Q3 2023 EVgo Inc Earnings Call

About half of the energy delivered this quarter was outside of California.

This quarter was outside of California.

EVGO's exceptional throughput this quarter has translated to over 15% utilization across the entire network in September 2023. In fact, 45% or nearly half of our stalls were over 15% utilization, up from just 30% in June . And in September , a full 30% of stalls were over 20% utilization, a threshold that truly makes my spirit soar.

If he goes exceptional throughput this quarter is translated to over 15% utilization across the entire network in September 2023, and <unk>, 45% or nearly half of our stores were over 15% utilization up from just 30% in June.

And in September a full 30% of installed were over 20% utilization a threshold that truly makes my spirits soar.

These strong utilization trends validate EVgo's business thesis leverage to EV adoption.

These strong utilization trends validate <unk> business thesis leveraged to EV adoption, our rigorous underwriting designed to achieve double digit returns and our sophisticated site selection and network planning algorithms.

our rigorous underwriting designed to achieve double digit returns, and our sophisticated site selection and network planning algorithms.

With current utilization at our top stalls already exceeding base case utilization assumptions in our financial modeling, we believe the go forward picture on network profitability is stronger than ever.

With current utilization at our top cells already exceeding base case utilization assumptions and our financial modeling. We believe the go forward picture on network profitability is stronger than ever.

Well, I'm not surprised to be able to report such strong results to you during my last quarterly earnings call of CEO of EVGO. I'm certainly thrilled. It's been a great honor and privilege to lead the team in building the foundational business at EVGO and adding elements of that foundation to create a flywheel and to now witness that flywheel start to spin.

While I am not surprised to be able to report such strong results to you. During my last quarterly earnings call as CEO of the Vigo I'm certainly thrilled it's.

<unk> been a great honor and privilege to lead the team in building the foundational business at igo and adding elements of that foundation to create a flywheel and to now witness that flywheel start to spin.

We've created a robust business model leveraged to EV adoption with three million EVs on the roads today and an expected five to six million by the end of 2024 and further projections of 35 to 38 million electric vehicles in operation in the US by 2030.

We've created a robust business model leveraged to EV adoption with 3 million Evs on the road today and an expected 5% to 6 million by the end of 2024 and further projections of 35 to 38 million electric vehicles in operation in the U S by 2030.

EVGo's blue ribbon partnerships across the EV ecosystem strengthen our financial performance while enabling others in the EV ecosystem, OEMs, site hosts, utilities and government agencies to meet their goals.

If it goes to the Blue ribbon partnerships across the EV ecosystem strengthen our financial performance, while our neighboring others in the ecosystem Oems site host utilities and government agencies to meet their goals.

GM, Honda, Toyota, Whole Foods, Safeway, Target, Loads, Uber, Lyft, Amazon, dozens of utilities and government agencies to name just a few of our parts.

GM Honda Toyota whole foods, Safeway target Lowe's, Uber Lyft, Amazon dozens of utilities and government agencies to name just a few of our partners.

EVgo's focus on unit economics and financial discipline and our network planning is demonstrating proven financial returns.

<unk> focus on unit economics, and financial discipline, and our network planning is demonstrating proven financial returns and our white label charging business E. V. Go extend has created shareholder value and optimize risk return matter broadening network reach and bolstering revenues and margins without E V go needing to <unk>.

And our white label charging business, EVGO Extend, has created shareholder value in an optimized risk return manner. Broadening network reach and bolstering revenues and margins without EVGO needing to invest cat-ex in lower utilization settings.

Best Capex and lower utilization settings.

EVgo's technology leadership in this new and rapidly growing sector deepens and widens our competitive moat, with a litany of industry firsts in the public fast charging sphere, including power sharing, Auto Charge Plus, EVgo reservations, integrated Tesla connectors, proprietary software products like EVgo Optima and EVgo Inside, and of course, the EVgo Innovation Lab.

<unk> technology leadership in this new and rapidly growing sector, deepen and widen our competitive moat with a litany of industry first and the public fast charging sphere, including power sharing auto charge plus E V go reservations integrated Tesla connectors.

Proprietary software products like E V go Optima and need to go inside and of course, the <unk> innovation lab.

We believe EVgo's engineering team is not only a step ahead of other public charging networks, we are working collaboratively with automakers, equipment manufacturers, and policymakers to craft the holistic infrastructure architecture designed to scale to meet the needs of hundreds of diverse models of EVs coming to market over the next few years.

We believe <unk> engineering team is not only a step ahead of other public charging networks, we're working collaboratively with automakers equipment manufacturers and policymakers to craft the holistic infrastructure architecture designed to scale to meet the needs of hundreds of diverse models of evs coming to market over the next few years.

And let's talk about EVgo's focus on enhancing the customer experience and the demonstrable progress we've made in our own chargers, in working with OEMs, and in improving driver education.

Now, let's talk about <unk> focus on enhancing the customer experience and the demonstrable progress we've made in our own Chargers and working with Oems and an improving driver education.

First on chargers, we've continued to run to ground and remedy issues associated with charging equipment, holding our suppliers to exacting standards on both hardware and software.

First on Chargers, we've continued to run to ground and remedy issues associated with charging equipment floating our suppliers to exacting standards on both hardware and software.

We collaborate closely with OEMs to ensure their EVs can work seamlessly with EVgo charger.

We collaborate closely with Oems to ensure their evs can work seamlessly with Ido Chargers.

And we're continuing to invest in driver education as a number of EVs on the roads of Guy Rockets and use the fast chargers grows with it. Our charge talk and renewed video series and related blog posts are helping new and experienced EV drivers adapt to the ever changing fast charging ecosystem.

And we're continuing to invest in driver education as the number of Evs on the road with Skyrockets and use of fast Chargers grows with it.

Our charged talk and renew video series and related blog posts are helping new and experienced drivers adapt to the ever changing fast charging ecosystem.

One of EVgo's success benchmarks is what we refer to as one-and-done charges.

One of the V. Go success benchmarks is what we refer to as one and done charging.

This is the metric we track showing the percentage of time customers get what they came for. A successful charge at EVgo on their first attempt.

This is a metric we track showing the percentage of time customers get what they came for a successful charged at EDI go on their first attempt.

We started 2023 with one and done at 85% and have now reached 91% with the aim of achieving 95% at year end. And we will continue driving towards a one and done rate of 100%.

We started 2023 with one and done at 85% and has now reached 91% with the aim of achieving 95% at year end.

And we will continue driving towards a one and done right a 100%.

Our investments in customer experience are paying off with rising plug scores and JD power results.

Our investments in customer experience are paying off with rising plug scores in J D power results.

In the Q3 2023 JD power overall satisfaction index, EVGO improved 4% of sports from Q1, and saw strong gains on key customer experience metrics, such as speed of charging up 12%, and ease of charging up 6%. The Q3 2020 JD power overall satisfaction index, and ease of charging up 12%.

In the Q3 2023, J D power overall satisfaction Index E. V go improved four percentage points from Q1 and saw strong gains on key customer experience metrics, such as speed of charging up 12% and ease of charging up 6%.

Turning to <unk> supply chain.

Along with most of the US EV industry players, EVGO has committed to support NAS Connect.

Along with most of the U S. EV industry players E. V. Go has committed to support next connectors.

We've qualified a couple of potential suppliers for Naxx charging cables, including liquid cool cables, which are required for the high powered 350 kilowatt chargers that are e-vigose standard deployment.

We have qualified a couple of potential suppliers for next charging cables, including liquid cooled cables, which are required for the high powered 350 kilowatt charges that are easy go standard deployment.

EVgo anticipates rolling out next connector cables in 2024 at a cost comparable to a CCS cable today and with a minimal cost to retrofit to existing station.

<unk> anticipates rolling out <unk> connector cables in 2024 at a cost comparable to our Ccs cable today and with a minimal cost of retrofit to existing stations.

We expect to be ready with NACS tables for our chargers well before the automakers that are transitioning to NACS have their NACS EVs on the road.

We expect to be ready with mass tables for our Chargers as well before the automakers that are transitioning to <unk> have their next evs on the road.

With respect to CapEx trends for fast chargers, we've been able to negotiate lower equipment prices.

With respect to Capex trends for fast Chargers, we've been able to negotiate lower equipment pricing.

However, there are several factors currently contributing to CAFEX being at the top end of our previously mentioned rate.

However, there are several factors currently contributing to capex being at the top end of our previously mentioned range.

First, build America by America or Baba. In order to be eligible for Nevi funding, the IRA stipulates that chargers must meet Baba Sanders.

First build America by America or Bubba.

In order to be eligible for Navy funding the IRI stipulates that charges must meet Barbour standards.

While EVgo fully supports building domestic manufacturing capabilities for the EV charging industry, the Baba compliant chargers cost more.

While if you go fully supports building domestic manufacturing capabilities for the EV charging industry. The Baba compliant charges cost more at present.

Second, prevailing wage requirements for grant funded projects under Nevy or 30C add about 30% to the labor portion of cash.

Second prevailing wage requirements for grant funded projects under <unk> or 30, <unk> at about 30% to the labor portion of Capex.

And finally, utilities are needing to upgrade local power distribution networks to accommodate more and more fast chargers. And they are passing on many of these costs to charging companies such as EVGGO.

And finally utilities are needing to upgrade local power distribution networks to accommodate more and more fast Chargers and they are passing on many of these costs to charging companies such as E V go.

To help counter the current cost headwinds in our industry, EVGo is pursuing innovation on many fronts to reduce the capex required to build a station.

To help counter the current cost headwinds in our industry EV Gogo is pursuing innovation on many fronts to reduce the capex required to build a station.

For example, we recently announced a prefabricated charging deployment model on a skid that's expected to reduce installation timelines by 50% and reduce capital equipment costs by 15% eligible sites.

For example, we recently announced a prefabricated charging deployment model on the skin that is expected to reduce installation timelines by 50% and reduced capital equipment costs by 15% eligible sites.

The scalable design is being deployed at several locations in the next few months. I will be honed for more widespread application in stations designed and mobilized later in 2024.

This scalable design is being deployed at several locations in the next few months and will be honed for more widespread application and stations designed and mobilized later in 2024.

On partnerships, I'm pleased to report that the first EVGo extend sites with the pilot company and GM are now operational.

On partnerships I'm pleased to report that the first <unk> extends sites with the pilot company in GM are now operational.

Customer feedback has been terrific with plug scores for these new highway corridor stations rivaling the best in the business.

Customer feedback has been terrific with plug scores for these new highway corridor stations rivaling the best in the business.

The PSJA Station Deployment Program is on track with agility and innovation being key ingredients in our success so far.

The PSA station deployment program is on track with agility and innovation being key ingredients in our success so far.

Emblematic of this, we announced last quarter that EVgo received the first 350 kilowatt Bhabha compliant chargers in the country.

Emblematic of this we announced last quarter that <unk> received the first 350 kilowatt Barbour compliant Chargers in the country.

Last quarter, EVgo added another Blue Ribbon OEM partner with the signing of an agreement with Conda.

Last quarter <unk> added another blue ribbon OEM partner with the signing of an agreement with Honda.

Feuth your Honda and accurate EV models will be eligible for up to a $750 charging credit on EV Ghost Public Network.

Future Honda and accurate EV models will be eligible for up to a $750 charging credit on EV goes public networks.

Honda will embed EVGo inside our proprietary software into their navigation system to help enable their drivers to locate EV charging stations nearest to them.

Honda will embed E V go inside our proprietary software into their navigation system to help enable their drivers to locate EV charging stations nearest to them.

We also signed a deal with automaker Stellantis, who will leverage EVgo inside as their API to integrate into their apps to aid their drivers to find a fast charger, view availability, and start a charge.

We also signed a deal with automakers to Atlantis, who will leverage <unk> inside of their API to integrate into their app to aid their drivers to find the fast charger do availability and started charge.

EVGO extended our agreement with Toyota, providing Toyota EV drivers a year of free charging at EVGO for model year 2024.

<unk> extended our agreement with Toyota, providing Toyota EV drivers a year of free charging at igo for model year 2024.

Evie goes rideshare partners led by Uber and Lyft, delivered significant growth this quarter, as they move aggressively toward their goals of electrifying their-

If it goes rideshare partners led by Uber and Lyft delivered significant growth this quarter as they move aggressively towards their goals of electrifying their fleets.

Through a quick flip from Fleet on EVGO's network is five times higher in the third quarter compared to last year's third.

Throughput from fleets on EV goes network is five times higher than the third quarter compared to last year's third quarter.

EVgo expects to open our second depot site for an autonomous vehicle company in January 2024. These two sites have stall counts between 26 and 30, more than double our typical public site size.

<unk> expects to open our second depot site for an autonomous vehicle company in January 2020 for these two sites have stalled counts between 26% and 30 more than double our typical public site size.

Also in our fleet business, a national food and beverage company site is operational and they are using eVigo Optima, our proprietary fleet management software.

Also in our fleet business, our national food and beverage company site is operational and they are using E. V go Optima, our proprietary fleet management software.

And EVGO and Hertz, signed to B2B Fleet Charging Agreement to allow Hertz vehicles to be charged on the EVGO public network between rent. And EVGO and Hertz vehicles to be charged on the EVGO public network between rent and rent.

I need to go and hurts <unk> fleet charging agreement to allow hurts vehicles to be charged on the easy go public network between rentals.

And slug share, the Yelp of the charging world continues to grow. Pug share remains the largest community of ED drivers in the world with 7.4 million check-ins since its inception and reaching more than 4.1 million registered users in the third quarter.

And plug sure the Yelp of the charging world continues to grow.

<unk> share remains the largest community of EV drivers in the world with $7 4 million checking since its inception, and reaching more than $4 1 million registered users in the third quarter.

Harnessing this reach to make charging easier across all networks. In October , EVGO launched Pay With Plug Share across California, allowing users to pay for a charge within their Plug Share.

Harnessing this reach to make charging easier across all networks in October <unk> launched pay with bumps here across California, allowing users to pay for a charge within their plugs aercap.

Now turning to deployment of capital, let me reemphasize a point I made to you many times.

Now turning to deployment of capital, let me reemphasize the point I've made to you many times.

EVgo's ability to adjust the speed of our growth engine and invest capital to match the market circumstances is a great strength of our business model and our management team.

<unk> ability to adjust the speed of our growth engine and invest capital to match the market circumstances as a great strength of our business model and our management team.

I've often compared EVgo to hockey legend Wayne Gretzky, who famously noted that to be successful, he didn't skate to where the puck was, but to where it was going to be.

I've often compared if you go to hockey legend, Wayne Gretzky, who famously noted that to be successful he didn't skate to where the puck was but to where it was going to be.

EVgo similarly skates just ahead of the puck, incorporating lead times to site and build our infrastructure, while anticipating growth and demand and integrating the timing of grants as we pace our build-out.

Similarly gave just ahead of the puck incorporating lead times to site and build our infrastructure, while anticipating growth in demand and integrating the timing of grants as we pace our buildout.

The agility of EDGO's high-performance engine allows us to torque our deployment skills at an optimized shareholder return, while keeping the availability and timing of new capital front of mind.

The agility of EDI goes high performance engine allows us to talk our deployment schedule to optimize shareholder returns, while keeping the availability and timing of new capital front of mind.

And now regarding new capital, a plethora of non-dilutive government sources of capital are in the mix.

And now regarding new capital a plethora of non dilutive government sources of capital are in the mix first our daily loan application is progressing well with the potential for a significant amount of low cost debt, becoming available to either go sometime in the latter half of next year.

First, our DOE loan application is progressing well with the potential for a significant amount of low cost debt becoming available to EVGO sometime in the latter half of next year.

The likelihood and exact timing of this is difficult to project with precision.

The likelihood and exact timing of this is difficult to predict with precision.

Second, tradable tax credits for charging infrastructure through 30C will be available to start of 2024. And we believe are likely to cover up to 30% of CAPEX for a significant portion of the EVGOS project.

Second tradable tax credits for charging infrastructure through 30 fee will be available at the start of 2024, and we believe are likely to cover up to 30% of Capex for a significant portion of <unk> projects for the first time, the 30 fee credit will be eligible to be transferred so the companies like <unk> may monetize the full credit valley.

For the first time, the 30-C credit will be eligible to be transferred. So the companies like EDGO may monetize the full credit value.

As a result, EVGO is forecasting millions of dollars in benefits annually over the coming year.

<unk>.

As a result, <unk> is forecasting millions of dollars in benefits annually over the coming years.

In the past quarter, EBGO's finance and tax teams have worked to prepare EBGO to monetize the credit. We're expecting final rules from the U.S. Department of Treasury in the coming months to provide the certainty needed to finalize our plans for implementing.

In the past quarter, <unk> finance and tax teams have worked to prepare EV go to monetize the credit we're expecting final rules from the U S Department of Treasury in the coming months to provide the certainty needed to finalize our plans for implementation.

And third, public funding awards through NEVI and other state programs continue to come EBO's way, albeit roughly six to nine months later than expected, and that the market might have hoped due to delays arising from bureaucratic government processes.

And third public funding awards through Navy and other state programs continue to come easy goes way, albeit roughly six to nine months later than expected and that the market might have hoped due to delays arising from bureaucratic government processes, while delays may be a bit frustrating theres no doubt that the appropriated funds will end.

While the lays may be a bit frustrating, there's no doubt that the appropriated funds will indeed be dispersed and, as mentioned above, Evie Goe can adjust the pace of our build-out to account for those delays.

D would be disbursed and as mentioned above E. V. Go can adjust the pace of our Buildout to account for those delays recall that Navy has the potential to fund up to 80% of project Capex.

Recall that Nevy has the potential to fund up to 80% of project capital.

And to date, EVGO is at the top of the leaderboard amongst Nevy grantees, winning over an estimated 20% of the funds announced. Recall that we only apply for grants where projects would meet our financial hurdles. Some jurisdictions or state program designs don't meet our criteria.

And to date <unk> is at the top of the leader Board amongst nervy grantees, winning over an estimated 20% of the funds announced recall that we only apply for grants where projects would meet our financial hurdles. Some jurisdictions are state program designs don't meet our criteria.

And while Nevi remains a focal point, it's not the only source of public funding available to accelerate EVGO's network expansion. For over a decade, EVGO has partnered with public agencies at the state and local level through funding programs that have propelled our growth and we continue to build upon this experience for not only Nevi, but other grant programs as...

<unk> remains a focal point, it's not the only source of public funding available to accelerate <unk> network expansion.

For over a decade <unk> has partnered with public agencies at the state and local level through funding programs that have propelled our growth and we continued to build upon this experience for not only nervy, but other grant program as well.

As a reminder of the financial significance of the external funding the compliments, E.D. goes direct in best.

As a reminder of the financials of the significance of the external funding. The complements EDI goes direct investments. These diverse funding sources can typically be stacked for example, a solve it as part of EV goes GM program received a $33000 Capex payments. In addition, some locations may also.

These diverse funding sources can typically be STITACT. For example, a solid that is part of EVGO's GM program receives a $33,000 cat-ex payment. In addition, some locations may also be awarded NEVY or other state or municipal grants, as well as the eligible for a 30-C tax credit. In some cases, the funding STACT may cover the vast majority of cat-exks for a station-

Be awarded Nervy, our other state or municipal grants as well it would be eligible for a <unk> tax credit.

In some cases the funding stack may cover the vast majority of Capex for our station.

Availability of multiple funding sources extends the geographic footprint of stations that pass EVGOS investment hurdles and makes those locations more profitable, a genuine accelerant to EVGOS this-

Availability of multiple funding sources extends the geographic footprint of stations that pass EV goes investment hurdles and makes those locations more profitable a genuine accelerant to <unk> business.

The upshot for our financial picture is this. The diverse sources of non-diluted funding that include OEM funding, grants and 30 C. In combination with EVGO's current balance sheet are ample to fuel our growth engine well into 2025, consistent with what we've reported to previous.

The upshot for our financial picture isn't this the diverse sources of non dilutive funding that include OEM funding grants and 30 <unk> in combination with <unk> current balance sheets are ample to fuel our growth engine well into 2025 consistent with what we've reported previously.

And with that, I'd like to introduce you to Evie goes next Chief Executive Officer, BotterCon.

And with that I'd like to introduce you to EV goes next Chief Executive Officer Badar Khan.

Thank you Kathy.

Let me first congratulate you on a very successful tenure leading Evie Go over the past six years.

Let me first congratulate you on a very successful tenure, leading and you could go over the past six years.

The company has come a long way under your leadership. I'm a 50 person private company, to a public company leader in EV fast charging in over 35 states serving over 785,000 customers.

The company has come a long way under your leadership, a 50 person private company to a public company leader in EV fast charging and over 35 states serving over 785000 customers.

Under your leadership, EVGO can play a number of firsts, from being the first to deploy a 350 kilowatt charger in 2018 to being the first charging company, to be 100% match with renewable energy since 2019, to having the first integrated Tesla connector since 2019.

Under your leadership <unk> can play a number of firsts from being the first to deploy a 350 kilowatts charger in 2018 to bring the first charging company to be 100% match with renewable energies in 2019.

So having the first integrated Tesla connector since 2019.

I also want to commend you and the team for delivering what you said. Since even though it's been public, it has met or exceeded initial revenue and EBITDA guidance and the company's raising revenue and adjusted EBITDA this year.

I also want to commend you and the team for delivering what you said.

So if we grow whats been public it has met or exceeded initial revenue and EBITDA guidance and the company is raising revenue and adjusted EBITDA. This year.

I'm excited to take on the CEO role at EVGO and I'm very excited for the future. EVGO's mission of mitigating the impact of climate change by accelerating the adoption of electric vehicles through building and growing our fast charging network is a mission that is very moving.

I'm excited to take on the CEO role at <unk> and I'm very excited for the future.

He always mission of mitigating the impact of climate change by accelerating the adoption of electric vehicles through building and growing our fast charging network is a mission that is very motivating.

In just the past year, we have seen a 50% increase in EVs on the roads in the US. While growth rates may be slower or faster in the short term, there is no denying that the market will continue to see exponential growth in the long term. With 300,000 DC fast chargers needed by 2030, up from over 30,000 today.

Just the past year, we have seen a 50% increase in evs on the road in the U S and while growth rates may be slower or faster in the short term. There is no denying that the market will continue to see exponential growth in the long term with 300000, DC fast chargers needed by 2030.

From over 30000 today.

I've also been impressed by the focus on discipline that I've observed as a board member for the past one and a half years, most clearly evidenced by the rigorous underwriting criteria employed by the company of only building assets that are projected to achieve a double digit.

I've also been impressed by the focus on discipline that I've observed as a board member for the past one and a half years, most clearly evidenced by the rigorous underwriting criteria employed by the company of only building assets that are projected to achieve a double digit return.

It is, therefore, particularly exciting to take over at this time as we see some key underlying metrics accelerate in recent months, like network throughput growing four times faster than BIO growth over the past year and overall network utilization over 15 percent across the entire network during September , and notably for the past two quarters, growing faster in states outside California.

It is therefore, particularly exciting to take over at this time as we see some key underlying metrics accelerate in recent months.

It worked throughput growing four times faster than <unk> growth over the past year, and overall network utilization over 15% across the entire network during September and notably for the past two quarters growing faster in states outside of California.

Over the past decade, EVGO has built and continues to refine a very compelling growth engine that we believe has the capacity to site, permit, win grants, build and operate well located chargers that have a lifetime value far in excess of the annual cost of the growth engine. And that returns that are greater than the cost of the capital required for those fast chargers.

Over the past decade, <unk> has built and continues to refine a very compelling growth engine that we believe has the capacity to site permit with grants build and operate well located chargers that have a lifetime value far in excess of the annual cost of the growth engine.

The returns that are greater than the cost of the capital required for those fast Chargers.

that utilization at our topstool is already exceeding the utilization assumed that our underwriting further increases the value of our growth end.

That utilization at our top stools is already exceeding the utilization assumed that our underwriting further increases the value of our growth engine.

I'm also delighted to see the improvements in customer experience that have been a particular focus over the past year. As reflected in the most recent JD power satisfaction scores, improving 4 percentage points overall, and across all the metrics from.

I'm also delighted to see the improvements in customer experience that has been a particular focus over the past year as reflected in the most recent J D power satisfaction scores, improving four percentage points overall and across all the metrics correct.

forward to meeting our customers, partners, vendors, and shareholders in the coming months. I also look forward to sharing more of my thoughts from the future of EVGO on the next earnings call in early 2024.

Forward to meeting our customers partners vendors and shareholders in the coming months I also look forward to sharing more of my thoughts in the future be be go on the next earnings call in early 2024.

I'm now turning the call over to Olga to share more details on the quarterly performance, as well as an update to EVGO's 2023 full year guidance. Olga. Thank you.

I'll now turn the call over to Olga to share more details on our quarterly performance as well as an update to <unk> 'twenty two 'twenty three full year guidance.

Thank you Barbara.

Ibigo delivers another strong quarter driven by growth in our core retail charging business and expands.

<unk> delivered another strong quarter driven by growth in the all quality tell charges business Alex Pham.

The revenue in the third quarter was $35.1 million, which was a 234% year-over-year increase.

Avenue.

Quarter was $75 1 million, which was at 234% year over year increase.

Revenue gross was primarily driven by increased charging revenues and extent revenues.

Revenue growth was primarily driven by charging revenues and expand revenue.

Retail charging revenue grew from $5.2 million in the third quarter last year to $13.4 million in the third quarter this year, exhibiting a 158% year-over-year increase.

<unk> charges Avenue.

<unk> five point to a mailer in the third quarter last year.

13 points for me alone in the third quarter of this year exhibit in that 158% year over year increase.

Commercial charging revenue grew from 0.7 million in the third quarter last year to 4 million in the third quarter this year at 496 percent year-over-eincred.

Commercial charging revenue from Europe on seventh Mailer in the third quarter last year to formula in the third quarter this year at 496% year over year.

and the exam revenue moved from one and a half million in the third quarter last year to 10 and a half million in the third quarter this year, exhibiting at 579% year-over-year increase.

And extends Avenue.

Wanted to ask me alone in the third quarter last year.

Hum Miller and the third quarter this year exhibiting at 517, 9% year over year.

adjusted gross margin was 26.4% in the third quarter of 2020 straight.

Adjusted gross margin was 26, 4% in the third quarter south of dentistry.

When compared to 19.1% in the third quarter of 2022, the year-over year change was attributable to improve the pervasive leverage, resulting from high utilization.

Welcome back.

19, 1% in the third quarter of subsequent to the year over year change was attributable to improved operating leverage resulting from high utilization.

Network throughput has increased by 208% year over year, while operational slow count has increased by 29% over the same time period. Thus, along if you go to amortize network clicks cost over a larger revenue base.

Netbooks hook with Hasnt placed by 208% year over year pilot generational Cellcom hasnt quite benign.

At the same time yet.

If you go to amortize the fixed cost over a larger revenue base.

Adjusted DNA as a percentage of revenue improved from 230% in Q322 to 6 to 7% in Q323.

Adjusted G&A as a percentage of revenue improved from 230% in Q.

Care to 6% to 7% Q3 <unk>.

illustrating the leverage if you go continuous to realize from its existing network and ongoing investment of infrastructure, people, and processes on its way to profitability.

Illustrating the leverage even though continues to realize from our successful NASA and ongoing investments in infrastructure people and processes.

It's a perfect ability.

Reflecting the revenue growth and the periton leverage adjusted either done with negative 14.2 million in Q323 versus negative 22.2 million in Q322.

Reflecting the revenue growth and operating leverage adjusted EBITDA was negative $14 2 million in Q3 'twenty three is.

This negative trend to chip until nila <unk> to 'twenty two.

cast, cast equivalent, and restricted cast, was 229 million as of September 30th.

Cash cash equivalents and restricted cash was 201009 nealon as of September 30th.

We added over 240 new selves to our network during the search water.

We added over 240, new stores to our network.

40 of which I extend stalls under our pilot program. And so the operation on the construction were over 3,400 as of September 30th.

Quarter four.

Audio.

Hi extends to all of our pilot program.

And so they're in operation or under construction with over 3400 as of September 30th.

Adoration of dolls at quarter-end were approximately 2700 and include the first 40 operational dolls at 10 locations under our extent program with Pilot Flying J and GM.

Operational so at quarter end were approximately 700, and then closed the first 40 operational stall at 10 locations.

That will extend the program with pilot flying J MGM.

Cass used in operations was 7.3 million in the self-quarter, also reflecting ongoing realization of operating collaborative.

Cash used in operations was seven C. Nila and this quarter also reflects an ongoing rationalization of operating leverage.

In Q3, total CAPEX was $24 million, including around $21 million in gross CAPEX as we continue to execute our build plan. Year-to-date, we have spent $124.1 million on total CAPEX, including around $114 million in gross CAPEX.

Q3, total cutbacks less fancy formulas, including 21 million in gross Capex.

<unk> executed a build plan.

Year to date, we have spent 194 wildly aligned on total cut backs and clothing, they're all 114, nila and growth Capex.

If we go back to recover approximately 45% of the 22nd vintage cup pack with 3M payments of 33,000 per stall accounts for approximately half of that and the remainder recovered through a combination of federal, state and local one-highly of all local tax.

If I go back to that cover approximately 45% of its twice it was disturbing to shop at when campaigned themselves. So it is 3000 accounts for approximately half of that and the remainder covered through a combination of federal state and local.

And so to see credits.

Between 2222 and 2223 projects being to just, typical has been awarded approximately 29 million of grants of which we have collected roughly 10 million. The remainder is expected to be collected in Q423 and 2024.

Between 2022, and 23 project manager.

<unk> has been awarded.

And of the $29 million of grants.

We have collapsed roughly 10 Neal it.

The remainder is expected to be collected in Q4 two months at both the C F 'twenty to 'twenty four.

If a girl's gross cup extra stall is approximately 150,000, living by rising utility into connection costs and the requirement to pay prevailing wages for labor associated with products receiving grant funding and cash discussed earlier.

Even though raw cutbacks that stall is approximately 104000.

Driven by ryzen utility interconnection costs and the requirement to pay prevailing wages, how labor associated with the seven grandfathered as Kathleen discussed earlier.

As part of our fleet half business, we answer internal arrangement, allowing us to get access to prime locations in urban areas in the US through selling and losing back such properties. In the beginning of the fourth quarter, if you go solve and lead back to real estate location, result in 16 and a half million of growth.

As part of our fleet business.

This interim arrangements, allowing us to get access to prime locations.

Urban areas in the U S.

Selling and leasing back such properties.

In the beginning of the fourth quarter EBIT will solve them leads back to real estate location.

Austin and 16 Miller of golf Galaxy.

As highlighted, if we go total throughput this quarter, we'll three times more compared to last year.

As home is it.

If it goes toggles throughput this quarter was three times more compared to last year.

We believe several factors are compounding to create this significant uptick.

We believe several factors are composing to think as a significant off job.

Foremask is the I.O. gross, including gross of non-task lady.

Pharma is vil grows clean growth pathway.

Evidio, at the end of third quarter, is estimated at 3 million ADs in the US, growing 30% compared to last year.

E V O.

At the end of third quarter is estimated at three <unk> in the U S.

Showing 50% compared to last year.

Second is an increase in the size of the addressable margin.

Second is an increase in the size of the addressable market.

Vehicle miles travel or VMT is growing. Nearing parity with internal combustion engine vehicles according to the recent industry data, reflecting a growing consumer confidence in charging availability wherever they go.

Nickel miles travel.

The M T.

Growing nearing parity with internal combustion engine vehicles. According to recent industry data.

Vaccines are growing consumer confidence in charging availability wherever they go.

More miles traveled equals more charging needed. We also believe that CCFC charging and the percentage of total charging is increasing as EVs have become more affordable to drivers without access to home charge.

More miles traveled equals more charging you need it.

Also believe that D. C F C charging as a percentage of total charging isn't pleasing F E DS have become more affordable to drivers without access to home charging.

And with fast charging becoming increasingly available and accessible, more top-up or convenience charging is taking place.

And with fast charging becoming increasingly available and accessible more top up our convenience charging that's taken place.

Third is market share expansion arising from superior illegal location and enhanced cost to make experience at our site.

Third is market share expansion arising from superior either go locations and enhance customer experience at all of that.

For continued electrification of rideshift leads is driving usage on the eBigo network, mostly Uber and Leap drivers. The average rideshift driver travels three to five times more miles than an average commuter and is much more aligned on fast charging infrastructure.

Sure.

<unk> electricity occasion of rideshare fleets.

Driving usage on the E dingo Napa market over at least chivers.

Average ride share driver travel and age of five times more miles than an average commuter and is much more their lives on fast charging infrastructure.

Fifth, higher charge rates of new EVs enable more throughput in the same amount of time. And finally, newer EVs hitting the market are bigger and hence have lower efficiency. That is, they require more kilowatt hours to go the same distance as smaller, lighter EVs.

Hey, hi charge rates of Muni niece enabled more throughput in the same at all at this time.

Finally.

Ete's, Hey, Tim that the markets are bigger and has to have a longer efficiency battle. They acquired walk YOD hours to go the same distance.

Smaller why babies.

If you go categorized as traffic on our public network into three categories. Retail, which is comprised of individual non-commercial-easy drivers, commercial off-lead, which includes rideshare drivers and autonomous vehicles, and OEM charging revenue, which is derived from charging credit programs from the automation.

Even go categorized that shafiq on a public napa into three categories.

Tail, which is comprised of individual non commercially these drivers.

Marshall off lease, which includes rideshare drivers and autonomous vehicles, and OEM charging revenue, which is derived from charging credits brokers from the automakers.

Retail through both the first of those three categories was two and a half times greater than the so quarter of 2022.

He tells to report the first of those three categories.

Two and a half times greater than the third quarter expenses amounted to <unk>.

This increase is driven by both more customers on the EVgo network and high usage per customer, reflecting the trends discussed earlier.

This increase is driven by both more customers on the easy go NASA and high usage per customer.

<unk> the trends discussed earlier.

We added over 100,000 new customer accounts in this quarter, bringing the total to over 785 sounds.

We added over 100000, new customer accounts this quarter.

The total to over 785000.

Average monthly kilowatt hours per active customer is up 66% since January 2023.

Average monthly kilowatt hours per active customer is up 66% as of January 28.

Evigil membership programs are delivering value to our frequent customers. Over 20% of our retail charging revenue is derived from EV drivers on a membership or subscription plan.

<unk> membership program.

Living the values to our customers over 20% of all of the detailed charging revenue is derived from EV drivers on the membership subscription plan.

These ago now has over 30 markets that deliver double digit utilization in the third quarter. It is truly a coast to coast phenomenon with a master market such as Dallas, Houston, Miami, Detroit, Atlanta, Rally, Chicago, and Philadelphia, during our historical strong California markets of LA, San Diego, and San Francisco.

<unk> now has almost 30 markets.

Deliver double digit utilization in the third quarter. It is truly a coast to coast phenomenon, where the metro markets, such as Dallas, Houston, Miami Detroit Atlanta.

Ali Chicago, and Philadelphia, zoning, historically strong, California markets L, a San Diego and San Francisco.

If you don't reach a traffic which accounts for over 20% of our throughput, continues to gain momentum this quarter growing fivefold year-over-year. Uber and Lista, our largest dry-chair partners, was over alone, accounting for two gigawatt hours in October 2023.

Even though we topic, which accounts for over 20% of our throughput continues to gain momentum this quarter.

Five fall year over year.

<unk> leased our largest rideshare partners with Oba alone.

Housing for two gigawatt hours in October with a bunch of shape.

We used to make that if you go powers up to 50% of our right share drivers charging.

Whereas demand that is at Gulf Power's up to 50% of all rideshare drivers charging needs well.

With the idea of adoption on the right, continued leadership in their trackiness of our location, and a relentless focus on the customer experience. We expect, if you go, to continue this quarter, quarter growth trajectory in the foci of our future, building to a financial, sustainable business model, and to be able to fit a building.

<unk> adoption on the rise.

<unk> leadership and the attractiveness of allocation and then a limitless focus on the customer experience. We expect even go to continue this quarter on quarter growth suggested in the foreseeable future building to a financially sustainable business model and superior profitability.

Moving on to our full year 2023 guide.

Moving on to our full year transit buses to meet guidance.

EBITGO is raising its full-year revenue guidance to a range of $148 million to $158 million.

<unk> is raising its full year revenue guidance to a range of 148 million to 168 million.

And Eva Gold is raising its whole year just at Ibadagai to arrange a negative 66 million to negative 62 million.

And even though is raising its full year adjusted EBITDA guidance to a range of negative 6% to six Miller to negative 62 million.

We expect to have a total of 3400 to 3700 DC fast charging sold in operational under construction, including if you go extend by the end of 2020.

We expect to have a title all carry 400 to soda 700, DC fast charging installed and operational under construction, including even though expand by the end of 2023.

And with that, we're turning over to Operator for questions.

And with that well turn it over to the operator for questions.

Yeah.

At this time, I would like to remind everyone in order to ask a question, please press star for the number one on your telephone keypad to answer the question queue. Once again, that is star followed by the number one. We'll pause for just a moment.

At this time I would like to remind everyone in order to ask a question. Please press Star then the number one on your telephone keypad to enter the question queue. Once again that is star followed by the number one.

We'll pause for just a moment to compile the Q&A roster.

Yeah.

Your first question comes from the line of Chris Dendrinos with RBC. Your line is open.

Your first question comes from the line of Chris <unk> with RBC. Your line is opened.

Great, yeah, thank you very much. And congratulations on the fantastic quarter. Thank you.

Great. Yes, thank you very much and congratulations on the fantastic quarter.

Thank you I guess maybe to start here.

Start here, the throughput growth rate, it's accelerating faster than as you noted, and you highlight some very impressive increases in utilization rates as well, and noted a few reasons driving that.

Start here the throughput growth rate it is accelerating faster than <unk> as you noted and you highlighted some very impressive increases in utilization rates as well noted a few reasons driving that.

Based on the guidance increase, it looks like demand is perhaps even stronger than your internal expectations. So, can you comment on how you're thinking about demand growth going forward and how that is shaping development plan and the thought process around that? Is there, is there.

Based on the guidance increase it looks like demand is perhaps even stronger than your internal expectations.

Can you comment on how youre thinking about demand growth going forward and how that is shaping a developed plan and the thought process around that is there is there I guess desire to maybe accelerate installations in certain locations where utilization rates are particularly strong. Thanks.

I guess, desire to maybe accelerate installations in certain locations where utilization rates are particularly strong.

Yeah, because we've got a pretty sophisticated network planning tool that takes into account all of these trends.

Yeah, because we got we got a pretty sophisticated network planning tool that that takes into account all of these trends down to the census block level. So yes, we're thrilled overall about about the kind of the compounding factors that are increasing utilization and will continue to be able to sort of accelerate.

down to the census block level. So yeah, we're thrilled overall about the kind of the compounding factors that are increasing utilization and we'll continue to be able to sort of accelerate in particular locations where we see that demand growing more quickly.

In particular locations, where we see that demand growing more quickly and remember we still got tons of headroom on the existing network. So what we're doing as we plan. The future build is there's a 12 to 18 months lead time for when those stations go lives. So we've got we've got lots of time as we're thinking about where those market trends are going to take hold most so it's again it's.

And remember, we've still got tons of headroom on the existing network. So what we're doing is we plan the future build is, you know, there's a 12 to 18 month lead time for when those stations go live. So we've got we've got lots of time as we're thinking about where those market trends are going to take hold most.

So it's again, it's a beauty of our model is that it's disaggregated capital investments in particular locations that we can ramp up or down based on sophisticated tools. Yeah, and maybe just to add on that, since Network Plan sits within my preview, it's an iterative tool. So.

It's the beauty of our model is that it's a disaggregated capital investments in particular locations that we can ramp up or down based on sophisticated tools, yeah, and maybe just to add on that.

<unk> nugget plant's sits within it within my purview, it's an iterative too so.

every moment, every month of new data gets fed back into the network plan, and it feeds into the future optimization. So this recent increases, just like before when we didn't observe such increases, but yet we still observed other learning elements of that, they always go back to the network plan and ensure that network plan is based on the most recent trends and most recent

Every moment every months of new data get gets fed back into the network plan and it it seeds into the future optimization. So this recent increases just like before when it didn't have such increases, but yet we still observed other learning elements of that they always go back to the network glad and I'm sure that network win is based.

On the most recent trends in most recent hum observable utilization and in other Factoids, we see including the V sales et cetera. So there's nothing new here. They say our message has always been as such.

observable utilization and other factoids we see, including the v-cells, etc. So there is nothing new here per se, our method has always been the same.

Got it. All right. Thank you. And then I guess maybe just following up on the man trend, but looking at it from.

Got it okay. Thank you and then I guess, maybe just following up on demand trend, but looking at it from the.

demand for chargers, you know, the narrative around EV demand is sub-negative and one of the reasons that driving this is the perceived lack of access to charging infrastructure One would think that this might be a signal to the OEMs out there to accelerate EV infrastructure investment to address these concerns more quickly And I think this could probably be an opportunity for you all both and extend

Demand for Chargers, the narrative around EV demand, it's been negative and one of the reasons that driving us is the perceived lack of access to charging infrastructure.

One would think that this might be a signal to the Oems out there to accelerate EV infrastructure investment to address these concerns more quickly and I think this could probably be an opportunity for you all boats and extend.

line of business, as well as just partnerships in general. So, can you comment on any of the conversations that you're having with potential OEM partners? You know, is there any change in their sense of urgency to accelerate installations, and just any kind of updates there? Thank you.

Line of business as well as just our partnerships in general So can you comment on any of the conversations that you're having with potential OEM partners.

Is there any change in their sense of urgency to accelerate installations, just any kind of updates there. Thank you.

And so look, we've got great relationships, as you can see, with all the leading OEMs, and they are continuing to look, they've made commitments to invest like the total accumulably, over a trillion dollars in electrification and transportation. So they're bullish on this space.

And so look we've got great relationships as you can see with the with all the leading Oems and they are continuing they've made commitments to invest like the total accumulated over a trillion dollars in electrification of transportation. So they are bullish on this space.

Everybody's got this eye towards we're going to have over 30 million EVs on the roads in America by 2030. So, you know, we're continuing to work closely with them, and it's not just GM, you know, the announcements this time with Stellantis and Honda, which are new partners of ours, we're all very, very excited about creating convenient, reliable charging, fast charging infrastructure for the accelerating demands for fast charging in particular. So it's all it's sort of, from our perspective, Chris, it's all good.

Everybody has got this eye towards we're going to have over 30 million Evs on the road in America by 2030. So we're we're continuing to work closely with them.

Not just GM there.

The announcement this time with the Atlantis, and Honda, which are new partners of ours.

We're all very very excited about creating convenient reliable charging fast charging infrastructure for the excel.

And accelerating demand for fast charging in particular so.

It's all it's sort of from our perspective, because it's all good.

Yeah.

All right, thank you.

Thank you.

Your next question comes from the line of James West with Evercore ISI. Your line is open.

Your next question comes from the line of James West with Evercore ISI. Your line is opened.

Okay.

And Kathy, congratulations on the solid quarter and ending your tenure with a very strong third quarter here. And Bidar, welcome. I look forward to working with you.

And Kathy and congratulations on the solid quarter and then your tenure with a with a very strong third quarter here, but all are welcome and look forward to working with you.

Thanks James.

So, Kathy, one of the things I wanted to just touch on.

So.

I think one of the things I wanted to just touch on it.

is we've got the NEVI program, which is increasing awareness. We've got a lot of states that are trying to kind of amp up their adoption and put in more charges. Are you starting to see the ability to accelerate

As we've you know we've got the Navy program, which is increasing awareness. We've got a lot of states that are trying to kind of ramp up there.

Adoption and put it in a more charges already starting to see the.

The ability to accelerate your.

Your placement of chargers, I know you guys have a ton of sites that are already specced and are ready to go, but getting permits and working with utilities has always been kind of a delay. Are you starting to see that ease somewhat?

Replacement of charges I mean, I know you guys have a ton of sites that they're already specced in or ready ready to go but getting permits I'm working with utilities has always been kind of a delay.

Are you starting to see that the ease somewhat.

Yeah, it's a great question. Look, I think it's a classic thing and you would have seen this in other work that you've done. The sector is maturing, like, you know, when I started six years ago.

Yeah. It's a great question look I think it's a classic thing and you would have seen this in other work that you've done the sector is maturing again, when I started six years ago.

you know, almost no local governments had ever received a permit to build a fast charging station, and now almost all of them are seeing them, or either have seen them and have sighted them or are beginning to see them, because this is well and truly a national phenomenon.

Almost no local governments had ever received a permit to build a fast charging station and now almost all of them are seeing them are either have seen them and thats have cited them or or are beginning to see them. So it because this is well and truly a national phenomenon. So the permitting is getting a bit easier the utilities are becoming quite familiar with it.

So the permitting is getting a bit easier, the utilities are becoming quite familiar with this. The longest pole in the tent on the actual building process right now is still with the utilities, not because of lack of awareness, but because there's still a bit of a bottleneck on transformers for them, on the service upgrades. What we've done to compensate for that is we just have a bigger funnel. So, you know, you alluded to this in your question, we've got line of sight to 10,000 perspective.

Is the longest pole in the 10 on the actual building process right now is still with the utilities not because of lack of awareness, but because there is still a bit is a bit of a bottleneck on on transformers for them on the service upgrades.

What we've done to compensate for that is we just have a bigger funnel. So you alluded to this in your question. We've got line of sight to 10000 perspective.

vocations that would provide positive NPV for eBGO, and for us it's a question of pacing those and matching that pace of deployment to when the NEVI funds are going to drop, when utility make ready programs are going to be available, when the utilities can accommodate that in their planning schemes, and we've just all become much more sophisticated about working together on getting that done.

Patients that would provide positive NPV.

E V go.

For us it's a question of pacing those and matching that pace of deployment to win the Navy funds are going to drop when utility make ready programs are going to be available when the utilities can can't accommodate that in their planning schemes and we've just all become much more sophisticated about working together on getting that done so.

So it's, you know, it's still not an overnight thing to build like a charge. I guess it would say one other thing about trends.

It's you know it.

No not an overnight thing to build like a charge I guess I would say one other thing about trends is that again when I started at <unk> six years ago, mostly it was single or maybe two charges at a location now our standard is six stalls or above and we're actually also working with GM right now on creating flagship stations that are going to be 20.

is that again when I started at EVgo six years ago, mostly it was single or maybe two charges at a location. Now our standard is six stalls or above and we're actually also working with GM right now on creating flagship stations that are going to be 20 stalls per location.

<unk> per location there is an appetite now in of demand now that have bigger locations in shopping center parking lot grocery store parking lot and so that's what we're going to deliver so it's all really really exciting, but I think it's actually just classically the market is maturing the demand is getting higher and that's all happening together.

There is an appetite now and a demand now to have bigger locations in shopping center parking lots, grocery store parking lots. And so that's what we're going to deliver. So it's all really, really exciting that I think it's actually just classically, the market is maturing, the demand is getting higher and that's all happening together.

Got it and maybe just a quick follow up for me on the depot sites you mentioned your building a second one how large is a depot site for you at this point how many souls? You know again depends on the particular location You know somewhere between 18 and 30 kind of typically is what we're looking at for the site. Yeah

Right. Okay got it and then maybe just a quick follow up for me on the depot site you mentioned Youre building a second one how large is a depot site of for you at this point how many souls.

Again, it depends on the particular location.

Somewhere between 18 and 30 kind of typically is is what we're looking at for the okay. Yes.

Yes.

Okay got it thanks.

Thank you.

Your next question comes from the line of Bill Peterson with JP Morgan. Your line is open.

Sure.

Next question comes from the line of Bill Peterson with Jpmorgan. Your line is opened.

Yeah, hi, good morning. Thanks for taking the questions. And similarly, Kathy, you know, good luck in the next steps and looking forward to working with you.

Yeah, Hi, good morning, Thanks for taking the questions and similarly, Kevin Good luck in next steps at <unk> look forward to working with you.

First question is on the initial disclosure. So Pennsylvania actually had a disclosure on the NEBI award.

First first question is on the initial disclosure so, Pennsylvania, you actually had some disclosure on that that'd be awards.

And it's not comprehensive, but some of the information would point to easy go and other project costs being material higher than test flows. Looks like around double. I'm not sure if this is apples to apples, but I guess, can you break down some of the cost elements and how you're thinking about hardware. Construction installation, I guess, in order to be more competitive across these sort of netty grants into the new year.

Comprehensive, but some of the information would point to you to go and other project costs being material higher with cash flows it looks like around double I'm not sure. This is apples to apples, but I guess can you break down some of the cost elements to how youre thinking about hardware construction installation I guess in order to be more competitive across the sort of levy rushed into the new year.

You know, Bill, I think you're right. I think that it isn't necessarily apples to apples. But, and Olga, you may want to chime in with what we sort of On our breakdown of our capex

You know Bill I think you're right I think it it isn't necessarily apples to apples.

But and although you may want to chime in with what we sort of.

On our breakdown of our Capex like a bill of materials.

Yes, so our CapEx right now is $150,000 on average per stall. That is inclusive of Everest.

Yeah sure. So our Capex right now is $150000 on average per install that is inclusive of everson.

all the types of equipment, all the labor, all the utility work. So for some sites, you'll have a lot. For some sites, you will have the minimums, but on average, there will be costs associated with it. So roughly 40% of it is equipment, 60% of it is labor. We have seen Tesla numbers. We believe they, for example, don't include utility.

All of the types of equipment all the labor all the utility work. So for some sites you'll have a lots of sometimes you will have a de minimis, but on average right.

There will be costs associated with that so roughly 40% of it is equipment and 60% of all it is labor.

Hassan Tesla numbers, who believes aid for example don't include utility.

components and it's hard for us to comment what portion of labor is included on an equipment to equipment we we're kind of looking at it and uh that's probably a little bit more apple to apple but then overall capex it's very hard for us to truly die sure by just looking at absolute number reported and saying it is

And it's hard for us to comment what portion of Labor is included on an equipment to equipment, we were kind of looking at it and Oh, that's probably a little bit more apple to Apple, but then overall capex, it's very hard for us to truly does serve I was just looking at absolute number reported in saying it is.

We can compare it to 100, 16, could cause it to half. We don't know what's missing. We know YouTube is a missing, but we don't know what else is missing to do for comparison.

We can compare 200 assistant Cucuzza. This half we don't know, what's Mesa would know Youtube, which is amazing, but we don't know what else is missing to do a full comparison.

But let's, let's just zoom up for a second Bill, suffice it to say that every smart business is looking to decrease its bill of materials and to innovate and so that's why we're real particularly excited like we just announced this, this prefab skid that we're doing that's going to increase, that's going to decrease costs and save a lot of time so that's both a labor, a labor benefit and equipment benefit. And there's lots of other things in our roadmaps that are going to be getting

But let's just assume up for a second bill suffice it to say that everything that every smart business is looking to decrease it is bill of materials and to innovate and so that's why we're particularly excited like we just announced this this prefab skids that we're doing that's going to that's going to decrease costs and save a lot of time. So that's both a labor our labor and equipment benefit.

And there's lots of other things in our Roadmaps that are going to begin.

So we're all you know, and you will hear about those I think from from barter and over next year, but we're very, very excited about our innovation roadmap to remain competitive.

So and.

And you will hear about those I think from a modern over next year, but we're very very excited about our innovation roadmap to to remain competitive.

That's helpful. And I guess, you know, trying to think about the share, first of all, there's great network throughput growth here, utilization trends are turning higher. But if we think about the model working long-term, it's going to be about installing more stalls and kind of letting this flywheel take effect. So, I guess if we think about next year and beyond, how should we think about your share of ports being installed? Does EV go need to expand in 2024?

That's helpful and I guess trying to think about the share first of all this great network throughput grew.

Growth here utilization trends are trending higher but if we think about the model working long term, it's going to be about installing more styles and kind of lumpiness flywheel take effect. So I guess, if we think about next year and beyond how should we think about your share of ports being installed the ZB going to expand in 2024 and.

and 2025 faster than the market in order to drive this flywheel? And I guess, really, ultimately, how dependent on this growth plan in the next year will be dependent on policy support or BOE loans or other funding? Yeah. So maybe to start really at a high level, when we think about our market share, we always think about a market share as a percentage of kilowatt hours which gets dispensed at DCFC.

In 2025 faster than the market in order to drive this flywheel and.

And I guess really ultimately how dependent on this growth plan into next year will be dependent on policy support for Joey loans or other funding yeah. So maybe just start really at a high level. What do we think about our marketshare, we always think about our market share as a percentage of kilowatt hours, which gets dispensed in D. C. F C. So when we.

So when we do our network plan, be it short term or long term, we always optimize for that market share rather than the number of ports. So we are not, our goal is not to put as many ports as somebody else or as many ports as average. Our goal is to put the ports in the highest utilization locations to maximize the profitability of every single port we invest in it. So from that perspective, we're going to do that.

Our network plan.

The short term or long term, we always optimize for that market share rather than the number of ports. So we are not our goal is not to put as many ports to somebody else or as many ports as average our goal is to put the ports in the highest visualization locations to maximize the profitability of every single port with best in it so for them.

That perspective.

We probably won't depend on how else, how everybody else is deploying. That's just not the metric we're looking at. I don't even have hard time kind of like commenting on it, which is going to be faster or slower, what we, what you've observed in our filings and what we're reiterating with this quarter, that we are growing faster than VIO.

Oh.

We probably well it depends on how else how everybody else's deploy and that's just not the metric. We're looking at so I haven't had a hard time kind of like a commencing on things, but it is going to be faster or slower what we what you observed in our filings are worthy to Raytheon was this quarter, we are growing faster than via your.

in terms of the throughput. So we are gaining and our various extrapolations showed that in the last few quarters we've been gaining market share. We've been gaining market share with the DCFC segment. The overall DCFC segment has been gaining market share in terms of percentage of people charging DCFC versus O2. So those are the metrics we're looking at because they're directly tied to profitability. The number of ports

Of the throughput. So we are gaining in our various extrapolations showed that in the last few quarters, we've been gaining market share we've been gaining market share with a disease. She segment. The overall just safety segment has been gaining market share in terms of percentage of people charge and disease fever. So two so those are the metrics, we're looking at because it directly attached to it.

Visibility the number of sports.

without utilization is a simple sunk cost and that's not how we look at our business.

Without utilization is as simple sand cost and that's not how we look at our business.

Yeah.

Is that is that helpful.

Bill.

Well, yeah, yeah, sorry. I was on mute. It is helpful, but I guess, you know, still nonetheless, I mean, you know.

Yes, sorry, I was on mute.

Helpful.

I guess still nonetheless.

You need to have a critical mass. I would think you need in these markets. You talked about always sort of new non-California markets.

You know you need to have critical mass I would think you are in these markets you talked about all these sort of new non California markets.

in terms of driving mindshare and driving people to these sites. So I guess how much will that depend on other funding opportunities versus your own balance?

In terms of driving mindshare in driving people to the site. So I guess, how much we'll give that depend on on other funding opportunities versus your own balance sheet, Oh that from that perspective, yeah. So we we are they.

Oh, from that perspective, yeah. So we, we, the Evigo business is expected to be financed through a combination, through a combination of cash on balance sheet, the funds and sources, which, which include.

If you go business is expected to be financed through combinations. So a combination of cash on balance sheet funding sources, which isn't which include state and federal state and municipal programs, so to see and partner funding. So as as I mentioned in my prepared remarks for example for 'twenty for 'twenty to 'twenty three.

federal state and municipal programs, so to see and partner funding. As I mentioned, my prepared remarks, for example, for 2023, roughly 45% of 2023 vintage cup acts of the cup acts spend on 2023 assets will be financed through the source.

With 45% of 20th went to sort of vintage cut back some of the Capex spend on two months. It went to three assets will be financed through the sources. We expect similar ratios going forward and that is already baked into the network plans I spoke a little bit early on this call about the network wants and that's the plan takes into it takes it into the account we also.

We expect similar ratios going forward, and that is already baked into the network plan. We spoke a little bit earlier on this call about the network plans. The network plan takes it into the account. We are also, as we've already mentioned before, in the process of applying for a DOE loan, which is a very optimally priced source of capital. It's a non-dilutive source of capital, which would allow us to.

So voter dimension before in the process of applying for a jewelry loan which is a very optimally priced source of capital to non dilutive sources of capital, which would allow us to.

really underpin our network plan in 2025, 2026, and beyond. So we're constantly thinking about various funding sources, and it always will be a combination of cash on balance sheet, non-dilutive financing sources, and various grant programs.

Really underpin our network plan and 20th century Fox with went to six and beyond so we're constantly thinking about various funding sources and it always will be a combination of cash on balance sheet.

Non dilutive financing sources and betters grant programs.

Okay. Thanks for that that's helpful I'll pass on.

Yeah.

Your next question comes from the line of Chris Pierce with Needham & Co. Your line is open.

Your next question comes from the line of Chris Pierce with Needham <unk> Co. Your line is opened.

Hey, good morning, I was hoping we could drill down a bit on gross margins I know gross margins were down this quarter because of less equipment sales, but could you speak to where gross margins are as far as so in kilowatts, roughly where they are now and where they could go in the future.

I was hoping we could drill down a bit on gross margins. I know gross margins were down this quarter because of less equipment sales, but could you speak to where gross margins are as far as selling kilowatts, roughly where they are now and where they could go in the future? And is it possible to kind of get a level of – like, if we exclude equipment sales, like, what level of network throughput would EVgo need to be adjusted even to positive?

And is it possible to kind of get a level of like if we exclude equipment equipment sales like what level of network throughput would you be going need to be adjusted adjusted EBITDA positive.

All right, so let me start with gross margin. So we are, we're looking, so you're looking at gap gross margin.

Alright, So let me start with gross margins. So we are we're looking so youre looking at GAAP gross margin.

The gap growth margin has a bunch of depreciation and marginalization, so it's a lot of non-cash expenses. When we're managing the business, we're looking at adjusted growth margin that the number we're reporting and we clearly saw an expansion. This quarter versus last quarter versus last quarter this year, so we're reporting to 6.4%, which is caused by

The GAAP gross margin has a bunch of depreciation amortization. So it's a lot of noncash expenses. When we are managing the business. We're looking at an adjusted gross margin. That's a number we're reporting and we clearly saw an expansion this quarter versus last quarter versus last quarter. This year. So we reported went to six 4% which is.

Is caused by.

Higher.

Utilization on our network, which allows to fully exhibit the leverage effect and amortize some of the net fixed cost. So that's kind of a comment on that. On a gap, gross margins are why we're seeing a lower number than last quarter. So you're absolutely right. That's a revenue mix. We had a higher portion of extended revenues last quarter. Extended revenues kind of don't have attached depreciation amortization to them. That's why you're seeing that.

Utilization on our network, which allows us to fully exhibit deleverage effect.

And amortize some of them that fixed cost. So that's kind of a comment on that on our GAAP gross margins of why we're seeing a lower number than last than last quarter. So that that's you're absolutely right. That's a revenue mix. We had a higher portion of extends revenues last quarter extended revenue just kind of don't have attached depreciation amortization to them.

That's why you see in that.

But again, adjusted gross margins probably a better number to look at, to measure the progress of the business. It's a consistent number. You can, you can, we reported every single quarter.

But again, our adjusted gross margin is probably a better number to look at to measure to measure the progress of the business. It's a consistent number you can you can we reported every single quarter.

Now, when we're talking about adjusted EBITDA neutrality, we're clearly...

Now when we're talking about adjusted EBITDA neutrality, we're clearly.

Approaching it as you might see from from the recent trends we

Approaching that as you might see from a from the recent trends. We if you compare this quarter versus quarter this quarter last year our.

to compare this quarter versus quarter. This quarter last year, our DNA is percent of revenue has tremendously come down from 230% of revenue.

G&A as a percent of revenue has tremendously come down from 230% of revenue.

to 67% of revenue. And so that's a clear illustration that we're in the path to profitability. When exactly it's going to happen, that will happen in the next couple of years. The exact moment we will be talking to the market about this in the coming months and update the markets fully on that. But that's probably.

6% to 7% of revenue.

So that that's a cool illustration that when the path to profitability when exactly it's going to happen that will happen in the next couple of years. The exact moment will be we will be talking to the market about this in the common months and update the market fully on that.

Well, that's probably as much as I can say right now.

Okay.

Okay, just at a high level, is that the right way to think about the business? You've got these equipment partners right now, and then as those kind of, as that gets built out.

Okay. Okay, just at a high level is that the right way to think about the business you've got these equipment partners right now.

And then as those kind of at that gets built out in the later years, it's gonna be be about margins on electricity sales to drivers in that sorry, just to confirm youre going to start something youre going to get more detail on maybe in the coming in the first half of next year, He said or at a later date yeah. So so the the older or is that not the right way to think of.

In the later years, it's going to be be about margins on electricity sales to drivers and that's where just to confirm you're going to that's something you're going to get more detail on maybe in the coming.

In the 1st half of next year, you said, or at a later date. Yeah, so so the overall that's not the right way to think about the business. Yeah, it's sort of going to work together or it's a combination of factors. So electricity margin is absolutely the, the fact and electricity margin is dependent on our pricing is dependent on a.

Yeah, that's what I was going to work together or it's a combination of factors. So electricity margins absolutely there the factor in electricity margin is dependent on our pricing is dependent on a composition of network locations, because the logistic cost a wildly different across the country. It.

composition of network locations, because the logistic costs are wildly different across the country. It's dependent on our efforts on getting ourselves on EV rates, which are usually more favorable. But then there are other factors. You have always energy costs, but you have non-energy costs.

It's dependent on our efforts on getting ourselves on E V rates, which are usually more favorable but then there are other factors you have always allergy Crosby have non energy costs built into our cost of goods sold and overall network costs, such as maintenance AT&T and Verizon connectivity charges. Some software charges call center, and so on and so forth.

built into our cost of goods sold and overall network costs such as maintenance.

AT&T and Verizon connectivity charges, some software charges, call center, and so on and so forth. So those, those

So those those items are semi fixed in the nature and now our ability to cut costs on a per store basis is what driving the margins on maintaining the cost that would drive in driving that margin as well. So it's not all just about energy costs, it's not all about the price and you have some other costs. So what's the right way to.

a semi-six in the nature and now ability to cut costs on the first old basis is what driving the margin on maintaining the cost that would drive in driving that margin.

As well, so it's not all just about energy costs. It's not all about the price and you have some other costs. So, the right way to think about it is is.

Think about it is is.

looking at energy margin, looking at pricing, but also making sure that we as a business are able to optimize for those semi-fixed costs as well on the network. That would inform the margin. So the margin right now, 26.4% adjusted gross margin basis. We had 15% utilization this quarter. The utilization is expected to go up, as we all hope. So that margin, you should expect to see that number expanding with high utilization on the network.

Looking at the energy margin looking at pricing, but also making sure that way as a business that able to optimize for those semi fixed cost as well and that's something that would inform the margin. So the margin right now a 26, 4% and adjusted gross margin basis, we had 15% utilization this quarter, but utilization is expected.

To go opposite we all hope so that margin you should expect to see that number expands and with high utilization on the network.

Okay. Thank you.

Yeah.

Your next question comes from the line of Andre Sheppard with Cantor Fitzgerald.

Your next question comes from the line of Andre Shepherd with Cantor Fitzgerald. Your line is opened.

Hey, good morning everyone. Thanks for taking our questions and congrats on a strong quarter. Kathy, I echo everyone's thoughts. You will be missed. I wish you all the best. And your future endeavors, and we'll certainly miss your Evie. Industry updates in the earnings call, but they are looking forward to working with you as well. Kathy, maybe a question for you, you know, we've seen some of the large out there. Ford, Mercedes.

Hey, good morning, everyone. Thanks for taking my questions and congrats on a strong quarter, Kathy I Echo everyone's thoughts.

You will be missed I wish you all the best.

In your future endeavors, and we'll certainly Miss your EV.

Industry updates in our in the earnings call but.

They are looking forward to working with you as well.

Cathy maybe a question for you we've seen some of the large Oems out there Ford Mercedes.

Tesla even to some degree talk about this potential slowdown and that the man for EVs at least in the near term curious just maybe to get your thoughts on that and how that might translate into the charging industry and and in particularly into a Lastly, I as well.

First of all you've been to some degree talk about this potential slowdown in the demand for EV. So at least in the near term curious just maybe to get your thoughts on that and how that might translate into the charging industry and in particularly into <unk>. Thank you.

Yeah, thanks Andres, and I'm just talking to you on these quarterly calls as well. So yeah, what's fascinating is that the slowdown is relative to a giant, I mean, that is talked about is kind of a modulated slowdown from some vertical growth. So we're still looking at, I mean, by all industry accounts.

Yeah, Thanks, Andreas and yeah.

Just talking to you on these quarterly calls as well so yeah.

What's fascinating is that the slowdown is relative to a giant I mean that that is talked about Israel is is kind of a modulator slowdown from some some vertical growth. So we're still looking at I mean by all industry accounts, you know, 40% to 60% growth next year in a slower market than for any other.

you know, 40 to 60% growth, you know, next year in a slower market. And for any other sector that would be viewed as like, oh, my goodness gracious. It's so fast. So, you know, you're, we're going from 3 million EVs today to five to six. It's by the end of 2024 and up to 35 by, you know, 35 million by 2030. So it is, it is, it remains a very fast growing sector. The, the.

The sector that would be viewed as like Oh, my goodness gracious. It. So fast so we're going from 3 million Evs today to five to six by the end of 2024 and up to 35 by you know $35 million by 2030. So it is it is it remains a very fast growing sector. The the the modulate.

The modulation of that is, again, we can actually lean in a little bit more to go a little bit more quickly on deploying stations.

<unk> of that is again, we can actually lean in a little bit more to go a little bit more quickly on deploying stations more quickly if we need to and we can pull back just a little bit if it's going to slow down just a little bit I mean truly I actually do love the Gretzky metaphor.

more quickly if we need to. And we can pull back just a little bit if it's gonna slow down just a little bit. I mean, truly, I actually do love the Gretzky metaphor. And so for us, it's still like, it really is up and to the right. And whether 2024 is a little bit slower, all of the OEMs are building capacity to make hundreds of models of EVs.

So for us it's still like it it really is up into the right and whether 2024 is a little bit slower all of the Oems are building capacity to make hundreds of hundreds of models of Evs, there's no denying that so what happens in 2000 22024, if because interest rates are high and an overall EV.

there's no denying that. So what happens in 2020, 2024, because interest rates are high and overall EV sort of sales are down, I guess it just doesn't terribly worry us. The macro trend is still really, really strong and as evidenced by what we saw on the utilization trends right now, right? So to be a leading provider of essential infrastructure for an increasingly hungry set of people that need fast charging is a fantastic place to be.

<unk> sales are down I guess, it just doesn't terribly worry on the macro trend is still really really strong and as evidenced by what we saw in the utilization trends right now right. So to be a leading provider of essential infrastructure for an increasingly hungary's set of people that need fast charging is a fantastic place to be.

Yeah.

Got it. That's a super helpful. I appreciate all that. Maybe as a follow up, I have a bit of a two part question. So, you know, with in regards to the Navy, you know, I think we will probably agree that the deployment of the funds has been maybe slower than most of us would like.

Got it that's super helpful. I appreciate all that and.

Maybe as a follow up I have a bit of a two part question. So.

So.

And of course, then Debbie.

I think we would all probably agree that the deployment of the funds has been maybe slower than most of us would like.

So, I'm just curious if you can just remind us of your run rate with your current liquidity on hand. I think in the past, you had said. That's sufficient to fund the business into 2025. so I just wanted to confirm that. And then if I just could also wanted to add.

So I'm just curious if you can just remind us of your run rate with your current liquidity on hand, I think in the past you had said that is sufficient to fund the business into 2025, So I just wanted to.

Confirm that and then if I just could also wanted to add.

With, you know, inflation and higher interest rates, I'm curious to get your thoughts on how you see the energy ASP.

With <unk>.

Inflation and higher interest rates I'm curious to get your thoughts on how you see the energy a S P.

fluctuating next year. Which there would be somewhat of a

Fluctuating.

Next year, we should there be a somewhat of a <unk>.

consider we'll step up in that call or just curious to get your thoughts there. Thank you. Yeah, so we're confirming with the current cash and the balance sheet and with the combination of some of that funded fund and we talked on a call earlier like grant fund and which we were just secured and just about to collect. We well finance well into 2025. We don't need any extra capital until that moment. On.

Considerable step up in that cost or just curious to get your thoughts there. Thank you yeah. So we're confirming with the current cash on the balance sheet with a combination of some of that fed funds and we've talked on the call earlier, my grandsons, and which we wanted to secure and just about to collapse, we are well financed well into two 1%.

We don't need any extra capital until that moment on.

Yeah.

Yeah.

So did you end up using as a second question.

Yeah, the second part was just around the, oh, the, yeah.

Yeah. The second part was just around the Oh the answer is yes.

I really appreciate what you might expect. Yeah. Thank you. So the interesting thing about energy cost. So we're seeing that customer of utilities. And we're very distributed across the country. So the good thing is that we're not tied to any wholesale volatility and we're not tied to any particular utility due to distribution nature. So utilities do tend to pass on some of the costs to its customers. But because of the distributed nature of our network, it doesn't happen.

Sorry, it's kind of what you might expect.

Thank you so the other thing about energy cost, so where C&I customer of you too. It is and we're very distributed across the country. So the the good thing is that we're not tied to any wholesale volatility and we're not tied to any particular utility due to distribution nature. So utilities do tends to pass on some of the costs.

Its customers, but but because of the distributed nature of our network it doesn't happen at.

at the whole network level at the same moment of time. So it happens in the pockets of the network. We're constantly monitoring it. And we do have some sophisticated forecasts and probability-weighted assumptions on which parts of the networks will increase with which parts in the network won't increase. Now, what we also want to remind everybody is that we're absolutely free in passing those increases back to our customers. We're not regulated in terms of how much we can charge our customers. And we have a very sophisticated approach to our pricing, which I think we've discussed multiple times on this call, where we have a time-of-use price, and location-based price, and subscription price. And so there are ways of trying to charge price-intensive customers more and allow access for price-sensitive customers at some other, maybe less popular times and whatnot. So even if we're seeing those increases.

And the whole network level at the same moment of time. So it happens in the pocket something that we're constantly monitoring that and we do have some sophisticated Florida, carsten and probability weighted our assumptions on which parts of the Netflix will increase which bought some in the network. One in place now what we also want to remind everybody that we can.

Can we're absolutely free in passing that those increases back to our customers. We're not the regulators in terms of how much we can charge our customers and we have a very sophisticated approach to our pricing, which I think we've discussed multiple times on these calls where we have a time of use pricing location based price and subscription pricing. So they are there.

A little ways off trying to charged cotton price insensitive customers more and allow access for price sensitive customers at some other maybe less popular times and whatnot. So even if we're seeing those increases that doesn't erode into our margin because were able to pass it on them consumers pretty much right away as we see.

That doesn't erode into our margin because we're able to pass it on on consumers pretty much right away as we.

Yeah.

Okay.

Got it. Super helpful. Thanks again, guys. Congrats on the quarter. I'll pass it.

Got it Super helpful. Thanks, again, guys congrats on the quarter I'll pass it on.

Your next question comes from the line of Gabe Dowd with TD Cohen. Your line is open.

Your next question comes from the line of Gabe Daoud with T. D. Cohen Your line is opened.

Thanks. Hey, morning, everyone, and congrats, Kathy and Badar, to you both. We're hoping we can maybe get a little more color on just CapEx trajectory from here. It's fair to assume that spend could actually decelerate in 24 just to preserve cash and considering utilization rates are quite high across some of your portfolio. We'll have to get a sense of the CapEx trajectory and how much

Thanks.

Everyone and congrats Katharine bought our two bowls.

Was hoping we could maybe get a little more color on just capex trajectory from here.

Is it fair to assume that spend could actually decelerate in 'twenty four just to preserve cash and considering utilization rates are quite high and some Europe across some of your portfolio would love to get a sense of the Capex trajectory and then how much.

How much is the long lead times on transformers really impacting you right now, and when do you think it could become a bigger problem?

I'm not sure the long lead times on Transformers really impacting you right now and when do you think it could become a bigger problem.

Yeah, we'll be talking about 2024, various 2024 plans in our next call, but I don't think this alliteration is on the books, but we will obviously talk about all kinds of 2024 metrics in a few months from now.

Yeah, well, we'll be talking about a two month event for our various tens of other coal plants in our next call, but I don't think deceleration is on the books, but we will obviously talk about all kinds of 'twenty 'twenty four matrix in a few months from now.

Yeah.

Yeah, and, and we just, let me just add on the sort of the, the transformer thing, we, if the transformer thing isn't slowing us down at all the transfer with the reality is that we just take account of the fact that transformers are going to take a long time. So we plan for it. Right? So, you know, we're, we're being helpful to utilities and we have a line of sight into which utilities have ordered transformers for the places because, you know, I think, as I mentioned before, we go in and we meet with every single utility where we're building and we give them our twelve to eighteen months to twenty four months, you know, kind of our game plan of where we're thinking we'll build so that they can actually make the orders for any service upgrades that are required and there are lots of lots of most places now do require a service upgrade, as I think we've described, some of them are going to get their equipment faster than others, but we've got this machine.

Yeah and and okay.

Let me just add on the sort of the transformer thing.

If the transfer everything isn't slowing us down at all the transfer well. The reality is we just take account of the fact that transformers, they're going to take a long time. So we planned for it right. So you know, we're we're being helpful to utilities and we have a line of sight into which utilities have order transformers for the places because you know I think as I've mentioned before we go in and we meet with every.

Single utility where were building and we give them our 12 to 18 months to 24 months kind of our game plan of where we're thinking we'll build so that they can actually make the orders for any service upgrades that are required and there are lots of lots of most places now do require a service upgrade as I think we've described.

Some of them are going to get their equipment faster than others, but we've got this machine that under the direction of dentists Kish. Our C. O O is extremely agile it's got to be the best in the business and so we are able to like we were able to ship or to shift our teams around to build where we can build when that when the utilities are ready to accept that when there is.

that under the direction of Dennis Kish, our COO, is extremely agile. It's gotta be the best in the business.

And so we are able to shift our teams around to build where we can build when the utilities are ready to accept that, when the utilities are ready to install their parts of it as well. So we've got a very big funnel and a very good line of sight to what we're building. So that's not...

Utilities are ready to install their parts of it as well. So we've got a very big funnel and are very in a very good line of sight to what we're building. So that's not it's not a gating item. It may mean that we're not turning on as many as quickly you Youll remember a couple of years ago I thought Oh, let's get this all down to six months from start to energize Asian, well, it's not.

It's not a gating item. It's just what may mean that we're not turning on as many as quickly. You'll remember a couple years ago, I thought, oh, let's get this all down to six months from start to energization.

Well, it's not there yet, and maybe in a few years it will be, but that's okay because we now plant.

There yet and then you know maybe maybe in a few years it will be but that's okay. Because we now plan for it.

Okay, okay, that's helpful. And then, I guess, just just as a follow up.

Okay.

Okay. That's helpful.

And then I guess, just just as a follow up.

Could you maybe talk a little bit about, I lost my train of thought.

Could you maybe.

Talk a little bit about.

I'll start here.

Yeah.

Demand charge reform, that's where I was heading. Just is there an update there on maybe new jurisdictions and making some progress with demand charge reform in areas outside of California? I'll just leave it there. Thanks, everyone. Yeah, so, you know, we've got a great team that does all of our utility regulatory advocacy and interventions. And again, I don't remember off the top of my head.

Demand charge reform, that's where I was heading just is there is there an update there on maybe your jurisdictions and making some progress with demand charge reform in areas outside of California, I'll just leave it there. Thanks, everyone. Yeah. So we've got we've got a great team that does does all of our utility regulatory advocacy and interventions and again I don't remember off the top of my.

the sort of half dozen or between a half dozen and a dozen jurisdictions where we're active. But that's demand charge reform, extension of EV rates that are conceivably sunsetting, all of those things are on the boil in, again, well outside of California.

Head the sort of half dozen nor does it between a half dozen or a dozen jurisdictions, where we're active.

But that demand charge reform extension of EV rates that are but conceivably sunsetting all of those things are on the boil and again, well well outside of California, and I, just I'm not remembering off hand, but gave happy to take that on notice.

I just am not remembering offhand, but gave happy to take that on notice and get back to you guys on where those rate cases are underway.

And and get back to you guys on on where those rate cases are underway.

Yeah.

There are no further questions at this time. I'd like to hand things back over to Kathy Zoey for a close.

There are no further questions at this time I'd like to hand things back over to Kathy for closing remarks.

Yes.

Thank you for attending everyone. This is our quarters financial and business update. We all appreciate your interest in EVGO. And while this is my final earnings call with you.

Thank you for attending everyone. This is our quarters financial and business update we all appreciate your interest in E. V go and while this is my final earnings call with you.

I remain financially, intellectually, and emotionally invested in EasyGo's success, and I look forward to witnessing and celebrating the progress under Bader's leadership. Thank you so much.

And I remain financially intellectually and emotionally invested an easy go success.

And I look forward to witnessing and celebrating the progress under Bob's leadership. Thank you so much.