Financial News

EVgo Inc. Reports Record Second Quarter 2023 Results

  • Revenue grew to a record $50.6 million in the second quarter, representing an increase of 457% year-over-year.
  • Network throughput reached a record 24.9 gigawatt-hours (“GWh”) in the second quarter, an increase of 147% year-over-year.
  • Total network utilization was in the double digits in the second quarter.
  • Ended the second quarter with approximately 3,200 stalls in operation or under construction, with 210 new stalls added to the EVgo network during the quarter.
  • Added more than 82,000 new customer accounts in the second quarter, reaching approximately 688,000 overall at the end of the quarter.
  • Won $13.8 million of Ohio NEVI funding for EVgo owned and EVgo eXtend sites, representing 75% of awarded funds.

 

EVgo Inc. (Nasdaq: EVGO) (“EVgo” or the “Company”) today announced results for the second quarter ended June 30, 2023. Management will host a conference call today at 5:00 p.m. ET / 2:00 p.m. PT to discuss EVgo’s results and other business highlights.

Revenue increased to $50.6 million in the second quarter of 2023, compared to $9.1 million in the second quarter of 2022, representing 457% year-over-year growth. Revenue growth was primarily driven by year-over-year increases in eXtend™ revenue and charging revenues.

Network throughput increased to 24.9 GWh in the second quarter of 2023, compared to 10.1 GWh in the second quarter of 2022, representing 147% year-over-year growth. The Company added approximately 82,000 new customer accounts during the second quarter, bringing the overall number of customer accounts to 688,000 at quarter-end, an increase of 55% year-over-year.

“EVgo had a phenomenal second quarter with significant growth in key areas including stalls, throughput, customer accounts, utilization, and revenue,” said Cathy Zoi, EVgo’s CEO. “We are pleased to report EVgo’s network throughput growth is accelerating, demonstrating the leverage in our business and financial model as the auto sector rapidly electrifies. We continue to energize new stalls across the network and surpassed the double-digit utilization threshold for the quarter network wide. In addition, EVgo won 75% of Ohio’s NEVI awards and will put $13.8 million to work in EVgo-owned and EVgo eXtend sites across the state. Our results demonstrate the depth of our team and experience in developing, constructing, and operating a leading fast charging network.”

Business Highlights

  • National Electric Vehicle Infrastructure Program (“NEVI”): EVgo and its eXtend™ partners were selected by DriveOhio, a division of the Ohio Department of Transportation, for proposed awards of $13.8 million in funding to deploy 20 fast charging stations in Ohio.
  • GM Partnership: EVgo and General Motors opened the 1,000th stall under the program.
  • EVgo eXtendTM: During the second quarter, the Company continued delivering charging equipment and began site mobilization for projects under the Pilot Flying J/GM program. The Company expects to have the first Pilot site operational in the third quarter of 2023.
  • Fleet Charging: EVgo’s public fleet charging business continues to scale with growth in rideshare throughput from last quarter, largely driven by collaborative partnerships with Uber and Lyft. EVgo also launched a partnership with a major car sharing company to support their pilot of electric vehicles in San Francisco. In the Hubs sector, the Company operationalized a new dedicated charging hub site and broke ground on another dedicated hub in San Francisco with an existing AV partner.
  • North American Charging Standard (“NACS”) Connectors: Announced plans to add NACS connectors to EVgo chargers.
  • EVgo Autocharge+: Autocharge+ exceeded 13% of total charging sessions initiated.
  • PlugShare: PlugShare reached nearly 3.7 million registered users and achieved 6.9 million check-ins since inception. Signed a PlugShare deal with GM to provide comprehensive POI data for GM’s applications for its EV customers in several geographic regions, including North America, and South America for the next three years.
  • Equity Issuance: The Company issued approximately 890,000 shares of Class A common stock with $5.7 million raised in net proceeds through its “at-the-market” equity offering program followed by the issuance of approximately 30.1 million shares of Class A common stock with $123.4 million raised in net proceeds through a primary equity offering.

Financial & Operational Highlights

The below represent summary financial and operational figures for the second quarter of 2023.

  • Revenue of $50.6 million
  • Network Throughput of 24.9 gigawatt-hours
  • Customer Account Additions of approximately 82,000 accounts
  • Gross Profit of $5.5 million
  • Net Loss of $21.5 million
  • Adjusted Gross Profit of $12.9 million1
  • Adjusted EBITDA of ($10.6) million1
  • Cash Flows Used in Operating Activities of $3.2 million
  • Gross Capital Expenditures of $34.8 million

1Adjusted Gross Profit and Adjusted EBITDA 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 Measures” included elsewhere in this release.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(unaudited, dollars in thousands)

Q2'23

 

Q2'22

Change

 

Q2'23 YTD

 

Q2'22 YTD

Change

Charging revenue, retail

 

$

9,085

 

$

4,389

107%

 

$

15,700

 

$

7,891

99%

Charging revenue, commercial

 

 

2,418

 

 

654

270%

 

 

4,133

 

 

1,363

203%

Charging revenue, OEM

 

 

986

 

 

189

422%

 

 

1,538

 

 

340

352%

Regulatory credit sales

 

 

1,613

 

 

2,128

(24)%

 

 

2,828

 

 

3,506

(19)%

Network revenue, OEM

 

 

742

 

 

887

(16)%

 

 

3,441

 

 

1,377

150%

eXtend revenue

 

 

33,281

 

 

131

* %

 

 

43,573

 

 

211

* %

Ancillary revenue

 

 

2,427

 

 

698

248%

 

 

4,639

 

 

2,088

122%

Total revenue

 

$

50,552

 

$

9,076

457%

 

$

75,852

 

$

16,776

352%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

* Percentage greater than 999%.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(unaudited, dollars in thousands)

Q2'23

 

Q2'22

Better

(Worse)

 

Q2'23 YTD

 

Q2'22 YTD

Better

(Worse)

Network Throughput (GWh)

 

 

24.9

 

 

10.1

147%

 

 

42.8

 

 

18.1

136%

GAAP revenue

 

$

50,552

 

$

9,076

457%

 

$

75,852

 

$

16,776

352%

GAAP gross profit (loss)

 

$

5,529

 

$

(744)

843%

 

$

5,570

 

$

(1,344)

514%

GAAP gross margin

 

 

10.9%

 

 

(8.2)%

1,910 bps

 

 

7.3%

 

 

(8.0)%

1,530 bps

GAAP net (loss) income

 

$

(21,539)

 

$

16,997

(227)%

 

$

(70,620)

 

$

(38,269)

(85)%

Adjusted Gross Profit¹

 

$

12,853

 

$

3,383

280%

 

$

19,258

 

$

6,248

208%

Adjusted Gross Margin1

 

 

25.4%

 

 

37.3%

(1,190) bps

 

 

25.4%

 

 

37.2%

(1,180) bps

Adjusted EBITDA1

 

$

(10,553)

 

$

(19,837)

47%

 

$

(30,620)

 

$

(38,013)

19%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(unaudited, dollars in thousands)

Q2'23

 

Q2'22

 

 

Q2'23 YTD

 

Q2'22 YTD

 

Cash flows used in operating activities

 

$

(3,182)

 

$

(18,539)

 

 

$

(22,525)

 

$

(38,370)

 

Capital expenditures

 

$

34,811

 

$

44,017

 

 

$

100,057

 

$

72,291

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 measure, please see “Definitions of Non-GAAP Financial Measures” and “Reconciliations of Non-GAAP Measures” included elsewhere in these materials.

2023 Financial & Operating Guidance

EVgo is updating full year 2023 guidance as follows:

  • Total revenue of $120 – $150 million
  • Adjusted EBITDA of ($78) – ($68) million*

Additionally, at year-end 2023, EVgo continues to expect to have a total of 3,400 – 4,000 DC fast charging stalls in operation or under construction.

*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 and a reconciliation to the most directly comparable GAAP measure for historical periods presented in this release, please see “Definitions of Non-GAAP Financial Measures” and “Reconciliations of Non-GAAP Measures” included elsewhere in this release.

Conference Call Information

A live audio webcast and conference call for EVgo’s second quarter 2023 earnings release will be held today at 5:00 p.m. ET / 2:00 p.m. 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, 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 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. Since 2019, EVgo has purchased renewable energy certificates to match the electricity that powers its network. As one of the nation’s largest public fast charging networks, EVgo’s owned and operated charging network includes around 900 fast charging locations, 60 metropolitan areas and 30 states. EVgo continues to add more DC fast charging locations across the U.S., 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, robust software products 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. These forward-looking statements include, but are not limited to, express or implied statements regarding EVgo’s future financial and operating performance, revenues, capital expenditures, chargers in operation or under construction and network throughput; EVgo’s expectation of market position and acceleration in its business due to factors including increased EV adoption; the Company’s collaboration with partners enabling effective deployment of chargers, including under its contract with Pilot Flying J and GM; and anticipated awards of funding in connection with the NEVI program and associated state programs. 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; macro political, economic, and business conditions, including inflation and geopolitical conflicts that could impact EVgo’s supply chains; increased competition, including from new and existing entrants in the EV charging market; unfavorable conditions or further disruptions in the capital and credit markets and EVgo's ability to obtain additional capital on commercially reasonable terms; EVgo’s limited operating history as a public company; EVgo’s dependence on widespread adoption of EVs and increased installation of charging stations; mechanisms surrounding energy and non-energy costs for EVgo’s charging stations; the impact of governmental support and mandates that could reduce, modify, or eliminate financial incentives, rebates, tax credits, and other support available to EVgo; supply chain disruptions; EVgo’s ability to expand into new service markets, grow its customer base, and manage its operations; EVgo’s ability to adapt its assets and infrastructure to changes in industry and regulatory standards for EV charging; impediments to EVgo’s expansion plans, including permitting delays; the need to attract additional fleet operators as customers; potential adverse effects on EVgo’s revenue and gross margins if customers increasingly claim clean energy credits and, as a result, they are no longer available to be claimed by EVgo; risks related to EVgo’s dependence on its intellectual property; and risks that EVgo’s technology could have undetected defects or errors. 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.

Financial Statements

EVgo Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

 

 

 

 

 

 

 

 

 

June 30,

 

December 31,

 

 

2023

 

2022

(in thousands)

 

(unaudited)

 

 

 

Assets

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash, cash equivalents and restricted cash

 

$

257,126

 

 

$

246,193

 

Accounts receivable, net of allowance of $831 and $687 as of June 30, 2023 and December 31, 2022, respectively

 

 

22,497

 

 

 

11,075

 

Accounts receivable, capital-build

 

 

11,203

 

 

 

8,011

 

Prepaid expenses

 

 

2,783

 

 

 

4,953

 

Other current assets

 

 

3,537

 

 

 

5,252

 

Total current assets

 

 

297,146

 

 

 

275,484

 

Property, equipment and software, net

 

 

383,822

 

 

 

308,112

 

Operating lease right-of-use assets

 

 

53,895

 

 

 

51,856

 

Restricted cash

 

 

300

 

 

 

300

 

Other assets

 

 

2,115

 

 

 

2,308

 

Intangible assets, net

 

 

54,805

 

 

 

60,612

 

Goodwill

 

 

31,052

 

 

 

31,052

 

Total assets

 

$

823,135

 

 

$

729,724

 

 

 

 

 

 

 

 

Liabilities, redeemable noncontrolling interest and stockholders’ deficit

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Accounts payable

 

$

6,445

 

 

$

9,128

 

Accrued liabilities

 

 

40,831

 

 

 

39,233

 

Operating lease liabilities, current

 

 

5,575

 

 

 

4,958

 

Deferred revenue, current

 

 

16,701

 

 

 

16,023

 

Customer deposits

 

 

11,386

 

 

 

17,867

 

Other current liabilities

 

 

280

 

 

 

136

 

Total current liabilities

 

 

81,218

 

 

 

87,345

 

Operating lease liabilities, noncurrent

 

 

47,753

 

 

 

45,689

 

Earnout liability, at fair value

 

 

1,297

 

 

 

1,730

 

Asset retirement obligations

 

 

18,477

 

 

 

15,473

 

Capital-build liability

 

 

30,345

 

 

 

26,157

 

Deferred revenue, noncurrent

 

 

42,162

 

 

 

23,900

 

Warrant liabilities, at fair value

 

 

11,293

 

 

 

12,304

 

Total liabilities

 

 

232,545

 

 

 

212,598

 

Commitments and contingencies

 

 

 

 

 

 

Redeemable noncontrolling interest

 

 

783,200

 

 

 

875,226

 

Stockholders' deficit

 

 

(192,610

)

 

 

(358,100

)

Total liabilities, redeemable noncontrolling interest and stockholders’ deficit

 

$

823,135

 

 

$

729,724

 

EVgo Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30,

 

June 30,

(unaudited, dollars in thousands, except per share data)

 

2023

 

2022

 

Change %

 

2023

 

2022

 

Change %

Revenue

 

$

50,552

 

 

$

9,076

 

 

457

%

 

$

75,852

 

 

$

16,776

 

 

352

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

 

37,740

 

 

 

5,719

 

 

560

%

 

 

56,657

 

 

 

10,565

 

 

436

%

Depreciation, net of capital-build amortization

 

 

7,283

 

 

 

4,101

 

 

78

%

 

 

13,625

 

 

 

7,555

 

 

80

%

Cost of sales

 

 

45,023

 

 

 

9,820

 

 

358

%

 

 

70,282

 

 

 

18,120

 

 

288

%

Gross profit (loss)

 

 

5,529

 

 

 

(744

)

 

843

%

 

 

5,570

 

 

 

(1,344

)

 

514

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative expenses

 

 

34,333

 

 

 

32,178

 

 

7

%

 

 

72,222

 

 

 

57,606

 

 

25

%

Depreciation, amortization and accretion

 

 

4,783

 

 

 

4,132

 

 

16

%

 

 

9,567

 

 

 

8,019

 

 

19

%

Total operating expenses

 

 

39,116

 

 

 

36,310

 

 

8

%

 

 

81,789

 

 

 

65,625

 

 

25

%

Operating loss

 

 

(33,587

)

 

 

(37,054

)

 

9

%

 

 

(76,219

)

 

 

(66,969

)

 

(14

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

 

 

 

(13

)

 

100

%

 

 

 

 

 

(13

)

 

100

%

Interest income

 

 

2,199

 

 

 

636

 

 

246

%

 

 

4,197

 

 

 

691

 

 

507

%

Other expense, net

 

 

(1

)

 

 

(158

)

 

99

%

 

 

 

 

 

(422

)

 

100

%

Change in fair value of earnout liability

 

 

2,496

 

 

 

4,891

 

 

(49

)%

 

 

433

 

 

 

2,627

 

 

(84

)%

Change in fair value of warrant liabilities

 

 

7,391

 

 

 

48,712

 

 

(85

)%

 

 

1,011

 

 

 

25,839

 

 

(96

)%

Total other income, net

 

 

12,085

 

 

 

54,068

 

 

(78

)%

 

 

5,641

 

 

 

28,722

 

 

(80

)%

(Loss) income before income tax expense

 

 

(21,502

)

 

 

17,014

 

 

(226

)%

 

 

(70,578

)

 

 

(38,247

)

 

(85

)%

Income tax expense

 

 

(37

)

 

 

(17

)

 

(118

)%

 

 

(42

)

 

 

(22

)

 

(91

)%

Net (loss) income

 

 

(21,539

)

 

 

16,997

 

 

(227

)%

 

 

(70,620

)

 

 

(38,269

)

 

(85

)%

Less: net (loss) income attributable to redeemable noncontrolling interest

 

 

(14,513

)

 

 

12,518

 

 

(216

)%

 

 

(50,518

)

 

 

(28,349

)

 

(78

)%

Net (loss) income attributable to Class A common stockholders

 

$

(7,026

)

 

$

4,479

 

 

(257

)%

 

$

(20,102

)

 

$

(9,920

)

 

(103

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income per share to Class A common stockholders, basic

 

$

(0.08

)

 

$

0.06

 

 

(233

)%

 

$

(0.25

)

 

$

(0.14

)

 

(79

)%

Net (loss) income per share to Class A common stockholders, diluted

 

$

(0.08

)

 

$

0.06

 

 

(233

)%

 

$

(0.25

)

 

$

(0.14

)

 

(79

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common stock outstanding, basic

 

 

85,320

 

 

 

68,545

 

 

 

 

 

78,196

 

 

 

68,449

 

 

 

Weighted average common stock outstanding, diluted

 

 

85,320

 

 

 

69,322

 

 

 

 

 

78,196

 

 

 

68,449

 

 

 

EVgo Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

 

 

 

 

 

 

 

 

 

Six Months Ended

 

 

June 30,

(unaudited, in thousands)

 

2023

 

2022

Cash flows from operating activities

 

 

 

 

 

 

Net loss

 

$

(70,620

)

 

$

(38,269

)

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

 

 

 

 

 

 

Depreciation, amortization and accretion

 

 

23,192

 

 

 

15,574

 

Net loss on disposal of property and equipment and impairment expense

 

 

6,008

 

 

 

2,889

 

Share-based compensation

 

 

14,922

 

 

 

10,548

 

Change in fair value of earnout liability

 

 

(433

)

 

 

(2,627

)

Change in fair value of warrant liabilities

 

 

(1,011

)

 

 

(25,839

)

Other

 

 

(155

)

 

 

474

 

Changes in operating assets and liabilities

 

 

 

 

 

 

Accounts receivable, net

 

 

(11,422

)

 

 

(2,302

)

Receivables from related parties

 

 

 

 

 

1,499

 

Prepaid expenses and other current and noncurrent assets

 

 

3,779

 

 

 

3,735

 

Operating lease assets and liabilities, net

 

 

642

 

 

 

(808

)

Accounts payable

 

 

(2,872

)

 

 

(76

)

Accrued liabilities

 

 

2,925

 

 

 

358

 

Deferred revenue

 

 

18,939

 

 

 

(572

)

Customer deposits

 

 

(6,481

)

 

 

(2,110

)

Other current and noncurrent liabilities

 

 

62

 

 

 

(844

)

Net cash used in operating activities

 

 

(22,525

)

 

 

(38,370

)

Cash flows from investing activities

 

 

 

 

 

 

Purchases of property, equipment and software

 

 

(100,057

)

 

 

(72,291

)

Proceeds from insurance for property losses

 

 

159

 

 

 

202

 

Purchases of investments

 

 

 

 

 

(34,747

)

Net cash used in investing activities

 

 

(99,898

)

 

 

(106,836

)

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

 

 

4,256

 

 

 

5,029

 

Proceeds from exercise of warrants

 

 

 

 

 

3

 

Payments of issuance costs

 

 

(4,751

)

 

 

 

Net cash provided by financing activities

 

 

133,356

 

 

 

5,032

 

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

 

 

10,933

 

 

 

(140,174

)

Cash, cash equivalents and restricted cash, beginning of period

 

 

246,493

 

 

 

485,181

 

Cash, cash equivalents and restricted cash, end of period

 

$

257,426

 

 

$

345,007

 

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 Measures” included at the end of this release.

Definitions of Non-GAAP Financial Measures

This release includes the following non-GAAP financial measures, in each case as defined below: “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,” and “Adjusted EBITDA Margin.” EVgo believes these measures are useful to investors in evaluating EVgo’s performance. In addition, EVgo management uses these measures internally to establish forecasts, budgets, and operational goals to manage and monitor its business. EVgo believes that these measures help to depict a more meaningful representation of the performance of the underlying business, enabling EVgo to evaluate and plan more effectively for the future.

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 and Adjusted EBITDA Margin 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.

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 recoveries, and impairment expense, (iii) bad debt expense, 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. 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 recoveries, and impairment expense, (iii) (gain) loss on investments, (iv) bad debt expense, (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.

Reconciliations of Non-GAAP 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)

Q2'23

 

Q2'22

 

Change

 

Q2'23 YTD

 

Q2'22 YTD

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP revenue

$

50,552

 

 

$

9,076

 

 

457%

 

 

$

75,852

 

 

$

16,776

 

 

352%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP net (loss) income

$

(21,539

)

 

$

16,997

 

 

(227)%

 

 

$

(70,620

)

 

$

(38,269

)

 

(85)%

GAAP net (loss) income margin

 

(42.6

%)

 

 

187.3

%

 

* bps

 

 

 

(93.1

%)

 

 

(228.1

%)

 

* bps

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation, net of capital-build amortization

 

7,407

 

 

 

4,170

 

 

78%

 

 

 

13,875

 

 

 

7,687

 

 

80%

Amortization

 

4,117

 

 

 

3,564

 

 

16%

 

 

 

8,236

 

 

 

6,929

 

 

19%

Accretion

 

542

 

 

 

499

 

 

9%

 

 

 

1,081

 

 

 

958

 

 

13%

Interest income

 

(2,199

)

 

 

(636

)

 

(246)%

 

 

 

(4,197

)

 

 

(691

)

 

(507)%

Interest expense

 

 

 

 

13

 

 

(100)%

 

 

 

 

 

 

13

 

 

(100)%

Income tax expense

 

37

 

 

 

17

 

 

118%

 

 

 

42

 

 

 

22

 

 

91%

EBITDA

 

(11,635

)

 

 

24,624

 

 

(147)%

 

 

 

(51,583

)

 

 

(23,351

)

 

(121)%

EBITDA Margin

 

(23.0

%)

 

 

271.3

%

 

* bps

 

 

 

(68.0

%)

 

 

(139.2

%)

 

7,119 bps

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share-based compensation

 

8,495

 

 

 

7,042

 

 

21%

 

 

 

14,922

 

 

 

10,548

 

 

41%

Loss on disposal of property and equipment, net of recoveries, and impairment expense1

 

2,389

 

 

 

1,879

 

 

27%

 

 

 

5,849

 

 

 

2,647

 

 

121%

Loss on investments

 

5

 

 

 

150

 

 

(97)%

 

 

 

4

 

 

 

405

 

 

(99)%

Bad debt expense

 

56

 

 

 

35

 

 

60%

 

 

 

153

 

 

 

151

 

 

1%

Change in fair value of earnout liability

 

(2,496

)

 

 

(4,891

)

 

49%

 

 

 

(433

)

 

 

(2,627

)

 

84%

Change in fair value of warrant liabilities

 

(7,391

)

 

 

(48,712

)

 

85%

 

 

 

(1,011

)

 

 

(25,839

)

 

96%

Other1,2

 

24

 

 

 

36

 

 

(33)%

 

 

 

1,479

 

 

 

53

 

 

* %

Adjusted EBITDA

$

(10,553

)

 

$

(19,837

)

 

47%

 

 

$

(30,620

)

 

$

(38,013

)

 

19%

Adjusted EBITDA Margin

 

(20.9

%)

 

 

(218.6

%)

 

* bps

 

 

 

(40.4

%)

 

 

(226.6

%)

 

* bps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

* Percentage greater than 999% or bps greater than 9,999

1 In the second quarter of 2023, the Company reclassified insurance proceeds from property losses from "other" to "loss on disposal of property and equipment, net of recoveries, and impairment expense." Previously reported amounts have been updated to conform to the current period presentation.

2 For the six months ended June 30, 2023, comprised primarily of costs related to the reorganization of Company resources previously 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”), which are not expected to recur.

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(unaudited, dollars in thousands)

Q2'23

 

Q2'22

 

Change

 

 

Q2'23 YTD

 

Q2'22 YTD

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP revenue

$

50,552

 

 

$

9,076

 

 

457%

 

 

$

75,852

 

 

$

16,776

 

 

352%

GAAP cost of sales

 

45,023

 

 

 

9,820

 

 

358%

 

 

 

70,282

 

 

 

18,120

 

 

288%

GAAP gross profit (loss)

$

5,529

 

 

$

(744

)

 

843%

 

 

$

5,570

 

 

$

(1,344

)

 

514%

GAAP cost of sales as a percentage of revenue

 

89.1

%

 

 

108.2

%

 

(1,910) bps

 

 

 

92.7

%

 

 

108.0

%

 

(1,530) bps

GAAP gross margin

 

10.9

%

 

 

(8.2

%)

 

1,910 bps

 

 

 

7.3

%

 

 

(8.0

%)

 

1,530 bps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation, net of capital-build amortization

$

7,283

 

 

$

4,101

 

 

78%

 

 

$

13,625

 

 

$

7,555

 

 

80%

Share-based compensation

 

41

 

 

 

26

 

 

58%

 

 

 

63

 

 

 

37

 

 

70%

Total adjustments

 

7,324

 

 

 

4,127

 

 

77%

 

 

 

13,688

 

 

 

7,592

 

 

80%

Adjusted Cost of Sales

$

37,699

 

 

$

5,693

 

 

562%

 

 

$

56,594

 

 

$

10,528

 

 

438%

Adjusted Cost of Sales as a Percentage of Revenue

 

74.6

%

 

 

62.7

%

 

1,190 bps

 

 

 

74.6

%

 

 

62.8

%

 

1,180 bps

Adjusted Gross Profit

$

12,853

 

 

$

3,383

 

 

280%

 

 

$

19,258

 

 

$

6,248

 

 

208%

Adjusted Gross Margin

 

25.4

%

 

 

37.3

%

 

(1,190) bps

 

 

 

25.4

%

 

 

37.2

%

 

(1,180) bps

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)

Q2'23

 

Q2'22

 

Change

 

Q2'23 YTD

 

Q2'22 YTD

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP revenue

$

50,552

 

 

$

9,076

 

 

457%

 

 

$

75,852

 

 

$

16,776

 

 

352%

GAAP general and administrative expenses

$

34,333

 

 

$

32,178

 

 

7%

 

 

$

72,222

 

 

$

57,606

 

 

25%

GAAP general and administrative expenses as a percentage of revenue

 

67.9

%

 

 

354.5

%

 

* bps

 

 

 

95.2

%

 

 

343.4

%

 

* bps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share-based compensation

$

8,454

 

 

$

7,016

 

 

20%

 

 

$

14,859

 

 

$

10,511

 

 

41%

Loss on disposal of property and equipment, net of recoveries, and impairment expense1

 

2,389

 

 

 

1,879

 

 

27%

 

 

 

5,849

 

 

 

2,647

 

 

121%

Bad debt expense

 

56

 

 

 

35

 

 

60%

 

 

 

153

 

 

 

151

 

 

1%

Other1,2

 

24

 

 

 

36

 

 

(33)%

 

 

 

1,479

 

 

 

53

 

 

* %

Total adjustments

 

10,923

 

 

 

8,966

 

 

22%

 

 

 

22,340

 

 

 

13,362

 

 

67%

Adjusted General and Administrative Expenses

$

23,410

 

 

$

23,212

 

 

1%

 

 

$

49,882

 

 

$

44,244

 

 

13%

Adjusted General and Administrative Expenses as a Percentage of Revenue

 

46.3

%

 

 

255.8

%

 

* bps

 

 

 

65.8

%

 

 

263.7

%

 

* bps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

* Percentage greater than 999% or bps greater than 9,999

1 In the second quarter of 2023, the Company reclassified insurance proceeds from property losses from "other" to "loss on disposal of property and equipment, net of recoveries, and impairment expense." Previously reported amounts have been updated to conform to the current period presentation.

2 For the six months ended June 30, 2023, comprised primarily of costs related to the reorganization of Company resources previously 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”), which are not expected to recur.

 

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