EVgo Inc. — Q1 2024 Form 10-Q
Reporting period: Three months ended March 31, 2024; filed May 7, 2024. EVgo owns and operates a U.S. public DC fast-charging network and provides charging, network, construction and related services. At quarter-end, its network had 3,100 DC stalls and delivered 53 GWh of throughput, versus 2,400 stalls and 18 GWh a year earlier.
Financial performance and position
| Metric | Q1 2024 | Q1 2023 / comparison |
|---|---|---|
| Revenue | $55.2 million | $25.3 million; up 118% |
| Gross profit / margin | $6.8 million / 12.4% | $0.04 million / 0.2% |
| Operating loss | $32.4 million | $42.6 million |
| Net loss | $28.2 million | $49.1 million |
| Net loss attributable to Class A stockholders; diluted loss per share | $9.8 million; $0.09 | $13.1 million; $0.18 |
| Adjusted EBITDA, non-GAAP | $(7.2) million | $(20.1) million |
| Cash used in operating activities | $14.1 million | $19.3 million |
| Capital expenditures | $21.1 million | $65.2 million |
Revenue included $32.4 million from the charging network, $19.2 million from eXtend and $3.7 million from ancillary services. Management attributed growth mainly to higher charging volumes and eXtend equipment sales and projects. Adjusted gross margin, a non-GAAP measure, was 31.3%, up from 25.3%.
Cash, cash equivalents and restricted cash were $175.5 million at March 31, down from $209.1 million at year-end; working capital was $157.4 million, down from $178.1 million. The quarter’s net cash decrease was $33.6 million. Total liabilities were $270.4 million, including $75.6 million of recorded operating lease liabilities. The filing does not show a conventional borrowings balance in the presented balance sheet; it identifies lease and other obligations. Management said available cash should cover current working capital and capital-expenditure needs for at least 12 months from the filing date.
Changes, outlook and notable risks
- Revenue more than doubled, while the operating loss narrowed by $10.3 million. Gross margin improved mainly on stronger charging margins and better utilization of charging-station costs. General and administrative expense fell 10% to $34.2 million.
- Net loss also improved, partly due to a $1.9 million gain from changes in warrant and earnout fair values, compared with an $8.4 million loss in Q1 2023. These valuation changes are noncash and market-sensitive.
- No specific full-year financial guidance is provided in the supplied filing text. Management cites EV adoption, competition, equipment and grid-equipment lead times, permitting and utility interconnection, inflation, and changes to government incentives as factors that could affect results. EVgo expects to begin adding NACS connectors in late 2024, requiring investment.
- Contract exposure includes GM requirements to install 3,250 stalls by March 31, 2026 (half installed by March 31, 2024) and maintain at least 95% network availability; specified defaults could permit termination and liquidated damages of up to $15 million. The Pilot program covers up to 2,000 stalls and includes construction milestones and potential site-level liquidated damages.
- EVgo reported $39.5 million in short-term charger-equipment purchase commitments and $48.4 million of estimated operating-lease commitments for leases not yet commenced. A single vendor supplied 77.7% of charging equipment; one customer accounted for 34.4% of Q1 revenue.
- Disclosure controls and procedures were deemed ineffective due to a previously identified material weakness in financial-reporting controls and IT controls; remediation is ongoing. Management nevertheless stated the interim financial statements fairly present the company’s position and results. No material legal proceedings or material changes to the prior annual report’s risk factors were reported.
- A $191.3 million noncash fair-value adjustment to redeemable noncontrolling interest reduced that balance to $491.5 million and moved reported stockholders’ equity from a deficit to positive $25.7 million. This is an equity remeasurement, not operating cash generation. No Tax Receivable Agreement liability was recorded at quarter-end, though future payments could be substantial if tax benefits arise.
Important facts for investors to verify
- Whether throughput growth and improved charging margins persist, and how much reported revenue growth depends on eXtend project timing and equipment sales.
- Cash consumption, capital spending and funding needs against management’s 12-month liquidity assessment, including contractual commitments and any financing plans.
- Progress on GM and Pilot construction, network-availability targets, utility and permitting timelines, and exposure to contractual penalties.
- Remediation of the material weakness, customer and supplier concentration, and the eventual cash impact, if any, of the Tax Receivable Agreement.