EVgo Inc To Host a Financial Modeling Webinar Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Chris Dendrinos - RBC Capital Markets - Analyst : Hi. Thank you. Really appreciate you guys putting this together. It's super helpful. And I guess maybe just starting off here on the on the tax credits. I mean, should we be anticipating any type of sale this year? And then maybe just how should we think about pricing or valuation on those as maybe a discount to the total value of both the tax liability. Thank you.

Question: Chris Dendrinos - RBC Capital Markets - Analyst : Got it. Thanks. And then I guess maybe as a follow-up, I know you guys have that deal, which with GM to get those payments through for the stores. Is there any additional conversations kind of going on and maybe what's the appetite from are the OEMs out there to continue funding for the network build-out Thanks.

Question: Chris Dendrinos - RBC Capital Markets - Analyst : Got it. Thank you.

Question: Stephen Gengaro - Stifel, Nicolaus & Company, Inc. - Analyst : Yes. So two questions for me. And I just wanted to go back and I can't see it on my screen anymore. The example and that Olga laid out. But I think in the in the in the sort of target example, you're talking about $35,000 in cash flow per charger per year. Am I reading that right?

Question: Stephen Gengaro - Stifel, Nicolaus & Company, Inc. - Analyst : Okay. Thanks. I just wanted to make sure I saw that correctly. And then that two other question.

Question: Stephen Gengaro - Stifel, Nicolaus & Company, Inc. - Analyst : Okay, great. But I understand that. Thank you. And then when we think about your either your installed base or as you sort of think about and how your network is evolving? I believe most of what you're putting in right now is at the high end of the range right, the 350 plus chargers. But when we think about your installed base, is there any color you can give us on kind of what it looks like now and how you think about it and like 2025?

Question: Stephen Gengaro - Stifel, Nicolaus & Company, Inc. - Analyst : Okay, great. Great. And then and then just one final one on I know advantage of reduced power during the earnings call. But when we think about your site planning and your track record, there is obviously very good and the algorithms that AI used to sort of determine locations a number of stalls, et cetera, how to think about the Tesla impact and then open your network and how that either impacts sort of your existing assets in the ground and or your site planning? And I assume you're taking them into account?

Question: Stephen Gengaro - Stifel, Nicolaus & Company, Inc. - Analyst : Great now. Thank you for your industry. There's a lot of great detail. Thank you for doing this call. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 04, 2024 / 9:00PM, EVGO.OQ - EVgo Inc To Host a Financial Modeling Webinar

Question: Craig Irwin - Roth MKM - Analyst : Thank you. I also say thank you for doing this call, and this is very helpful. We really appreciate that. I'm looking at the on the illustrative cash flows of your solid performance right on US single style basis on the top 15%. Can you comment or is this basically all 350s versus a network average in the fourth quarter that was materially below that. Is that a large part of the delta on the throughput or is it more geography and some other factors that are driving a major chunk of this difference?

Question: Craig Irwin - Roth MKM - Analyst : Okay, excellent. So then your throughputs in your target scenario that you laid out are 450, which is what you're achieving today on your top 15% of the network. So over the next number of years, you know, equipment's going to continue to improve. And the nice thing is with the diversity of vendors, you have the quality and capabilities of the equipment that you buy will change and evolve and improve for the experience of EV drivers. Is there a specific reason that you keep this throughput assumption flat. You didn't mention the of the Renew program, obviously that's something that's lifting the legacy base. But is there is there is there may be room for the throughputs to go up and you know, I assume commercial will be a bigger piece going forward and that that could potentially looked at that number quite dramatically.

Question: Craig Irwin - Roth MKM - Analyst : Excellent. Excellent. And then last question is really a point of clarification. So your target network average that you share with us is this something that we're maybe considering in a single digit or even low single digit number of years? Or is this something you know, out over the next decade?

Question: Craig Irwin - Roth MKM - Analyst : Perfect, perfect. Thank you again for taking my questions. Really appreciate you guys holding this call.

Question: Gabe Daoud - TD Cowen - Analyst : Yes, sorry about that. Thanks for. Thanks for putting this together. A lot of a lot of great detail and color on incredibly helpful. Could we maybe just go back to that about on the last question on annual guidance? Olga you mentioned that maybe a three to 5-year target. What are what are maybe some of the assumptions that you have embedded in here in terms of the size of the EV fleet over the next couple of years in order to sustain a 23% utilization rate?

Question: Gabe Daoud - TD Cowen - Analyst : Well, thanks, Badar. That's a good point. That's helpful. And then I guess just as a follow-up, also, maybe just sticking to set some targets over the three to five year period. If you do achieve this target network average across the network, what does that or how does that translate to what like the adjusted gross margin looks like at the corporate level over the next three to five years, how does that number and over time?

Question: Gabe Daoud - TD Cowen - Analyst : (multiple speakers) That's right, we see a good number as one of the I think we can maybe dial that in a bit better. But no doubt that's helpful.

Question: Gabe Daoud - TD Cowen - Analyst : Okay. Okay. Well, thanks, everyone. And yes, like I said, thanks again for holding the call if you want.

Question: Bill Peterson - JPMorgan - Analyst : Hi, good afternoon. Yes, hi. Thanks for doing the call. I wanted to actually talk more about the market. I think you talked about was first sizes around the network throughput from about 200 gigawatts, I guess coming in ahead of your expectations, I think the spec actually closer 250 around this timeframe. So I'm not sure what timeframe you're talking about. But in any case, I think the DOE data says you had around 7% share of fast charging tests are up 55%. You're looking at 800 to 900 stores per year. So I'm trying to get a sense of how do you see the share of the market today of this network throughput and that install rate that you're talking about how do you see the share of market progressing?

Question: Bill Peterson - JPMorgan - Analyst : That's the question. What does your share of the market in gigawatt hours?

Question: Bill Peterson - JPMorgan - Analyst : How should that track when you when you add stalls?

Question: Bill Peterson - JPMorgan - Analyst : And what do you expect your share of the market was with this 200 gigawatt hours?

Question: Bill Peterson - JPMorgan - Analyst : Okay. That's fine. So just coming back to this target network on the cash flow reaching, I guess, what 37,000 for this sustaining G&A per store. And I think this target we said three to five years out. Would it we could probably back into it, but what is the expectation of G&A growth over that timeframe.

Question: Bill Peterson - JPMorgan - Analyst : Yes. What does it take to achieve the sort of target of three to five years? This sustained G&A per store comes down, but presumably it goes up again, we can probably back into it just like the FDA and understand so underlying.

Question: Bill Peterson - JPMorgan - Analyst : Yes. No, that's helpful. Thank you.

Question: Stephen Gengaro - Stifel, Nicolaus & Company, Inc. - Analyst : Thanks for taking the follow up. You have to do two quick ones. One, if I may be overthinking this a little bit when you think about utilization of the assets and you think about so the evolution in EV buyers right, because my sense is, you know, right now you're buying it easier. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 04, 2024 / 9:00PM, EVGO.OQ - EVgo Inc To Host a Financial Modeling Webinar While you have on one hand, you could charge at home or are you taking into account like the likelihood that as EV adoption kind of accelerates into places where people can't necessarily charge at home, that there's a utilization impact?

Question: Stephen Gengaro - Stifel, Nicolaus & Company, Inc. - Analyst : Great, thanks. And then just one quick follow-up to one of the things Aldo mentioned earlier was when you talk about credits in California, is that a meaningful portion of revenue or minimum? Can you give us any color on sort of the impact that has on the top line?

Question: Stephen Gengaro - Stifel, Nicolaus & Company, Inc. - Analyst : Okay, great. Thank you.

Question: Doug Becker - Capital One Securities, Inc. - Analyst : But I just want to reiterate, I think this is very helpful in the examples you were using the average CapEx of $160,000, which I guess is the expected average for this year. What's the expectation going forward in that three to five year period? And specifically thinking about on the prefabrication approach and you just opened up a site in Texas. Does that actually allow that number to go down over time? Or do other inflationary pressures, keep it around that $160,000 level?

Question: Doug Becker - Capital One Securities, Inc. - Analyst : And just any high-level thoughts on how many sites are candidates for the prefab skids?

Question: Doug Becker - Capital One Securities, Inc. - Analyst : Understood. Thank you very much.

Question: Chris Dendrinos - RBC Capital Markets - Analyst : Hi, thanks for taking the follow-up, here, you talked a bit about how do you guys differentiate versus Tesla? And I think one thing with them is they are willing to go into a market pretty early, too, and hopefully drive demand, I guess, in that market for their vehicles whereas I think you guys are more driven by the profitability side of things. So when you went to our market, how should we think about kind of the initial utilization? Or is there a minimum that you all kind of target before you go into a market and then I guess up three to five years' time line to get to that network utilization target of 23%. Is that how we should think about that. Thank you.

Question: Chris Dendrinos - RBC Capital Markets - Analyst : Got it. Thank you.