Q4 2023 EVgo Inc Earnings Call

Okay.

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.

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.

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.

After the Speakers' remarks, there will be a question and answer session. If you'd like to ask a question. During this time simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question press the star one.

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.

Heather Davis, Vice President of Investor Relations at E. V. Go you may begin your conference.

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 E V go Chief Executive Officer.

Oh, gosh suffered a silver Eagles chief financial Officer.

Today, we will be discussing illegal fourth quarter 2023 financial results.

Outlook for 2020 or 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 that E V go dotcom.

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 or details 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.

Clearly an 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 are.

Undertakes 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.

Formation about these non-GAAP measures, including a reconciliation to the corresponding GAAP measure can be found in the earnings material available on the investors section of our website.

With that I'll turn the call over the Badar Khan you could go to the E L.

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

Badar Khan: EVgo posted yet another great quarter and set of results. 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 EVgo has been on. Emissions from transportation represent the largest source of emissions, and that is why the work we do is so important.

<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 he can.

<unk> CEO.

Worth taking a moment to remind everyone will be incredible and important journey.

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

Badar Khan: 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; investment in EVgo is clearly an investment in sustainability. But it is also an investment in a market that has a multi-decade growth trajectory without the need to pick one easy manufacturer; the business model is also focused on the highest growth segment of the chart. D.C. past, vaccine from the data today.

Vigo, our mission is to accelerate the mass adoption of electric vehicles liquidity convenient reliable and affordable EV charging network that delivers fast charging for everyone.

I believe you could go represents a compelling value proposition for investors not just because of where the company is currently trading.

The investment they need to go is clearly an investment into the state of Illinois.

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

Business model is also focused on the highest growth segment of the charging market DC fast charging effect seen from the data today.

Badar Khan: We like our core business of owning and operating the charging network to generate revenue every time a customer charges on our network, unlike a one-time purchase. And as we continue to see, our revenue is growing faster than the growth of EVs. Customer Capture, to Decide 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 it is hard to run. Financial discipline is key throughout our business.

We like our core business with Odeon operating the charging networks, we generate revenue every time a customer charges on our network. Unlike a one time equipment sales and as we continue to see our revenue is growing faster than the growth of evs.

Customer capture you dislike 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 it's hard to replicate.

Financial discipline is key throughout our business.

Badar Khan: From the proprietary network planning model to determine where to locate our charging stations to the disciplined investment decision-making process designed to ensure we generate double-digit returns and minimize reliance. 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, EVgo has a clear path to adjusted EBITDA break-even in 2025, and we passed an important inflection point in 2023 as a The installed base is now profitable on a standalone basis, 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, and for the full year, we delivered record levels of throughput and revenue, nearly tripling year over year.

Prior to our 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.

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

The Liberals Alere trebling of throughput and revenue for each of the past two years.

It's adding NPV upscale 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 would now see across our network.

The installed base is now profitable on a standalone basis.

It's 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.

Badar Khan: In 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. 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.

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 storage and throughput.

<unk> path to profitability comes from strong topline revenue growth.

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 EV adoption, is experiencing strong revenue and throughput growth, and 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.

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

<unk> from our capital light extend business that complements our core business, but with Chargers owned by site.

<unk>.

And ancillary and tech enabled services like our plug share business and fleet focused business model.

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.

Expect it to generate the highest returns.

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

As you know is 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.

Badar Khan: 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 the best. Two years ago, around one third of our network throughput was outside California. Whereas by the end of 2023, that number is expected to grow to around Fact, 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 states. In 2021, consumers will have approximately 31 EV models to choose from. Today, there are now more than 70 models, with many more on the way from the OEA.

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 wet states and glue.

In 2021 consumers had approximately 31 EV models to choose for today. There are now more than 70 models with many more on the way from the Oems. These.

Badar Khan: These models are not only becoming more affordable, but they are increasingly targeting all vehicle segments, and their technology is improving. Since 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 charters. 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 the 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.

These models are not only becoming more affordable, but they are increasingly addressing all vehicle segments and their technology is improving.

Illegals inception, we've made it a priority to sort of only be enabled by our innovation lab in L. A where we work collaboratively with Oems to ensure interoperability between all EV models and our Chargers.

<unk> 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.

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

Foundational to this growth engine, although many years' experience, we have and secure your supply chain Marquis site host relationships excellent relationships and advocacy efforts with governments or utilities and innovative tech platform and our sizeable OEM partnerships when put together this is difficult to replicate.

Kate at the scale and with the customer experience, we now offer and reinforces our competitive advantage.

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 and 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 2030.

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

Despite some Oems pulling back from their extraordinary ambitions over the past couple of years.

Amendments from Oems towards investing in electric vehicles still represents over $400 billion.

14 states representing over a third of the U S population of adopted advanced cleanup calls to the regulation from the California Air Resources Board.

Phases out the sale of new ice vehicles in favor of a 100% zero emissions future.

<unk> zero emission vehicles sales.

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 degree lives rule, where all rideshare vehicles have operated in the city must be.

Electric by 2030.

Badar Khan: 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 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.

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 icily calls with more new models being brought out every few months.

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

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.

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 networks grew by 66% year over year and now represent approximately half of all 2023 battery electric vehicle sales up from.

About a third in 2022.

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

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

E V go focuses on DC fast charging versus Earl to charging.

DC fast charging depending on the vehicle, it's possible to charge 100 miles and 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 stalls. In other words, we would continue to generate revenue even if there were no more new EVs. Because of decreasing vehicle efficiency due to larger EVs, we expect to see a higher growth rate of electricity consumption to power those EVs.

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

Our core business generates revenue from the sale of electricity to these well located stores in other words, we would continue to generate revenue even if there were no more U E be sold.

Because of decreasing vehicle efficiency due to larger Evs, we expect to see a higher growth rates 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.

Badar Khan: 4. We estimate the total addressable market, or TAM, is growing at a CAGR of up to 46% to 20%. 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. That assumes that the penetration is only up to 15%, implying decades of further growth.

And 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 billion to $15 billion annual serviceable addressable market, our Sam by 2030.

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

Badar Khan: The growth of DC fast charging is not some hypothesis for a future yet to come. We believe that early adopters of EVs had access to at-home charging as the market moves towards mass adoption. Additionally, 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. 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 at this transition. 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 five to 10% in 2021 and expect this growth will continue.

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 live 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.

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.

Badar Khan: The second driver for the growth of BC 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. It's more likely to live in multifamily housing, and it's more likely to not want to use valuable time during the day to charge their vehicle, and it's therefore very reliant on DC fast, this segment of drivers is growing very quickly.

The second driver for the growth of DC fast charging as a growing number of rideshare drivers that drive evs.

Average rideshare drivers drives three to four times more than the average commuter is more likely to live in multifamily housing and it's 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 the segment drivers is growing very fast valley.

Badar Khan: Evaluating our usage on the EVgo 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 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, derived 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 a census block level, which then tells us where to place We then turn to our extensive network of site partners to determine which of our partners' sites is best placed to build it.

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.

Percent in Q1 'twenty one.

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

Just an enormous amount of data.

Adoption rates forecast sales density at 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 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 partner sites.

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, showing our actual forecasted throughput versus what we had originally forecasted for all OEDs, shows not only how accurate our network planning model is but also the level of robustness of our underwriting. We 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 employment. 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.

And the model is iterate it continuously comparing actuals with 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 and shadow shows not only how accurate our network planning model.

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.

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.

Badar Khan: We have over a decade of experience in successfully identifying, applying for, and securing grants at the federal, state, and local level. The federal government has two primary programs to incentivize charging: 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 of formula funding from the Bipartisan Infrastructure Fund. In January this year, the IRS clarified rules about 30 C 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 30 seats. Finally, EVgo and our partners through our Xtend business continue to win NEVI 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.

We have over a decade of experience in successfully identifying applying for unsecured grants at the federal state and local levels. The federal government has two primary programs to incentivize charging infrastructure the.

The expansion and extension of 30 feet. The alternative refueling property tax credit from the inflation reduction Act 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 to be 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 E V go and our partners who are 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 sites. EVgo's digital first approach offers customers and partners alike a variety of offerings. We've worked tirelessly to improve the customer experience, and a lot of that is driven through software.

As a reminder, these diverse sources of funding and typically be fast 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 to software for example, the charge plus a seamless plug in charge experienced gets rave reviews from EV drivers as do reservations.

Badar Khan: For example, the Charge Plus, a seamless plug-and-charge experience, gets rave reviews from EV drivers, as do reservations. 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 our digital first approach, from extend and rideshare partners to OEMs to site hosts. Each of our partners has benefited from technology offerings that improve our relationship. One of EVgo's core priorities is to offer a best-in-class customer experience. 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 rideshare and pay as you go models available for drivers to choose what serves their needs best while optimizing profitability freewheel.

And our partners value with digital first approach from extended Rideshare partners to Oems to fight 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.

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. And third, having a reliable solution that works right on the first try.

Having lots of stores, but a site. So they never have to wait for a charge second having high powered charters available. So they can fill up quickly.

Third having a reliable solution that works right on the first try and force a hassle free payment process on each of these dimensions igo 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 20 years across its over 950 locations. We have nearly doubled the number of sites that have at least six stalls. And we're now targeting a minimum station size of six stalls and A for 8 to 10 if the site host has them. Across our nearly 3,000-stool network, we have more than doubled the number of stools served by a 350-kilowatt system. 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 experience within a reasonable time window on their. During 2023, our one-and-done rate increased over 600 basis points to 91%.

Across our over 930 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 $8 eight to 10, if the psychosis have space.

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

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 experience within a reasonable time window on their first trial.

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

Badar Khan: 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 maintenance. 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.

Finally, we know that a key frustration for customers join 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.

<unk> charging easier and faster during 2023, we nearly doubled the percentage of sessions using auto charge, plus which now has over 50 vehicle models eligible for it.

This customer centric model combined with our disciplined investments in building a world class fast charging network is why I am so excited about our electric future.

I'll now turn the call over to all of US 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.

Olga Shevorenkova: EVgo ended 2023 with yet another strong quarter, mostly driven by the continued 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 charging gravity.

And it turns a bunch of things, but yet another strong quarter losses, driven by the continued growth of our owned and operated charging network.

Revenue in the first quarter, what Christian Neil N, which represents an 83% year over year increase.

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

Olga Shevorenkova: Retail target 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, with 3,550 as of December 31st, 2021.

But he is now targeting revenue grew from five eight in Maryland in the fourth quarter funds. It to this extent southern Maryland in the fourth quarter Trans Atlantic Street, exhibiting at 186% year over year and Chris.

Commercial charging grabbing them from.

From 1.3, Maryland in the fourth quarter are fundamental to the six point Savannah, and Atlanta in the fourth quarter.

It's nice to see it.

Exhibiting at 378% yearly increase.

And the extended revenue grew from six telephone southern Maryland in the fourth quarter plans Atlanta, two to 18 fine sand Neil N in the fourth quarter, a flanker brand to see exhibiting a 10% increase.

We added over 930, new operational staff, so O&M at the radio network here in Atlanta.

Accelerating off the 600 it sounds in your stores were added in times Atlanta too.

So all of that duration on the Jackson inclusive of 196.

All right.

<unk> 3558 as of December 31st.

Olga Shevorenkova: During 2023, EVgo added over 366,000 new customer accounts, which represents the majority of all non-Tesla EV sales in 2023. 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 EV-VIO 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.

UN trended rents lets say, even though added over 866000, New Carson Lake House with Tenet presents them enjoy all non Tesla evening sale influences when to change.

Does it go and it sounds like that to say well more than 884000 customer accounts and six 2% increase over here and threat defense it too.

Even though as network throughput continues to accelerate in the fourth quarter growing faster than E V. I O growth over that same time period.

As Bob discussed earlier.

We're focused on the fastest growing segment of the charging market you CFC and it can clearly this team and our numbers.

This accelerating growth is driven by a number of factors.

He buyers moving from early adopters with a higher portion of multi union dwellers.

And the rapid growth in right Chad.

Well Ed.

Illegal miles traveled finally catching up to those of I E.

Inquiries and easy charge rate or how much electricity is delivered over the time period to a vehicle and heavy allow sufficient EV models.

Olga Shevorenkova: Utilization was over 19% across the network in the month of December. Additionally, over 55% of our stalls had utilizations greater than 15% in December 2023, and over 40% of our stalls had utilizations 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 message: 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.

Yeah, So Jason was over 19%.

And that work in the month of December.

Over 55% of all saw had with elevations greater than 15% in December trends at length of stay and over 40% of all so how do you see elevations greater than 20% in the sound was funded by the street.

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

There are two factors that drive it with matrix.

Basically it was Asia and charge rate.

As a reminder, charge rate depends on the car's battery, but can be limited by some legacy false charges was marks capacity is lower than a specific car 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 high 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. As of Q4 2023, that number has increased to 42%, and on the low end. Two years ago, 60% of stalls were delivering less than 50 kWh a day. Today, that number has shrunk to 16.

We expect average charter rates are now in network to increase over time.

By newer cars wouldn't think about it.

And a higher mix of ultrafast surcharges.

The charges are now in that cycle.

And the daily throughput at the stall worth 200 kilowatt hour in the sandwich tons of dentistry.

Up from 51 kilowatt hour in December 1000 to one representing a four time so great.

Yes elevation 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, all at 2% of all styles were delivering 200 kilowatt hours or more per day.

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

And on the low end two years ago, 60% of stores are delivering glass sensors per kilowatt hour a day today that number has shrunk to 16%.

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 the cost of goods sold and second, leverage within SG&A. Letters and pegboards.

Even though continues to realize at the raising leverage on its path to profitability in.

In the first quarter of Atlanta, Atlanta, three we've doubled our revenue while tripling our Johnson gross profit.

In the fourth quarter of two once a bunch it too.

Jonathan G&A as a percentage of revenue decreased from 19, 2% to 54% over the same time period.

This improvement and driven by a third.

Leverage was in cost of goods sold and second leverage was another journey.

Well that is impactful.

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 throughput. These costs remain fixed per stall, therefore lowering stall-dependent costs as a percentage of revenue, driving adjusted growth margin higher. To help you model operating leverage in our core business, we have broken our adjusted cost of sales into two categories.

So every store we deploy there then the amount of fixed cost so it depends on the cost associated with it.

Including the opposite DOCSIS ran base maintenance and demand charges.

Every additional kilowatt hour throughput this cost remain fixed first saw therefore, lowering so dependent costs as a percentage of revenue driving the adjusted gross margin up.

To help you model up there anything leveraged in our call business, we haven't broken our adjusted cost of sales into two categories.

Olga Shevorenkova: Children's Network Cost of Sales, and others. Charging network costs of sales include all costs associated with running our core owned and operated charging network. Whereas other costs of sales include the cost of goods sold associated with our extent and ancillary business. Within the charging network cost of sales, approximately 40% of costs are stall dependent, in other words, fixed per stall. The other 60% of the charging network cost of sales is throughput dependent and includes volumetric energy costs and credit card flow sets.

Charging network cost of sales and other cost of sale.

Jordan network cost of sales, including all costs associated with it on in our core owned and operated charging networks.

Whereas other cost of sales incurred.

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

Within charging network cost of sales.

So, let's say 40% of costs are still dependent in other words fixed or stalled.

60% of charging network cost of sales.

Throughput dependent and then close with magic and there was a cost 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 cost to sustain the existing charging network and other existing businesses, such as call centers, third-party IT, account management, marketing, and sustaining software and hardware expenses.

The increase in daily throughput per store you saw on the prior flight was primarily behind the Johnson 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 and even go can be broken down into three categories.

The cost to sustain the existing charging network and other existing businesses such as call Center Third Party AC account management marketing sustain in software and hardware expenses.

Olga Shevorenkova: These costs represent roughly 30% of total adjusted GNP. Second, the cost to support growth of the charging network and other business lines, our so-called growth engine, Badar has spoken at length about. This cost represents another roughly 30% of adjusted GNP.

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

Second the cost of support and growth of the charging networks and other business lines. Our so called growth engine, but I have spoken at length about.

This cost it presents another outflow 30% of adjusted G&A.

Olga Shevorenkova: And finally, corporate overhead costs that represent roughly 40% of total adjusted gene. Growth costs are tight to the size of the growth engine, and corporate costs are fairly fixed at this point. And as a result, adjusted GNA has increased only 9% year over year, while, as mentioned earlier, revenue tripled, fully demonstrating the operating leverage within GNA. 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.

And finally corporate overhead cost that represents 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 is it is all adjusted G&A has increased only 9% year over year, while as mentioned earlier revenue tripled Paul is demonstrating that the raising.

Leverage was in G&A.

Both of those the facts, coupled with increased scale of the charging network and other business lines.

Put us on a clear path to reach adjusted EBITDA breakeven.

Fortunately, we have passed an important inflection point in time, the sensor suite and that is a lot of the utilization and throughput levels. When I was saying across all networks. The install base is now profitable on a stand alone basis.

Adjusted gross profit was 13.3, new one in the first quarter of 2023 up from 5 million in the fourth quarter of planned defense it too.

Adjusted EBITDA was negative 14 million in the fourth quarter of 2023 and improvement versus negative plentiful and watermelon and the fourth quarter of 'twenty two.

Cash used in operations was $7 three Maryland in the fourth quarter.

Olga Shevorenkova: We added over 200 new stores 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 receipts 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. 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 expenses. Retail charging revenue was $45.7 million, an increase of 142% compared to 2022.

We added over 200, new stores to our owned and operated network you end of the fourth quarter.

Capital expenditures were 34 8 million in the fourth quarter, let's.

This includes expansion cut back or a new cut backs as well as capitalized engineering and construction and tech development costs.

We are now reporting capital expenditures net of capital offsets were.

Capital offsets represents cash collected from various funding sources in a particular period.

Specifically in the fourth quarter of Trans Atlantic Street, we collected $5 7 million in OEM infrastructure payments.

All payments under the GM contract and seven falling nealon as proceeds from capital builds funding.

All cash collected as part of their as grant and incentive programs secured over the prior period.

Bringing capital expenditure net of capital offsets, it's one two ongoing 8 million for the quarter.

For the full year 'twenty one to three total revenue was 161 million nearly tripling compared to 'twenty defense it too.

Revenue growth was primarily driven by a charge in the revenue and even go expense.

They fail charging revenue was 40 517 million, an increase of 142% compared to 20% up to.

Olga Shevorenkova: Commercial charging revenue was $14.5 million, an increase of 331% compared to 2022. 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. Adjusted growth margin was 26% for the full year 2023, up from 24.3% in 2022.

Commercial charging revenue was 14, five neyland and then claims of 331% compared with just a bunch of a bunch of too.

And extend revenue was 762 points on the island.

And then the 292% compared to 22.

Adjusted gross profit was 41 8 million and 20% to see up from 13.3 Malan in 'twenty one to two.

And Jonathan gross margin was closer to 6% for the full year, it's once a bunch of St.

Up from Atlanta for Super fans and friends of friends at too.

Olga Shevorenkova: This increase was driven by operating leverage, as discussed earlier. Greater leverage effects are observable when comparing the 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 GNA 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 fourth quarter to fourth quarter. Adjusted EBITDA loss improved by $21 million in 2023 to a loss of $58.8 million versus a loss of 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 of Fox observable when comparing adjusted gross margin in the first quarter of Sun's history.

The fourth quarter of friends at two versus comparing full year results.

This is driven by accelerated Lcs as revenue recognition in the first half of 'twenty friendship too, which drove margins higher in that time period.

And Jonathan G&A as a percentage of revenue improved significantly from 171.2% Atlanta too.

Just 2.5% implant the street.

<unk> strengthened the same leverage in fact, when looking at fourth quarter to fourth quarter numbers.

Adjusted EBITDA loss improved by 21, new one in front of a bunch of three to a loss of $58 eight nealon versus a loss of 81, two milligrams with upon itself.

Cash cash equivalents and the restricted cash was 209 million as of December 31st two answers one fifth Street.

Olga Shevorenkova: Cash used in operations was $37.1 million for the 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 car packs were $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 own and operated. Now, turn to the 2024 guide. EVgo currently expects full year 2024 revenue to be in the range of $220 million to $270 million, and just 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 company. 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 the others.

Cash used in operations was 37 point a lot of Mellon cause a year compared to 50 818 milligrams once it once it too clearly demonstrating our focus on the reduce in the operational cash burn and so I think it would go on a clear path to profitability.

And so as they go into three total Capex was 158.9, Neil N and capital expenditure isn't that a capital offset by $122 8 million. The vast majority of the hundreds of denied nealon and cut back or expense to grow our owned and operated Nash.

Okay.

Now turning to friends and friends, if all guidance.

Even though we currently expect full year 'twenty one to for revenue to be in the range of 201, similar to 217, Neil N and.

And adjusted EBITDA to be in the range of negative <unk> 48 in the island, so negative third in Maryland.

Our guidance is informed by several tinnitus, which account for a range of a knee sales influenza and therefore utilization trends and the pace of execution under our contract with the pilot company.

We expect revenue to be roughly 35% of total revenue in 2004, when looking at the midpoint of guidance range. We also expect revenue to be more or less equally distributed through the four quarters with Q4 being slightly heavier than others.

Olga Shevorenkova: 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. Our current deployment plan is for 800 to 900 new EVgo-owned stalls. It is 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.

Charging network revenue is expected to grow sequentially throughout the year, driven by increasing vil consistent with prior years.

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

Our current deployment plan is for 800 to 900, new either go own stalled.

This team has put in operation and its one that went before.

And average cut backs the soul of $160000 and before offsets we expect capital expenditures net of capital offsets to be in the 95 to 110-Kneeland range.

Olga Shevorenkova: As we have discussed at length, EVgo is on a clear path to an important inflection point in our business, hitting adjusted EBITDA break-even. EVgo expects to be adjusted in the DAB rate even for the full year of 2025. 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. If you go into 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.

Everyone have discussed at length.

There's always on a career 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 20 to 25.

This is based on the expectation that E V. O. You all will continue to grow and then even go we'll continue to expand its network and realize operational efficiencies.

Hey, Bill.

And Atlanta, three with 209 nealon in cash cash equivalents and just check the cash our car and the duration of all and network expansion plans. He was wrong way through a good portion of trying to 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 offered.

Olga Shevorenkova: The latter, EVgo, has put together a high-quality duty loan application that addresses the need for more public charging infrastructure to be judiciously built out at scale across the US. 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 Cowen. Your line is open.

The latter.

So has put together a high quality loan application that addresses the need for more public charging infrastructure to reach.

Traditionally built out that scale across the U S.

If you go to the Accretable 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 process.

We look forward to sharing our progress and plans, it's not their fault 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.

Yeah.

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

Gabriel J. Daoud: 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.

Helpful.

Well, maybe wanted to start with Oh go what you wrapped up with the towards very forward capital offsets. 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 to 50.

So could you maybe give a bit more detail on where all of that is coming from.

Yes.

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 CAPAC 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 our 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?

Yes, sure Gabe so as the so I wasn't here rather than kind of like remind 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 in that particular year because we.

Alright ill probably spend goes 30, 40% of what's required to be spans supports a quantified for us isn't a duration on fund to fund before those now because you construct over like 12 to 18 months with various stages of development.

And or just that's right. It was in trying to blend it for.

Olga Shevorenkova: Within 2024, fiscal CAPACs or cash CAPACs 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 scoping 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 one to one. And the same dynamics plays out with offsets.

Cisco cut back so cash cutbacks, we're going to spend some of it will be spend on 'twenty for us. It sounded like will be spent already around 25 assets. Some of it will be in early development costs for 'twenty, six or maybe even 27 assets for some early scoping exercises. So just to kind of make it clear 160, K by 800 to 900.

It won't get you to that besides numbers you won't be able to match its 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 it is grant funding and where the grandson then you start invoicing them. After they often go to the traditional it takes.

Olga Shevorenkova: With offsets, as we spoke at length many times, many times, one of the main components of the offset is grant funding. And with grant funding, you start invoicing them after the asset goes operational, and it takes you up to several months to collect that cash back. So there is a clear mismatch between when you spent the CAPACs for this particular asset versus when you collected the offset.

Opt them several months to collect that cash box those are the clear mismatch or when you had spans the cutbacks for this particular asset versus when you collapse at the offset the cycle is a little shorter with OEM payments because they just pay Quaker it's a commercial organization and an answer or do you see offsets there will be a delay it's unclear yet.

Olga Shevorenkova: The cycle is a little shorter with OEM payments because they just pay quicker to commercial organizations. And on 30c offsets, there will be a delay. 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, we maybe will be trading every quarter, but there will still be a delay. So when you are looking at kind of cash numbers within the year, the capital offsets versus CAPACs, they don't relate to the same assets. That's why we introduced the concept of vintage CAPACs or the concept of vintage offsets.

As we go into the trade and once a year those credits twice a year or maybe once transaction costs come down in our industry. The overall, so to see trade and tax industry matures, we're maybe a little bit change in every quarter, but there will still be a delay. So when you are looking at them kind of cash number was in the year the capital offset versus cut back.

They don't relate into the same assets. That's why one should use the concept of vintage got back. So the concept of vintage offset them I've talked about in my prepared remarks, and then the charges included in the materials will provide it when we compare the capex.

Olga Shevorenkova: And I talked about it in my prepared remarks, and the chart is included in the materials we provided. When we compare the CAPACs referred to specifically assets, which go in operational 24 and capital offsets, also related to those particular assets, we expect an offset of roughly 40%. So 60% of the revenue comes, it's net, comes from EVGO, and 40% comes from other sources. Within a particular year, that number could fluctuate one way or the other, depending on the timing of each of those. Thanks, Olga. Thanks, Olga. That's, that's really helpful. And maybe just sticking to that.

And it's hard to specifically office, which go into personal 24 and capital offsets also relate to those particular assets, we expect to offset roughly 40% to 60% comments. It's math comes from either go and 40% comes from other sources within the particular here that number could fluctuate one way or the other.

It depends on on a on a Thailand of each of those components.

Thanks, a lot. Thanks, all right that's really helpful and maybe just sticking to that.

Gabriel J. Daoud: So I get 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?

24 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 C.

Olga Shevorenkova: Just how should we think about 30 C values? Yeah, that's going to be the first time. 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 assets portfolio. I probably will not comment on a price just yet because we just started exploring it.

<unk>.

Yeah, that's going to be the first time and that'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 bought into it turns off we have a lot of interest for our first portfolio four hour. If afterwards once it went to three office portfolio.

I, probably will not comment on the price just yet because we just started exploring it 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 of our partners.

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 parties. Okay, okay. Yeah, sure. I understood.

Okay. Okay, Yeah sure understood that's exciting and we'll look forward to that.

Gabriel J. Daoud: That's exciting. We'll look forward to that. 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, and how does that translate to like 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.

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 like 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 to I know the game, but we think that the more appropriate time and space to share or something like that will be a separate occasion. We are thinking about comes often kind of like a webinar event of some sorts, where we will go in that.

Grader in depth and detail on our project economics, and now are more midterm 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 all cause base, how we're thinking about the charge rate and whatnot.

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

Over and over again.

Olga Shevorenkova: 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, Gabe, let me just quickly describe that.

Maybe.

Oh grows our business grows now I think you have enough information to try to even model of yourself and see its going to me because they've been big if we can see here to the pull in Africa and continues to grow alongside they adopt how exactly they're going to look like from olive or start to I think a separate occasion, that's probably a better chance for us to.

I'll just share that information and talk about it at length.

Yes, and again, let me.

Yeah, Let me just sort of let's say just to add to that.

Badar Khan: We've shared with you already on this call now materials that the operational business, so the stores that we have on the ground, are covering their 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 cost today. And so, as this business continues to scale, we should expect to see margins coming from those operational stores 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. Well, much earlier.

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

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

Our covering their costs.

So if you exclude the cost of the growth engine and our corporate overhead fixed costs the assets that we have in the ground.

19% utilization rates.

We're actually covering their cost today and so as this business continues to scale, we should expect to see margins coming 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 successfully.

Badar Khan: Thanks, Badar. 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.

Well much earlier.

Yes, okay, well I'll take it to somebody else up offline. Thanks, everyone.

Yes.

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

My address.

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, what kind of, in terms of, you know, for modeling purposes. What would be a good way to think about the ASP and the utilization rate, which is 19% as of the year end, which is great. Curious, you know, what you're targeting or what you might expect for 2024. Thank you.

Hi, good morning, everyone. Congratulations on the quarter and thanks for taking our questions I wanted to maybe touch on you know how should we be thinking about.

Cost of energy.

Pes and the utilization rate for our 2024, particularly given the guidance that you wish you know what what kind of in terms of you know for modeling purposes, what would be a good way to think about the 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 a for 2024. Thank you.

Olga Shevorenkova: 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, so 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 a month ago or so. So it should take effect to gain a couple of 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.

Yeah, so or.

What we don't disclose this goes either but I'll I'll describe the dynamics here on the cost front, we probably will see a slight reduction in 'twenty one to four because we're still observing the effect of amortization of demand charges, coupled with us moving to a very favorable E V rates in a number of geographies. So you should see a slight improvement on that.

Upfront on the operations side, we probably will see a slight improvement that we've just made some changes to our ALDA listen when presence jotted. It oh like like a month ago or so that's just taken the fact that probably again a couple of cents there and Ah if if we're talking about the difference between the two with <unk>.

So Nicholas shouldn't assume some improvement on the energy margin.

Olga Shevorenkova: 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 charge. So the reduction in average sales costs, the reduction of energy costs, but improvement in ASP, average sales price, right. So the difference between the two is the margin that should expand a little bit in 24.

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 so the reduction in average sales costs, a reduction of energy costs, but improvement in S. B, so that sales price right. So.

There are different.

She was the margin that should expand a little bit and plentiful.

Olga Shevorenkova: And Andres, just to reemphasize, you can see the operating leverage that exists in gross. 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, 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 growth. Right. And so just to maybe clarify, Andres, adjusted gross margin is not just energy costs. There are a lot of different costs, and then it's fully loaded. It's quite a loaded number. There is maintenance, there is property taxes, there are 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 price and energy cost. Energy cost is only part of it.

I was just 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 the store level and so if we see grow utilization throughput per store, which <unk> seen a very significant increase over last year I'd expect us to see that operating leverage shows really expanding gross margin.

Right and so just the most and maybe quantify andrus adjusted gross margin is not just the energy cost. There is a lot of different cost and then once it's fully loaded it's quite a loaded number was maintenance and property taxes.

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 only part of it.

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

I see okay.

The board has flipped.

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 is? I think it was about 180 million last quarter.

Got it Okay, and then maybe switching gears on Navy funding you know, 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 maybe I think it was about $180 million and last quarter. So just.

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

Being if theres, an update there and 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 get incorporated that into the model as well. Thank you.

Okay.

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

As we've said we will focus on.

Building infrastructure in kind of urban 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 are excited about supporting them in deploying sites that may be eligible for NEBI funding. But it's just not really a particularly material part.

Excited about supporting our partners.

So pilot flying J and GM with <unk>.

We are extending relationships. So we are excited about supporting them.

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

Olga Shevorenkova: And maybe just to add to that, WeViewNavy is one of many grant funding sources we're applying for. And for it, we have a Colorado VIP program and a bunch of other programs across different states. For those other programs, the amount which is awarded but hasn't, we haven't collected yet, that's tens of millions of dollars just to give you a magnitude. So Navy is small; it doesn't necessarily mean our overall capital for that program. It is not working out.

At least the near term and maybe just to add to what do you need is one of main and grandsons and sources, we're applying for and.

For it it would have a color there would be a problem in a bunch of other programs across different states for those for those other programs their moms, which awarded but hasn't we haven't collected yet that's tens of millions of dollars just to give you a lot and that's it. So they are a small it doesn't necessarily mean, all overall capital upsets rather does not work.

Olga Shevorenkova: We are accessing it wherever we can. We're being guided by the principle of maximizing NPV rather than maximizing grant capture. Some of the locations, even with grant capture, don't work for us, just to remind ourselves that that's our strategy.

We are accessing that wherever we can when being 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 stratagem.

Olga Shevorenkova: Yeah, I got it. That's helpful. I'm sorry.

Olga Shevorenkova: I'm not sure if I missed it, but do we know then what the total awards to date from NEBI? Again, I think it was $180,000 as of last quarter. Is that number unchanged? You know, I don't know if we have it at my fingertips, Andres, but we can get back to you offline. Yeah, I don't remember my head total either.

Yeah got it that's helpful and sorry, I'm not sure if I missed it but do we know than what the total awards is to date from maybe again I think it was 180 as of last quarter, what was that number unchanged or zero.

Okay.

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

Yeah.

Olga Shevorenkova: Okay, no problem. Thank you so much. Congratulations again on the quarter. I'll pass it on. Thank you. Your next question comes from the line of Bill Peterson from J.P. Morgan. Your line is open. Hi, Bill.

My husband total either yeah.

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

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

William Chapman Peterson: Yeah, yeah, good morning. Nice results and guide. I'm hoping you can help me just to deploy my beer.

No.

Yes, Hi, Yes, hi, good morning, guys Nice results and guide I'm, hoping you can help just to the point of view I know you dropped a lot of bread crumbs on how to think about their network operations, but if we think about the trajectory between that business, which you said should see grow throughout the year, what about extend an enabler services I'm trying to get a better understanding of how the cadence kind of goes.

Olga Shevorenkova: I know you dropped a lot of breadcrumbs on how to think about network operations. But if we think about the trajectory of that business, which you said should see growth throughout the year, what about extend and tech-enabled services? Try to get a better understanding of how the cadence kind of goes through the year and maybe your underlying assumptions around BIO growth and so forth.

Through the year and maybe what your underlying assumptions around vio growth.

And so forth.

Olga Shevorenkova: Sure. Yeah, to the extent that we have a big contract with pilots flying J, as we were stopped at length, we are in full speed executing on that contract; we just gave a guy 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 through roughly half of revenue collections for that contract. So another half will be left or to collect over 25 and 26 and execute on that as well.

Yes.

Sure Yeah, well they extend we have a big contract with pilot flying J are notably we've talked at length, we and a full speed execution on that contract will just gave a guy gave some color in my prepared remarks, and then it will be roughly 35% if you take a mic.

One range of revenue that.

That will bring us a by the end of 'twenty is when you're forced or roughly half of collection of revenue collections does that concept. So another half will be left 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, if a big lockers and deal like that comes our way and our peers in the market. We'll go for it then and then we'll give an update.

Olga Shevorenkova: 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.

That's that's another way, we'll be executing on but as of now that is that is not the case. So it expand as of now well will turn into the operation and maintenance revenue for P. S. J after went down into the kitchen. So in building Alex I, just want him fish too.

Badar Khan: So expand as of now, we'll turn into the operational maintenance revenue for PFJ after we're done execution 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 an answer, 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 extent. Is it first half weighted, second half weighted? It tends to be lumpy.

On other ancillary services, that's mostly Berkshire at this point.

We expect the revenue to grow I'm, probably a little slower than via your year over year, but you should see some growth in that business line year over year, that's kind of I would 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 you 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. So.

Olga Shevorenkova: But I mean, yeah, yeah. So I know you don't want to talk about one quarterly guidance, but it's just hard to model that without having to sort of talk about it. We gave some color in the remarks, but I'll reiterate it. It tends to be roughly equally distributed among quarters this year, with Q4 being a little heavier.

Don't want to talk about one quarterly guidance, where it's just hard to talk about what might happen here shortly.

We gave some color on the remark validation right at the expense to be roughly equal and distribute it.

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 deliveries. This year were mostly focusing on construction, we're just tends to be steady quarter over quarter.

Olga Shevorenkova: So it will have a little bit of a different dynamics versus last year. Last year was lumpy because of large equipment deliveries. This year we're mostly focusing on construction, which 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 10,000 additional stalls, 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 you know maybe it's 10000 additional stalled but potentially pencil for the for the team.

Trying 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 are you planning on completing this year.

Olga Shevorenkova: 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, and in all those comments, we said that we expect 800 to 900 new stalls to go operational this year. So that's just a little bit behind the 930 that we added for, well that 930 includes the 100 extended stalls that we added in 2023. So we're quite, and so you're right that we've got a very large number of stalls that we think pencil. And so we are 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.

We did build in August 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 extends tools that we added in 2023.

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

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

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

Olga Shevorenkova: And if that means we're, you know, a couple of stalls less than this 2024 that we might otherwise have done, you know, as you said already, there's 9,990 other stalls that pencil to our double-digit return. Okay, again, thanks for all your insights today. Your next question comes from the line of Stephen Gingaro from Steeple. Your line is open. Thank you.

<unk> 2024 that we might otherwise have done.

As you said already this is 9990 other shows that the pencil to our double digit return framework.

Again, thanks for all yes, I'd say, yes.

Yeah.

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

Steven Thank you hi, good morning, everybody.

Stephen Gingaro: So two for me, one is a clarification. When you say that at the asset level, the chargers are profitable, do you mean, like all in costs? Like, please give us a call. What exactly do you mean when you say that they are profitable at the asset level?

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

That level the Chargers are profitable.

Do you mean like all in costs.

Just give us color on what exactly when you say profitable asset level mhm.

Olga Shevorenkova: Yeah, we do mean all-inclusive cost. And when we say all-inclusive, 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 teams, call center, and then on top of it, 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 others.

Yeah, well do them in all in costs and I would say all in it's it's all in and more so it's all of us at older direct costs like energy maintenance property taxes around third party I T charges asset management customer operations teams it's co.

Center is.

And then on top of it but allocate a portion of other teams which are.

Involved in sustaining operations in that book, such as marketing analytics software and hardware and a couple of others. So it's a 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 grow them.

Olga Shevorenkova: 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, so 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.

So it is a it is a very unconscious a number and a pretty robust number one would say that it is positive.

Stephen Gingaro: 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.

Great.

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

When we think about when you guys think about internally.

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

Access the fast charging without having to wait I would think that that was a test drive reinsured up but a charging station and I have to wait for a Ford I'd be upset.

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.

Badar Khan: 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.

Yeah. That's a great question I mean, I think we think this.

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

We will contribute to lowering things society for customers in the purchase decision, making process for individual customers.

And I think Thats, a good savings for EV adoption.

Obviously for our business with.

With respect to customers utilizing test this network and again, we're talking about model year 2026, that's when the vast majority of Oems will have.

Thats, what were expecting that and exports available on their cars to be able to use for their network 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 if there's congestion at Tesla sites for us to be picking up the additional volume. Yeah. And that's helpful.

I think that if that results in congestion.

Tesla sites, then clearly we would expect to benefit from that so we were expecting to see.

Range anxiety being addressed.

The purchase decision points for customers and we're expecting if there is congestion at Tesla sides for us to be picking up additional volume.

Stephen Gingaro: 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? We take into consideration, Stephen, you know, 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, location of other chargers. You know, we're right now 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, we take very much into consideration all of that. Great, excellent. Thank you for all the color.

And that's helpful and just a quick follow up to that one.

When you think about your your detailed analysis of site planning, yes is that starting to become a part of the algorithm.

When you take into consideration Steven a whole host of things as I talked about in our prepared remarks, so forecast sales density neighborhoods multifamily housing rideshare.

But also of course location of other Chargers.

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

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

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

Great excellent. Thank you for all the color.

Your next question comes from the line of Craig Irwin from Roth <unk>. Your line is open hi, Greg.

Craig Irwin: Thank you. Most of my questions have been answered, but there's, 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 are we seeing this acceleration and how sustainable it's likely to be this year? Yeah, we look. I think we all read the same things in the papers.

Great.

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

Youre acceleration that you saw in the OEM charging and commercial charging kind.

Counterintuitive with some of the things going on out there there's some.

Rental companies are reducing the size of their fleets and.

A bunch of announcements that sort of suggest that might have gone the other way can.

Can you can you connect for us sort of whats going right for you to 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.

Badar Khan: 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've said in our remarks here and we've said in the prior call, we're seeing a very significant increase in. 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, So there are some factors here that I think are quite compelling.

The papers.

We can clearly see that.

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 are.

<unk> materials.

We are.

Also seeing in 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.

So 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 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 Uber for 100% of their rideshare drivers to be driving electric vehicles by 2030.

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

Craig Irwin: 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. So January sales from what I see for battery electric vehicles continue to go higher year over year and I think that's also a positive for us.

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

Reports.

Using rideshare services that people.

Our switching and that they do it for economics, but you know.

Can you maybe sketch out for us.

What's 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.

Badar Khan: I think that we expect that rideshare customers, as they look at their costs, like rideshare drivers, I'm sorry, but I think it'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 an ICE 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.

We expect that rideshare customers.

As they look at their costs like rideshare drivers I'm, sorry, I think as your question as they look at their costs. 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.

Perhaps dig into that in a future date.

Great well congrats on the 60 megawatt hour throughput and it's a pretty pretty chunky number big milestone.

Craig Irwin: 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, 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 of 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 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 easy go 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 what we think is clearly working.

And with a very strong throughput and utilization.

Is now far outpacing the growth of Evs and our own store growth.

The key inflection point, where our installed base is now profitable on a standalone basis.

Our focus on customer experience, some blind combined with disciplined investment.

Badar Khan: 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.

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. This call. Thank you for your participation you may now disconnect.

Yeah.