022, illustrating the leverage EVgo started realizing from its investments in GNA. helps to automate the growth confidence and immuneuf ministries,

deployment, go through a rigorous underwriting process and pencil to our targeted financial return.

EVgo raised $10.4 million in net receipts by issuing 1.6 million shares of Class A common stock through an at-the-market equity offering in the fourth quarter. We anticipate using the ATM opportunistic...

Olga Shevorenkova: Stalls in operations or under construction were over 2,800 at year-end, with approximately 2,200 of those being operational. Customer accounts increased by 63% year-over-year, and year-over-year throughput growth of 69% exceeded year-over-year operational stall growth of 29%. 2022 revenue of $54.6 million grew an impressive 146% year-over-year, driven by an increase in retail charging revenue, EVgo eXtend revenue, primarily through execution of the Pilot Flying J contract, and the full year contribution of PlugShare revenue versus partial in 2021. Adjusted gross margin of 24.3% improved by 90 basis points over 2021, driven by accelerated LCFS credits in H1 2022 and the full year of contribution from the PlugShare acquisition. Full year adjusted EBITDA was -$80.2 million compared to -$51.4 million in 2021.

190 added in 2021, an increase of 131%.

Again.

Those in operation under construction were over 2,800 at year-end, with approximately 2,200 of those being operational. Customer accounts increased by 63% year-over-year and year-over-year throughput growth of 69%

exceeded year-over-year operational stall growth of 29%.

2022 revenue of $54.6 million grew an impressive 146% year-over-year.

driven by an increase in retail charging revenue, extend revenue primarily through execution of the TFJ contract, and the full year contribution of Black Share revenue versus partial in 2021.

Adjusted gross margin of 24.3% improved by 90 basis points over 2021, driven by accelerated LCFS credits in the first half of 2022 and the full year of contribution from the Pluxair acquisition. Thank you.

Full year adjusted EBITDA was negative $80.2 million compared to negative $51.4 million in 2021.

Olga Shevorenkova: Adjusted G&A as percent of revenue declined from 255% in 2021 to 171% in 2022, illustrating the leverage EVgo started realizing from its investments in G&A. We relentlessly look to optimize and leverage our investments in the company and remain agile in our cost structure as the industry growth projections evolve. In 2023, we are optimizing our G&A spend around charger pipeline growth and execution and delivering of contractual commitments. CapEx was $200.3 million in 2022, led by the new stall deployments and including $4.6 million of the new CapEx, $15.9 million of land purchases, and $14.3 million of capitalized payroll and non-payroll expenses. Turning to network trends on the year. As you may know, EVgo's revenue is leveraged to increasing EV adoption as greater number of EVs on the road help drive throughput and increase utilization at EVgo's fast chargers.

Adjusted GNA as percent of revenue declined from 255% in 2021 to 171% in 2022, illustrating the leverage IZGO started realizing.

from its investments in GNA. We relentlessly look to optimize and leverage our investments in the company and remain agile in our cost structure as the industry growth projections evolve. In 2023,

We are optimizing our G&A spend around charger pipeline growth and execution and delivering of contractual commitment.

CAPEX was $200.3 million in 2022, led by the new stall deployment and including $4.6 million of the new CAPEX, $15.9 million of land purchases, and $14.3 million of capitalized payroll and non-payroll expenses.

Turning to network trends in the year. As you may know, EVgo's revenue is leveraged to increasing EV adoption as greater number of EVs on the road help drive throughput and increase utilization at EVgo's fast charges. For the year 2022, EVgo's throughput growth across the world ranges as much aships. As the year goes on, statistical café is is well machCreate

Olga Shevorenkova: For the year 2022, EVgo's throughput growth significantly exceeded stall growth. Again, 69% growth for throughput versus 29% growth for operational stalls. EV sales continued to climb throughout the year, with over 2.2 million EVs in operation compared to 1.5 million in 2021, and we have observed increased utilization across our network. This was driven by an increase in retail throughput of 74% year over year, and fleet of 65% year over year. For fleet, rideshare partners continue to add EVs, leading to addition of high-frequency customers to EVgo's public network. EVgo's partnerships with autonomous vehicle companies are also positioning us to benefit from the emerging adoption of self-driving robotaxis and delivery services. We are also off to a great start in 2023, with average daily throughput volumes quarter to date in Q1 2023 approximately 20% higher than in the previous quarter, Q4 2022.

significantly exceeded stall growth. Again, 69% growth for throughput versus 29% growth for operational stalls.

EV sales continued to climb throughout the year with over 2.2 million EVs in operation compared to 1.5 million in 2021.

And we have observed increased utilization across our network.

This was driven by an increase in retail throughput of 74% year-over-year and sleep of 65% year-over-year.

For fleet, Rideshare partners continue to add EVs, leading to addition of high-frequency customers to EVgo's public network.

EVO's partnerships with autonomous vehicle companies are also positioning us to benefit from the emerging adoption of self-driving robotaxis and delivery services.

We are also off to a great start in 2023, with average daily throughput volumes quarter to date in Q1 2023, approximately 20% higher than in the previous quarter Q4 2022.

Olga Shevorenkova: As Cathy mentioned, as of the end of 2022, EVgo has several markets that have double-digit utilization. Looking at these markets more deeply, we see that each of them is fairly developed with high EV penetration rates and a strong EV station footprint. This reinforces our strategy to deploy stations and markets with strong or accelerating EV penetration and offering charging in the best locations, an excellent customer experience, flexible pricing plans, and additional data-driven services. In an environment where competition intensifies, it is even more important to focus on delivering the best customer experience, which includes enhanced reliability and convenient interfaces and services, such as Autocharge+. Sales of EVs outside of California continue to increase. In 2022, 63% of all EV sales were in markets outside of California. These markets are important to EVgo as we continue to build out our fast charging network.

As Kathy mentioned, as of the end of 2022, EVgo has several markets that have double-digit utilization.

Looking at these markets more deeply, we see that each of them is fairly developed with high EV penetration rates and a strong EV station footprint. This reinforces our strategy to deploy stations in markets with strong or exhilarating EV penetration.

and offering charging in the best location, an excellent customer experience, flexible pricing plans, and additional data-driven services.

In an environment where competition intensifies, it is even more important to focus on delivering the best customer experience, which includes enhanced reliability and convenient interfaces and services.

That is out of charge. Sales of EVs outside of California continue to increase. In 2022, 63% of all EV sales were in markets outside of California.

This market is important to EVgo as we continue to build out our fast charging network.

Olga Shevorenkova: In 2022, 41% of our kWh were dispensed outside of California, up from 32% in 2021, demonstrating that the market for EV electrification and consequently EV charging, is becoming truly national. EVgo is well prepared, as two-thirds of our 2022 new stall additions were outside of California, and in 2023, we expect to continue to build across the country. Now, let me give an overview of EVgo's charging network pricing strategy. Philosophically, our strategy is centered around flexible pricing tariffs for our customers versus a one-size-fits-all approach. We are working towards introducing fully dynamic pricing over time, similar to Lyft and Uber approaches, and are already offering certain elements of such dynamism today. We have time-of-use pricing with early bird and off-peak hours, allowing drivers to unlock lower prices at certain times of the day.

In 2022, 41% of our kilowatt hours were dispensed outside of California.

Up from 32% in 2021, demonstrating that the market for EV electrification and consequently EV charging is becoming truly national. EVgo is well prepared as two-thirds of our 2022 new stall additions were outside of California patRap.

And in 2023, we expect to continue to build across the country.

Now, let me give an overview of EVgo's charging network pricing strategy.

Philosophically, our strategy is centered around flexible pricing tariffs for our customers versus a one-size-fits-all approach.

We are working towards introducing fully dynamic pricing over time, similar to least-in-over approaches.

and are already offering certain elements of such dynamism today. We have time-of-use pricing with early burdens of peak hours, allowing drivers to unlock lower prices at certain times of the day.

Olga Shevorenkova: There is also location-based pricing to incorporate attributes like availability of other businesses in the area, utility-specific tariffs, traffic intensity, overall attractiveness, and other market attributes. EVgo subscription plans offer value for drivers based on their frequency of expected charging. Our subscription plans have been gaining traction among our customer base, and we continue to experiment with such plans designs. Turning to 2023 guidance. EVgo is introducing 2023 full-year revenue guidance of $105 to 150 million. This guidance range is informed by the Buy America requirements for NEVI-funded projects issued at the end of February, which are more restrictive than previously expected given the nascent state of domestic fast charging manufacturing capacity. As a result, inputs on specific project timelines remain uncertain and are dependent on domestic capacity coming online.

There is also location-based pricing to incorporate attributes like availability of other businesses in the area, utility-specific tariffs, traffic intensity, overall attractiveness, and other market attributes.

EVgo subscription plans offer value for drivers based on their frequency of expected charging.

Our subscription plans have been gaining traction among our customer base and we continue to experiment with such plans designs.

Turn to 2023 guidance.

Ivego is introducing 2023 full year revenue guidance of $105 million.

to $150 million. This guidance range is informed by the Bi-American requirements for NAVI-funded projects issued at the end of February which are more restrictive than previously expected given the nation state of domestic fast charging manufacturing.

Olga Shevorenkova: EVgo's current main suppliers, including the Pilot Flying J project, have factories under construction with US charger production planned for late 2023. These developments have affected our 2023 PFJ execution plans and shifted some anticipated revenue from 2023 into 2024. Other factors informing the guidance range are the implications a potential economic recession may have on EV sales, the LCFS price environment, and the speed of rideshare electrification. We expect to provide quarterly updates to our annual guidance and anticipate updating the market accordingly in our earnings calls. We expect full-year 2023 adjusted EBITDA of -$78 million to -$60 million. We expect to have a total of 3,400 to 4,000 DC fast charging stalls in operation under construction at the end of 2023. This metric includes PFJ stalls. With this, I will turn the call over to the operator for questions.

have factors under construction with U.S. charger production planned for late 2023.

These developments have affected our 2023 PFJ execution plan and shifted some anticipated revenue from 2023 into 2024.

Other factors informing the guidance range are the implications a potential economic recession may have on EV sales, the LCFS price environment, and the speed of ride share electrification. We expect to provide quarterly updates to our annual guidance.

and anticipate updating the market accordingly in our earnings calls.

We expect full years 2023 adjusted EBITDA of negative 78 million dollars to negative 60 million dollars. We expect to have a total of 3,400 to 4,000 DC fast charging stalls in operation under construction at the end of 2023.

This metric includes PFJ stalls. With this, I will turn the call over to the operator for questions.

Operator: Thank you. If you would like to ask a question on the phone lines today, please press star one on your telephone keypad. To remove yourself from the queue, it's star one again. Please limit yourself to one question and one follow-up, and if you would like to ask additional questions, you may reenter the queue. We'll take our first question from James West with Evercore ISI.

Thank you. If you would like to ask a question on the phone lines today please press star 1 on your telephone keypad to remove yourself from the queue. It's star 1 again. Please limit yourself to one question and one follow-up and if you would like to ask additional questions you may re-enter the queue.

James West: Hey. Good morning, Cathy, Olga, Heather.

We'll take our first question from James West with Evercore ISI. Hey, good morning. Kathy Olga, Heather.

from James West with Evercore ISI. Hey good morning Kathy Olga Heather. Hey James. Hi James.

Cathy Zoi: Hey, James.

Olga Shevorenkova: Hi, James.

James West: Quick first one for me. I think you've gone through most of this, but I want to make sure I'm getting this correct. The guide for the number of stalls that'll be installed, fast charging stalls in operation or under construction of 3,400 to 4,000. I think the low end is kind of similar growth to this year. The high end obviously is accelerated growth. Are there any other factors more than the NEVI definitions and the NEVI scaling up process that influence that? Does that also include, Cathy, what you said about some utilities delivering slower than they had been?

So quick first one for me and I think you've gone through most of this but I want to make sure I'm getting this correct. The guide for the number of stalls that'll be installed, fast charging stalls in operation or under construction of 3400 to 4000 I think the low end is

It's kind of similar growth to this year. The high end obviously is accelerated growth. Are there any other factors more than kind of the NEBI definitions and the NEBI scaling up process that influence that? And does that also include kind of, Kathy, what you said about utilities, some utilities that are already super close to that.

Olga Shevorenkova: Yeah, James. Thanks for the question. Yeah. First of all, this number does include PFJ stalls, not just EVgo-owned stalls, just to confirm that.

you know, delivering slower than they had been. Yeah, James, thanks for the question. Yeah, so first of all, this number does include PFJ stalls, not just Ithaca owned stalls, just to confirm that. And the range is informed by both, all of the above, by both the...

James West: Okay.

Olga Shevorenkova: The range is informed by both, all of the above, by both the potential uncertainties within the NEVI rules as we just described to the market, but also our normal volatilities with utilities and the timing of constructions and whatnot, which was true last year and it's true today. Both of them are included in informing this range.

potential uncertainties within the Navy rules as we just described to the market, but also our normal volatility as with utilities and the timing of constructions and whatnot, which was true last year and it's true today. So both of them are included.

James West: Okay. Fair enough. Thanks, Olga. The follow-up from me, we've seen some recent pricing changes from your competition. In fact, they're raising pricing to really come to your level of pricing or where you guys have been mostly pricing at, as I understand it. Are you seeing any other competitive moves on pricing that either make you think you can raise pricing further or that pricing's going to be stable at this level given what the other competition is doing? It seems like we're in a little bit of an inelastic market, at least now.

and inform in this range. Okay, okay, fair enough. Thanks Olga. And then the follow up for me, we've seen some recent pricing changes from your competition. In fact, they're raising pricing to really to come to your level of pricing or where you guys have been mostly pricing as I understand it. Are you...

seen any other I mean are you seeing any other competitive moves on pricing that Either kind of make you think you can raise pricing further or the price is going to be stable at this level Given what the other competition is doing because it seems like we're in a little bit of an elastic market at least now

Cathy Zoi: Yeah. James, I think as Olga mentioned in the prepared remarks, we have a pretty sophisticated approach to pricing. First of all, pricing.

Yes, so James, I think as Olga mentioned in the prepared remarks, we have a pretty sophisticated approach to pricing. First of all, pricing, we have to make money on every kilowatt hour dispensed. That's sort of a given, right? So, we've always priced to make money, period, full stop. But interestingly, as the market evolves, we're leaning into the dynamic pricing capabilities and our early forays into that where we're offering early bird pricing in certain markets.

James West: Sure

Cathy Zoi: We have to make money on every kilowatt hour dispensed. That's sort of a given, right?

James West: Yep.

Cathy Zoi: We've always priced to make money. Period. Full stop. Interestingly, as the market evolves, we're leaning into the dynamic pricing capabilities and our early forays into that, where we're offering early bird pricing in certain markets and location-based pricing. The customers seem to like it. We're going to continue to develop the sophistication of that, and we think that's going to actually please customers and give us more upside headroom as we go forward.

James West: Got it. Okay. All right. Thanks, Cathy. Thanks, Olga.

Cathy Zoi: Thank you.

Operator: We'll take our next question from Gabe Daoud with TD Cowen.

Gabe Daoud: Thank you. Morning, everybody. Thanks for the prepared remarks. I was maybe hoping to get a little more color on the 2023 guide, maybe just on the revenue side. Could you indicate how much is stemming from eXtend versus just the legacy charging business?

Thank you. Morning, everybody. Thanks for the prepared remarks. I was maybe hoping to get a little more color on the 23 Guide, maybe just on the revenue side. Could you indicate how much is stemming from Xtend versus just the legacy charging business? So we probably would refer to our charging business as Oak.

Olga Shevorenkova: We probably would refer to our charging business as our core business rather than legacy, Gabe. We don't disclose.

Gabe Daoud: Right. That's what I meant. Sorry.

Olga Shevorenkova: We don't disclose the split for the guide. What we could say, and to reiterate, that the range, which you see, $105 to 150, is mostly informed by timeline uncertainties within the execution of PFJ contracts. Nearly all of it is informed by potential volatility and extent. Again, we won't be disclosing how much of the total guide is PFJ revenue, but we will be reporting it as we go through the year.

reiterate that the range, which you see 105 to 150, is mostly informed by timeline uncertainties within the execution of PFJ contracts. So nearly all of it is informed by potential volatility and extends. So again, we won't disclose how much.

the total guide is PFJ revenue but we will be reporting it as we go through the year. But let me just underscore, Gabe, just to build on what Olga said, is let's just be really, really clear that the PFJ is a multi-hundred million dollar multi-year contract. What we're talking about with that variability means that things that might make things that could happen in 2023 would just get simply shifted to 2024.

Cathy Zoi: Let me just underscore, Gabe, just to build on what Olga said, is let's just be really, really clear that the PFJ is a multi-hundred million dollar, multi-year contract. What we're talking about with that variability means that things that could happen in 2023 would just get simply shifted to 2024. It's a forecasting thing for you and for us, I suppose, but it doesn't materially affect the overall health of the business in any way.

Olga Shevorenkova: Correct.

Gabe Daoud: Okay. Understood. Thanks for that. Maybe just a follow-up. If I look at capital spend in 2022, call it $200 million or so, if you, I guess, spend that again in 2023, another $200 million relative to what's on the balance sheet, just how do we think about capital needs in funding that program this year? Are there any other forms of capital, whether it's like a DOE loan program? Just are there any other levers that you can pull to fund the deployment this year? Thanks, everyone.

I guess kind of spend that again in 23, you know the 200 million relative to what's on the balance sheet. Just how do we think about capital needs and funding that program this year and are there any other forms of capital whether it's like a DOE loan program? Just are there any other levers that you can pull to fund the deployment this year? Thanks everyone. Yeah so as of now where was

Olga Shevorenkova: Yeah. As of now, where we stand with our cash balance today, we are fine for the duration of this year and most of next year. Our growth plans are sized to be able to go through, again, the most of next year, and of course this year. We remain opportunistic if a capital raising opportunity presents itself, and we feel it's the right thing to do, and we like how the markets look like, we will take that opportunity. That's what I would say about the capital stretch. Regarding other sources of funds, as part of our DNA, we have the whole team focusing on looking and securing grant funds. That is part of our strategy, and that some of it is baked into our forecast as well. I don't know, Cathy, if you have anything to add on that topic.

raise an opportunity presents itself and we feel it's the right thing to do and we like how the markets look like we will take that opportunity. So that's what I would say about the capital stretch and regarding other sources of funds you know it's part of our DNA we have the whole team focusing on

looking at securing grant funds. So that is part of our strategy and that some of it is baked into our forecasts as well. And I don't know, Cassie, if you have anything to add on that. Yeah, I mean, I think that Gabe you mentioned the DOE loan program and and you know that that is certainly an exciting possibility. The timetables on that are, as you can probably imagine, very very long.

Cathy Zoi: Yeah, I think that Gabe, you mentioned the DOE loan program, and that is certainly an exciting possibility. The timetables on that are, as you can probably imagine, very, very long. That's an interesting possibility, but it's probably not a 2023 possibility for us or anybody for that matter, right. It's a long lead time.

So that's an interesting possibility that is probably not a 2023 possibility for us.

Gabe Daoud: Okay. Understood. Okay. Thanks, everyone.

or anybody for that matter, right? I mean, it's just, it's a long lean time.

Cathy Zoi: Thank you.

Operator: We'll take our next question from Maheep Mandloi with Credit Suisse.

Okay, okay, understood. Okay, thanks everyone. Thank you. We'll take our next question from Mahit Mandloy with Credit Suisse. Hey, morning. Thanks for taking questions yet.

Maheep Mandloi: Hey, morning. Thanks for taking the questions here. Just following the previous question on, or maybe tackling the margins from a different angle here. In terms of OpEx, how should we think about that in the year here to look at similar run rate to Q4? I know in February you talked about some structural changes at the company, but just curious how to think about that now going forward.

Just following the previous question on We'll be tackling the margins from a different angle here in terms of OpEx. How should we think about that? In the year here like a similar run rate to Q4. I know in February talked about some structural changes of the company, but just curious how to...

Olga Shevorenkova: Yeah. Thanks, Maheep. We did go through some payroll efficiencies earlier this year. However, we still will be fulfilling certain positions, mostly in operations teams, needed to help us focus on execution of our pipeline and existing commitments. Q4 is a fine proxy, but you'd see some movements throughout the year as the effects of efficiencies we introduced earlier this year come into play, and as we continue to ramp up, probably not as significantly as last year, but yet there will be a ramp-up on operations headcount, which you would also see throughout this year as well.

positions mostly in operations teams needed to help us focus on execution of our pipeline and existing commitments. So Q4 is a fine proxy, but you'll see some movements throughout the year as the effects of efficiencies were introduced earlier this year come into play.

Maheep Mandloi: Got it. On the domestic content question earlier, how early do you think the suppliers can move into the US? Have they given you a timeline yet? It's predominantly Delta for the PFJ.

How early do you think the suppliers can move into the US?

Cathy Zoi: Oh, yeah. We have two major suppliers for our fast chargers. It's both Delta and Signet. They both have domestic production facilities under construction right now and are aiming for the latter part of this year to have those go online. Once they go online, we need to obviously test the equipment that comes out, because for us, safety and reliability is of utmost importance. We're hopeful end of this year that we'll be able to sort of get access to those US manufactured fast 350 chargers, 350 kilowatt chargers, and get them moving. That's why you see the variability in our revenue range there.

Have they given you a timeline yet? And it's predominantly Delta, right, for the PFJ? Well, yes. So we have two major suppliers for our fast chargers. It's both Delta and Signet. And they both have domestic production facilities under construction right now and are aiming for the latter part of this year to have those go online. And once they go online, we need to obviously test the equipment that comes out.

Maheep Mandloi: Got it. Just one last housekeeping. I'm sorry if I missed this. Did you talk about CapEx needs for this year?

And then just one last housekeeping. I'm sorry if I missed it. Did you talk about CapEx needs for this year?

Olga Shevorenkova: We don't explicitly guide to the CapEx, but we do guide to total sales and operation under construction as of year-end, and you can infer from there.

We don't explicitly guide to the CAPEX, but we do guide to total stalls and operations under construction as of year-end, and you can infer from there.

We don't explicitly guide to the CAPEX, but we do guide to total stalls and operation on the construction as of year end and you can infer from there.

Maheep Mandloi: Got it. I'll take the rest offline. Thanks, everyone.

Olga Shevorenkova: Thank you.

Cathy Zoi: Thank you.

Operator: We'll take our next question from Andres Sheppard with Cantor Fitzgerald.

Thanks a lot. Thank you. Thank you. We'll take our next question from Andre Shepherd with Cantor Fitzgerald. Hey, good morning, Kathy. Good morning, all of you. Good morning, Heather. Thanks for taking our questions and congrats on the quarter. Looks like the stock is reacting very well. So congrats again on the news. Most of our questions have been asked. But we'll be back by 30 minutes, 10 minutes and there is no depth of the plot of the week. All we've got to do is talk, right?

Andres Sheppard: Hey, good morning, Cathy. Good morning, Olga. Good morning, Heather. Thanks for taking our questions, and congrats on the quarter. Looks like the stock is reacting very well, so congrats again on the news. Most of our questions have been asked, maybe touching on revenue guidance once more. It's pretty decent range on the guidance, so maybe if you could just help us better understand what are the main assumptions driving this variance, and also what kind of seasonality might we expect? I think historically Q1 has been a little bit on the lower end, but sounds like it's progressing well with the network throughput, so just wondering on seasonality there as well. Thank you.

touching on revenue guidance once more. It's a pretty decent range on the guidance, so maybe if you could just help us better understand kind of what are the main assumptions driving this disparities and also what kind of seasonality might we expect. I think historically Q1 has been

Olga Shevorenkova: Yep, sure. On the first question on the range, it is mostly informed by the timing of eXtend revenue and namely PFJ contract execution, and to be more precise, the timing of the charger delivery on our facilities. This is when they change title, as I mentioned in my prepared remarks, and we effectively record revenue. We do expect to start seeing NEVI qualifier charges being delivered end of year, but dependent on specifically how many charges will hit us this side of the year versus next side of the year, just to give a little more detail, we will see a different revenue number. That is the main factor affecting the range, and then you have other factors which are also important but maybe less in magnitude, which is actual construction timelines for PFJ contract. On the core business, it's EV sales.

to extend revenue and namely PFJ contract execution. And to be more precise, the timing of the charge of delivery on our facilities. This is when they change title. As I mentioned in my prepared remarks and we effectively record revenue.

we do expect to start seeing NAVI qualified charges being delivered end of year. But depending on specifically how many charges will hit us this side of the year versus next side of the year, just to give a little more detail, we will see a different revenue number. Research's interview results cartridge

That is the main factor affecting the range. And then you have other factors which are also important, but maybe less in magnitude, which is actual construction timelines for PFJ contract. And then on the core business, it's EV sales. So our retail business.

Olga Shevorenkova: Our retail business is quite correlated to number of electric vehicles on the US roads, and depending on how many will be sold to the market this year, it will create some volatility. On top of it, we don't know what's going to happen with LCFS pricing, and we have it baked in there as well. All of those factors do affect the size of the range. Do you mind repeating the second question? Sorry.

It's quite correlated to number of electrical vehicles on the US roads and depending on how many will be sold to the market this year, it will create some volatility and then on top of it, we don't know what's going to happen with LCFS pricing and we have a route baked in there as well.

So all of those factors do affect the size of the range. And then do you mind repeating the second question? Sorry. Yeah, no problem. The second, it was part on seasonality. What kind of seasonality? Seasonality, right. Yeah, so you know what? It is interesting because every year, there is a seasonality pattern, which is the normal seasonality pattern on how EVs are driving.

Andres Sheppard: Yeah. No problem. The second, it's just part on seasonality. What kind of seasonality?

Olga Shevorenkova: Oh, seasonality. Right. Yeah. You know what? It is interesting because every year, there is a seasonality pattern, which is a normal seasonality pattern on how EVs are driving. Sorry, not EVs, it is all cars are driving, and that's a stable pattern, and you could see how, yes, Q1 is a little weaker, picks up by the summer, then you again see a pickup around holidays later in the year. However, every single year, there are some factors which are overriding the seasonality or come on top of seasonality. Last year, for example, the Q1 was even worse than seasonality would suggest because there were some COVID spikes and people were restraining themselves from going out. This year, we see a lot of growth because we see actually pretty strong sales in Q1 and pretty strong sign-ups on the EVgo network, it kind of masks seasonality.

So there are no divisions, all cars are driving and that's a stable pattern and you could see how yes, Q1 is a little weaker, picks up by the summer, then you again see a pickup around like holidays later in the year. However, every single year there are some factors which are overriding the seasonality or come on top of seasonality. Last year, for example, the Q1 was even worse than seasonality.

Olga Shevorenkova: My perspective, and I'm looking at these numbers pretty much daily, that for such an early stage high growth industry, we won't be seeing stable seasonality patterns for a while because you would always have some other factors overriding the seasonality or coming on top of the seasonality, which mask it a little bit. We will continue to monitor and report back to the market and explain why and what is happening. You're absolutely right. The last Q1 didn't see as much of growth versus previous quarters we probably would see this one.

an early stage high growth industry. We won't be seeing stable seasonality patterns for a while because you would always kind of have some other factors overriding the seasonality or coming on top of the seasonality which mask it a little bit. But we will continue to monitor and report back to the market and explain why and what is happening but you're absolutely right it's the last Q1.

Andres Sheppard: Got it. That's very helpful, Olga. I appreciate all that context. Maybe as a quick follow-up question for Cathy here. There's been some consolidation in the sector. I'm curious to maybe get your views on M&A or if you might expect any further consolidation in the sector either this year or next year. Thank you.

on M&A or if you might expect any further consolidation in the sector either this year or next year. Thank you.

Cathy Zoi: Yeah. Look, Andres, I'm not exactly sure. Look, what we know is with $1.2 trillion going into making of the cars and that whole thing, that there's a whole lot of interest in entering the charging space as well. That comes from new entrants, and that comes from the big guys, like you've seen some oil companies taking some actions there. I'm guessing that will continue to be of interest. I think probably the near term M&A activity may be impacted by recessionary fears that are looming, that might stymie it a little bit. In any case, look, we at EVgo, we're just going to go and execute our business and continue to do what we do well. We'll just watch that space just like you will.

Yeah, look, I'm not exactly sure. Look, what we know is with $1.2 trillion going into making of the cars and that whole thing, that there's a whole lot of interest in entering the charging space as well. So that comes from new entrants and that comes from the big guys. You've seen some oil companies taking some actions there.

I suppose that will, I'm guessing that will continue to be of interest. I think probably the near term M&A activity may be impacted by recessionary fears that are looming, so that might stymie it a little bit. So in any case, look, we at EVgo, we're just gonna go and execute our business and continue to do what we do well. And we'll just watch that space just like you will. Wonderful, thank you so much. Congrats again, I'll pass it on.

Andres Sheppard: Wonderful. Thank you so much. Congrats again, and I'll pass it on.

Cathy Zoi: Thank you.

Operator: We'll take our next question from David Kelley with Jefferies.

Thank you. We'll take our next question from David Kelly with Jefferies.

David Kelley: Hi, good morning. Thanks for taking my questions. Maybe just a couple follow-ups from my end. Wanted to start with the earlier CapEx discussion. As we think about mix contributors to that implied stall growth in 2023, should we expect any meaningful change in per-stall spending relative to 2022?

All right, good morning and thanks for taking my questions. Maybe just a couple follow-ups from my end and wanted to start with earlier CAPEX discussion. As we think about mixed contributors to that implied stall growth in 2023,

Should we expect any meaningful change in per stall spending relative to 2022?

Olga Shevorenkova: Yeah. Not meaningful yet. We do see a trend coming down a little bit. We are now looking at numbers in the vicinity of $140,000 per stall versus last year we saw 140 to 145. Mostly coming from efforts on negotiating equipment prices and also because we are now focusing on a bit of a larger size, meaning more stalls per site, which creates efficiencies. We'll continue to update the market if that substantially changes.

Yeah, so not meaningful yet, we do see a trend coming down a little bit. We are now looking at numbers in the vicinity of $140,000 per stall versus last year with $140,000 to $145,000 mostly coming from our efforts on negotiating equipment prices.

And also because we are now focusing on a bit of a larger size, meaning more stalls through sites, which creates efficiencies. And we'll continue to update the market if that potentially changes.

David Kelley: Okay, got it. That's helpful. Thank you. Then one quick follow-up on fleet. We are seeing a bit slower rollout of EVs in the US, mainly due to supply chain shortages, but they're out there. Then we have the growing macro uncertainties. Curious if you're seeing any impact on or hearing of any kind of increased near-term hesitation from some of your fleet customers, understanding the longer term plans of rollout are fully intact. Have they pulled back at all on kind of expectations for the next six, 12 months here?

And then we have the growing macro uncertainty. So curious if you're seeing any impact on or hearing of any kind of increased near-term hesitation from some of your fleet customers, understanding the longer-term plans of rollout are fully intact. But have they pulled back at all on the kind of expectations for the next six months?

Cathy Zoi: Yeah. We think of fleet in kind of three buckets. We have rideshare fleet, which is on our public network, and that's going great. That's back post-COVID. They're passenger vehicles that are light duty, so they're finally, Uber and Lyft, for example, their drivers are able to get access to EVs. That's really going very well. Our second bucket of fleet partnerships is the autonomous vehicle companies. Again, good progress there. We have a really lovely business model on hubs with them that is growing well. The one that I think you're referring to is the delivery folks, and they have been unable to get very many vehicles. That's happening a little bit more slowly. We don't see a pullback.

EVs, so that's really, really going very, very well. Our second bucket of sort of fleet partnerships is the autonomous vehicle companies, and again, good progress there. We have a really lovely business model on hubs with them that is growing well. The one that I think you're referring to is the delivery folks, and they have been unable to get...

Cathy Zoi: We just see that their first forays, their first investments in pilots, are just moving along more slowly than we might have guessed a couple of years ago. That really is, I think as you're alluding to, a function of accessing the vehicles themselves. I'm guessing that that's going to shake loose sometime, probably in the next 24 months. This year, I think we'll just continue to see progress on fleets, large and small, buying their first batches of EVs and working with charging partners like EVgo to gain some experience on electrification of transportation.

very many vehicles and that's happening a little bit more slowly. We don't see a pullback, we just see that their first forays, their first investments in pilots are just moving along more slowly than we might have guessed a couple of years ago. That really is, I think as you're alluding to, a function of accessing the vehicles themselves. I'm guessing that that's going to shake loose sometime probably in the next 24 months. This year, I think we'll just continue to see progress on them.

fleets large and small buying their first batches of EVs and working with charging partners like EVgo to You know gain some experience on electrification or transportation Okay, got it. Thank you. That's really helpful. Thanks We'll take our next question from Alex Rabel with Bank of America

David Kelley: Okay, got it. Thank you. That's really helpful. Thanks.

Cathy Zoi: Bye.

Operator: We'll take our next question from Alex Rabel with Bank of America.

Alex Rabel: Thanks guys for taking the question. Hate to sort of go back to something we've talked about already, but just on sort of the capital markets future here. Olga, can you perhaps just help a little more as far as, you mentioned a line of sight on the next two years. If I take just the 140 number you mentioned per stall, and just assume half of the stalls you're going to do this year are within, I guess, your core business model, that would take sort of half your cash position away with the EBITDA burn as well. Is there any further color you can offer? Also to understand, is there any use of the ATM embedded in that statement that you made earlier?

Thanks guys for taking the question. I hate to sort of go back to something we've talked about already, but just on the capital markets future here, Olga, can you perhaps just help a little more as far as you mentioned the line of sight on the next two years. If I take just the 140 numbers.

And also to understand, is there any use of the ATM, you know, I guess, embedded in that statement that you made earlier?

Olga Shevorenkova: Yeah, sure. We spent roughly $200 million last year on CapEx, and the majority of it was gross CapEx. A lot of stalls we plan to put in operations this year, we've already pre-spent money last year, including pre-paid equipment and some of the construction as well. That's normal for our business. You have to spend money sometimes up to three, four quarters earlier than the stalls go operational, so that might affect your math. We've already done quite a bit of work. Last year was a big push year for us on that front. The second point, when we think about our capital needs, let us not forget that a lot of times when we deploy our assets, we do take advantage of incentives which exist. Now with 30C coming in play and other incentives available, that does affect CapEx quite a bit.

Yeah, sure. So we spent roughly 200 million dollars last year on CapEx and the majority of it was gross CapEx. So a lot of stalls were planned to put in operations this year. We already pre-spent money last year including pre-paid equipment.

work last year was a big push here for us on that front.

The second point, when we think about our capital needs, let us not forget that a lot of times when we deploy our assets, we do take advantage of incentives which exist. And now with CERDE-C coming in place and other incentives available that does offset CAPACs.

Olga Shevorenkova: It's not all growth capacities offset by certain incentives. On ATM, we did raise $10.4 million end of last year. We continue to be opportunistic. ATM will not probably be the main source of our capital. However, when the situation permits and there is an open trading window, we will take advantage of it.

quite a bit. So it's not all gross capacities offset by certain incentives. On ATM, we did raise 10.4 million dollars end of last year, and we continue to be opportunistic. ATM will not probably be the main source of our capital.

However, when the situation permits and there is an open trading window, we will take advantage of it. Got it. That's actually super helpful. And then maybe one for you, Kathy. I know you mentioned there's obviously a litany of things going on in Washington as far as the moving policy pieces. I think the key piece of drama this week is really the EV tax credit.

Alex Rabel: Got it. That's actually super helpful. Then maybe one for you, Cathy. I know you mentioned there's obviously a litany of things going on in Washington as far as the moving policy pieces. I think the key piece of drama this week is really the EV tax credit, and certainly some gyrations we can see there. How important is that or not to what you see as far as future demand trends? I know there's a lot of debate about what may or may not qualify. Just curious on your perspective, given how close you are to the issue over many years.

and certainly some gyrations we can see there. I mean, how I guess important is that or not to what you see as far as future demand trends? I know there's a lot of debate about what may or may not qualify. Just curious kind of on your perspective, given how close you are to the issue over many years. Yeah, well, actually, Alex, I'm gonna take the opportunity to introduce my marvelous colleague.

Cathy Zoi: Yeah. Well actually, Alex, I'm going to take the opportunity to introduce my marvelous colleague, Jonathan Levy, to answer this one. Jonathan and I got to know each other in that Washington world, and he's our Chief Commercial Officer, and he's going to be joining us for these calls going forward. I want you guys to get to know him, but this is totally in his zone. Jonathan, over to you.

Jonathan Levy: Yeah, thanks, Cathy. Alex, you may be referring in part to some of the comments that Senator Manchin made yesterday at a conference that I was speaking at. We are expecting the clarifications from Treasury on the 30D vehicle tax credit for some of the minerals content requirements. I think there's a couple of things here. A lot of that has to do with where the automakers are planning some of the components and what happens with their supply chain. What we're seeing near term, though, is demand from consumers is such that you still have.

at a conference that I was speaking at, but we are expecting the clarifications from Treasury on the 30D vehicle tax credit for some of the minerals content requirements. I think there's a couple things here, right? A lot of that has to do with where the automakers are planning some of the components and what happens with their supply chain. What we're seeing near-term though is demand from consumers is such that you still have reservations, availability, and I think that demand continues to outstrip the supply. Obviously, the tax credit can continue to be...

Cathy Zoi: Reservations, availability, and I think that demand continues to outstrip the supply. Obviously, the tax credit can continue to be a really big tailwind, but we're also as excited about the commercial and used tax credit, and the commercial credit doesn't have the same restrictions that the used and the 30D credits have.

Alex Rabel: Yeah. No, that's super helpful, and welcome to the team, Jonathan. I look forward to connecting more.

Operator: We'll take our last question from Bill Peterson with JPMorgan.

Bill Peterson: Yeah, hi. Good morning. Thanks for taking the question. I wanted to come back to seasonality and first clarification. On the network throughput, 20% higher, does that mean we should assume the network throughput in Q1 is around, let's say, 17 or so? I guess related to that, revenues have somewhat lagged network throughput. Wonder if you can unpack how to think about that, I guess related to pricing. It might probably be either subscriptions, pay-as-you-go, different type of, I guess, charging means that people are employing. If you try to unpack those for us would be very helpful. Thanks.

from Bill Peterson with JP Morgan.

Hi, good morning. Thanks for taking the question. I wanted to kind of come back to seasonality and first clarification. On the network throughput 20 percent higher, does that mean we should assume the network throughput in the first quarter is around, let's say, 17 or so? And then, I guess, related to that, the revenue is somewhat lagging network throughput. I wonder if you can kind of unpack how to think about that. You could have marshaled a big pool here, but it might have been even easier if that

related to pricing it might probably be subscriptions, pay as you go, different types of

I guess charging means that people are employing. So trying to unpack those fours would be very helpful. Thanks. Yeah, so we won't comment on Q&A results just yet. Stay with us, that comes relatively soon. But the 20% number on average daily volume is a good proxy for.

Olga Shevorenkova: Yeah. We won't comment on Q1 results just yet. Stay with us. That comes relatively soon. The 20% number on average daily volume is a good proxy for over-quarter sequential change. On revenue lag and throughput, not sure, maybe you clarify what you exactly mean. Our retail businesses, there's no lag. It's exactly we're recording the revenue and getting cash pretty much the moment the person charges. There's no lag there at all.

there is no lag. It's exactly we're recording revenue and getting cash pretty much the moment the person charges. So there is no lag there at all.

Bill Peterson: I think the network throughput is somewhere north of 70% growth and the revenue was around 68%, 69%. I'm not saying lagging. I'm talking about the revenue growth. It doesn't exactly match the network throughput growth. That's what I meant by that. I'm trying to understand how to model that moving forward.

I think the network throughput was somewhere north of 70% growth and the revenue was around 60, I don't know, 60 to 69%. So I'm not saying lagging, I'm talking about the revenue growth doesn't exactly match the network throughput growth. That's what I meant by that. I'm trying to understand how to model that moving forward.

Olga Shevorenkova: Okay. Thanks for clarifying. It depends what kind of revenue you're taking into account because we have retail revenue, you have commercial revenue, you have OEM revenue. Commercial revenue by definition per kilowatt hour pricing would be lower because these guys get volumetric discounts. The moment that revenue line in proportion grows to the total revenue, you will see that effect which you are mentioning. The same if you include an LCFS pricing into this, that same concept. LCFS pricing went down quite a bit year-over-year. I don't know which particular revenue line you ran your numbers on, but that contributes to that effect as well.

Okay, so thanks for clarifying. It depends on what kind of revenue you're taking into account, because we have retail revenue, you have commercial revenue, you have OEM revenue. Commercial revenue, by definition per kilowatt hour pricing would be lower, because these guys get volumetric discounts. So the moment that...

revenue line in proportion grows to the total revenue, you will see that effect which you are mentioning. And the same if you include LCFS pricing into this, that same concept, LCFS pricing went down quite a bit year over year. So I don't know which particular revenue line you run your numbers on but that...

Bill Peterson: Okay, thanks for that. Obviously it's a wide range for the year, largely on eXtend. I guess, can you help us understand how we should have it run through in terms of, let's say, the gross margin? How does it flow through the P&L? For example, if you come in the low end of the range, I presume your actual gross margin would actually be higher. Can you help us understand how that flows through the P&L? That'd be helpful as a reminder.

does it flow through the P&L? For example, if you come in the low end of the range, I presume your actual gross margin would actually be higher. But if you help us understand how that flows through the P&L, that would be helpful as a reminder.

Olga Shevorenkova: Yeah, that's a good question. We do not guide on adjusted gross margin. However, even within eXtend, different pieces have slightly different margin, and depending if you have more charging revenue versus construction versus pre-engineering, the margin mix might change. I obviously do have certain forecasts which I look at, and it's not necessarily that if you end up with a lower revenue number, your adjusted gross margin would be lower. There could be some other factors in play. Sorry, it could be high. It could be some other factors in play. Again, we just don't guide to adjusted gross margin, and we'll be informing the market throughout the year as we go and explain which forces exactly play into specific number for the quarter-end results.

That's a good question. We do not guide on adjusted gross margin. However, even within Xtend, kind of different pieces have slightly different margins and depending if you have more charging revenue versus construction versus pre-engineering, the margin mix might change. So I obviously do have certain forecasts which I look at and it's not necessarily that if you end up with a lower revenue number, your adjusted gross margin would be lower. There could be some other factors in play. Oh sorry, it could be high. It could be some other factors in play. But again, we just don't guide to adjusted gross margin.

Bill Peterson: Okay, thanks. We'll stay tuned. Thank you.

Operator: That does conclude the question and answer session. I'd like to turn the call back over to Cathy Zoi for any additional or closing comments.

Cathy Zoi: Thank you. Well, thank you, everyone. In closing, let me just say that 2022 was about growth and execution at EVgo, culminating in the company achieving the high end of our revenue and adjusted EBITDA guidance and continuing to lead in the EV charging sector in the US. As we continue to expand as one of the largest fast charging public networks in America, we look to leverage our operational expertise from our decade-long track record and continue driving operational efficiency, deploying capital that meets our robust return requirements. I look forward to sharing our Q1 2023 results very soon. Thanks everyone for joining us.

to lead in the EV charging sector in the US. As we continue to expand as one of the largest fast-charging public networks in America, we look to leverage our operational expertise from our decade-long track record and continue driving operational efficiency, deploying capital that meets our robust return requirements.

I look forward to sharing our Q1 2023 results very soon. Thanks everyone for joining us. And that does conclude today's presentation. Thank you for your chance Bendis.

Operator: That does conclude today's presentation. Thank you for your participation, and you may now disconnect.