What happened
Shares of EVgo (EVGO 4.39%) climbed 42% over the past week, according to data from S&P Global Market Intelligence. The charging network for electric vehicles (EVs) is enjoying torrid sales growth as it expands its operations.
So what
EVgo's revenue rocketed 283% year over year to $27.3 million in the fourth quarter. The charging infrastructure company added more than 180 new stalls during the quarter, bringing its total to over 2,800 in operation or under construction at the end of December.
EVgo subscribes to an "if you build it, they will come" strategy. So far, the plan is working. EVgo gained 59,000 new customer accounts in the fourth quarter. It ended 2022 with 553,000 clients, up 63% from 2021.
The charging solutions provider's growth is being boosted by a deal with Pilot Flying J. EVgo is adding charging stations to Pilot's popular truck stops and travel centers.
"In 2022 EVgo achieved record revenue reflecting the continued growth of EVgo's ultra-fast DC charging network, blue-ribbon partnerships, and industry-leading technology offerings," CEO Cathy Zoi said in a press release.
Better still, the company's profit margins are improving as it scales its network. EVgo's net loss shrank to $17 million, or $0.06 per share, compared to $46 million, or $0.18 per share, in the prior-year period.
Now what
Management expects EVgo's revenue to rise to between $105 million and $150 million in 2023, up from $54.6 million last year, as it grows its stall count to as many as 4,000 locations.
"We expect 2023 will be another banner year for EVgo as we expand our network and revenue base, and deliver financial results that demonstrate discipline, agility, and innovation in serving the rapidly growing EV sector," CEO Zoi said.
