0001821159false0001821159us-gaap:CommonClassAMember2024-08-012024-08-010001821159evgo:RedeemableWarrantsForClassCommonStockMember2024-08-012024-08-0100018211592024-08-012024-08-01

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 1, 2024

EVgo Inc.

(Exact name of registrant as specified in its charter)

Delaware

001-39572

85-2326098

(State or other jurisdiction of
incorporation)

(Commission File Number)

(I.R.S. Employer
Identification No.)

11835 West Olympic Boulevard, Suite 900E
Los Angeles, California

    

90064

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (877) 494-3833

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading
Symbol(s)

Name of each exchange
on which registered

Shares of Class A common stock, $0.0001 par value per share

EVGO

The Nasdaq Global Select Market

Redeemable warrants, each whole warrant exercisable for one share of Class A common stock at an exercise price of $11.50

EVGOW

The Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Item 2.02. Results of Operations and Financial Condition.

EVgo Inc. (the “Company”) issued a press release on August 1, 2024, announcing its financial results for the quarter ended June 30, 2024. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

The information furnished in this Current Report on Form 8-K (including exhibit 99.1) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of such section, nor shall such information be deemed incorporated by reference in any filing under the Exchange Act or the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

Exhibit
Number

Description

99.1

Press Release, dated August 1, 2024.

104

Cover Page Interactive Data File (embedded within the Inline XBRL document).

2

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

EVgo Inc.

 

 

 

Date: August 1, 2024

By:

/s/ Stephanie Lee

 

Name:

Stephanie Lee

 

Title:

Interim Chief Financial Officer

 

 

(Principal Financial Officer and Principal Accounting Officer)

3

Exhibit 99.1

Graphic

EVgo Inc. Reports Record Second Quarter 2024 Results

Achieves 6th Consecutive Quarter of Triple Digit Year-Over-Year Network Throughput Growth

Raises Midpoint of Total Revenue Guidance by $10 Million

Revenue reached a record $66.6 million in the second quarter, representing an increase of 32% year-over-year.
Charging network revenue totaled $36.4 million in the second quarter, an increase of 146% year-over-year, representing the 7th sequential quarter of double-digit charging revenue growth.
Network throughput reached a record 66 gigawatt-hours (“GWh”) in the second quarter, an increase of 164% year-over-year, representing the 6th consecutive quarter of triple digit year-over-year growth.
Added more than 220 new operational stalls during the second quarter, including EVgo eXtend™ stalls.
Ended the second quarter with approximately 3,440 stalls in operation, including EVgo eXtend™ stalls.
Added over 131,000 new customer accounts in the second quarter, reaching more than 1 million overall at quarter end.

Los Angeles – August 1, 2024 – EVgo Inc. (Nasdaq: EVGO) (“EVgo” or the “Company”) today announced results for the second quarter ended June 30, 2024. Management will host a conference call today at 11 am ET / 8 am PT to discuss EVgo’s results and other business highlights.

Revenue reached $66.6 million in the second quarter of 2024, compared to $50.6 million in the second quarter of 2023, representing 32% year-over-year growth. Revenue growth was driven by year-over-year increases in charging network revenues.

Network throughput increased to 66 GWh in the second quarter of 2024, compared to 25 GWh in the second quarter of 2023, representing 164% year-over-year growth. The Company added over 131,000 new customer accounts during the second quarter of 2024, a 60% year-over-year increase in new accounts. The overall number of customer accounts was more than 1 million at quarter end, an increase of 59% year-over-year.

“EVgo delivered yet another quarter of great financial and operating results, including the 7th sequential quarter of double-digit charging revenue growth,” said Badar Khan, EVgo’s CEO. “We are seeing continual record demand in the industry, which we are well situated to capture given our position as an owner operator and as evidenced by the tremendous growth in throughput and new customer accounts. We look forward to continuing to execute on our strategic priorities and building the critically important, fast charging, OEM-agnostic infrastructure necessary to deliver an excellent customer experience for EV drivers across the nation. We are confident this momentum will result in strong returns for our shareholders.”

1


Business Highlights

Subaru Charging Credit: Subaru extended their charging credit program with EVgo, giving new Subaru Solterra drivers a $500 EVgo charging credit.
Stall Development: The Company ended the quarter with approximately 3,440 stalls in operation, including EVgo eXtend™ stalls. EVgo added over 220 new DC fast charging stalls during the quarter, including EVgo eXtend™ stalls.
EVgo eXtendTM: EVgo ended the quarter with 190 operational EVgo eXtend™ stalls.
Network Utilization: Utilization on the EVgo network in the second quarter of 2024 was 20%, up from approximately 11% in the second quarter of 2023.
Average Daily Network Throughput: Average daily throughput per stall for the EVgo network was 227 kilowatt hours per day in the second quarter of 2024, an increase of 103% compared to 112 kilowatt hours per day in the second quarter of 2023.
Commercial Charging: EVgo’s commercial charging business continues to grow driven by rideshare, with throughput increasing nearly threefold year-over-year.
EVgo Autocharge+: Autocharge+ was over 18% of total charging sessions initiated in the second quarter of 2024, and the number of Autocharge+ charging sessions in the second quarter increased 202% compared to the second quarter of 2023.
PlugShare: PlugShare reached 5.3 million registered users and achieved 8.5 million check-ins since inception.

Financial & Operational Highlights

The below represent summary financial and operational figures for the second quarter of 2024.

Revenue of $66.6 million
Network Throughput1 of 66 gigawatt-hours
Customer Account Additions of over 131,000 accounts
Gross Profit of $6.4 million
Net Loss of $29.6 million
Adjusted Gross Profit2 of $17.7 million
Adjusted EBITDA2 of ($8.0) million
Net Cash Provided By Operating Activities of $7.6 million
Capital Expenditures of $24.2 million
Capital Expenditures, Net of Capital Offsets2 of $13.8 million

1 Network throughput for EVgo network excludes EVgo eXtend™ sites.

2 Adjusted Gross Profit, Adjusted EBITDA, and Capital Expenditures, Net of Capital Offsets are non-GAAP measures and have not been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”). For a definition of these non-GAAP measures and a reconciliation to the most directly comparable GAAP measure, please see “Definitions of Non-GAAP Financial Measures” and “Reconciliations of Non-GAAP Financial Measures” included elsewhere in this release.

2


(unaudited, dollars in thousands)

Q2'24

Q2'23

Better (Worse)

Q2'24 YTD

Q2'23 YTD

Better (Worse)

Network Throughput (GWh)

 

 

66

 

 

25

 

164%

 

 

119

 

 

43

 

177%

Revenue

$

66,619

$

50,552

32%

$

121,777

$

75,852

61%

Gross profit

$

6,398

$

5,529

16%

$

13,239

$

5,570

138%

Gross margin

 

9.6%

10.9%

(130) bps

10.9%

7.3%

360 bps

Net loss

$

(29,610)

$

(21,539)

(37)%

$

(57,803)

$

(70,620)

18%

Adjusted Gross Profit¹

$

17,658

$

12,853

37%

$

34,945

$

19,258

81%

Adjusted Gross Margin1

26.5%

25.4%

110 bps

28.7%

25.4%

330 bps

Adjusted EBITDA1

$

(7,982)

$

(10,553)

24%

$

(15,189)

$

(30,620)

50%

1 Adjusted Gross Profit, Adjusted Gross Margin, and Adjusted EBITDA are non-GAAP measures and have not been prepared in accordance with GAAP. For a definition of these non-GAAP measures and a reconciliation to the most directly comparable GAAP measures, please see “Definitions of Non-GAAP Financial Measures” and “Reconciliations of Non-GAAP Financial Measures” included elsewhere in these materials.

(unaudited, dollars in thousands)

Q2'24

Q2'23

Change

Q2'24 YTD

Q2'23 YTD

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows provided by (used in) operating activities

$

7,556

$

(3,182)

337%

 

 

$

(6,526)

 

$

(22,525)

71%

GAAP capital expenditures

$

24,196

$

34,811

(30)%

 

 

$

45,267

$

100,057

(55)%

Capital offsets:

OEM infrastructure payments

$

5,956

$

6,022

(1)%

$

11,782

$

9,917

19%

Proceeds from capital-build funding

4,459

2,040

119%

6,139

4,256

44%

Total capital offsets

10,415

8,062

29%

17,921

14,173

26%

Capital Expenditures, Net of Capital Offsets1

$

13,781

$

26,749

(48)%

$

27,346

$

85,884

(68)%

1 Capital Expenditures, Net of Capital Offsets are non-GAAP measures and have not been prepared in accordance with GAAP. For a definition of these non-GAAP measures and a reconciliation to the most directly comparable GAAP measures, please see “Definitions of Non-GAAP Financial Measures” and “Reconciliations of Non-GAAP Financial Measures” included elsewhere in these materials.

6/30/2024

6/30/2023

Increase

Stalls in operation or under construction:

 

 

 

 

 

EVgo Network

3,690

3,180

16%

EVgo eXtend™

480

*

Total stalls in operation or under construction

4,170

3,180

31%

Stalls in operation:

EVgo Network

3,250

2,520

29%

EVgo eXtend™

190

*

Total stalls in operation

3,440

2,520

37%

* Percentage not meaningful.

3


2024 Financial Guidance

EVgo is updating 2024 guidance as follows:

Raising the midpoint of total revenue guidance by $10 million with total revenue guidance of $240 - $270 million
Adjusted EBITDA* of ($44) – ($34) million

* A reconciliation of projected Adjusted EBITDA (non-GAAP) to net income (loss), the most directly comparable GAAP measure, is not provided because certain measures, including share-based compensation expense, which is excluded from Adjusted EBITDA, cannot be reasonably calculated or predicted at this time without unreasonable efforts. For a definition of Adjusted EBITDA, please see “Definitions of Non-GAAP Financial Measures” included elsewhere in this release.

Conference Call Information

A live audio webcast and conference call for EVgo’s second quarter earnings release will be held today at 11 am ET / 8 am PT. The webcast will be available at investors.evgo.com, and the dial-in information for those wishing to access via phone is:

Toll Free: (888) 340-5044 (for U.S. callers)
Toll/International: (646) 960-0363 (for callers outside the U.S.)

Conference ID: 6304708

This press release, along with other investor materials that will be used or referred to during the webcast and conference call, including a slide presentation and reconciliations of certain non-GAAP measures to their nearest GAAP measures, will also be available on that site.

About EVgo

EVgo (Nasdaq: EVGO) is a leader in electric vehicle charging solutions, building and operating the infrastructure and tools needed to expedite the mass adoption of electric vehicles for individual drivers, rideshare and commercial fleets, and businesses. EVgo is one of the nation’s largest public fast charging networks, featuring over 1,000 fast charging locations across more than 35 states, including stations built through EVgo eXtend™, its white label service offering. EVgo is accelerating transportation electrification through partnerships with automakers, fleet and rideshare operators, retail hosts such as grocery stores, shopping centers, and gas stations, policy leaders, and other organizations. With a rapidly growing network and unique service offerings for drivers and partners including EVgo Optima™, EVgo Inside™, EVgo Rewards™, and Autocharge+, EVgo enables a world-class charging experience where drivers live, work, travel and play.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “estimate,” “plan,” “project,” “forecast,” “intend,” “will,” “expect,” “anticipate,” “believe,” “seek,” “target,” “assume” or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements are based on management’s current expectations or beliefs and are subject to numerous assumptions, risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. You are cautioned, therefore, against relying on any of these forward-looking statements. These forward-looking statements include, but are not limited to, express or implied statements regarding EVgo’s

4


future financial and operating performance, revenues, market size and opportunity, capital expenditures and offsets; EVgo’s confidence that “this momentum will result in strong returns for our shareholders”; EVgo’s  progress on its network buildout, customer experience, technological capabilities and cost efficiencies; growth in the Company’s throughput; growth in the Company’s commercial charging business; and the Company’s collaboration with partners. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of EVgo’s management and are not predictions of actual performance. There are a significant number of factors that could cause actual results to differ materially from the statements made in this press release, including changes or developments in the broader general market; EVgo’s dependence on the widespread adoption of EVs and growth of the EV and EV charging markets; competition from existing and new competitors; EVgo’s ability to expand into new service markets, grow its customer base and manage its operations; the risks associated with cyclical demand for EVgo’s services and vulnerability to industry downturns and regional or national downturns; fluctuations in EVgo’s revenue and operating results; unfavorable conditions or disruptions in the capital and credit markets and EVgo’s ability to obtain additional financing on commercially reasonable terms; EVgo’s ability to generate cash, service indebtedness and incur additional indebtedness; any current, pending or future legislation, regulations or policies that could impact EVgo’s business, results of operations and financial condition, including regulations impacting the EV charging market and government programs designed to drive broader adoption of EVs and any reduction, modification or elimination of such programs; EVgo’s ability to adapt its assets and infrastructure to changes in industry and regulatory standards and market demands related to EV charging; impediments to EVgo’s expansion plans, including permitting and utility-related delays; EVgo’s ability to integrate any businesses it acquires; EVgo’s ability to recruit and retain experienced personnel; risks related to legal proceedings or claims, including liability claims; EVgo’s dependence on third parties, including hardware and software vendors and service providers, utilities and permit-granting entities; supply chain disruptions, inflation and other increases in expenses; safety and environmental requirements or regulations that may subject EVgo to unanticipated liabilities or costs; EVgo’s ability to enter into and maintain valuable partnerships with commercial or public-entity property owners, landlords and/or tenants (collectively “Site Hosts”), original equipment manufacturers (“OEMs”), fleet operators and suppliers; EVgo’s ability to maintain, protect and enhance EVgo’s intellectual property; and general economic or political conditions, including the conflicts in Ukraine, Israel and the broader Middle East region, and elevated rates of inflation and associated changes in monetary policy. Additional risks and uncertainties that could affect the Company’s financial results are included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations of EVgo” in EVgo’s most recent Annual Report on Form 10-K, filed with the Securities and Exchange Commission (the “SEC”), as well as its other SEC filings, copies of which are available on EVgo’s website at investors.evgo.com, and on the SEC’s website at www.sec.gov. All forward-looking statements in this press release are based on information available to EVgo as of the date hereof, and EVgo does not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made, except as required by applicable law.

5


Financial Statements

EVgo Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

June 30, 

December 31, 

2024

2023

(in thousands)

(unaudited)

Assets

 

Current assets

 

Cash, cash equivalents and restricted cash

 

$

162,736

$

209,146

Accounts receivable, net of allowance of $553 and $1,116 as of June 30, 2024 and December 31, 2023, respectively

 

34,771

 

34,882

Accounts receivable, capital-build

 

13,217

 

9,297

Prepaid expenses and other current assets

 

14,747

 

14,081

Total current assets

 

225,471

 

267,406

Property, equipment and software, net

 

403,418

 

389,227

Operating lease right-of-use assets

79,444

67,724

Other assets

 

2,098

 

2,208

Intangible assets, net

 

43,845

 

48,997

Goodwill

 

31,052

 

31,052

Total assets

$

785,328

$

806,614

Liabilities, redeemable noncontrolling interest and stockholders’ equity (deficit)

Current liabilities

 

 

Accounts payable

$

16,165

$

10,133

Accrued liabilities

 

38,742

 

40,549

Operating lease liabilities, current

6,484

6,018

Deferred revenue, current1

 

28,610

 

32,349

Other current liabilities

 

94

 

298

Total current liabilities

 

90,095

 

89,347

Operating lease liabilities, noncurrent

73,239

61,987

Earnout liability, at fair value

345

654

Asset retirement obligations

 

19,829

 

18,232

Capital-build liability

 

41,479

 

35,787

Deferred revenue, noncurrent

 

64,290

 

55,091

Warrant liabilities, at fair value

2,746

5,141

Total liabilities

292,023

266,239

Commitments and contingencies

Redeemable noncontrolling interest

479,710

700,964

Stockholders' equity (deficit)

13,595

(160,589)

Total liabilities, redeemable noncontrolling interest and stockholders' equity (deficit)

$

785,328

$

806,614

1 In 2024, deferred revenue, current, and customer deposits were combined into a single line item. Previously reported amounts have been updated to conform to the current period presentation.

6


EVgo Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(unaudited)

Three Months Ended

Six Months Ended

June 30, 

June 30, 

(in thousands, except per share data)

 

2024

 

2023

 

Change %

 

2024

 

2023

 

Change %

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Charging, retail

 

$

22,336

 

$

9,085

 

146%

 

$

40,662

 

$

15,700

 

159%

Charging, commercial

7,094

2,418

193%

12,933

 

4,133

213%

Charging, OEM

3,638

986

269%

6,370

 

1,538

314%

Regulatory credit sales

1,749

1,613

8%

3,783

 

2,828

34%

Network, OEM

1,627

742

119%

5,050

 

3,441

47%

Total charging network

36,444

 

14,844

146%

68,798

 

27,640

149%

eXtend

27,667

33,281

(17)%

46,818

 

43,573

7%

Ancillary

2,508

2,427

3%

6,161

 

4,639

33%

Total revenue

66,619

50,552

32%

121,777

75,852

61%

 

Cost of sales

Charging network1

23,979

12,009

100%

43,489

 

21,988

98%

Other1

25,093

25,731

(2)%

43,541

 

34,669

26%

Depreciation, net of capital-build amortization

11,149

7,283

53%

21,508

 

13,625

58%

Total cost of sales

60,221

45,023

34%

108,538

70,282

54%

Gross profit

6,398

5,529

16%

13,239

5,570

138%

 

Operating expenses

General and administrative

33,827

34,333

(1)%

68,053

72,222

(6)%

Depreciation, amortization and accretion

4,958

4,783

4%

9,943

9,567

4%

Total operating expenses

38,785

39,116

(1)%

77,996

81,789

(5)%

Operating loss

(32,387)

(33,587)

4%

(64,757)

(76,219)

15%

 

Interest income

2,064

2,199

(6)%

4,337

4,197

3%

Other expense, net

(8)

(1)

(700)%

(17)

*

Change in fair value of earnout liability

101

2,496

(96)%

309

433

(29)%

Change in fair value of warrant liabilities

677

7,391

(91)%

2,395

1,011

137%

Total other income, net

2,834

12,085

(77)%

7,024

5,641

25%

Loss before income tax expense

(29,553)

(21,502)

(37)%

(57,733)

(70,578)

18%

Income tax expense

(57)

(37)

(54)%

(70)

(42)

(67)%

Net loss

(29,610)

(21,539)

(37)%

(57,803)

(70,620)

18%

Less: net loss attributable to redeemable noncontrolling interest

(19,233)

(14,513)

(33)%

(37,593)

(50,518)

26%

Net loss attributable to Class A common stockholders

$

(10,377)

$

(7,026)

(48)%

$

(20,210)

$

(20,102)

(1)%

 

Net loss per share to Class A common stockholders, basic and diluted

$

(0.10)

$

(0.08)

$

(0.19)

$

(0.25)

Weighted average common stock outstanding, basic and diluted

105,584

85,320

105,130

78,196


* Not meaningful

1 In the fourth quarter of 2023, the Company changed the presentation of cost of sales to disaggregate such costs between “charging network” and “other.” Previously reported amounts have been updated to conform to the current presentation.

7


EVgo Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(unaudited)

Six Months Ended

June 30, 

(in thousands)

2024

2023

Cash flows from operating activities

 

 

 

Net loss

$

(57,803)

$

(70,620)

Adjustments to reconcile net loss to net cash used in operating activities

 

Depreciation, amortization and accretion

 

31,451

23,192

Net loss on disposal of property and equipment, net of insurance recoveries, and impairment expense

 

5,497

6,008

Share-based compensation

 

10,103

14,922

Change in fair value of earnout liability

(309)

(433)

Change in fair value of warrant liabilities

(2,395)

(1,011)

Other

5

(155)

Changes in operating assets and liabilities

 

Accounts receivable, net

 

112

(11,422)

Prepaid expenses, other current assets and other assets

 

1,324

3,779

Operating lease assets and liabilities, net

(3)

642

Accounts payable

 

6,130

(2,872)

Accrued liabilities

 

(5,764)

2,925

Deferred revenue1

 

5,461

12,458

Other current and noncurrent liabilities

 

(335)

62

Net cash used in operating activities

 

(6,526)

(22,525)

Cash flows from investing activities

 

Capital expenditures

(45,267)

(100,057)

Proceeds from insurance for property losses

152

159

Net cash used in investing activities

 

(45,115)

(99,898)

Cash flows from financing activities

 

Proceeds from issuance of Class A common stock under the ATM

5,828

Proceeds from issuance of Class A common stock under the equity offering

128,023

Proceeds from capital-build funding

 

6,139

4,256

Payments of deferred debt issuance costs

(908)

Payments of deferred equity issuance costs

 

(4,751)

Net cash provided by financing activities

5,231

133,356

Net (decrease) increase in cash, cash equivalents and restricted cash

 

(46,410)

10,933

Cash, cash equivalents and restricted cash, beginning of period

 

209,146

246,493

Cash, cash equivalents and restricted cash, end of period

$

162,736

$

257,426


1 In 2024, deferred revenue, current, and customer deposits were combined into a single line item. Previously reported amounts have been updated to conform to the current period presentation.

8


Use of Non-GAAP Financial Measures

To supplement EVgo’s financial information, which is prepared and presented in accordance with GAAP, EVgo uses certain non-GAAP financial measures. The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. EVgo uses these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. EVgo believes that these non-GAAP financial measures provide meaningful supplemental information regarding the Company’s performance by excluding certain items that may not be indicative of EVgo’s recurring core business operating results.

EVgo believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing EVgo’s performance. These non-GAAP financial measures also facilitate management’s internal comparisons to the Company’s historical performance. EVgo believes these non-GAAP financial measures are useful to investors both because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making and (2) they are used by EVgo’s institutional investors and the analyst community to help them analyze the health of EVgo’s business.

For more information on these non-GAAP financial measures, including reconciliations to the most comparable GAAP measures, please see the sections titled “Definitions of Non-GAAP Financial Measures” and “Reconciliations of Non-GAAP Financial Measures.”

Definitions of Non-GAAP Financial Measures

This release includes some, but not all of the following non-GAAP financial measures, in each case as defined below: “Charging Network Margin,” “Adjusted Cost of Sales,” “Adjusted Cost of Sales as a Percentage of Revenue,” “Adjusted Gross Profit (Loss),” “Adjusted Gross Margin,” “Adjusted General and Administrative Expenses,” “Adjusted General and Administrative Expenses as a Percentage of Revenue,” “EBITDA,” “EBITDA Margin,” “Adjusted EBITDA,” “Adjusted EBITDA Margin,” and “Capital Expenditures, Net of Capital Offsets.” With respect to Capital Expenditures, Net of Capital Offsets, pursuant to the terms of certain OEM contracts, EVgo is paid well in advance of when revenue can be recognized, and usually, the payment is tied to the number of stalls that commence operations under the applicable contractual arrangement while the related revenue is deferred at the time of payment and is recognized as revenue over time as EVgo provides charging and other services to the OEM and the OEM’s customers. EVgo management therefore uses these measures internally to establish forecasts, budgets, and operational goals to manage and monitor its business, including the cash used for, and the return on, its investment in its charging infrastructure. EVgo believes that these measures are useful to investors in evaluating EVgo’s performance and help to depict a meaningful representation of the performance of the underlying business, enabling EVgo to evaluate and plan more effectively for the future.

Charging Network Margin, Adjusted Cost of Sales, Adjusted Cost of Sales as a Percentage of Revenue, Adjusted Gross Profit (Loss), Adjusted Gross Margin, Adjusted General and Administrative Expenses, Adjusted General and Administrative Expenses as a Percentage of Revenue, EBITDA, EBITDA Margin, Adjusted EBITDA, Adjusted EBITDA Margin and Capital Expenditures, Net of Capital Offsets are not prepared in accordance with GAAP and may be different from non-GAAP financial measures used by other companies. These measures should not be considered as measures of financial performance under GAAP and the items excluded from or included in these metrics are significant components in understanding and assessing EVgo’s financial performance. These metrics should not be considered as alternatives to net income (loss) or any other performance measures derived in accordance with GAAP.

9


EVgo defines Charging Network Margin as total charging network revenue less charging network cost of sales divided by total charging network revenue. EVgo defines Adjusted Cost of Sales as cost of sales before (i) depreciation, net of capital-build amortization, and (ii) share-based compensation. EVgo defines Adjusted Cost of Sales as a Percentage of Revenue as Adjusted Cost of Sales as a percentage of revenue. EVgo defines Adjusted Gross Profit (Loss) as revenue less Adjusted Cost of Sales. EVgo defines Adjusted Gross Margin as Adjusted Gross Profit (Loss) as a percentage of revenue. EVgo defines Adjusted General and Administrative Expenses as general and administrative expenses before (i) share-based compensation, (ii) loss on disposal of property and equipment, net of insurance recoveries, and impairment expense, (iii) bad debt expense (recoveries), and (iv) certain other items that management believes are not indicative of EVgo’s ongoing performance. EVgo defines Adjusted General and Administrative Expenses as a Percentage of Revenue as Adjusted General and Administrative Expenses as a percentage of revenue. EVgo defines EBITDA as net income (loss) before (i) depreciation, net of capital-build amortization, (ii) amortization, (iii) accretion, (iv) interest income, (v) interest expense, and (vi) income tax expense (benefit). EVgo defines EBITDA Margin as EBITDA as a percentage of revenue. EVgo defines Adjusted EBITDA as EBITDA plus (i) share-based compensation, (ii) loss on disposal of property and equipment, net of insurance recoveries, and impairment expense, (iii) loss (gain) on investments, (iv) bad debt expense (recoveries), (v) change in fair value of earnout liability, (vi) change in fair value of warrant liabilities, and (vii) certain other items that management believes are not indicative of EVgo’s ongoing performance. EVgo defines Adjusted EBITDA Margin as Adjusted EBITDA as a percentage of revenue. EVgo defines Capital Expenditures, Net of Capital Offsets as capital expenditures adjusted for the following capital offsets: (i) all payments under OEM infrastructure agreements excluding any amounts directly attributable to OEM customer charging credit programs and pass-through of non-capital expense reimbursements, and (ii) proceeds from capital-build funding. The tables below present quantitative reconciliations of these measures to their most directly comparable GAAP measures as described in this paragraph.

10


Reconciliations of Non-GAAP Financial Measures

The following unaudited table presents a reconciliation of EBITDA, EBITDA Margin, Adjusted EBITDA, and Adjusted EBITDA Margin to the most directly comparable GAAP measure:

(unaudited, dollars in thousands)

Q2'24

 

Q2'23

 

Change

 

Q2'24 YTD

 

Q2'23 YTD

 

Change

 

 

 

 

 

 

 

 

 

GAAP revenue

 

$

66,619

 

$

50,552

 

32%

 

 

$

121,777

 

$

75,852

 

61%

GAAP net loss

$

(29,610)

$

(21,539)

(37)%

$

(57,803)

$

(70,620)

18%

GAAP net loss margin

(44.4%)

(42.6%)

(180) bps

(47.5)%

(93.1)%

4,560 bps

Adjustments:

Depreciation, net of capital-build amortization

 

11,288

 

7,407

52%

 

21,764

 

13,875

57%

Amortization

 

4,342

 

4,117

5%

 

8,805

 

8,236

7%

Accretion

477

542

(12)%

882

1,081

(18)%

Interest income

 

(2,064)

 

(2,199)

6%

 

(4,337)

 

(4,197)

(3)%

Interest expense

* %

* %

Income tax expense

57

37

54%

70

42

67%

EBITDA

$

(15,510)

$

(11,635)

(33)%

$

(30,619)

$

(51,583)

41%

EBITDA margin

(23.3%)

(23.0%)

(30) bps

(25.1)%

(68.0)%

4,290 bps

Adjustments:

Share-based compensation

$

5,402

$

8,495

(36)%

 

10,103

 

14,922

(32)%

Loss on disposal of property and equipment, net of insurance recoveries, and impairment expense

 

2,757

 

2,389

15%

 

5,497

 

5,849

(6)%

Loss on investments

 

5

(100)%

5

 

4

25%

Bad debt expense

81

 

56

45%

311

 

153

103%

Change in fair value of earnout liability

(101)

 

(2,496)

96%

(309)

 

(433)

29%

Change in fair value of warrant liabilities

(677)

 

(7,391)

91%

(2,395)

 

(1,011)

(137)%

Other1

 

66

 

24

175%

 

2,218

 

1,479

50%

Total adjustments

7,528

1,082

596%

15,430

20,963

(26)%

Adjusted EBITDA

$

(7,982)

$

(10,553)

24%

$

(15,189)

$

(30,620)

50%

Adjusted EBITDA Margin

(12.0%)

(20.9%)

890 bps

(12.5%)

(40.4)%

2,790 bps

*

Percentage greater than 999%, bps greater than 9,999 or not meaningful.

1

For the six months ended June 30, 2024, comprised primarily of costs related to the organizational realignment announced by the Company on January 17, 2024. For the six months ended June 30, 2023, comprised primarily of costs related to the previous reorganization of Company resources announced by the Company on February 23, 2023 and the petition filed by EVgo in the Delaware Court of Chancery in February 2023 seeking validation of EVgo's charter and share structure (the "205 Petition").

The following unaudited table presents a reconciliation of Charging Network Margin to the most directly comparable GAAP measures:

(unaudited, dollars in thousands)

Q2'24

Q2'23

Change

Q2'24 YTD

Q2'23 YTD

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP total charging network revenue

 

$

36,444

 

$

14,844

 

146%

 

 

$

68,798

 

$

27,640

 

149%

GAAP charging network cost of sales

23,979

12,009

100%

43,489

21,988

98%

Charging Network Margin

34.2%

19.1%

1,510 bps

36.8%

20.4%

1,640 bps

11


The following unaudited table presents a reconciliation of Adjusted Cost of Sales, Adjusted Cost of Sales as a Percentage of Revenue, Adjusted Gross Profit and Adjusted Gross Margin to the most directly comparable GAAP measures:

(unaudited, dollars in thousands)

Q2'24

Q2'23

Change

Q2'24 YTD

Q2'23 YTD

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP revenue

 

$

66,619

 

$

50,552

 

32%

 

 

$

121,777

 

$

75,852

 

61%

GAAP cost of sales

60,221

45,023

34%

108,538

70,282

54%

GAAP gross profit

$

6,398

$

5,529

16%

$

13,239

$

5,570

138%

GAAP cost of sales as a percentage of revenue

90.4%

89.1%

130 bps

89.1%

92.7%

(360) bps

GAAP gross margin

9.6%

10.9%

(130) bps

10.9%

7.3%

360 bps

Adjustments:

Depreciation, net of capital-build amortization

$

11,149

$

7,283

53%

$

21,508

$

13,625

58%

Share-based compensation

111

41

171%

198

63

214%

Total adjustments

11,260

7,324

54%

21,706

13,688

59%

Adjusted Cost of Sales

$

48,961

$

37,699

30%

$

86,832

$

56,594

53%

Adjusted Cost of Sales as a Percentage of Revenue

73.5%

74.6%

(110) bps

71.3%

74.6%

(330) bps

Adjusted Gross Profit

$

17,658

$

12,853

37%

$

34,945

$

19,258

81%

Adjusted Gross Margin

26.5%

25.4%

110 bps

28.7%

25.4%

330 bps

12


The following unaudited table presents a reconciliation of Adjusted General and Administrative Expenses and Adjusted General and Administrative Expenses as a Percentage of Revenue to the most directly comparable GAAP measures:

(unaudited, dollars in thousands)

Q2'24

Q2'23

Change

Q2'24 YTD

Q2'23 YTD

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP revenue

 

$

66,619

 

$

50,552

 

32%

$

121,777

 

$

75,852

 

61%

GAAP general and administrative expenses

$

33,827

$

34,333

(1)%

$

68,053

$

72,222

(6)%

GAAP general and administrative expenses as a percentage of revenue

50.8%

67.9%

(1,710) bps

55.9%

95.2%

(3,930) bps

Adjustments:

Share-based compensation

$

5,291

$

8,454

(37)%

$

9,905

$

14,859

(33)%

Loss on disposal of property and equipment, net of insurance recoveries, and impairment expense

2,757

2,389

15%

5,497

5,849

(6)%

Bad debt expense

81

56

45%

311

153

103%

Other1

66

24

175%

2,218

1,479

50%

Total adjustments

8,195

10,923

(25)%

17,931

22,340

(20)%

Adjusted General and Administrative Expenses

$

25,632

$

23,410

9%

$

50,122

$

49,882

0%

Adjusted General and Administrative Expenses as a Percentage of Revenue

38.5%

46.3%

(780) bps

41.2%

65.8%

(2,460) bps

1

For the six months ended June 30, 2024, comprised primarily of costs related to the organizational realignment announced by the Company on January 17, 2024. For the six months ended June 30, 2023, comprised primarily of costs related to the previous reorganization of Company resources announced by the Company on February 23, 2023 and the 205 Petition.

The following unaudited table presents a reconciliation of Capital Expenditures, Net of Capital Offsets, to the most directly comparable GAAP measure:

(unaudited, dollars in thousands)

Q2'24

Q2'23

Change

Q2'24 YTD

Q2'23 YTD

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP capital expenditures

 

$

24,196

 

$

34,811

 

(30)%

 

$

45,267

 

$

100,057

 

(55)%

Capital offsets:

OEM infrastructure payments

$

5,956

$

6,022

(1)%

$

11,782

$

9,917

19%

Proceeds from capital-build funding

4,459

2,040

119%

6,139

4,256

44%

Total capital offsets

10,415

8,062

29%

17,921

14,173

26%

Capital Expenditures, Net of Capital Offsets

$

13,781

$

26,749

(48)%

$

27,346

$

85,884

(68)%

For investors:
investors@evgo.com

For Media:
press@evgo.com

Source: EVgo Inc.

13


v3.24.2.u1
Document and Entity Information
Aug. 01, 2024
Document Information [Line Items]  
Document Type 8-K
Document Period End Date Aug. 01, 2024
Entity File Number 001-39572
Entity Registrant Name EVgo Inc.
Entity Incorporation, State or Country Code DE
Entity Tax Identification Number 85-2326098
Entity Address, Address Line One 11835 West Olympic Boulevard
Entity Address, Adress Line Two Suite 900E
Entity Address, City or Town Los Angeles
Entity Address, State or Province CA
Entity Address, Postal Zip Code 90064
City Area Code 877
Local Phone Number 494-3833
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company true
Entity Ex Transition Period false
Entity Central Index Key 0001821159
Amendment Flag false
Common Class A [Member]  
Document Information [Line Items]  
Title of 12(b) Security Shares of Class A common stock, $0.0001 par value per share
Trading Symbol EVGO
Security Exchange Name NASDAQ
Redeemable Warrants for Class A Common Stock [Member]  
Document Information [Line Items]  
Title of 12(b) Security Redeemable warrants, each whole warrant exercisable for one share of Class A common stock at an exercise price of $11.50
Trading Symbol EVGOW
Security Exchange Name NASDAQ