EVgo Inc (EVGO) Reports Substantial Revenue Growth in 2023 Earnings
Revenue: EVgo Inc (NASDAQ:EVGO) reported a significant increase in revenue, reaching $161.0 million for the full year 2023, up 195% from the previous year.
Network Throughput: The company's network throughput grew by 189% year-over-year, reaching 130 GWh for the full year 2023.
Gross Profit: Gross profit turned positive, with a 272% increase year-over-year, signaling improved operational efficiency.
Adjusted EBITDA: Adjusted EBITDA improved by 27%, with the company targeting breakeven in 2025.
Customer Growth: Over 110,000 new customer accounts were added in Q4 2023, bringing the total to over 884,000, a 60% increase from the previous year.
Infrastructure Expansion: EVgo expanded its network, adding over 930 new stalls in 2023, including the first NEVI-funded site in the U.S.
On March 6, 2024, EVgo Inc (NASDAQ:EVGO) released its 8-K filing, detailing the company's financial results for the fourth quarter and full year ended December 31, 2023. EVgo, a leader in electric vehicle charging solutions, operates a comprehensive network of public direct current fast-charging stations across the United States. The company's network supports all EV models and charging standards currently available, catering to a growing customer base of individual drivers, rideshare and commercial fleets, and businesses.
EVgo's revenue for Q4 2023 was $50.0 million, an 83% increase from $27.3 million in Q4 2022. The full year 2023 revenue of $161.0 million represents a substantial 195% increase from the $54.6 million reported for 2022. This growth was primarily driven by increases in charging revenues and eXtend revenue. The company's network throughput also saw a significant increase, with 50 GWh in Q4 2023 compared to 14 GWh in Q4 2022, and 130 GWh for the full year 2023, up from 45 GWh in the previous year.
EVgo's CEO, Badar Khan, highlighted the company's focus on customer experience and digital-first approach, which contributed to the impressive revenue growth. He also noted that the company has reached an important inflection point, with the installed base now profitable on a stand-alone basis. Looking forward, EVgo is well-positioned to continue expanding its network and increasing revenues while targeting Adjusted EBITDA breakeven in 2025.
Financial Performance and Challenges
The company's financial achievements in 2023 are particularly important for EVgo and the Retail - Cyclical industry, as they demonstrate the growing demand for electric vehicle infrastructure and the scalability of EVgo's business model. The positive gross profit and improved gross margin, which reached 6.0% for the full year 2023, up from (10.4)% in the previous year, reflect better operational efficiency and cost management.
Despite these achievements, EVgo reported a net loss of $(36.6) million in Q4 2023 and $(135.5) million for the full year, which was a (115)% and (28)% change, respectively, compared to the same periods in the previous year. These losses underscore the challenges faced by the company in achieving profitability, as well as the significant investments required to expand its charging network.
Key financial metrics from the income statement, balance sheet, and cash flow statement reveal the company's financial position and operational performance. For instance, the net cash used in operating activities was $(37.1) million for the full year 2023, a 37% improvement from the previous year. Capital expenditures were $158.9 million, with capital offsets totaling $36.1 million, reflecting the company's continued investment in its charging infrastructure.
EVgo had a fantastic 2023 as we relentlessly focused on customer experience, a digital-first approach, and station development resulting in revenue growth that nearly tripled," said Badar Khan, EVgos CEO.
As EVgo continues to expand its network and customer base, the company's performance will be critical in maintaining its market position and capitalizing on the growing electric vehicle market. Value investors may find EVgo's growth trajectory and strategic positioning appealing, despite the current challenges in achieving profitability.
For more detailed financial information and to view the complete earnings report, please visit the 8-K filing.
Explore the complete 8-K earnings release (here) from EVgo Inc for further details.
This article first appeared on GuruFocus.
