EVgo Inc Q2 2023 Earnings Call Transcript

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

Question: Alexander John Vrabel - BofA Securities, Research Division - Analyst : And congrats to you, Cathy, and I guess Olga as well, given her recent announcements.

Question: Alexander John Vrabel - BofA Securities, Research Division - Analyst : Thank you so much. I guess just to hit some of the commentary you're talking about there, Cathy, relative to some of these NACS movements. Just curious, we saw the other day, right, the sort of consortium of automakers talking about investing rather directly. When I thought about it, it actually sounded a little bit like a large eXtend partnership. Just curious as far as like your positioning, your thoughts around this standardization or sort of being more of a partner, if you will, to the OEMs, given these sort of gyrations. And I have a quick follow-up after that. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 02, 2023 / 9:00PM, EVGO.OQ - Q2 2023 EVgo Inc Earnings Call

Question: Alexander John Vrabel - BofA Securities, Research Division - Analyst : Yes, makes perfect sense. Just a little bit more maybe of a mechanical question. Congrats on the eXtend revenue, big jump there. I guess a little but unfortunate with the BABA requirements that it will get choppy here. But just, I'm looking in the queue, I see that the COGS in eXtend seem to be kind of aligned with the revenue. I'm just curious as far as the margin you guys expect in that business, how you sort of see that gyrating around between equipment sales and more construction. If you can elaborate on that a little bit through the rest of the year.

Question: William Chapman Peterson - JPMorgan Chase & Co, Research Division - Analyst : Congrats to both Cathy and Olga, significant milestones. So 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 gave some guidance on what's going to happen with eXtend, more construction-related. But I guess directionally it obviously would appear it has to come down, but how should 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, you've 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 flattening in 4Q. Is that the right way to think about it? If you could just unpack the full year, that would be helpful.

Question: William Chapman Peterson - JPMorgan Chase & Co, Research Division - Analyst : Okay. My second question, it was discussed a bit last quarter on the Chevron Texaco gas station, but I want to try to get a feel for the timing and ramp for these retailers. And I guess I have a sort of related, Chevron, we're aware of them actually looking to implement battery buffered charging from a company called FreeWire. So I'm assuming the EVgo's arrangement is separate from the arrangement that Chevron has. But I guess holistically, I guess, how does EVgo view battery buffered as a potential option for service stations or maybe just rural sites in general where as the power may be harder to come by, especially taking the commentary around transformers and make-ready in the past.

Question: William Chapman Peterson - JPMorgan Chase & Co, Research Division - Analyst : Yes. And then on the first part on timing and ramp of those opportunities.

Question: William Chapman Peterson - JPMorgan Chase & Co, Research Division - Analyst : Congrats again.