Q3 2024 EVgo Inc Earnings Call

Thank you for someone to buy my name is Janine and I will be your lead operator for today's call. At this time I would like to welcome everyone to the E. V. Go Q3, 'twenty 'twenty four earnings call all lines have been placed on mute to prevent any background noise.

After todays presentation, there will be an opportunity to ask questions.

I'll ask a question. Please press star followed by the number one on your Touchtone phone.

Operator: I would now like to turn the conference over to Heather Davis, Vice President of Investor Relations. Please go ahead.

Speaker Change: To withdraw your question. Please press star followed by the number one again I would now like to turn the conference over to Heather Davis.

Heather Davis: Vice President of Investor Relations. Please go ahead.

Heather Davis: Good morning. Welcome to EVgo's Q3 2024 earnings call. My name is Heather Davis, and I'm the Vice President of Investor Relations at EVgo. Joining me on today's call are Badar Khan, EVgo's Chief Executive Officer, and Paul Dobson, EVgo's Chief Financial Officer. Our EVP of Finance and Accounting, Stephanie Lee, will join us for the question and answer portion of the call. Today, we will be discussing EVgo's Q3 financial results and our updated outlook for 2024, followed by a Q&A session. Today's call is being webcast and can be accessed on the investor section of our website at investors.evgo.com. The call will be archived and available there, along with the company's earnings release and investor presentation after the conclusion of this call. During the call, management will be making forward-looking statements that are subject to risks and uncertainties, including expectations about future performance.

Heather Davis: Good morning, and welcome to <unk> third quarter 2024 earnings call. My name is Heather Davis and I'm, The Vice President of Investor Relations at E V go.

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

Heather Davis: Chief Executive Officer, and Paul Dobson E V go Chief Financial Officer.

Heather Davis: Our EVP of finance and accounting, Stephanie Lee will join US for the question and answer portion of the call.

Heather Davis: Today, we will be discussing even goes third quarter financial results and our updated outlook for 2024, followed by a Q&A session.

Heather Davis: Today's call is being webcast and can be accessed on the investors section of our website at investors <unk>.

Heather Davis: E V go Dot com.

Heather Davis: 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.

Heather Davis: 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 investor section of our website. These forward-looking statements apply as of today, and we undertake no obligation to update these statements after the call. Also, please note that we will be referring to certain non-GAAP financial measures on the 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's CEO.

Heather Davis: 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.

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

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

Heather Davis: Also please note that we will be referring to certain non-GAAP financial measures on the call.

Heather Davis: Information about these non-GAAP measures, including a reconciliation to the corresponding GAAP measures can be found in the earnings material available on the Investor section of our website.

With that I'll turn the call over to about our Con <unk> CEO.

Badar Khan: Good morning, everyone, thank you for joining us today. I want to take a moment to welcome Paul Dobson. Paul joined as our CFO at the beginning of October after a fulsome search. I've enjoyed partnering with him over the last six weeks at EVgo, and I know investors and analysts alike will appreciate his knowledge, strategic perspective, and stewardship of capital. I also want to address the outcome of the elections last week. In summary, we see little to no impact on our business relative to the illustrative targets that we've previously communicated of $200 million in adjusted EBITDA in three to five years' time. Our largest states outside California in terms of throughput and some of the fastest-growing states of material size remain Texas, Florida, and Arizona.

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

To take a moment to welcome Paul Dobson, who joined as our CFO at the beginning of October after a fulsome search.

Heather Davis: Partnering with him over the last six weeks at <unk>, and I know investors and analysts alike will appreciate his knowledge and strategic perspective and stewardship of capital.

Heather Davis: I also want to address the outcome of the elections last week in summary, we see little to no impact on our business relative to the illustrative targets that we've previously communicated $200 million and adjusted EBITDA is three to five years' time.

Heather Davis: Our largest states outside California in terms of throughput and some of the fastest growing states of material size remained Texas, Florida and Arizona.

Badar Khan: We now have operational stalls in 40 states, all of which are seeing strong growth in throughput, which suggests to us that EV adoption is occurring throughout the United States. The current administration has had two primary programs to provide funding for charging infrastructure. The $5 billion NEVI program focused on highways funded by the bipartisan IIJA, and the 30C tax credit from the IRA. Of the NEVI funds deployed to date, the majority of these funds have been deployed in states that supported President-elect Trump. On the IRA, as has been widely reported, red states have been major beneficiaries of the investments coming out of the IRA more broadly. 30C is a technology neutral tax credit supporting a range of alternative fuel vehicle refueling properties, including electric vehicles, hydrogen, natural gas, and biofuels, and has historically enjoyed bipartisan support in Congress.

Heather Davis: We now have operational stores in 40 states all of which are seeing strong growth in throughput, which suggests to us that EV adoption is occurring throughout the United States.

Speaker Change: The Carter administration has had two primary programs to provide funding for charging infrastructure. The $5 billion Navy program focused on highways funded by the bipartisan.

Speaker Change: The <unk> tax credit from the IRS.

Speaker Change: The Navy funds deployed to date the majority of these funds have been deployed in states that supported president elect Trump on.

Speaker Change: On the IAA as it's been.

Speaker Change: Widely reported Red States have been major beneficiaries of the investments coming out of the IRS more broadly.

Speaker Change: <unk> C is a technology neutral tax credit supporting a range of alternative fuel vehicle refueling properties, including electric vehicles hydrogen natural gas and Biofuels and has historically enjoyed bipartisan support in Congress.

Badar Khan: The cost of the 30C tax credit is quite small and is estimated to represent between 0.1% and 0.2% of the total cost of the IRA energy provisions. We believe it is unlikely 30C will be a priority issue for the incoming administration. Either way, we are focused on building a business that is not reliant on federal incentives. Federal incentives, including 30C and NEVI, represent approximately 10% of our full year 2024 gross CapEx. The next generation charging architecture that we're co-developing with Delta Electronics that we announced in October, and we have discussed in prior earnings calls, is targeting at least a 30% reduction in gross CapEx per stall. Finally, the EV market in the US is at a tipping point, moving from early adopters to the mass market, driven by the introduction of more affordable vehicles.

Speaker Change: The cost of the <unk> tax credit is quite small and is estimated to represent between 0.1 and 0.2% of the total cost of the IRI energy provisions. Therefore, we believe it is unlikely 30 C will be a priority issue for the incoming administration.

Either way, we are focused on building a business that is not relying on federal incentives federal incentives, including 30 C. A nervy represent approximately 10% of our full year 2024 gross capex.

Speaker Change: Next generation charge, an architecture that we're co developing with Delta electronics that we announced in October and we've discussed in prior earnings calls is targeting at least a 30% reduction in gross capex per store.

Speaker Change: Finally, the EV market in the U S is at a tipping point moving from early adopters to the mass market driven by the introduction of more affordable vehicles. Therefore, any reduction in the size or availability of EV incentives for new or used buyers are likely mitigated by the fact that the evs themselves are becoming more.

Badar Khan: Any reduction in the size or availability of EV incentives for new or used buyers are likely mitigated by the fact that the EVs themselves are becoming more affordable. As you all know, after more than a year of joint effort, we were thrilled to have announced last month a conditional commitment for a loan guarantee of up to $1.05 billion from the U.S. Department of Energy Loan Programs Office under their Title 17 Clean Energy Financing Program. If finalized, this low-cost financing will enable EVgo to accelerate our fast charging stall deployment across the United States, bringing critical public charging infrastructure to more EV drivers. Specifically, drivers living in multi-family housing and others who rely on public charging stand to benefit the most from this build-out, which in turn should accelerate the adoption of electric vehicles and reduce emissions from transportation.

Speaker Change: More affordable.

Speaker Change: As you all know after more than a year of joint effort. We were thrilled to have announced last month, a conditional commitment for a loan guarantee of up to $1.05 billion.

Speaker Change: In the U S Department of Energy loan program office under their titled 17, Clean Energy financing program.

Speaker Change: If finalized this low cost financing will enable <unk> to accelerate our fast charging stall deployment across the United States, bringing critical public charging infrastructure to more EV drivers, specifically drivers living in multifamily housing and others, who rely on public charging stand to benefit the most from this.

Speaker Change: Build out which in turn should accelerate the adoption of electric vehicles and reduce emissions from transportation.

Badar Khan: We expect to build approximately 7,500 high-power charging stalls across 30 states over the next 5 years, which translates to an average of 1,500 stalls per year. It will take a little time to get to that run rate. By the end of the five-year period, we will be more than double our current rate of stall growth with the DOE loan. Over 40% of these new stalls are expected to be in marginalized areas that have been overburdened by environmental impacts, aligned with the administration's Justice40 initiative. Given that over 50% of the stalls we're deploying in 2024 are in rural or low-income communities eligible for 30C funding, I expect no change in the unit economics and growth in daily throughput per stall we've previously shared, other than benefiting from even larger scale.

We expect to build approximately 7500 high power charging stores across 30 states over the next five years, which translates to an average of 1500 stores per year, although it will take a little time to get to that run rate. So by the end of the five year period, we will be more than double our current rate of store growth with the <unk>.

Speaker Change: Hello.

Speaker Change: Over 40% of these new stores are expected to begin marginalized areas that have been overburdened by environmental impacts aligned with the administration's Justice 40 initiatives.

Speaker Change: Given that over 50% of the stores. We're deploying in 2024 are in rural or low income communities eligible for 30 <unk> funding I expect no change in the unit economics and growth in daily throughput per store. We've previously shared other than benefiting from even larger scale.

Badar Khan: Following receiving this conditional commitment, we are now focused on fulfilling the conditions necessary to close the loan. We do not expect a lengthy process to close the loan. As we said before, the company will not need to raise public equity. Additionally, this loan is not financing a single large mega site that may have lengthy environmental or permitting issues. A potential accelerated build-out bolstered by DOE financing would allow us to increase our current $200 million adjusted EBITDA target in three to five years because of a much higher growth rate and increased leverage of fixed costs over a higher number of stalls. We anticipate hosting a webinar update if we are successful in closing the loan, where I envision EVgo sharing further details about the loan, an updated build schedule, unit economics, and a long-term profitability target.

Speaker Change: Following receiving this conditional commitment we're now focused on fulfilling the conditions necessary to close the loan we do not expect a lengthy process to close the loan as we've said before the company will not need to raise public equity. Additionally, this load is not financing a single large mega site that may have lengthy environmental or <unk>.

<unk> issues.

Speaker Change: A potential accelerated buildout bolstered by refinancing would allow us to increase our current $200 million adjusted EBITDA target of three to five years because of a much higher growth rate and increased leverage of fixed costs over a higher number of stores, we anticipate hosting a webinar update if were successful in closing alone Brian.

Speaker Change: Vision, even go sharing further details about the loan and updated build schedule unit economics under long term profitability targets.

Badar Khan: This is a major strategic milestone towards our goal of providing the company with ongoing financing that eventually will more than double our annual rate of stall growth, does not dilute existing shareholders, and lowers our cost of capital. Let's look at some key operating highlights from this past quarter. The business model of owning and operating a DC fast charging network is proving to be the leader in the charging industry. Our results speak for themselves. We achieved another record quarter of revenues of $68 million and throughput, or the energy dispensed in our network, more than doubled year-over-year for the seventh consecutive quarter. There is a clear path to profitability and achieving our goal of adjusted EBITDA breakeven in 2025. Charging network revenue nearly doubled. We grew operational stalls by 34% and are on track to add over 800 new owned and operated stalls this year.

Speaker Change: This is a major strategic milestone towards our goal of providing the company with ongoing financing that eventually will more than double our annual rate of store growth does not dilute existing shareholders and lowers our cost of capital.

Speaker Change: Let's look at some key operating highlights from this past quarter.

Speaker Change: The business model of owning and operating a DC fast charging network has proven to be the leader in the charging industry. Our results speak for themselves. We achieved another record quarter of revenues of $68 million and throughput or the energy expense to our network more than doubled year over year for the seventh consecutive quarter.

Speaker Change: There is a clear path to profitability and achieving our goal of adjusted EBITDA breakeven in 2025.

Speaker Change: <unk> network revenue nearly doubled we grew operational stores by 34% and they're on track to add over 800, new owned and operated stores this year.

Badar Khan: We opened an EVgo station in our 40th state. Customer accounts increased nearly 60%, and we now have over 1.2 million EVgo customer accounts. Adjusted EBITDA loss improved, demonstrating the operating leverage in gross margin and adjusted G&A. Given our strong financial and operational performance and continued strength in our charging network revenues, we are raising the midpoint of guidance for both revenue and adjusted EBITDA for 2024. There are many exciting new EV models for drivers to choose from in the US, including the Chevrolet Blazer EV and the Chevrolet Silverado EV. Sales of non-Tesla EVs continued to outpace Tesla sales in the quarter, while both segments grew compared to the prior year. Non-Tesla sales were up 18% year over year and make up the majority of throughput on EVgo's network today.

Speaker Change: And we opened <unk> station in our 40% stake custom.

Speaker Change: Customer accounts increased nearly 60% and we now have over $1 2 million E V go customer accounts.

Speaker Change: Adjusted EBITDA loss improved demonstrating the operating leverage in gross margin and adjusted G&A.

Speaker Change: Given our strong financial and operational performance and continued strength in our charging network revenues, we are raising the midpoint of guidance for both revenue and adjusted EBITDA for 2024.

Speaker Change: There are many exciting new EV models for drivers to choose from in the U S, including the Chevy Blazer, EV and the Chevy Silverado EV and sales of non Tesla Evs continue to outpace Tesla sales in the quarter, while both segments grew compared to the prior year.

Speaker Change: Non Tesla sales were up 18% year over year and make up the majority of throughput on <unk> network today.

Badar Khan: Uber recently shared that drivers on its network in the US, Canada, and Europe are adopting EVs 5 times faster than the average driver. Uber Green, their electric and hybrid ride option, is available in over 200 cities globally. Our partnerships with rideshare companies are really important because when rideshare drivers switch to electric, they're going to be charging at DCFC stations to get back on the road as quickly as possible. The growth in new vehicle sales drives ever higher electric vehicles on the road, with a growth rate that has and will continue to exceed the growth in supply of DC fast charging, benefiting owner-operators of DC fast charging networks like EVgo. In 2020, there was one public fast charging stall for roughly every 60 EVs in operation.

Speaker Change: Hoover recently shared that drivers on its network in the U S, Canada and Europe are adopting evs five times faster than the average driver and Uber Green their electric and hybrid REIT option is available in over 200 cities globally. Our partnerships with rideshare companies are really important because when rideshare drivers switch to electric.

Speaker Change: They are going to be charging a DCF C stations to get back on the road as quickly as possible.

Speaker Change: The growth in new vehicle sales drives ever higher electric vehicles on the road with a growth rate that has and will continue to exceed the growth in supply of DC fast charging benefiting owner operators of DC fast charging networks like <unk>.

In 2020, there was one public fast charging stall for roughly every 60 evs in operation as.

Badar Khan: As the growth in EV VIO has exceeded the growth in the public fast charging network, this ratio was just under 90 at the end of last year and expected to grow to nearly 180 EVs to DC fast charging stalls by 2030. This assumes the build-out of over 135,000 stalls over the next six years, which itself seems aggressive given the current pace of deployments from all charging providers would have to triple to reach the 2030 estimates. Compared to other countries where EV adoption is further in the maturity curve, you see much lower ratios. Globally, the average is 30, and China was 17 at the end of 2023.

Speaker Change: As the growth in <unk> has exceeded the growth in the public fast charging network. This ratio was just under 90 at the end of last year and expected to grow to nearly 180 evs to DC fast charging stores by 2030.

Speaker Change: This assumes the build out of over 135000 stores over the next six years, which itself seems aggressive given the current pace of deployments from all charging providers would have to triple to reach to 2030 estimates compared to other countries, where EV adoption is further in the maturity curve you see much lower.

Speaker Change: Those globally the averages 30 in China was <unk> 17 at the end of 2023 EBIT.

Badar Khan: Even if you did believe the charging sector was able to triple the number of deployments over the rest of the decade, you'd need to see the forecast for EV VIO to be around 40% lower than the 32 million number before the ratio falls below where we are today. If the charging industry were unable to grow the pace of deployments at all, VIO in 2030 would need to be around only nine million vehicles before the ratio is less than today, which implies about a 40% reduction in the absolute annual growth of EVs than we are currently experiencing. In other words, if the charging industry continues to build at the pace it is today, the annual growth in EV VIO would have to be less than 40% of what it currently is before we face any pressure on utilization levels we're seeing today.

Speaker Change: Even if you did believe the charging sector was able to triple the number of deployments over the rest of the decade you'd need to see the forecast for <unk> to be around 40% lower than the $32 million number for the ratio falls below where we are today.

Speaker Change: And that the charging industry, what unable to grow the pace of deployments at all vio in 2030 would need to be around only 9 million vehicles before the ratio is less than today, which implies about a 40% reduction in the absolute annual growth of Evs than we are currently experiencing in other words if the.

Speaker Change: Charging industry continues to build at the pace. It is today the annual growth in EV vio would have to be less than 40% of what it currently is before we faced any pressure on utilization levels, we're seeing today.

Badar Khan: We are clearly already seeing the benefit of this supply-demand dynamic through rising utilization rates on our owned and operated network, and that trend is set to continue for the foreseeable future in practically any conceivable scenario. Rideshare electrification, more affordable vehicles attracting more customers without at-home charging and thus reliant on public charging, autonomous vehicles, and cable standardization that we've discussed at length in the past are trends that benefit owner-operator networks on top of this core supply-demand imbalance. Let's now turn to progress on our four key priorities in 2024: improving the customer experience, operating and CapEx efficiencies, capturing and retaining high-value customers, and securing financing to get to free cash flow breakeven. As always, improving the customer experience remains our number one priority, and we have great news to report this quarter.

Speaker Change: We are clearly already seeing the benefit of this supply demand dynamic to rising utilization rates on our owned and operated network and that trend is set to continue for the foreseeable future and practically any conceivable scenario right.

Speaker Change: Rideshare electrification more affordable vehicles, attracting more customers without at home charging industrial lines on public charging autonomous vehicles and cable standardization that we've discussed at length in the past our trends that benefit owner operator networks on top of this core supply demand.

Speaker Change: <unk>.

Speaker Change: Let's now turn to progress on our four key priorities in 2020 for improving the customer experience operating and capex efficiencies, capturing and retaining high value customers and securing financing to get to free cash flow breakeven.

Speaker Change: As always improving the customer experience remains our number one priority and we have great news to report this quarter.

Badar Khan: Customers want a charger to be available when they pull up to an EVgo station, and we are deploying larger sites where our standard configuration is now 6 to 8 stalls per site. At the end of Q3, 18% of our sites have 6 stalls or more. With our deployments during Q3, 45% of EVgo stalls are our high-power 350 kilowatt chargers compared to 29% a year ago. Autocharge+ continues to gain traction. 21% of our sessions are initiated by the seamless plug-and-charge experience. In September, we began auto-enrollment with all OEMs that have Autocharge+ enabled, and by further simplifying the sign-up process, we are seeing great momentum with our customers. Our customer success metric, or "One and Done," increased 5 percentage points this quarter versus last year, with 95% of sessions resulting in a successful charge on the first try.

Speaker Change: One charger to be available when they pull up to a <unk> station and we are deploying larger sites, where a standard configuration as announced six to eight stores per site.

Speaker Change: At the end of Q3, 18% of our sites are six stores or more.

Speaker Change: With our deployments during the third quarter, 45% of <unk> stores are our high power 350, kilowatt chargers compared to 29% a year ago.

Speaker Change: Auto charge plus continues to gain traction 21% of our sessions are initiated by the seamless plug in charge experience in September we began auto enrollment with all Oems that have oil charge plus enabled and by further simplifying the sign up process, we are seeing great momentum with our customers.

Speaker Change: Our customer success metrics or one and done increased five percentage points this quarter versus last year with 95% of sessions, resulting in a successful charge on the first try.

Badar Khan: In September, we announced that we had agreed to another amendment to our long-standing partnership with GM to build what we're calling flagship sites that take the customer experience to the next level. These sites will feature up to 20 or more stalls and many of the amenities today's EV drivers want: fast, convenient, reliable stalls with our 350 kilowatt chargers, pull-through access, canopies, lighting, and security cameras. Flagships are planned in metro areas coast to coast in states such as Arizona, California, Florida, Georgia, Michigan, New York, and Texas. Like other EVgo stations, flagship sites will be near a diverse set of amenities, creating critical charging hubs to serve the expanding number of EVs on the roads. This amendment reflects both of our companies' focus on enhancing the customer experience as well as our commitment to our partnership with each other.

Speaker Change: In September we announced that we had agreed to another amendment to our longstanding partnership with GM to build what we're calling flagship sites or take the customer experience to the next level. These sites will feature up to 20 or more stores and many of the amenities today's EV drivers want fast convenient reliable stalls with our 350 kilowatt.

Speaker Change: Chargers pull through access canopies lighting and security cameras flagships are planned in metro areas coast to coast States, such as Arizona, California, Florida, Georgia, Michigan, New York and Texas.

Speaker Change: Like other <unk> stations flagship sites will be near a diverse set of amenities, creating critical charging hubs to serve the expanding number of evs on the roads.

Speaker Change: This amendment reflects both of our companies focus on enhancing the customer experience as well as our commitment to our partnership with each other.

Badar Khan: We've also made great progress on driving efficiencies both in the short term and the long term this quarter. I've previously spoken about the next generation of charging equipment that EVgo is planning. In early October, we announced we signed a memorandum of understanding with Delta Electronics to co-develop state-of-the-art 400 kilowatt fast chargers, bringing together EVgo's extensive understanding of customer pain points from serving over 1 million customers with Delta's global leadership in power electronics. This new charging architecture is focused on improving the customer experience while also reducing CapEx by approximately 30%. We expect to deploy this architecture in H2 2026.

Speaker Change: We've also made great progress on driving efficiencies both in the short term and long term this quarter I've previously spoken about the next generation of charging equipment that <unk> is planning in early October we announced we signed a memorandum of understanding with Delta electronics to co develop a state of the art 400 kilowatt fast Chargers, bringing together.

Speaker Change: Other EV goes extensive understanding of customer pain points from serving over 1 million customers with Delta's global leadership in power electronics. This new charging architecture is focused on improving the customer experience, while also reducing capex by approximately 30%.

Speaker Change: We expect to deploy this architecture in the second half of 2026.

Badar Khan: For our current charging equipment, we've delivered a 6% improvement in gross CapEx for our 2024 builds compared to the original $160,000 we estimated at the beginning of the year. The first sites built with our prefabricated skids are operational and yield saving in build cost and construction timelines. We expect around 40% of our 2025 deployments will utilize prefabricated skids. On operating expenses, we've reduced our sustaining G&A per stall by 15% year to date. We also continue to make great progress on our growth priority. 56% of EVgo's throughput is coming from rideshare, OEM charging credit, and subscription accounts in Q3. This provides EVgo with a relatively predictable baseload level of demand on our network. New customer accounts in Q3 totaled over 147,000, a record number, and grew 39% compared to Q3 of last year.

Speaker Change: For our current charging equipment, we've delivered a 6% improvement in gross Capex for 2024 bills compared to the original $160000. We estimated at the beginning of the year.

Speaker Change: The first sites built with our pre fabricated skids are operational and youll saving and build cost and construction timelines, we expect around 40% of our 2025 deployments will utilize pre fabricated skids.

Speaker Change: On operating expenses, we've reduced our sustaining G&A per store by 15% year to date.

Speaker Change: We also continue to make great progress on our growth priority, 56% of EV goes throughput is coming from rideshare OEM charge in credit and subscription accounts in Q3.

Speaker Change: This provides <unk> with a relatively predictable baseload level of demand on our network.

Speaker Change: New customer accounts in the third quarter totaled over 147000, a record number and grew 39% compared to the third quarter of last year, we're driving customer acquisition through a variety of paid and organic channels, which is turbocharging our growth in retail throughput.

Badar Khan: We're driving customer acquisition through a variety of paid and organic channels, which is turbocharging our growth in retail throughput. Our dynamic pricing pilot that I've talked about on prior calls has now been rolled out to 20% of our network. We'll continue to iterate on our pricing models in the future as we gain insights into driver behavior and incentives. On financing, as previously mentioned, EVgo announced we received a conditional commitment from the DOE LPO for a loan guarantee of up to $1.05 billion to build approximately 7,500 stalls over five years. We are working closely with the DOE, and if approved, we expect to be able to share further details on the loan after loan closing. EVgo completed the sale of our 30C income tax credits for our 2023 vintage stalls in Q3.

Speaker Change: And our dynamic pricing pilot that I talked about on prior calls has now been rolled out to 20% of our network will continue to iterate on our pricing models in the future as we gain insights into driver behavior and incentives.

Speaker Change: And on financing as previously mentioned <unk> announced we received a conditional commitment from the Doe L. P. O for a loan guarantee of up to 105 billion to build approximately seven 5000 stores over five years.

Speaker Change: Working closely with the Doe and if approved we expect to be able to share further details on our loan after loan closing.

Speaker Change: <unk> completed the sale of our 30 <unk> income tax credits for 2023 vintage stalls in the third quarter. We believe we were one of the few companies able to transact before the tax filing deadline.

Badar Khan: We believe we were one of the few companies able to transact before the tax filing deadline. Gross proceeds from the sale were $11 million. Finally, we continue to evaluate additional non-dilutive financing opportunities that would help fund our growth further beyond the potential DOE loan. I'd like to now introduce you to Paul Dobson, EVgo's CFO, and Paul will cover our strong financial performance in Q3 and outlook for the remainder of 2024.

Gross proceeds from the sale were $11 million.

Speaker Change: Finally, we continue to evaluate additional non dilutive financing opportunities that would help fund our growth.

Speaker Change: Further beyond the potential Doe loan.

Speaker Change: I'd like to now introduce you to Paul Dobson, <unk>, CFO and Paul will cover our strong financial performance in the third quarter and outlook for the remainder of 2024.

Paul Dobson: Thank you, Badar. EVgo continues its strong momentum and delivered yet another solid quarter, exhibiting the eighth sequential quarter of double-digit charging revenue growth and the seventh consecutive quarter of triple-digit year-over-year throughput growth. Revenue in Q3 was $67.5 million, which represents 92% year-over-year increase. This growth was primarily driven by increased charging network and eXtend revenues. Total charging network revenues of $43.1 million grew from $21.8 million in Q3 2023, exhibiting a 98% year-over-year increase, with retail, commercial, and OEM charging revenue, each individually at least doubling over the prior year period. eXtend revenues of $21.9 million increased from $10.5 million in the prior year, delivering growth of 109%. We added 270 new operational stalls in Q3, including eXtend, a record number of stalls added in the quarter for EVgo.

Paul Dobson: Thank you Peter.

Paul Dobson: <unk> continues its strong momentum and delivered yet another solid quarter exhibiting the eighth sequential quarter of double digit charging revenue growth and the seventh consecutive quarter of triple digit year over year throughput growth.

Speaker Change: Revenue in the third quarter was $67 5 million, which represents 92% year over year increase this growth was primarily driven by increased charging network and extend revenues total.

Total charging network revenues of $43 1 million grew from $21 $8 million in the third quarter of 2023.

Speaker Change: Exhibiting a 98% year over year increase with retail commercial and OEM charging revenue each individually at least doubling over the prior year period.

Speaker Change: And extend revenues of $21 9 million increase from $10 5 million in the prior year delivering growth of 109%.

Speaker Change: We added 270, new operational installed in Q3, including extend a record number of stores added in the quarter Vigo.

Paul Dobson: Total stalls in operation were approximately 3,680 at the end of September 2024, including 290 EVgo eXtend stalls, increasing 34% from the end of September 2023. During Q3 2024, EVgo added over 147,000 new customer accounts. EVgo ended the quarter with more than 1.2 million customer accounts, an impressive 57% increase versus the end of September 2023. During Q3 2024, network throughput more than doubled from last year to 78 GWh. EVgo's network throughput growth continues to outpace EV VIO growth. As Badar mentioned earlier, with EV VIO expected to increase faster than the supply of DC fast chargers, we anticipate demand and utilization on the EVgo network will continue to increase. In Q3, network utilization increased to 22%, up from 14% a year ago.

Speaker Change: Total stores in operation were approximately 3680 at the end of September 2024, including 290 <unk> extend stones.

Speaker Change: Greasing, 34% from the end of September 2023.

Speaker Change: During the third quarter of 2024, <unk> added over 147000, new customer accounts <unk> ended the quarter with more than $1 2 million customer accounts, an impressive 57% increase versus the end of September 2023.

Speaker Change: During the third quarter of 2024 network throughput more than doubled from last year to 78 gigawatt hours.

Speaker Change: <unk> network throughput growth continues to outpace <unk> growth and as Bob mentioned earlier with <unk> expected to increase faster than the supply of DC fast Chargers, we anticipate demand and utilization on the <unk> network will continue to increase.

Speaker Change: In the third quarter network utilization increased to 22% up from 14% a year ago.

Paul Dobson: Unpacking this a bit more, 59% of our stalls had utilization greater than 15%, 47% of our stalls had utilization greater than 20%, and 28% of our stalls had utilization greater than 30%. One of the key drivers of the unit economics we previously illustrated is the average daily throughput per stall, which measures how much electricity each charger is dispensing and is calculated by taking the time-based utilization percentage times the charge rate times 24 hours. Average daily throughput per stall was 254 kilowatt-hours per day, an increase of 64% when compared to Q3 2023. Performance of the entire network is moving to the right. In the top 15%, average daily throughput per stall is now 582 kilowatt-hours per day, demonstrating that our target of 450 kilowatt-hours in three to five years is achievable.

Speaker Change: Unpacking this a bit more 59% of our stores had utilization greater than 15%.

Speaker Change: 47% of our stalls had utilization greater than 20% and 28% of our stalls had utilization greater than 30%.

Speaker Change: One of the key drivers of the unit economics, we previously illustrated as the average daily throughput per stone, which measures how much electricity. Each charter is dispensing and is calculated by taking the time based utilization percentage times the charge rate times 24 hours average daily throughput per store was 254.

Speaker Change: Kilowatt hours per day, an increase of 64% when compared to Q3 2023.

Speaker Change: Performance of the entire network is moving to the right and the top 15% average daily throughput per store is now 582 kilowatt hour per day, demonstrating that our target of 450 kilowatt hours and three to five years is achievable.

Paul Dobson: The profitability that our core owned and operated network delivers is improving, which is demonstrated through the growth of our charging network margin. EVgo continues to make strides in improving the profitability of our owned and operated charging network through efficiencies and leverage. In Q3, our charging network margin was 32.9%, improving from 28.6% in Q3 2023. As a reminder, there is seasonality in our charging network margin, as summer electricity tariffs are higher than winter tariffs. As I mentioned earlier, revenue grew 92% in Q3 2024 to a record $67.5 million. Adjusted gross profit was $18 million in Q3 2024, up from $9.3 million in Q3 2023. Adjusted gross margin was 26.6% in Q3 2024, an increase of 20 basis points compared to Q3 of last year.

Speaker Change: The profitability that our core owned and operated network delivers is improving which is demonstrated through the growth of our charging network margin.

Speaker Change: <unk> continues to make strides in improving the profitability of our owned and operated charging network through efficiencies and leverage.

Speaker Change: In Q3 are charging network gross margin was 32, 9% improving from 28, 6% in Q3 2023.

Speaker Change: As a reminder, there is seasonality in our charging network margin a summer electricity tariffs are higher and winter tariffs.

Speaker Change: As I mentioned earlier revenue grew 92% in the third quarter of 2024 to a record $67 5 million.

Speaker Change: Adjusted gross profit was $18 million in the third quarter of 2024 up from $9 3 million in the third quarter of 2023.

Speaker Change: Adjusted gross margin was 26, 6% in the third quarter of 2024, an increase of 20 basis points compared to the third quarter last year.

Paul Dobson: Adjusted G&A as a percentage of revenue also improved from 67.1% in Q3 2023 to 39.8% in Q3 2024, demonstrating the operating leverage effect. Adjusted EBITDA was -$8.9 million in Q3 2024, a $5.4 million improvement versus -$14.2 million in Q3 2023. Cash equivalents and restricted cash was $153.4 million as of 30 September 2024. We generated cash from operations of $12.1 million in Q3 2024, which is the second consecutive quarter that we generated positive cash from operations. This is due primarily to the net cash received from the sale of 30C income tax credits, combined with the timing of other working capital changes. Capital expenditures were $25.8 million in Q3 2024. Capital expenditures net of capital offsets was $5.2 million in Q3 2024.

Speaker Change: Adjusted G&A as a percentage of revenue also improved from 67, 1% in the third quarter of 2023 to 39, 8% in Q3 of this year demonstrating the operating leverage effect.

Speaker Change: Adjusted EBITDA was negative $8 9 million in the third quarter of 2024 of $5 4 million improvement versus negative $14 2 million in the third quarter of 2023.

Speaker Change: Cash cash equivalents and restricted cash was $153 4 million as of September 32024.

Speaker Change: We generated cash from operations of $12 1 million in the third quarter of 2024, which is the second consecutive quarter that we generated positive cash from operations.

Speaker Change: This was due primarily to the net cash received from the sale of 30 <unk> income tax credits combined with the timing of other working capital changes.

Speaker Change: Capital expenditures were $25 8 million in the third quarter of 2020 for capital expenditures net of capital offsets was $5 2 million in Q3 of 2024.

Paul Dobson: We received $10 million in net proceeds from the sale of our 30C income tax credits for 2023 vintage stalls in the quarter. Given the timing, we estimate an additional $1 million in transaction costs associated with the sale will be recognized in Q4. Now turning to our 2024 guidance. EVgo is increasing the midpoint of our 2024 revenue guidance by $2.5 million due to continued strength in our charging network revenues, and we expect full year 2024 revenue to be in the range of $250 million to $265 million. We expect to see quarterly seasonal growth in charging network revenue in Q4. eXtend revenue, which is currently primarily comprised of construction revenue, is expected to decrease in Q4 compared to Q3 due to timing of construction projects.

Speaker Change: We received $10 million in net proceeds from the sale of our <unk> income tax credits for 2023 vintage stalls in the quarter.

Speaker Change: Given the timing, we estimate an additional $1 million in transaction costs associated with the sale will be recognized in the fourth quarter.

Speaker Change: Now turning to our 2020 for guidance.

Speaker Change: <unk> is increasing the midpoint of our 2020 for revenue guidance by $2 5 million due to continued strength in our charging network revenues and we expect full year 2020 for revenue to be in the range of 250 million to $265 million we.

Speaker Change: We expect to see quarterly seasonal growth in charging network revenue in the fourth quarter.

Speaker Change: Extend revenue, which is currently primarily comprised of construction revenue is expected to decrease in the fourth quarter compared to the third quarter due to timing of construction projects.

Paul Dobson: We are increasing the midpoint of our 2024 adjusted EBITDA guidance by $4 million, and we expect full year 2024 adjusted EBITDA to be in the range of -$38 to 32 million. The increase in our adjusted EBITDA midpoint reflects continued improvements in charging network gross margins resulting from increased revenues and lower energy costs. We expect to continue to make increased investments in the joint development of our next generation architecture, as well as our financial systems to support project financing in Q4. We expect full year capital expenditures net of capital offsets to be in the $50 to 65 million range, with the main use of CapEx to add over 800 new EVgo owned stalls this year. We normally incur CapEx in advance of the vintage or operational year.

Speaker Change: We are increasing the midpoint of our 2024 adjusted EBITDA guidance by $4 million and we expect full year 2024, adjusted EBITDA to be in the range of negative 38 million to $32 million.

Speaker Change: The increase in our adjusted EBITDA midpoint reflects continued improvements and charging network gross margins, resulting from increased revenues and lower energy costs.

Speaker Change: We expect to continue to make increased investments in the joint development of our next generation architecture as well as our financial systems to support project financing in the fourth quarter.

Speaker Change: We expect full year capital expenditures net of capital offsets to be in the $50 million to $65 million range with the main use of capex to add over 800, new Vigo owned stores this year.

Speaker Change: We normally incur capex in advance of the vintage or operational year. However, we made a decision to slow our 2025 vintage spend in 2024 as we await final approval of the deal alone.

Paul Dobson: However, we made the decision to slow our 2025 vintage spend in 2024 as we await final approval of the DOE loan. As a result of our efforts over the past few years to build our growth engine, we have successfully decreased lead times between mobilization and construction completion to enable us to incur less CapEx in advance of the vintage year than we have historically done. We remain confident in our ability to accelerate our rate of stall growth as planned if we are successful in securing the DOE loan. We remain fiscally prudent and only build stalls that meet our return hurdles. We are confident as ever that EVgo is on a clear path to an important inflection point in our business, namely hitting adjusted EBITDA breakeven for the full year of 2025.

Speaker Change: As a result of our efforts over the past few years to build our growth engine. We have successfully decreased lead times between mobilization and construction completion to enable us to incur less capex in advance of the vintage year than we have historically done.

Speaker Change: We remain confident in our ability to accelerate our rate of store growth as planned if we are successful in securing the loan.

Speaker Change: We remain fiscally prudent.

Speaker Change: And only build stalls that meet our return hurdles.

Speaker Change: We are confident as ever that if it goes on a clear path to an important inflection point in our business, namely hitting adjusted EBITDA breakeven for the full year of 2025.

Paul Dobson: 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 efficiencies. We look forward to continuing to share our progress on future calls. Operator, we can turn the call over to questions.

Speaker Change: This is based on the expectation that <unk> will continue to grow and at <unk> will continue to expand its network and realize operational efficiencies.

Speaker Change: We look forward to continuing to share our progress on future calls operator, we can turn the call over to questions.

Operator: Hello, everyone. Can you hear me better now?

Speaker Change: Hello, everyone can you hear me better now.

Paul Dobson: Yes, we can.

Speaker Change: Yes, yes.

Operator: Thank you so much. I really do apologize for that one. Ladies and gentlemen, we will now begin the question and answer session. I would like to remind everyone for one question, one follow-up. Should you have a question, kindly press star followed by one on your touch-tone phone. You will hear a prompt that your hand has been raised. Should you wish to withdraw, kindly press star followed by one again. If you are using a speakerphone, please lift the handset before pressing any keys. Our first question comes from the line of Bill Peterson from JPMorgan. Please go ahead.

Speaker Change: Thank you so much already there Paul Thanks for that one again, ladies and gentlemen, we will now begin the question and answer session I would like to remind everyone. Our one question. One follow up should you have a question Thats star followed by the number one on your Touchtone phone and you will hear pump with Dr. Hamilton rates should you wish.

Speaker Change: Withdraw any press star followed by the number one again.

Speaker Change: Speaker phone please lift the handset before pressing entities.

Speaker Change: Our first question comes from the line of Bill Peterson from Jpmorgan. Please go ahead.

Badar Khan: Hi, Bill. Operator, we cannot hear Bill.

Bill Peterson: Hi, Bill.

Speaker Change: Operator, we cannot hear bill.

Operator: Just give me one moment on that. Bill Peterson. Yeah, I can see here that he is on mute. Okay. Our next question comes from the line of Bill Peterson from JPMorgan. Please go ahead.

Thank you you may one moment on that.

Speaker Change: <unk> yeah.

Speaker Change: Yes, I can see here that he is on mute okay.

Speaker Change: Our next question comes from the line of.

Speaker Change: L Peterson from Jpmorgan. Please go ahead.

Bill Peterson: Hi, can you hear me okay?

Speaker Change: Hi can you hear me okay.

Badar Khan: Yes.

Operator: Yes, we can.

Speaker Change: Yes, Thanks, Ken.

Speaker Change: Yes.

Bill Peterson: Okay. Good morning, everyone. Thanks for all the details and nice job on the quarter execution. I have some questions on the DOE loan process to the extent that you can answer them. First, can you touch a bit on the closing conditions for the loan, how quickly you're able to satisfy them? I guess, are there any sort of, quote unquote, "long pole in the tent?" Have you satisfied or addressed all the requirements that are in your control? Is the ball on the DOE side? Basically asking, at the time of the loan extends past January, how much risk do you perceive in order to finalize the loan? Thank you.

Okay. Good morning, everyone. Thanks for all the details and nice job on a quarterly execution.

Speaker Change: I have some questions on the daily loan process to the extent that you can answer them.

Speaker Change: Can you touch a bit on the closing conditions for the law and how quickly youre able to satisfy them I.

Speaker Change: I guess are there any sort of critical long pole in the tent I mean are you satisfied or addressed all of the requirements that are in your control.

Speaker Change: As the bar on the daily side, and then basically asking at the title and a lot of sense task January how much risk are deep perceive that in order to finalize the launch thank you.

Badar Khan: Yeah, thanks for the question. We are as confident as ever in our ability to close the loan. As I said in the prepared remarks, we don't need to issue any equity to be able to close the loan. We don't have a complex single large site. The conditions are, at this point, largely within our control, and we really aren't expecting a lengthy close at all. It is DOE policy to not comment on the timing or the loan details. I guess all I can say is, as I said just now, we're not really expecting a lengthy close, and so we feel very confident about our ability to close the loan.

Speaker Change: Yes. Thanks for the question, we are as confident as ever in our ability to close loans as I said on the in the prepared remarks.

Speaker Change: We don't need to issue any equity to be able to close the loan.

Speaker Change: We don't have a complex sing.

Speaker Change: Sing a large site.

Speaker Change: The conditions are at this point largely within our control and we really arent expecting a lengthy close at all it is doa policy to not comment on the timing or the loan details I guess all I can say is as I said, just now we're not really expecting a likely close and so we feel very confident about our ability that comes alone.

Speaker Change: Okay. Thanks for that and then ask some questions on the near term sort of growth drivers.

Bill Peterson: Okay, thanks for that. I have some questions on the near-term growth drivers, especially in a context that you're seeing quarter-on-quarter deceleration in Q3, and the implied guidance also would indicate some deceleration or at least flat quarter-on-quarter growth. Can you speak to the buckets contributing to the demand growth? Should we assume fairly modest charging growth on a sequential basis with eXtend being a swing factor? I guess, as an early look into next year, how should we think about eXtend, including against the context if the remaining funds of the NEVI program were to go away or reallocated?

Speaker Change: Partially in the context.

Speaker Change: Are you seeing sort of quarter on quarter deceleration in the third quarter and the implied guidance also would indicate some deceleration or at least flat sort of quarter by quarter core growth. So can you speak to the buckets contributing to the demand growth should we assume.

Speaker Change: Fairly modest charging growth on a sequential basis with extend beyond the swing factor and then I guess as an early look into next year, how should we think about extend.

Speaker Change: Loading against the context of the remaining funds at the Navy program were to go away or get reallocated.

Badar Khan: Yeah. We are seeing strong growth in demand. We've seen throughput growth, as we just talked about on the call, quite significantly. In Q4, we expect to see continued growth in throughput, actually, from Q3 to Q4. I'll maybe ask Paul if he wants to share any perspectives around the range of guidance for the full year. For eXtend, we've put about 290 stalls in operation. From the material, you can see that there's about 330 stalls in construction. With respect to 2025, we haven't provided guidance yet, or will do that for 2025 on our Q4 call. I guess what I would say is that, as I said in my prepared remarks, NEVI is a program that received bipartisan support. States that voted for President-elect Trump have been significantly faster in deploying NEVI awards than other states.

Speaker Change: Yes, we are.

Speaker Change: We are seeing strong growth in inland.

Speaker Change: We've seen throughput growth as we just talked about on the call quite significantly.

Speaker Change: And in the fourth quarter, we expect to see continued growth in throughput actually.

Q3 to Q4.

Well, maybe last call if he wants to share any perspectives around the range of guidance for the.

Speaker Change: Full year <unk>.

Speaker Change: Or extend.

Speaker Change: <unk>.

Speaker Change: Put it about 290 stores in operation from the material you can see that the <unk> 330 pulls in construction.

And with respect to 2025, we haven't provided guidance yet or we can do that for 2025.

Speaker Change: And our Q4 call.

Speaker Change: I guess, what I would say is that.

Speaker Change: And as I said in my closing remarks, Natalie user is program that machine bipartisan support.

Speaker Change: States that elected.

Speaker Change: That voted for President elect Trump has been significantly faster in deploying <unk> Awards and then other states and so we we.

Badar Khan: We don't really expect to see much of an impact, frankly, on NEVI either. Paul, anything you want to share in terms of?

Speaker Change: We don't really expect to see much of an impact frankly on <unk> either.

Paul Dobson: Paul anything you want to share in terms of while it's just I would just add bill just you saw our guidance, we raised our guidance for both revenue and adjusted EBITDA.

Paul Dobson: Well, just to add, Bill, you saw our guidance when we raised our guidance for both revenue and adjusted EBITDA. When you look at that and we think about what risks we see as we sit here mid-November for the rest of the year, clearly, throughput could be a risk, but we don't see that as being a very big risk at this point. For adjusted EBITDA, I think the swing factor would be energy costs, where they're going to be. Again, as we sit here mid-November, there could be a little bit of volatility there. We've had higher summer rates in Q3. We expect that to come down in Q4, and we're starting to see that.

Paul Dobson: So when you when you look at that and we think about what risks we see as we sit here certain mid November.

For the rest of the year clearly throughput could be.

Paul Dobson: Risks that we don't see that as being a very big risk at this point.

And then for adjusted EBITDA I think the swing factor would be energy costs, where they are going to be.

Paul Dobson: But again as we as we sit here in mid November there could be some volatility a little bit of volatility that we've had higher summer rates in Q3, we expect that to come down in Q4 and.

Paul Dobson: And we're starting to see that.

Paul Dobson: In our other costs, our G&A costs, such as project costs, getting ready for the DOE loan, there could be a little bit of increase in our G&A costs, but still very well controlled. We see the momentum that we've experienced over the last couple of quarters continuing into the Q4, and I think that's reflected in our guidance.

Paul Dobson: We and our other costs, our G&A costs, such as project costs getting that in Florida.

Paul Dobson: It could be a little bit of increase in our G&A costs, but it's still very very well controlled so we see that momentum that we've experienced over the last couple of quarters continuing into the fourth quarter and I think Patrick what's within our guidance.

Bill Peterson: Thanks, Paul and Badar. Again, nice job on the quarter execution.

Speaker Change: Thanks, Paul on the border.

Speaker Change: Nice job on quarterly execution.

Badar Khan: Yeah. Thanks, Bill. Operator, you can go to the next question.

Speaker Change: Thanks, Bob.

Speaker Change: Operator, you can go to the next question.

Operator: Our next question comes from the line of Andres Sheppard from Cantor Fitzgerald. Please go ahead.

Speaker Change: Our next question comes from the line of Andres Sheppard from Cantor Fitzgerald. Please go ahead.

Andrés Sheppard: Hey, good morning, everyone. Can you hear me okay?

Speaker Change: Hey, good morning, everyone can you hear me okay.

Badar Khan: I hear you just fine. Yep.

Speaker Change: I understand maybe just fine yes.

Andrés Sheppard: Okay, wonderful. Thank you so much. I echo Bill's thoughts. Congratulations on the quarter. Lots of great progress. I wanted to maybe touch on the utilization rate continues to improve, roughly 22% on average across all stalls, which is fantastic. Again, some of them even greater than 30%.

Speaker Change: Wonderful. Thank you so much.

Speaker Change: I Echo bills thoughts congratulations on the quarter lots of great progress.

Speaker Change: I wanted to maybe touch on the utilization rate continues to improve.

Speaker Change: To roughly 22% on average across all stores, which is.

Speaker Change: Fantastic.

Speaker Change: Again, some of them, even greater than 30% just curious I mean, this maybe a tough question, but do we have a sense of kind of what is a industry average utilization rate across fast charging in the United States, just trying to get a sense of how significantly better.

Andrés Sheppard: Just curious, this might be a tough question. Do we have a sense of what is an industry average utilization rate across fast charging in the United States? Just trying to get a sense of how significantly better your rate is relative to maybe the industry or some of well-known peers. Thank you.

Speaker Change: Your rate is relative to maybe the industry or some of the well.

Well known peers. Thank you.

Badar Khan: Yeah, Andres. I think that one of the things that we have done quite a lot over the course of this year is be very transparent about a number of measures from performance through to customer experience. Obviously, this is a key performance indicator. I don't know if there's the same level of transparency elsewhere in the industry. If there really isn't, that I have found an industry-wide average that represents all DC fast operators. What I can tell you is what we've been sharing over the course of many of these earnings calls, which is that we have really invested in our site selection processes. I did share in our last quarterly call that the throughput per stall for the 2023 vintage stalls in Q2 of this year was better than 2021 vintage, better than 2022 vintage, better than 2020 vintage.

Speaker Change: Yes, I mean, I think that is one thing that we I think we've done but all of them over the course of this year is be very transparent about.

Speaker Change: Number of measures from performance to customer.

Speaker Change: Obviously this is a key performance indicator and so I don't know if that's the same level of transparency elsewhere in the industry and so there really isn't that.

Speaker Change: Hi found.

Speaker Change: History wide average that represents all D. C. Best operators I can tell you is what we've been sharing over the course of.

Speaker Change: Many of these earnings calls.

Speaker Change: Which is that we have really invested in our site selection.

Speaker Change: Processes I did share in our last quarterly call that the.

Speaker Change: The throughput per store for the 2023 vintage stalls in Q2 of this year was better than 'twenty, one vintage better than 2002 vintage better than 2020 vintage that it was 75% better than 2020 vintage so.

Badar Khan: In fact, it was 75% better than 2020 vintage. What that's telling you is that our algorithms are getting better. We're deploying stalls in locations where we're getting better performance than we were in the past. I think that this is an area of strength that we have relative to the 40 other operators of DC fast charging stalls. We deploy stalls, as you know, in urban and suburban, high density, high traffic locations close to where drivers live, work, and run their errands. I would expect to see that perhaps our utilization may be higher than many of our other operators in this space. One last thing I'd say, Andres, is that our long-term target that you can see in our unit economics chart is 23% in three to five years. We started the year at 19%, we're now at 22%.

Speaker Change: What that's telling you is that our.

Speaker Change: Our algorithms are getting better we're deploying stalls in locations, where we're getting better performance than we were in the past.

Speaker Change: I think that this is an area of strength that we have relative to the 40. So other operators of DC fast charging stores, we deploy store stores as you know in urban and suburban high high density high traffic locations close to where fiber is live work and run the railroads. So I would expect to see that.

Speaker Change: Perhaps our utilization may be higher than many of our operators in this space.

Speaker Change: Okay.

Speaker Change: Yes.

Speaker Change: One last thing I'll say and resist that.

Speaker Change: Our long term target that you can see in our unit Economics chart is 23% and three to five years, we started the year at 19%. We're now at 22% I think that its clarity upon us to update that 23% number because thats I don't think its that takes three to five years to get an extra 1%.

Badar Khan: I think that it's clearly upon us to update that 23% number because I don't think it's going to take three to five years to get an extra 1%.

Andrés Sheppard: Wonderful. Yeah, thanks for that. That's super helpful. I appreciate all that context. I agree that maybe it is a tough number to identify for the industry-wide, but yours certainly would seem to be well above the medium there. Maybe as a follow-up, more of a strategy question, but I'm curious, as you're seeing some OEMs transition or trying to transition into more autonomy across its vehicles, how are you thinking about that in terms of a charging strategy? Is that something that you potentially will look to implement in the future to try to account for these autonomous or robotaxis things of sorts? Is that something that you're thinking about? Just curious, any thoughts there? Thank you.

Speaker Change: Wonderful Thanks, Thats Super helpful. I appreciate all that context I agree that maybe it is a tough number to identify her for the industry wide, but you're fairly would seem to be kind of well above the medium there.

Speaker Change: Maybe as a follow up more of a strategy question, but I'm curious as you are seeing some.

Speaker Change: Oems kind of trend.

Transition or trying to transition into more.

Speaker Change: Economy across its vehicles.

Speaker Change: How are you thinking about that in terms of charging strategy or is that something that you potentially will look to implement in the future to try to account for these autonomous or robo taxis things of sorts.

Speaker Change: That something that you're kind of thinking about and just curious any thoughts there. Thank you.

Badar Khan: Yeah, very much so. As I've said on prior calls, I think that autonomous vehicles, along with wider electrification and just more affordable vehicles, and specifically for us, cable standardization, represent very significant opportunities for growth simply because they're going to increase the share of DC fast versus L2 charging. I think that autonomous vehicles will be electric. They are electric that are in place today. They'll be charging in fast locations because the owners of these assets are going to be looking to maximize uptime and not waste time at a slow charging location. Andres, we do have autonomous vehicle clients where we're building dedicated hubs, much larger hubs for AV clients.

Speaker Change: Yes, very much so we.

Speaker Change: On prior calls I think that autonomous vehicles.

Speaker Change: Along with right for electrification and just more affordable vehicles and specific to <unk> cable standardization represent.

Speaker Change: Very significant opportunities for growth simply because theyre going to increase the share of DC fast versus <unk>.

Speaker Change: Al to charging.

Speaker Change:

Speaker Change: I think that autonomous vehicles will be electric or electric that are in place today.

Speaker Change: Nope recharging and fast locations because the owners of this of these assets to maximize uptime and.

Speaker Change: Not waste time at a slow charging locations. We do have Andrew is we do have autonomous vehicle clients.

Speaker Change: Where were building dedicated hubs.

For launch larger hubs for clients and expect over the course of the next year or so I expect we'll talk more about about that type of business that we're doing.

Badar Khan: Over the course of the next year or so, I expect we'll talk more about that type of business that we're doing, especially since I think it's set to continue to grow even faster than it has done so far.

Speaker Change: Specially since I think it's it's it's set to.

Speaker Change: For you to grow even faster and has done so far.

Andrés Sheppard: Wonderful. Very helpful again. Thank you so much, and congrats on the quarter. I'll pass it on.

Speaker Change: Wonderful very helpful. Again, thank you so much and congrats on the quarter I'll pass it on.

Badar Khan: Thanks, Andres.

Speaker Change: Thanks Edward.

Operator: Thank you. Our next question comes from the line of Craig Irwin from Roth Capital. Please go ahead.

Speaker Change: Thank you. Our next question comes from the line of Craig Irwin from Roth Capital. Please go ahead.

Craig Irwin: Hi, good morning, and thanks. Hi, Badar. Good morning, everyone.

Speaker Change: Hi, good morning, and thanks for taking hi, <unk> good morning, everyone.

Badar Khan: Morning.

Speaker Change: Great.

Craig Irwin: My first question really is about the opportunity with Tesla, right? Nobody can argue your growth metrics are impressive. If we choose throughputs or sales or utilization, everything's going in the right direction. In the longer term, you're growing more than twice the rate of EV sales right now. The opportunity to serve the Tesla fleet is something that potentially unlocks a much longer runway for this impressive outsized growth versus the overall growth of absolute units in the EV market. Can you maybe unpack for us the non-Tesla sales in the quarter? Was there anything constraining that? I assume the NEVI charger connectors is a large part of it, but what do you see as the potential opportunity there to serve Tesla customers, particularly in areas of the country that are congested?

Speaker Change: My first question really is is about the and the opportunity with Tesla right. So nobody can argue your growth metrics are impressive with we choose throughput. It's our sales our utilization everything is going in the right direction.

Speaker Change: But.

Speaker Change: In the in the longer term right you are growing.

Speaker Change: More than twice the rate of the radar.

Speaker Change: Sales right now.

Speaker Change: And the opportunity to serve the Tesla fleet is something that potentially unlocks.

Speaker Change: A much longer runway for this impressive outsized growth versus the versus the overall growth of sort of absolute units and in the EV market.

Speaker Change: Can you maybe unpack for us the.

Speaker Change: The non Tesla sales in the quarter was there anything constraining that I assume there.

Speaker Change: Heavy charger connectors is a large part of it but.

Speaker Change: What have you seen as a potential opportunity there to serve Tesla customers, particularly in areas of the country there are congested.

Badar Khan: Craig Irwin, I think that it's a great question. When Tesla worked with other OEMs to ultimately standardize the cable and the port in all vehicles, we had a lot of questions around how that might impact our business. Of course, many months after that, we're seeing tremendous growth in our own throughput. Where I expect to see, to your question, even more growth is the ability for our network to serve Tesla vehicles. A very small proportion of our network throughput today are Tesla drivers charging on our network. Once we have the NACS connector, the J3400 standard finalized, completed, properly tested, which we're hoping for the end of the year, but of course, we're going to make sure that the testing is done properly. Then we start rolling it out across our network for new stalls and for retrofit.

Craig Irwin: Craig I think that.

Craig Irwin: It's a great question.

Craig Irwin: When Tesla worked with other Oems to ultimately standardize the cable in the court.

Craig Irwin: In all vehicles.

Craig Irwin: We had a lot of questions around what that might how that might impact our business of course and.

Craig Irwin: Many months for many many many months that we're seeing tremendous growth in our own throughput.

Craig Irwin: Where I expect to see to your question even more growth is the ability for our network to serve Tesla vehicles.

Craig Irwin: A very small portion of our network throughput today, our Tesla driver is charging in our network.

Craig Irwin: Once we have the lax connector the <unk> 3400 standard.

Craig Irwin: <unk> finalized pleated test properly tested which we're hoping for the end of the year, but of course, we're going to make sure that it's done the testing is done properly.

Craig Irwin: Hi.

Craig Irwin: And then we start rolling it out across our network for new stores and a retrofit.

Badar Khan: I expect to be able to attract the roughly 60% of EV VIO that is not primarily charging in our network to start charging in our network. That's because, as I said on prior calls, our network is more of an urban network. It's closer to where people live, work, they run their errands, versus a highway network, which is a large part of what Tesla is. I think we've demonstrated our ability to attract customers. Our growth of new customers was 38% and 39% versus last year, whereas the growth of new Tesla sales was only 18% year-over-year. One of our priorities this year has been building this growth muscle where we've got the right talent and we've got the right people to be able to target and get specific drivers onto our network as customers.

Craig Irwin: Expect to be able to attract roughly 60, roughly 60% of the Io that is not primarily charging in our network to start charging in our network.

Craig Irwin: And that's because as I said.

Craig Irwin: Protocols, our network is more of an urban network, it's closer to where people live work they run their aaron's versus the highway network, which is a large part of what slipped Tesla is I think we've demonstrated our ability to attract customers our growth of new customers was 30.

<unk> hundred 39% versus last year, whereas the growth of new tests and sales was only 18%.

Craig Irwin: Year over year, so one of our priorities. This year has been building this growth muscle, where we got the right talent and we've got the right people to be able to target and get specific customers on to.

Craig Irwin: The drivers onto our network as customers. We so we've proven that and I'm confident that over the course of the next couple of years will be at the target test the drivers who argues for a network once that cable has become standardized.

Badar Khan: We've proven that, and I'm confident that over the course of the next couple of years, we'll be able to target Tesla drivers who aren't using the network once that cable has become standardized.

Craig Irwin: Understood. That makes complete sense. My second question is about the expense burden necessary to serve the expanded opportunity with your DOE funding. You have added some senior executives and obviously selected employees in the last year, some of them pretty high profile industry executives. Would you expect to need to add much in the way of executives or employees to increase the execution capacity to serve the DOE-funded opportunity? Or is this something where we can expect pretty significant leverage to the existing infrastructure that you've put together?

Understood that makes that makes complete sense. So my second question is about the the expense burden necessary to serve the expanded opportunity with your deal with funding.

Craig Irwin: <unk> added some senior executives and obviously.

Craig Irwin: Selected employees in the last year, some of them pretty high profile industry executives.

Speaker Change: Would you expect to need to add much in the way of.

Speaker Change: Executives or employees to increase the execution capacity to serve the Doa funded opportunity.

Speaker Change: Opportunity or is this something where we can expect pretty significant leverage to the existing infrastructure that you put together.

Badar Khan: Yeah. I think that we've got huge upside in terms of our ability to leverage the infrastructure and the team that we have in place. In the near term, for 2025, we are very focused on meeting the commitments that we've been saying to the market around EBITDA breakeven. We're very focused on that. I don't think that we'll be expanding the build schedule that much in 2025. Over the course of five years with the DOE loan, we'll be looking to add 7,500 stalls. While that's an average of 1,500, it'll be a much lower number in 2025, and it'll build over the course of those five years, a significantly higher number by the fifth year.

Speaker Change: Yes, we have.

Speaker Change: I think that we've got huge.

Speaker Change:

Speaker Change: Upside in terms of our ability to leverage the infrastructure and the team that we have in place.

Speaker Change: In the near term for 2025, we are.

Speaker Change: Very focused on meeting the commitments that we've been saying to the market around EBITDA breakeven.

Speaker Change: So we will.

Speaker Change: We're very focused on that.

Speaker Change: Don't think that.

Speaker Change: We will be expanding the build schedule that much in 2025 over the course of five years with the Doe loan will be looking to add 7500 stores why that's an average of 5100 it will be a much lower number in 2025 and it will build over.

Speaker Change: Of course of those five years, a significantly higher number of by the fifth year.

Badar Khan: Like with everything here, Craig, we're going to be very prudent around how we grow the business for making sure that we're delivering on all the expectations and the commitments that we've made. We have added a lot of very good, very excellent talent to the team at all levels, at executive levels, in the engineering teams, and we expect to leverage that as we grow the business.

So like with everything here, Craig we are going to be very prudent around how we grow the business.

Speaker Change: Making sure that we're delivering on all the expectations that the commitments that we've made we have added a lot of very good Barry.

Speaker Change: Excellent talent to the team at all levels executive levels, and the engineering teams and we expect to leverage that as we grow the business.

Craig Irwin: Thanks for taking my questions.

Speaker Change: Thanks for taking my questions.

Badar Khan: Yep.

Speaker Change: Yes.

Operator: Thank you. Our next question comes from the line of Chris Dendrinos from RBC Capital Markets. Please go ahead.

Speaker Change: Our next question comes from the line of Chris <unk> from RBC capital markets. Please go ahead.

Chris Dendrinos: Hi. Good morning. Congratulations on a really solid quarter. I guess maybe starting out here, just on the DOE. You mentioned some potential alternative funding options that you're evaluating. Can you just, I guess, walk us through the strategy there? Is that more of an insurance policy, call it, in the event that a Republican administration looks to repeal that loan? Is this in addition to support build-out that maybe doesn't qualify or falls outside the DOE stipulations? Thanks.

Speaker Change: Hey, good morning, and congratulations on a really solid quarter.

Speaker Change: I guess, maybe maybe starting out here just on the on the <unk>.

Speaker Change: Mentioned some.

Speaker Change: Potential alternative funding options that you are evaluating can you just I.

Speaker Change: I guess walk us through the strategy there and is that more of an insurance policy call. It in the event that.

Speaker Change: A Republican administration looks to repeal that that loan or is this an end date.

Speaker Change: Two to support build out that maybe doesn't qualify or falls outside the daily stipulations. Thanks.

Badar Khan: Yeah. Hi, Chris. Look, we've been talking about pursuing non-dilutive sources of financing for the better part of the year. I think the more that we've been transparent about both our performance and unit economics over the course of this year, the conversations have grown and there's been sort of more interest on the other side of the table. I think it's fair to say that at the beginning of the year, as we were looking at these non-dilutive financing options, they were as alternatives to what we may or may not get from the U.S. government.

Speaker Change: Yes, Hi, Chris.

Speaker Change: Look we've been talking about pursuing non dilutive sources of financing for the better part of the year.

Speaker Change: And I think the more that we have been transparent about both our performance and unit economics over the course of this year.

Speaker Change: The conversations that have grown.

Speaker Change: And.

Speaker Change: Hey.

Speaker Change: Of more interest on the other side of the table.

Speaker Change: It's fair to say that at the beginning of the year as we were looking at least non dilutive.

Speaker Change: Financing options they were.

Speaker Change: As alternatives to what we may or may not get from from.

Speaker Change: From the U S government.

Badar Khan: I think at this point, we're really looking at these as options to expand our financing on top of the loan that we're hoping to close with the DOE to finance stalls that might not otherwise be covered by the Department of Energy. I think, again, as I said before, I think the transparency that we've had with our unit economics has resulted in some very productive conversations. Our priority at this point, Chris, is to get the DOE loan closed. That's our number one priority here in terms of financing, which I said in response to Bill's question, we're not expecting it might be closed. These issues are, at this point now, largely within our control.

Speaker Change: I think at this point, we're really looking at these as options to expand.

Speaker Change: Our financing on top of.

The loan that we're hoping to close with the DLA.

To finance loan to finance stalls that might not otherwise be powered by the department of energy and I think again as I said before I think the transparency that we've had with our unit economics has resulted in some very productive conversations.

Speaker Change: But our priority at this point, Chris is to get the deal loan closed that's that's our number one priority here in terms of financing, which.

Speaker Change: <unk>.

Speaker Change: Pumps to Bill's question, we're not expecting a likely close these issues are at this point now largely within our control.

Chris Dendrinos: Got it. Thanks. I guess maybe shifting gears here, just on the Delta Electronics partnership, and you mentioned you're targeting a 30% improvement in CapEx per stall, maybe beginning the second half of 2026. Can you provide a bit more detail on what specifically you all are, I guess, targeting for that design that allows for that level of CapEx improvement? Thanks.

Speaker Change: Got it thanks.

Speaker Change: And I guess, maybe shifting gears here just on the Delta Electronics partnership and you mentioned, you're targeting a 30% improvement in capex per store.

Speaker Change: Beginning the second half of 'twenty six.

Speaker Change: Can you provide a bit more detail on sort of what specifically you are.

Speaker Change: I guess targeting for that that design.

Speaker Change: That allows for that level of Capex improvement. Thanks.

Badar Khan: Yeah. Chris, again, this is just another one of the areas where we're just executing what we've been saying all year, where all year I've been talking about this effort, which, and again, it's an effort that we have been resourcing for a good part of the year at this point. The MOU with Delta Electronics is just the next step in that journey. The next step after that actually will be having our first prototype within the next year. In terms of specifically what we're doing with this effort is bringing together our experience of serving over a million customers, our understanding of their pain points, together with a global power electronics leader who, in our space, because of the lack of vertical integration, almost none of the hardware suppliers actually have that real-world customer experience. We're putting those two things together to jointly design.

Speaker Change: Chris again. This is just another one of the areas, where we're just executing what we've been saying all year.

Speaker Change: <unk> been talking about this effort and again, it's an effort that we had been resourcing or good part of the year at this point.

Speaker Change: The Mou with Delta Electronics is just the next step.

Speaker Change: In that in that journey and the next step after that actually will be having our first prototype.

Speaker Change: Within the next year, but in terms of specifically what we're doing with this effort is bringing together our experience of serving over 1 million customers our understanding of their pain points together with a global power electronics leader, who.

Speaker Change: Our space because of the lack of vertical integration almost not none of the hardware suppliers actually have that real world customer experience. So we're putting those two things together to jointly designed so they will build but jointly designed a new site.

Badar Khan: They will build, but jointly design a new site, a new layout, a different power sharing configuration, different dispenser design that takes into account both the best customer experience, and the lowest cost. I expect to see savings in terms of the equipment, in terms of the construction. One of the things that is important in this process is continuing with prefabricated skids, of which we're expecting now 40% of our deployments next year to be benefiting from. It saves on both timeline and construction spends. It's a whole host of these things. We've been estimating 30% CapEx savings on a personal basis. I've been talking about that all year, and that's what we expect to date still.

Speaker Change: Lay out.

<unk> power sharing configuration different dispenser design.

Speaker Change: That takes into account both the.

Speaker Change: Best customer experience and the lowest cost and I expect to see savings in terms of the equipment in terms of the construction.

Speaker Change: One of the things that is important in this process is continuing with prefabricated scales of which we're expecting now 40% of our deployments next year to be benefiting from saves on sales on both timeline and construction expense.

Speaker Change: It's a whole host of these things we've been estimating 30% capex savings on a personal basis I've been talking about that all year and that's what we expect today still.

Chris Dendrinos: Yeah. Thank you.

Speaker Change: Got it thank you.

Badar Khan: Yep.

Speaker Change: Yep.

Operator: Thank you. Our next question comes from the line of Chris Pierce from Needham & Company. Chris, go ahead.

Speaker Change: Thank you. Our next question comes from the line of Pearce from Needham. Please go ahead.

Chris Pierce: Hey, good morning, everyone.

Pearce: Hey, good morning, everyone.

Badar Khan: Hi, Chris.

Speaker Change: Hi, Chris.

Chris Dendrinos: I just wanted to get a sense of when we talk about high utilization sites and we talk about rideshare drivers, we talk about the DOE loan and the sites that you're going to build in and the sites that you are building in now, which are a little more lower income areas where there's less EV penetration. What's the right way to think about these two coming together? Is it that you expect the high utilization sites to keep growing and that would be able to support early utilization in the newer sites that you launch? Do I have that wrong and EV penetration, in your mind, will drive higher penetration sooner at these potentially less juicy sites? I just want to make sure I have the pieces right in my head in terms of how you think about it.

I just wanted to get a sense of when we talk about high utilization side can we talk about rideshare drivers then we talk about the DRA alone and the sites that you are going to build in the sites that you are building. It now which are little more lower income areas, where there's less EV penetration and what's the right way to think about these two coming together is it that you expect.

Speaker Change: The high utilization types to keep growing and that will appeal to support low yield early utilization in the the newer sites that you launch or do I have that wrong and EV penetration in your minds will drive higher penetration sooner at these potentially less juicy sites I just want to make sure I have the pieces right in my head as to start.

Speaker Change: How do you think about it.

Badar Khan: Yeah, Chris, look, the sites that we'll be building through with the DOE loan are sites that meet the administration's Justice40 Initiative, which are areas that are overburdened with environmental impacts, negative environmental impacts. Today, over 50% of the stalls that we're building today are in rural and low-income communities, and they're eligible for 30C funding. There's actually quite a lot of overlap, significant overlap between those two things. So we're really not expecting any material difference at all in terms of what we're building today and what we will continue to build as a result of the DOE loan. In fact, I expect no change in our unit economics. I expect the improvements that we've been talking about to continue. We do need to update the long-term utilization number.

Speaker Change: Yes, Chris look we we.

The sites that will be building through the Doe loan.

Speaker Change: Our.

Speaker Change: Set in meat.

Speaker Change: The administration's Justice 40 initiatives.

Speaker Change: Which are and which are areas that are overburdened by the environmental impacts.

Speaker Change: But overburdened with environmental impacts negative volatile events.

Speaker Change: Today.

Speaker Change: We are.

Speaker Change: 40% are over 50% of the stores that we're building today are in.

Speaker Change: <unk> and low income communities and then they're eligible for 30 <unk> funding is actually quite a lot of overlap significant overlap between those two things.

Speaker Change: And so we're really not expecting any difference any material difference at all in terms of what we're building today and what we will continue to build as a result of the low in fact I expect.

Speaker Change: No change in our view that economics I expect the improvements that we've been talking about to continue we do need to update the long term utilization number as I said, just earlier, 23% doesn't seem to make any sense anymore given that we're at 22% today on utilization.

Badar Khan: As I said just earlier, 23% doesn't seem to make any sense anymore, given that we're at 22% today on utilization. What I do expect to see is even more leverage on the fixed costs, both within gross margin and SG&A, just because we're going to have a much higher store count. That'll, of course, have a beneficial impact to our unit economics. I think I hope I'm answering your question. We don't really see much-

Speaker Change: Do expect to see is even more leverage on the fixed costs, both within gross margin and SG&A, just because we're going to have a much higher slowdown.

Speaker Change: That'll that'll be of course beneficial beneficial impact of our unit economics, but I think I hope I'm answering your question, we don't really see much.

Chris Pierce: Yeah. That's very helpful. Thank you. At the high utilization sites that you have now, your highest utilization sites where you've got a larger propensity of rideshare drivers, are we in the sixth inning, seventh inning? I know these sites are never going to get to 100% utilization, but what is the outlook for utilization growth at your top performing sites still right now?

Speaker Change: Just.

Speaker Change: Yes, that's very helpful. Thank you.

Speaker Change: The high utilization sites that you have now your highest utilization phase III, you've got a larger propensity of rideshare drivers is there still are we in the sixth inning seven thing I mean, I know these types of it ever going to get to 100% utilization, but whats the utilization what is the outlook for utilization growth at <unk>.

Speaker Change: Top performing sites still right now.

Badar Khan: Well, you can see that our top performing sites are growing. In terms of utilization and throughput per stall, the chart number 17 shows.

Speaker Change: Well you can see that our top performing sites are growing.

Speaker Change: In terms of utilization and throughput Pearsall I mean the.

Speaker Change: Number 17 shows group per store per our top 8% sites growing significantly if you look at that same number sequentially.

Chris Pierce: Yeah

Chris Pierce: throughput per stall for our top 50% sites growing significantly. If you look at that same number sequentially as opposed to year-over-year, you can see significant improvement. Throughput, as you know, is a product of utilization and charge rate. We see that progressing. I think the important thing here is we see the entire network moving to the right, which is data that we've been supplying every quarter, not just the top performing sites.

Speaker Change: As opposed to year over year, you can see significant improvement in throughput as you know is a path of utilization in charge rate and so we see that progressing I think the important thing here is we see the entire network moving to the right, which is data that we've been supplying every quarter not just the top performing sites.

Chris Pierce: Okay, perfect. Thanks for the time.

Speaker Change: Okay perfect. Thanks for the time.

Badar Khan: Yeah.

Speaker Change: Yes.

Operator: Thank you. Again, should you have a question, please press star followed by the number one. Our next question comes from the line of William Grippin from UBS. Please go ahead.

Speaker Change: Thank you again should you have a question. Please press star followed by the number one.

Speaker Change: Our next question comes from the line of William Gibson from UBS. Please go ahead.

William Grippin: Good morning. Thank you for the time.

William Gibson: Good morning, Thank you for the time.

Badar Khan: Hi there.

Speaker Change: Hi, good morning.

William Grippin: Was wondering if you could elaborate first on your expectations for 30C monetization going forward now that you've done this 2023 deal. Should we expect these to be maybe more regular semi-annual, or are you still planning on just annual monetization going forward?

Speaker Change: I was wondering if you could elaborate first on the.

Speaker Change: Expectations for.

Speaker Change: 30, <unk> monetization going forward now that you've done this 2023 deal.

Speaker Change: Should we expect these to be maybe more regular semiannual or or or are you still planning on just annual monetization going forward.

Badar Khan: We're looking at that. Well, we obviously had our first monetization this year for the tax filing deadline. We're looking at the right strategy that allows us to maximize the monetization for the company. Broadly, just taking a step back from that, we're expecting to see continued monetization at or around the levels that we've been getting that we received for the first deal that we did this year. So for the 2024 portfolio in 2025. Whether it's one sale or two sales, we're looking at the right strategy that maximizes the return for us.

Speaker Change: Yes, we're looking at that where we obviously had.

Speaker Change: First monetization.

Speaker Change: This year for the tax filing deadline and so we're looking at the right strategy that allows us to maximize.

Speaker Change: The monetization for the company.

Speaker Change: Broadly kind of just taking a step back on that were looking at were expecting to see continued monetization at or around the levels that we've been getting that we receive for the for the first deal that we did.

Speaker Change: This year, so for the 2024 portfolio.

Speaker Change: 125, and whether which one sale of two sales we're looking at <unk>.

Speaker Change: The right side of that maximizes the return for us.

William Grippin: Makes sense. Just going back to one of your comments in the prepared remarks, I think you had said 56% of throughput came from rideshare and OEM subscription. Are you able to bifurcate that more granularly between rideshare and OEM? Within the subscriptions, are you seeing growth in partnerships or expansion of programs there?

Speaker Change: Makes sense and just going back to one of your comments in the prepared remarks, I think you had said 56% of throughput came from Ryan Sharon OEM subscription are you able to bifurcate that more granularly between rideshare and OEM and then within the subscriptions are you seeing growth.

Speaker Change: And partnership store expansion of programs there.

Badar Khan: Yeah. You can actually look at, I think we disclose our revenue for commercial specifically, which is largely rideshare, and that's about 24% in terms of input, I'm sure I should say, sorry, not revenue. That whole group of 56% is both free rideshare subscription customers and customers on the OEM charging credits. It's been in that 50 to mid-50s percent for the last two or three quarters now, I think. You can go back to our earnings materials. It's a slide in the chart. We like that load because it's high frequency. It's what I would call our most predictable, steady. I'm an energy guy, so I see it as base load demand, and I think it's great for underwriting our business.

Speaker Change: Yeah. So.

Speaker Change: You couldn't.

Speaker Change: Actually look I think we disclose our revenue.

For commercial specifically, which is largely rideshare and that's about 24%.

Speaker Change: In terms of.

Speaker Change: I'm, sorry, I should say sorry, not revenue.

Speaker Change: And so that whole group of 56% as folks why choose a free ride share.

Speaker Change: Subscription customers and.

Speaker Change: Customers on the OEM charging credits, it's been in that 50 to mid 50% for the last two or three quarters now I think well you can go back to.

Speaker Change: Earnings materials Slide on chart.

Speaker Change: And so that's that's we liked that load because it's high frequency.

Speaker Change: What I would call are most predictable steady.

And energy Guy, so I see it as base load demand.

Speaker Change: I think it's great for underwriting business.

William Grippin: Got it. Appreciate the color. Thanks very much.

Speaker Change: Got it appreciate the color thanks very much.

Badar Khan: Yeah.

Speaker Change: Yes.

Operator: Thank you. That concludes our Q&A session for today. I'd now like to turn the call over back to Badar Khan for final closing comments.

Speaker Change: Thank you that concludes our Q&A session for today I'd now like to turn the call over back to the dark line for final closing comments.

Badar Khan: Great. Well, look, thank you, everyone. We've had yet another record quarter, and we've raised the midpoint of our guidance again and are clearly on the path to adjusted EBITDA break even next year. We continue to benefit from just a whole bunch of tailwinds that are benefiting EVgo and operators. With EVgo's scale over the dozens of smaller operators, I think hopefully you're seeing that we're really starting to cement our competitive advantage, especially in terms of delivering a best-in-class customer experience. We remain as confident as ever closing the DOE loan, which will accelerate our growth. If and when we close the loan, we will host a webinar to provide you with more details. Until then, thanks very much.

Speaker Change: Great well. Thank you everyone. We've had yet another record quarter and we've raised the midpoint of our guidance again and are clearly on the path to adjusted EBITDA breakeven next year, we continue to benefit from just a whole bunch of tail winds that are benefiting owner operators and with easy go scale over the dozen smaller operators.

Speaker Change: I think hopefully you're seeing that we're really starting to cement our competitive advantage, especially in terms of delivering a best in class customer experience, we remain as confident as ever closing, the Doa loan, which will accelerate our growth and if and when we close the loan we will host a webinar will provide you with more details then.

Speaker Change: Extra margin.

Operator: Thank you. That concludes our conference call for today. You may now disconnect.

Speaker Change: Thank you that concludes our conference call for today you may now disconnect.

Speaker Change: [music].

Speaker Change: Okay.

Speaker Change: [music].

Speaker Change: Sure.

Speaker Change: [music].

Speaker Change: Okay.

Speaker Change: Okay.

Speaker Change: [music].