Los Angeles — On Aug. 1, electric vehicle charging company EVgo reported earnings of $66.67 million for the second quarter of 2024. That’s 12 percent higher than what analysts were predicting of $59.29 million. EVgo has steadily increased its revenue over the last four quarters in a row.
In addition, the company reported a loss of only 3 cents a share. Analysts were expecting the company to report a loss of 12 cents a share. EVgo stock is priced at around $3.75 per share.
CEO Badar Khan had this to say during the company’s earnings call: “EVgo delivered yet another excellent quarter. We achieved record revenues over $66 million and charging network revenues grew 2.4x compared to last year, becoming the seventh sequential quarter of double-digits growth in charging revenue, and the sixth consecutive quarter of triple-digit year-over-year growth in network throughput. With the level of utilization and throughput we have in the network today, the annualized per store unit economics have improved over 300 percent in just a short six months.”
EVgo expects to turn a profit sometime in 2025 with increased usage of its EV charging stations.
“Charging network revenue more than doubled, driving an increase in total revenues,” Khan explained. “We grew our operational stalls by 37 percent compared to last year and are on-track to add 800 to 900 new owned-and-operated stalls this year. Customer accounts continued to grow faster than VIO growth in the second quarter, and EVgo recently surpassed 1 million customer accounts, an exciting milestone.”
The CEO says EVgo will attract more Tesla users at its charging stations with their new MAX cables. It will be compatible with Tesla’s NACS charging port.
“Finally, as the MAX cable is introduced, we expect EVgo to benefit more than other DCFC owner operators because we expect to be able to attract more Tesla drivers who represent roughly 60 percent of current VIO, as our stations are located closer to where drivers live and work versus highway-focused charging companies. DCFC hardware companies and those that operate but do not own DCFC networks and instead sell equipment to site hosts and other customers will benefit to a lesser extent from many of these drivers, because they generate one-time equipment sales versus recurring charging revenue that owner operators receive.”
The company hopes to have around 800-900 new charging stations Installed by the end of 2024. Meanwhile, EVgo is looking to have a total of 7,000 EV charging stations in its network in the next three to five years.
“If we’re only adding stalls at the rate we are today, at that point, we would expect cash flow per store across the whole network to be just under $40,000 per store annually, driven mostly by increased charge rates, and it’s one of the many tailwinds due to the increasing mix of higher charge rate vehicles and a very conservative utilization assumption, far lower than the top 15 percent of our stalls today, resulting in a level of throughput also lower than the top 15% of our stalls today.”
The CEO says its business will increase as more consumers switching from internal combustion engine vehicles to EVs.
“Looking at the total market, Bloomberg New Energy Finance forecast that EVs are expected to sell at a lower price point than ICE vehicles in 2026. Significantly, it’s important to note that B&F estimates that the total cost of ownership for EVs is already lower than ICE vehicles today. On top of VIO growth, EVgo benefits from multiple additional short and long-term tailwinds that are drivers of why throughput and charging revenue are growing and are expected to continue to grow faster than VIO growth. Rideshare is increasingly electrifying, and they will tend to charge at DCFC, not L2 locations.”
For more info about EVgo or to find a charging station near you, visit its official website at: https://www.evgo.com.
