Q2 Earnings: Charging Network Operator EVgo Earnings Beat Expectations

EV charging network operator EVgo delivered impressive second-quarter results that exceeded expectations, driven by a surge in electric vehicle (EV) users utilizing its charging network and robust growth in its private-label eXtend unit. These positive outcomes prompted the company to revise its full-year guidance upwards, igniting an approximately 8% increase in after-hours trading for its shares.

While EVgo reported a net loss of $21.5 million, or 8 cents per share, for the quarter, this was offset by the substantial growth in its core metrics. Notably, EVgo’s “network throughput,” which measures the total electricity supplied to its charging customers, surged by an impressive 147% year over year, reaching 24.9 gigawatt-hours in Q2. This boost was driven by a combination of factors, including a higher number of EVs on the road, the adoption of more powerful EV batteries requiring increased charging power, and greater utilization of EVgo’s charging infrastructure.

Another significant contributor to EVgo’s success was its “eXtend” unit, responsible for providing and managing chargers for corporate clients under their own brands. This segment accounted for around $33.3 million in revenue during the quarter, constituting nearly 66% of EVgo’s total revenue for the period. Notable partners in the eXtend program include major companies like General Motors, Pilot (a truck-stop operator), and Chase (a banking giant).

EVgo’s charging stall capacity also witnessed expansion, with approximately 3,200 fast charging stalls in operation or under construction by the end of June. This marked an increase from about 3,100 stalls at the close of the first quarter. Moreover, the company’s customer base experienced robust growth, as more than 82,000 new customer accounts were added during the period, bringing the total to around 688,000, reflecting a remarkable 55% year-over-year surge.

Elevated by these positive developments, EVgo revised its full-year revenue outlook to a range of $120 million to $150 million, up from its previous projection of $105 million to $150 million. The company also narrowed its estimated adjusted EBITDA loss to between $68 million and $78 million, refining the previous range of $60 million to $78 million.

As EVgo moves forward, its growth trajectory remains promising, further reinforced by the expected addition of between 3,400 and 4,000 fast charging stalls in operation or under construction by the end of the year.

In tandem with these announcements, EVgo shared news of an upcoming leadership transition. CEO Cathy Zoi is set to retire from the company in November, with board member Badar Khan poised to succeed her. Khan, a seasoned veteran with 25 years in the energy sector, and former president of National Grid’s U.S. operations, is expected to bring his extensive expertise to guide EVgo’s future endeavours.