EVgo, Inc. (NASDAQ:EVGO) Q2 2023 Earnings Call Transcript

Bill Peterson: Yeah, thanks for taking the questions. Congrats to both Cathy and Olga, significant milestones. So, many good luck with the next endeavors. My first question is on the full year view. So, obviously, a big jump in eXtend and you kind of give some guidance on what’s going to happen with eXtend more construction-related, but I guess, directly, it’s obviously it would appear to have to come down, but how do we think about the mix between the third and fourth quarter that has an impact on margins as well? But then, as we think about the charging side of the business, we’re seeing some indications that there’s inventory building up on lots now. It’s hard to predict what kind of growth we should see from the EV growth, but obviously been driving better utilization, and network throughput.

So I’m trying to get a feel for how we should think about seasonality in the business. Big step-up in 3Q followed by somewhat finding in 4Q. Is that the right way to think about it? And if you can just unpack the full year, that’d be helpful.

Stephanie Lee: Sure. In terms of the core charging revenues, as I mentioned, we’re expecting sequential growth even though, I think we’ve got some questions previously about seasonality in the business because we are such growth business we haven’t seen the impact of seasonality because of the quarter-over-quarter growth in our throughput, as more EVs hit the road and for all of the various reasons we just talked about. So the core charging business should sequentially grow is how I model that. And then, as it relates to the eXtend part of the business as I mentioned, we will see a step down in that revenue in the second half, really going to be informed by, how much of the BABA chargers are going to be available and how much hardware sales we are going to see.

Bill Peterson: Okay. Thank you. Thanks for that. My second question is, you discussed a bit last quarter of the Chevron Texaco gas station, but do you want to try to get a feel for the timing and ramp for these retailers? And I guess, I have a – and sort of related, Chevron, we are aware of them actually looking to implement battery buffer charging from a company called Freewire. So, I am assuming EVgo’s arrangement is separate from the arrangement that Chevron has, but. But I guess, holistically, I guess, how is EVgo’s view battery buffered as a potential option for service stations or maybe just rural sites in general where at the power may be harder to come by especially taken the commentary around transformers and Make-Ready in the past?

Cathy Zoi: Yes, Bill, what we’ve – I think we said this before, we’re quite open to putting batteries on site and we’ve done at 14 at 14 different locations in California actually, at Chevron stations in over history. We did it in the past year, because there was a California – like funding program to experiment with it and basically if it was a kind of a pilot program. If absent extra funding, it doesn’t pencil yet. So and there’s no sort of – there is no commercial imperative for us to do it. But we remain excited about the possibility if there becomes a financial reason to actually do put on-site storage. So we’re open to it. But right now, it actually doesn’t seem to make financial sense in most places. And again, we haven’t had Chevron actively asking us to do that yet as we sort of figure out what are the contours of that agreement. So, but we’re open to it. We’ve got teams of people that have experience with it here on the team so.

Bill Peterson: Yeah, and then on the first part on timing and ramp up of those opportunities?

Cathy Zoi: It’s what – Chevron – we have a master site agreement with Chevron and it’s just still in the very, very early planning stages. So nothing specific to report on that yet.

Bill Peterson: Okay. Thanks Cathy. Congrats again.

Cathy Zoi: Thank you.

Operator: Our next question comes from the line of Craig Irwin from ROTH MKM. Please go ahead.

Craig Irwin : Good evening and thank you for taking my question. So, Cathy, over the last few months, there’s been some controversy out there in the market and you guys have had a direct response with a couple of your press releases. There’s some analysts out there saying that that one company, one certain company is going to take the lion’s share of the available subsidies in the EV charging market. It doesn’t strike me that that’s the way it’s been working. Can you can you maybe talk about your ability to procure subsidies in the markets that you’re serving and to work with your partners like Pilot Flying J to make sure that they have access to all the funding that’s available?