In a positive turn of events for EVgo, the second-quarter revenue has exceeded Wall Street’s expectations, signifying the increasing traction of the electric vehicle (EV) charging network operator. With a narrower-than-expected loss and an upwardly revised guidance for the full year, EVgo is demonstrating its resilience and dominance in the market.
EVgo reported a loss per share of 8 cents, beating analysts’ consensus estimate of 27 cents. Additionally, their revenue stood at $50.6 million, surpassing the projected $29.6 million. It is important to note that a year ago, EVgo reported profitability of $17 million, but its current focus on growth and expansion has resulted in a strategic shift that prioritizes increasing market share over short-term gains.
CEO Cathy Zoi highlighted the significant growth in EVgo’s “network throughput,” which refers to the total amount of electricity provided to the charging customers. This metric witnessed a staggering year-over-year increase of 147% to 24.9 gigawatt-hours in the second quarter. The rise in network throughput can be attributed to the rising number of EVs on the road, the growing demand for faster charging due to more powerful EV batteries, and the increased utilization of EVgo’s chargers.
The Booming eXtend Unit
EVgo’s “eXtend” unit, which provides and manages chargers for business clients under their own brands, experienced significant growth during the period. Generating approximately $33.3 million in revenue, the eXtend unit contributed to nearly 66% of EVgo’s total revenue for the second quarter. Notable businesses like General Motors, Pilot, and Chase are among those that have embraced the eXtend program, signaling its success.
EVgo’s commitment to expansion is evident in the company’s continued increase in fast charging stalls. As of June 30, EVgo had approximately 3,200 fast charging stalls in operation or under construction, demonstrating a steady growth from the previous quarter. Furthermore, the company added over 82,000 new customer accounts during the period, resulting in a total of approximately 688,000 accounts as of June 30, marking a remarkable 55% year-over-year increase.
Revised Guidance and Optimistic Outlook
EVgo has adjusted its guidance for the full year, now expecting revenue between $120 million and $150 million. This revision reflects the company’s confidence in its growth trajectory and the positive market response to its services. Moreover, the adjusted EBITDA loss is now projected to be between $68 million and $78 million, indicating a more accurate range. The revised guidance showcases EVgo’s transparency and commitment to transparently communicate its financial expectations.
Leadership Transition
In separate news, EVgo announced that CEO Cathy Zoi will be retiring from the company in November. Board member Badar Khan, a seasoned energy sector veteran and the former president of National Grid’s U.S. operations, will assume the role of CEO. This leadership transition presents an opportunity for EVgo to benefit from Khan’s expertise and drive the company’s future growth and sustainability.
EVgo’s positive second-quarter results, beating revenue expectations and narrowing losses, underscore its strong market position and the surging demand for EV charging infrastructure. With its expanding network, successful eXtend unit, and a revised guidance indicative of continued growth, EVgo is poised to play a crucial role in the electrification of the auto sector. As the world accelerates towards a sustainable future, EVgo remains at the forefront of the EV charging industry, focused on providing reliable and accessible charging solutions for the ever-growing EV market.
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