EV charging network and equipment provider EVgo (ticker: EVGO) has recently announced impressive financial results, surpassing Wall Street's expectations. Despite a challenging market, the company reported a per-share loss of only 8 cents from $50.6 million in sales, much better than the projected 26-cent loss from sales of $29.5 million.
In comparison to the first quarter, when the company recorded an 18-cent loss from sales of $25.3 million, this quarter's results mark a significant improvement. To put it into perspective, a year ago, EVgo reported a 6-cent gain, amounting to $9.1 million in sales.
The standout performer during this quarter was EVgo's consulting and construction business, known as EVgo Extend. It generated $33.2 million in sales, a substantial increase from the $10.3 million in the first quarter. EVgo Extend focuses on designing and constructing charging sites, while also providing ongoing operational support, maintenance, networking, and software integration. Notably, customers retain ownership of the charging assets.
Moreover, cash flow from operating activities was nearly balanced in this quarter. EVgo's charging stalls facilitated the recharging of 24.9 gigawatt hours of electricity during this period, compared to 17.9 gigawatt hours in the first quarter and 10.1 gigawatts in the same quarter last year.
The company's robust performance has not gone unnoticed by investors. Following the announcement of these results, EVgo's stock surged by 6.1% in after-hours trading, reaching $4.50. While the stock experienced a dip of 2.8% during regular trading hours, it fared better than the broader market, with the S&P 500 and Nasdaq Composite indices dropping 1.4% and 2.2%, respectively.
EVgo continues to expand its operations, with 210 new stalls added during the quarter, bringing the total number of stalls in operation or under construction to 3,200. Additionally, the company boasts a healthy cash position, with approximately $257 million in reserves. However, it should be noted that EVgo utilized around $120 million in cash during the first half of 2023.
In conjunction with these successful financial results, EVgo has announced a leadership change. Badar Khan, a seasoned professional with 25 years of experience in the energy business, will succeed Cathy Zoi as CEO. This transition is expected to bring new insights and expertise to the company moving forward.
Overall, EVgo's exceptional performance this quarter demonstrates its resilience and ability to thrive amidst challenges. With a robust portfolio of charging assets and a strong leadership team, the company remains well-positioned for further growth and success in the evolving EV marketplace.