Q1 2023 EVgo In Earnings Call

Cathy Zoi: Entirety across all metropolitan corridor and rural markets to statewide utilization above 10%. We're seeing metro areas in Texas, Florida, and Nevada with double-digit utilization as well. These up and to the right results from Q1, and those we reported on our last earnings call from the entirety of 2022, are a testament to the long-term opportunity at EVgo that you've heard us describe since we became a public company a couple of years ago. Today, I'll lean into three key pillars supporting EVgo's success. First, EVgo's business model is leveraged to increasing EV adoption. When EV sales grow, EVgo's business grows with it. Second, EVgo's robust market position is built on a foundation of value-creating blue ribbon partnerships with OEMs, governments, site hosts, and fleets. These commercial partnerships continue to grow and expand.

In the quarter and rural markets.

Why utilization above 10%.

We're seeing metro areas in Texas, Florida, and Nevada, with double digit utilization as well.

These up into the right results from Q1, and those we reported on our last earnings call from the entirety of 2022 are a testament to the long term opportunity at easy go that you've heard us describe since we became a public company a couple of years ago.

Today, I'll lean into three key pillars supporting <unk> success.

First <unk> business model is leveraged to increasing easy adoption when EV sales growth.

<unk> business grows with it.

Secondly, EBIT goes robust market position is built on a foundation of value, creating blue ribbon partnerships with Oems governments site hosts and suites.

These commercial partnerships continue to grow and expand.

Cathy Zoi: Third, EVgo's technology leadership is charting the course for EV charging and EV ownership more broadly, creating the means for individual drivers, fleet businesses, automakers, retailers, and governments to seamlessly be part of the transportation revolution that is upon us. First, let's talk about EVgo's business model leveraged to the growth in EVs. The market for electric vehicles is continuing to grow at a blistering pace. In 2022, there were 2.2 million EVs in operation, and that is expected to grow to over 33 million by 2030, a 40% compound annual growth rate. Bloomberg's 2022 BNEF report predicted that more than half of all passenger cars sold in the US will be EVs by 2030. I'll note optimistically that we've already exceeded BNEF's original EV adoption figures for the early part of this decade.

And third <unk> technology leadership is charting the course for EV charging and EV ownership more broadly, creating the need for individual drivers fleet businesses automakers retailers and governments to seamlessly be part of the transportation Revolution that is upon us.

First let's talk about <unk> business model leverage to the growth in Evs.

The market for electric vehicles is continuing to grow at a blistering pace.

In 2022, there were $2 2 million Evs in operation and that is expected to grow to over $33 million by 2030.

40% compound annual growth rate.

Bloomberg's 2022, BNET report predicted that more than half of all passenger car sold in the U S will be evs by 2030.

And I'll note optimistically that we've already exceeded BNS original EV adoption figures for the early part of this decade.

Cathy Zoi: As mass adoption of EVs is underway in the United States, there is a need for more charging and more fast charging in particular. S&P Global has predicted that the US would need approximately 170,000 fast chargers by 2030, an 8X growth from today. Apartment dwellers, high-mileage drivers, such as rideshare drivers, and fleets are all going electric. EVgo has found that even drivers who primarily charge at home rely on fast charging for day tripping, longer road trips, and even kilowatt-hour top-ups while doing errands around town. Hence, the increase in utilization I referenced earlier that we're witnessing in a growing number of markets across the country, well beyond California. We're committed to building this business in a manner that is sustainable and highly profitable for our shareholders. As you know, EVgo's core business is in asset ownership.

As mass adoption of engagements underway in the United States. There is a need for more charging and more fast charging in particular.

S&P global has predicted that the U S would need approximately 170000 fast charges by 2030 and eight.

<unk> growth from today.

Apartment dwellers high mileage drivers such as rideshare drivers and fleets are all going electric and.

<unk> has found that even drivers who primarily charge at home rely on fast charging for day tripping longer road trip and even kilowatt hour top ups, while doing errands around town.

Hence the increase in utilization I referenced earlier that we are witnessing and a growing number of markets across the country well beyond California.

We're committed to building this business in a manner that is sustainable and highly profitable for our shareholders.

As you know <unk> core business is an asset ownership, we carefully invest in charging infrastructure, where we believe it will deliver our targeted returns through ever increasing asset utilization.

Cathy Zoi: We carefully invest in charging infrastructure where we believe it will deliver our targeted returns through ever-increasing asset utilization. We operate a best-in-class public network expanding that owned network to new geographies that pass our rigorous investment hurdles. We own and operate charging assets for a variety of fleet customers. In addition, we apply our expertise in siting, building, and operating charging infrastructure to accretive capital-light business lines serving both retail and fleet segments. EVgo eXtend and our behind-the-fence offerings to fleets expand EVgo's competitive position and broaden EVgo's customer reach while providing us with additional predictable recurring revenue streams as a builder, operator, and integrator, insulating us from utilization risk in markets where we don't want that exposure. Building a business leveraged to rising EV adoption has proven to be a sound commercial thesis.

We operate a best in class public network, and expanding that own network to new geography that has our rigorous investment hurdles.

And we own and operate charging assets for a variety of fleet customers.

In addition, we apply our expertise inciting building and operating charging infrastructure to accretive capital light business lines, serving both retail and fleet segments.

Easy go extend and are behind the fence offerings to fleet expands <unk> competitive position and broaden <unk> customer reach while providing us with additional predictable recurring revenue streams as a builder, operator, and integrator, but insulating us from utilization risk in markets, where we don't want that.

Closure.

Building a business leverage to rising EV adoption has proven to be a sound commercial thesis.

Cathy Zoi: Let's talk about the important pillar of partnerships to EVgo's market leadership and financial position. EVgo has a long history in cultivating lasting business relationships with marquee partners that create meaningful commercial win-wins. On the OEM side, you've heard us discuss GM, Toyota, Subaru, and Nissan in particular, and the countless brand name retail partnerships like Target, Safeway, Kroger, Whole Foods, Home Depot, Lowe's, Chase Bank, and the recent addition, Chipotle, where on-site fast charging creates foot traffic for brick-and-mortar stores and restaurants. EVgo's partnerships with utilities and government funders are equally important financial contributors to our growth to date, and we expect them to continue to be. With respect to our current auto manufacturer partners, OEMs provide EVgo with capital funding to offset development costs.

Next let's talk about the important pillar of partnerships to EBIT goes market leadership and financial position.

<unk> has a long history in cultivating lasting business relationships with marquee partners that create meaningful commercial win wins.

On the OEM side, you've heard us discuss GM, Toyota Subaru and Nissan in particular.

And the countless brand named retail partnerships like target Safeway Kroger whole foods home Depot, Lowe's Chase Bank and the recent addition, chipotle, where onsite fast charging creates foot traffic for brick and mortar stores and restaurants.

Indigo has partnerships with utilities and government funders are equally important financial contributors to our growth to date, and we expect them to continue to be.

With respect to our current auto manufacturer partners.

<unk> provided <unk> go with capital funding to offset development costs. They.

Cathy Zoi: They create and pay for fast charging credit programs to attract EV drivers to EVgo, or they procure EVgo's proprietary software solutions to enhance their EV drivers' experience. With the OEM investment in EVs on the rise, we're hopeful EVgo's collaboration with the OEMs will deepen further. GM, the number one US car maker in 2022 and one of EVgo's landmark partners, is investing more than $35 billion in electric vehicles and autonomous vehicles over the next several years. In February, GM committed to producing about 400,000 EVs during 2024, a stepping stone to meet its goal of reaching annual production of 1 million EVs by 2025. GM has announced they will have 9 EV models available in the US by the end of this year, including versions of the popular Chevy Silverado pickup truck, as well as the Equinox and Blazer SUV.

They create and pay for fast charging credit programs to attract EV drivers to <unk>.

Sure they procure easy dose proprietary software solutions to enhance their EV drivers experience.

And with the OEM investment in <unk> on the rise we are hopeful <unk> collaboration with the Oems will deepen further.

G N. The number one U S. Carmaker in 2022, and one of those landmark partners is investing more than $35 billion in electric vehicles and autonomous vehicles over the next several years instead.

In February GM committed to producing about 400000 Evs during 2024.

I think stone to meet its goal of reaching annual production of 1 million Evs by 2025.

GM has announced they will have nine EDI models available in the U S. By the end of this year, including versions of the popular Chevy Silverado pickup truck as well as the equinox and blazer SUV.

Cathy Zoi: Nissan accelerated its EV plans in the US and committed nearly $18 billion to electrify more of its overall lineup. Nissan plans to introduce 19 EVs by 2030, an increase from its original goal of 15. They expect 44% of total sales will be electric by then. Toyota, building on their introduction of the fully electric bZ4X last year, is investing $35 billion in EVs globally. Similarly, Subaru, which introduced the Solterra last year, expects to offer several more EV models by 2025 as it continues to ramp its investments in electrification. With EVgo being leveraged to growth in EVs on the roads, these are particularly exciting commitments from EVgo's partner OEMs. Another important area is rideshare, where EVgo's partnerships with both Lyft and Uber continue to deliver both network throughput and revenue, as well as positive environmental benefits to the communities in which drivers on their platforms live and work.

Nissan accelerated in PV plants in the U S and can you did nearly $18 billion to electrify more of its overall lineup.

Nissan introduced 19, Evs by 2030, an increase from its original goal of 15, they expect 44% of total sales will be electric by them.

Toyota building on their introduction of a fully electric visa Forex last year is investing $35 billion in evs globally.

Similarly, Subaru, which introduced the soltero last year expects to offer several more EV models by 2025 as it continues to ramp its investments in electrification.

With easy go being leveraged to growth in Evs on the road. These are particularly exciting commitments from EV goes partner OEM.

Another important area is rideshare, where EBIT goes partnerships with both Lyft and Uber continues to deliver both network throughput and revenue as well as positive environmental benefits to the communities in which drivers on their platform live and work.

Cathy Zoi: As we shared before, rideshare drivers are ideal customers for fast charging. A rideshare driver typically drives more in a day than most people do in a week and may need to be able to charge fast so they can get back on the road. With such a user profile, we see Uber and Lyft drivers increasing utilization on our network significantly, with Q1 throughput more than tripling from a year ago. Both Uber and Lyft are great partners and are heavily marketing the benefits of EVs for both their drivers and their riders. Uber's Comfort Electric option is now available in nearly 40 cities throughout North America, an important step in the company's effort to reach an EV-only fleet by 2030. Likewise, Lyft is helping drivers make the switch to EVs, offering a cash bonus for drivers who offer at least 50 rides using a qualified EV.

As we shared before rideshare drivers are ideal customers for fast charging.

Rideshare driver typically drive more than a day and most people do in a week and may need to be able to charge fast. So they can get back on the road.

With such a user profile, we see Uber and Lyft drivers increasing utilization on our network significantly with Q1 throughput more than tripling from a year ago.

Both Hoover endless are great partners and are heavily marketing the benefits of evs for both their drivers and their riders.

Hoover's comfort electric option is now available in nearly 40 cities throughout North America, an important step in the company's effort to reach an easy only fleet by 2030.

Likewise this is helping drivers makes the switch to EV offering a cash bonus for drivers who offer at least 50 by using a qualified E D.

Cathy Zoi: Site hosts are also important partners at EVgo. We provide the charging. Our site host partners offer great amenities while a driver charges, and our relationships with these marquee partners are deepening. Through our sophisticated network planning tool, EVgo has identified literally thousands of locations across America where shareholder value could be created if EVgo builds a fast charging station at that partner site. Earlier today in our earnings release, EVgo announced we have entered into a new agreement to expand our collaboration with Chevron, first launched in 2015 to develop EV charging sites in major California markets. EVgo will now offer Chevron and Texaco locations across the US turnkey fast charging solutions with a variety of ownership models, including EVgo Extend.

Brighthouse are also important partners at easy go we provide the charging our seacoast partners offer great amenities, while the driver charges.

And our relationships with these marquee partners are deepening through our sophisticated network planning tool <unk> go has identified literally thousands of locations across America, where shareholder value could be created if EDI go build a fast charging station at that partner site.

Earlier today in our earnings release easy go announce we have entered into a new agreement to expand our collaboration with Chevron first launched in 2015 to develop EV charging sites in major California markets.

<unk> will now offer chevron and Texaco locations across the U S turnkey fast charging solutions with a variety of ownership model, including Vigo extent.

Cathy Zoi: There are more than 8,000 Chevron and Texaco retail stations across the US that will have access to EVgo's expertise and solutions, including fast chargers up to 350 kilowatts. Under the agreement, EVgo will provide hardware, design, and construction of charging at these sites, as well as operations and maintenance, networking, and software solutions. Chevron and its independently owned retailer and marketer network will also be well-positioned to take advantage of the funding available through the government's National Electric Vehicle Infrastructure, or NEVI, program. With Chevron as the latest example of a deepening retailer partnership, EVgo is excited about the opportunity to bring more convenient fast charging options to EV drivers wherever they need to be. On fleet, the deepening of partner relationships is again the theme for this quarter, with additional sites added by two of EVgo's current fleet partners.

There are more than 8000, Chevron and Texaco retail stations across the U S that will have access to <unk> expertise and solutions, including fast Chargers up to 350 kilowatts.

Under the agreement <unk> will provide hardware design and construction of charging at these sites as well as operations and maintenance networking and software solutions.

<unk> and its independently owned retailer and marketer network will also be well positioned to take advantage of the funding available through the government's national electric vehicle infrastructure or Navy program.

With Chevron is the latest example of a deepening retailer partnerships <unk> is excited about the opportunity to bring more convenient fast charging options to EV drivers wherever they need to be.

And on fleet the deepening of partner relationships is again the theme for this quarter with additional sites Avatar two <unk> current fleet partners.

Cathy Zoi: MHX, a Class 8 truck fleet, and a national food and beverage company are each building their second EVgo-dedicated fleet charging site, with each also using EVgo Optima as their fleet management software. While it is still early days in fleet electrification, we are excited to have EVgo's business grow alongside the EV investments fleet operators are making as more vehicles become available to them. EVgo's partnership with government policymakers is critical to our success as well. The federal government recently announced it is taking more bold action to spur even faster growth of electrification. On top of the investments under the Bipartisan Infrastructure Law and the Inflation Reduction Act that we discussed on our last earnings call, in April, the Biden administration announced a tighter overall regulatory framework for the auto industry, including new vehicle emission standards through 2032.

MHS a class eight truck fleet and a national food and beverage company are each building their second EV go dedicated fleet charging site with each also using easy go optima as their fleet management software.

It's still early days in fleet electrification, we're excited to have <unk> business grow alongside the EV investments fleet operators and I think as more vehicles become available to that.

We think those partnerships with governments policymakers is critical to our success as well and the federal government recently announced it is taking more bold action to spur even faster growth of electrification.

On top of the investments under the bipartisan infrastructure law and the inflation reduction that we discussed on our last earnings call in April the Biden administration announced a tighter overall regulatory framework for the auto industry, including new vehicle emission standards through 2032.

Cathy Zoi: Once the new emission standards are in place, the EPA estimates that EVs could account for 60% of all new passenger car sales by 2030 and 67% by 2032. Notably, this would surpass even BNEF forecasts. Returning to the $5 billion in federal funding through the NEVI program that I just mentioned, the latest is that this particular tailwind is more like a tail breeze at the moment, directionally terrific, but moving more slowly than originally indicated by government officials. The status is this: No states have made NEVI awards yet. Several states have released RFPs and are reviewing proposals from EVgo and others, and the vast majority of states haven't yet solicited proposals from the industry, partially because the states' original program designs needed to incorporate the final program guidelines and Buy America requirements that the federal government issued in February.

Once the new emission standards are in place the EPA estimates that Evs could account for 60% of all new passenger car sales by 2030 and 67% by 2032.

Notably this was surpassed even DNS forecast.

Now returning to the $5 billion in federal funding through the Navy program that I just mentioned.

The latest is at this particular tailwind it's more like a tale breeze at the moment directionally terrific, but moving more slowly than originally indicated by government officials.

The status of this no states have made Debbie awards, yet several states have released Rfps and are reviewing proposals from EV go on others.

And the vast majority of states haven't yet solicited proposals from the industry, partially because of the state's original program beside needed to incorporate the final program guidelines and buy American requirements that the federal government issued in February .

Cathy Zoi: Notwithstanding the current time lag, however, EVgo remains excited about the potential to apply NEVI funds to both owned assets and stations deployed under EVgo eXtend, with the majority of financial benefits likely to be realized in 2024 and beyond. Similarly, we remain enthusiastic about the opportunities for the expansion and extension of 30C tax credits under the IRA. While new guidance for the consumer vehicle tax credit has been issued, the IRS has not yet issued any further implementation guidance for the 30C infrastructure tax credit. The industry is eagerly awaiting Treasury's guidance. Finally, let me turn to the third pillar of EVgo's success, technology innovation. We've been a technology leader in the EV charging space, and innovation continues to be an important differentiator for EVgo, creating value for drivers and for deepening and widening our own competitive moat. I mean, think about it.

Notwithstanding the current time lag. However, easy go remains excited about the potential to apply nearly funds to both owned assets and stations deployed under easy go extend with the majority of financial benefits likely to be realized in 2024 and beyond.

Similarly, we remain enthusiastic about the opportunities for the expansion and extension of 36 tax credits under the IRI, but while new guidance for the consumer vehicle tax credits had been issued the IRS has not yet issued any further implementation guidance for the 30 C infrastructure tax credits.

The industry is eagerly awaiting treasuries guidance.

And finally, let me turn to the third pillar of <unk> success technology innovation.

We've been a technology leader in the EV charging space and innovation continues to be an important differentiator for you to go and creating value for drivers and for deepening and widening our own competitive moat.

I mean think about it now that we can all do one click ordering on Amazon or cashless car service with an app or electronic boarding passes when we fly it's sometimes hard to remember the overtime really less than 10 years ago. When we had the place orders by phone or cash from an ATM or stand in a long line of the air.

Cathy Zoi: Now that we can all do one-click ordering on Amazon, or cashless car service with an app, or electronic boarding passes when we fly, it's sometimes hard to remember the olden times, really less than 10 years ago, when we had to place orders by phone or get cash from an ATM or stand in a long line at the airport to get a paper boarding pass. The EV industry is young. Our aim at EVgo is to make the EV charging experience as seamless as one-click ordering. This requires a highly sophisticated approach to our own technology. While we don't manufacture the charging hardware, we painstakingly specify the attributes of each charging product we deploy, undertaking rigorous pre-market testing in our lab related to charger performance, interoperability, and reliability.

For it to get a paper boarding pass.

The industry is young and are aiming to go with to make the EV charging experience as seamless as one click ordering.

This requires a highly sophisticated approach to our own technology.

Well, we don't manufacture the charging hardware, we painstakingly specify the attributes of each charging products, we deploy undertaking rigorous pre market testing in our lab related to charter performance interoperability and reliability.

Cathy Zoi: In fact, a couple of weeks ago, EVgo hosted research leaders from a number of the Department of Energy's National Laboratories for a detailed run-through of the anatomy of a charging session and the industry-wide imperatives for creating uniform reliability and enhanced customer experience. As you've heard me say, EVgo's fast chargers are complex machines that run hundreds of thousands of lines of code and connect in real time to our network management platform and customer-facing applications, which in turn run millions of lines of code and integrate dozens of additional platforms across the EV ecosystem, such as payment processing, industry and roaming partners, and EV OEMs. The correct functioning of all of which is essential to creating an exemplary customer experience. Practically speaking, EV charges close to 50 different models of EVs on our network today, each with its own unique charging behavior governed by battery performance and software.

In fact, a couple of weeks ago Easy go hosted research leaders from a number of the department of Energy's National Laboratories for a detailed run through of the anatomy of a charging session and the industry wide imperatives for creating uniform reliability and enhanced customer experience.

As you've heard me say if it goes fast Chargers are complex machines that run hundreds of thousands of lines of code and connect in real time to our network management platform and customer facing applications, which in turn run millions of lines of code and integrated dozens of additional platform across the ecosystem such as payment processing.

Industry, and roaming partners and EV Oems the correct functioning of all of which is essential to creating an exemplary customer experience.

Practically speaking EV charges close to 50 different models of Evs, but our network the day each with its own unique charging behavior governed by battery performance in software.

Cathy Zoi: A technology marriage has to work not just between EVgo's charging hardware and full software stack, but also between our EV chargers and the hardware and software of the EV itself, and between EV chargers and driver's cell phones, and between EV chargers and utilities delivering the electricity to the chargers, and between EV chargers and site host retailers, and between the EV charging networks with whom we interoperate. At EVgo, we welcome these demands, and in fact, we've upped the ante, looking beyond basic functionality. We created AutoCharge+ so that drivers can charge their car without swiping a credit card or tapping an app. We built EVgo Reservations so a driver can be sure a charger is available when they need one. We built EVgo Inside so that OEMs could help their customers find the closest charging station in the dash of their EV.

At technology marriage has to work not just between <unk> charging hardware and full software stack, but also between our EV Chargers and the hardware and software of the EV itself.

And between EV Chargers and drive our cell phone and between EV charges and utilities delivering electricity to the charters.

And between EV Chargers and site host retailers and between the EV charging networks with whom we inter operate.

And even though we welcome these demands and in fact, we upped the ante looking beyond basic functionality.

We created auto charge plus so the drivers can charge their car without swiping, a credit card or tapping in that.

We built <unk> reservations. So a driver can be sure of charter is available when they need one we.

We built easy go inside so that Oems can help their customers find the closest charging stations and the dash their EV.

Cathy Zoi: We built Pay with PlugShare to both find chargers and help manage charging, which we are currently piloting at all of EVgo's chargers in the LA area. We've partnered with Amazon so that a driver will soon be able to ask Alexa to help them find a charger. We built EVgo Advantage to give drivers special deals while they charge, and today announced the latest offering here, entering into a new agreement with Audible to bring trial memberships to EVgo customers later in 2023, delivering audiobooks to EV drivers while they charge. From deploying the first 350 kilowatt charger in the US, to pioneering power sharing technology to where we are today, EVgo is setting the benchmarks of what the EV driver experience should be and what our B2B partners will count on when serving their EV driving customers.

We built pay with plug here to both find charges and help manage charging which we are currently piloting in all of <unk> charges in the L. A area.

We've partnered with Amazon because it a driver will soon be able to ask Alexa to help them find a charter.

And we built indigo advantage to give drivers special deals, while they charge and today announced the latest offering here entering into a new agreement with audible to bring trial memberships to <unk> customers later in 2023, delivering audio book EV drivers, while they charge.

From deploying the first 350 kilowatt charter in the U S. The pioneering power sharing technology to where we are today you can go with setting the benchmarks of what the EV driver experience should be and what our <unk> partners will count on when serving their EV driving customers with innovation in our DNA you can.

Cathy Zoi: With innovation in our DNA, you can bet there's more good stuff to come. With that, I'll turn the call over to EVgo CFO, Olga, to give more detail on Q1 results.

That theres more good stuff to come.

With that I'll turn the call over to <unk> CFO Olga to give more detail on first quarter results.

Olga Shevorenkova: Thank you, Cathy. EVgo continues to build on our track record of growth and execution in Q1 2023. EVgo added about 220 new stalls to our network during the quarter, and stalls in operation or under construction were approximately 3,100 at quarter end. Those active engineering and construction stall development pipelines ended the quarter at around 3,500 stalls. Q1 revenue of $25.3 million grew 229% year-over-year. This significant increase in revenue was primarily driven by continued execution of our EVgo eXtend contract with Pilot Flying J in partnership with General Motors, and growing charging revenue. Adjusted gross margin declined from 37.2% in Q1 2022 to 25.3% in Q1 2023 due to accelerated revenue recognition of regulatory credits in Q1 2022 and lower LCFS pricing this year.

Thank you Kathy.

So it continues to build on our track record of growth and execution in the first quarter of 'twenty, One fifth Street.

If you go added about 220, new stores to our network during the quarter.

And installed and operational under construction were approximately 3100 at quarter end.

Both access engineering and construction development pipeline ended the quarter at around 3500 stores.

First quarter revenue of $25 $3 million grew 229% year over year.

This significant increase in revenue was primarily driven by continued execution of our Eva go expand construct with pilot flying J in partnership with General Motors.

And growing charging revenue.

Adjusted gross margin declined from 37, 2% in the first quarter of 2022 to 25, 3% in the first quarter of 'twenty one to three.

Due to accelerated revenue recognition of regulatory credits in Q1, 2022, and la where else CFS pricing this year.

Olga Shevorenkova: Adjusted gross margin of 25.3% in Q1 2023 improved versus Q4 2022 due to annual breakage revenue recognition in the network revenue OEM business line of approximately $2.1 million. Adjusted G&A as a percent of revenue declined from 273% in Q1 2022 to 105% in Q1 2023, illustrating the leverage EVgo continues to realize with investments in G&A, both administrative and growth-driven payroll and non-payroll investments. We reported adjusted EBITDA of -$20.1 million in Q1 2023 versus -$18.2 million in Q1 2022. Cash, cash equivalents, and restricted cash were $163.8 million as of 31 March 2023. CAPEX was $65.2 million during Q1, as EVgo continued to execute against our long-term charger deployment plan. Roughly 50% of this number was driven by equipment prepayments and delivery for the rest of 2023 needs.

Adjusted gross margin of 25, 3% in the first quarter of 2023 improved versus the fourth quarter of 'twenty one to two due to annual break its revenue recognition in the network revenue OEM business line of approximately $2 1 million.

Adjusted G&A as a percent of around the new <unk>.

Klein from 273% in the first quarter of 2022.

205% in the first quarter of 2000 went to St.

Illustrating the leverage he would go continues to be alive.

Its investments in G&A, both administrative and grows driven payroll and non payroll and bathroom, we reported adjusted EBITDA of negative $21 million in the first quarter of two 1% to swing.

First was negative $18 $2 million in Q1 'twenty to 'twenty two.

Cash cash equivalents and restricted cash were 106 to three $8 million as of March 31st two lenses one history cop.

<unk> was $65 $2 million during the first quarter as <unk> continued to execute against our long from charter deployment plan.

Roughly 50% of this number was driven by equipment prepayments.

Deliveries for the rest of consequence of screen needs. That's cutbacks levels are not representative of this year's quarterly run rate in April it was all raised $5 $7 million in that proceeds by issuing approximately 892.

Olga Shevorenkova: Such CAPEX levels are not representative of this year's quarterly run rate. In April, EVgo raised $5.7 million in net proceeds by issuing approximately 890,000 shares of Class A common stock during an at-the-market equity offering. We anticipate using the ATM opportunistically going forward, and we have $183.5 million of capacity remaining under the ATM program. Now looking at network trends in the first quarter. As auto manufacturers release new models of EVs and ramp production, electric vehicles in operation, or VIO, increases steadily, driving EVgo revenues as EVgo's business model is centered around the leverage to EV adoption, as Cathy Zoi mentioned. At the end of 2022, there were 2.2 million EVs in operation, and it is estimated that during the first quarter of 2023, this climbed by another 300,000 EVs to 2.5 million overall on the US roads.

<unk> thousand shares of class a common stock.

And at the market equity offering.

We anticipate using the ATM opportunistically going forward.

And we have $183 5 million of capacity remaining under the ATM program now looking at network trends in the first quarter.

As out of manufacturers release, new models of Evs and ramp production electric vehicles in operation or var.

Increasing steadily driving even though revenues and EBIT goes business model is centered around the leverage to the adoption as Kathy mentioned.

At the end of two answers one to two.

Two points to make on Evs in operation and it is estimated the viewing the first quarter of 2023. This climbed by another 300000 movies to two and a half million overall on the U S roads.

Olga Shevorenkova: EVgo's network throughput continued to significantly outpace our operational stall growth and EV VIO growth. Total kilowatt hours dispensed were 17.9 million, a 124% year-over-year increase compared to operational stall growth of 33% and EV VIO growth of 53% over the same time period. This is driven by an increasing contribution of rideshare traffic on our network. As a reminder, an average commuter drives 11,000 miles a year. An average rideshare driver drives 40,000 to 60,000 miles a year when driving full-time and relies much more on DC charging. Network throughput also rose as a result of increased EV battery sizes and higher reliance on public charging by our newer retail customers versus early adopters who relied mostly on home charging. Average monthly throughput per active customer has increased by more than a third over the last 12 months.

If it goes network throughput.

Continued to significantly outpace our operational store growth and E V O O growth total kilowatt hours. The spends were 710.9 Neil N.

124% year over year increase compares to operational growth of 33% and <unk> growth of 53% over the same time period.

This is driven by an increasing contribution of rideshare traffic on our network.

As a reminder, an average commute to drive 11000 miles a year and the average rideshare driver drive what is a 60000 miles a year when driving full time.

And then realize much more on D C charging.

Network throughput also rose as a result of increased EV battery sizes and higher reliance on public charging by our newer retail customers.

Versus early adopters, who relied mostly on home charging.

Average monthly throughput per active customer has increased by more than a third over the last 12 months.

Olga Shevorenkova: EVgo markets with high EV adoption rates continue to demonstrate solid utilization levels. California shows consistent double-digit utilization, with Los Angeles being the top market and posting 14.4% utilization in Q1. Nationally, key markets in Texas, Florida, and Nevada are among the top 10 performers with consistent double-digit utilizations as well. When looking at top-performing stalls on EVgo network, all in high EV adoption rates markets, we are clearly observing that they are already in line with our long-term per-stall annual revenue targets. Average revenue per stall is expected to further increase, driven by high utilization with more EVs on the road and higher charge rates of the EVs themselves.

Even though markets with high adoption rates continued to demonstrate solid utilization levels.

Foreign you shows consistent double digit utilization with Los Angeles being the top markets and passing 14, 4% utilization in Q1.

Nationally key markets in Texas, Florida, and Nevada, I, among top 10 performers with consistent double digit utilization as well.

When looking at top performing stores, if you go in that book.

All in high EV adoption rates markets.

We're clearly observing that they all right in line with our long term for Stahl and revenue targets.

Average revenue per store is expected to further increase driven by high utilization with more evs on the road and highest charge rate probably the easiest to themselves.

Olga Shevorenkova: When taking a look at top 10% stalls and top 20% stalls measured by utilization on our whole network, as Cathy mentioned, we're observing consistent utilization in excess of 25% and 20% respectively, clearly signaling potential for additional markets to realize such levels with increasing EV adoption. The average charge rate realized at EVgo sites is increasing due to improving battery capabilities of the EVs and EVgo's ongoing efforts to switch to higher-powered equipment. These higher average charge rates on our network mean more kilowatt hours dispensed every hour when somebody is charging, driving profitability of our projects up. Average network charge rate is poised for an increase over time, further driven by new vehicles with bigger batteries coming online. Such network trends are reinforcing our thesis on the business being leveraged to EV adoption and proving the advantages of our scalable business model underpinned by attractive public network project economics.

When taking a look at top 10% install.

Top 20% of installed measured by utilization on our whole network as Kathy mentioned were observing consistent utilization in excess of 25% and 20% respectively.

Clearly signalling potential for additional markets to realize such levels was increasing EV adoption.

The average charged rate realized that even though the size is increasing due to improving Bachelor of capabilities of the east.

And even those ongoing efforts to switch to higher powered equipment.

This higher average charge rates are now in that book men more kilowatt hours expense every hour when somebody is charging.

Driving profitability at all.

Uh huh.

Average network charge rate is poised for an increased overtime further driven by new vehicles was big of batteries coming online.

Such network trends are reinforcing our seizes on the business being leveraged to EV adoption and proving the advantages of our scalable business model underpinned by attractive public network project economics.

Olga Shevorenkova: As a reminder, we deploy capital following rigorous investment criteria and underwrite our portfolio to robust double-digit pre-tax unlevered IRRs. For the assets deployed in the next 24 months, we expect our CapEx per stall to be between $130,000 and $150,000, with roughly 60% of it being labor and materials, and the remainder being equipment with an eight to 10-year useful life assumed. Useful life range depends on the type of charger deployed and the site type. CapEx per stall is anticipated to decline as we near 2030, driven by the industry learning curve on the equipment side. Offsetting the capital cost is funding from partner automakers and/or grant funding at the local, state, or federal government level. As is central to our business thesis and the commercial opportunity in front of us, EVgo plans to continue to grow our public network as EV adoption increases.

As a reminder, we deploy capital following rigorous investment criteria and underwrite our portfolios total boss double digits pretax Unlevered IRR.

Well the assets deployed in the next 24 months, we expect our capex for <unk> to be between 130000 and.

150000, with Rockwood, 60% of it being labor and materials and the remainder being equipment was an eight to 10 year useful life of field.

Useful life range depends on the type of charge are deployed and the size type.

Capex to install is anticipated to decline as we near Taunton facility driven by the English through learning curve on the equipment side.

So I think the capital cost is funding from partner automakers and or grant funding at the local state and federal government levels.

Yeah.

As a central to our business phases, and the commercial opportunity in front of us.

Got plans to continue to grow our public network as EV adoption increases.

Olga Shevorenkova: The upshot is that when there are 40 million electric vehicles on US roads, EVgo expects to operate 25,000 to 30,000 public stalls, all underwritten to our internal profitability hurdles. As we discussed during our last earnings call, the public network is our core business and is expected to contribute 75% to 80% of EVgo revenues over time. Our Fleet Hub, Extend, and ancillary businesses will remain natural and accretive complements to our core business model, providing an optimal risk return profile to EVgo. EVgo is affirming our full-year revenue guidance of $105 million to $150 million and 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. As a reminder, this metric includes PFJ stalls.

The upshot is that one there are 40 meal in electric vehicles on U S throne.

We expect to operate 25 to 30000 public stalled.

All underwritten to our internal profitability hurdle.

As we discussed during our last earnings call the public network, because our core business and is expected to contribute 75% to 80% of either go revenue overtime.

Our fleet have expand and ancillary businesses, what would remain Nashville, and accretive complements to our core business model.

And then optimal risk return profile to illegal.

Even though it is affirming our full year revenue guidance.

$105 million to $150 million and adjusted EBITDA of negative seven to eight to negative $60 million. We expect to have a toggle of 3400 to 4000 DC fast charging adults in operation under construction.

The end of 2023 as a reminder, this metric includes P J salt.

Olga Shevorenkova: Given the variability of revenue recognition timing of several of our large partner agreements, we anticipate some sequential fluctuations in revenue, in particular on the eXtend revenue line. For Q2 2023, our network throughput is increasing compared to Q1, we expect sequential revenue growth in our core charging business throughout 2023. With this, I will turn the call over to the operator for questions.

Given the variability of revenue recognition timing of several of our large partner agreements, whereas dissipates some sequential fluctuations in revenue in particular on the extend the revenue line.

The second quarters Twins, just wanted to see our networks throughput is increasing compared to Q1, and we expect sequential revenue growth in our core charging the business throughout 2023.

With this I will turn the call over to the operator for questions.

Yeah.

Operator: As a reminder, in order to ask a question, press star and the number one on your telephone keypad. Please limit your question to one initial and one follow-up question. Our first question will come from Gabe Daoud. Your line is open.

As a reminder, in order to ask a question press star and the number one on your telephone keypad. Please limit your questions to one initial and one follow up question.

And our first question will come from Gaped out your line is open.

Gabe Daoud: Thanks. Morning, Cathy and Olga and everyone. Thanks for well-prepared remarks. I guess I was hoping we can maybe just revisit some of the comments around CAPEX and how Q1 is not really representative of the quarterly run rate. Maybe Olga, could you just help us understand how that trend's moving forward? Also, what does that mean to 2024 stalls if you're not prepaying for as much equipment this year given the step down in capital?

Thanks, Good morning test in Oregon, Olga and everyone. Thanks for all the prepared remarks.

I just was hoping we could maybe just revisit.

Some of the comments around Capex and how <unk> is not really representative of the quarterly run rate.

So maybe older could you just help us understand how that.

Brian's moving forward.

And then also what does that mean for 2024.

All of that.

Prepaying for as much equipment this year, given the step down in capital.

Olga Shevorenkova: Yeah. That's a good question. Thanks so much, Gabe. Let me start from the start. We already paid roughly $70 million for 2023 assets last year. We just spent a little over $60 million for Q1 this year. Most equipment, which were prepaid, will be used for 2023 assets. Some of that equipment will be used for 2024 assets. There is a mix, obviously heavily loaded towards 2023 usage, but there is a 2024 usage. The quarterly CAPEX is expected to go down. However, that does not mean that we will not be preparing for 2024. We will. We will start doing it in Q3 and Q4, and we will land the year with assets under construction in line with our 2024 expectation. We're not worried about that.

Yeah. So so that's a good question. Thanks, so much Gabe so let's start from the start.

We already paid Iraq was $17 million for 2023 assets last here, just spend 60 meal and a little over 60 million with the first quarter. This year.

Most equipments, which were prepaid will be used for 'twenty, one to three assets. Some of that equipment will be used for 2024 assets. So there is a mix obviously heavily loaded towards sponsors wants us to use it but there is a 2024 usage so the capex.

The quarterly Capex is expected to go down however that does not mean that we will not be.

Preparing for 2024, we will we will start do windows in Q3, and Q4, and we will land the year with assets under construction in line with our transcon before expectation. So we're not worried about that and even again. It's also there was a quite large amount.

Olga Shevorenkova: Even again, those are quite large amounts we already spent for 2023 assets, as you can judge by looking at Q1 and how much was spent on them last year. It all makes sense for us. It all positioning us for the optimal cash spend and the optimal start of 2024 in terms of targeted stalls and operations.

What are the span for 'twenty to 'twenty three our system you can judge by looking at the first quarter and how much we spend on them last year. So it all it all makes sense for us at all it'll position us for the optimal cash spans and the optimal start after once it once before in terms of targeted.

Stores in operation.

Gabe Daoud: Got it. Thanks, Olga. That's helpful. Again, I guess the $164 million or so on the balance sheet, that's enough to get you through to 2024. Is that right?

Got it. Thanks. That's helpful. So then again I guess, the $164 million or so on the balance sheet. That's enough to get you through to 2024 is that right.

Olga Shevorenkova: Through the majority of 2024. Correct. The same-

So it wasn't my daughters of floods Atlanta four correct.

Gabe Daoud: Okay

Olga Shevorenkova: the same guidance we gave, or the same notion we gave during our last call, that's enough cash to stretch through the majority of 2024.

Okay. The same guidance, we gave oh the same notion we gave a in all during our last call that's enough cash distress in the majority of 2024.

Gabe Daoud: Okay. Understood. Great, thanks. Just a quick follow-up. You mentioned, Cathy, the NEVI maybe being a tail breeze and maybe being a bit slower than anticipated, could you maybe just given some of the Buy America compliant issues around the hardware, can you maybe give us an update on where your suppliers are in that respect in terms of onshoring some US production? Thanks, everyone.

Okay understood great. Thanks, and then just a quick follow up you mentioned Kathy.

Debbie maybe until breeze, and maybe being a bit slower than anticipated, but could you maybe.

Just given some of the biomarker compliant issues around the hardware and can you maybe give us an update on where your suppliers are in that respect in terms of our insurance from U S production. Thanks, everyone.

Cathy Zoi: Yeah. Thanks, Gabe. Well, look, our two suppliers that we talked about last time, Delta and Signet, have factories underway, and every indication is that they're full speed ahead, and that's all going to plan. We should have more specificity for you probably by the next earnings call about the guidance. We're still waiting for some guidance from the Department of Transportation, the Federal Highway folks, on certain of the Buy America provisions. We've also got, again, Jonathan Levy, our public policy expert, on the phone. Jonathan, did you want to add anything?

Yeah. Thanks, Gabe so where are our two suppliers that we talked about last time on the Delta Signet has factories underway and every indication is that there are full speed ahead, and that's all going to plan and we should have more specificity for you probably by the next earnings call about about the guidance, we're still waiting from some.

From the Department of Transportation Federal Highway folks on certain of the buy American provisions. We've also got again, Jonathan Levy, our public policy experts.

On the phone Jonathan do you want to add anything.

Jonathan Levy: I guess just that last point, Cathy, you were making is that FHWA has indicated to a number of policy folks that they're getting a lot of questions about their Buy America guidance, and therefore, they're planning on issuing an FAQ at some point soon. We've been very engaged with folks in the administration about the kind of unintended consequences as well as the practical realities of Buy America as currently done. As Cathy has noted in every forum, we've been working with our suppliers to the U.S. manufacturing for a long time, and so we're still working assiduously with them. In the meantime, there's some clarity that we're expecting to hopefully come soon from the federal government.

I guess just that last point Kathy you were making is that <unk> indicated to a number of policy folks that they're getting a lot of questions about their buy America guidance and therefore, they're planning on issuing an essay queue at some point too. So we've been very engaged with broken the administration about the.

Kind of unintended consequences as well as the practical realities of buy America as currently done as Kathy noted in every forum, we have been working with our suppliers to the U S manufacturing for a long time is that we're still working assiduously with them, but in the meantime, there is some clarity that we're expecting to hopefully come soon from the federal government.

Gabe Daoud: Got it. Thanks, Jonathan. Thanks, everyone.

Got it got it thanks, Jonathan Thanks, everyone.

Operator: The next question comes from James West. Your line is open.

And the next question comes from James West Your line is open.

James West: Hey, good morning, Cathy, Olga.

Hey, good morning, Kathy Olga.

Cathy Zoi: Morning.

Good morning.

Olga Shevorenkova: Hi, James.

James West: Hey. Cathy, or Olga, what's the gating factor now in terms of your build-out of additional infrastructure, additional stalls? Is it capital? Is it the utilities? I know you don't want to be too far ahead of the vehicles arriving, if you could push it harder and go faster, what could hold you up from that? Why would you not push it harder, I guess?

So cut me off.

The what's the gating factor now in terms of <unk>.

Your build out of additional infrastructure digital stores as it is it capital is at the utilities I know you don't want to be too far ahead of the.

The vehicles are rising, but kind of what's the what are the what are the if you could push it harder and go faster what would what the whole job from that.

Why would you not push order I guess.

Cathy Zoi: Just to your point about the utilities, the utilities continue to be a near-term gating item, but it's almost like a predictable gating item now. Last quarter, we had a couple hundred stalls waiting utility energization. Again, as I think I've said before, James, I mean, that's just a matter of time whether some of them have been waiting for the utilities to show up to do the final inspection for 6 weeks. They eventually will show up. That's not a near-term gating item. I mean, we've got a macro tailwind in the sector that is obviously pushing up into the right, as you've heard me say many, many times. We have identified thousands of prospective stalls that'll create NPV for us with our partners.

So to your point about the utilities the utilities are a.

They continue to be a near term gating item, but it's almost like a predictable gating item now. So we had last quarter. We had a couple of hundred called awaiting utility Energizer issued.

And again I think I've said before James I mean, that's just a matter of time, whether it's like and some of them had been waiting for the utilities to show up to do the final inspection for six weeks, but they eventually will show up. So that's that's that's not a near term gating item I mean, the we got a macro tailwind in the sector that is obviously pushing up into the right as you as you've heard me say many many times.

We have identified thousands of perspective stalls it'll create NPV for us with our with our partners one of the reasons I lean so far into our marquee partnerships. If you could go is that they continue to bring us good good good prospects. So over the next five years, yeah, we could put more good capital to work.

Cathy Zoi: One of the reasons I lean so far into our marquee partnerships at EVgo is that they continue to bring us good prospects. Over the next 5 years, yeah, we could put more good capital to work. At the moment, we've got a great plan to continue to build and go up into the right for 2023, and we've got the capital to get us through all of 2023 and most of 2024.

But at the moment, we've got a great plan continue to be able to go up into the right for 'twenty three and we got the capital together through 2023 and most of the 24. So it's a it's just really a question of how fast we want to lean in to be kind of.

James West: Right.

Cathy Zoi: It's just really a question of how fast do we want to lean in to be going at the right pace, given the macros of the overall economy.

Going at the right pace, given the macro the macros of the overall economy.

James West: Okay. It makes sense. I know you've been testing a lot of different pricing strategies over the last several quarters. I was curious how that's been going. I know lower pricing at off-peak times, things like that. Could you maybe update us on how those plans are progressing and what you're seeing in terms of customer behavior?

Okay. It makes sense and then on <unk>.

<unk> been testing a lot of different pricing strategies.

Over the last several quarters I'm, just curious how that's been going well.

Lower pricing at off peak times things like that could you maybe update us on how those plans are progressing and kind of what youre seeing in terms of customer behavior.

Olga Shevorenkova: Yeah, sure. What we're seeing in terms of customer behavior is a very strong affinity towards subscription plans. We have 3 different tiers and continue to experiment because the subscription plan usually doesn't just include actual subscription plus access to a cheaper per kilowatt-hour rate, but also some other perks like double amount of points or free reservations. We continue to experiment with those bundles, but we see a very strong uptake on all 3 different subscription types we have. That means subscriptions are here to stay and will be an essential part of our business going forward. In terms of the time of use rates, we're clearly observing that our more price-sensitive customer segments, such as rideshare, they're very, very reactive towards those signals, and we see how they're altering their behavior to show up at our network at cheaper times.

Yeah sure. So what was seen in terms of customer behavior is a very strong affinity towards subscription plan.

Three different tiers and continues to kind of experiments because the subscription Glenn usually doesn't just include actual subscription plus access to cheaper per kilowatt hour rate, but also some other perks like double.

Some of the points off the reservation. So we'll continue to experiment with those bundles, but we see a very strong uptake on all three different subscription types would have so that means subscriptions are here to stay and will be essential part of our business going forward and on in terms of the time of use rates with <unk>.

We'll observe and that our more customer sensitive.

So the more price sensitive customer segments, such as rideshare, the very very reactive towards those those signals and we'll see how they alter their behavior to show up at all on that book of cheaper times. However, when we're looking at that kind of like daily commuters with.

Olga Shevorenkova: When we're looking at daily commuters, we see some response dependent on locations, and then there is a wide range of maybe more affluent locations across the key cities where customers are just not as price sensitive as we originally thought. All of our thesis has remained true, and we continue to refine those and our Chief Revenue Officer, who joined us a few months ago, that's one of the main areas of her focus. She spends a lot of time on it. We'll be updating the market as we learn more interesting insights from that.

Which is some response depending on location and then there is a wide range of.

Maybe more affluent locations across the key stated where customers are just not us.

Rate sensitive as we originally thought so all of US remain true and we'll continue to.

To refine those and our Chief revenue Officer, who joined US a few months ago. That's one of the main area of cobalt, which has been a lot of time on it but we'll be updating the market as we learn more interest and insights from that.

James West: Okay, got it. Thanks.

Okay got it thanks.

Operator: The next question comes from Doug Becker. Your line is open.

Okay.

The next question comes from Doug Becker Your line is open.

Doug Becker: Thank you. The record number of installations was highlighted during the quarter. You just addressed some of the gating items. Is it reasonable to assume installations increase each quarter over the course of the year based on what you're seeing today?

Thank you.

So the record number of installations was highlighted during the quarter you just addressed some of the gating items is it.

Reasonable to assume installations increase each quarter over the course of the EU based on what Youre seeing today.

Cathy Zoi: We've got a plan that is probably relatively stable over this year in terms of numbers that are going to go live, but the practical reality is that it always bounces around a bit. It's like the gating item, the utilities, it's nearly impossible for us to predict which utility inspectors are going to show up in which regions of America and which won't. We've got a general plan. We've got the target for the full year that we're confident of hitting. That might just bounce around a little bit as we go through the course of the year.

We've got a plan for us we've got a plan that.

It is probably relatively stable over this year in terms of numbers that are gonna go lives, but the practical reality is that it always bounces around a bit it sounds like the gating item in the utilities. It is nearly impossible for us to predict which utility inspectors are going to show up in which regions of America, and which won't so we've got a general plan, we know well.

We've got the target for the full year that we're confident of hitting that Mike just bounce around a little bit as we as we go through the course of the year.

Doug Becker: No, completely makes sense. The follow-up, kind of a pointed question, but consensus revenue is toward the high end of the full-year guidance range. Is that reasonable based on everything you're seeing, and particularly in light of your commentary on the NEVI program and just the volatility with PFJ that you've alluded to previously?

Completely makes sense and then the follow up kind of a pointed question, but consensus revenue was toward the high end would be the full year guidance range.

Is that reasonable based on everything youre, seeing and particularly in light of the commentary on the <unk> program and just the volatility with the P. S. J.

A alluded to previously.

Olga Shevorenkova: Yeah, we won't be refining our range at this time. We guided the market only a few weeks ago during our Q4 call. Not much of our new information has come in since then, we probably, next time we speak, will have a more refined strategy to inform the market on how the rest of the year will look like, and everybody can judge vis-a-vis consensus. At this time, we will remain committed to our wider range. Kind of repeating all the reasons we explained last time in terms of bubble qualification, PFJ execution, and some still volatility on EV sales front. EV sales started off the year quite strong. We don't see any recession signs, but we're observing. We're still not even halfway through the year. At this time, we won't comment on a more narrow range of our guidance than we already gave.

Yeah, well what won't be refine in our range at this time, we guided the market only a few weeks ago during our Q4 call.

Much of our new information has come in since then but we probably next time, we speak will have or more to fund.

So rather than to inform the market on how the rest of the year will look like and then everybody can jobs because of the concerns but at this time.

<unk> committed to our wider range I'm kind of repeating all the reasons. We explained last time in terms of Bubba qualifications beef jags of Houston, and some still volatility on EV sales fronts. It is sales started off the year quite strong we don't we don't see any recession science, but we're observing with so.

We're not even halfway through the year. So at this time, we won't comment on a more narrow range of our guidance.

Well in the game.

Doug Becker: Fair enough. Cathy, Olga, thank you.

Fair enough.

Kathy Thank you.

Olga Shevorenkova: Thank you.

Cathy Zoi: Thank you.

Thank you. Thank you.

Yeah.

Operator: Your next question comes from Bill Peterson. Your line is open.

Your next question comes from Bill Peterson Your line is open.

Bill Peterson: Yeah. Hi, good morning, and thanks for taking my questions. You saw the EVgo team at ACT Expo last week, and I'm sure you had a number of conversations with fleets, but I guess specifically, are the fleets really focusing on the eXtend offering, or are they more like your rideshare and autonomous vehicle partners that maybe prefer to use your own owned and operated network?

Yeah, Hi, good morning, and thanks for taking my questions.

You saw that.

<unk> seen that extra Expo last week and I'm sure you had a number of conversations with fleets, but I guess specifically.

<unk>.

Focusing on the extend offerings or more like a rideshare or the comments, we have partners that maybe you'd prefer to use your own owned and operator networks.

Cathy Zoi: Yeah, I'm going to toss that one to Jonathan. Jonathan.

Yeah, I'll do that.

I'm going to toss that one to Jonathan Jonathan.

Jonathan Levy: Yeah, it's a great question. I think when we think about the eXtend offering, we typically think about it as a white label offering for retail. You can think of the same kind of logic about the flexibility that EVgo has for our fleet offerings. You're very familiar with what we do with Uber and Lyft, where they access our public network, but we also have the flexibility on where is it that we own chargers that customers operate, that customers use, sometimes at dedicated stations like we've been doing with the autonomous vehicle fleets. Most of the folks looking to electrify their depots in the fleet space, they're looking to own the charging themselves, and so that is a little bit more like an analog to that eXtend business model. I think some of that is driven by the incentive structures.

Yes, it's a great question. So I think when we think about the extended offering we typically think about it.

A white label offering for retail.

But you can think of the same kind of logic about the flexibility that <unk> has for fleet operators you are very familiar with what we do with Uber and Lyft with access our public network, but we also have this flexibility on where is it that we own chargers the customers operate as customers use sometimes a dedicated stations like we've been doing with the autonomous vehicle fleets, but most of the folks looking to electrify.

Neither depots in the fleet space Theyre looking to own the charging themselves and so that is a little bit more like an analogue to that extend the business model and I think some of that is driven by the incentive structures a lot of the fleet's doing early pilots are pursuing funding for those projects, which gives them an incentive to buy it whereas we do know there.

Jonathan Levy: A lot of the fleets doing early pilots are pursuing funding for those projects, which gives them an incentive to buy it. Whereas we do know there are some others out there that will have more of an interest of more of a charging as a service offering that EVgo also has, where we retain ownership and the customers then can get more of a monthly fee model. I hope that answers the question. The concept just being there's different solutions for different fleets, but the majority of the depot fleet operators are looking to own that charging themselves at this point.

Or some others out there that will have more of an interest of more of a charging as a service offering that you could go also has where we retain ownership in the customers that can get more of a monthly fee model.

The answer to the question of the concept is being there's different solutions for different fleets, but the majority of the depot fleet operators are looking to own that charging themselves at this point.

Cathy Zoi: Jonathan, sorry, Bill, I was just going to add, we've got a couple of contracts with the autonomous fleet guys where we own the assets. Again, what we've said sort of continuously, that we will meet the customers where they are, as long as we can create a nice return profile for EVgo commensurate with the risks that we're taking. So far, we can do the EVgo eXtend behind the fence with some fleets, and we can do the asset ownership model with others.

We're just not Jonathan.

Yeah.

Sorry, sorry, so I was just going to add like I said, we've got a couple of contracts with the autonomous fleet guys, where they want what we own the asset. So again. It's this is what we said sort of continuously that we will we will meet the customers where they are as long as we can create a nice return profile for EV go commensurate with the risk that we're taking so and so far.

We know we can do the Ala extends behind defense with some place that we can do the asset ownership model with others.

Bill Peterson: Yeah. That's exactly it. Okay, that makes sense to me. Second question. You talked about utilization and Los Angeles being the highest market. If you could give us a feel for where that is and maybe looking ahead, where would you want utilization to level out at? Would you prefer to drive it higher in LA, for example, or would you want to kind of keep it where it is and just add sites to match the growth of cars in the market? Just trying to get a feel for how you, especially coming out of the pandemic, where you would like utilization to be ideally to not create too much friction, but obviously give you the best return.

Yes, yes, that's exactly right, okay that makes sense to me.

Second question, So you talked about utilization in Los Angeles being the highest market.

If you could give us a feel for where that is.

Looking ahead, where would you want utilization to level out past would you prefer to drive it higher in Norway. For example, or would you want to kind of keep a word.

Kind of add sites to kind of match the growth of <unk>.

Cars in the market just trying to get a feel for how you, especially coming out of the pandemic, where you would like some utilization could be arguing about trade too much friction, but obviously give you the best return.

Olga Shevorenkova: Yeah. Los Angeles is, I mentioned it during my prepared remarks, is a little over 14% for the Q1. It is one of our best performing markets. In terms of where we want utilization to be over time, we think midterm when we underwrite assets, of course, we want it to be higher, and we already observe high utilizations in certain pockets of our network, like top 10% of our performance stall consistently illustrate utilizations in excess of 25%. That's probably a good indicator where the overall network can go over time. Now, when we think about near term, here our focus is on growing the network and growing the throughput on the network. There could be some near-term fluctuations in utilization. Well, let's say there is a quarter when we build a little faster than the throughput has grown.

Yeah, So Los Angeles as I have mentioned this during my prepared remarks is a little over 14% for the for the Q1, but it is one of our best performing markets in terms of where we want utilization to be over time, we think mid term when we underwrite the OSM. So of course, we wanted it to be higher.

And we already observed high utilizations in certain pockets of our network like top 10% of all perform install consistently illustrates utilization in excess of 25%. So that's that's probably a good indicator of where the overall macro can go over time now when we think about near term.

Uh huh.

Here, our focus is on growing the network and grow in the throughput on the network there could be some.

Near term fluctuations in utilization, while let's say that in the quarter, when we build a little faster than the throughput because grow now that wasn't this particular quarter, but that's what I can't happen.

Olga Shevorenkova: Now, that wasn't this particular quarter, but that quarter can happen. That is okay with us. In the near term, when the network is still small and we're really focused on positioning for upcoming growth, you could see some fluctuations. Mid-term to long-term, we, of course, are very much focused on growing utilization and expect that all of the key markets will start showing high utilization levels in the next few years on a consistent basis.

That is okay with us so in the near term when the network is still small and we're really focused on positioning for our kind of growth you could see some fluctuations midterm to long term. We of course are very much focused on growing utilization and expect that all of the key markets will will start showing high utilization.

Levels in the next few years on a consistent basis.

Cathy Zoi: Yeah. Bill, I just remind you that, in the early days of the Maven program, we had some charging stations up right in the Bay Area where you live, which had over 60% utilization because of rideshare drivers. Now that was a lot. One of the reasons that we have pioneered both the innovative pricing schemes to sort of attract people to off-peak hours and the reservation is that it's not as if we want to stop utilization at 20%, right? What we want to do is enable the tech, the assets to get used optimally by using technology to allow people to go when they want to go, be sure that a charge is going to be there.

Yeah.

Bill I, just just to remind you that that we have like in the early days of the David program. We had some some charging stations up right in the Bay area, where you where you live which had over 60% utilization because of rideshare drivers now that was that that was actually that was a lot, but one of the reasons that we have pioneered both the innovative pricing.

Schemes to sort of attract people to off peak hours and the reservation is it that there is not a it's not as if we want to stop utilization at 20% right. So what we wanted to do is enable the Texas E. The assets to get us optimally by using technology to allow people to.

When they want to go be sure that the charges going to be there.

Bill Peterson: Yeah. Makes a lot of sense. Thanks for the color.

Yes, it makes a lot of construct thanks for the color.

Operator: The next question comes from Maheep Mandloi. Your line is open.

The next question comes from the heap mentally your line is open.

Maheep Mandloi: Hey, morning. Maheep Mandloi from Credit Suisse. Thanks for taking the questions here. Could you give some more details around your arrangement with Chevron, and the eXtend business with it? I believe most of the Chevron gas stations of that 8,000 are owned by small retailers. I just wanted to understand what is the go-to-market strategy there and any exclusivities on EV chargers for that network? Thanks.

Hey, good morning, Mohit Monday from credit Suisse. Thanks.

For taking the question too.

Could you give some more details around your arrangement with <unk>.

Everyone in the axon business with it.

Most of the Chevron gas stations are owned by small retailers.

Just wanted to understand how would you kind of walk through the go to market strategy than any exclusivity on EV charges for a neutral.

Cathy Zoi: Hey, Jonathan, why don't you do this.

Hey, Jonathan unless you do it because you were involved in it.

Jonathan Levy: Yeah

Cathy Zoi: Since you were involved in it?

Jonathan Levy: Yeah, happy to, and thanks for the question, Maheep. I think the way to think about this to start is this is a master service agreement with Chevron, right? That puts us in the position of when those retailers want to do EV charging, we can be that first call, but there will need to be individual agreements executed with them on top of that. Additionally, you should think of it as an opportunity for Chevron and Texaco retailers to be either EVgo site hosts or be able to leverage EVgo eXtend. That's actually a pretty sizable denominator then of locations that could add charging either directly through EVgo ownership, especially as we see the ones that are along NEVI corridors might be a really good fit for those public funding opportunities.

Yes happy to and thanks for the question I think the way to think about this to start is this is a master service agreement with Chevron right. So that's what's in the position of when those retailers want to be maybe charging we can be that first call, but there will need to be individual agreements executed with them on top of that and.

And Additionally, you should think of it as an opportunity for chevron and Texaco retailers to be either <unk> or be able to leverage <unk> extend and thats actually a pretty sizeable denominator, then obligations that could add charging either directly to rejig of ownership.

Especially we see the ones that are along the corridor is might be a really good fit for those public funding opportunities.

Maheep Mandloi: Got it. Any thoughts on when we could expect the first deals with the retailers?

Got it.

The thoughts on when we could expect.

The first students that are good the regionals.

Jonathan Levy: I think it's going to depend on those individual retailers. You rightfully pointed out that those are independent operators, and so as a result, those are going to be some subsequent conversations underneath this master site agreement that we're working together on.

I think it's going to depend on those individual retailers and you rightfully pointed out that those are independent operators and so as a result, those are going to be some subsequent conversations underneath this master site agreement that we're working together on.

Cathy Zoi: Just to add a little bit of color, Maheep.

But just to add a little bit of color me. He made one of those things this chevron and the expansion of our Shanghai Chevron relationships arose in part because of those franchisees are excited about the next frontier, which is providing fueling for easy. So it's it's it's a it's not as if we need to go door knocking.

Maheep Mandloi: Yeah.

Cathy Zoi: One of the things, the expansion of our Shenrock Chevron relationship arose in part because those franchisees are excited about the next frontier, which is providing fueling for EVs. It's not as if we need to go door-knocking and making cold calls to these gas station owners across America. They're excited about it.

And making cold calls to these needs gas station owners across America, they're excited about it.

Maheep Mandloi: Got it.

Got it.

Jonathan Levy: Yeah, that's a great point, Cathy. One of the things that I talk about is the fact that a couple of years ago, the National Association of Convenience Stores and the Fuels Institute were doing a lot of information gathering but weren't very excited about EVs. Now you can't go to any of their conferences without it being mainly about the excitement about EVs, EV charging, the importance of accessing that demographic as a huge growth and valuable audience for them.

That's a great point Kathy one of the things that I talked about is the fact that our cup.

Two years ago, the National Association of convenience stores and fuel Thats too we're doing a lot of information gathering.

Excited about Evs and now you can't go to any other conferences without it being mainly about the excitement about evs EV charging the importance of accessing that demographic as a huge growth in valuable.

Audience for them.

Maheep Mandloi: Right. Moving to the second question, just on cash needs here. We saw an ATM issuance this quarter, or in April rather. Just trying to understand how to think about that through the rest of the year, given all the things you talked about, CAPEX plans and prepayments and eXtend and NEVI over here. Thanks.

Right.

Second question just from Josh needs.

So on the ATM.

<unk> this quarter.

Just trying to understand how to think about.

The rest of the year.

Given all the things you talked about our Capex plans.

And and maybe it wasn't.

Olga Shevorenkova: We're using ATM opportunistically. Last quarter, we didn't raise as much as the trading window was quite short considering the 10-K filing happens a little later in the quarter. We obviously limited on the use of ATM with the daily volumes. We'll access it opportunistically. We'll access any other form of financing or capital opportunistically as well. I'll leave it as that, Maheep.

Yeah, well, here's an ACM opportunistically, we last quarter, we didn't raise that much of the trading window was quite short considering the 10-K filing happens a little later in the quarter. So.

And we obviously are limited on the use of an ATM.

It was a daily volumes, but again, we'll access it opportunistically will access any other form of financing a capsule opportunistically as well so we.

I'll I'll limit of that.

Maheep Mandloi: Got it. Thanks, Olga. I'll take

Well.

Operator: The next question comes from Alex Vrabel. Your line is open.

Oh got it okay.

The next question comes from Alex Gabelli Your line is open.

Alex Vrabel: Hey, Cathy, Olga. Thanks for taking the question. Appreciate at the outset all the commentary about utilization and throughput and some of the drivers there. I'm curious just because, to your point, Cathy, we're sort of in very early stages of Uber offering Comfort Electric, and I think still sort of coming out of the COVID era of people not doing rideshare in the first place. Where would you say we are sort of in the stage of that piece of your sort of network picking up? Also curious, I think, Olga, you mentioned, the acceptance rate on EVs driving higher revenue per stall or per charging session as well. We're definitely seeing that EVs can clearly take a lot more charge than they used to.

Yeah.

Hey, Kathy Olga Thanks for taking the question.

Appreciate it at the outset, all the commentary about utilization and throughput and some of the drivers there I'm curious just because to.

To your point, Kathy we're sort of at the very early stages, Uber offering comfort electric and I think still sort of coming out of.

The Covid era of people not doing rideshare in the first place.

Where would you say we are sort of in the in the stage of that piece of.

Of your sort of network picking up and also curious to think Augie mentioned the acceptance rate on evs driving higher revenue per dollar per charging assertion as well we're definitely seeing this the evs.

We take a lot more charge than they used to.

Alex Vrabel: Curious if you can unpack those two drivers a little further and where you think we are in the process of those things ramping up. Thanks.

Curious if you can unpack sort of those two drivers a little further and where you think we are in the process of those things ramping up thanks.

Cathy Zoi: Yeah. On the Uber-Lyft stuff, we're absolutely in the early innings, both Uber and Lyft have committed to going all electric by 2030 in their fleets. My goodness gracious, Jonathan, do you happen to know what percentage, single-digit percentages that are EVs now with them? It is very early days. The fact that we've tripled year on year from this last quarter to the previous year, it's a great sign. The Uber and Lyft drivers charge seven times more and they need fast charging than the regular retail driver. We're really excited about that one. Olga, why don't you take the second part?

Yeah on the Uber and Lyft stuff, we were absolutely in the early innings in both Uber and Lyft have committed to going all electric by 2030 and their fleets and my goodness gracious in there.

Jonathan do you happen to know what what what percentage of single single digit percentages that are even now with them. So it's it is very very early days. So the fact that we've tripled.

Year on year from this last quarter just the previous year. It's just it's a great site I mean, the Uber and Lyft drivers charge seven times more.

They need fast charging then than ER than a regular the regular retail driver. So we're really really excited about that one.

Why don't you take the second part.

Jonathan Levy: Well, sorry, before you do that.

Olga Shevorenkova: Yeah, sure.

Alex Vrabel: The thing that I think is fascinating is the fact that Uber and Lyft both made that 2030 goal, and both said that right now they're on pace to hit it by 2025. I think you take that, you juxtapose it with the regulatory drivers, especially in California, for more zero-emission passenger miles traveled, and it's a great opportunity, even though it is early days, to continue to see growth in that segment.

Oh I'm sorry before.

The thing that I think especially anything into the fact that Uber and Lyft, both made that 2030 goal and most of that right now they are on pace to hit it by 2025 and I think you take that you just close it with the regulatory drivers, especially in California for more zero emission passenger miles traveled and it's a great opportunity even though it is early days to continue to see growth in that segment.

Olga Shevorenkova: Yeah. On charge rate, what you refer to acceptance rate, we refer to the charge rate. It's for everybody on the call. It's a pace at which the car can accept kilowatt hours flowing into its battery. That is increasing absolutely in line with our expectations. We're doing very detailed modeling, looking at all the upcoming models and projecting vehicle mixes and interplay with our network, trying to discern what charge rates we will be exhibiting. We're definitely in line with what we were expecting, and we are pretty confident that number will continue to go up with new models being introduced into the market and also newer models becoming a majority of vehicles driving around, displacing the older vehicles which are much slower. Very great trend, and we'll continue to ride it at EVgo going forward.

Yeah and on the charge rate with.

Judah front the acceptance rate would've heard the charge right. It's for everybody on the call. It's a pace with which is a car can accept kilowatt hours flowing into its battery that isn't treason, absolutely in line with our expectations. We're doing very detailed modeling looking at all the upcoming models and projections vehicle mixes.

And insulated with Alan that we're kind of trying to discern what charges will be exhibited and were definitely in line with what we were expecting and we are pretty confident that number will continue to go up with new models being introduced into the market and also newer models the comment the majority of it.

Two of vehicles driving around kind of displacing the older vehicles, which are which are much slower so very great trend and we will continue to write it at either go going forward.

Alex Vrabel: Got it. Appreciate the color. One just quick housekeeping, I guess, question for me. Just as far as the pipeline, I know that does tend to move around a little bit as far as the active development pipeline. Narrowed in this quarter versus last. I'm just curious if you can help us frame exactly how that's defined, why it's narrowed in. I know some others were asking as far as your hurdle rate or how you look at future investment and if that's at play. Just if you can help as far as why that moved in quarter over quarter.

Got it appreciate the color.

Just quick housekeeping I guess.

A question for me just as far as the pipeline I know that does tend to move around a little bit as far as the active development pipeline that narrowed in this quarter versus last.

I'm just curious if you can help us frame like exactly how thats defined why it's.

Narrow Dan I know, some others were asking as far as youre sort of.

Earl rate or how you look at future investment and if that's at play, but just if you can help us as far as why that moved in quarter over quarter.

Olga Shevorenkova: Yeah. Our pipeline, everything which has high probability to be built, everything which is green lighted and a little bit before green lighted has high likelihood to be green lighted by our internal hurdles is included into the pipeline. That pipeline is quite large, as you could see. That's 3,500 stalls, and that's on top of stalls and iteration under construction. All of those stalls are the stalls we need to develop over time. Right now, the focus is on execution and construction versus increasing the pipeline. We think the pipeline is very strong for the upcoming year or so. That's why you'll probably not see as much of a pipeline growth versus you should expect to see more stalls going operational.

Yeah, so our pipeline ever since ever seen which has hypermobility build.

Everson Everson, much Oh, which has green lighted a little bit the full green light it has high likelihood to be greenlighted by our internal hurdles is included into the pipeline. The pipeline is quite large and as you could see that three and a half thousand installs and that's on top of cells and the duration.

On the construction so all of those pullets are the stores, we need to develop over time and right now the focus is on execution and construction versus inquiries in the pipeline. We think the pipeline is very strong for the upcoming you know year or so and that's why you'll probably not see as much of a pipeline.

Versus you should expect to see more stone going operational.

Alex Vrabel: Got it. Appreciate the color. I'll take the rest offline. Thanks, guys.

Got it appreciate the color I'll take the rest offline thanks guys.

Operator: Next question comes from Andres Sheppard. Your line is open.

Your next question comes from Andres Sheppard Your line is open.

Andres Sheppard: Hey, good morning, Kathy. Good morning, Olga. Congratulations on the quarter, and thanks for taking our question. A lot of my questions have been asked. Maybe I want to touch on liquidity for a second. $164 million, roughly, in liquidity versus about $247 million in Q4 of last year. That's about an $80 million, I guess, reduction in cash. I just want to better understand for you, funded through the majority of 2024, help me connect the dots. Are we including the opportunistic ATMs throughout the year? Are we including NEVI funding in that assumption? I'm just trying to get a better understanding on.

Hey, good morning, Kathy Good morning, Olga congratulations in the quarter into thanks for taking our question a lot of my questions have been asked maybe I wanted to touch on liquidity for a second.

So $164 million roughly in liquidity versus about $247 million in Q4 of last year.

It's about an $80 million reduction in debt and cash.

I just wanted to better understand.

Funded through the majority of 2024.

Help me connect the dots I mean are we including the opportunistic Atms throughout the year or are we including maybe funding in that assumption I'm, just trying to get a better understanding of them get.

Olga Shevorenkova: Yeah. Sure.

Olga Shevorenkova: Q1 burn was roughly a little over $80 million, as you correctly pointed out. What I would like to emphasize that the operational burn was only $19 million, and the rest was capital expenditures, so $65 million. That $65 million, as I already mentioned earlier on the call answering Gabe's question, nearly half of it is equipment prepayment for the rest of 2023 equipment needs and actually some of the 2024 needs. You should expect that capital expenditure number, the run rate for the rest of the year not to be in line with Q1, but actually to be lower. That I think will help you connect the dots a little bit. We do not include ATM as part of our cash plan, and that is cherry on the cake. It's on top.

Sure.

So Q1 burn was roughly a little over 80 million as you correctly pointed out, but I would like to emphasize that the operational burn was only 19, Neil N and the rest was most capital expenditures. So 65 million in that 65 million as I already mentioned earlier on the call on to engage question.

That's not nearly half of that is equipment repayments for the rest of 2023 equipment needs that actually sounds it sounds like a bunch of 20th so use it expands our capital expenditure number not to be the run rate for the rest of the year not to be in line with Q1, but actually to be lower.

That I think kind of what will how will help you connect the dots a little bit and on a we do not include the ACM as part of our cash plan and that is kind of cherry on the cake on top however regarding the funding.

Olga Shevorenkova: However, regarding the funding, when we talk about the funding, NEVI is only one of very many sources of funding EVgo is accessing. We've been in a grand game for many years now and been accessing municipal level grants and state grants for a while. We'll continue to do that. Specifically NEVI, as Cathy mentioned in her remarks, we don't expect much of an inflow of NEVI funds this year. We'll probably see it next year. We do expect a lot of other grant programs influence flowing in into the EVgo this year. Also, let me remind you that we have an agreement with General Motors where for every stall we put in operation, they pay roughly $33,000 to us, which they already did in both Q4 and Q1 and can continue to do it as well.

And when we talk about the funding and there is only one of them.

There are many sources of funds and even go as access than we've been.

In a ground game for many years now and it's been accessed in munis municipal level get grants and state grants for a while we'll continue to do that specifically natty as Kathy mentioned in her remarks, we don't expect much of our inflow of never fun. This year, probably sees next year when would you expect.

A lot of other grant program influence flowing into they even go this year and also let me remind you that we have an agreement with general Motors, where for every store were putting the durations they pay roughly $33000 to us which they already have the data in both Q4 and Q1 and can continue to do.

Olga Shevorenkova: That's another cash inflow which is available to us and it's part of our cash planning.

As well so that's another cash inflow, which is available to us and it's part of our cash plan.

Andres Sheppard: Got it. Okay, thanks, Olga. That's very helpful. In other words, the cash burn should be significantly lower for the remaining of the year, given that the majority, like you said, was on the CapEx side, and that accounts for the majority of this year and some into next year. The operational cash burn perhaps will be similar, but overall cash burn should be significantly less than what it was in Q1, if I understood that correctly.

Got it okay. Thank you that's very helpful. So in other words the cash burn.

Should be significantly lower for the remaining of the year given that the majority of like you said was on the Capex side and.

And that accounts for the majority of this year and some into next year. So the operational cash burn, perhaps will be similar but overall cash burn should be significantly less than what it was in Q1, but if I understood that correctly correct. So and that's so let me just also clarify something so the capex is roughly.

Olga Shevorenkova: Correct. Let me just also clarify something. The CapEx is roughly half-half on now maybe a little 40%-45% equipment, 60%-65% labor. When I say that we prepaid most of the equipment, we haven't finished on the labor side, because we need to put stalls in operations, and so the labor cost kind of will continue, and we will also start doing some work in Q3 and Q4 in 2024 assets. You'll definitely see some labor preparedness. The rate will go down, but just to clarify, it's not that we won't have any CapEx spend, and we'll have some. It's just going to be much lower than what you saw in Q1.

Roughly half half on now maybe a little more than 45% equipment, 40% to 45% of equipment, 6% to 65% labor. So when I say that we pre paid most of the equipment. We haven't finished on the labor side, because when you can put stalls in the durations on those labor cost kind of will continue and we will also started doing some work in.

Q3, and Q4 and 2024 assets, so you'll definitely see some labor prepayments the rate will go down but just to clarify it's not that we won't have any cut back spending will have some it's just going to be much lower than what you saw in Q1.

Andres Sheppard: Got it. Okay. Thanks for clarifying. Maybe my last question, regarding NEVI, it must be frustrating that we know by now the amount that each state has allocated per each year over the five years. Is there anything that can be done to try to accelerate that process? I know it doesn't obviously rely on, depend on you, but is there anything that can be done as an industry or individually to try to accelerate that process? Again, given that we have the numbers, it's just a matter of the actual bits being deployed, which sounds like 2024 will be the earliest. I don't know.

Got it okay. Thanks for clarifying maybe.

Maybe my last question.

Regarding maybe I mean, it must be frustrating that we know by now the amounts but each state has allocated over the you know.

Per each year over the five years.

Is there anything that can be done to try to accelerate the process I know it doesn't obviously you rely on depend on on you but.

I mean is there anything that can be done.

In industry or individually to try to accelerate that process.

Again, given that we have the numbers, it's just a matter of the actual dates being deployed which it.

It sounds like 2024 will be the earliest.

Cathy Zoi: Yeah, Jonathan, you want to take this?

Yeah, John I don't know Josh.

Jonathan Levy: Yeah.

Cathy Zoi: I mean, we've spent a lot of time on this, and as both Jonathan and I are former government officials in prior lives, so we are familiar with the toing and froing. Maybe what would you say?

Jonathan do you want to see if there's something we spent a lot of time on this and as both John and I are former government officials in our prior lives. So we are familiar with the with the tooling and throwing but maybe what would you say.

Jonathan Levy: Yeah. It's a good question, Andres, because I think, first of all, I don't want to give short shrift to the states that have moved, right? There are a couple that have, and we've submitted applications to a number of the states that have already opened, including some states that moved really promptly ahead. You have to keep in mind that there isn't one NEVI program. There are these 50 individual NEVI corridor programs. Each state gets to decide the specific parameters, and the federal government was a bit delayed on finalizing their technical minimum standards as well as the Buy America guidance, which meant that some states that may have otherwise been ready to go, they were then having to revise their plan or make other adjustments, we're expecting more to come.

Yeah. It's a good question Andre because I think first of all I don't want to give short shrift to the states that have moved right. There are a couple that out and we've submitted applications to a number of the states that have already opened.

Some states that moved really promptly.

But you have to keep in mind that there isn't one Navy program. There are these 50 individuals maybe corridor programs that each state gets to decide the specific parameters and the federal government was a bit delayed on finalizing their technical minimum standards as well as the buy America guidance, which meant that some states that may have otherwise been ready to go they were.

Then having to revise their plan or make other adjustments and so we're expecting more to come.

Jonathan Levy: There are still some states that we think will make awards in 2023, but the question is, when do the projects go? You're on reimbursements for most of those types of programs. The funding, as Cathy and Olga have said, we expect the bulk of that to be 2024 and beyond. What we can do about it is continue to engage with them, both directly on a state DOT level as well as through organizations like AASHTO, the American Association of State Highway and Transportation Officials. That's what we and our policy team continue to do, working both with the whole industry and directly to make sure that they have our best practices from Connect the Watts and other ways to know, here's a great way to run these programs.

There are still some states that we think will make awards in 'twenty three but the question is whether the projects go you're on reimbursement for most of those types of programs. So the funding as Kathy said, we expect the bulk of that to be 2024 and beyond but what we can do about it is continue to engage with them both directly on a state level as well as through organizations like <unk>.

The American State Highway transportation officials organization.

That's what we and our policy team continued to do working both with the whole industry and directly to make sure that they have our best practices for connect what's in other ways to know here's a great way to run these programs as I said, we've been in the granite team for a long time, whether it's <unk>, the California grants that we announced last quarter earlier, this year, rather or the utility.

Jonathan Levy: As Olga has said, we've been in the grant game for a long time, whether it's NEVI, the California grants that we announced last quarter or earlier this year rather, or the utility make-ready programs that are all important opportunities for funding. All of those will continue, and the timing will be a little bit of an ongoing thing that we have to keep incorporating.

For any programs that are all important opportunities for funding all of those will continue and the timing will be a little bit of an ongoing.

Saying that we have to keep incorporating.

Andres Sheppard: Got it. Okay. Thanks, Cathy. Thanks, Olga. Thanks, Jonathan. Congrats on the quarter again. I'll pass it on. Thank you.

Got it okay. Thanks, Kathy Thanks, Holger, thanks, Jonathan Congrats on the quarter again I'll pass it on thank you.

Cathy Zoi: Thanks, Andres.

Thanks Aldo.

Operator: Our final question will come from Brett Castelli. Your line is open.

And our final question will come from breakfast Toni Your line is open.

Brett Castelli: Hi. Thanks for taking my question. Just curious in an update on the EVgo ReNew program and sort of upgrading those older 50 kW chargers, kind of where are we at in that process?

Alright, thanks for.

Taking my question.

Just curious on an update on the EV go renew program and sort of upgrading those.

Boulder 50 kilowatt Chargers kind of where are we at in that.

That process.

Cathy Zoi: Yeah, Brett, we've got the program is underway, and we're going to be upgrading hundreds of them over the course of the year. The program is on track. What we're doing as well is we're actually integrating some communications efforts into EVgo ReNew. What we've discovered is that sometimes the chargers are at fault, and sometimes there's an opportunity for driver education on how to actually make the charging work more effectively. The program is becoming all-encompassing, as I think I described last time, and it's on track. We've got a few hundred that we're going to be doing over the course of the year.

Yeah right. So we've got a we've got the program is underway and we're gonna be we're going to be upgrading hundreds of them over the course of the year on in the program is on track and what we're what we're doing as as well as we're actually integrating some communications efforts in the E. V go renew so that so the what we've what we've discussed.

Is that sometimes the Chargers are I felt that sometimes there is an opportunity for driver education on how to actually make the charging what work more effectively. So the program is becoming all encompassing as I think I described last time and it's it's it's on track it's on track.

We've got a few hundreds of them are going to get it over the course of the year.

Olga Shevorenkova: Yeah, I would like to add that as of the end of Q1, as a result of the new efforts and as a result of us continuing to deploy high-power chargers, those 50 for the first time were less than half of our network. We could already clearly see in the numbers as well that the efforts bear the fruit.

Yeah, and I would like to add that as of the end of the first quarter as a result of the new efforts and as a result of us continuing to deploy high power charges those fleets as well.

For the first time, well less than half of all in that book. So we could already to clearly see the numbers as well that the efforts bear fruit.

Brett Castelli: Okay. Any color just in terms of CAPEX for this year associated with that program, just kind of ballpark?

Okay, and then any color on just in terms of Capex for this year associated with that program.

Just just kind of ballpark.

Olga Shevorenkova: We do not give guidance on that number, but it should be quite a bit higher than what we reported last year for that.

We do not give guidance on that number but it should be higher.

Higher.

Quite a bit higher than than what we reported last year for that.

Brett Castelli: Okay. Thank you.

Okay.

Thank you.

Okay.

Operator: At this time, I will turn the call back over to Cathy Zoi, CEO, for closing remarks.

At this time I will turn the call back over to Kathy has always CEO for closing remarks.

Cathy Zoi: Well, thanks everyone. Look, EVgo had a great Q1 2023. Our strategy is showing the early proof points that it's working, with throughput growing massively, and it's exceeding EV VIO growth and our install growth. The outlook for EVgo and the opportunity for fast charging in the US is getting better and faster. We believe our business is on a trajectory to scale rapidly and deliver really nice returns, and we look forward to speaking with you again next quarter about the progress. Thanks, everyone.

Well thanks, everyone look E V go had a great first quarter of 2023, our strategy is showing the early proof points that it's working with throughput growing massively and it's exceeding idiot <unk> growth and our own soccer.

The outlook for you to go and the opportunity for fast charging in the U S is getting better and faster. We believe our business is on a trajectory to scale rapidly and deliver really nice returns and we look forward to speaking with you again next quarter about the progress thanks, everyone.

Yeah.

Operator: This concludes today's conference call. You may now disconnect.

This concludes today's conference call you may now disconnect.

Yeah.

Yeah.

Yeah.