What happened
The stock of European electric vehicle (EV) charge point specialist Allego (ALLG 0.97%) produced quite the spark for investors this week. According to data compiled by S&P Global Market Intelligence, the company's share price has advanced by almost 18% week to date as of Friday before market hours. Powering that performance was the company's latest set of quarterly earnings.
So what
For its third quarter, Allego's revenue more than doubled year over year, rising to 22.3 million euros ($23.1 million) from the 10.9 million euros ($11.3 million) of the same period of 2021. That was on the back of a 107% leap in the company's main revenue earner, the take from EV charging sessions, which brought in 14.4 million euros ($14.9 million) this third quarter.
A notable factor in that revenue leap from charging sessions was simply volume -- the number of such sessions rose by almost 37% to 2.2 million.
Allego reported a dramatic change for the better on the bottom line, too. Thanks to significant cuts in general and administrative expenses, the company's net loss narrowed to just below 18.7 million euros ($19.4 million); the year-ago shortfall was more than 80 million euros ($82.9 million).
Now what
Although the total number of Allego's public charging ports didn't rise by much -- it crept up by less than 2% to a total of 27,248 at the end of the third quarter -- that growth might soon accelerate.
The company said it has signed contracts to install over 1,800 of its ultrafast charging ports throughout its home continent of Europe. Investors were clearly encouraged by this, although Allego provided neither a time frame for these installations nor an estimate for how much revenue they might bring in.