Q4 2024 EVgo Inc Earnings Call

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Operator: Hello, and thank you for standing by.

Hello, and thank you for standing by my name is Regina and I will be your conference operator today at this time I would like to welcome everyone to the E V go fourth quarter and full year 2024 earnings conference call all lines have been placed on mute.

Regina: My name is Regina, and I will be your conference operator.

Operator: At this time, I would like to welcome everyone to the Evgo fourth quarter and full year 2024 earnings All lines have been placed on you to prevent any back. After the.

To prevent any background noise. After the Speakers' remarks, there will be a question and answer session. If you would like to ask a question. During this time simply press Star then the number one on your telephone keypad to withdraw your question Press Star One again, we kindly ask you. Please limit your questions to one and one follow up I would now like to turn the call.

Operator: There will be a question and If you would like to ask a question... Simply press star and the number one on your telephone. To withdraw your question, press star 1. I kindly ask that you please limit your questions to one and one.

Heather Davis: I would now like to turn the conference over to Heather Davis, Vice President of Investor Relations. Please go ahead. Good morning, and welcome to Evgo's fourth quarter and full year 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. Today, we will be discussing Evgo's fourth quarter financial results and our outlook for 2025, 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.

Speaker Change: French over to Heather Davis, Vice President of Investor Relations. Please go ahead.

Speaker Change: Good morning, and welcome to <unk> fourth quarter and full year 2024 earnings call. My name is Heather Davis I'm, the Vice President of Investor Relations at U V go.

Speaker Change: Joining me on today's call about our Con Ebitdas, Chief Executive Officer and.

Speaker Change: Paul Dobson Ebitdas Chief Financial Officer.

Speaker Change: Today, we will be discussing EBITDA of fourth quarter financial results and our outlook for 2025, all led by a Q&A session.

Speaker Change: Today's call is being webcast and can be accessed on the investors section of our website at investors thought E V go Dot com.

Heather Davis: The call will be archived and available there along with the company's earnings release and investor presentation after the conclusion of this call.

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

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

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

Speaker Change: 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 reports on Form 10-Q.

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

Speaker Change: 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 this call. information about these non-GAAP measures, including the reconciliation to the corresponding GAAP measures, can be found in the earnings material available on the Investor section of our website. With the anticipated growth in dedicated stalls or stalls for commercial partners such as autonomous vehicles that are not open to the public, we have now broken out our stall counts into three categories, public, dedicated and extended. Group which shown and discussed today is for our public network only. The revenue for dedicated sites has been reclassed from charging revenue commercial to ancillary revenue this quarter.

Speaker Change: Also please note that we will be referring to certain non-GAAP financial measures on this call information about these non-GAAP measures, including a reconciliation to the corresponding GAAP measure can be found in the earnings material available on the investors section of our website.

Speaker Change: With the anticipated growth in dedicated stalled or stalled for commercial partners such as autonomous vehicles that are not open to the public we have now broken out our cell counts into three categories public dedicated and accept throughput.

Speaker Change: Throughput shown and discussed today is for a public network only revenue for dedicated site has been request for charging revenue commercial.

Speaker Change: Ancillary revenue this quarter and the associated costs have been re classed from charging network cost of sale. The other cost itself. We've provided a quarterly update for these changes for 2000 2023 and 2024 in the appendix of our Investor presentation. So you may update.

Heather Davis: And the associated costs have been reclassed from charging network cost of sales to other cost of sales. We provided a quarterly update for these changes for 2020-23 and 2024 in the appendix of our investor presentation so you may update your models appropriately for the impacted period.

Speaker Change: Your models appropriately for the impacted period.

Badar Khan: With that, I'll turn the call over to Badar Khan, Evgo CEO. Evgo had yet another strong and record quarter. Customer consumption on our network continues to rise, with average daily throughput per public store rising by 37% versus the same quarter last year, and up more than five-fold in three years. utilization, our network reached what we believe is an industry leading 24%, up 5% from a year ago, and now already within the range of our recently updated and therefore still conservative long term forecast. Full year revenues from our core charging business, more than double year over year.

Speaker Change: With that I'll turn the call over to <unk> CEO.

You can grow had yet another strong record quarter.

Speaker Change: Consumption of our network continues to rise with average daily throughput for public school pricing by 37% versus the same quarter last year.

Speaker Change: More than fivefold in three years.

Speaker Change: Utilization of our network reached what we believe.

Speaker Change: <unk> 24 per cent.

Speaker Change: 9% from a year ago, and now already within the range of our recently updated and therefore still conservative long term forecast.

Speaker Change: Full year revenues from our core charging business more than doubled year over year in Q4 represented the nice sequential quarter double digit growth.

Badar Khan: Q4 represented the 9th sequential quarter of double digits. Full-year revenue grew 60% year-over-year, a near 12-fold growth in just three years.

Speaker Change: Full year revenue grew 60% year over year, a near 12 fold growth in just three years.

Badar Khan: We added a record 480 new operational stalls in the fourth quarter, including dedicated and extend stalls, which made it a record year with over 1,200 new stalls added in and now have over 4,000 operators.

Speaker Change: We added a record 480, new operational stalls in the fourth quarter, including dedicated and extended schools, which made it a record year with over 12, new stores added in the year and now have over 4000 operational skills.

Badar Khan: And as you all know, after an 18-month process, we finally closed on a $1.25 billion loan guarantee with the Department of Energy Loan Programs Office. fully finances our ability to more than triple our installed base over the next five years throughout the United States. We received our first advance in January for approximately $75 million, leaving us with approximately $200 million in cash in January.

Speaker Change: And as you all know offered 18 months process. We finally closed on a $1 billion to $5 billion loan guarantee.

Speaker Change: Energy loan program office.

Speaker Change: Refinance is our ability to more than triple our installed base over the next five years throughout the United States.

Speaker Change: Received a first and fast in January for approximately $75 million, leaving us with approximately $200 million in cash in January.

Badar Khan: has not yet scheduled our next quarterly event. Taking a step back, we know that new sales of battery electric vehicles in the U.S. have grown considerably over the past several decades. However, we are falling behind other markets, and in particular China, which is currently winning in an unmistakable race towards electrifying transportation. China already outsells the U.S. in automotive sales globally.

Speaker Change: You could go is not yet scheduled next quarterly inbox.

Speaker Change: Taking a step back we know that used sales of battery electric vehicle in the U S have grown considerably over the past several years.

Speaker Change: However, we are falling behind on their markets and in particular, China, which is currently winning an unmistakable race towards electrifying transportation globally.

Speaker Change: China already outsell, the U S and automotive sales globally.

Badar Khan: The result of extensive and prolonged state sponsorship of this event. U.S. automakers say their EV production is simply responding to demand. Two biggest drivers in survey after survey for why more U.S. drivers have not already made the switch to electric vehicles are the upfront price of the vehicle, despite the fact that the total cost of ownership is already lower and the availability of charging. The good news is that there are more and more electric vehicle models available in the U.S. that are becoming increasingly affordable. However, U.S. electric vehicles remain more expensive than the electric vehicles subsidized in China.

Speaker Change: <unk> extensive and prolonged state sponsorship with the television industry.

Speaker Change: U S automakers say their EV production simply responding to come out two biggest drivers in survey after survey why more U S fibers, having already made the switch to electric vehicles.

Speaker Change: On price of the vehicle.

Speaker Change: The fact that the total cost of ownership is already lower.

Speaker Change: <unk> ability and charging infrastructure.

Speaker Change: The good news is that there are more and more electric vehicle models available in the U S that are becoming increasingly affordable. However, U S. Electric vehicles remained more expensive than the electric vehicles subsidized in China.

Badar Khan: This is why U.S. auto CEOs do not support the elimination of incentives and regulations to support the scaling up of EVs in the U.S. On charging, China has more than five times the DC fast charging infrastructure per electric vehicle than the U.S. Increasing the supply of charging infrastructure stimulates demand for electric vehicles, which allows U.S. automakers to increase scale, reduce unit costs, generate profit on their EV businesses, and as a result, improve their competitiveness.

Speaker Change: Why U S auto Ceos do not support the elimination of incentives and regulations to support the scaling up of Evs in the U S.

Speaker Change: Yes.

Speaker Change: On charging China has more than five times, the DC fast charging infrastructure for electric vehicles and the U S.

Speaker Change: Increasing the supply of charging infrastructure stimulates demand for electric vehicles, which allows U S automakers to increase scale.

Speaker Change: Used unit costs generate profit on their businesses.

Speaker Change: Walt improve their competitiveness against Chinese Oems.

Badar Khan: one automotive CEO plant, a global street fight. in the automotive. And the U.S. needs its ED businesses to scale up to be able to compete against China and preserve 2.4 million automotive manufacturing jobs in the United States. building out public charging infrastructure is a key enabler of that. As you know, Evgo's charging revenues are not linked to new sales in any one year, but by the growth of all electric vehicles in operation, or VIO, and the availability of charging infrastructure. In fact, we estimate that less than 10% of 2025 revenue will likely be driven by new first-time drivers of EVs, and that ratio will continue to fall each year.

Speaker Change: That's one automotive CEO pumps for Global Street fight this taking place in the automotive sector in the U S needs of CEB businesses to scale up to be able to compete against China and preserves $2 4 million automotive manufacturing jobs in the United States.

Speaker Change: Building out public charging infrastructure is a key enabler of that call.

Speaker Change: As you know it goes charging revenues are not linked to new sales in any one year, but by the growth of electric vehicles in operation.

Speaker Change: And the availability of charging infrastructure in fact, we estimate that less than 10%.

25 revenue will likely be driven by new first time drivers of Evs in that ratio will continue to fall each year.

Badar Khan: The demand growth for our business, represented by the growth in EVBIO, has been outpacing supply growth of charging infrastructure for years. This is one of the reasons utilization of our network has grown four-fold in three years. In fact, according to the DOE, we have had flat growth of new DC fast charging in the U.S. for the past six quarters. Presumably, this lack of investment has been driven by the industry's expected slowdown in EV sales, even though EV sales have, in fact, continued to grow.

Speaker Change: Demand growth for our business represented by the growth in <unk> has been outpacing supply growth charging infrastructure for years. This is one of the reasons utilization of our network has grown fourfold in three years.

Speaker Change: In fact, according to the Doa we've had flat growth of new DC fast charging in the U S for the past six quarters.

Speaker Change: Presumably this lack of investment has been driven by the industry's expected slowdown in EV sales, even though sales have in fact continued to grow.

Badar Khan: to demonstrate the resilience of our people. Rise, utilization on our network, rise, utilization on our network. charging supply cannot grow fast. If the EV sales fall, it's likely the pace of new charger development will fall faster, as we've already seen, and utilization on our network rises. In all cases, existing BIO will continue to underpin strong unit economics and demand for our... And because we know that the availability of charging infrastructure is one of the most important factors in whether people switch to electricity. This means increasing supply actually stimulates demand and utilization on our network rises.

Speaker Change: This demonstrates the resilience of our business model.

Speaker Change: Sales rise utilization on our network rises because charging supply cannot grow fast enough.

Speaker Change: Sales for the supply to the pace of new Charger development move forward faster as we've already seen utilization on our network rises in all cases existing vio will continue to underpin strong unit economics and demand for our Chargers.

Speaker Change: And because we know that the availability of charging infrastructure is one of the most important factors in whether people switch to electric.

Speaker Change: This means increasing supply actually stimulates tomorrow.

Speaker Change: <unk> on our network rises in other words can almost every scenario, we have a resilient business model, where we see growth in our business.

Badar Khan: In other words, in almost every scenario, we have a resilient business model where we see growth in our business. We further benefit from the fact that Evgo is more focused on growing usage in our network than some other charging companies may be, and therefore is likely capturing a greater share of kilowatt-hours. Other fast-charging companies are either highway-focused, chasing NEVI wards, or utilizations lower, or are building charging stations to sell cars versus maximizing utilization. or are non-owners whose revenue is based on equipment or software sales and not on utilization.

Speaker Change: We further benefit from the fact that <unk> is more focused on growing usage of our network and some other charging companies maybe.

Speaker Change: Airports likely capturing a greater share of kilowatt hours although.

Speaker Change: They're fast tracking type things are either highway focus to chasing nephew awards, where utilization is lower.

Speaker Change: Building charging stations to sell cars versus maximizing utilization.

Speaker Change: Our non owners, whose revenue is based on equipment or software sales are not on utilization.

Badar Khan: Finally, as we've said many times, we also benefit from multiple other talent. up and will continue to drive up.

Speaker Change: Finally, as we've said many times, we also benefit from multiple other tailwind that have driven up and will continue to drive up utilization.

Badar Khan: First, is rideshare electrification. Companies such as Uber and Lyft have internal goals to get more drivers to switch to electric, and this is supported by policies requiring rideshare become fully electric in large cities such as New York. The rideshare driver needs to charge up during their shift and usually do so on DCSC networks so they can get back on the roads quickly. Second, ZD adoption moves from early adopters to the mass market, driven by more... More EV drivers are expected to live in multi-family housing without access to home charging. As we've detailed in the past, multifamily EV drivers charge two times more in our network than single-family EV drivers.

Speaker Change: As rideshare electrification companies, such as Uber and Lyft have internal goals to get more drivers to switch to electric and this is supported by policies requiring bites share become fully electric large cities, such as New York City.

Speaker Change: When a rideshare driver needs to charge offs during their shift unusually do so on D. C. S. E networks. So they can get back on the road quickly.

Speaker Change: Second is easy adoption moves from early adopters of a mass market driven by more affordable.

Speaker Change: More EBIT drivers are expected to leave multifamily housing without access to home charging as.

Speaker Change: As we've detailed in the past multifamily EV drivers charge two times more of our network with single family he'd be drivers.

Badar Khan: Third, as vehicles increase their charge rate. The use case for DC fast charging becomes more compelling to drivers. Fourth, autonomous vehicles are beginning to hit the roads in several market pilots from a few companies. The financial use case for AVs requires them to be both electric and highly utilized. Therefore, like with rideshare drivers, when AVs need to charge, they'll use fast charging. Evgo already has partnerships with leading AV firms. It has 110 dedicated hub stalls in operation, representing what we estimate to be approximately 20% share of all dedicated fast-charging stalls for the AV sector. We plan to continue to expand this segment in 2025 and expect this to be an area of growth that may occur faster than previously thought.

Speaker Change: Third as vehicles increased surcharge rates or the speed at which they can take electrons from Chargers. The use case for DC fast charging becomes more compelling to drivers.

Speaker Change: Fourth.

Speaker Change: MS vehicles are beginning to hit the road several market pilots from a few companies.

Speaker Change: Natural use case for a b's requires them to April electric and highly utilized therefore like rideshare drivers when avs needs charge unused fast charging.

Speaker Change: If you go already has partnerships with leading AAV firms as 110 dedicated hub stores and operation representing what we estimate to be approximately 20% share of all dedicated fast charging stores 48 sector.

Speaker Change: We plan to continue to expand this segment in 2025 and expect this to be an area of growth that may occur faster than previously thought.

Badar Khan: Finally, the standardization of the charging cables to J3400, commonly referred to as NACs, is an opportunity for Evgo. Today, only a small percentage of drivers that use our network are Tesla drivers. As we add NAC stalls to our network, we are in the unique position to attract roughly 60% of EVVIO to our network that isn't currently using our network. As I've mentioned before, Evgo stations tend to be in urban and suburban areas, closer to amenities than many test stations. In fact, as of this earnings call, we've begun our pilot rollout of the NAICS cable. And while it's very early days, we believe the results are promising.

Speaker Change: And finally, the standardization of the charging cables to Jay 3400, commonly referred to as next is an opportunity for <unk>.

Speaker Change: Today, only a small percentage of drivers that use our network our testify of us.

Speaker Change: As we add next falls to our network yard in a unique position to attract roughly 60% of <unk> to our network that isn't currently using our network today.

Speaker Change: As I've mentioned before illegal stations tend to be in urban and suburban areas closer to amenities and many test those patients today and.

Speaker Change: In fact as of this earnings call. We've begun a pilot rollout of the next cable and while it's very early days, we believe the results are promising.

Badar Khan: The combination of all these factors are what results in a resilient business model for Evgo, thriving growth, and adjustment.

Speaker Change: The combination of all these factors and what results in a resilient business model for E V go.

Speaker Change: I think growth in adjusted EBITDA.

Badar Khan: Let's now turn to progress on our four key priorities. Improving our customer experience, Operating in CapEx efficiently. capturing and retaining high value customers and securing additional complimentary financing to accelerate.

Speaker Change: Let's now turn to the progress on our four key priorities.

Speaker Change: Moving on to customer experience operating and capex efficiencies, capturing and retaining high value customers and securing additional complementary financing to accelerate growth.

Badar Khan: As always, improving our customer experience remains our number one priority, and our strong momentum caps off an excellent Customers want a charger to be available when they pull up to an Evgo store. We are deploying larger sites where our standard configuration is now six to eight stalls per site. At the end of 2024, 20% of our sites at six stalls or more. With a record number of deployments during the fourth quarter, we reached our goal of 50% of Evgo stores served by our higher power 350 kilowatt chargers compared to 34% a year. AutoCharge Plus continues to gain traction with a big step up in the fourth quarter to 24% of sessions initiated by the seamless plug-and-charge.

Speaker Change: As always improving our customer experience remains our number one priority.

Speaker Change: Strong momentum caps off an excellent year.

Speaker Change: Customers want a charter to be available when they pull up to an easy go station. We are deploying larger sites rush standard configuration now six to eight stores per site at the end of 2024, 20% of our sites at six stores or more.

Speaker Change: With a record number of deployments during the fourth quarter, we reached our goal of 50% of easy go stores served by our higher power 350 kilowatt Chargers compared to 34% a year ago.

Speaker Change: Auto charge plus continues to gain traction with a big step up in the fourth quarter to 24% of sessions initiated by the seamless plug in charging experience.

Badar Khan: We are gaining significant traction with auto enrollments for OEMs that have AutoChargePlus. And finally, our key customer success metrics, for one and done, increased four percentage points this quarter versus last year. 95% of sessions resulting in a successful charge on the first try.

Speaker Change: Gaining significant traction with auto enrollments Oems that have auto charge plus in April.

Speaker Change: And finally, our key customers for sex metrics, a one and done increased four percentage points this quarter versus last year with 95% of sessions, resulting in a successful charge on the first try.

Badar Khan: Summary, another great quarter of achievement in improving our customers.

Speaker Change: Summary, another great quarter of achievement and improving our customer experience.

Badar Khan: We've also made excellent progress on our efficiency priorities. Most notably, we took the MOU with Delta Electronics we signed last October and converted it into a signed joint development agreement to co-develop the next generation of charging arcs. and Delta are making meaningful progress in this initiative and are expected to lower our gross capex per store by 30%. We anticipate production of these stalls to begin in the second half of 2026. And we plan to have a prototype for the second quarter. In 2024, we achieved a 9% reduction in our gross capex per sole for our current generation of charters through multiple ongoing Additional reductions are underway in 2025, and we look forward to sharing our continued program.

Speaker Change: We've also made excellent progress on our efficiency priorities, most notably we took the Mou itself electronics, we signed last October and converted it into a signed joint development agreement to co develop the next generation of charging architecture.

Speaker Change: If you go and Delta are making meaningful progress in this initiative and expect to lower our gross capex per store by 30%.

Speaker Change: We anticipate production of these stores to begin in the second half of 2026.

Speaker Change: To have a prototype for the second quarter of this year and 2024, we achieved a 9% reduction in our gross Capex first of all our current generation of charters through multiple ongoing efficiency efforts.

Speaker Change: <unk> reductions are underway in 2025.

Speaker Change: Look forward to sharing our continued progress.

Badar Khan: The first sites built with our prefabricated skids are operational and you'll save into build costs and construction time. We expect around 40% of our 2025 deployments will utilize pre-fabricated software. continue to drive operational efficiencies in our business, with total adjusted G&A as a percentage of revenue, delivering a 21 point improvement over 2020. In 2025, Evgo remains focused on operating efficiencies, and we anticipate further improvements in G&A as a percent of revenue while investing in the growth of our business.

Speaker Change: First sites built without pre fabricated skids are operational and yield savings and build cost and construction time lines.

Speaker Change: Correct around 40% by 2025 deployments will utilize pre fabricate skids.

Speaker Change: We continue to drive operational efficiencies in our business with total adjusted G&A as a percentage of revenue delivering a 21 point improvement over 2023.

Speaker Change: In 2025 Eagle remains focused on operating efficiencies and we anticipate further improvements in G&A as a percent of revenue while investing in the growth of our business.

Badar Khan: We also continue to make great progress on our growth priority of capturing and retaining high-value customers. 56% of Evgo's throughput came from ride share, OEM charging credit, and subscription accounts. This provides Evgo with a relatively predictable baseload level of demand at our network. Evgo now has over 1.3 million customer accounts, growing over 50% from 2020. As a result of our investments earlier in the year in our customer marketing platform, we've been implementing multiple targeted customer lifecycle campaigns that are generating strong growth in retail throughput, which we will continue to prioritize throughout Last year, we began rolling out dynamic pricing in our network.

Speaker Change: We also continue to make great progress on our growth priority of capturing and retaining high value customers.

Speaker Change: 56% of those throughput came from rideshare, OEM charging credit and construction accounts in Q4.

Speaker Change: It provides he would go with a relatively predictable baseload level of demand on our network.

Speaker Change: We go now has over $1 3 million customer accounts growing over 50% from two from 2023 as.

Speaker Change: As a result of our investments earlier in the year and our customer marketing platform.

Speaker Change: Implementing multiple targeted customer lifecycle campaigns that are generating strong growth in retail throughput, which we will continue to prioritize throughout the year.

Speaker Change: Last year, we began rolling out dynamic pricing in our network and by yearend, we expanded that to 100% of our existing SaaS charging sites we feel.

Badar Khan: And by year end, we expanded that to 100% of our existing fast charging. We already see the benefits of all of these efforts through expanding margins, but also significantly expanding. We expect the next major update to our dynamic pricing algorithms in the second half of this year.

Speaker Change: <unk> seen the benefits of all of these efforts through expanding margins, but also significantly expanding throughput.

Speaker Change: We expect the next major update to our dynamic pricing algorithms and the second half of this year.

Badar Khan: And finally, as I mentioned earlier, we installed native NAICS connectors in our first site in early 2025. We're excited to be able to share the results of this pilot project with you throughout.

Speaker Change: Finally, as I mentioned earlier, we installed native Max connectors at our first site in early 2025.

Speaker Change: Excited to be able to share the results of this pilot project with you throughout the year.

Badar Khan: Looking ahead, we expect to expand or sign new partnerships with site hosts that are capable of scaling, similar to the expanded partnership we announced in November with Meijer, a Midwest grocery store chain, where we expect to add 480 new public fast-charging stalls at Meijer properties over the next year. In 2025, we also plan to launch the first of 400 new flagship stalls in partnership with GM with the goal of delivering an elevated customer experience. And a reminder, these sites will feature up to 20 stalls and come with ultra-fast 350-kilowatt chargers, canopies, ample lighting, pull-through stations, and security cameras, and like all Evgo sites, will be located near a diverse set of amenities that customers can take advantage of while charging.

Speaker Change: Looking ahead, we expect us expand or signed new partnerships with psychosis that are capable of scaling similar to the expanded partnership we announced in November with Myer, and Midwest grocery store chain, where we expect to add 480, new public fast charging stalls Meyer properties over the next three years.

Speaker Change: Yes.

Speaker Change: In 2025, we also plan to launch the first of 400, new flagship stores in partnership with GM for the goal of delivering an elevated customer experience.

Speaker Change: A reminder, these sites will feature up to 20 stores and come with ultra fast $3 50 kilowatt Chargers canopies ample lighting pull through stations and security cameras and like all even those sites will be located near a diverse set of amenities that customers can take advantage of while charging.

Badar Khan: Finally, we expect to expand the number of dedicated stalls serving autonomous vehicle partners, which could represent a very attractive source of potential growth for Evgo given we estimate we have a 20% share of operational sites serving this sector.

Speaker Change: Finally, we expect to expand the number of dedicated stores, serving autonomous vehicle partners, which could represent a very attractive source of potential growth for <unk>. Given we estimate we have a 20% share of operational sites, serving this segment today.

Badar Khan: As for financing the growth of the business, Evgo closed the $1.25 billion loan guaranteed with the DOE LPO in December 2024, with the first draw for $75 million occurring in January 2025. Sloan Insurers, we are fully funded to add at least 7,500 stalls, more than tripling our installed base over the next five years. September, we complete the transfer of our first 30C income tax credit for our 2023 vintage stalls and expect to complete the transfer of our 2024 vintage portfolio. Over the course of this year, we expect around 30% of 2025 vintage CapEx to be offset from state, local and federal grants, utility incentives, OEM payments and third.

Speaker Change: As for financing the growth of the business, even though closed in the $1 million to $5 million loan guarantees.

Speaker Change: <unk> in December 2024, with the first role for 75 million occurring in January 2025.

Speaker Change: This loan ensures we are fully funded to at least seven 5000 stores more than tripling our installed base over the next five years.

Speaker Change: In September we completed the transfer of our first 30 C income tax credits for our 2023 vintage stores and expect to complete the transfer of our 2024 vintage portfolio. This year.

Speaker Change: Over the course of this year, we expect around 30% of 2025 vintage capex to be offset from state local and federal grants utility incentives OEM payments and 30 feet.

Badar Khan: Federal incentives in the form of Technology Neutral 30C Alternative Fuels Credit and NEVI represent approximately 10% of our 2025 vintage capital. said before, this is not a business particularly reliant on Federalists. And our next generation charging architecture program is targeting at least a 30% reduction in gross capex per stall, significantly more than the value of these federal incentives. And finally, given the very strong cash flows from our operating assets, we continue to receive inbound interest and evaluate additional complementary non-dilutive financing opportunities. that would help fund the growth of any charging stations not included in the DOE.

Speaker Change: Federal incentives in the form of technology neutral 30 seen alternative fuels credit and nervy represent approximately 10% of our 2025 vintage capex.

Speaker Change: As we said before this is not a business, particularly relying on federal incentives.

Speaker Change: Our next generation charging architectural program is targeting at least a 30% reduction in gross capex fall significantly more than the value of these federal incentives.

Speaker Change: Finally, given the very strong cash flows from our operating assets.

Speaker Change: Turning to receive inbound interest and evaluate additional complementary non dilutive financing opportunities that would help fund the growth of any charging stations not included in the deal.

Badar Khan: funding to accelerate our growth.

Speaker Change: <unk> funding to accelerate our growth.

Paul Dobson: Paul Dolson, Evgo's CFO, will now cover our strong financial performance in the fourth quarter and full year 2024, together with our outlook for 2025. Thank you, Badar. Evgo delivered another excellent year in 2020. Our operations team mobilized and operationalized many sites in the past. And we ended the year with 4,080 operations. 37% increase over 2020. As Badar mentioned, we continue to add new customer accounts throughout the year and ended 2024 with over 1.3 million customer accounts. Total throughput on the public network for 2024 was 277 gigawatt hours, a 116% increase compared to last year. Revenue for 2020.

Speaker Change: Paul Dobson <unk> CFO will now cover our strong financial performance in the fourth quarter and full year 2024, together with our outlook for 2025.

Speaker Change: Thank you Pat or <unk>.

Speaker Change: <unk> delivered another excellent year in 2024.

Speaker Change: Our operation team mobilized and operationalize many sites in the fourth quarter and we ended the year with 4080 operational stops.

Speaker Change: 37% increase over 2023.

Speaker Change: That are mentioned, we continued to add new customer accounts throughout the year and ended 2024 with over $1 3 million customer accounts.

Speaker Change: Total throughput on the public network for 2024 was 277 gigawatt hours, 116% increase compared to last year.

Speaker Change: Revenue for 2024 was $257 million, which represents a 60% year over year increase this growth was primarily driven by charging down with revenues.

Paul Dobson: 257 million, which represents a 60% year-over-year increase. This group was primarily driven by charging network revenue. Total charging network revenues of $155.7 million grew from $74.2 million in 2024, exhibiting a 110% year-over-year increase. The following are the retail, commercial, and OEM charging revenues, each individually, at least doubling over the prior year. The stand revenues of $86.6 million decreased from $72.4 million in the prior year. delivering growth of 20. Both charging network gross margin and adjusted EBITDA margins significantly improved in 2020. demonstrating the operating leverage in our business. Evgo's public network throughput group continues to outpace EVBIO groups driven by multiple factors.

Speaker Change: Total charging network revenues of $155 7 million grew from $74 2 million in 2020 for exhibiting a 110% year over year increase with retail commercial and OEM charging revenue each individually at least doubling over the prior year.

Extend revenues of $86 6 million decreased from $72 4 million in the prior year delivering growth of 20%.

Speaker Change: Both charging network gross margin and adjusted EBITDA margin significantly improved in 2020 for demonstrating the operating leverage in our business model.

Speaker Change: <unk> public network throughput growth continues to outpace EV Vio grew driven by multiple factors since 2021, a public throughput has grown almost 1000% compared to <unk> growth of over 200%.

Paul Dobson: Since 2021, our public throughput has grown almost 1,000% compared to EVBIO growth of over 200%. in the fourth quarter, network utilization increased to 24%. up from 19% a year ago. Diving into the detail a bit more, 65% of our stalls had utilization greater than 15%. 53% of our stalls had utilization greater than 20%. and 32% of our stalls had utilization greater than 30%. Each of these utilization categories grew throughout the year, with the distribution of the entire utilization curve of the whole portfolio shifting to the right. In the fourth quarter, the average daily throughput for the owned and operated public network was 269 kilowatt hours, compared to 197 last year.

Speaker Change: In the fourth quarter network utilization increased to 24% up from 19% a year ago.

Speaker Change: Starting in detail a bit more 65% of our stores have utilization greater than 15%, 53% of our staff have utilization greater than 20% and 32% of our staff have utilization greater than 30%.

Speaker Change: Each of these utilization categories grew throughout the year with the distribution of the entire utilization curve all portfolio shifting to the right.

Speaker Change: In the fourth quarter, the average daily throughput for the owned and operated public network was 269 kilowatt hours compared to 197 last year.

Paul Dobson: Looking at the top 15% of our network, the average daily throughput per public stall was 599 kilowatt-hours. versus 450 in the prior year. The top 15% of our network is already exceeding where we conservatively think the average stall will grow to when we reach 11,000 public. We made significant progress in the profitability of the owned and operated public charging network. Charging network gross margin for 2024 was 37.6%, up from 26% in 2021. Higher throughput for public stall allows for leverage of the stall-dependent costs, such as rent and property. Revenue for the fourth quarter grew 35% compared to last year, with total revenue of $67.5 million.

Speaker Change: Looking at the top 15% of our network. The average daily throughput for public stall was 599 kilowatt hours versus $4 50 in the prior year.

Speaker Change: The top 15% of our Dot work is already exceeding where we conservatively think the average store will grow too.

Speaker Change: Reached 11000 public stock.

Speaker Change: We made significant progress on the profitability of the owned and operated public charging network. This year.

Speaker Change: <unk> network gross margin for 2024 was 37, 6% up from 26% in 2023.

Higher throughput per public store allows for leverage of installed dependent costs, such as rent and property taxes.

Speaker Change: Revenue for the fourth quarter grew 35% compared to last year with total revenue of $67 5 million.

Paul Dobson: While strong charging revenues continue to meet our expectations. certain timing issues cost $4 million of extended revenue to move into the first quarter of 2020. Just a gross profit was $22.8 million in the fourth quarter of 2020. up from $13.3 million in the fourth quarter of 2023. adjusted gross margin was 33.7% in the fourth quarter of 2024, an increase of 720 basis points compared to the fourth quarter last Adjusted GNA as a percentage of revenue also improved from 54.4% in the fourth quarter of 2020. 46.2% in Q4. demonstrating the operating leverage. In the fourth quarter, adjusted GNA increased 4 million sequentially.

Speaker Change: While strong charging revenue continued to meet our expectations certain timing issues cost $4 million of extend refuse to move into the first quarter of 2025.

Speaker Change: Adjusted gross profit was $22 8 million in the fourth quarter of 2024 up from $13 3 million in the fourth quarter of 2023.

Speaker Change: Adjusted gross margin was 33, 7% in the fourth quarter of 2024, an increase of 720 basis points compared to the fourth quarter last year.

Speaker Change: Adjusted G&A as a percentage of revenue also improved from 54, 4% in the fourth quarter of 2023 to 46, 2% in Q4 of this year demonstrating the operating leverage effect.

Speaker Change: In the fourth quarter, adjusted G&A increased $4 million sequentially as we are hiring to support our next generation architecture.

Paul Dobson: We are hiring to support our next generation. Adjusted EBITDA was negative $8.4 million in the fourth quarter of 2024, a $5.6 million improvement versus negative $14 million in the fourth quarter of 2023. For the full year 2024, revenue was $256.8 million, an increase of 60% over 2020. The adjusted gross profit was $75.7 million in 2024, up from $41.8 million in 2020. The adjusted gross margin was 29.5% in 2024, an increase from 26% last year. Cost management continues to be a priority for UVA. With a nearly $100 million increase in revenues, we managed our expenses well and adjusted G&A on an absolute basis, increased by only $7.5 million for the full year to $108.2 million.

Speaker Change: Adjusted EBITDA was negative $8 4 million in the fourth quarter of 2024, a $5 6 million improvement versus negative $14 million in the fourth quarter of 2023.

Speaker Change: For the full year 2024 revenue was $256 8 million an increase of 60% over 2023.

Speaker Change: Adjusted gross profit was $75 7 million in 2024 up from $41 $8 million in 2023.

Speaker Change: Adjusted gross margin was 29, 5% in 2024, an increase from 26% last year.

Speaker Change: Cost management continues to be a priority pretty equal.

Speaker Change: With a nearly $100 million increase in revenues, we managed our expenses well and adjusted G&A on an absolute basis increased by only seven 5 million for the full year to $108 2 million.

Paul Dobson: With this leverage, Adjusted Evgo improved to a loss of $32.5 million per day. 26.4 million improvement over 2023. Cash, Cash Equivalents, and Restricted Cash was $121 million as of December 31, 2024. We also received our first draw of $75 million under our DOE bond in January 2025, which brought our Cash, Cash Equivalents, and Restricted Cash to approximately $200 million. We're improving our cash flow profile as well. In 2024 we used $7.3 million in cash for operations compared to cash use of $37.1 million in 2023. Gross capital expenditures were $94.8 million in 2024. Capital expenditures net of capital offsets was $46.4 million.

Speaker Change: With this leverage adjusted EBITDA improved to a loss of $32 5 million for the year.

Speaker Change: $26 4 million improvement over 2023.

Speaker Change: Cash cash equivalents and restricted cash was $121 million as of December 31, 2024. We also received our first draw of $75 million under our <unk> in January 2025, which brought our cash cash equivalents and restricted cash to approximately $200 million.

Speaker Change: We're improving our cash flow profile as well in 2024, and we used $7 3 million in cash for operations compared to cash use of $37 1 million in 2023.

Speaker Change: Gross capital expenditures for $94 8 million in 2020 for capital expenditures net of capital offsets was $46 4 million.

Paul Dobson: Let's now take a look at our unit economics model.

Speaker Change: Let's now take a look at our unit economics model first.

Paul Dobson: First, we've made a couple of updates to remove the dedicated stalls, their associated throughput, revenue, and cost to focus solely on public stalls. also would cost. All energy demand charges are now in throughput-dependent cost. whereas it previously was split between stall-dependent and throughput-dependent costs. And finally, on sustaining DNA for stolls, we are looking at a trailing 12 months of DNA. to reduce the volatility that occurs when you annualize a quarterly number as GNA has accounting adjustments from time to time.

Speaker Change: First we've made a couple of updates to remove to dedicated staff and associated throughput revenue and cost to focus solely on public stocks.

Speaker Change: Also with cost of sales all energy demand charges show now in throughput dependent cost of sales, whereas it previously was split between stall dependent and throughput dependent cost of sales.

Speaker Change: And finally on sustaining G&A per store, we are looking at a trailing 12 months of G&A.

Speaker Change: To reduce the volatility that occurs when you annual annualized.

Speaker Change: Or do we number SG&A as accounting adjustments from time to time that can cause noise.

Paul Dobson: Taken Kazmo. The growth in average throughput per stall drove the increase in revenue per stall, as average revenue per kilowatt hour increased by just one percent. The throughput-dependent cost of sales decreased by 2 cents per kilowatt-hour, or roughly 8 percent, as we continue our geographic expansion, including in Texas and Florida, where energy tariffs are generally lower, and we are spreading our demand charges over a greater network. All dependent cost of sales increased year over year, primarily driven by maintenance expenses as utilization on the network has increased. Sustaining gna-perstal decreased roughly 5%. It's quite revealing to see the leverage in the Evgo model, as annual cash flow per public stall increased five times for last year, and the top 15% of our network is now generating roughly $50,000 per stall per year, which is higher than even the top end of our long-term Utilization is now already within the range of our updated, but still conservative, long-term utilization.

Speaker Change: The growth in average throughput per score drove the increase in revenue per store as the average revenue per kilowatt hour increased by just one second.

Speaker Change: Throughput dependent cost of sales decreased by <unk> <unk> per kilowatt hour or roughly 8% as we continue our geographic expansion, including in Texas, and Florida, where energy tariffs are generally lower and we are spending our demand charges.

Speaker Change: Later network book.

Speaker Change: So all dependent cost of sales increased year over year, primarily driven by maintenance expense is utilization on the network has increased.

Speaker Change: Sustaining G&A per store decreased roughly 5%.

Speaker Change: It's quite revealing to see the leverage in the eco Mod and annual cash flow per public saw increased five times per last year and the <unk>.

Top 15% of our network is now generating roughly $50000 per store per year, which is higher than even the top end of our long term branch <unk>.

Speaker Change: Utilization is now already within the range of our updated but still conservative long term utilization range enormous tailwind, we enjoy faster charge rate batteries and newer models combined with faster at the speed of our network from a 350 kilowatts charger.

Paul Dobson: The enormous tailwind we enjoy from faster charge rate batteries in newer models combined with faster average speed of our network from our 350 kilowatt charger drives much of the remaining increase in daily throughput per stall in our long-term assumptions. Looking at the longer term, we should see leverage in stall-dependent costs driven by material improvements in the maintenance costs driven by the next-gen architectures improved maintenance . For sustaining GNA per stall, we expect this number will increase in 2022.

Much of the remaining increase in daily throughput per store and our long term assumptions.

Speaker Change: Looking at the longer term, we should see leverage install dependent costs driven by material improvements in the maintenance costs driven by the Nextgen architectures improved maintenance profile.

Speaker Change: Our sustaining G&A per stop we expect this number will increase in 2025, because we are making investments installed.

Paul Dobson: As we are making investments, Install it!

Paul Dobson: Road is back up. We are targeting this to reduce to 7,000 in a month. As we build a larger network and fixed G&A expenses are allocated over a three times larger stall date. As we build critical supply of fast charging infrastructure over the next several years and reach a scale of roughly 11,000 The leverage of the model is expected to generate annual returns of 50% per stall. Taking a simple math approach to our unit economics, the path to a much larger business in the long term. At 11,000 public stalls, we expect to generate around $1 billion in annual revenue.

Speaker Change: Back half weighted.

Speaker Change: We are targeting this to reduce to 7000 in a long term as we build a larger network and fixed G&A expenses are allocated.

Speaker Change: There are three times larger stoppage.

Speaker Change: As we build critical supply of fast charging infrastructure over the next several years and reach a scale that roughly 11000 stores a leverage of the model is expected to generate annual returns of 50% per store.

Speaker Change: Taking a simple math approach to our unit economics.

Speaker Change: To a much larger business in the long term he is clear.

Speaker Change: At 11000 public stores, we expect to generate around $1 billion in annual revenue.

Paul Dobson: Charging Network Gross Profit of $550 million. There are some investments in G&A to be made, but growth rates anticipated from gross profit scale much faster. and 11,000 public stalls. The core owned and operated business of Evgo could be generating $300 million to $425 million in annual adjusted revenue. As a reminder, this excludes contributions from any other business minds, like dedicated hubs, or growth outside of the DOE loan. The growth engine we've built at Evgo will continue to deploy stalls at a greater rate in 2025 than we achieved in 2020. We anticipate owned and operated public and dedicated stalls of 800 to 900 in 2025.

The charging network gross profit of $550 million. There are some investments in G&A to be made our growth rates anticipated gross profit scale much faster.

Speaker Change: 7000 public stores, the core owned and operated business at the vehicle could be generating $300 million to $425 million in annual adjusted EBITDA.

Speaker Change: As a reminder, this excludes the contribution from any other business lines are dedicated hubs of growth outside of <unk>.

Speaker Change: Our growth engine, we built at <unk> will continue to deploy stores at a greater rate in 2025, and we achieved in 2024 <unk>.

Speaker Change: We anticipate owned and operated public and dedicated staff of 800 to 902025.

Paul Dobson: With the vast majority being stalls or the public. As a reminder, we prudently held back capital towards the end of 2024, awaiting the closure of the DOE loan.

Speaker Change: With the vast majority of theme stores or the public shopper.

Speaker Change: As a reminder, we prudently held back capital towards the end of 2024 awaiting the closure of the Doe loan and as such our 2025 build plan will be back half weighted.

Paul Dobson: And as such, our 2025 build plan will be back up. We anticipate roughly 50% of the stalls planned for 2025 will be in the fourth quarter. And we expect to build another 450 to 550 stalls in 2025 for our Evgo Xtend platform. This increase in total deployments in 2025 shows we're on the path to deliver 7,500 stalls under the DOE loan.

Speaker Change: We anticipate roughly 50% of the stores planned for 2025 will be in the fourth quarter of 2025.

And we expect to build another 450 to 550 stores from 2025 or <unk> extend partners.

Speaker Change: This increase in total deployments in 2025 shows we're on the path to deliver 7500 stores under the <unk> as.

Paul Dobson: As a reminder, the Public Network Stall Build Plan for 2025 to 2029, shown here, is supported by the DOE loan. If we're successful in lowering CAPEX per stall, in line with our stated plans, we would be able to build approximately 1,600 more stalls. Without an increase in the DOE loan financing, starting from 2027 onwards, upon release of our next generation architecture in 2026. We expect to add even more dedicated stalls for AAV partners in 2026 and beyond.

Speaker Change: As a reminder, public network stall build plan for 2025% in 2029 shown here supported by the deal flow.

Speaker Change: If were successful in lowering Capex first of all in line with our stated plans.

Speaker Change: Would be able to build approximately 1600 more stores.

Without an increase in the Doe loan finance starting from 2027 onwards upon release of our next generation architecture in 2026.

Speaker Change: We expect to have even more dedicated installs for JV partners in 2026 and beyond.

Paul Dobson: Our build plan for the pilot company for our XTEND contract is currently expected to be completed by 2021. Evgo continues our top line growth and path to profitability in 2025. We expect total revenues in the range of $340 million to $380 million. continue to target adjusted even a break even in 20 with a range of negative 5 million to positive 10 million.

Speaker Change: Our build plan for the private company for extend contract is currently expected to be completed by 2027.

Speaker Change: <unk> continues our topline growth and path to profitability in 2025.

Speaker Change: We expect total revenues in the range of 340 million to $380 million.

Speaker Change: We continue to target adjusted EBITDA breakeven in 2025 with a range of negative 5 million to positive tenure.

Paul Dobson: Additional color behind these ranges are as follows. Charging network revenue is expected to comprise approximately 2 3rds of our total revenue in 2025. Charging network revenue anticipates sequential quarterly growth throughout 2025. Q1 is typically flat to Q4. as it is the lowest quarter of the year historically for vehicle miles traveled. Extended revenues are expected to be roughly flat in 2021. 2024, with growth in the second half. and similar revenues are expected to grow in 2020. most of the growth coming in the fourth quarter of 2025 driven by the debt. Total Adjusted Gross Profit and Adjusted GNA as a Percentage of Revenue are expected to improve employment.

Speaker Change: Additional color behind these ranges are as follows charging network revenue is expected to comprise approximately two thirds of our total revenue in 2025.

Speaker Change: And charging network revenue anticipate sequential quarterly growth throughout 2025 Q.

Speaker Change: Q1 is typically flat to Q4.

Speaker Change: As it is the lowest quarter of the year historically per vehicle miles traveled.

Speaker Change: Extend revenues are expected to be roughly flat in 2025 to 2024 with growth in the second half of the year.

Speaker Change: Consolidated revenues are expected to grow in 2020 with most of the growth coming into the fourth quarter of 2025, driven by the dedicated business.

Speaker Change: Total adjusted gross profit and adjusted G&A as a percentage of revenue.

Speaker Change: In fact, it to improve in 2025 driving bottom line adjusted EBITDA.

Paul Dobson: driving bottom line, adjusted even. Jump to DNA is expected to increase. throughout 2025, reflecting continued investments in technology and efficiency, plus We expect fiscal CapEx net of offsets to be in the range of $160 million to $180 million for 2025.

Speaker Change: Yeah.

Speaker Change: Adjusted G&A is expected to increase modestly from the Q4 run rate throughout 2025, reflecting continued investments in technology and efficiency less inflation, we expect physical capex net of offsets to be in the range of $160 million to $180 million for 2025.

Badar Khan: 2025 will be a pivotal and exciting year for Evgo.

Speaker Change: 2025 will be a pivotal and exciting year for <unk>. So operator, we can now open the call for Q&A.

Operator: Operator, we can now open the call for Q&A. At this time, I'd like to remind everyone in order to ask a question, press star then the number one on your.

Speaker Change: At this time I would like to remind everyone in order to ask a question Press Star then the number one on your telephone keypad and as a reminder, we kindly ask that you. Please limit your questions to one and one follow up our first question will come from the line of Bill Peterson with Jpmorgan. Please go ahead.

William Peterson: And as a reminder, we kindly ask that you please limit your questions to one and Our first question will come from the line of Bill Peterson with J.P. Morgan. Yeah, hi, good morning. Thanks for taking the questions. And and also a nice result in 2024. When looking back at your guidance from last year, coming in at the high end on both revenues and adjusted EBITDA, so nice execution.

Bill Peterson: Yes, hi, good morning, Thanks for taking the questions and also a nice result in 2024 when looking back at your guidance from last year coming in at the high end on both revenues and adjusted EBITDA, So nice execution.

William Peterson: My first questions on the on the on the loan and the status of the loan Chris, you can shed some light on when you expect the second drawdown to occur. Is there any conditions that must be fulfilled? I mean, how are discussions happening with the administration? What avenues do you have to counter any attempts to claw back the loaner or with this loan apparently being delayed? Just kind of wondering what you have there.

So my first question is on the on the on the loan and the status of alone.

Bill Peterson: Of course, you can.

You had some light on when do you expect the second brought onto occur is there any conditions that must be fulfilled.

Bill Peterson: Sure.

Bill Peterson: <unk> is happening with the administration.

Bill Peterson: What avenues do you have the kind of any attempts to claw back the lauder or.

Bill Peterson: With this loan apparently being delayed.

Bill Peterson: Just kind of wondering what you have there and then really in the worst case scenario you talked about some financing it absolutely, but I assume those are near term but.

Badar Khan: And then really in the worst case scenario, you talked about some financing options, but I assume those are near term, but can you shed some more light on your non-dilutive financing options with or for example, I'm assuming maybe project financing with some debt or equity partners, but you know, what does the appetite look like for such options today? Sure, so look, we have a very productive relationship with the with the LPO team. You know, as we said here on this call and before, you know, we see charging infrastructure is actually key to the long-term competitiveness of the U.S.

Bill Peterson: Can you shed some more light on your non dilutive financing options with or without the loan for example, I'm, assuming maybe project financed with some data equity partners, but you know what is the appetite look like for such options today.

Bill Peterson: Sure Hey, Bill.

Bill Peterson: So look.

Speaker Change: We haven't we have a very productive relationship with the with the L. P O team.

Speaker Change: As we've said here on this call and before we see charging infrastructure is key to the long term competitiveness of the U S.

Badar Khan: auto industry as it competes against China. You know, as you know, and I think as everyone knows, this is not a conditional commitment but a legally binding contract that we're spending two months on and, you know, adds 1,000 jobs. All government funding is under review. I think everybody knows that. But we believe that they see what we see, what you're looking at today. These assets have very strong performance. The loan is a good deal for the U.S. government. It's been carefully structured to provide protection to the government and also flexibility for us. And so our confidence in the loan really hasn't changed.

Speaker Change: S auto industry as it competes against China.

Speaker Change: As you know and I think as everyone knows this is not a conditional commitment, but a legally binding contract that we're spending too much on it.

Speaker Change: 1000 jobs.

Speaker Change: All government funding is under review that I think everybody knows that.

Speaker Change: But we believe that they see what what we see and what you're looking at today.

Speaker Change: Assets have very strong performance loan is a is a good deal for the U S. Government, it's been carefully structured to provide protection to the government and also flexibility for us and so our confidence in the loan really hasnt changed.

Badar Khan: We received our first quarterly advance in January, and it's obviously too early for the next quarter. D.T.

Speaker Change: We received our first quarterly advance in January.

Speaker Change: And it's obviously too early for the next the next quarter, which would be in Q2.

Badar Khan: Thank you. You know, as we said in December and as we're saying today, you know, we've become EBITDA break-even this year and levered free cash flow positive in 2026, meaning if we hadn't financed this growth with the DOE loan, there are likely many others that really would have.

Speaker Change: As we said.

Speaker Change: In December and as were saying today, we'd become EBITDA breakeven this year and Levered free cash flow positive in 2026 meeting if we havent financed this growth with the Doe loan there are likely many others that that's what you would have.

Paul Dobson: And so, Paul, do you want to just comment on, you know, we are also, we've been talking about additional non-dilutive financing all year last year, at the beginning of this time last year, it was as an option, as an alternative to the DOE loan. Of course, it's now, we consider it as complementary to the DOE loan for additional financing. But do you want to maybe just talk about that? Yeah, yeah. So just as Badar mentioned, we're looking at complementary financing to sit alongside the DOE loan. First of all, you know, any projects that, you know, installs can't go into the DOE loan because they're not public.

Speaker Change: And so Paul do you want to just comment on that we are also we've been talking about additional non dilutive financing all year last year at the beginning of this time last year. It was as an option as an alternative to the Doe loan of course. Its now we consider is complementary to the <unk>.

Speaker Change: For additional financing, but you want to maybe sure yeah. Yeah. So, let's just about or mentioned, we're looking at complementary financing to sit alongside the Doe loan.

Speaker Change: First of all you know any projects that you know.

Speaker Change: <unk> can't go into the <unk> launch.

Speaker Change: Mike.

Paul Dobson: But also, we just think it's good practice to have alternative sources of funding available, lots of business to do that, and I think that's a good thing for Evgo to pursue. So we have been talking with various institutions, banks, and what they like about our model is the steady and predictable cash flows. They've seen our unit economics, they've seen everything that we've shown in the past. And so we're looking at structures that are somewhat similar to the DOE model, of course, not at the same length and term. But project financing to straight debts or some sort of a hybrid, we are we are.

Speaker Change: And also we just think it's good practice to have alternative sources of funding available.

Speaker Change: Lots of business to do that and I think Thats fair.

Speaker Change: Good thing for you to go to pursue so we have been talking with various institutions banks and <unk>.

Speaker Change: <unk>.

Speaker Change: What they like about our model is to steady and predictable cash flows exceeding our unit economics and everything.

Speaker Change: And we've shown in the past and so we're looking at structures that are somewhat similar to the deal. We always of course not at the same length of term.

Speaker Change: The project financing to strength that.

Speaker Change: So I'm kind of a hybrid we are we are.

Speaker Change: Sure that we want to pursue non dilutive funding as well so.

Andres Sheppard: Andres Sheppard, Stephen Gengaro, William Grippin, Christopher Pierce, Andres Sheppard, Andres Sheppard, Stephen Gengaro, William Grippin, Christopher Pierce, Evgo Andres Sheppard, Thanks, Badar and Paul for that.

Speaker Change: Like I said that the reception.

Speaker Change: The reception from the banks has been extremely positive.

Speaker Change: A proven developer.

Speaker Change: As you mentioned Bill you know execution, they can see the execution happening and they can see the cash flows as well so.

Speaker Change: Confidence, we're going to be able to execute on them on a complementary sources of financing.

Speaker Change: This year.

Speaker Change: Okay, Sputter and Paul for that and then my second question I'd like to kind of talk a little bit about the full year guide again in the context of last year proved to be conservative.

William Peterson: And then my second question, I'd like to kind of unpack a little bit about the four year guide again, in the context that, you know, last year proved to be conservative. So I guess what can drive the outcomes to the negative or positive end? And does any of this depend on DOE loan deployments or perhaps you can shed some more light or quantify how much GNA increase per stall is going up, maybe potentially offset by factors like utilization, charging rate and network throughput? And how should we think about those factors as part of the guide?

Speaker Change: So I guess, what can drive the outcomes to the negative or positive end.

Speaker Change: Is there any of us depend on the OE alone deployments or.

Speaker Change: Perhaps you can shed some more light or quantify how much G&A increase per store is going up maybe especially offset by factors like utilization charging rate in our.

Speaker Change: Network throughput.

Speaker Change: How should we think about those factors as part of the guide should we use for the fourth quarter is kind of a guideposts are you seeing any improvement relative to the to the exit rate from 2024.

William Peterson: Should we use for the fourth quarter as kind of a guidepost? Or are you assuming any improvement relative to the to the exit rate from 2024?

Badar Khan: Yeah, Bill, let me, let Paul ask, let me just ask Paul to respond to that. But just one thing I will say in response to that question up front, I did say in my script that we expect, you know, less than 10% of our revenue to come from new sales of electric vehicles in 2025, which is simply a reflection, and that will reduce over time. It's a reflection that this is a business model that's dependent on total VIO rather than annual EV sales. I think, Paul, you can provide some color on some of those. Sure.

Bill Peterson: Yes, Bill let me pull us less than me just that pull to respond to that but just one thing I will say.

Bill Peterson: In response to that question upfront I did say in my script that we expect.

Bill Peterson: Less than 10% of our revenue to come from new sales of electric vehicles at 2025, which is simply a reflection of not only reduce overtime. It's a reflection that this is a business model that's dependent upon total vio rather than annual sales I think Paul you could.

Bill Peterson: Some color on <unk>. So it's just a bit more background on me on the guidance. So we said revenue.

Paul Dobson: So just a bit more background on the, on the guidance. So we said revenue of $340 million to $380 million, we said two-thirds of that is charging revenue. And so the range we put around that really does reflect some variability, not much, but, you know, plus or minus 5% on throughput, you know, plus there is some risk around LCFS pricing as well. The other third of revenue is the non-charging revenue. And that range is due to some timing, just timing differences on contract. the timing of when we get contracts signed, permitting, logistics, and then some nebby risk as well.

Bill Peterson: 348 million to 380 billion we set.

Bill Peterson: <unk> is about.

Bill Peterson: As charging revenue and so the range, we put around that really does reflect some variability not much but plus or minus 5% on throughput plus there is some risk around <unk>.

Bill Peterson: <unk> pricing as well.

Bill Peterson: The other third of revenue.

Bill Peterson: Just the non charging revenue and that range is due to some timing just timing differences on contracts.

Bill Peterson: The timing of when we get contract signed permitting logistics and then some heavy risks as well.

Paul Dobson: We've also said G&A we expect will increase modestly from our Q4 run rate, which reflects our investments in technology, you know, plus some inflation. We said our adjusted EBITDA range is minus 5 million to 10 million positive. So with all of that above, and looking at our 2024 results, you should be able to derive what our adjusted gross margin would be. You know, using the midpoint fallback of those ranges. And you'll see that our adjusted gross margin percentage for both the charging business and the non-charging business is increasing.

Bill Peterson: We've also sat G&A, we expect will increase modestly from our Q4 run rate.

Bill Peterson: Which reflects our investments in technology.

Bill Peterson: Plus some inflation.

Bill Peterson: We said our adjusted EBITDA range is minus five.

Bill Peterson: <unk> 5 million to 10 million positive.

Bill Peterson: So with all of that above you can you can.

Bill Peterson: And looking at our 2024 results should.

Bill Peterson: It should be able to derive what our adjusted gross margin would be.

Bill Peterson: Using the mid point of all of.

Bill Peterson: Of those ranges.

Bill Peterson: And Youll see that our adjusted gross margin percentage for both the charging business Tanti non charging business is he is increasing as well.

Bill Peterson: So.

William Peterson: Thanks for sharing those insights and nice job on the execution in 2024. Thanks, Bill.

Bill Peterson: Okay. Thanks for sharing his insights and a nice job on the execution in 2024.

Speaker Change: Thanks, Bill Thanks Bill.

Chris Dendrinos: Your next question comes from the line of Chris Dendrinos with RBC TV. Yeah, thank you and good morning and echoing those comments on the good year last year. Um, maybe just to start out and following up on, on the prior question as it relates to, um, Trump executive orders. And I guess the question is, um, if, if, if there is like a funding halt this year or next year or something like that. How would you all respond? Would you would you curtail activity? Or would you look, I guess you mentioned backfilling with with some other opportunities for for maybe debt funding?

Kristen: Our next question comes from the line of Kristen <unk> with RBC capital markets. Please go ahead.

Kristen: Thank you and good morning, and echoing bills.

Kristen: Bill's comments.

Kristen: Good year last year.

Maybe just to start out and following up on the prior question as it relates to Trump executive orders and I guess the question is.

Kristen: If if there is like a funding this year or next year or something like that.

Kristen: How would you all respond would you would you curtail activity or would you look.

Kristen: Yes, you mentioned back filling with with some other opportunities for them.

Chris Dendrinos: So would that be the option to, I guess, continue the growth cadence that you're on right now? Chris, are you talking about the executive orders and their impact on electric vehicle sales? Well, just on, if say like the DOE loan was paused and they went, I guess took you all to court to try to fight it and not fund it. Right, right. Okay. So yeah, look, we, as we said before, on the last question, on Bill's question, you know, we, you know, we, we feel very confident in the loan. It's, it's performed, you know, the loan assets themselves are performing very strongly.

Kristen: Maybe at that funding so would that be the option to continue the growth cadence that you're on right now.

Speaker Change: Chris are you talking about the executive orders and their impact on electric vehicles sales.

Speaker Change: Is that well that's just on the Doe loan was with pause then David I guess took you all to court to try to fight it and not enough on that.

Speaker Change: Right right. Okay. So yeah look we as we said before on the last question on Bill's question.

Speaker Change: We feel very confident in the loan it's it's before you'll be out the loan assets themselves are performing very strongly.

Badar Khan: It's really a good, it's a good deal for the US government with, you know, a lot of protections for the government. So we feel pretty good about it. In terms of funding and cash flow, we have a very strong cash balance. We're starting the year with about $200 million. And so we feel, you know, very, you know, very good about that. Yeah. So, so that's right. So, you know, as we mentioned, we've got around $200 million in cash, you know, including the drawdown we took in, in January. When you step back and look at our model, you know, primary uses of our cash are the cash from operations and then for capital.

Speaker Change: It's a really it's a good deal for the U S government with a lot of protections for the government. So we feel pretty good about it in terms of funding and cash flow, but we have.

Speaker Change: Very strong cash balance.

Speaker Change: Starting the year with about $200 million and so we feel very very good about that.

Speaker Change: Or any other colo. So so that's right. So you know as we mentioned.

Speaker Change: Around $200 million cash, including the drawdown, we tuck them in January.

Speaker Change: You step back and look at our model.

Speaker Change: Primary uses of our cash our cash from operations and Capex.

Paul Dobson: So since we're going to be break even in 2025, that implies that our operating cash flow is close to break even as well. You saw in 24, our cash from operations, we used 9 million, which was a significant improvement over 2023. So, you know, you can cast that. and say that's more or less breakeven as well in 25. So that leaves CapEx as kind of the swing factor. So my net CapEx is expected to be $160 to $180 million. which includes build-outs not only for the 2025 stalls, but also for 2026 vintage as well. And we have the option of course, to either speed up or slow down the deployment of those stalls if we choose, depending on funding or for any.

Speaker Change: So since we're going to be EBIT.

Speaker Change: EBITDA breakeven in 2025 that implies that our operating cash flow was close to breakeven as well you saw in 24, our cash from operations, we used $9 million.

Speaker Change: Which was a significant improvement over 2023. So you can cast that forward you say, that's more or less breakeven as well in 'twenty five.

Speaker Change: So that means capex is kind of a swing factor. So our net capex is expected to be $160 million to $180 million, which.

Speaker Change: Which includes build out not only for the 2025 stores, but also for 2026 entities as well and we have the option of course to either speed up or slow down the deployment of those stores, if we choose depending on funding or for any other reason.

Paul Dobson: And just to reiterate, we are pursuing complimentary non-dilutive financing. and confident we'll be able to put something.

Speaker Change: And just to reiterate we are pursuing complementary non dilutive financing.

Speaker Change: And confident we'll be able to put something in place this year.

Speaker Change: Got it Okay, and then maybe as a follow up you highlighted some opportunities.

Badar Khan: Okay, and then maybe as a follow up, you highlighted some opportunities on the EV charging station side, those private stalls. Can you maybe, I guess, talk about the strategy there? And how does that compare with the public network stations? Yeah, absolutely. Yeah, look, so we've been, we've been building and operating these dedicated sites, dedicated hubs for, you know, autonomous vehicles, fleet partners, actually for a couple, you know, for a number of years. Last year, we more than doubled the number of stalls that are operational, these dedicated stalls from 210. And that's why we actually separated it out from the public network.

Speaker Change: Charging station side, the private stalls can you maybe.

I guess talk about the strategy, there and how does that compare with the public network stations.

Thank you.

Speaker Change: Yeah, absolutely yeah. It looks so we've been we've been building and operating these dedicated.

Speaker Change: Sites dedicated hubs for autonomous vehicle fleet partners actually for a couple of you know for a number of years last year, we more than doubled the number of stores that are I don't want.

Speaker Change: Better operational use dedicated home schools from two 110, and that's why we actually separate it out from the public network.

Badar Khan: We, you know, these are, we received a fixed dollar amount for the, on a monthly basis for these stalls where the electricity is passed through. And so we consider, you know, it's a different revenue model. In terms of relative attractiveness, margins for this business are a little less, a little lower than our public owned and operated, quite a bit higher than the margins from our extend business. But of course, they don't come with any utilization variability. And so we actually quite like this segment. And I think, as we said, last year, at the end of last year, we actually think that this autonomous vehicle, robo-taxi space, you know, could grow quite a bit faster over the coming years than maybe we thought previously, especially since the election.

Speaker Change: We know these are.

Speaker Change: We received a fixed dollar amount.

Speaker Change: For the on a monthly basis for these stores, where the electricity is a pass through and so.

Speaker Change: We consider it's a different revenue model.

Speaker Change: In terms of relative attractiveness margins for this business are a little less a little lower than our public owned and operated quite a bit higher than the margins from our extend business, but of course, they don't come with any utilization.

Speaker Change: Our ability and so we we actually quite like this segment.

Speaker Change: And I think as we said.

Speaker Change: Last year at the end of last year, we actually think that this autonomous vehicle robo taxi space.

Speaker Change: Could grow quite a bit faster over the coming years, and maybe we had thought previously, especially since the election and so we're quite excited by this we estimate there's not a lot of data on this but we estimate it at about a 20% share.

Badar Khan: And so we're quite excited by this. We estimate, there's not a lot of data on this, but we estimate we have about a 20% share of dedicated hubs for autonomous vehicle partners.

Speaker Change: <unk> dedicated hubs for autonomous vehicle partners today.

Badar Khan: Got it. Thank you.

Speaker Change: Got it thank you.

Speaker Change: Yep.

Douglas Dutton: Our next question comes from the line of Douglas Dutton with Evercore ISI, please go ahead. Thank you. Hey, team. Thanks for having me on.

Speaker Change: Our next question comes from the line of Douglas <unk> with Evercore ISI. Please go ahead. Thank.

Speaker Change: Thank you Hey team. Thanks for having me on I was just curious about how the strategy has maybe shifted on the prioritization of geographic growth over the next few years, you know I understand the commentary about tripling the number of stores, but as this current administrations, we will call. It more limited scope on electrification had you guys, rethink, which states or markets to focus on.

Douglas Dutton: I was just curious about how the strategy has maybe shifted on the prioritization of geographic growth over the next few years. I understand the commentary about tripling the number of stalls, but has this current administration's, we'll call it, more limited scope on electrification had you guys rethink which states or markets to focus on, maybe those where EV density is already at critical mass? Yes, look, let me just just comment a little bit on the the the impact on electric vehicle sales. As I said in my remarks, our business is driven by the difference between the supply of DC fast charging and demand in terms of overall VIO, not annual sales.

Speaker Change: <unk>.

Speaker Change: Those were EV density is already at critical mass.

Yes look let me just just comment a little bit on the.

Speaker Change: The impact on electric vehicles sales as I said in my remarks.

Speaker Change: Our business is driven by the difference between the supply of DC fast charging and demand in terms of overall vio not annual sales and that supply has exceeded demand for years. It's why we've seen a fourfold increase in utilization or.

Badar Khan: And that supply has exceeded demand for years. It's why we've seen a fourfold increase in utilization over the last three years. And so that's really what's driving the economics in our business. As demand grows, we benefit with better utilization. If demand slows, what we have already seen is the supply of fast charging across the industry seems to slow, and therefore we benefit because we've got, you know, supply exceeds demand. If charging supply grows, in other words, if other companies, charging companies are building out charging infrastructure, we know that stimulates demand. This is not a zero sum game.

Speaker Change: For the last three years.

Speaker Change: And so that's really what's driving the economics in our business as demand grows we benefit with better utilization if.

Speaker Change: If demand slows what we have already seen is the supply of fast charging fast to get this industry seems to slow and therefore, we benefit because we got supply it seems to bat if charging supply grows in other words. If other companies are charging companies, who are building out charging infrastructure, we know that stimulates to me.

Speaker Change: This is not a zero sum game and we also benefit we actually think we benefit because we've got better located stores and we are singularly focused on usage. Unlike many other charging companies and so this is actually a pretty resilient business model in terms of your specific question around geographic expansion we.

Badar Khan: And we also benefit. We actually think we benefit because we've got better located stores and we are singularly focused on usage, unlike many other charging companies. And so this is actually a pretty resilient business model.

Badar Khan: In terms of your specific question around geographic expansion, we are increasing the share of our store growth and network expansion outside California. That's been a trend that's been underway for a number of years. In the fourth quarter of last year, we saw usage inflect for the first time where the rest of the United States is now greater than California. And we're seeing very strong utilization in many of these non-California markets. And that's, you know, that's really, we'll be following demand. We're going to build our network plan is designed to follow demand. And that's really what we're doing.

Speaker Change: Increasing the share all of our.

Speaker Change: Our store growth and network expansion outside California, that's been a trend that's been underway for a number of years and the fourth quarter of last year, we saw usage.

Speaker Change: Inflect for the first time, where the rest of the United States is now greater than California, and we're seeing very strong utilization in many of these non California markets and that's that's what we will be following demand.

Speaker Change: And to build our network plan is designed to follow the bad and that's really what we're doing.

Speaker Change: Okay.

Badar Khan: Awesome. That makes a lot of sense. Thank you, team.

Speaker Change: Awesome that makes a lot of sense. Thank you team.

Speaker Change: Yes.

Gabe Daoud: Our next question comes from the line of Gabe Daoud with T.D. Cowan. Thanks. Hey, good morning, everybody.

Speaker Change: Our next question comes from the line of Gabe Daoud with TD Cowen. Please go ahead.

Speaker Change: Thanks, Hey, good morning, everybody.

Gabe Daoud: I was hoping we can maybe, maybe focus on CapEx just for a minute. And has there been any sensitivities or studies that you guys have done with respect to potential tariffs and how that impacts your per stall CapEx figure over time? Again, we really have sort of minimal impact from these tariffs, direct impact from these tariffs. We don't source our chargers from China. I think, as you know, we are, you know, our supply chain is really not impacted by Canada or Mexico tariffs. Our hardware vendors have operations in the United States for BABA-compliant shipments. And, you know, if, you know, if things continue to change for whatever reason, you know, we can ramp up that production if we need it.

Speaker Change: I was hoping we could maybe oh, maybe focus on Capex just for a minute and has there been any sensitivities are studies that you guys have done with respect to potential tariff.

Speaker Change: How that impacts your per store capex figure over time.

Speaker Change: Okay.

Speaker Change: Really have sort of minimal impact from these tariff direct impact from these tariffs.

Speaker Change: We don't source, our charters from China, I think as you know.

Speaker Change: R R.

Speaker Change: Our supply chain is really not impacted by Canada or Mexico tariffs.

Our hardware vendors have operations in the United States for Baba compliant that shipments and.

Speaker Change: If if.

Speaker Change: Things continue to change for whatever reason.

Speaker Change: We ramp up that production, if we need it.

Badar Khan: In the reality, we really have a lot of options in our supply chain, you know, and we are in discussions with our supply chain in different geographies pretty much all the time. And so at this point, with respect to what's been announced, we really don't have much impact in our direct business, you know, in terms of our charging infrastructure. And in terms of indirect impact on EV demand, as I said already, you know, our business is a resilient business model where, you know, our economics and our utilization is driven by the delta between supply, you know, supply of EV versus demand of EV versus supply of charging infrastructure.

Speaker Change: And the reality, we really have a lot of options in our supply chain.

Speaker Change: And we are in discussions with our supply chain.

Speaker Change: And different geographies pretty much all the time and so at this point with respect to what's been announced we really don't have much impact in our direct business in terms of our charging infrastructure.

Speaker Change: And in terms of indirect.

Speaker Change: <unk> on EV demand as I said already.

Speaker Change: Business is a resilient business model, where our economics and how utilization is driven by the the delta between supply supply of ABB.

Speaker Change: <unk>.

Speaker Change: Demand of EV versus supply charging infrastructure and that's been an imbalanced years excuse me.

Badar Khan: And that's been an imbalance for years. And that's really what's driving it. Thanks, Badar. That's helpful.

Speaker Change: Sort of what's driving that growth.

Speaker Change: Yeah.

Speaker Change: Thanks, that's helpful and.

Badar Khan: And then I guess just as a follow up, on the demand charge side, could you maybe give us an update on where you stand with some utilities and some restrictions on extending or instituting demand charge holidays? And do you think there's maybe a risk over time as there's obviously significant expected low growth in the U.S. for the first time maybe ever on AI data centers, etc.? But maybe how does that potentially impact like demand charges and demand charge holidays? Thanks, guys. Yeah, we've got demand charge reductions or holidays across the vast majority of our kilowatt hours.

Speaker Change: And then I guess, just as a follow up.

Speaker Change: On the demand towards side.

Speaker Change: Could you maybe give us an update on where you stand with some utilities in some jurisdictions on <unk>.

Speaker Change: Extending or instituting demand towards holidays and.

Speaker Change: Think there's maybe a risk over time is there is obviously a significant.

Speaker Change: The expected load growth in the U S for the first time maybe ever.

Speaker Change: AI data centers et cetera, but maybe how does that potentially impact like demand charges and demand towards holidays Thanksgiving.

Speaker Change: Yeah, we've got demand charge.

Speaker Change: The reductions of holidays across.

Speaker Change: The vast majority of our kilowatt hours.

Speaker Change: Uh huh.

Badar Khan: And as utilization and throughput per stall on a per site basis continues to grow, clearly the impact of demand charges just becomes smaller, frankly, over time. And so it's one of the reasons where we're seeing operating leverage in gross margin. And as throughput per stall continues to grow, as you've seen, throughput per stall has grown five-fold. Throughput per stall over our network over the last three years, the impact of demand charges just becomes smaller and smaller. Got it. Makes sense. Thank you.

Speaker Change: Today.

Speaker Change: And ours as utilization and throughput per store on a per site basis continues to grow.

Speaker Change: Clearly the impact of a demand charges just becomes smaller frankly over time and so it's it's one of the reasons why we're seeing operating leverage in gross margin.

Speaker Change: And as a throughput per store continues to grow as you've seen throughput per stall has grown five fold.

Speaker Change: <unk> first of all will go over our network over the last three years.

Speaker Change: The impact of demand charges, just becomes more and more over time.

Speaker Change: Got it got it makes sense. Thank you.

Speaker Change: Yeah.

Patrick Ledwith-Steeple: Our next question comes from the line of Patrick Ledwith-Steeple, please go ahead. Hey, it's Badar for Stephen Gengaro. Thanks for taking the question. Would you be able to give us details on how you think of utilization evolving in 2025 based on your guidance? And longer term, there's sort of a sweet spot of utilization across the network that you're targeting, understanding that if utilization gets up to, I imagine, in the 70 plus percent range, then drivers would be waiting to charge at your station. Yeah, look, let me I'll ask Paul just to comment on 2025. But I mean, just at a very high level.

Patrick: Our next question comes from the line of Patrick <unk> with Stifel. Please go ahead.

Patrick: It's Matt on for Stephen J, Gary Thanks for taking the questions.

Patrick: Would you be able to give us details on how you think of utilization evolving in 2025 based on your guidance.

Speaker Change: And longer term is there sort of a sweet spot of utilization across the network that you are targeting understanding that if utilization gets up to I imagine in the 70 plus percent range, then drivers would be waiting to charge at your stations.

Speaker Change: Yeah, Let me I'll ask Paul just to comment on 2025.

Speaker Change: But I mean, just at a very high level.

Badar Khan: You know, we're at 24% utilization, we just updated our long term target, just at the end of last year, from our previous target, and we're we're already up to 25%. I'm already in that range. As you saw in one of the slides, roughly two-thirds of our charging stalls are already over 15%. Almost a third are already over 30%. And so we might find ourselves, over the course of this year, updating that long-term target again. In terms of taking a step back, we have the scale and the sophistication today. to deploy pricing and customer marketing, because we have the scale and the sophistication to do this, to be able to go from not just building charging stations and hoping people show up, to actually influencing and shaping who is charging when, and at some point where, right now there's not enough density of these charging.

Speaker Change: We're at 24% utilization, we just updated our long term target just at the end of last year.

Speaker Change: From our previous target and where we're already up to 23 point to twice with 26 of them already in that range as you saw in one of the slides.

Speaker Change: Two thirds roughly two thirds of our chartering stalls are already over 15% almost a third are already over 30% and so we might find ourselves over the course of this year update in that long term target again in terms of taking a step back.

Speaker Change: We have the scale and the sophistication today to deploy pricing.

Speaker Change: And customer marketing, because we have the scale and the sophistication to do this to be able to to be able to go from not just building charging stations and hoping people people show up to actually.

Speaker Change: Influencing and shaping who is charging when and at some point where right now there's not enough density of these charging stations, there's enormous white space and that's pretty.

Paul Dobson: enormous white space. And that's pretty that and we're doing that to allow us to see increases in charging without congestion. And so, you know, we think we're quite sophisticated there. And over the course of this year, we may find ourselves updating utilization again. But as a reminder, throughput per stall is both utilization and charge rate. We have a charge rate tailwind because of faster batteries in the cars. And our network is getting faster and faster every month as we deploy 250 kilowatt chargers. Those two things are what drives. the volume and our price times volume formula.

Speaker Change: And we're doing that to allow us to see increases in charging without congestion.

Speaker Change: And so we think we're quite sophisticated.

Speaker Change: Decatur, there and over the course of this year, we may find ourselves updating utilization again, but I said.

Speaker Change: A minder throughput per stall as both utilization and charge rate, we havent charge rate tailwind.

Speaker Change: A faster batteries for cars and our network is getting faster and faster every month as we spoke to you, but two kilowatt Chargers. Those two things are what drives the volume and our price times volume Formula, but Paul do you want to comment on <unk>.

Paul Dobson: But Paul, you want to comment on 20? So, so yeah, without repeating too much of what you just said, Badar, but you know, if you look at our utilization from our, from the slide that we showed, our unit economics, We went from 19% in 2023, the end of 2023. 24%, so five-point increase in one year. As Badar mentioned, our guidance of 23 to 26, we're already in the range now. So when you're modeling for 2025, I encourage you to put utilization at the highest end of the range. And as you mentioned, we may revisit that.

Speaker Change: So again without repeating too much but you just set that up but if you look at our utilization.

Speaker Change: On the slide that we showed on our unit economics.

Went from 19% in 2023 at the end of 2023 or Q4.

Speaker Change: 24%, so five point increase in one year.

Speaker Change: That are mentioned in our guidance.

Speaker Change: 326 were already in the range now so when you are modeling for 2025 eight current you to put utilization at the highest end of the range.

Speaker Change: You mentioned it we may revisit top.

Paul Dobson: in 2020, you know, later on this year, as we as we get more information about the performance of our stoves. And then charge rates similarly increasing from 43 kilowatts to 47 kilowatts in T424. So up for, you know, we continue to see that increasing as newer vehicles with faster charge speeds hit the market. And we deploy more 350 kilowatt chargers out there too, which are able to so we see a big increase there or an increase there throughout 2020. As Badar mentioned, in terms of, you know, it's not just utilization, it's one thing that we're learning as well.

Speaker Change: In 2020 later on this year as we as we kept more information about the performance of our stock and then charge rate Similarly, increasing from 43 kilowatts to 47 kilowatts.

Speaker Change: For 2000, or so up for <unk>.

Speaker Change: We continue to see that increasing as newer vehicles.

Oster: Oster charged speeds hit the market.

And we deploy more 250 kilowatt charters out there too much here, but youre able to accommodate that.

Oster: So we see a big increase there and increase their throughout 2025.

Oster: That are mentioned in terms of you know it's not just utilization is one thing that we're learning as well.

Badar Khan: Time of day is almost just as important in terms of how we manage utilization, so we're finding in some cases we have chargers. Floyd where they're being utilized, you know, at 15% utilization at three o'clock in the morning. It's going to be incredible to see, but how we influence when those chargers are being used through pricing signals and other means, other marketing, is going to be important for us to manage utilization going forward.

Oster: Time of day is just it's almost just as important in terms of how we manage utilization. So we're finding in some cases, we have chargers.

Oster: Floyd, where they're being utilized.

Oster: 15% utilization at three o'clock in the morning, which is incredible.

Oster: See but you know.

Oster: How we influence when those charters are being used to pricing signals and other means other marketing is going to be important forest manage utilization going forward.

Badar Khan: All right, great. That's that's very helpful. Just a follow up. I know in the past you said non Tesla vehicles make up the majority of the throughput on the network, but just curious if you've seen any uptick in Tesla vehicles charging on the network, especially since it opened its network to the other OEMs. Yeah, I mean, look, so Tesla vehicles generally, as you know, as we've said before, don't charge, haven't historically charged our network. With the introduction of the NAX cable, Stephen, we are really excited to be able to start charging and attracting Tesla vehicles on our network, without an adapter, with a native connector.

Oster: Alright, great that's very helpful.

Oster: Just a follow up I know in the past you've said non Tesla vehicles make up the majority of the throughput on the network.

Oster: Just curious if you've seen any uptick in Tesla vehicles charging on the network, especially since it opened its network to other Oems.

Oster: Yeah. So you know Tesla vehicles generally as you know as we said before.

Don't charge Havent historically charged on our network.

Oster: With the introduction of the next cable Steven we are really excited to be able to start charging and attracting Tesla vehicles on our network without an adapter with a native connector.

Badar Khan: And that represents another source of increase in throughput on our network, without any impact on, without any increase in PVBIO. Our first site with NAX cables are now deployed. It's a pilot site. So it's too early for me to comment on the data. I will say I'm excited that we've got the NAX cable deployed and we're seeing, clearly we're seeing, you know, Tesla vehicles charged in our network at higher rates. ever seen before, but it's too early to be able to project that out across the rest of our network. And we will be looking to increase the deployment of these next cables throughout.

Oster: And that represents another source.

Oster: <unk> of increase in throughput on our network without any impact all without any increase in P. E. B I O. Our first site with IMAX cables are now deployed it's a pilot site.

Oster: So it's too early for me to comment on the data I will say I am excited that we've got the next cable deployed and we are seeing clearly we're seeing you know Tesla vehicles charged now that work at high rates that we've ever seen before but it's too early to be able to project that out across the rest of our network and we will be looking to increase the deployment of these.

Oster: Next cables throughout the course of this year.

Oster: Yes.

Badar Khan: Great, thanks much.

Oster: Great. Thanks, so much I'll turn it back.

Operator: I'll turn it back.

Oster: Yep.

William Grippin: Our next question comes from the line of William Grippin with UBS. Please go ahead. I will. Thank you. Good morning, everybody. My first question here was just based on the SCID-based hardware that that you've talked about deploying here in 2025.

Speaker Change: Our next question comes from the line of William <unk> with UBS. Please go ahead.

Speaker Change: Thank you good morning, everybody.

Speaker Change: The first question here was just based on.

Speaker Change:

Speaker Change: The skip based hardware that you've talked about deploying gear at 2025.

Badar Khan: I don't think you gave the number, but To what extent could that drive some cost reductions for 2025 vintage CapEx, and could that potentially offset the loss of 30c tax credits, should that actually happen? Yeah, I mean, look, the, I mean, let's just quickly just take a step back on the 30C tax credits. These are, this is, I think, less than half a percent of the total cost of the IRA, the 30C. It's, they're technology neutral, they're bipartisan supported because they are incentives for all kinds of charging infrastructure, not just electric vehicles. And these federal incentives, they represent about 10% of our gross capex per store.

Speaker Change: I don't think you gave the number but.

Speaker Change: To what extent could that drive some cost reductions for 2025 vintage capex and could could that potentially offset.

Speaker Change: The loss of 30 C tax credits should that actually happened.

Speaker Change: Yeah, I mean look the.

Speaker Change: I mean, let's just quickly just take a step back on the 30 <unk> tax credits. These are.

Speaker Change: This is I think less than a half a percent of the total cost of the I R. A.

Speaker Change: <unk> see.

Speaker Change: It's their technology neutral the bipartisan supported because they are incentives for all types of charging infrastructure not just electric vehicles and.

Speaker Change: These federal incentives are they represent about 10% of our gross capex per store.

Badar Khan: And so, you know, that's why I keep saying our business is really not reliant on federal incentives. The charger capex reduction program that we have in place through the MOU, through signed agreement now with Delta, is looking at a 30% improvement in gross capex per store. We've seen a 9% improvement in 2024 versus what we were expecting for 2024. We see a modest improvement next year in the overall average gross capex per store, which includes the impact of the higher percentage of prefab skids that we've got going on, as well as other, you know, efforts around equipment, site design, you know, construction processes.

Speaker Change: And so.

Speaker Change: That's why I keep saying our business is really not relying on federal incentives.

Speaker Change: The charge or Capex reduction program that we have in place.

Speaker Change:

Speaker Change: Two the Mou signed.

Speaker Change: Signed agreement now with Delta is looking at a 30% improvement in gross Capex per store, we have seen a 9% improvement in 2024 versus what we were expecting for 2024, we see a modest improvement next year.

Speaker Change: The overall average gross capex per store, which includes the impact of the the higher percentage of pre fab is that we've got going on as well as other efforts around equipment site design.

Speaker Change: Construction processes.

Badar Khan: We, the only reason why it's an average, it's a modest improvement, is because we're introducing flagship stores. As a reminder, we're deploying about 400 flagship stalls over the next few years through our GM relationship. They come with a higher price. They obviously come with a significantly higher offset to make it an economically attractive. But in other words, absent that, we're normalizing for that, we're continuing to see incremental improvements in gross capex per stall before our next generation of charging equipment, which will take us to a 30% reduction. Got it.

Speaker Change: The only reason why it's an average it's a modest improvement is because we're introducing flagship stores. This year. As a reminder, we were deploying about 400 flagship stores over the next few years to our GM relationship they come with a higher price. They obviously come with a significant.

Speaker Change: Higher offset to make it an economically attractive deal for us, but in other words absent that we're normalizing for that we're continuing to see incremental improvements in gross capex per store before our next generation of charging equipment, which will take us to a 30% improvement.

Speaker Change: Yeah.

Speaker Change: Got it and then just wanted to follow up here on the pilot site with the next connector I know you said it was early but could you speak to what maybe some of the early observations have been here in terms of charging behavior and maybe mix of vehicles.

Badar Khan: And then just wanted to follow up here on the pilot site with the next connector. I know you said it was early, but could you speak to, you know, what maybe some of the early observations have been here in terms of charging behavior and maybe mix of vehicles? Well, it's really too early. We've got more Tesla vehicles charging, clearly, and so we're excited by that. We've done very little marketing, or no marketing, frankly, on those Tesla sites, and so until we've done that, it's hard for us to be able to say, okay, now this is something that we can take as a data point to inform our deployment over the course of the rest of the year.

Speaker Change: Well, it's really too early.

Speaker Change: We've got more Tesla vehicles, charging clearly and so we're excited by that.

Speaker Change: We've done very little marketing or low marketing frankly, those pesticides and so until we've done that.

Speaker Change: It's hard for us to be able to say okay. Now. This is something that you can take the we can take as a data point towards format deployment over the course of the rest of this year.

Badar Khan: We're thrilled that... I appreciate the time. Yeah.

Speaker Change: We're thrilled that.

Speaker Change: Fair enough I appreciate the time.

Chris Pierce: Go ahead. This final question will come from the line of Chris Pierce with Needham. Uh, hey, not to belabor the text, but Tesla and Hatch... But is that something you plan to accelerate this year, given prior expectations, given sort of... public sentiment towards leadership there? Or again, too early to kind of make any statement? Chris, I think, so in terms of the deployment of NACS connectors, yeah, we, you know, there, we are, as a company, we, we charge all electric vehicles. That's, you know, been our policy and our philosophy and our strategy. You know, we, in our charging, in our charging lab out in California, we are bringing in and testing all electric vehicles, including test-driven We're excited about the standardization of cables.

Speaker Change: Yes.

Speaker Change: Go ahead.

Speaker Change: Our final question will come from the line of Chris Harris with Needham. Please go ahead.

Speaker Change: Oh, hey, not to belabor the taxes the next.

Speaker Change: The Tesla and hacks point, but is that something you plan to accelerate this year given prior expectations given sort of.

Speaker Change: Public sentiment towards our leadership, there or again too early to kind of make any statements.

Speaker Change: Chris I think so in terms of the deployment of Max connectors.

Speaker Change: There we are.

Speaker Change: Company, we charge all electric vehicles, that's been our policy and our philosophy and our strategy.

Speaker Change: We are charging in our charging lab out in California, we are bringing in and testing all electric vehicles, including Tesla vehicles.

Speaker Change: We're excited about the standardization of the tables I think its a it actually simplifies the customer experience.

Badar Khan: I think it actually simplifies the customer experience. And so we're, you know, we're excited about deploying NAX cables. I've been talking about it all year, last year, and we've got the first site now with the NAX cable as a pilot.

Speaker Change: And so we're we're excited about deploying next cables have been talking about it all year last year and where we've got the first site now with the next cable as a pilot we expect to be able to deploy suezmax cables throughout our network either through retrofit I think starting probably with retrofitted and then into two.

Badar Khan: We expect to be able to deploy those NAX cables throughout our network either through retrofit, I think starting probably with retrofit and then into new stalls probably late this year or next year. And as I said, it allows us to grow through without any increase in BIO. It's another one of the reasons why this business model in our company in particular is so resilient.

Speaker Change: New stores are probably late this year or next year.

Speaker Change: And as I said, it allows us to grow through it.

Speaker Change: Without any increase in V. I O. It's another one of the reasons why.

Speaker Change: <unk> business model and our company in particular is so resilient.

Badar Khan: Okay, and then you sort of hit on the director, you know, directions of the business, regardless of what happens on EV adoption, or, you know, competition on the charging side of the world. So when you see someone like Iona move from beta to national release, and talking about putting 1000 fast charging stars out there this year, what are your kind of like at a high level? How do you think about that? And how do you think about it? Kind of, I just kind of want to get your thoughts on that from a competition perspective. Yeah, I mean, this is, I mean, I think we've been saying for a while, this is not a zero sum game business, unlike many other sectors of the economy, as charging companies that deploy charging infrastructure, demand increases, we know that.

Speaker Change: Okay, and then you sort of hit on the director Directorate of the business, regardless of what happens on EV adoption or.

Speaker Change: Competition on the charging side of the world. So when you see someone like I own a move from beta to national or at least talking about 40000 fast Cherokee started that was out there. This year what are your kind of like at a high level. How do you think about that and how do you think about it kind of I just kind of want to get your thoughts on that or competition perspective.

Speaker Change: Yeah I mean this is I mean.

Speaker Change: I think we've been saying for a while this is not a zero sum game business. Unlike many other sectors of the economy is charging companies deploy charging infrastructure demand increases we know that we know that one of the reasons. There's two reasons why customers are still on the fence on whether to switchover to electric vehicles. One is the ups.

Badar Khan: We know that one of the reasons, there's two reasons why customers are still on the fence on whether to switch over to electric vehicles. One is the upfront price, despite TCO being lower. And the second is charging infrastructure, we know people are worried about range anxiety. And so as people are deploying charging infrastructure, it just stimulates demand, which is good for us. With respect to Iona, you're right, it's been almost a couple of years since Iona was announced. And I'm, I'm glad to see that they've got a handful of sites now finally operational. We obviously look at those sites.

Speaker Change: Front prices by Tcl being lower and the second is charging infrastructure. We know people are worried about raging society and so as people are deploying charging infrastructure. It just stimulates demand which is good for us.

Speaker Change: With respect to I honor that Youre right. Its been almost a couple of years since like autonomous announced that I'm I'm glad to see that they've got a handful of sites now finally operational we we obviously look at those sites.

Badar Khan: And, you know, our perspective, we've got, as you know, a very sophisticated network plan and site selection algorithms. It doesn't appear to us that those sites are sites that we would look at, in terms of maximizing utilization. And but again, many of these charging companies have goals other than utilization. One's Chasing Nevi awards, for instance, are clearly not focused on utilizing There's not a lot of growth of utilization of highways, and IONA may indeed have other goals beyond utilization for the network. Either way, for us, increasing charging supply results in increase in demand, and because we've got well-located sites, we think we're getting a disproportionate share of kilowatt hours.

Speaker Change: And our perspective, we've got as you know are very sophisticated network plan and site selection algorithms. It doesn't appear to us that those sites or sites that we would look at in terms of maximizing utilization and but again many of these charging companies have goals all of that utilization once chasing nervy.

Speaker Change: Awards for instance are clearly not focused on utilization because there's and there's not a lot of growth of utilization of highways and I automate indeed have other goals beyond utilization.

Speaker Change: The network either way for us.

Speaker Change: Creasing charging supply results the increase in demand and because we've got well located sites. We think we're getting a disproportionate share of kilowatt hours.

Badar Khan: Okay, thanks for the detail and good luck.

Speaker Change: Okay, basically the detail and good luck.

Speaker Change: Yep.

Badar Khan: That will conclude our question and answer session and I will now turn the call back over to Badar Khan for closing. Great. Well, thank you, everyone. We had yet another record quarter finishing off a record year. The charging infrastructure we're building is a key ingredient to the long-term competitiveness and sustainability of the U.S. automotive industry, and that's one of the reasons why what we do is so important. Unlike others in the charging space, we have a resilient business model that is set to deliver another year of strong growth and reaching EBITDA break-even. And I look forward to providing updates on our progress on this and our priorities and our earnings goals throughout the year.

Speaker Change: And that will conclude our question and answer session and I'll now turn the call back over to that archon for closing remarks.

Speaker Change: Great well. Thank you everyone. We had yet another record quarter, finishing off a record year the charging infrastructure. We're building is it.

Speaker Change: Key ingredients for long term competitiveness and sustainability of the U S automotive industry and that's one of the reasons why what we do is so important.

Speaker Change: Unlike others in the charging space, we have a resilient business model that is set to deliver another year of strong growth and reaching EBITDA breakeven and I look forward to providing updates on our progress on this and our priorities on our earnings calls throughout the year. Thanks very much everybody.

Badar Khan: Thanks very much, everyone.

Speaker Change: That will conclude today's call. Thank you all for joining you may now disconnect.

Operator: This concludes today's call. Thank you all for joining.

Speaker Change: Yeah.