EVgo (NASDAQ:EVGO), the Los Angeles-based owner and operator of a public DC fast-charging network for electric vehicles (EVs), saw shares rise 17% on Wednesday, Nov. 8 after reporting better-than-expected results for Q3 2023.
The company’s quarterly revenues of $35.1 million beat Wall Street expectations of $29.7 million by 18.2%, reflecting year-over-year growth of 234%. A surge in charging and eXtend revenues primarily drove revenue growth.
Besides exceeding revenue projections, EVgo also beat earnings per share (EPS) predictions. Actual EPS turned out to be a loss of 9 cents, outperforming the predicted loss of 21 cents by a wide margin. This marks significant progress from the previous year’s Q3 loss of 19 cents per share.
The positive developments come after a challenging period for EVgo, which saw a year-to-date (YTD) decline of 40.7% before the earnings release.
“EVgo’s growth engine is humming, with excellent year-over-year growth in revenues, throughput and utilization,” EVgo CEO Cathy Zoi stated. She also mentioned that the firm’s first eXtend stations have received positive feedback from EV drivers, highlighting the progress in network build-out, customer experience, and tech-enabled infrastructure.
EVgo’s report also revealed a third-quarter network throughput of 37 gigawatt-hours, increasing 208% YOY. These figures were driven by an additional 106,000 new customer accounts during Q3, taking the total to more than 785,000—a YOY increase of 58%.
Highlights for the quarter also included operationalizing the first fast charging sites under the eXtend program with Pilot Company and General Motors (NYSE:GM), and the agreement with Honda (NYSE:HMC) to provide EV drivers with direct access to EVgo’s public fast-charging network.
Further, the company provided updated 2023 guidance, projecting total revenue between $148 million and $158 million.
Despite the encouraging third-quarter performance, the company still experienced a net loss of $28.3 million. EVgo will surely aim to continue its growth trajectory and narrow its deficit as it solidifies its presence in the electric vehicle charging sector that continues to gain momentum amid accelerating EV adoption.
Thomas Yeung produced this article using data from Thomson Reuters and unique generative AI prompts. These prompts help distill real-time quarterly earnings data and combine it with InvestorPlace.com’s best-in-class analysis. Our readers get a deep dive into financial results at lightning speed. These articles have been reviewed by a human editor prior to publication. To report any concerns or inaccuracies, please contact us at editor@investorplace.com.
