Q4 2023 EVgo Inc Earnings Call

Good morning, My name is Rob and I'll be your conference operator today at this time I would like to welcome everyone to the E V goes fourth quarter and full year 2023 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. If you'd like to ask a question during the.

Operator: Good morning. My name is Rob, and I will be your conference operator today. At this time, I would like to welcome everyone to Evgo's fourth quarter and full year 2023 earnings conference call. All lines have been placed on mute to prevent any background noise.

Operator: After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press the star followed by the number one on your telephone keypad. If you would like to withdraw your question again, press star number one.

This time simply press star followed by the number one on your telephone keypad.

We would like to withdraw your question again.

These star one thank you Heather Davis, Vice President of Investor Relations at even though you may begin your conference.

Operator: Thank you. Heather Davis, Vice President of Investor Relations at Evgo, you may begin your conference. Good morning, and welcome to Evgo's fourth quarter and full year 2023 earnings call. My name is Heather Davis, and I'm the Vice President of Investor Relations at Evgo.

Good morning, and welcome to <unk> fourth quarter and full year 2023 earnings call. My name is Heather data and I'm, the Vice President of Investor Relations at E Z go.

Heather Davis: Joining me on today's call are Badar Khan, Evgo's Chief Executive Officer, and Olga Shevorenkova, Evgo's Chief Financial Officer. Today, we will be discussing Evgo's fourth quarter 2023 financial results and outlook for 2024, followed by a Q&A session. Today's call is being webcast and can be accessed in the investors section of our website at investors.evgo.com. The call will be archived and available there along with the company's earnings release and investor presentation after the conclusion of this call.

Joining me on today's call are Badar Khan Chief.

Chief Executive Officer, and Olga suffering silver Eagles, Chief Financial Officer.

Today, we will be discussing <unk> fourth quarter 2023 financial results.

Outlook for 2024, followed by a Q&A session.

Today's call is being webcast and can be accessed on the investors section of our website at investors Dot dot.

Dot com.

The call will be archived and available there along with the company's earnings release and Investor presentation. After the conclusion of this call.

Heather Davis: During the call, management will be making forward-looking statements that are subject to risks and uncertainties, including expectations about future performance. Factors that could cause actual results to differ materially from our expectations are detailed in our SEC filings, including in the risk factors section of our most recent annual report on Form 10-K and quarterly report on Form 10-2. The company's SEC filings are available on the investor section of our website.

During the call management will be making forward looking statements that are subject to risks and uncertainties, including expectation about future performance.

Factors that could cause actual results to differ materially from our expectations are detailed in our SEC filings, including in the risk factors section of our most recent annual report on Form 10-K, and quarterly report on Form 10-Q.

The company's SEC filings are available on the investors section of our website.

Heather Davis: These four forward-looking statements apply as of today, and we undertake no obligation to update these statements after the call. Also, please note that we will be referring to certain non-GAAP financial measures on this call. Information about these non-GAAP measures, including a reconciliation to the corresponding GAAP measures, can be found in the earnings materials available on the investor section of our website. With that, I'll turn the call over to Badar Khan, Evgo CEO. Good morning, everyone, and thank you for joining us today.

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

Also please note that we will be referring to certain non-GAAP financial measures on this call.

[noise] formation about these non-GAAP measures, including a reconciliation to the corresponding GAAP measures can be found in the earnings materials are available on the investors section of our website.

With that I'll turn the call over to Badar Khan, who began as CEO.

Good morning, everyone and thank you for joining us today.

Badar Khan: Evgo posted yet another great quarter and set of results in the 4th quarter of the season. Before we dive into those details, since this is my first call as Evgo CEO, I thought it was worth taking a moment to remind everyone of the incredible and important journey. Emissions from transportation represent the largest source of emissions, and that is why the work we do is so important. At Evgo, our mission is to accelerate the mass adoption of electric vehicles by creating a convenient, reliable, and affordable EV charging network that delivers fast charging for everyone. I believe Evgo represents a compelling value proposition, not just because of where the company is. An investment in Evgo is clearly an investment in sustainability.

<unk> posted yet another great quarter instead of results for the full year.

Before we dive into those details since this is my first call as <unk> CEO I thought it worth taking a moment to remind everyone of the incredible and important journey we're on.

Emissions from transportation represent the largest source of emissions in the United States and that is why the work. We do is so important.

The V go our mission is to accelerate the mass adoption of electric vehicles.

Getting a convenient reliable and affordable EV charging network that delivers fast charging for everyone.

I believe <unk> represents a compelling value proposition for investors not just because of where the company is currently trading.

Our investment in <unk> is clearly an investment in sustainability.

Badar Khan: But it is also an investment in a market that has a multi-decade growth trajectory without the need to pick one EV manufacturer. Our business model is also focused on the highest growth segment of the charging, D.C. past, vaccine from the data today. We like our core business of owning and operating the charging network. We generate revenue every time a customer charges on our network, unlike a one-time investment.

But it is also an investment in a market that has a multi decade growth trajectory without the need to pick one EV manufacturer over another or.

Our business model is also focused on the highest growth segment of the charging market.

<unk> fast charging effect seen from the data today.

Like our core business of owning and operating the charging networks, we generate revenue every time a customer charges on our network. Unlike a onetime equipment sale and as we continue to see our revenue is growing faster than the growth of evs.

Badar Khan: And as we continue to see, our revenue is growing faster than the growth of Evgo.,,,,,,,,,,,,,,,,, Financial discipline is key throughout our business, from the proprietary network planning model to determine where to locate our charging stations to the disciplined investment decision-making processes designed to ensure we generate double-digit returns and minimize reliance on shareholders For over a decade, Evgo has built a growth engine that is benefiting from this mega trend towards electric cars and has delivered a near triple of throughput and revenue for each of the past two years, and is adding NPV at scale annually. And, as you'll hear today, has a clear path to adjusted EBITDA break-even in 2020. And we've passed an important inflection point in 2023 as a result of the utilization and throughput levels we're now seeing across our network. The installed base is now profitable on a standalone basis. It's truly an exciting time at Evgo to be leading the company in the next phase of profitable growth. We had a great fourth quarter in 2023.

Customer capture through the site development and construction to products and services that build customer loyalty, we have a growth engine that leverages key partner and OEM relationships across this entire cycle and is hard to replicate.

Discipline is key throughout our business and the proprietary network planning model determine where to locate our charging stations with disciplined investment decision, making processes designed to ensure we generate double digit returns and minimize reliance on shareholder capital.

For over a decade <unk> has built a growth engine that is benefiting from this mega trend towards electric vehicles and <unk>.

<unk> delivered a near Trebling of throughput and revenue for each of the past two years.

Adding NPV at scale annually and as you'll hear today as a clear path to adjusted EBITDA breakeven in 2025.

And we passed an important inflection point in 2023 as a result of utilization and throughput levels, we're now seeing across our network.

Installed base is now profitable on a standalone basis.

It is truly an exciting time at <unk> to go to be leaving the company in the next phase of profitable growth.

We had a great fourth quarter in 2023 and for the full year, we delivered record levels of throughput and revenue near Trebling year over year on.

Badar Khan: And for the full year, we delivered record levels of throughput and revenue that were nearly tripled year over year. On our Q3 call, we raised revenue guidance, and I'm very pleased to say we came in above the top end of that raised guidance at $161 million in revenue. Operationally, we had another strong year of customer account growth and growth in our network in both stores. Evgo's path to profitability comes from strong top-line revenue growth but also from operating leverage driving gross margin expansion. On our Q3 call, we also provided improved adjusted EBITDA guidance for the full year. And so I'm also very pleased to say that we came in above the top end of that raised guidance at negative $58.8 million.

On our Q3 call, we raised revenue guidance and I'm very pleased to say we came in above the top end of that raised guidance at $161 million in revenue.

Operationally, we had another strong year of customer account growth and growth in our network in both stores and throughput.

<unk> path to profitability comes from strong topline revenue growth, but also from operating leverage driving gross margin expansion.

On our Q3 call. We also provided improved adjusted EBITDA guidance for the full year and so I'm also very pleased to say that we came in above the top end of that raised guidance at negative $58 8 million.

Badar Khan: As a reminder, Evgo currently has three main sources of revenue, revenues associated with owning and operating our growing network of DC fast chargers. Revenues from our capital light extend business that complements our core business, but with chargers owned by site hosts and ancillary and tech-enabled services like our plug share business and fleet-focused business. As we said in our preliminary results in mid-January, we plan to focus our growth efforts in the near term on our core owned and operated business, given that this business is most leveraged for eB adoption, is experiencing strong revenue and throughput growth, As you know, Evgo's almost 3,000 operational stores span most of the country, with stores in over 35 states, across over 50 national and regional strategic site hosts, and today, over 145 million Americans live within 10 miles of an Evgo store. Across our site host partners, we've identified over 100,000 potential stalls for Evgo to build, which shows how far we can go, but also that we have plenty of opportunity to select some of Fact, Texas and Florida are two of our fastest growing states in terms of throughput.

As a reminder, <unk> currently has three main sources of revenue revenues associated with owning and operating a growing network of DC fast Chargers.

Revenues from our capital light extend business that complements our core business, but with Chargers owned by site host customers.

And ancillary and tech enabled services like our plugged share business and fleet focused business models.

As we said in our preliminary results in mid January we plan to focus our growth efforts in the near term on our core owned and operated business given that this business is most leveraged to EV adoption is experiencing strong revenue and throughput growth and is expected to generate the highest returns.

As a result, we're targeting this to become the majority of our business.

As you know it goes almost 3000 operational store spend most of the country with stores in over 35 states across over 50 National and regional strategic site hosts and today over 145 million Americans live within 10 miles of an easy go charger.

Across our site host partners, we've identified over 100000 potential stores for easy go to build which shows how far we can go but also that we have plenty of opportunity to select some of the best sites.

Two years ago around one third of our network throughput was outside California, whereas by the end of 2023 are slow to around half.

Texas, and Florida are two of our fastest growing states in terms of throughput proving that the growth of electric vehicles is occurring in both red States and blue.

Badar Khan: This proves that the growth of electric vehicles is occurring in both red states and blue states. In 2021, consumers had approximately 31 EV models to choose from. Today, there are now more than 70 models, with many more on the way from the OEA.

In 2021 consumers had approximately 31 EV models to choose from today that are now more than 70 models with many more on the way from the Oems. These models are not only becoming more affordable, but they are increasingly addressing all vehicle segments and their technology is improving from <unk>.

Badar Khan: These models are not only becoming more affordable, but they are increasingly targeting all vehicle segments, and their technology is improving. Since Evgo's inception, we've made it a priority to serve all EVs, enabled by our innovation lab in LA, where we work collaboratively with OEMs to ensure interoperability between all EV models and our chargers. Evgo's commitment to serving all EVs includes adding Max connectors to our network. For over a decade, the Evgo team has built and refined a growth engine that is now humming. From a proprietary process of determining whether and where to build, to construction, to grant capture, to customer acquisition, to ongoing maintenance, we are adding net present value every day. Foundational to this growth engine are the many years of experience we have in securing our supply chain, marquee site host relationships, excellent relationships and advocacy efforts with governments and utilities, an innovative tech platform, and our sizable OEM. When put together, this is difficult to replicate at the scale and with the customer experience we now offer and reinforces our competitive advantage.

<unk> inception, we have made it a priority to serve all evs enabled by our innovation lab in L. A where we work collaboratively with Oems to ensure interoperability between all EV models and our Chargers.

Even though his commitment to serve all evs includes adding Max connectors to our network.

For over a decade, even though team has built and refined the growth engine that is now humming.

From a proprietary process of determining whether and where to build to construction to grant capture the customer acquisition to ongoing maintenance, we are adding net present value every year.

Foundational to this growth engine or the many years' experience, we have in securing our supply chain Marquis site host relationships.

<unk> relationships and advocacy efforts with governments and utilities and innovative tech platform and our sizeable OEM partnerships.

Put together this is difficult to replicate at the scale and with the customer experience, we now offer and reinforces our competitive advantage.

There are several drivers underpinning the growth of transport electrification, although I recognize there may be speed bumps along the way.

Badar Khan: There are several drivers underpinning the growth of transport electrification, although I recognize there may be speed bumps along the way. Despite some OEMs pulling back from their extraordinary ambitions over the past couple of years. Commitments from OEMs towards investing in electric vehicles still represents over $400 billion. Fourteen states, representing over a third of the U.S. population, have adopted Advanced Clean Cars 2, the regulation from the California Air Resources Board that phases out the sale of new ICE vehicles in favor of a 100% zero-emission future for new zero-emission vehicles, ride-share companies have committed to an all-electric future, with Uber setting the goal of having 100% of their rides in EVs in the U.S. by 2030, parallel to efforts of cities such as New York City, where Mayor Eric Adams signed the Green Rides Rule, where all rideshare vehicles that operate in the city must be electric by 2050.

Might some Oems pulling back from their extraordinary ambitions over the past couple of years commitments from Oems towards investing in electric vehicles still represents over 400 billion.

14 states representing over a third of the U S population are adopted advanced clean cars to the regulation from the California Air Resources Board that phases out the sale of new ice vehicles in favor of a 100% zero emission future for new zero emission vehicle sale.

<unk>.

Rideshare companies are committed to an all electric future with Uber setting the goal of having 100% of the rise in Evs in the U S. By 2030. This is parallel to the efforts of cities such as New York City, where mayor Eric Adams signed the Green rides rule, where all rideshare vehicles of operating the city must.

The electric by 2030.

And across the U S. We see strong consumer preferences for Evs today, which we expect to gain momentum as the average price of battery electric vehicles becomes closer and eventually becomes cheaper than ice vehicles with more new models being brought out every few months.

Badar Khan: And across the US, we see strong consumer preferences for EVs today, which we expect to gain momentum as the average price of battery-electric vehicles becomes closer and eventually becomes cheaper than ICE vehicles with more new models being brought out every year. Two years ago, the average BEV was around a third more expensive than the average ICE vehicle. And today, it is almost at parity without incentives, according to Cox Automotive.

Two years ago. The average <unk> was around a third more expensive than the average ICD Eagle and today. It is almost at parity without incentives according to Cox automotive.

Battery electric vehicle sales continue to grow year over year and sales of non Tesla vehicles, which are the majority of vehicles charging on those network grew by 66% year over year and now represent approximately half of all 2023 battery electric vehicle sales up.

Badar Khan: Battery electric vehicle sales continue to grow year over year, and sales of non-Tesla vehicles, which are the majority of vehicles charging on Evgo's network, grew by 66% year over year and now represent approximately half of all 2023 battery electric vehicle sales, up from about a third in 2021. While there may be some uncertainty over the growth of EVs in the near term, estimates for 2030 remain very significant, implying CAGRs of 37 to 42 percent through 2030. There are few industries in the world with this kind of growth rate underpinning investment. Evgo focuses on DC fast charging versus L2 charging. With DC fast charging, depending on the vehicle, it's possible to charge 100 miles in less than 10 minutes.

From about a third in 2022.

While there may be some uncertainty over the growth of <unk> in the near term estimates for 2030 remain very significant implying CAGR of 37% to 42% through 2030.

There are few industries in the world with this kind of growth rate underpinning the investment case.

<unk> focuses on DC fast charging versus Earl to charging.

DC fast charging depending on the vehicle, it's possible to charge 100 miles in less than 10 minutes.

Badar Khan: These stalls are in premium, convenient locations where people are going about their day. Our core business generates revenue from the sale of electricity through these well-located stores. In other words, we would continue to generate revenue even if there were no more new EVs. However, because of decreasing vehicle efficiency due to larger EVs, we expect to see a higher growth rate of electricity consumption to power those EVs. We estimate the total addressable market, or TAM, is growing at a CAGR of up to 46% to 25%. And finally, DC fast charging share that electricity consumption is expected to grow considerably over the next several years, with an even higher tagger, up to 60%, resulting in a 12 to $15 billion annual serviceable addressable market or SAM by 2030.

These stores are in premium convenient locations, where people are going about their lives.

Our core business generates revenue from the sale of electricity through these well located stores in other words, we would continue to generate revenue even if they were no more new EV sold.

Because of decreasing vehicle efficiency due to larger Evs, we expect to see a higher growth rate of electricity consumption to power. Those vehicles. Therefore, we estimate the total addressable market or Tam is growing at a CAGR of up to 46% to 2030.

Finally, DC fast charging share that electricity consumption is expected to grow considerably over the next several years with an even higher CAGR up to 60%, resulting in a 12% to $15 billion annual serviceable addressable market, our Sam by 2030.

Badar Khan: That assumes EV penetration of only up to 15%, implying decades of further growth. The growth of DC fast charging is not some hypothesis for a future yet to emerge. We believe that early adopters of EVs had access to at-home charging, but as the market moves towards mass adoption, more EV buyers live in multifamily housing, and we know from a study from UCLA that multifamily residents are more likely to rely on public fast charging for their needs.

I would assume that the penetration of only up to 15% implying decades of further growth.

The growth of DC fast charging is not some hypothesis for future yet to emerge. We believe that early adopters of Evs had access to at home charging as the market moves towards mass adoption more easy buyers leave in multifamily housing and we know from a study from UCLA that multifamily resident.

Are more likely to rely on public fast charging for their needs in just two years the percentage of multifamily dwellers buying evs has risen to 31% up 10 points.

Badar Khan: In just two years, the percentage of multifamily dwellers buying EVs has risen to 31%, up 10%. The percentage of DC fast charging is growing as this transition unfolds. In California, over the last two and a half years, we estimate that fast charging already accounts for over a quarter of all charging needs for EV drivers from an estimated 5 to 10% in 2021 and expect this growth will continue over time. A second driver for the growth of DC fast charging is a growing number of rideshare drivers that drive EVs. The average rideshare driver drives three to four times more than the average commuter, is more likely to live in multifamily housing, and is more likely to not want to use valuable time during the day to charge their vehicle, and is therefore very reliant on DC fast charging.

The percentage of DC fast charging is growing as this transition unfolds in California over the last two and a half years, we estimate that fast charging already accounts for over a quarter of all charging needs for EV drivers up from an estimated 5% to 10% in 2021 and expect.

This growth will continue over time.

The second driver for the growth of DC fast charging as a growing number of rideshare drivers that drive Evs. The average rideshare drivers drive three to four times more than the average commuter is more likely to live in multifamily housing.

More likely to not want to use valuable time during the day to charge their vehicles and is therefore very reliant on DC fast charging.

Badar Khan: This segment of drivers is growing very fast. Evaluating our usage on the Evgo network, ride share drivers on average charge five times more than our average retail customer. As more rideshare drivers make the shift to electric, the amount of electricity dispensed to this group of customers has increased to 25% in the fourth quarter of this year, up from 11% in Q1 2021. One of Evgo's sources of competitive advantage, honed from over a decade of doing this, is a proprietary, sophisticated network planning process that informs where we locate our chargers. We ingest an enormous amount of data from EV adoption rates, forecast sales, to density of multifamily housing, to ride share volumes, electricity costs, demand charges, and availability of grants, all at the census block level, which then tells us where to place We then turn to our extensive site partners to determine which of our partners' sites are best placed to build on.

This segment of drivers is growing very fast.

Evaluating our usage on the easy go network Rideshare drivers on average charge five times more than our average retail customer as more rideshare drivers make the shift to electric the amount of electricity dispense to this group of customers has increased to 25% in the fourth quarter of this year up from 11.

<unk> in Q1 'twenty one.

One of the Vigo sources of competitive advantage Poland from over a decade of doing this is a proprietary sophisticated network planning process that informs where we locate our chargers we.

We ingest an enormous amount of data from EV adoption rates forecast sales to density of multifamily housing to rideshare volumes electricity costs demand charges and availability of grants all at a census block level, which then tells us where to place Chargers, how many and at what pace within.

Specific geographic bubbles that are projected to generate double digit returns.

We then turn to our extensive site partners to determine which of our partners sites are best placed to build the site.

Badar Khan: And the model is iterated continuously, comparing actuals with forecasts to improve the network planning process. The chart on slide 17 shows our actual forecasted throughput versus what we had originally forecasted for all O&D. And so it shows not only how accurate our network planning model is but also the level of robustness of our underwriting. See this financial discipline in the way we deploy capital, where we seek to minimize the amount of capital we deploy with offsets coming from a range of sources, including OEM payments and grants and investments. And as we've discussed before, we receive approximately $33,000 per store built under our partnership with GS. This is typically received within a couple of months of stores going up or down. We have over a decade of experience in successfully identifying, applying for, and securing grants at the federal, state, and local level.

And the model Iterating continuously comparing actual should forecast to improve the network planning process. The chart on slide 17 shows our actual forecasted throughput versus what we had originally forecasted for all owned sites.

It shows not only how accurate our network planning model is but also the level of robustness of our underwriting process.

You can see this financial discipline in the way, we deploy capital where we seek to minimize the amount of capital we deploy with offsets coming from a range of sources, including OEM payments and grants and incentives and as we've discussed before we receive approximately $33000 per store per store built under our partnership with GM.

This is typically received within a couple of months of stores going operationally.

We have over a decade of experience in successfully identifying applying for and securing grants at the federal state and local levels. The federal government has two primary programs to incentivize charging infrastructure the expansion and extension of 30 see the alternative refueling property tax credit from the inflation reduction Act.

Badar Khan: The federal government has two primary programs to incentivize charging. We have the expansion and extension of 30C, the alternative refueling property tax credit from the Inflation Reduction Act, and the NEVI program, up to $7.5 billion in formula funding from the Bipartisan Infrastructure Act. In January this year, the IRS clarified rules about 30C eligibility, essentially resulting in more sites being eligible for funding than we had previously. As a result, we now expect around 50% of our network plan to be eligible to receive Finally, Evgo and our partners through our Xtend business continue to win NEBI funding for highways. However, even our strategy is focused on higher-density, urban locations. Our network plan is not dependent on NEVI funding as these sites are immaterial to our plan over the next.

And the Navy program up to seven $5 billion of Formula funding from the bipartisan infrastructure law.

In January this year, the IRS clarified rules about 30 C eligibility essentially resulted in more sites being eligible for funding than we had previously expected as a result, we now expect around 50% of our network plan to be eligible to receive 30 <unk> funding.

Finally, <unk> and our partners through our extend business continued to win nervy funding for highway sites. However, given our strategy is focused on higher density urban locations. Our network plan is not dependent on Debbie funding as these sites are immaterial to our plan over the next couple of years.

Yes.

Badar Khan: As a reminder, these diverse sources of funding can typically be stacked, and in some cases, the funding stack may cover the vast majority of CAPEX at a particular time. For sites that are expected to go operational in 2024, these offsets are expected to represent around 40% of the capital required for our owned and operated facilities. Evgo's digital first approach offers customers and partners alike a variety of offerings driving value. We've worked tirelessly to improve the customer experience, and a lot of that is driven through software. For example, Charge+, a seamless plug-and-charge experience gets rave reviews from EV drivers, as do reservations.

As a reminder, these diverse sources of funding can typically be stacked and in some cases the funding stack may cover the vast majority of Capex at a particular site.

For sites that are expected to go operational in 2020 for these offsets are expected to represent around 40% of the capital required for our owned and operated sites.

If it goes digital first approach offers customers and partners alike, a variety of offerings driving value.

Worked tirelessly to improve the customer experience and a lot of that is driven through software for example, or charge plus a seamless plug in charge experienced gets rave reviews from EBIT drivers as do reservations.

Badar Khan: Evgo offers flexible pricing models with location-based, time-of-use, subscription, ride-share, and pay-as-you-go models available for drivers to choose what serves their needs best while optimizing profitability. And our partners value a digital-first approach, from extend and ride-share partners to OEMs to site hosts. Each of our partners has benefited from technology offerings that improve our relationship with them. One of Evgo's core priorities We know that there are four things that customers value the most.

If you go off with flexible pricing models with location based type of abuse subscription ride share and pay as you go models available for drivers to choose what serves their needs best while optimizing profitability for HBO.

And our partners value with digital first approach from extend and Rideshare partners to Oems to site hosts each of our partners have benefited from technology offerings that improve our relationship with them.

One of <unk> core priorities is to offer a best in class customer experience. We know that there are four things that customers value. The most first having lots of stores at a site. So they never have to wait for a charge second having high powered chargers available. So they can fill up quickly.

Badar Khan: First, having lots of stalls at a site so they never have to wait for a charge. Second, having high-powered chargers available so they can fuel up quickly. Third, having a reliable solution that works right on the first try.

Third having a reliable solution that works right on the first try and force a hassle free payment process on each of these dimensions <unk> has made great progress over the course of 2023.

Badar Khan: And fourth, a hassle-free payment process. On each of these dimensions, Evgo has made great progress over the course of 2020. Across our nearly 950 locations, we nearly doubled the number of sites that have at least six stalls, and we're now targeting a minimum station size of six stalls per site and aim for eight to ten if the site host has it. Rather than an asset-based reliability measure, we track what we call one and done, an internal but more customer-oriented metric that measures the percentage of time a customer has a successful charging Finally, we know that a key frustration for customers during the charging process is payment. As a result, we developed our Auto Charge Plus feature, which allows drivers to just plug in and charge automatically without having to perform any additional.

Across our over 950 locations, we nearly doubled the number of sites that have at least six stores and we're now targeting a minimum station size of six stores per site and aimed for eight to 10, if the psychosis have space.

Across our nearly 3000 store network, we have more than doubled the number of stores served by a 350 kilowatts charger.

Rather than an asset base reliability measure we track, what we call one and done an internal but more customer oriented metric that measures. The percentage of time, a customer has a successful charging experience within a reasonable time window on their first trial.

During 2023 are one and done rate increased over 600 basis points to 91%.

Finally, we know that a key frustration for customers joined the charging process. Its payments as a result, we developed our auto charge plus feature which allows drivers to just plug in and charge automatically without having to perform any additional steps it makes charging easier and faster during 2023, we nearly doubled the.

Badar Khan: It Makes Charging Easier, and During 2023, we nearly doubled the percentage of sessions using AutoChargePlus, which now has over 50 vehicle models eligible. Customer-centric model combined with our disciplined investment in building a world-class fast charging network is why I am so excited about our. I'll now turn the call over to Olga, who will go through our financial performance for the fourth quarter and full year 2023, as well as our initial outlook for 2020. Thank you, Badar.

Percentage of sessions, using auto charge, plus which now has over 50 vehicle models eligible for it this.

This customer centric model combined with our disciplined investment and building a world class fast charging network is why I'm. So excited about our electric future.

I'll now turn the call over to <unk>, who will go through our financial performance for the fourth quarter and full year 2023, as well as our initial outlook on 2024.

Thank you Bob.

Olga Shevorenkova: Evgo ended 2023 with yet another strong quarter, mostly driven by the continuous growth of our owned and operated charging network. Revenue in the fourth quarter was $50 million, which represents an 83% year-over-year increase. This growth was primarily driven by increased demand and gravity.

And it turns Atlantis three was yet another strong quarter largely driven by the continued growth of our owned and operated charging network.

Revenue in the first quarter with Kristen Neil N, which represents an eight 3%.

We increased that.

The growth was primarily driven by increased charge and grabbing us.

Retail targeting revenue grew from five 8 million in the fourth quarter funds at two <unk>.

Olga Shevorenkova: Retail charting revenue grew from $5.8 million in the fourth quarter of 2022 to $16.7 million in the fourth quarter of 2023, exhibiting a 186% year-over-year increase. Commercial charging revenue grew from $1.3 million in the fourth quarter of 2022 to $6.3 million in the fourth quarter of 2023, exhibiting a 378% year-over-year increase. And extended revenue grew from $16.7 million in the fourth quarter of 2022 to $18.3 million in the fourth quarter of 2023, exhibiting a 10% year-over-year increase. Additionally, we added over 930 new operational stalls to our owned and operated network during 2020. Accelerating off the 670 new stalls we added in 2022, sold in operation or under construction, inclusive of 190 extant stalls, was $3,550 as of December 31, 2021. During 2023, Evgo added over 366,000 new customer accounts, which represents the majority of all non-Tesla EV sales in 2023.

<unk> 7 million in the fourth quarter of 2000 lenses <unk> and <unk>.

186%.

Yeah, Chris.

Commercial charge in revenue.

From 1.3 million in the first quarter transatlantic too.

Six 3 million in the fourth quarter funds I'd like to see it.

Limiting at 378% yearly increase.

The extended revenue grew from $16 7 million in the first quarter blended rents at two to 18 same Neil N. In the first quarter plans have been to see.

Exhibiting at 10%.

The increase.

We added over 900, setting new operational staff to our owned and operated network year end plan defense is accelerating.

Accelerating off the <unk>.

Has it it sounds in your staff added in tons Atlanta too.

So the duration on the Jackson inclusive of 196 cents, though.

With 3550 as of December 31st 200 scientists.

UN trended rents.

<unk> added 866000, new customer accounts.

<unk> presents and enjoy it.

All non Tesla EV sales and flat.

Just wanted to check.

Olga Shevorenkova: Evgo ended 2023 with more than 884,000 customer accounts, a 60% increase over year-end 2020. Evgo's network throughput continued to accelerate in the fourth quarter, growing faster than EVVIO growth over the same time period. As Badar discussed earlier, Evgo is focused on the fastest-growing segment of the charging market, VCFC, and that can clearly be seen in our numbers. This accelerated growth is driven by a number of factors, including EV buyers moving from early to mass adopters with a higher portion of multi-unit dwellers and the rapid growth in ride share. As well as EV vehicle miles traveled finally catching up to those of ICE, increasing EV charge rates, or how much electricity is delivered over the time period to a vehicle, and heavier, less efficient EV models.

Is it go and at <unk> with more than 884000 customer accounts.

Six 2% increase over a year and two 1% at Tim.

Even though as network throughput continues to accelerate in the fourth quarter growing faster than <unk> growth over this same time period.

As Bob discussed earlier.

We're focused on the fastest growing segment of the charging market.

CFC and it can clearly this theme.

Numbers.

This accelerated growth is driven by a number of factors.

Uh-huh buyers moving from early adopters with a higher portion of multi union dwellers.

And the rapid growth in <unk> as.

As well as EV vehicle miles traveled finally catching up to those of IC engraving EV charging rates or how much electricity is delivered over the time period to vehicle.

And Haverhill has sufficient EV models.

Yes, It was Nathan was over 19% across the network in the month of December.

Olga Shevorenkova: Utilization was over 19% across the network in the month of December. Additionally, over 55% of our stalls had utilization greater than 15% in December 2023. And over 40% of our stalls had utilization rates greater than 20% in December 2023. Another way to look at stall-level performance is to look at daily throughput per stall. There are two factors that drive this method: Time-Based Utilization and CHARGE. As a reminder, charge rate depends on the car's battery but can be limited by some legacy fast chargers whose max capacity is lower than a specific car's charge rate.

Over 55% of our staff have utilization greater than 15% in December Trans Atlantic Street, and over 40% of our staff have utilization greater than 20% in December trended lenses.

Another way to look at store level performance is to look at daily throughput the stall.

There are two factors that drive this metric.

And based on utilization and charter rates.

As a reminder, charge rate depends on the car's battery, but can be limited by some legacy charter was Max capacity is lower than the specific cars charge rate.

Olga Shevorenkova: We expect average charge rates on our network to increase over time, driven by newer cars with bigger batteries and a higher mix of ultra-fast DCFC charges on our network. Average daily throughput per stall was 200 kWh in December 2023, up from 51 kWh in December 2021, representing a four times increase. Utilization grew around three times over the same time period, demonstrating the impact of increasing charge rates on throughput per stall. Looking back two years ago, only 2% of our stalls were delivering 200 kilowatt hours or more per day.

We expect average charges on our network to increase over time, driven by newer cars with bigger batteries and higher mix of ultra fast.

<unk> charges on our networks.

Average daily throughput at the stall was 200 kilowatt hour in December 'twenty to 'twenty three.

Up from 51 kilowatt hour in December 2021, representing a four times increase.

Utilization grew around three times over the same time period.

Do you think the impact of increasing charge rates on throughput first salt.

Looking back two years ago, only 2% of our staff were delivering 200 kilowatt hours or more per day.

Olga Shevorenkova: As of Q4 2023, that number has increased to 42%, and on the lower end. Two years ago, 60% of stalls were delivering less than 50 kWh a day. Today, that number has shrunk to 16%.

As of Q4 trends Atlanta, three that number has increased to 42%.

And on the low end two years ago, 60% of staff for delivering glass census, the kilowatt hour day today that number has shrunk to 16%.

Even though continues to realize operating leverage on its path to profitability.

Olga Shevorenkova: Evgo continues to realize operating leverage on its path to profitability. In the fourth quarter of 2023, we doubled our revenue while tripling our adjusted gross profit versus the fourth quarter of 2022. Adjusted GNA as a percent of revenue decreased from 92% to 54% over the same time period. These improvements are driven by first, leverage within cost of goods sold and second, leverage within SG&A. Letters Unpacked Vol.

In the first quarter of 'twenty, one to three we doubled our revenue while tripling our adjusted gross profit, whereas in the fourth quarter of two on defense it too.

Jonathan G&A as a percent of revenue decreased from 92% to 54% over the same time period.

These improvements and driven by <unk>.

Leverage within cost of goods sold and second leverage within SG&A.

Well that is impactful.

So even though we deploy there is an amount of fixed cost though dependent costs.

Olga Shevorenkova: For every store we deploy, there is an amount of fixed or store-dependent costs associated with it, including property taxes, rent, base maintenance, and demand charges. For every additional kilowatt-hour of throughput, these costs remain fixed per stall, therefore lowering stall-dependent costs as a percentage of revenue, driving adjusted gross margin higher. To help you model operating leverage in our core business, we have broken our adjusted cost of sales into two categories: Trojan Network Cost of Sales, and others.

I hated with it.

Including property taxes ran base maintenance and demand charges.

Every additional kilowatt hour throughput. This cost remained fixed first saw therefore lowering store dependent costs as a percentage of revenue.

<unk> adjusted gross margin up.

To help you model operating leverage in our core business, we haven't broken our adjusted cost of sales into two categories.

China network cost of sales and other cost of sales.

Olga Shevorenkova: Charging network cost of sales includes all costs associated with running our core owned and operated charging network, whereas other costs of sales include costs of goods sold associated with our extent and ancillary business. Within charging network cost of sales, approximately 40% of costs are stall-dependent, in other words, fixed per stall. The other 60% of charging network cost of sales is throughput-dependent and includes volumetric energy costs and credit card proceeds.

Charging network cost of sales includes all costs associated with running our core owned and operated charging networks.

Whereas other cost of sales incurred.

Cost of goods sold associated with Alex Dan and ancillary business line.

Within charging network cost of sales approximately 40% of costs are still dependent.

Other words fixed post salt.

60% of charging network cost of sales its throughput.

Throughput dependent and then closed will emerge energy costs and credit card processing fees.

Olga Shevorenkova: The increase in daily throughput per stall, you saw on the prior slide, was primarily behind the adjusted growth margin expansion from 18.3% in the fourth quarter last year to 26.5% in the fourth quarter of this. We also have operating leverage in GNA. Adjusted General Administrative Expenses at Evgo can be broken down into three categories. First, the costs to sustain the existing charging network and other existing businesses, such as call center, third-party IT, account management, marketing, sustaining software, and hardware expenses. These costs represent roughly 30% of total adjusted genes.

The increase in daily throughput per store he is selling the Brian flight was primarily behind the adjusted gross margin expansion from 18, 3%.

Fourth quarter last year to 26, 5% in the fourth quarter of this year.

We also have operating leverage in G&A and just in general and administrative expenses, even though can be broken down into three categories.

The cost to sustain the existing charge in network and other existing businesses such as call Center Third party, a key account management marketing sustained in software and hardware expenses.

These costs represent roughly 30% of total adjusted G&A.

Olga Shevorenkova: Second, the cost to support growth of the charging network and other business lines, our so-called growth engine, of which I have spoken at length. This cost represents another roughly 30% of adjusted GNP. And finally, corporate overhead costs that represent roughly 40% of total adjusted G&E. However, growth costs are tied to the size of the growth engine, and corporate costs are fairly fixed at this point.

Second the cost to support growth of the charging networks and other business lines. Our so called growth engine, but our has spoken at length about this cost represent another outflow 70% of adjusted G&A.

And finally corporate overhead costs.

Roughly 40% of total adjusted G&A.

Gross costs tied to the size of the growth engine and corporate costs are fairly fixed at this point and as a result, adjusted G&A has increased only 9% year over year, while as mentioned earlier revenue tripled Paul is demonstrating that they raised.

Olga Shevorenkova: And as a result, adjusted G&A has increased only 9% year-over-year, while, as mentioned earlier, revenue tripled, fully demonstrating the operating leverage within G&A. Both of those effects, coupled with increased scale of the charging network and other business lines, put us on a clear path to reach just a bit that break. Importantly, we have passed an important inflection point in 2023, in that as a result of the utilization and throughput levels we are now seeing across our network, the installed base is now profitable on a standalone basis. Adjusted gross profit was $13.3 million in the fourth quarter of 2023, up from $5 million in the fourth quarter of 2022. Adjusted EBITDA was negative $14 million in the fourth quarter of 2023, an improvement versus negative $20.1 million in the fourth quarter of 2023. Cash used in operations was $7.3 million in the fourth quarter.

Leverage was in G&A.

Both of those the fact, coupled with increased scale of the charging network and other business lines have put us on a clear path to reach adjusted EBITDA breakeven and importantly, we have passed an important inflection point in time defenses three and that is a result of the utilization and throughput levels.

We're now seeing across all networks. The installed base is now profitable on a stand alone basis.

Adjusted gross profit was 13 3 million in the first quarter of 2023 up from 5 million in the fourth quarter of 200 funds at two <unk>.

Adjusted EBITDA was negative 14 million in the first quarter of 2023 and improvement versus negative plentiful, while Nielsen in the fourth quarter of 2022.

Cash used in operations was seven 3 million in the fourth quarter.

Olga Shevorenkova: We added over 200 new stalls to our owned and operated network during the fourth quarter. Capital expenditures were $34.8 million in the fourth quarter. This includes expansion capex, renewal capex, as well as capitalized engineering and construction costs and tech development costs. We are now reporting capital expenditures net of capital offsets, where capital offsets represent cash collected from various funding sources in a particular period. Specifically, in the fourth quarter of 2023, we collected $5.7 million in OEM infrastructure payments, all payments under the GM contract, and $7.4 million as proceeds from capital built funds. All cash collected as part of various grants and incentive programs secured over the prior period, thus bringing capital expenditure net of capital offsets to $21.8 million for the quarter.

We added over 200, new stores to our owned and operated network.

End of the fourth quarter.

Capital expenditures were $34 8 million in the fourth quarter.

This includes expansion cutback, but a new capex as well as capitalized engineering and constructions and tech development costs.

We are now reporting capital expenditures net of capital offsets where capital offset represents cash collected from various funding sources in a particular period specifically.

Specifically in the fourth quarter of 2000 lenses, three we collected $5 7 million in OEM infrastructure payments all payments under the GM contract and seven fall Nealon as proceeds from capital built funding.

All cash collected as part of their grants and incentive programs.

Over the prior period.

Thus, bringing capital expenditure net of capital offsets the $21 8 million for the quarter.

For the full year 2023, total revenue was 161 million nearly tripling compared to 200 defensive to.

Olga Shevorenkova: For the full year 2023, total revenue was $161 million, nearly tripling compared to 2022. Revenue growth was primarily driven by charging revenue and Evgo exams. Retail charging revenue was $45.7 million, an increase of 142% compared to 2020. Commercial charging revenue was $14.5 million, an increase of 331% compared to 2022.

Revenue growth was primarily driven by charge in revenue and <unk> expense.

These sales charging revenue was $45 7 million, an increase of 142% compared to two 9% at two <unk>.

Commercial charging revenue was $14 5 million and increase of 331% compared to 2001 to two.

Olga Shevorenkova: And the extended revenue was $72.4 million, an increase of 292% compared to 2020. Adjusted gross profit was $41.8 million in 2023, up from $13.3 million in 2022. Adjustment growth margin was 26% for the full year 2023, up from 24.3% in 2022.

And extend revenue was $7 two point fall nealon.

And increase of 292% compared to 200 defensive too.

Adjusted gross profit was $41 8 million in 2023.

Up from $13 3 million in transit oriented too.

Adjusted gross margin was 26% for the full year 2023.

From plants at four 3% influenced defensive too.

Olga Shevorenkova: This increase was driven by operating leverage, as discussed earlier. Greater leverage effects are observable when comparing adjusted growth margin in the fourth quarter of 2023 to the fourth quarter of 2022 versus comparing full-year results. This is driven by accelerated LCFS revenue recognition in the first half of 2022, which drove margins higher in that time. Adjusted DNA as a percentage of revenue improved significantly from 171.2% in 22 to 62.5% in 23, demonstrating the same leverage effect when looking at forced quarter-to-forced quaternary. Adjusted EBITDA loss improved by $21 million in 2023 to a loss of $58.8 million versus a loss of $80.2 million in 2023. Cash, Cash Equivalents, and Restricted Cash was $209 million as of December 31, 2020.

This increase was driven by the operating leverage as discussed earlier.

Greater leverage effects observable when comparing adjusted gross margin in the first quarter of 23 to the fourth quarter of 22 versus comparing full year results.

Driven by accelerated Lcs as revenue recognition in the first half of 2022, which drove margins higher in that time period.

And Jonathan G&A as a percentage of revenue improved significantly from 171, 2% influenza too.

$6, 2.5% influenced the streets, demonstrating the same leverage in fact, when looking at fourth quarter to fourth quarter numbers.

Adjusted EBITDA loss improved by 21, Nealon influenza sensor suite.

A loss of $58 eight nealon versus a loss of 80 points to mainland with advanced itself.

Cash cash equivalents and the restricted cash was 209 nealon as of December 31st 2023.

Olga Shevorenkova: Cash use in operations was $37.1 million per year, compared to $58.8 million in 2022, clearly demonstrating our focus on reducing the operational cash burn and setting Evgo on a clear path to profitability. In 2023, total capex was $158.9 million, and capital expenditures net of capital offsets were $122.8 million. The vast majority of the $159 million in capex was spent to grow our owned and operated businesses. Now, turning to the 2024 guide, Evgo currently expects full year 2024 revenue to be in the range of $220 million to $270 million. And the just of EBITDA to be in the range of negative $48 million to negative $30 million. Our guidance is informed by several scenarios which account for a range of EV sales in 2024, utilization trends, and the pace of execution under our contract with the pilot.

Cash used in operations was 37 point a lot of millen for the year compared to $58 8 million in transit once it too clearly demonstrating our focus on reducing the operational cash burn and setting even go on a clear path to profitability.

In 2023 total Capex was 158 9 million and capital expenditures net of capital offsets.

<unk> $2002 8 million.

The vast majority of the hundreds is denied nealon in Capex was spent to grow our owned and operated network.

Now turning to 2020 for guidance.

Even though we currently expect full year 'twenty 'twenty four revenue to be in the range of 220 similar to 217 kneeland.

And adjusted EBITDA to be in the range of negative 48 million to negative 30 mainland.

Our guidance is informed by several scenarios, which account for a range of these sales in 2000 before utilization trends and the pace of execution under our contract with the.

File a company.

Olga Shevorenkova: We expect PFJ revenue to be roughly 35% of total revenue in 2024 when looking at the midpoint guidance. We also expect PFJ revenue to be more or less equally distributed through the four quarters with Q4 being slightly heavier than others. Charging network revenue is expected to grow sequentially throughout the year, driven by increasing VIO consistent with price. We also would like to add some color on our capital.

We expect <unk> revenue to be roughly 35% of total revenue in 2000 defensive for when looking at the midpoint of guidance range.

Also expect <unk> revenue to be more or less equally distributed through the four quarters with Q4 being slightly heavier than others.

Charging network revenue is expected to grow sequentially throughout the year.

Living by increasing vio consistent with prior years.

We also would like to add some color on our capital expenditures.

Olga Shevorenkova: Our current deployment plan is for 800 to 900 new Evgo-owned stalls expected to be put in operation in 2024 with an average capex per sole of $160,000 before offset. We expect capital expenditures net of capital offsets to be in the 95 to 110 million range. As we have discussed at length, Evgo is on a clear path to an important inflection point in its business, hitting adjusted EBITDA break-even. Evgo expects to be adjusted EBITDA breakeven for the full year of 2025.

Our current deployment plan is for 800 to 900, new easy go own stores.

Expect this to be put in operation in 2024, with an average cutbacks there so of $160000 and before offsets.

We expect capital expenditures net of capital offsets to be in the 95 to 110 million range.

As we have discussed at length.

On a clear path to an important inflection point of our business hitting adjusted EBITDA breakeven.

Even though I expect to be adjusted EBITDA breakeven for the full year of 2025.

Olga Shevorenkova: This is based on the expectation that EV-VIO will continue to grow and that Evgo will continue to expand its network and realize operational efficiency. Enter 23 with $209 million in cash, cash equivalents, and restricted cash. Our current operational and network expansion plans give us runway through a good portion of 2025. Evgo is actively evaluating a number of non-dilutive sources of financing to fund the business beyond that point, both from private and public sources, including the UAE Loan Programs Office.

This is based on the expectation that <unk> will continue to grow and that even though we will continue to expand its network and realize operational efficiencies.

If you go into 'twenty, three with 209 nealon in cash cash equivalents unrestricted cash.

Our current operational and network expansion plans give us runway through a good portion of plant that quantify.

Even though is actively evaluating a number of non dilutive sources of financing to fund the business beyond that point.

Both from private and public sources, including the UAE loan programs office.

Olga Shevorenkova: On the latter, Evgo has put together a high-quality DOE loan application that addresses the need for more public charging infrastructure to be judiciously built out at scale across the U.S. Evgo is a credible and sophisticated operator with over a decade-plus track record focused on reliability and customer experience, and so far, we're rapidly moving through the price. We look forward to sharing our progress in 2024 with you throughout the year. Operator, we can turn the call over to questions. At this time, I would like to remind everyone, in order to ask a question, press the star, then the number one on your telephone keypad. Your first question today comes from the line of Gabe Daoud from TD Owen. Your line is open.

On the latter even though has put together a high quality loan application that addresses the need for more public charging infrastructure to be judicious with build out at scale across the us.

If you go into Accretable and sophisticated operator with over a decade plus track record focused on reliability on customer experience and so far we are rapidly moving through the process.

We look forward to sharing our progress in trying to sense, if all with you throughout the year.

Operator, we can turn the call over to questions.

At this time I would like to remind everyone in order to ask a question Press Star then the number one on your telephone keypad. Your first question today comes from the line of Gabe Daoud from PD. One your line is open.

Gabriel J. Daoud: Thank you. And hey, Badar and Olga, thanks for all the prepared remarks in detail. Very helpful.

Thank you and he bought our inaugural thanks for all the prepared remarks in detail very helpful.

Olga Shevorenkova: Maybe I wanted to start with, Olga, what you wrapped up with, the 2024 capital offset. So I'm just looking at rough math, 900 stalls at $160,000 per stall, call it over $140 million of capital. So I guess the offset would be, would be around $30 to $50 million or so? Could you maybe give a bit more detail on where all of that is coming from? Yes, sure, Gabe.

Maybe wanted to start with.

Although what you wrapped up with the towards forward capital offset so I'm just looking at rough math 100 installs at 160001st all call it over $140 million of capital. So I guess, the offset would be would be what around 30 the <unk>.

<unk> million dollars or so could you maybe give a bit more detail on where all of that is coming from.

Yes, sure Gabe so.

Olga Shevorenkova: So as such, let me kind of like remind you of the time and component of all of this, and then I'll answer your question. So when we talk about capex spend in a particular year, it's not necessarily spend on the chargers which go operational that particular year, because we've already probably spent a good 30 to 40% of what's required to be spent to put 2024 assets in operation in 2024 as of now, because you construct them over like 12 to 18 months with various stages of development. And that's sad, right?

So let me kind of like remind the timing component of all of this and then I'll answer. Your question. So when we talk about Capex spend in a particular year, it's not necessarily spend on the Chargers, which go operational in that particular year, because we already probably spend goes 30 40 person.

Of what's required to be spent to put a plentiful for us as to the duration and fund to fund before those now because you construct over like 12 to 18 months with various stages of development.

<unk>.

Olga Shevorenkova: Within 2024, fiscal capex or cash capex we're going to spend, some of it will be spent on 24 assets, some of it will be spent already on 25 assets, some of it will be an early development cost for 26, and maybe even 27 assets for some early scope and exercises. So just to kind of make it clear, 160k by 800 to 900 won't get you to that precise number; you won't be able to match it once. And the same dynamics plays out with offsets. With offsets, as we spoke at length many times, many times, one of the main components of offsets is grant funding. And with grant funding, you start invoicing them after the asset goes operational. It takes you up to several months to collect that cash back.

Sure.

The rise was implemented went before.

Cisco cut back so cash cutbacks, we're going to spend some of it will be spend on 'twenty four assets some of which will be spent out I don't quantify of assets. Some of it will be in early development costs for 2006, and maybe even some into seven assets for some early open exercises. So just to kind of make it clear 160, K by 800 to 900.

Won't get you to that precise number for you on being able to match with one to one and the same dynamics plays out with offsets was offset as we spoke at length, mainly time. Many times one of the main component of offset as grant funding under the grant funds and you start invoicing them. After they often go the threshold takes you.

Several months to collect that cash, but those are the clear mismatch. When you had spend the capex for this particular asset versus when you collect as the offset the cycle is a little shorter with OEM payments because they just pay quite good the commercial organization and also do you see offsets there will be a delay it's unclear yet.

Olga Shevorenkova: So there is a clear mismatch on when you have spent the capex for this particular asset versus when you collect the offset. The cycle is a little shorter with OEM payments because they just pay quicker to commercial organizations. But on 30C offsets, there will be a delay.

Olga Shevorenkova: It's unclear yet if we're going to be trading once a year, those credits twice a year, or maybe once transaction costs come down and the industry, the overall 30C trading tax industry matures, where maybe we'll be trading every quarter, but there will still be a delay. So when you are looking at kind of a cash number within the year, the capital offsets versus capex, they don't relate to the same asset That's why we introduced the concept of vintage capex, or the concept of vintage offsets. And I talked about it in my prepared remarks, and the chart is included in the materials we provided. When we compare the capex, referred to specifically assets which go into operational 24, and capital offsets, also related to those particular assets, we expect to offset roughly 40%. So 60% comes from EVgo, and 40% comes from other sources. Within the particular year, that number could fluctuate one way or the other, depending on the timing of each of those. Thanks, Olga. That's really helpful. And maybe just sticking to that.

We'll go into the trade and once a year those credits twice a year or maybe once transaction costs come down.

Industry. The overall, so to see trades in tax in matures, we're maybe a little bit Jayson that required, but there will still be a delay so when you.

Looking at kind of cash number was in the year the capital offset versus Capex. They don't relate into the same assets. That's why one should use the concept of vintage cut back. So the concept of vintage offset them I've talked about in my prepared remarks on the charges included in the materials, we provided when we compare the capex.

Is it fair to specifically assets, which go into additional 2004 and capital offsets.

So related to those particular assets, we expect to offset that with 40% to 60%.

Comments, it's Matt come from Eagle and 40% comes from other sources within the particular here that number could fluctuate one way or the other dependent on on a thailand of each of those components.

Thanks, a lot. Thanks, a lot that's really helpful and maybe just sticking to that so I guess <unk> or is that this will be the first year, you'll attempt to monetize 30 C credits just kind of curious how that looks in the secondary market from a value standpoint is it like 90 cents on the dollar just how should we think about 30.

Olga Shevorenkova: So I guess 24 that this will be the first year you'll attempt to monetize 30 C credits. Just kind of curious how that looks in the secondary market from a value standpoint. Is it like 90 cents on the dollar? Just how should we think about 30 C values? Yeah, that's going to be the first time.

Value.

Yeah that is going to be the first time.

Olga Shevorenkova: And it's going to be the first time for a lot of actors in the market. Both buyers and sellers are trying to understand what will work for each party to transact. We have a lot of interest in our first portfolio for our effective 2023 asset portfolio. I probably will not comment on the price just yet because we just started exploring it.

And is there going to be the first time for a lot of actors in the market.

Both buyers and sellers are trying to understand what will work for each party to transact we have a lot of interest for our first portfolio four hour. If afterwards once it went to three asset portfolio.

I probably will.

Comment on the price just yet because we just started exploring it.

Olga Shevorenkova: Maybe when we speak next time in a couple months, I'll give you a better indication of what that is if we're sufficiently more along with one of the, Okay, okay. Yeah, sure. Understandable. That's exciting. We'll look forward to that.

Maybe when we speak next time in a couple of months I'll give you I'll give you a better indication of what that is is we're sufficiently more along with one supplier.

Okay. Okay, yes, sure understood. That's exciting we will look forward to that.

Gabriel J. Daoud: And then just a follow-up question for me would be talking about some of the attractive economics here. Just curious if you could refresh, maybe thoughts on, you get to 2030, I know it's a long time from now, and you do see 30 to 40 million in VIO at, you know, 20% utilization. What does that mean, how does that translate to financials and what the business actually looks like in terms of maybe EBITDA or free cash flow? Any kind of thoughts on that would be helpful. I know again, it's longer dated, but just curious.

And then just a follow up for me would be.

Talking about some of the attractive economics here just curious if you could refresh maybe thoughts on you get to 2030 I know, it's a long time from now and you do see 30 to 40 million and vio.

20% utilization, what does how does that translate to financials and what the business actually looks like in terms of maybe EBITDA or free cash flow any any kind of thoughts around that would be helpful. I know again longer data, but just curious thank you.

Olga Shevorenkova: So we obviously are looking at all of those numbers internally, Gabe, but we think that the more appropriate time and space to share something like that will be on a separate occasion. We are thinking about conducting kind of a webinar event of some sort where we will go in greater detail about our project unit economics and our more mid-term to long-term planning. In the meantime, we think with this call, we gave quite a bit of information on the separation of fixed and variable costs within our cost base, how we're thinking about the charge rate and whatnot. Honestly, our business is taxed EV adoption, right? That's the driver we've been saying, saying, saying it over and over again.

So.

We obviously are looking at all of those numbers, then tanoan game, but we think that the more appropriate time and space to share something like that will be a separate occasion, we are thinking about <unk> 10.

Hum.

Webinar event of some sort, where we will go in the greater in depth and detail on our project economics and now are more midterm to long term plan and in the meantime, we think with this call we gave quite a bit of information on the separation of fixed and variable costs within our cost base.

How we're thinking about the charter rates and whatnot.

Honestly, our business is tied to the adoption right that is the driver and we've been saying the same thing.

And over and over again.

Badar Khan: The EVIO grows, our business grows. Now I think you have enough information to try to even model it yourself and see it's going to be big. If we continue to deploy the network and continue to grow alongside the adoption, what exactly is going to look like from our perspective? I think a separate occasion is probably a better chance for us to share that information and talk about it at length. Yeah, and Gabe, let me just stop.

Maybe.

Our growth our business grow. It's now I think you have enough information to try to even model of yourself and see it's going to be defensive been big if we continue to deploy network and continue to grow alongside they adopt how exactly they're going to look like from our perspective.

I think a separate occasion, that's probably a better chance for us to share that information and talk about in Atlanta.

Yes.

Just that.

Okay.

Okay.

Let me just add to that.

Badar Khan: Dave, let me just quickly add to that. We've shared with you already on this call and in our materials that the operational business, so the stores that we have on the ground, is covering its costs. So, if you exclude the costs of the growth engine and our corporate overhead fixed costs, the assets that we have in the ground at the 19% utilization rate are actually covering their costs today. And so as this business continues to scale, we should expect to see margins coming from those operational stalls well in excess of the fixed costs, certainly by 2030. And I think anyone that models this business will find it to be pretty attractive. Definitely understood. Thank God, Aaron.

We've shared with you already in this call materials that.

The operational business to the stores that we happened to ground.

Our covering their costs.

So if you exclude the cost of the growth engine in our corporate overhead fixed costs.

Assets that we have in the ground at 19% utilization rates are actually covering their costs today and so as this business continues to scale.

I would expect to see margins come.

<unk> from those operational stores well in excess of the fixed costs, certainly by 2030, and I think Andy on the old model. This business will find it to be a pretty attractive business for ethylene.

Definitely.

Darren.

Yes, Okay, I'll begin to somebody else or offline. Thanks, everyone.

Gabriel J. Daoud: Yes, okay. I'll dig into some of the other stuff offline. Thanks, everyone. Your next question comes from the line of Von Sheppard from Cantor Fitzgerald. Your line is open, and Andres. Hi, good morning, everyone.

Yes.

Your next question comes from the line of Shepard from Cantor Fitzgerald. Your line is open.

Hi, Andreas.

Hi, good morning, everyone. Congratulations on the quarter and thanks for taking our questions.

Andres Juan Sheppard: Congratulations on the quarter. And thanks for taking our questions. I wanted to maybe touch on, you know, how should we be thinking about the cost of energy, ASPs, and the utilization rate for 2024, particularly given the guidance that you issued, you know, what kind of, for modeling purposes. What would be a good way to think about the ASPs and the utilization rate, you know, 19% as of year end, which is great. Curious, you know, what you're targeting or what you might expect for 2024. Thank you. Yeah, so we don't disclose that either, but I'll describe the dynamics here. On the energy cost front, we probably will see a slight reduction in 2024 because we're still observing the effect of amortization of demand charges, coupled with us moving to very favorable EV rates in a number of geographies.

I wanted to maybe touch on how should we be thinking about.

Cost of energy.

And the utilization rate for 2024, particularly given the guidance that you issued what kind of in terms of for modeling purposes, what would be a good way to think about asps and the utilization rate of 19% as of year end, which is great.

Curious, what you're targeting or what you might expect for for 2024. Thank you.

Yeah. So.

Well, we don't disclose either but I'll I'll describe the dynamics here on the cost front, but probably will see a slight reduction in 'twenty to 'twenty four we're still observing the fact of amortization of demand charges, coupled with us moving to a very favorable EV rates in a number of geographies do you sort of see a slot.

Olga Shevorenkova: You should see a slight improvement on that front. On the pricing side, we probably will see a slight improvement as we've just made some changes to the algorithm and pricing strategy, like, like a month ago or so. So it should take an effect to probably gain a couple cents there. And if we're talking about the difference between the two, we definitely should assume some improvement in the energy market. Okay, thanks, Olga. So if I understand correctly, then probably a reduction in ASPs for 24 and then maybe a gradual improvement in the utilization rate of the charger.

Improvement on that front on the appraisal side, we probably will see a slight improvement that we've just made some changes to Aldo lives inland pricing strategy.

A couple months ago or so so it's just taken the fact that probably again a couple of cents there.

And.

If we're talking about the difference between the two would definitely shouldn't assume some improvement on the energy margin.

Okay. Thanks, a lot guys. So if I'm understanding correctly, then probably a reduction in Asp's for 24, and then maybe a gradual improvement in the utilization rate of the Chargers for for this year. So.

Badar Khan: So the reduction in average sales costs, the reduction in energy costs, but an improvement in ASP, average sales price, right? So the difference between the two is the margin that should expand a little bit in 2045. And Andres, again, just to reemphasize, you can see the operating leverage that exists in gross margin. We've shared with you how much of our charging cogs is fixed versus variable at a store level. And so if we see growing utilization and growing throughput per store, which we've seen a very significant increase over the last year, I'd expect us to see that operating leverage show through in expanding gross revenue. And so just to maybe clarify, Andres, adjusted gross margin is not just energy costs.

So the reduction in average sales costs, a reduction of energy costs, but improvement in ASP. It shows itself right right. So there are different between the two.

Is the margin that should expand a little bit and plentiful.

And Andres Okay again, just just to reemphasize you can see the operating leverage that exists in gross margin.

We've shared with you how much of our <unk>.

Charge in Cogs is fixed versus variable at the store level and so if we see growing utilization and growing throughput per store, which you've seen a very significant increase over last year I'd expect us to see that operating leverage show through in the expanding gross margin.

Alright, and so just maybe quantify andrus adjusted gross margin and not just energy costs. There is a lot of different cost and then it's fully loaded it's quite a loaded number of maintenance that was property taxes.

Badar Khan: There are a lot of different costs, and then it's fully loaded. It's quite a loaded number. There's maintenance, there's property taxes, there's some AT&T and Verizon charges, there is rent. So when you're looking at adjusted gross margin, it doesn't just talk to the dynamics of the difference between the price and energy cost. Energy cost is only part of it.

There is some some AT&T and Verizon charges there is around so when you're looking at the adjusted gross margin. It doesn't just talk to the dynamics of the difference between the price and then an energy cost energy cost is on the part of it.

Olga Shevorenkova: I see. Okay. No, that's helpful.

Okay. No. That's helpful 60, 40 split the different sites.

Andres Juan Sheppard: Got it. Okay. And then maybe switching gears on NEBI funding, you know, obviously understanding that you're not dependent on it, but just can you maybe remind us what the total amount that you have been awarded so far from NEBI? I think it was about $180 million last quarter, so just seeing if there's an update there. And what should we be thinking about in terms of awards for this year?

Got it okay.

Then maybe switching gears on Navy funding, obviously understanding that youre not dependent on it but just can you maybe remind us what is the total amount that you have been awarded so far for the <unk> I think it was about $180 million and last quarter. So just seeing if theres an update there.

How should we be thinking about in terms of awards for for this year is there a target that you guys are expecting for or just trying to incorporate that into the model as well. Thank you.

Andres Juan Sheppard: Is there a target that you guys are expecting or just trying to, again, incorporate that into the model as well? Yeah, I mean, Andres, the levy, as you said, funding is not a particularly material part of our build plan. As we said, we were focused on building infrastructure in kind of urban and suburban locations as opposed to highway corridors. So it's not a huge part of what we do.

Yes, I mean, Andrew Levy is you said funding is not a it's not a particularly material part of our build plan.

We've said we will focus on.

Building infrastructure in.

Okay.

Suburban.

Location as opposed to highway corridor, so it's not a huge part of what we do.

Badar Khan: We are excited about supporting our partners, so Pilot Flying J and GM through our extended relationships. So we're excited about supporting them in, in, in deploying sites that may be eligible for NEBI funding, but it's just not really a particularly material part of it. That leaves for the... I'm here. I'm here.

Excited about supporting our partners, so pilot flying J and GM with.

Through our extend relationships. So we are excited about supporting them.

In in is deploying sites that may be eligible for <unk> funding, but it's just not really a particularly material part of our build plans today.

At least for the near term and maybe just to add to what have you name. It is one of main in grant funding sources, we're applying for and.

Olga Shevorenkova: Yeah, and maybe just to add to it, we view NAVI as one of many grant funding sources we're applying for. And for it, we have a Color VIP program and a bunch of other programs across different states. For those, for those other programs, the amount which has been awarded but hasn't, we haven't collected yet, that's tens of millions of dollars, just to give you an idea of the magnitude.

For it it would have a color there would be a problem in a bunch of other programs across different states for those but those other programs their mind, which awarded but hasn't we haven't collected yet that's tens of millions of dollars just to give you a magnitude. So nave is small it doesn't necessarily mean, our overall capital offset strategy.

Olga Shevorenkova: So if NAVI is small, it doesn't necessarily mean our overall capital offset strategy is not working out. We are accessing it wherever we can. We're being guided by the principle of maximizing NTV rather than maximizing grant capture. Some of the locations, even with grant captures, don't work for us.

And all working out we have access and that wherever we can but we'll be guided by the principle of maximizing NPV rather than maximizing the grand capture some of the locations of our Grand captures it doesn't work for US just to remind that that's all strategy.

Olga Shevorenkova: Just to remind you that that's our strategy. Yeah, got it. That's helpful. And sorry, I'm not sure if I missed it, but do we know then what the total awards are to date from NEBI? Again, I think it was $180,000 as of last quarter. Is that number unchanged? I don't know if we have it at my fingertips, Andres, but we can get back to you offline. Okay. Yeah, I don't remember. I might not have the total either.

Yeah got it that's helpful and sorry, Im not sure if I missed it but do we know than what the total awards to date from maybe again I think it was $1 80 as of last quarter.

Is that number unchanged or is there a room.

Okay.

I do.

Don't know if we have it at my fingertips, Andreas but we can get back to you offline on that.

Okay. Okay, I don't remember on top of my head the total either.

Okay. No problem. Thank you so much congrats again on the quarter I'll pass it on thank you.

Andres Juan Sheppard: Okay, no problem. Thank you so much. Congratulations again on the quarter. I'll pass it on.

Operator: Thank you. Your next question comes from the line of Bill Peterson from J.P. Morgan. Your line is open. Hi Bill.

Your next question comes from the line of Bill Peterson from Jpmorgan. Your line is open hi.

Yes, Hi, Yes, hi, good morning, guys Nice results and guide.

William Chapman Peterson: Yeah, hi. Yeah, hi. Good morning.

William Chapman Peterson: Nice results and guide. I'm hoping you can help me just to deploy your view. I know you dropped a lot of breadcrumbs on how to think about your network operations. But if we think about the trajectory of that business, which you said should see growth throughout the year, what about extended and tech-enabled services? Try to get a better understanding of how the cadence kind of goes through the year and maybe what your underlying assumptions are around BIO growth and so forth.

Hoping you can help just to the point of view I know you've dropped a lot of bread crumbs on how to think about network operations, but if we think about the trajectory between that business, which you said should see growth throughout the year, what about extend and tech enabled services.

Trying to get a better understanding of how the cadence kind of goes through the year and maybe what your underlying assumptions around vio growth.

And so forth.

Olga Shevorenkova: Sure. Yeah. For the extent that we have a big contract with Pilot Flying J, as we've talked at length, we are in full speed executing on that contract. We just gave some color in my prepared remarks that it will be roughly 35% if you take a midpoint range of revenue. That will bring us through roughly half of revenue collections for that contract. So another half will be left to collect in 2025 and 2026 and execute on that as well. We do not have any other big contract right now committed to Evgo. We're focusing our efforts on our own and operated network. If a big, lucrative deal like that comes our way, appears in the market, we'll go for it, and then we'll give an update that that's another whale we'll be executing on. But as of now, that is not the case.

Sure Yeah.

And we have a big contract with pilot flying J are notably we've talked at length. We are.

And a full speed execution on that contract. We just gave the guy gave some color in my prepared remarks that it will be roughly 35%. If you take a mid point range of revenue.

That will bring us by the end of 'twenty 'twenty four through roughly half of collection of revenue collections does that concept. So another half will be lapped or to collect over 25 and 26.

And then execute on that as well, we do not have any other big contract right now committed to either go we're focusing our efforts on our owned and operated network.

Big lockers of deal like that comes our way and our peers in the market.

We will go for it and then we will give an update on that and that's another way, we'll be executing on but as of now that is that is not the case so extend as of now.

Olga Shevorenkova: So as of now, we'll turn into operational maintenance revenue for PFJ after we're done executing through and building out phase one and phase two of their ancillary services. That's mostly plug share at this point. We expect revenue to grow probably a little slower than VIO year over year, but you should see some growth in that business line year over year. That's kind of how we view it as of now. And what was the last question you asked after that, Bill, if you don't mind repeating it? Well, I think you gave us, you expect the network to grow quarter on quarter, but I think what's missing and what's difficult for everybody is how to think about expanding. Is it first half weighted or second half weighted?

We'll turn into the operation and maintenance revenue for PSA After went down into the kitchen. So in building out phase one phase two.

On.

On the ancillary services, that's mostly blocks at this point.

We expect the revenue to grow.

Probably a little slower than var.

Year over year, but you should see some growth in that business line year over year, that's kind of how we view it as of now and what was the last question you asked after that though if you if you don't mind repeating it.

Well I think you gave us.

Expect network to grow quarter on quarter, but I think what's missing and whats difficult for everybody is how to think about extend is it first half weighted second half weighted it tends to be lumpy, but I mean, yeah.

William Chapman Peterson: It tends to be lumpy, but I mean, I know you don't want to talk about one quarterly guidance, but it's just hard to kind of model that. Yeah, sure, sure. We gave some call in the remarks, but I'll reiterate it. The extent is to be roughly equally distributed among quarters this year, with Q4 being a little heavier. So it will have a little bit of a different dynamics versus last year. Last year was lumpy because of large equipment deliveries.

I know you don't want to talk about one quarterly guidance, where it's just hard to kind of model.

Yeah sure. So what we gave some color on the remark validation right at <unk>.

<unk> to be roughly equally distributed.

Among quarters this year with Q4 being a little heavier so it will be a little bit of a different dynamics versus last year last year was lumpy because of large equipment delivered the Coa market focusing on construction, we're just tends to be steady quarter over quarter.

Olga Shevorenkova: This year we're mostly focusing on construction, which just tends to be steady quarter over quarter. Okay, thanks for that. Um, you know, we've heard some prior commentary that, you know, you've talked in the past about maybe, you know, maybe a 10,000 additional solves, but potentially pencil for the team. Try to get a sense for how you're thinking about the growth in this business. I think you exited this year around 3,000 operations with around 560 under construction.

Okay. Thanks for that.

We've heard some prior commentary that you've talked in the past that maybe maybe it's 10000 additional stores that potentially pencil for the for the team.

To get a sense for how you're thinking about the growth in this business.

I think you exited this year around 3000 operation with around 560 under construction you didn't guide this year, but how should we think about new new stores for this year and then how many you are planning on completing this year.

Badar Khan: You didn't guide this year, but how should we think about new stalls for this year and then how many are you planning on completing this year? We did, Bill. In all those comments, we said that we expect 8 to 900 new stalls to go operational this year. So that's just a little bit behind the 930 that we added without that 930 includes the 100 extended stalls that we added in 2023. So you're right that we've got a very large number of stalls that we think pencil.

We did $1 billion.

Ill just comments, we we said that we expect eight to 900, new stores to an operational this year.

So that's just a little bit behind the 930 that we added.

For without without that 930 includes the 100 extend stores that we added in 2023.

So where we're quite and so you are right that we've got a very large number of stores that we think pencil.

Badar Khan: And so we're focused on ensuring that we are deploying the right number of stalls and minimizing capital from shareholder funds as we seek to execute on financing that extends the runway. And if that means we're, you know, a couple of stalls less than new, then in 2024, we might otherwise have done, you know, as you said already, there are 9,990 other stalls that pencil to our double-digit return. Okay, again, thanks for all your insights today. Yep. Your next question comes from the line of Stephen Gingaro from Steeple. Your line is open.

And so we are we're focused on ensuring that we are deploying the right number of stores and.

And minimizing capital from shareholder funds as we seek to execute on financing that extends the runway and if that means we're a couple of stores less than <unk>.

2020 forward, we might otherwise have done as.

As you said already there is 9990 other stores.

<unk> to our double digit return framework.

Okay again, thanks, Rob, Yes, I would say.

Yes.

Your next question comes from the line of Stephen <unk> from Stifel. Your line is open.

Stephen Gingaro: Thank you. Hi. Good morning, everybody. So, two for me.

Hi, Steve Hi, Thank you hi, good morning, everybody.

So two for me one is a clarification when you say that.

Olga Shevorenkova: One is a clarification. When you say that at the asset level, the chargers are profitable, do you mean like all in costs? Like, can you just give us a call on what exactly you mean when you say they're profitable at an asset level? Yeah, we do mean all in cost. And when we say all in, it's all in and more. So it's obviously all the direct costs like energy, maintenance, property taxes, rent, third-party, IT charges, asset management, custom operations team, call center, and then on top of it, we allocate a portion of other teams which are involved in sustaining and operating the network, such as marketing, analytics, software, and hardware, and a couple others.

Asset level, the charterers are profitable.

But all in costs.

Can you just give us color on what exactly when you say profitable asset level.

Yeah, we're doing in all in costs and I would say all in it's it's all in and more so it's obviously all the direct costs like energy maintenance property taxes ramp.

And third party charges asset management customer operations teams.

It's a call center.

And then on top of them, but we allocate a portion of other teams which are.

Involved in sustaining operations and networks, such as marketing analytics software and hardware and a couple of others.

Stephen Gingaro: So it's a really, really big number. So the only costs which are not included in that will be your true corporate costs and your growth engine costs or costs required to deploy and grow the network. So it is a very encompassing number and a pretty robust number when we say that it is. Great. Now that's helpful.

Really really full number so they only cost which are not included in that will be your true corporate costs and your the growth engine cost so cost required to deploy and grows in that book. So it is a it is a very uncomfortable number and a pretty robust number one would say that it is positive.

Great. That's helpful. Thank you for clarifying so from a bigger picture perspective.

Badar Khan: Thank you for clarifying. So from a bigger picture perspective, when we think about and when you guys think about internally what Tesla has done, opening up the network, one of the things I think about, and you mentioned this earlier, you know, having access to fast charging without having to wait. And I would think that if I were a Tesla driver and showed up at a charging station, and I had to wait for a Ford, I'd be upset. So I'm just trying to think about their decision and whether that is a net positive or negative for you and how that kind of works in the overall fast charging world we're living in. Yeah, it's a great question.

When we think about and when you guys think about internally.

Tesla has done opening up the network I mean, one of the things I would think about it you mentioned this earlier.

Having access to fast charging without having to wait and I would think that that was the test drivers shored up but a charging station and I had to wait for a forward I'd be upset.

So I'm just trying to think about how do you think about their decision and whether that is a net positive or negative for you and how that kind of works in the overall fast charging world we're living in.

Yes, it's a great question I mean, I think we think this.

Stephen Gingaro: I mean, I think we think this the same as we have for quite some time, which is that Tesla opening up their network will contribute to lowering anxiety for customers in the purchase decision-making process for individual customers. And I think that's a good thing for, you know, EV adoption, and obviously for our business, with respect to customers utilizing Tesla's network. And again, we're talking about model year 2026. That's when the vast majority of OEMs will have or are expected to have maximum ports available on their cars to be able to use their network in a significant way.

The same as we have for quite some time, which is that Tesla opening up their network.

We will contribute to lowering thanks Iot for customers in the purchase decision making process.

For individual customers.

And I think Thats, a good thing for EV adoption and <unk>.

Obviously for our business with respect to customers utilizing test this network and again, we're talking about model year 2026, Thats when the vast majority of Oems will have.

We're expecting to have Max ports available on their cars to be able to use their network nodes in a significant way.

Badar Khan: You know, I think that if that results in congestion at Tesla sites, then clearly, we would expect to benefit from that. So we were expecting to see range anxiety being addressed at the purchase decision point for customers. And we're expecting that if there's congestion at Tesla sites, for us to be picking up the additional volume. And that's helpful. And just a quick follow-up to that. When you think about your detailed analysis of site planning, is that starting to become a part of the algorithm?

I think that if that results in congestion at Tesla sites, then clearly we would expect to benefit from that so we were expecting to see.

A range anxiety being addressed.

Purchase decision point for customers and we're expecting if there is congestion with Tesla sides for us to be picking up additional volume.

And Thats helpful and just a quick follow up to that when you think about your your detailed analysis of site planning.

Starting to become a part of the algorithm.

We've taken into consideration Steven a whole host of things as I talked about in our prepared remarks, so forecast sales density neighborhoods multifamily housing rideshare.

Badar Khan: We take into consideration, Stephen, a whole host of things, as I talked about in our prior remarks. So forecast sales, density of neighborhoods, multifamily housing, rideshare, but also, of course, the location of other chargers. You know, we, right now, we're looking at, we see that about a quarter of Evgo's sites are in zip codes where we expect Tesla will be able to charge other OEMs. And so, you know, very much, we take into consideration all of that. Great, excellent. Thank you for all the color.

But also of course location of other Chargers.

We are right.

Right now we're looking at we see that about a quarter of <unk> sites are in the ZIP codes, where we expect test it will be able to actually charge other Oems.

So very much we take into consideration all of these factors.

Great excellent. Thank you for all the color.

Stephen Gingaro: Yep. Your next question comes from a line of Craig Irwin from Roth MKM. Your line is open. Hi Craig.

Yes.

Your next question comes from the line of Craig Irwin from Roth <unk> your.

Your line is open.

Hi, Greg.

Craig Edward Irwin: Good morning. Thank you. Most of my questions have been answered, but there's...

Yes.

Thank you most of my questions have been answered but theirs.

Badar Khan: Your acceleration that you saw in the OEM charging and commercial charging is kind of counterintuitive with some of the things going on out there. There are, you know, rental companies reducing the size of their fleets and, you know, a bunch of announcements that sort of suggest that might have gone the other way. Can you explain to us sort of what's going right for Evgo there, why we are seeing this acceleration, and how sustainable it's likely to be this year? Yeah, look, I think we all read the same things in the papers.

The acceleration that you saw in the OEM charging and commercial charging it's kind of counterintuitive with some of the things going on out there theres some <unk>.

Rental companies, reducing the size of their fleets.

A bunch of announcements that sort of suggest that might've gone the other way.

Can you can you connect for us sort of whats going right for E V go there.

While we are seeing this acceleration and how sustainable it is likely to be this year.

Yes look I think we all read the same things.

Paper.

Craig Edward Irwin: We can clearly see that EV sales grew year over year, particularly for non-Tesla vehicles. Non-Tesla sales were up from 22 to 23, up about 66%, as we said in our materials. We are also seeing on our network, as we said in our remarks here and we've said in the prior call, we're seeing a very significant increase in ridership. So ride-share customers are taking advantage of our network, being able to charge at different times of the day, at off-peak hours, and that ride-share volume is now 25% of our throughput. So that's obviously very attractive, and we think that's likely to grow, especially since we're seeing commitments from the likes of Uber for 100% of their ride-share drivers to be driving electric vehicles by 2030. There are some factors here that I think are quite compelling.

We can clearly see that.

<unk> sales grew year over year, particularly for non Tesla vehicles, non Tesla sales were up from 22 to 'twenty three of about 66% as we saw.

In our materials.

We are.

Also seeing on our network as again, we've said in our remarks here and we said in the prior call. We're seeing a very significant increase in rideshare.

The rideshare customers are taking advantage of our network being able to charge at different times of the day at off peak hours and that Rideshare volume is now 25% of our of our throughput.

So that's obviously very attractive and we think that's something that's likely to grow, especially since we've seen commitments from the likes of Google for 100% of their rideshare drivers to be driving electric vehicles for 2030.

So there are some factors here that I think are quite compelling.

Badar Khan: I mean, I think that in terms of the near term, from the data that I've seen, we are still seeing year-over-year growth in electric vehicle sales. So January sales, from what I've seen for battery-electric vehicles, continue to go higher year-over-year, and I think that's also positive. Okay, and actually, I'm sure many of us on this call have heard anecdotal reports, you know, using rideshare services, that people are switching and that they do it for the economics. But, you know, can you maybe sketch out for us, you know, what the economic advantage might look like for traditional, you know, rideshare drivers? I mean, is that something you might be able to do for us at this time? I don't think we can do it on this call. But I think that it's an interesting question.

I think that.

In terms of near term we are from the data that I've seen we are still see year over year growth in electric vehicle sales.

January sales from what I've seen for battery electric vehicles continue to go higher year over year, and I think Thats also a positive for us.

Okay, and I'm actually I'm sure many of US on this call have heard anecdotal.

Reports.

Using rideshare services that people.

For switching and.

They do it for economics, but could.

Can you maybe sketch out for us.

Whats the economic advantage might look like for traditional.

Rideshare driver I mean is that something you might be able to do for us at this time.

I don't think we can do it on this call.

But I think that it's an interesting question I think that.

We expect that rideshare customers.

Craig Edward Irwin: I think that we expect that rideshare customers, as they look at their costs, like rideshare drivers, I'm sorry, but I think that's your question. As they look at their costs, they're finding that driving a battery-electric vehicle actually is an attractive thing to do for them versus a nice vehicle. And we can perhaps dig into that at a future date. Great, well, congrats on the 50 megawatt hour throughput. It's a pretty, pretty chunky number, a big milestone.

As they look at their cost.

Rideshare drivers and choice because your question is they look at their cost they are finding that.

Driving a battery electric vehicle actually is an attractive thing to do for them versus an ice vehicle and we can.

Dig into that in a future date.

Great well congrats on the 16 megawatt hour throughput, it's a pretty pretty chunky number big milestone. Thank you.

Craig Edward Irwin: Thank you. Thank you. And we have reached the end of our question and answer period. I will now turn the call back over to CEO Badar Khan for some closing remarks. Great. Well, thank you, everyone.

Thank you.

And we have reached the end of our question and answer period I will now turn the call back over to CEO Badar Khan for some closing remarks.

Great well. Thank you everyone. As you heard <unk> had a great fourth quarter and full year, beating the top end of our guidance our strategy to focus on owning and operating DC fast charging we think is clearly working.

Badar Khan: As you heard, Evgo had a great fourth quarter and full year, beating the top end of our guidance. Our strategy to focus on owning and operating DC fast charging, we think, is clearly working. And with very strong throughput and utilization that is now far outpacing the growth in EVs and our own store growth, we've passed the key inflection point where our installed base is now profitable on a standalone basis. Our focus on customer experience combined with disciplined investment.

And with a very strong throughput and utilization.

Is now far outpacing the growth in Evs and our own store growth, we passed a key inflection point, where our installed base is now profitable on a standalone basis.

Our focus on customer experience and one combined with disciplined investment.

Operator: I am very excited about where our growth engine will take us, and I look forward to providing you an update on progress on our next call next quarter. Thanks very much. This concludes today's conference call. Thank you for your participation. You may now disconnect. Thanks for watching!

I.

I'm very excited about where our growth engine will take us and I look forward to providing you with an update on progress on our next call next quarter. Thanks, very much everyone.

This concludes today's conference call. Thank you for your participation you may now disconnect.

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Sure.

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