LOS ANGELES - EVgo Inc. (NASDAQ: NASDAQ:EVGO), a prominent public fast charging network for electric vehicles (EVs) in the U.S., reported a significant increase in usage by rideshare drivers. The company announced that commercial throughput on its network more than tripled in the first quarter of 2024 compared to the same period in 2023.
Rideshare drivers are charging on the EVgo network at a rate approximately five times more than retail customers. In the first quarter of 2024, rideshare-related charging accounted for 24% of the network's total throughput, a notable rise from 11% in the first quarter of 2021.
Scott Levitan, Executive Vice President of Growth at EVgo, highlighted the role of Uber (NYSE:UBER), Lyft (NASDAQ:LYFT), and other rideshare companies in driving EV adoption among their drivers. EVgo aims to support this transition by deploying fast chargers in strategic, high-density locations. The company also focuses on enhancing the charging experience through partnerships and technological integrations with rideshare companies.
Rideshare drivers typically travel greater distances than average commuters, necessitating more frequent and faster charging options. EVgo has established charging programs specifically for rideshare drivers, including partnerships with Uber and Lyft, offering easy enrollment and discounted rates.
According to Lyft's 2023 Environmental, Social, and Governance (ESG) report, drivers who switch to electric vehicles not only benefit from savings on charging but also enjoy lower vehicle maintenance costs and higher customer ratings.
The move towards electric rideshare fleets aligns with commitments from both Uber and Lyft to achieve significant electrification milestones in the coming years. Uber aims to become a zero-emission platform by 2040, while Lyft targets 100 million all-time EV rides by the end of 2025. This is in conjunction with legislative efforts in various jurisdictions, such as New York City and California, mandating that all rideshare vehicles be electric by 2030.
EVgo's network currently boasts over 1,000 fast charging locations across more than 35 states, supporting the wider adoption of electric vehicles. The company's growth and initiatives are part of a broader movement to accelerate the electrification of transportation, offering various services to enhance the charging experience for individual drivers, rideshare operators, and commercial fleets.
In other recent news, EVgo Inc., a significant player in the electric vehicle charging infrastructure, has been making notable strides. The company reported strong first-quarter revenue for 2024, exceeding expectations at $55.2 million, and demonstrated significant year-over-year growth in network throughput and charger utilization rates. Despite reporting an adjusted EBITDA loss of about $7.2 million, the company remains confident in its full-year revenue guidance for 2024 and aims to achieve breakeven adjusted EBITDA by 2025.
In addition, EVgo's customer base has increased by a remarkable 400% since April 2020, recently surpassing one million registered accounts. This growth is in line with the broader trend of increasing electric vehicle adoption and the corresponding demand for accessible public charging infrastructure. The company also plans to incorporate the North American Charging Standard connectors into its infrastructure, targeting regions with a significant presence of compatible vehicles.
Analysts have shown confidence in EVgo's valuation and growth potential, with Cantor Fitzgerald upgrading the company to an "Overweight" rating and RBC Capital Markets giving an "Outperform" rating. However, the company faces intense competition in the sector and potential challenges in operational scaling. Despite these challenges, EVgo is committed to expanding its network and improving the customer experience, with plans to add between 800 to 900 new owned and operated charging stalls this year.
InvestingPro Insights
As EVgo Inc. (NASDAQ: EVGO) continues to expand its charging network and attract more rideshare drivers, the financial health and growth prospects of the company are key factors for investors to consider. According to recent data from InvestingPro, EVgo holds a market capitalization of 654.2 million USD, reflecting the company's relative size in the electric vehicle charging industry. Despite the challenges of being a growth-oriented company, EVgo's strategic focus on high-density locations and partnerships with major rideshare companies like Uber and Lyft may bolster its position in the market.
InvestingPro Tips indicate that analysts are optimistic about EVgo's sales growth in the current year, which aligns with the company's reported increase in commercial throughput. However, the company is also facing a rapid cash burn, and analysts do not expect EVgo to be profitable this year, which is crucial information for investors who are gauging the risk versus reward of their investment. Moreover, with a Price / Book ratio of 8.9 as of the last twelve months ending Q1 2024, the stock is trading at a significant premium relative to its book value, which could be a point of consideration for value-focused investors.
For potential investors looking for a deeper dive into EVgo's financials and future outlook, there are 13 additional InvestingPro Tips available, which can be accessed at InvestingPro's EVGO page. Readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing more comprehensive insights into EVgo's performance and investment potential.
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