Why EV Charging Firm EVgo Shares Are Surging Today

EVgo, Inc. EVGO shares are trading higher after the company reported fourth-quarter FY23 results.

Revenue rose 83% Y/Y to $50.0 million, beating the analyst consensus of $44.0 million.

Network throughput reached 50 gigawatt-hours (GWh) in the fourth quarter, up 257% Y/Y.

The company ended 2023 with approximately 3,550 stalls in operation or under construction, including EVgo eXtend stalls, with over 260 new operational stalls added in the quarter.

EVgo added over 110,000 new customer accounts in the quarter, bringing the overall number of customer accounts to over 884,000 at the end of the year.

The company reported an adjusted EBITDA loss of $(14.0) million for the fourth quarter vs. $(20.1) million loss a year ago.

The company’s net loss per share of $(0.12) beat the street view of $(0.19).

Badar Khan, EVgo’s CEO, stated, “EVgo passed an important inflection point in 2023 in that as a result of the utilization and throughput levels we are now seeing across our network, the installed base is now profitable on a stand-alone basis. In 2024, we are well positioned to continue to expand our network and increase revenues while continuing to realize operational leverage as we target Adjusted EBITDA breakeven in 2025.”

The company registered $(7.3) million of cash flows used in operating activities. EVgo exited the year with cash and equivalents worth $209.15 million. 

FY24 Outlook: EVgo expects total revenue of $220 million – $270 million versus the $260.86 million estimate and adjusted EBITDA of $(48) million – ($30) million.

Price Action: EVGO shares are up 13.7% to $3.16 premarket on the last check Wednesday.