EV charging network operator, EVgo just reported better than forecasted fourth-quarter revenue on Thursday March 30th 2023, with a narrower-than-expected loss, driven by booming demand from business clients. The company’s revenue of $27.3 million marked a 283% increase from a year ago, beating Wall Street expectations of $21.8 million, while loss per share was 6 cents, compared to an expected loss of 16 cents.
The company’s network produced total energy provided to customers at over 76% year over year to 14.4 GWh in the fourth quarter. EVgo also added about 59,000 new customer accounts during the period, and ended the year with more than 2,800 fast charging stalls in operation.
One of the key drivers of growth for EVgo was its “eXtend” unit, which provides and manages chargers for business clients under their own brands. Revenue from eXtend totaled about $16.7 million in the fourth quarter, or 61% of EVgo’s total revenue for the period, up from just $114,000 a year ago. General Motors, truck-stop operator Pilot and banking giant Chase are among the businesses that have signed up for the eXtend program.
Retail charging revenue totaled $5.8 million in the quarter, up 65% from a year ago. For the full year, EVgo reported revenue of $54.6 million, network throughput of 44.6 GWh, and an adjusted EBITDA loss of $80.2 million.
Despite its revenue guidance for 2023 falling slightly short of analyst’s expectations, with analysts expecting revenue to reach $153.7 million, on average, investors were pleased with the results, pushing EVgo’s shares up substantially as a result, following the welcomed news. EVgo’s guidance for the current year includes revenue of between $105 million and $150 million, and adjusted EBITDA loss of between $78 million and $60 million. The company expects to have 3,400 to 4,000 fast charging stalls in operation or under construction by the end of the year.
EVgo did mention that its guidance for 2023 came with a warning, that the company is uncertain about how many U.S.-made chargers it’ll be able to get by year-end. New U.S. government rules require domestically made chargers for certain federally funded projects, and it’s not yet clear how much domestic manufacturing capacity will be up and running before the end of the year.
STA Research(Rank#121), has assigned a 12-month price target of $10 per share to EVgo, the electric vehicle charging network operator. STA Research has also given EVgo a speculative Buy rating, suggesting that the stock has the potential to outperform in the near future.
STA Research’s price target of $10 per share reflects its bullish outlook for EVgo’s future growth prospects. The firm believes that EVgo’s strong revenue growth and increasing network throughput, which measures the total energy provided to charging customers, are positive signs for the company’s future profitability.