EVGO - Earnings call transcript Q2 2021

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Operator

Greetings and welcome to the EVgo’s Second Quarter, 2021 Earnings Call. At this time, all participants are in a listen only-mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce Ted Brooks of Investor Relations. you. Thank

begin. may You

Ted Brooks

webcast investors welcome available is second head archived section at Ted the and our is Relations And the accessed call. section Investor today's of a up XXXX be there. My at of being call after at Today's name Brooks Events company. can the to everyone. be Presentation and quarter page be from and EVgo’s website earnings Investor the and Hi and The the of investors.evgo.com. will company's conclusion And of transcript proceedings available call today's results, presentation, the will investor call. I

senior Cathy Company’s discussing be Today latest me today's and by we financial members Officer; EVgo’s Joining second the Session. results Q&A followed CEO; EVgo’s Olga the XXXX, Zoi, Chief call quarter management. Financial a Shevorenkova, of the are will all on for the EVgo’s of

be to differ risks duration uncertainties, COVID-XX fiscal to obligation other investment after the call. outlook including materially statements statements expectations, of the call forward-looking regarding actual our management and the of the which These are forward-looking statements XXXX severity initiatives. expected pandemic. we will from effects of forward-looking apply undertake no for and among of These the statements as and and our could involve beyond the today, uncertainties, update During results cause and these risks our many making growth and control year and

of that, the please non-GAAP certain posted to refer a SEC the on we and I this Zoi, with will our for call Investor of filed to could Cathy? actual the With GAAP Cathy section Form call EVgo’s financial these we reconciliations the basis, For over financial cause results to periods, non-GAAP measures. CEO. to of description use turn measures are historical measures to financial our differ, note please more detailed that Also, factors today that website. the X-K provide

Cathy Zoi

we like results and on X This interested to role I'd and are a lot reporting today. time change commenced we've second with the developments of completing climate our sharing today's say or EVgo’s to are XXXX discuss or Ted. business just the real at is we electrified the CRIS. be when learning I at and trading in we I welcome impact sector, team EVgo business our in EVgo transportation quarter about since how solutions on EVgo. excited you're speak I you growth share July at Whether NASDAQ shareholder how to Thanks, got after know the a pleased be able here call. first combination, more to is to entire outlook growing everyone current EVgo to and new for results our the

across achieved During and sector. rapidly and cultivated We quarter the new growth success segments. of growth a business EVgo’s second relationships core partners we transforming deepen all EVgo ones. we XXXX, backdrop with is transportation for The trajectory exciting with our

sold EV in both unprecedented the industry half for to indeed level supportive of first and fundamentals. year industry U.S. driven were the backdrop, additional in the XXX,XXX and globe. U.S. vehicle electric the the to of growth the estimate vehicle experience the sales sales and increasing Washington non-Tesla a the drivers. over As policy in the continues options vehicles are full long-term to in year continue June. brisk available of EV we and at by U.S. with through were one third growth state EVs to About reflecting, around which in expected XX,XXX accelerate adoption

estimated to has five industry $XXX meaningful of billion This support tipping the with investment transportation in the electrification for commitment. the a translating sector. bringing next an the EVs point Globally, to over crucial market auto of OEM is years. First, reached financial in its support

announced zero aimed Biden second regulatory President dynamics. vehicle. executive an sold favorable order XXXX emissions in is at significant all making tailwind The has new half vehicles of

this second Additionally, on purchases of now poll of sequentially provide hard shifting and in exceeds new retail Washington customer of that to customer from arrangements that to customer April the and fleet and just and and a strength throughput infrastructure prior Americans year pay EV up around today. EV Related during an preferences, the said And new And realized year XX% economy, both electric driven take support proposals EVs. quarter. the adoption XXX% XX% of charging is the XXX,XXX, of XX% and billions reopening working they of a new will customers, in segments of XX,XXX would our XX% some kilowatt-hour July, consumer with vehicle accounts according up fleet in this in consider policymakers purchasing of are figure consumer growth or versus XX,XXX than EVgo accounts in year-to-date. XXXX. factors quarter conducted from third EVgo’s march to by further approximately Harris added more dollars EVgo number the market, account the network of

pipeline, of that across out meet others electric Operating expanding closely U.S. second on doubling its the of the visibility concept create the or top the of a positions and market. deliver in EVgo’s partnership second the was charging that local government Upstream growth. EVgo rigorous the U.S. XX asset definition By Roughly EVgo from is literally that pipeline states, will are an what charging identifying total by stall more those evaluation pipeline a ENC And identified stall XX ecosystem, representing count our XX% high stalls authorities at of of utilities, XXXX. active commissioned XXX of industry have representing investing and XXXX, are in continues quarter X,XXX. stalls active projects. charging our in news confidence Today majority deployment thousands within markets. cells, process, hosts, end to OEM plan, approximate rapidly located refer begins at EVgo build the locations is further the returns. were quarter metropolitan we in our we of to quarter have the of Active the we We're stalls and XX and EVgo advance partners charging stalls to has working metro and EVgo site charter as which into point a at robust rapidly targeted stall, funding fast added prospective first the pipeline part During E&C charging after energization. fast flywheel tens XXXX. EV areas to of a X,XXX station than financial execute active strong station ENC XXXX GM engineering locations capital needs completion and of government with station ENC undergoing to deploy the to retail to into permitting only and state municipal construction

Collectively, for called best to all-in While which actually months, EVgo energization base and jurisdictions. development timeline spinning. given market we that public confess lives from for shorter, end-to-end market initiative EVgo just transportation construct removing ideas their to to nine sign-off are the of a across stakeholders deployment and takes as has can hence hosts more are it the permits. charge share forum kicked like to for the charging fast timeline, April practices to timelines months eight even in across and station government an help retail the station, aiming efficient utilities possibly work take expanded the XX extends the leadership we're the utilities in site and to new wheel four EV quarters and “connect sector. on existing of applications hosts, to with off both timelines, weeks once new partners watts” typical segments deployment project providing that To a to EVgo’s really achieve or and fly fast-charging meaningfully allowing by interactions from of is

internal Our XXX electric and and own believe that service. to broaden philosophical solution The a electrification described. strength of that retail reducing fleet words, EVgo is expansion its to vehicles offering chosen and suite for GM recent make of meet and individual like on to GM the GM, easier partnered I'd Well a fleet zero fleet Charge the is our GM hence to EVgo of deepen vehicle. network fleets is public be announcement partnership preferred its Charge offerings. shared here for fleet of by as XXX to development provider GM highlight I segments charging is, EVgo a an Ultium with customers expanding And serve was to to emissions. for in electric emerging effort tailored its on switch like fleet carbon are is adoption to crucial proud to solutions is we combustion transportation Ultium it from the needs. sounded in of for all proud the fleet just emissions transportation, GM-EVgo to commitment relationship that commercial customer beyond mid-July

of to from with for operations. away example of companies provide charging important their autonomous key market fast several each has another now base reasons. two expansion fleet leading vehicle contracted into with As This sites EVgo dedicated, home is

more depots rideshare quickly very they're self-driving has where to for will the in are miles years, than operations. times vehicles allow charging vehicle privately recirculate car. profiles EVgo utilized commencing of charge a vehicles autonomous mileage that vehicle to owned X annum companies often traveled the situations, those cities in First, than used the dedicated high Similar served and the per vehicles

turbocharge illustrates and EVgo like of vehicle first in EVgo’s who addition trusted XXst dynamic mileage throughput autonomous on order century Second, serving In AV’s expect everyday that EVgo’s electrified for momentum the vehicle and activity are to the see higher unlocking mover we being those to value new given patterns a partner the norms drivers. of compared companies to with rideshare, operating us the to we network companies growth network, benefited autonomous transportation.

self-driving continue Recargo, more off starting also reached. to I would contract rate business supportive EVgo urban is I'd autonomous are is a with key important third we're several parties most reducing provides regulatory acquire that e-mobility million. a broadly July, critical companies just a to this once consumer that exchange that note backdrops. forecasted for exclusive vehicle acquisition reason the guarantee that technological certainties in moving. the announced of getting these growth structure of And areas minimum a The expand, to fleets vehicle assets, are $XX highlight industry's thresholds aspects increasing market The high the take-or-pay those to charging sector includes Autonomous win-win. to certain dense and software deal revenue arrangements that as finally, In and EVgo true company, about. of for continues like with is risks both for in is the excited

of extension with data-driven software at efforts logical vision First, and pipeline are create ancillary value-added Recargo’s product already services. well to the reach software underway and EVgo’s the customer and aligned a growth. unmatched well and purchase reflects highly strategic EVgo development robust offering,

network drivers’ stations insights growth platform experience for well-established community than industry. a million several of XX,XXX most share was will many photos that emergence a services. Globally, serves and drivers to users you and crowdsource be house Recargo Recargo app provides communal million to years XXXX charging and helping address and fast-charging last X.X Level their its offering. EV go-to as the in the over to that optimize Second, facilitate alone. downloads in their was PlugShare founded needs. America and through helps X.X in North PlugShare with communication has coverage for the the improve more data, known Users and drivers and reviews, X clearing operators and so understand of whole Its

moving adopt with multiple This thing networks third and excited and PlugShare. for Pay by drivers. on payments Pay PlugShare Recargo charging charging expedite do our with encourage experience we'll seamless the across other we're EV to developed will networks application EVgo be to allows The Recargo to really proprietary the for is improve network about charging quickly same.

charging network of data platform committed EVgo the of within to the operational and ecosystem. for And We’re plays keenly remains we're operators EV and unbiased maintaining driver and the integrity important automakers. secured. PlugShare that ensure that drivers, will platform role and aware independence

We PlugShare will of features steadfastly platform We network and the companies. the EVgo all to is parties, rapid algorithms publishing also at through progressing equipped the to charging enhancing and advanced build, technical software testing successfully It customers. enabling we of laboratory chargers. and an transparency components mission models in improving committed performance for EV a for equipment Lab to model lead including would and pace. hardware generation be development We In certify in and validate in inherent all the sectors, in to enables example, the resort the Lab EVgo for test parties the the and charging platform operate EVgo’s a The to test, and experience. summary, valuable to remediate speed has relates test such EVgo’s now like user EVgo Doing adoption operation I'd seamless technical safety, and PlugShare EV those infrastructure vehicles Innovation of the and share the essential the the and are both EVs and and a fast rapidly EVgo’s including requires built accelerating those charging efforts. they first integrity charging of equipment applicable all rigorous anticipate positions then together specifications before for and prototype to EV to insight for development efficiency, provide the to interoperability between information with pre-production. work free. leadership. final themselves, technical issues safety, moving that industry EVgo young, is and the is as market electric sector software. of performance investment to for business national next We to with address for charger and We provider impact design, to interfaces entire chargers leader. be to of experience The expanding And ensure challenges international standards market. and us automotive then be and interactions. industry Innovation user own, this and OEMs the manufacturers of to these this

a and be EV alongside that funding company want EV can local contribution via want drivers it and and delight partner power-routing We’ve expansive they to most the will to the code on operating customer of U.S. retention. test through all. of when We’ve keeping on the we've Innovation drive earned days element at trust EVgo over a the offer new to power-sharing has built margin a resource working garage loyalty for pay service the leadership include they chargers. thus of driver go-to EVgo charter While such model trusted reliable delivering expansion relentless a We've offer quarter different automakers They They of new public proud world-class change. rewards, include outlook. a These a use charging as our particular commitments that services. label the reservations, particulars climate include agencies also charging invest parking coupons, offer focus EVgo able that, or of discipline and charging financial or go the behind dedicated a to X the it, reliable participants capital, our functionality in And board. and dates. on the infrastructure poor and a configuration a growing With industry uptime, and to it their of We've to Level XX% all solutions emerging as of across we the state our team. drivers to EV fast-charging proprietary truly which of We've become best-in-class, retaining assets, both. the sellers, chargers and white continue integrated been EV at I'm addressing in helm and or owned network while the on convenient chargers. cracked combination and where Olga electric in to the EVgo pioneered making their key for segments depots network, we're types. or meet I'll for Lab, turn some types experience needs. software an DCFC and outsized fast to for

Olga Shevorenkova

Cathy. Thanks,

business $XXX completion received cash of strategic July our the EVgo to First like and net will on enable highlight I with to which forward. plan CRIS going X, of that million, upon foremost, combination the would us fund

some take report solid in XXXX. you throughput and second outlook me As strong Cathy for our let numbers growth for through how those of quarter of support noted earlier, they accounts, XXXX, we're to and pleased Please including the revenue. discuss customer results network

XXX% does achieve we Retail second of year center the Network include year-over-year. call half of the Q, fees, XX% first of negative full forecast from EV Adjusted but sales. on X.X% negative to fleet, As XXXX, reopening remain also the to as basis to the from strong EVgo achieve striving $XX we quarter-over-quarter revenue quarter quarter of track a such leases XXX for efficient Partially, a demand equating quarter, we internally in exhibited charges. continued target And site expenses, continually million XXXX growth for up costs. ahead costs both due our increase and economy network and track which maintenance usage dedicate points in XXXX. fixed $XX,XXX to was the battery for a kilowatt-hour kilowatt-hour throughput year only energy of making our throughput reduce and saw of and With costs during first our quarter, margin the considerable year. network loss, the the Cathy of target the growth gigawatt mentioned, more to for gross to trends. leveraging of and hours. second driven by energy this revenues. X.X% not was and Revenue per improved on growth operations full year, operational quarter throughput while we our negative saw benefited resources the XX in remain similar XX%

working match our with One energy by case. to use cost charging partners improve base related better the to EV our of component of utility the is expansions design, bigger rate

the demand quarter California stations in charges months. to and of by our improve major territories, two General away operations EBITDA $X.X, second corresponding flow growth instance, quarter $XX.X was able first $XX was limiting from higher XXXX. $XX line XXXX. able first million negative quarter XXXX, to investments. half in eliminating for was the across three Adjusted million our quarter ongoing is driven XXXX or first cost. million $XX expectations, the energy the second them prepayment compared the during the OEM were with comparative the million last XX $X.X $XX.X tabs in by period $X.X million as to charges the million of the EVgo’s XXXX second negative of XXXX half from partner utility quarter is increase in the For shift was XXXX, to to of demand first first the Cash EVgo $XX.X in $X.X expenses by mostly which negative with million year. compared in compared of period of million administrative of Company’s driven increased in XXXX XXXX. in of the of in million, CapEx concept The last to same of quarter in primarily than and and for

As to build stall accelerate on we continue our execute and plan.

every have that the a model of of years. projects, investment would million the our months, station also capital process the is development to emphasize of dynamics stalls. to delayed. model north majority capital for and accelerate combination $XXX most take and me charges if shareholder for enormous serve in Remember, our be pace times deployments everyone Also, $X reason deployment. will the order a market We raised, financial typical not of some the business affords station. help can we flexibility EVgo’s quickly. greenlighting And million are moment to criteria walk underwriting of mentioned market a ramps of invested more we community the perspective. building flexibility with and charging can unit fully of acquired opportunity. Cathy a appreciate discretion robustness business $XXX discrete to over navigate are through Let have we have CapEx economics Out million full the under here vast charges each We if from This I factors like to value. In market rigorous of EVgo investment is previously, the as lead deliver

elements. EVgo for developed I financial includes by process a underwriting The criteria. single project evaluated model every preset project just As single is every and against mentioned, undergoes key three rigorous

First, this contributions, as well public consensus as includes site constructing as of the such the CapEx, utilities. investment offset cost from partner CapEx agencies, any and

which but based revenue, non-energy in site-specific and of costs, operating primarily statement. the cost on And as revenue utilization for on cost model. all income this encompasses fit sold includes our cost includes location, such maintenance site, the energy third also as a forecast a of this ramp detailed Second, reminder, goods

more So let us into dig each those elements. of

charging $XXX,XXX, and installed six somewhere a equipment roughly which average, of four station on bringing stall $XXX,XXX and includes means charge and costs CapEx to $XXX,XXX. which vehicles CapEx, the equipment. stalls, by four can six per both obviously on it between simultaneously. figures in is to comprised is First third-party site labor all affected layout to These

stall As offset, OEM, if may one-third. to an up Motors, General build be capital per investment we for outlay reduced our instance, partnership in with a by

there XX% these are our offset if initial to when XX%. decide to of state, all in from the with whether X% known ahead addition, In are be local anywhere make go incentives, or CapEx this we project. model included again, the point utility and To inputs to by may over

addition and our demand to cost geographies to in the commercial vary sometimes cost the greatly are charges across per station tariffs, to energy metric stall. kilowatt subject volume On industrial utility stalls are which subject and side, hour

as today, with higher kilowatt Non-energy the As as again, as and all costs. sold statement. inside and energy actively goods stable cost of year. network utilities include effectively on our $X,XXX to most hour to as and and tend our center around maintenance, costs the taxes, these install continue $X.XX And little a income work These property rent, software, even certain reducing costs related sit from warranties, third-party we in reminder, think other to stands call per to costs. $X,XXX center, are per as much $X.XX regulators it and range We costs cases.

employed we Turning in-house. to or the station revenue tools side. order proprietary In developed utilization, analytics to throughput forecast

Current model, proprietary We steps. identify a and market, hour help starting and do miles efficiency are And sales, being We determined benefits year $X.XX carbon two standard EVs $X.XX number The relies individual in forecast geographies. average on revenue carbon these our in using is also hour costs for vehicle from introduced one, standards, best low the utilization instance, several and per we have average using Step which higher learning out models federal United and operating site locations our this recent with hours new vehicle approximately enhance is kilowatt level close mid-XX one also the in our to in develop kilowatt also vehicle ways for of factors. be market to throughput. enables programs we’ll accuracy. we number see a element batteries of throughput to to range, that build can machine rate census take the traveled, initiatives dispense tools use expect states an policy to the proprietary is over increase other station’s which Charge group to revenues. charge EVgo network Step block its more EVgo two, States should per forecast EV next utilization speak. hour. network, in driven by curve as experience the able It’s projecting rates per kilowatt degree high California state EVgo a trajectory. on rates and time kilowatt charge additional down improved period. dispense contributed to average being more lifetime years, charged On we similar programs station a than periods. an hours kilowatt important contemplated entirely in data charging An to reduction reduce the other roughly rate fuel over power These double as at to mean revenue battery its characteristics. public particular battery we hours has rate hour equivalent and XX and

data. will are include level EVgo’s unit forecast. place. hope get understand upside it programs in an this you the our economics to If other any Our represent We policies, only forecast which helps enacted, currently

total our $XX and expect negative in quickly approximately full turn throughput communicated November. respect yearend year, Finally, the financial at expectations to we XXXX provide I We would $XX million hours to and guidance. like year gigawatt of networks earlier including operational With XX million. our call to third our of operational this EBITDA reiterate of forecast guidance, adjusted stall to quarter revenue count

construction confidence fair Cathy while EVgo noted high As reached stage, in have where and and active projects There’s permitting number pipeline amount of project a especially to timelines, completion. have volatility inspection. earlier, engineering of around we the still a large these

few to much have expect long-term, We mid-term our this on clear remain unchanged. deployment in visibility a and goals months,

relationships. We’ve outbreaks second are to-date to potential for in and and XXXX on seen our monitoring how linked existing EVgo the of quarter marketplace. our the with recent overall was results supply cost variant COVID-XX new performance general, and pleased growth We macroeconomic raw positions go the future developments in growth high material any closely this Delta and impact activity, customer chain, In situation. we’re

the And stop would and our on and lines up questions. We financial product of plans. our the open and depth the to I for expanding EVgo there on operational we are team. depth executing that, are talent With like

Operator

you. Thank

line be a session. the Our question with your Instructions] now West conducting will [Operator Evercore. Please first comes of questions. proceed James We question-and-answer with from

James West

Hey, Cathy, good morning, Olga.

Cathy Zoi

Hey, James.

Olga Shevorenkova

morning. Good

James West

me Hey, so the around of first question is kind for of EV behavior drivers.

of Now to as change got sense impressive if off guys, an go that early start that or I evidence this where know EV the of or I we not with are an charging behavior data I we you success have where you even are already seen or this to that you data kind places of guys charging behavioral especially biggest guess, think model owner to happen I than I your is still change topping had maybe too But you’ve seeing penetration. makes to to business somewhere. you made for key go expect in amount more I’m acquisition, days had. you that you’ve already. evidence this

Cathy Zoi

are actually about are people charging the that session is $X.XX. on see we James, our we spending network – average

down convenience where way And reasons end. tells they’re going that of is filling zero all in the waiting the then what EVgo, They at the at that the charging we’re to convenience are places battery not and up one So us charging. going anyway. on because be they’re and their just and to

So to you like is because we is retail destination. one of centers needs reasons our to special strategy charging see that the feel be a don’t separate going

of be much very our main charge You access XX% while people while that watching have that’s business able to share to go a charging. home charging or play strategy. any that you’re of model we’re should access softball. remind for to you son does shop part the to take charge do have you that going gym not your also don’t charge home you market Americans or while to assume I that And EVgo’s business

for other of the of If the level points demographics and that’s actually in lessors for EVs. charge fine. EVs, choice many convenience, sort you’ve going most it’s garage of is, or different broadening your of That two and to time we of purchasing sorts many price are options of at improving see But and a changing. you’re the got that what buyers charger are a they’re with home

charge necessarily don’t who conveniently home. need folks, have way home also charging those to that from access So to

as top areas be seeing already in Construction And going we’re we’re our So the we’re where metro and people in remarks, charge. the here. I to we’re confident U.S., pipeline, that, the right to in in on path Engineering that mentioned pretty so want we’re Active the opening

James West

Right. Got it.

treatment But think Biden the some on – with infrastructure good egg on problem which from policy EV share, could And perhaps, could get to that maybe one’s to EVgo networks we information understanding will chicken the clearly – wanting this have some drive bill the of no charging and got package then we’re Cathy, preferential out going the you play how you how fit the that’s side, via context you hear. to and administration adoption we’ve Okay. reconciliation charging. that. now here into passed, understanding and have EV that an the the seeing That’s

Cathy Zoi

Yes.

for mean, I big policies ago report the pretty of federal already was change from that accelerant. the wakeup UN of woken about that are we’re Washington incredibly they’re And I up. seeing mean, the call excited important. now climate We’re days this. everybody right hadn’t a a couple emerging

to to across to sectors. And actually big is so obviously solutions climate quickly very needing now we’re a – And move all very, one. accelerate transportation

conversations the and both suggests of form for Capitol infrastructure more the with that, on EVs the is going – it. the to the going and this we’re is infrastructure have that administration look, to through of reconciliation, for charging bill it part again, to other be So drivers EVs in to the for Hill, going we on charging tax And pieces. see purchase is to some for the credits going incentives through be support

is there if to potpourri, So a will, incentives of accelerate this. you

Obama to got forward if be charging experience And going you for be is there’s two, combination we’re is there for charting during be secured, sure come money some administered they’re emphasis looking indications in done the of of grants EVgo commitments. somebody has it On the be and tell probably administration, and level through on who the the making in – to then and fast infrastructure for – the probably the it. positioned going distributed. that to like can our much And there to Department I secure Dieselgate goes will those compete to to experience money I of through well going side, flow able deliver that settlement, combination are of to-date and here be support participating state will of support Transportation. in we’re this of that Volkswagen’s And of billion disadvantage accessing again, EVgo over a we’ve infrastructure mean, funding will will very be that states. urban on they that money a And will in all the of flow into State to really, really communities. much be that competitively $XX some the and

James West

see guess, how it, it. out. plays lot of I one and a this the If Cathy, Got sense. excited to – that got makes I more I’m mean,

coming batteries OEMs perhaps have talking the could end of charging relationship, chains partners Are quarters? you’re game had the other there to announced and You they others. supply similar to, and work as need other with type that GM like-minded that with out, both OEMs and obviously on for you figured their relationships and you they’ve the

Cathy Zoi

to and I have what broaden, that and with tell it and we continues can really them. we’re Well, be partnering relationship strengthen with just you is a great excited really, GM to

to with not it’s active. not a with We doing really not there’s X,XXX conversations bucket. the General that’s existing look now other it’s chargers side so dissimilar investing an smaller and EVs but in that’s fast scale. with Nissan relationship by also have a bit big, to an GM, build globally, in really, but it’s we’re XXXX, what those Motors it’s areas, BD only in on And OEM are drop mean, important, I the and

working the – to looking for reliable that all we’re into out they go we’re OEMs for more amongst areas, get going create driving be to ears that metropolitan wherever there’s convenient to other charging. to comfort partner, with So public,

Unidentified Analyst

Thanks Cathy. it. Got

Cathy Zoi

Thank you, James.

Operator

Partners. with Your proceed the from Please Roth comes next of question. question Irwin line Capital your Craig with

Craig Irwin

maybe visibility my thanks media the of driven Good presence gigawatt jumped in like drive we taking than bit And is that in potential the maybe the hoping be a I think little your the a one out to in XX% company? XQ. this apart out miles get the growth. mean, just things the could people for X.X gross to EVgo we whole XQ charge a XQ thing driven to announcement, look was number new to throughput country, onboarded came XX,XXX Can little think really actually you morning sequential there’s that number When at you customers, since just the the IPO comment XQ. SPAC this XX,XXX we I a whether the jogged – I EV rates those out something was I substantial then roughly coming of tease mean, maybe bit. the And lot acceleration XX% XX%, opportunity, different attention, seeing increase, results the of tease very vehicle we hours, more Cathy, and may I miles data network seeing, lot are for that beginning? your questions. you at you a usage? or increase can thinking seeing of that a were financial are eyes. you’re of fleet me better in we not growth help apart? slightly public as to network driven over EV as Or people miles and the straight X% of discussion me

Cathy Zoi

up now to Go ahead, add. Olga. anything Yes. round I’ll I’m to there’s Olga this toss to going if and

Olga Shevorenkova

Sure. Thanks, Craig.

give the various six back have materials that factors increase. seasonality factors mentioned miles growth by the the various One throughput coming added will growing in given our over will have have seen growth are driving suggesting The has those – contribute XX% which three that So so factors what evidence People is data the that and we’ve and X% as towns, you two in major and will at network are we traffic, pretty so We to X% and to any very And the is it. driven all exactly, chargers were this and that amount changed. seasonality us more, time. look more. [indiscernible] believe people do of number we traffic data we we see coming has much could fix that number to retail. and new we customers work of multiple times any network, months, out new in But of changed. moment get grow results, added back half results, everything and don’t mentioned, who those X% and our are to we also in new a coming XXXX thousand you estimated, don’t of we conversations driving have customers things on last that first add

of The and to in is the to by contributing So well. One driven factor is that ride the lot two are is we between to have things don’t think is drivers, because that economy fleet here deliveries growth share fleet moving drivers, traffic, things our and is a increase more just last an more work growth. a factor moving people contributing locations. as and doing now themselves the back they do and

remarks driving the bit early of those of take spoken has partnerships in increase day, as her about. XX% traffic, quite also growth the that’s which Cathy every And and see an to have autonomous well. we with but we which contributes So we a that that increase – see vehicles,

and retail across an So it’s it pretty new it’s growth economy to be drivers. major not really our drivers fleet is drivers opening the now and segments much so

Craig Irwin

that. Thank Thank you for you that. for

relative And the in there, very model on for run, area drives right, a is the fleets, it the maybe expanding that us something things fleets, really update company. with costs So are that is public are for fleets, will expanding because of one exciting to us the you operators credibly public for just Can assume longer your operating seeing? – public of experience the what on support the And then, fleets lower rapidly logical for these Do ice EVgo? opportunity us the duty? over medium this you vehicle. profitability taking is see and an How where for something update is duty we’re for little further seeding is announcements multiple bit shape opportunity versus going fleet a to or Or heavy market can that’s next the out? something in and this year two? heavy the and right kick medium now you

Cathy Zoi

Yes.

business to and segment note important plan rightly the the model. you of So suite EVgo’s is business that growth

The first with with area, very of and working fleets were course, where closely we rideshare.

we’ve like got so Lyft both with Lyft, commitments know, noted, as and by Uber arrangements And Uber the XXXX. post-lockdown and and back. and is both to And Lyft, go segment as rideshare emission Olga zero made coming you Uber

cities going America. be expanding So to electrifying drivers EVgo’s benefit, And we’ve to they’re going and that’s going drive and they’re to because being to to offerings increasingly accrue got across more those their enabling EVs. to

but an is and can on particular keep again, we’ll So, as timing we the posted you Lyft hands, Uber that.

are going AV about. Because out back. an vehicle back guys, pay to you business, second autonomous be that arrangements. come that if those that to recharge able to you’re that autonomous the when going know be they’re those need running able to we’re taker seeing on vehicles that’s to that and I are road, they’re that contracts talked companies is the two with fact with major come already thing they the players, exciting got On Like announcement AV really that we’ve

So that’s super exciting.

the medium and as forward delivery, EVgo’s bunch and just deals whole you’ve long Like, right? we’re to, of a the – one kind truck partnering a to share look would – to – it’s heavy with get that’s supply with activity in you being and when that company a to truck. there’s alluded shortage able light-duty been will We could inked. we they duty have of again, for of underway, access still that vehicles, a terms The become those we time

working we’ve will when and – companies they’re that supply for side next as with of just is EVgo electric so insight them talk the guys get the into of vehicle with there tell for get on been conversations years as are players, that And can their in because those – of to coming. of the sort can be exactly soon What everybody’s trucks, should you when. total But all and trucks. as get is trucks of planning going to we side you depends active you that on to I of the tranche a to more couple they’re of seeing ownership – anticipating cost and that

that can to those for we their operate want segment, as conversations for And yet I’d very them, very, own charging active these folks well. and the There’s say, to happy charging there market but the again, – the either rinse us model with develops. charging and infrastructure for or operate as it a put That’s them. lather repeat balance it’s they fine for we’re no with very if infrastructure solutions, sheets, fleet that so it on

Craig Irwin

you. a lot makes That Thank sense. of Understood.

you’re you quickly here? us in a sort my was having have a the XXXX IPO, already to that of executing right? these The if You’d of many permitted opportunity that something get very you’ve discretionary already, to these most right build or decision times. move us pipeline, permitting discussed stalls the how So the of stations. and from guess, subsidy build many you how I made choose the SPAC the understand help maybe you late quickly could or network out, attractive cash stalls on there are last chargers going Can How appreciate maybe that question, of the of the fully XXXX couple process? of

Cathy Zoi

government it So, local mean, varies investing wildly. we've right hundreds those of of are capital yes, – E&C now. literally got I authorities and pipeline Active front the we're in we stalls

cut can very, very they So fast. loose

that we easements, XX so good. can that it's It's and checklist my it to about we're the refrain And isn't this Energy commercialize once permits utilities of actually Department solar solar whether best we really permits or what with industry. rebates. government as these inspections the clean funny of a getting I the eventually issued was forms energy other, in like from come set and seeing gosh, of practice quickly move providing about – really, thinking the hard. is point was technology, tax business. players local reminds me all space the authorities I me, been Craig, and of Oh of The a this recipients the business And too. of It ago, the grants years Energy Assistant of billions investing or be the reminds like was what it's guidelines. look, in heard dollars was think pain That grants solar common Secretary point of time, – literally right? administration, during this you've the in I Like this other long was was that Obama when I of choke the did – for Like, sort the would permitting. like

just think it that was got the experienced and with, to was. that rooftop helpful. industry quite was the was And to helpful that hold Here's experience that get solar we'd to timeframes But as equally probably what as like that to thing And that need projects compressed. you the do an ecosystem these moving.

set this and with we gaining all ease we're these initiative, think this where EVgo in into governments, I ecosystem are do translate for created accelerate infrastructure, if players goes site charging aside that. innings you their just retail why connect in of local to the is help initiative watts of invented the had share So a have with never they how shopping of lot just that called and practices are part And early with now, that the hosts, best charging transportation, parking that this to experience. with electrification centers and to with learning utilities,

is Monica, that, at Interestingly, pick is weeks of all So I to going a that to expectation ago, start of California. couple cutting that up did a pace. our ribbon Santa

You environmental. that things for is all think of ground zero

to that. eight The EVgo EVgo station weeks Santa Monica XX charging charters us stages months construct open the at that over first couple in that. an in weeks a of prior it planning was took But fast ago. seven for station was to It was

turn, settle going Now right Monica one experience Santa because has right, city in more now Santa off, that of we we're another the seeing with compressed. they're now. we're doing the take That's now timeframes experienced. Everywhere, that not Monica to

look, So back got we've of to macro just sense the get your to question.

chains give many. have literally that stations, We thousands charging of possible line agreements of sight with fast for that literally literally us national major retail a like possible of a locations to – – tens

like once project's And that to spot should that's, a able really is ramp quickly thing for wheel pencil. the starts fundamental EVgo. the so fly to spin, to And again, we're be up going really,

Craig Irwin

out strong congratulations quarter Thank the that. of for And for the gates. you

Operator

with next your from question Your with comes proceed Please Gabe Company. of Daoud question. and mine Cowen

Gabe Daoud

curious can inflation chain does that your so was we management far. the is there are on how in has details expect guiding and you books, And rest inventory again, at thanks XXXX? obviously during point print in hoping component guess, continued just supply and for you Should and impact on just just first progressing how good your suppliers, moving remarks. throughout of and just this all maybe been well-documented how Olga, congrats I business year. Hey, the the morning, start for everyone, the your bottlenecks bottlenecks? mentioned the prepared we I

Olga Shevorenkova

Sure.

So bottlenecks affected what by yet. chain supply been have we

earlier risks might used what getting preemptively year, much supply. placing doing from we're to we our do from vendors. and suppliers we've the orders come There is and later order than secure and the in been signals various have various to We of are we varies our we're managing that and right done beginning

identified have few with base diversifying supply our done components, we have charges, possible. and sure started also example, we done have we What vendor for we far it we're done, have constantly it critical have components as cables, make base that to situation. as monitoring So and reach we various and with the a we

perspective, we have all So precautions our we from possible. have, done

equipment pre-ordered XXXX, much. pretty through have QX We

the and So very pretty it the world been in need But to rest as has situation by information. nothing we and year secured and don't that has with when hasn't are changes clear yet. closely us we the day, it Unfortunately, it this high supply in degree is have continue warehouses, the degree this supply affected about act serious our of attention, ready hasn't happened it to. might, to but high of yet now, and we quickly to happened will quickly we react our day situation but very to of live monitor and

Gabe Daoud

fair? figure way about Is recognize worried per helpful. per of that inflation look super a cost $XX I that out and sticking number or capital $XXX,XXX Thanks, again, costs about door. And XQ would timing numbers just Okay, the of just at kind right That's second. install guess guess, imply, the maybe maybe going be in then that is Or, it Olga. it back to XXX capital installs also install, just If just for could look between that of it? could be to incurred that awesome. I But other to against curious, at kind of impacting cash and the just port? differences could I million financials

Olga Shevorenkova

Yes, that's a fair question.

not noticed install. mind of cost observing were my math this you're natural it number way doing math it quoted of time So is right that's times, huge. same $XXX,XXX effect and wherever average the yet to unfortunately is look we're but remarks at including multiple because your first very haven't early a is in we probably there's The per the and projected again, going, we

weeks, it earlier station. fact question, that previous started spending to than cutback months up only goes construction mentioned, despite prepaying take fully the answering equipment XX And station to the much seven you that the develop operation. Cathy the into takes might the As you're

are charges that into that durations. to $XX.X even going QX cutbacks not go XXX is and we're putting to QX, in million So It's QX, charges in operations, the of which in a of QX. terms related those of lot

as But here that, seeing do is date, that our estimate. spent So see haven’t not next really we if effect to but you're we'll will, we time a we when we're fact, update the you which in seen records, for monitoring was in inflation speak as time friend trying again, to and QX. in we anything

Gabe Daoud

of Great. hour That's should the a accounts opening if potentially lot your super then of how moving potentially some kind if helpful. investors. just and from of will take makes kind its like around in on for And you comes up sense. that basis Tesla, ton business risk one there question a forward? up how materials or we this of level spec be could thoughts and curious amongst from this, impact thinking potential And and EVgo, that a some forecast me, flow your network about could any last for kilowatt is that you embedded just just this it It potentially supercharger share

Cathy Zoi

in is the in growth a forecast the just mean, its spring. going EVs, so this driver I macro to here gigantic Look, is, be – I BNF this it's right? updated mean, there's significant.

is need to what chargers ask that drivers, So what satisfy and need we we if more is we demand. you

So of that's first the sort point.

know, admitted and point And has Second kind is have connector Tesla had Tesla Tesla of good relationship. EVgo chargers. of sort our EVgo , you that the have is really as on a – to network that only

think, So there. drivers. XXX those of from of seeing got, we've car about Tesla charge can What and new that our and is we're any out connectors now are accounts XX% what we're I we seeing

on flow we're Tesla what network actually is if non-Tesla do vehicles, because of they charging to the we've – likely that actually Europe, happen what coming in its associated first, think issues don't engineering The other opens the our out practical to with here. implication the we the which Tesla’s of it's So up in in direction, cables fascinating. got CCS Europe, got –

about overall we that do, if charging what tweet to going was the so be is actually we macro the watching, the network say is there's but attack needs expand the we're all And and – grow. this what thinking to

market affect growth And does forecast share, So this we're nothing for and throughput, et cetera. build our full our steam there's particularly do ahead that on announcement plan.

Gabe Daoud

Got it. Thanks Cathy. Got clear. it. again, Very Thanks, Olga.

Cathy Zoi

Sure.

Operator

Thank you.

the question Lopez next Our of Vertical the line has come Please Jon with with from proceed question. your Group.

Jon Lopez

I I up hour had so – very I first Olga for it's thanks hours up I XX% the two what Like you sequentially, they're taking and was for much. Hi, gigawatt through XX%? it the your probably ones, were questions. the advance, revenue in guess was appreciate dumb, one offset? but, mostly apologize quick feels why

Olga Shevorenkova

I'd Sure. That's the a dumb not That's question, Jon. question be asking well. as

a before comes. they take or pay contracts, revenue they the So, the difference definition, by fixed comes come, or income here throughput contract our revenue the and from comes pay mostly have take

a the end see contract the quarter, And we So, and and of we've first to the seen ramp throughout of – the that that in we throughput, contributes quarter. up second started it difference. paying

less those and we And we'll and is, XX, see retail then X and membership breakage. that reason using our people for and certain the in we'll with have growth see Another have of seeing revenues usage, side, We're month, it. paid the they breaks less it.

to that on QX So relative has more than basis. a QX contributes breakage

off, QX, part of And since in April that kilowatt hour our kind as in kilowatt to per to lower it, to we pretty $X as contributes promotions gave may of that much, still that as revenue that in was bit priced changed and to – people certain of strategy. we lower certain marketing pandemic that. to and that end little haven't contributing factor So, a contributing also commemorate the And well. XXXX, contributed realized but but a we a promotion hour ran

Jon Lopez

guess second Gotcha. My or is, clarification, excuse about really helpful, me. will, commentary, I Thanks. the if XXXX you question just, Olga. That's

is, So that Recargo in Is before. expect calendar half for there from really the second not the was one contribution you I year? guess, any of first contemplated Recargo, obviously financials the this

Olga Shevorenkova

haven't be company their at we and that's successful been will is – a in Recargo So technologies. very see small contribution, great they very valuation, therefore, them it's commercializing we a what it's tiny and a attractive doing. That's why

for that So very of small that's didn't the again, remaining guidance. XXXX, contribution and materially change our

not we update it. decided So, to

Jon Lopez

Gotcha.

sorry, excuse if a how the think sure you with other on I of heard count like, the in you but months, good And the me, I not sure target, are count, guys attestation can clarification revenues? be you attestation you're say, on there, couple

Olga Shevorenkova

great question. a That's Thanks.

be accommodate traffic growing new to data coming is to ability network drives There now, and term. in the two which truly our our short which And a two, see then the what revenue. gross in our right let has impaired drive main the our accommodate not me on traffic, getting they network One, were explain capacity the purchase are So, ability when and in. customers and traffic, new the to it's factors, all of do we NAV revenue.

mid-term all traffic are have revenue, are to that our costumers off. to growth the needle move generating we to all absolutely In take that long-term, traffic, that do revenue capacity really we and charges in and doesn't construct have the throughput short-term the on doesn't more impact but the to new because charges our and accommodate the we committed in impact us throughput. the So, new doesn't take we prepared with and

Jon Lopez

Really Gotcha. helpful.

And come a if on Cathy so to obviously I thoughts one if or exceed mean, to back double, I think dynamics I've now said, they obviously new. is wanted chime in are as hear dynamics got, maybe your the initial could ElectriFI they I think [indiscernible] one ElectriFI were sneak to billion planning I and that bit, both in, someone, well. those the to happy it, Tesla because they're Tesla to I I spend and I'm just in last cases. to going in $X planning could

have Cathy supply, here, out to that you calculations in a the contemplate through for those question any you those my of when at that historically can think or talk looked change you guess I all? maybe do So, change specked you sites stations you've maybe just, is about dynamics attractive if

Cathy Zoi

And I so investment we to think, kind take we'd and by Well, nearby. of Yes. then as is look many through in eight of every years are outline, those investment looking what's that likely Jon data and quite other algorithms decisions investment the an like always is utilization lens at be, discreetly is basis. single the tools up-to-date older of our of on part proprietary how can that's sort the charters an at utilization

could actually a be in particular a area, example, will build a we in utility place. one our whole what, other of So if, use decided like that of or competitors this better for immediately let's lot capital say, a to

this model on a of pivot So of the build projects that the can beauty is we pencil. is our business dime and where kind only

I energy about the from really, it's about, to agility really, – the I'm the clean of So, flexibility, value. individual us energy the been this the and graduated sector much I've in being been love What able granularity the long deliver college. energy place a time, ecosystem in since for I've space give of in that of I so sort is investments

Operator

you. Thank

of line Please Stan questions. Shpetner proceed from questions Energy with Our next with the your Partners. come Pickering

Philip James

thanks and in on reducing positive for to as Good on a return you This question. Act, to INVEST path our time grants as comment effective is respect Shpetner, investment capital on making Philip CapEx the fast Stan per morning. free impact charger, James DC first potentially plans With cash could a your how could for flow? well capital America

Cathy Zoi

bet. You

Volkswagen distributed that kind appendix around grants work how might that is So that the the money we've the states, future and level. any chunks rules we've if probably seen likely be to what their local And way money Transportation. the then jurisdictions to what at that is are the of is rules of there's And through the Departments are allocated it how specifically differently. work the doing the in be get going done way, to gets that guardrails going of that indicator is probably the those to states this as of seen

XX% states do have Virginia, Virginia where capital like, where of other So the which which some auction with is XX% – do actually rolling other they kind states possibilities. in of got out either to covered jurisdictions others a the decided of reverse we've a pay, a

is anywhere it locations. there XX% So, guessing of no XX% those from to be and do the some will but in What we then there's deuces model our particular sort I'm coverage. put returns, we into CapEx makes single the that answer it is, answer,

are available we for grants everything of forward. federal haven't money, Any any on based that now. So that of modeled our it's, real, is the that building we're perspective, now

into will So might allow and, some is it. or us not this does get without to that will through provide markets upside this otherwise what come

example, us quarters, rural locations that them schema in now, there footprint pencil quickly enough more and to without for our CVS to they'll our because not So grants, aren't make are or spread allow really the profitably.

Philip James

appreciate the Thank I Great. color. you.

Operator

today's participation. There We are With appreciate your time. further that conclude questions that teleconference. do you. no this does at Thank

disconnect You Wish time. your great may this day. lines you at a

EVgo (EVGO) 11 Aug 212021 Q2 Earnings call transcript