Evgo's Stock Jumps as Revenue Triples Due to Ev Charging

EVgo Inc. experienced a significant surge in its stock shares on Wednesday following the release of its fourth-quarter results, exceeding expectations and showcasing a remarkable increase in charging revenue. The company, renowned for its electric vehicle (EV) charging network, reported an impressive tripling of charging revenue.

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Highlighting the robust growth in the utilization of its charging stalls, EVgo revealed that this expansion surpassed the growth rate of EVs currently in operation. Throughout the year 2023, the company added 930 new stalls, resulting in a total of 2,990 operational stalls by the end of the year.

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CEO Badar Khan emphasized a pivotal turning point for EVgo in 2023, noting that due to the elevated utilization and throughput levels across their network, the installed base has now become profitable on a stand-alone basis.

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Anticipating this positive momentum, the stock EVGO witnessed a remarkable premarket surge of 13.7%, positioning it to open at its highest price since January 8.

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Despite a widened net loss for the fourth quarter, reaching $12.6 million or 12 cents per share, compared to $4.4 million or 6 cents per share in the corresponding period the previous year, EVgo outperformed analyst expectations. The FactSet consensus projected per-share losses of 17 cents. Total revenue for the quarter soared by 83.1% to $50 million, surpassing the FactSet consensus of $43.9 million. Particularly noteworthy was the charging-network revenue, which skyrocketed by 211.6% to $28.34 million.

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In December, the network utilization rate exceeded 19%, a substantial increase from 8% in December 2022. Additionally, the average daily throughput per stall surged to 201 kilowatt hours per day, marking a remarkable 179% increase from the 72 kilowatt hours per day recorded the previous year.

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Looking ahead to 2024, EVgo is optimistic about its financial outlook, projecting revenue in the range of $220 million to $270 million. This forecast exceeds the current FactSet consensus, which stands at $259.8 million.

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Despite a year-to-date decline of 22.4% in its stock value until Tuesday, EVgo's positive performance stands out in comparison to the Global X Autonomous & Electric Vehicles exchange-traded fund (DRIV), which experienced a 3.5% loss, and the S&P 500, which posted a 6.5% gain.

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EVgo's success in 2023, as demonstrated by the impressive growth in charging revenue and the expansion of its operational stalls, positions the company as a key player in the rapidly evolving electric vehicle charging infrastructure landscape. With the CEO highlighting the achievement of profitability on a stand-alone basis, investors and industry observers are likely to keep a close eye on EVgo's future developments and market dynamics.

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