Fourth-quarter earnings show positive trajectory for EV charging firm EVgo

EV charging network operator, EVgo, revealed its Q4 earnings for 2022. The company reports a narrower loss than expected as demand for chargers from customers boomed. 

Despite the revenue guidance for 2023 falling short slightly of Wall Street’s predictions, shares increased over 8% in pre-market trading on Thursday, March 30. 

The Q4 earnings for EVgo increased by 283% over the year prior. For the quarter, the company suffered a net loss of $17 million. At year’s end, the business had $246.2 million less in cash and equivalents than it did at the year’s end of 2021, which was $484.9 million.

In line with the estimates it gave in its third-quarter results, EVgo reported revenue of $54.6 million, a network capacity of 44.6 GWh, and an adjusted EBITDA loss of $80.2 million for the entire year.

The company’s “eXtend” division, which supplies and oversees chargers for customers under the clients’ own brands, experienced dramatic growth. In the fourth quarter, eXtend’s revenue increased from just $114,000 to approximately $16.7 million, or 61% of EVgo’s overall income for the quarter. eXtend program participants include companies like General Motors, Pilot, and Chase, which operates one of the largest banks in the world.

Comparing EVgo’s Q4 earnings report and guidance to Wall Street consensus estimates, the following important figures are provided: 

• Loss per share was $0.06 as opposed to the anticipated loss of $0.16. 
• Revenue of $27.3 million versus the anticipated $21.8 million 
• Guidance Revenue for EVgo: $105 to $150 
• Loss on Adjusted EBITDA: $78 million to $60 million 

However, the company is unsure of how many American-made batteries it will be able to acquire. The use of chargers made in the US is now required for some federally supported projects, but the EVgo guidance estimates that 3,400–4,000 fast charging stations will either be operational or under development by the end of the year.