EV charging network and equipment provider, EVgo, has delivered a robust performance in its latest quarter, surpassing the estimates of Wall Street. The company reported a per-share loss of 8 cents from $50.6 million in sales, outperforming the projected 26-cent loss from sales of $29.5 million. This is a significant improvement from the first quarter, where EVgo reported an 18-cent loss from sales of $25.3 million. Last year, EVgo recorded a 6-cent gain due to a change in the value of warrants, reporting $9.1 million in sales.
Positive Sales Momentum
In the most recent quarter, EVgo witnessed better-than-expected sales figures. The consulting and construction division of the company, known as EVgo extend, reported $33.2 million in sales, representing a substantial increase from $10.3 million in the first quarter. EVgo extend specializes in the design and construction of charging sites, as well as providing ongoing operational support, maintenance, networking, and software integration. Notably, customers retain ownership of the charging assets.
Growing Cash Flow
Cash flow from operating activities came close to breaking even during this quarter. The number of electric vehicles recharged at EVgo stalls reached 24.9 gigawatt hours of electricity, an increase from 17.9 gigawatt hours in the first quarter and 10.1 gigawatts in the same period last year.
Impressive Market Response
Investors have reacted positively to EVgo’s strong performance, leading to a surge of 6.1% in the company’s stock price during after-hours trading, reaching $4.50. During regular trading hours, EVgo shares experienced a modest decline of 2.8%, while the broader market saw the S&P 500 and Nasdaq Composite drop 1.4% and 2.2%, respectively.
Expansion and Financial Status
EVgo now operates or has under construction a total of 3,200 charging stalls. In the second quarter alone, the company added 210 new stalls. Furthermore, EVgo concluded the quarter with approximately $257 million in cash reserves. In the first half of 2023, the company utilized around $120 million in cash.
New Leadership
In conjunction with its earnings report, EVgo announced the appointment of Badar Khan as its new CEO, succeeding Cathy Zoi. With extensive experience spanning 25 years in the energy sector, Khan is a highly regarded veteran in the industry.
EVgo’s impressive financial performance and market response reflect its commitment to expanding and enhancing electric vehicle charging infrastructure. The company’s strong position in the market sets the stage for continued growth and success in the future.