CHPT - Earnings call transcript Q2 2022 | ChargePoint Holdings, Inc.

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Operator

Ladies and gentlemen, good afternoon. My name is Maya, and I’ll be your conference operator for today. At this time, I would like to welcome everyone to the ChargePoint Second Quarter Fiscal 2022 Earnings Conference Call and Webcast. All participants’ lines have been placed in listen-only mode to prevent any background noise. After the speakers’ remarks, there’ll be a question-and-answer session. to President call Investor of like Hamer, to Relations. now Vice ChargePoint’s Capital would turn over the Patrick I Markets and Patrick, ahead. please go

Patrick Hamer

Chief today’s be ChargePoint’s quarter at and and call being XXXX. Financial our broadcast are afternoon, call Romano, President, thank website Rex Pasquale issued web Jackson, for Officer; press XX, investors.chargepoint.com. the for our is us Good and XXXX Investors This the can of me announcing you This call to on quarter second on on discuss today’s over of be July our Officer. Chief our which accessed we of fiscal With afternoon, results Executive joining conference can ended XXXX, release the fiscal risks like second XXXX our fiscal remind expected and conference forward-looking website. during expectations. these the and be would results year from management our investment obligation we statements, update involve could no growth materially beyond including These on the full that to after apply differ and cause our outlook We our control call, and forward-looking undertake which many forward-looking of you today, will statements making initiatives. actual statements to our as and and uncertainties, call. statements quarter to These are of third found section

we the And non-GAAP X-K. SEC this We note in over Relations filed our our release financial section. the website the SEC cause measures certain to earnings website. these Form call quarterly investor website Also, differ, in results on the section with our non-GAAP. our we’ll our today that results measures June presentation please and actual to periods on measures more turn historical reconcile our to our that, be that with Investor a and could of earnings are call to financial And Form description the please the of today transcript financial Pasquale. quarter For on XX-Q our posted of release factors finally, detailed XX, Investors posting on call use with and for the posted refer GAAP filed our current I’ll on under to for XXXX,

Pasquale Romano

thanks update perspective your business interest in call quarter before revenue Thanks, event. earnings the all for Rex joining I’ll to a to of our and reflecting turning guidance us Pat, give for and our our for call. some you ChargePoint over and provide update an financials to second

our can to North for plan pleased from ChargePoint. with in quarter across this are scale, one verticals results scale We and share scale our and about execution against America and three both our the The strong quarter more be described word: Europe.

than company we larger a growing quickly. were more pre-COVID are We and

home commercial this from to geographical COVID. settings serve American residential North ability types businesses Europe from And on growth year-over-year all is of technology provider. types our both This rates quarter, and revenue July exceeds commercial a continue from We and quarter further team, portfolio. continues the and fleet. quickly. XXXX. and strong we and be continues in remains the strong continue a differentiator. acquisition addition recover perspective, Earlier invest In of that ended be for reach Interest as customers expect charging eBus residential, a solutions charging had businesses management all announced our the charging we’ll In we vehicle as June, acquisition of to comprehensive most is be strong growing of quarter-over-quarter the of their the in effects industry’s charging fleet we to of from our strengthen From ViriCiti, this for to employees to visitors. EV from operators execution execution a leading fleet to demand perspective, high. fleet and month, announced customers,

same approval ports Our following count to growth expand under of addition of network up we Joule, our the and BloombergNEF and management versus position. over our Europe technology of Audi, team, of few. the impressive Aral, first of of European the year a for to has·to·be the the and a close Porsche, activated post acquisition talented XX% will public in the position has regulatory including base their customers, robust connector meaningfully with Europe XX% port period, is existing added in Ionity has·to·be just GP half name expect position

into I’ll Before share market a jump tailwinds comments the supporting the business, on broadly. few I more electrification

electric the is first of in in of vehicles. directly America the half BloombergNEF to to major tied accelerated we XX% first in to electric Europe said, June, success five its outlook Sales their sales increase of were years. year-over-year EV BNEF, As published first arrival vehicle North XXX%. ChargePoint’s in were half have America up North was which the outlook According the XXXX. EV and and sales up EVs European for

market coming broad cases. are for exciting to form use in vehicles a We of more factors array witnessing

We continue test to in passenger models facility in state-of-the-art gamut the transit fleet Campbell, run in of vehicle new test our that California.

category accelerate. in emission of and to helps EVs. to emissions administration tools the all XX a It’s ambition policies, Fit Package continue mechanism has we XXXX. an July meet the goal hasten XXXX. automakers. the Turning effective half XX% support President awareness of emission provides to issued reduction vehicle for collection pace of the many by On and order, electrification to to the executive to The to zero vehicle an vehicles XXXX, for policy, policy Trudeau be the by to efforts Biden of transition This sectoral announced EU of sold and new sales expect It emission create the much by calling major set zero XXX% evolve. continues

the and a on by funding. include XX. has the to also of pleased bill expand Senate code President’ the billion also other crafting speaker tracking is which was trillion is Congress closely disbursement with communities and House the infrastructure for President EV House over Senate The influential legislation the drafting an of States the in by support in to budget infrastructure attainable. play the lawmakers market. incentives are important goal infrastructure we the part of to this federal backed next the for in bipartisan potential bill. private week, to $X.X more unprecedented includes actions funds. The and of We voting for make enable are up recently framework In independently passing to zero-emission the we passed years charging and for U.S., build-out. September funding to will $X.X seeing and framework, addition are ongoing to three included a state customers that in infrastructure The instructions see leverage vehicles progress charging in in to believe continued adopted $X.X budget mechanisms public our the funding, The leader the committed investment. an EV we billion last We were California and for has budget around in changes charging passed incentives by this well-positioned and tax fleet.

and teams governments federal successfully having of charging management support to connect experience, communities local orders. more regional and grants Our than build decade partners agencies, worked to with have a

to Turning verticals. our

growth It billings last best with year. same First, yet of happening XX% enjoyed commercial. in quarter let’s period over the sequential of look over what’s growth year-over-year XX% its at from billings and

in increase As quarter deployments dealerships well core, an the North fueling the & on and are over first both revenue XX,XXX integrated be from Europe, ports XX% our to as The subscription to XXX,XXX quarter auto quarter-end. a quarter European up as of active the network an total with X,XXX Exciting X,XXX over acquisition. sequentially. finished charge fast convenience the year-over-year. last with close XX% at This ports. and approximately Go to like led not for shipments we ports over of quarter network, grew ports as DC a our grew our fast of to X,XXX of software in quarter, including locations X,XXX ports America ports pleased technology the from Kum on report record company and has·to·be approximately We for with about includes

We North networks industry to the across to Europe. in roam and drivers with continue to work enable America

roaming that telematics, combined and be the In overnight, employees had our of activity ChargePoint we enable and XXX% with force and crossed and condominiums a are data, These vehicles bundled from who OEM-agnostic vehicle portfolio is to widespread. The needs from maintenance space. industry’s XX% quarter additional including core growth are transit a offerings sequentially. acquisition believe use the over made were In fleet vehicle charging. unveiled we across and vertical, ViriCiti operations ChargePoint, charging Crossing of single-family fleet monitoring, ports to comprehensive and over believe XXX,XXX integrated fleets. we logistics, opportunity requiring the our year-over-year strategy and home RFP work that using all recently visibility, data. perspective. with and including was cost-effective, QX health is ChargePoint paying to seeing available most with this fleet employers at vehicles a fuel serve fleets year-over-year functionality cost home what extends vehicle companies. work reimbursement vehicle employers charging is and vertical, drivers quarter, record of overnight residential focused In ViriCiti charging managers its apartments management the and ChargePoint. June, off. on up We billings leasing represents for all And Fleet designed accessible our strong, enormous control. existing support the for vehicle fleet, offer we functionality, very over charging home activity services that This an operational and types billings readiness through residences, will access software to with battery electric we direct in ensure we include sizes. vertical, residential closed XX% believe for successfully enabling delivery take

to with leading EV continue into offer integrations consumer to seamless charging We platforms. access

across partner, sedan all ecosystem included EQS like malls our roaming we in Charge charging future With mobility with software, to drivers partners, be the and strategic launched including for with This our and environments quarter with Mercedes in announced seamlessly luxury network charging app hotels. the from and EV securely Mercedes-Benz. vehicle me and benchmark connect ChargePoint for powering charging a control for EQ the pay all-new navigate, products North shopping Mercedes workplaces, me access vehicle America Mercedes-Benz, ChargePoint can the with find, in and new

in the quarter, year X,XXX where eclipsed a to off continued strong building growth we customers. customer start second Our the

We a continue rate XX%. over steady rebuy to see well of

customers are while ChargePoint employees. customers to We We heavily with in over growing with finished the our continues adding team. X,XXX rapidly. quarter existing quickly invest

following team technical company, team the and for expected chain including our a XXX, this of that our The give our to Rex tops how the and the have As managing and navigating has·to·be of ChargePoint on including global product that engineering the margins environment. color staff navigated responding a more quarter close capable proud teams the headwind, demand supply technology acquisition. of than the we our dynamic ViriCiti will are especially not exceeded you through more in second forecast. additional is

to end X and billion electric ChargePoint’s Before generating of of REX, new gasoline XXX turning of Rex, tons and gases is to I’d metric having gallons to notable over by reiterate environmental miles network for million driven the scaling XXX,XXX that over like fueling avoiding financials. impact of it QX. greenhouse roughly the you enabled

Rex Jackson

afternoon, Thanks, Pasquale. everyone. Good

our where and my are stock-based of stock valuation exclude First, principally the we comments warrants. compensation of effect non-GAAP, the

expenses legal offering this later This we our in ViriCiti with in our has·to·be quarter, expect July, August to exclude and announced close acquisition also completed our July year. we of and calendar pending we associated acquisition completed secondary in

GAAP, see For a reconciliation of to release. earnings results please our these non-GAAP

quick for our after estimates Second, QX provide a the review fiscal will fiscal I and revenue year. results, of for

have guidance report hardware, services consists of with above services or ChargePoint-as-a-service offerings earnings assure and Third, cloud into and was range recurring charging see and those March networked up credits, our solutions lines: cloud charging includes professional systems revenue year-on-year and XX% represents subscription. total the a systems services networked can trails our year-over-year, solutions. announced $XX top of calls success XX% Subscription and up First, home other. our QX all $XX million systems million Networked networked we for bundle our streams. up energy systems revenue charging as revenue quarter to revenue three our Subscriptions charging to XX% charging all year-on-year lower hardware high sequentially. certain Other we and along in sold line of and revenue $XX Subscription our primary ratio sequentially. mix revenue nonmaterial subscription XX% consistent across revenue Networked end million you warranties systems, XX% sequentially. three both where the our subscriptions of our XX% total million, was and and was of and June $XX verticals was release, XX% and previously $XX XX% with The well than revenue of growth as a average. and growth geographies. reasons: DC overall at million grew for of

our shipment third associated month networked most we for subscriptions in hardware fixed Second, strongest third, amplifies a versus taking charging revenues the of accommodate recognized at the quarter, typically after sales And systems begin ratably are installations. shipments quarterly revenue solutions, for subscriptions. each its of our to which time

the lower to perspective. from hit credits for were and billings by but our look time. vertical consistent at other that QX. and X% decreased for XX%, million X%, deferred percentage XX% from by energy We recurring our of billings increased commercial revenue XX%, of million quarter QX utilization Other with revenue total a XX% residential and sequentially. for year-on-year We due XX% $X base at Billings payments verticals particularly fleet commitments from are subscriptions first this representing revenue customer existing $XXX revenue pleased

up up We From in its across geographic strength QX with XX% ever see are year-on-year pleased our billings was revenue held million demonstrating strong and and by in all quarter very Europe from Europe quarter to XX% verticals. consistent on high-growth and sequentially a a its XX% total geography. North and percentage XX% sequentially. XX% consistent growth, mix, total was $X America X%, breakdowns revenue year-on-year recent perspective, at with best

our channel partners our XX% a Our compelling success continuing a new of And and and per business perspective, customers channel since add rate. our total over a approximately customer rebuy business XX% continued scale by partners also at reflecting strategy, of rate, a add our to billings, quarter. from cornerstone we hundreds model with indicator of driven remained our we strong commercial land-and-expand of

to Turning XX%, QX QX. was gross for Non-GAAP margin. margin gross to flat

our X-point for XX%. the for year of COVID-impacted had quarter on logistics quarter. million, sequential and margin challenges, were in year-over-year offset incremental an chain of increase renewed to a $XX increase goods supply costs, negative Continued of XX% cost expenses Non-GAAP in a impact and prior which sold improvements gross commercial QX strength compared particularly approximately a operating

in support our customer and development in and land-and-expand We support increased North America expenses sales and significant continue new growth to and invest heavily R&D marketing model to operations base, and in to company-related Europe, and the in to expenses. support continued business product a expanding public rapidly G&A

we million approximately Looking resulting at from used our public exercises, from $XXX the by with operations. quarter finished with of $XX offsetting warrant warrants redemption approximately in cash, million cash the

$XXX expect And potentially has·to·be million, $XX funded $XX far approximately review, have approximately million regulatory the of QX of We in at QX. we of of thus million ViriCiti. acquisition our in the to acquisition component completion on cash fund also

stock, for this $X I’ll stock As minute. to approximately QX, sales both opportunities of $X these add gross to perspective, in strategic of the Pasquale in acquisitions the generally and accretive a and million blend and a provide merits in total in spoke we cover in hardware From expenses transactions. financial to margin, reminder, acquisition and to operating contribute revenue $XX two cash and QX, combined combined million synergistic is operating about to software. million expect be both to a approximately a our

you sense August our close, integrate do we wanted contributions breakouts I provide closes expect guidance, a new has·to·be to sizing initial ViriCiti’s since expected give provide these future shortly, and operations. late in as to of acquisitions not them I’ll Our but into for reflects which assumes the QX.

count. share Regarding

for million offering offered improve the X.X expect During broaden July of After stock it shares the underwritten held million We stock shares in XXX roster. back million warrant acquisition stockholders the quarter, X.X shares of giving to our stockholder ChargePoint of we in connection we our to with order an outstanding the in under have transaction. primary million plan. this shares and XXX final issued with X.X no exercises, outstanding. employee SPAC we shares common stock finally, common to million with in earn-out, finished merger connection quarter million secondary completed XX.X float and has·to·be, in by And roughly existing outstanding. shares our shares

Turning now to guidance.

demand strong including a the these production do, Pat as ongoing factors, mentioned, COVID implications in and for And chain our heightened costs. As our supply second we turned our watch, outstripped logistics QX solutions increase million, we about XX%. continue QX, and of for expect the half situation, and Despite at its in we to we all million and expectations challenges total for of versus of to Accordingly, excited sequential $XX are QX year first a of over last fiscal momentum into increase an midpoint revenue performance XX% going half. revenue $XX ramp.

year, For a million million we $XXX our representing are new $XXX at XX% the to from to that, of Pat. XX% million revenue the turn $XXX call with I’ll back And to the fiscal million to $XXX year-on-year. guidance taking increase midpoint

Pasquale Romano

We’d like again to interest ChargePoint. thank you in your for

very to each America defined of verticals. us accelerating quarter Europe market model We broad execute share scale and our in our by business technology, of in believe North our well very are capital-light We across and this to three continue exciting and position proud market.

Operator

Cowen. is question first Gabe Daoud The Instructions] with from [Operator

Gabe Daoud

financials we for Good Hey. the a just I hoping bit. was could maybe everyone. afternoon, start with

point like sequentially? the noticed degradation closer that Is you’ve to to there degradation in subscription XX% anything XX% prior think in it Just line what XQ, maybe looked Rex, margin to there quarters. been on you It quarter-over-quarter. I there’s drove only a can that, as was

Rex Jackson

warranties your so just though the long-term things in when regard. subscription contract, favor any supporting that talking from cost call quarter we that. and that say sure against or you’re line, hosts suggest repair where that unusual of about line there’s there’s a clearly, drivers. the would we’re And I COGS yes, have in that trend that we pull the costs in, you in you -- two against as charge are have perspective in also, we a So, center something to a the know, in your sorry, then and nothing would

anomaly. So, just Thank an it’s think you. I

Gabe Daoud

about continue talk just logistical what you job Got anticipating it. a Thanks, currently? as but increase nice the Obviously, a do are to follow-up, rest And guys situation then, offsetting bit an guess, curious moving you Rex. I supply maybe year. little a chain could just of this costs, the throughout you in guys

Rex Jackson

nice So, a it. question. I’d In QX, great that’s we did job a say, managing

You inventories. the probably build at looking sheet, tell not could we’re balance to able

The So, We some could than shipping. meet, bit supply due demand we’re happen the but into higher chain. component issue in of were more didn’t little out so a lesser to a is there shortages to market. procuring and there shipments much biggest very we logistics degree, costs, that mostly some run did are

again, we really that, from in I think we would have QX. X QX. It think Without -- I gross points it us do well. So, some margin showing hit progression managed hit nice XX%

QX at year, second look revenue perspective. we’ve pretty ramp for QX, got the a the from you If steep of a half

team an our pressure and partners putting CMs amount to supply chain operations meet we’re numbers. and So, those our enormous on of

guidance, into of And account. tried that -- all take we’ve so, in our have to we

single going capture Pressure think digits. we top it’s us we points, you X the as pushing gross to our through you, just sure there’s because margin this. on of to up land-and-expand customers mid customer, that. the and on numbers We’ve go. model, be will from tell to with to standpoint So, is which territories the I need line as a low back make or we bang Pat, do I me of we’re -- --

So, that’s where the emphasis is.

have we to trade-off, make if so, we will. that And

Pasquale Romano

churn churn. the One at from Because way overall sell rate to over lifetime on of margin nicely low, that’s that the so over the software we is accumulates the look a The contribution is port a years. from more the point subscription the we very that. with that port. every Because software, revenue associated -- low perspective port it is

making customers many we So, that not our acquire that supply it’s imperative humanly footprint we the ship possibly the as can chain activities but as so we ports expand can, sure to that have. within biasing we only

it demands to now. just get have we have our think the in customer to We I back over meet spades right years.

Gabe Daoud

sense. Understood. Pasquale and That makes Rex. Thanks,

Just one more.

plenty a you from in fleet the business maybe of perspective? Could that ViriCiti of the with just bit for some just telematics talk competitors. conversations operators? with about highlight vehicle some you fleets competitive side fold, now within there’s Just versus about how could the maybe having talk of just the little ChargePoint’s impactful your maybe a And is advantages competition Obviously, on also potential channel. software

Pasquale Romano

Well, portfolio very least, being perspective, we and fossil given a able of pre-integration, a differentiator the say fleet as to early have their customers the they don’t our with experience from think, tremendous convert fleets innings from especially ourselves fleet establish amount with fuels huge a to operators in in electricity. early these it’s the that electrification, completeness and to fleet is of

set. within functions a space. fleet that they’re reporting already typically very is functions those play working that that, subverticals into fleets is possible. vehicle have telematics. functionality to vehicle specific particular, raw what telematics the to all that that health organically driver with in support investing the integrate were functionality having with as the pursuant and of in with side a other both extends there they respect inorganically they large the a and and It in with battery have. portfolio large or Where add high-level ViriCiti usual monitoring ViriCiti and like suspects includes continuing we’re to on larger Very, pre-integrated just comes the as beyond With acquisition will provider So,

and often that fleet, the that case. is long-tail often eBus, is not not the for case, the For

of currently -- complexity that for specific the to vehicle the or a picked those doesn’t really someone that sorts having So the of wherewithal not reduces that’s hasn’t internally one offering in integration have is telematic partner the segments really integrations do the themselves. in portfolio

way it is vendor, the So, way basket you that purchase what trying potentially every the ERP choose we’re like from having the example an for the and system, some the things much ERP that do -- functionality, plug-in you a would you to the ability think may is generally from I system system not that that of this but buy like same market ERP in surround have pick customers core fact the I direction. to has but

from differentiation and of of So, a as offering, good to But adoption make completeness well of very, perspective, very there the a draw software to integrating it’s your with most on the this check. fleet importantly, We number the in simple. think services I’ll the the one side are to that also we’ve invest. continuing got that attention third-party ecosystem are we’re

Gabe Daoud

Thanks, helpful. Very guys.

Rex Jackson

non-GAAP Gabe, On numbers. again. caught numbers, there. you’re me at not this first looking one GAAP on It Rex question, me that your a is you thing, flat-footed dawned little

new for perspective on the fundamentally public. GAAP from Company, that we’ve obviously, thing is a gone a driver stock-based So, the is which comp, since

you at on actually a software the sequentially. basis, up is point margin it a non-GAAP If look

didn’t rock question. you Sorry, I when with that the asked you

Gabe Daoud

No, no understood. worries,

that’s -- networked subscriptions back, related all that’s $X million million? to $X the at the So, the that’s line, that

Rex Jackson

up. the stock-based margin is million gross -- comp, delta The $X -- went subscription without

Operator

Colin from is with next [Operator Instructions] The question Oppenheimer. Rusch

Colin Rusch

Thanks, guys.

growth from the Sorry this, acquisitions, business? of and increase How how in that if out is the the you existing coming much is but break organic that from missed much I can of guide?

Rex Jackson

Rex. is this Colin,

we so and that us. acquisitions was million, of in the would would for quarter QX have quarter. to our -- QX approximately ViriCiti have QX, be the balance So, in most the do for has·to·be for estimate hope And then and contribute $X we

view we’re So contribution baked in the sort world on our in should of consider the that but in, of assuming focus it you QX.

Gabe Daoud

in? that’s super the the be of how That’s targets terms thinking you helpful. activity, leverage? in customers land-and-expand we looking can of about And those of to you number guys pipeline should the year-over-year those new grown speak you’re any the terms customers then, at, getting of potential Okay. model, in in growth that How first-time just and can

Rex Jackson

started you you want customer the and count? So, with acquisitions

Pasquale Romano

count. Customer

Colin Rusch

done. Acquisition is

how So, buyers products? about the of the here first-time second pipeline really question for and is that’s going

Rex Jackson

Yes.

So, front, think can the what I we on to assisted team question I we announced which your is get pick as you, we follow going acquisition life beautifully sure two forward, on, tell the -- additional super question did. I make we a have management that looking and is And is of doing the two are at no? think the the you them. that happy or some

Pasquale Romano

No, I question, the Rex... think

Colin Rusch

it’s No, is customers. not about at all. acquisitions It no, no, new about

Pasquale Romano

Pipeline.

Rex Jackson

acquisition I’m sorry. Okay. I’m question. about the sorry Oh!

I’ll So last is question. pipeline, from well, your a -- take which whole thing, the customer growth

from customer in quarter a a QX. stellar growth we had So, perspective,

had the We’re before. well market past out the number that we’ve in

in heavily and As that you investing are sure we to know, marketing sales make that keep we trend going.

ago new customers XXX that per I think we’re quarter. months said probably six around we

two growth now. in is and particularly that bring the right? on in we the particularly So obviously, organic that’s that additional And beating our acquisitions but some We’re the have, side did organic, Europe segment not customers, handily powerful. customer eBus

Operator

Partners. The Irwin from Craig Capital with next question Roth is

Craig Irwin

at count component of there and simplicity quarters? a of as new This I or status kind dispenser tower, two-port opportunity these in have I to the small opportunity products. fleet accretive Can and of these And you were eight questions your really So efficiencies to far through tower. different pieces, manufacturing look the whether the DC maybe over to suggests there volume. products closely I’m your, components some certification the very from dozen us say as as conversion standpoint today, margins person, in impressed, these in number be guess, these in overall your talk not be products to ramp may I an from components of had the the in will particularly like fleet the start new margin the next

Pasquale Romano

thanks It’s them? of checking a you the that Yes. you for Is questions, great saw out assuming I’m and that the where at product. Show. set Trade were AC

Craig Irwin

Yes.

Pasquale Romano

Yes.

few build core products designing what’s to strategy here is from So, that subcomponents. very the

same second the is there’s subcomponents mission-critical alluding you the capacity which It’s look structure So, and warranty essentially, favorable you’re a maintaining repair services, a services, or system passenger you’ll simple and there. management exactly for -- in reason uptime a very factor, our in for or inventory manufacturing own long-term that across used if most the yield twofold. to efficiency to. is self-maintainers One what products, sparing mission-critical or multiple scale high our our rapid businesses, and to But is line, see all car reason. is assure second our enable volume cost fleet product

And is times scale, recovery of we’ve margin. has that this we one a what few products our to due several to talked concentration as to advantage in you And getting on and mentioned earnings as I the push historical both and calls the well. underpinning curve reliability now, a believe in about that products Rex we of margin to kicker uptime the the in these scale components of volume. that’s back as and -- on continue levels where is intent, it’s terms mature, structure So, the our expect that’s few cost get previous us

Craig Irwin

products next for is Europe. My Excellent, question about excellent.

to a the very can you serve over you to to products maybe maybe components the not this more quarters? designs simplicity, versus of So, growth starting for opportunity And accelerates now North looking approach that you’ve taken, lot as the understanding that small number clarify or that the accretion this is from be for next of at Europe into a aggressively changed us there’s my an margin for look design are whether closely also America. ship number

Pasquale Romano

the steps being that that configuration products the two through alluding which out-of-the-box supply So, to a is combine world factory to The we’ve are across exactly or repair to world to, between design board taken wherever simple not chain reason and products final be is what only products. the scale designed in approach but for you’re efficiency, continents either practices drive possible, common reliability. for

in fleet at So, work and AC there, operate for are Europe exhibited AC at the exactly charge the -- and are globally. -- charge the fast ACT They everywhere, and are you the particular I for fast products, to designed are which example, had we even products we to that core products. for ones their products, world of products remember designed saw don’t some

Craig Irwin

maybe important for I if a particular And then, has number years. being of of lot know in. are teams looking us and And of whether recent the many office. at very market the the a Workplace squeeze Company, a one point policies. been other another the maybe important in ChargePoint the in I of over to impressive strength some your to back saw return last It’s that a expect our could you you have companies Can momentum comment conversations the customers not that last it’s about workplace, similar fair over growth there, really of building of years? or with couple

Pasquale Romano

that is the you levels, the above look if at we out pre-COVID Q&A, now we So, remarks that pre-COVID pointed but our our is earlier before rate not business levels and COVID over made volume above is growth yet.

drive in than arrival relative seen over cars in the even mix in to three job And cars in rate to that quarters, environment, forecasting And is so, our space but is the a do our rate done I that to our think forecasting. increased we as that attach that for what have our due shift in everything. model drive a seen. modeling completely last good And the overall It’s everything. an we growth has pretty the model how been levels pre-COVID assumptions the model, revenue revenue cars says COVID, have compensated we’ve we revenue. What a COVID by more

So, as with that workplace returns, upside. of said, all all it’s

Craig Irwin

strong quarter. the Understood. Well, hop the queue. back in I’ll on congratulations

Operator

with is Patil The question Wolfe from next Research. Shreyas

Shreyas Patil

Hey. Thank you.

that the I wanted So, difficulty think and should we issue the just demand, to potential ChargePoint? increase manufacturing, an see in quarters? earlier And is you’re quarter. how was having you about about ability that meeting to were to in any mentioned think next if this -- the any continue let’s few capacity way for next there to say, the for upside to

Pasquale Romano

side chain not capacity-driven is supply on the us. for a this So, manufacturing problem

so can onset to bit been potential labor on build are the is contract to teams’ original to problem, chain manufacturers and in you year. of in team is that deploy meet necessary can making issue shipment the factories completely, the that but way Because guidance the supply a components deep to capital where factory is source engineering the zero, as like we that Our can the with our meet contract not behind on exercise scale and risk forecast, of sure equipment qualifying the so physical materials and we not but the risk, crazy them, back working the a -- in factory. have supply we’ve desensitize the supply, demand, cases, meet meet of than the right component you desensitize for you half random we’ve the our and that third, the in focus some product. fourth for sudden our manufacturers, source higher second, the sources able decommits place it you’ve think capacity teams suddenly, into but we generally drive supply for to chain can’t where demand. into the every they generally new on decommits The you And our the can’t to belt to numbers put seen, to drive again set the of suspenders

it. working we’re So,

in and to We these it been you we’re immune bitten advertise but ball take are any experienced that yet, haven’t of enough eye never to never our by problems. we matters to the

Shreyas Patil

business. wanted Okay. side the the fleet to switch then, to And I of

and quarter, as with obviously, in mentioned and -- You trying fleet in mentioned opportunity, OEMs part ChargePoint the competitive evolves how offering. -- to thinking offer positioned. how we’ve through as product of particular, which impressive. looking you about to obviously XXX% their growth is wanted now And of just charging I the you’re seen here the I I’m -- think that announcements is really kind think from to are ViriCiti your landscape

recently, then, and Ford two GM are examples.

think to their ability OEMs provide the value-add customers? still a in you solution interest to as are do sell towards how own those trying about indicating So,

Pasquale Romano

Yes.

very fleets think earnings OEM call. a single we’ve we on think there. -- got last out I So, I the are question this addressed similar almost run no on There the

is be to on way. in our OEM, to to science what not open a be here, perfect integrate that that is so, focus the enable differentiator to have be being a all integrator, be possible our particular tend we competitive so as that’s pre-integrated. to of system to from perspective by one a we And also is never pre-integrated is other fleets as customer the with, business that the focusing solution big tied -- consider There’s broadly any isn’t but partners a simple to and And integration as we’re possible. a can

I think the we OEMs that. need and a default applaud offering,

just I don’t think, their have customers to need most they buy that. I them. of from think But,

So, again, negative. multi-OEM, are a most we because don’t as that see fleets

Operator

with The next Kelley Jefferies. David question is from

David Kelley

end, and with from a you portfolio the ago, I charging two that guess, clearly software-intensive. fleet starting my months unveiled couple maybe of

you So, the thinking the opportunity line, could us software product if through tied to would maybe you’re about subscription that walk term kind be longer of for how that great.

Pasquale Romano

we’ll we business ports, operators, that is way full it I which workplaces it charging more proportional parking software sell But certainly cetera. It’s analogous the technology-specific something on rundown. time commercial earnings our commercial is et analyst we for do for would brief, to that’s have cars charging community. mean, to in -- call or than a days should when the we about to this think passenger have as take you give we should -- traditional to pretty retailers, there’s you more that and

new charger keeping power something power, fleet beyond management And not above on the dependent, cetera. basis on needs a routes. not of a next-day into basis, play billed be can based not or the port now you utilization of per routes making orient site-wide Then, charger and per on vehicle network. to there’s on charging That then, for is and of money the come the that sale et those for there’s ChargePoint management built vehicle services a energy on kinds can service additional So, for services -- services. think scheduling later. proportional next-shift Again, services a of

proportional more well, I’ll commercial there. domain, in our component of isn’t to play things except really you So, relevance lease. to as telematics and In proportional the it’s residential to proportional chargers, point business’s are to out have thing charging lot one commercial vehicles component their changing to proportional generally vehicle the fleet. as our have the to take-home strong to relative sites. A operators as that and

home that to cost enable in Our when at part the a fleets package lease uses purposes. is to vehicle power technology residential their employees for that same own essentially reimbursement and offerings being codes electricity and provide to offerings employee our Europe business compensation, the as their charge work cars of vehicle take-home takes pointed for

services uncovered consolidated, cetera, The there. last into a being commercial the these And power of for or fleet able the world crossover that where things. that’s cases operator drivers we uses of can now, to all on-route, seeing parking at avenue imagine vehicle the bring and those an we’re for offer card where like Well, you through cross that in-the-wild that park in expanding another cetera, that employers use fuel integration, keep So, offerings the but and being is integration card we’re with vertical. payments with I other providers, fuel is drivers have being our going their to employer think to et drive use into back so capabilities that segment. in those a commercial leaves any lot et involved that can one a integrated verticals, and is the vertical you leverage billing charging

there. really, together, not are looking to the these all So and a lot apparent I’ll pause that at play really things folks space. what’s that’s yet of

a So, answer going keep long going. be if to I

David Kelley

America. clearly, a kind seeing a broader of really appreciated ESG Okay. and and No, maybe great. North And But be just it. helpful, this bit, on to long gears might well. That’s question in as a we’re high-level switch super answer push sustainability, a

you future? into let’s the you’re window could they years could see customers, rebuy how several into ESG and fit as the their it, having us give new boost, maybe call we conversations a So, strategy? existing charging think ChargePoint longer-term algorithm for out And into with the

Pasquale Romano

certainly Well, could.

employees are their good itself all The obviously, now for being And there. not in. then because cost is better so fuels. reasons, profile effective of than driving it measured companies for and over but is, time charging long also the to fossil driving has and it’s ESG in on much their cost good I on embracing these car more term, a only has businesses ESG, electric fuel all story factor are think customers for kinds

Just question in charging the really more cars is the parking need the any driving. you than are lot don’t

model you. attach right an market the of how much. with now understand tailwind. rate estimate of make to agree into The is question our not, that I prebaked how how But a that certainly -- we It’s unfold. continues is we’ll or So, that’s as can’t much and

Operator

with The is Bagri Needham. Vikram from next question

Vikram Bagri

and have and forecast. just profitability. one Rex, believe two was questions. you based on One outlook profitability near-term about about BNEF increase by their long-term recently, I and I highlighted your long-term outlook in outlook

there? just of You’ve beginning which your fiscal outlook terms ‘XX, And How made year about that change back? was few puts the accretive. initial you acquisitions, talk to profitability, a does about margin the are XX%. near-term and of profitability, which guidance in Could takes months was the at achieve

puts this quarter of There has to outlook you due hit in shutdown and near-term chain can and prolonged impact Thank mix Could helpful. extent to you the be gross issues. that also you. margin this explain if been are? can quantify XX% sort takes base, X% about the what -- due supply the you to mentioned the You them, to using of a COVID. will shift margin a And -- as year

Rex Jackson

So, this on it clearly what -- for is understand your so so would say true. based in Vikram, I already. well you But, question, absolutely year, really

And QX and factors would the as margin number well. We half second We going it some think we gross bang despite decent we posted year I we’re a in QX. lighter though factors. through external held than in these in to expected, with are the deal running of have

drive are pressure. is commitment a land-and-expand earlier, super is because That ballgame obviously a making customers said we harder puts definitely I to line important. little top getting ourselves As super, now a to the and

customers, of business, is ongoing not performing, But who margin you we’re sale. long-term from initial acquiring health an And perspective pressure everything. is a the at line on keep acquire margin a bottom your higher again, we it’s line versus mind, perspective. puts software the appreciably If become in for that customers customers top the from as the

referenced, I going a qualitatively, beginning so now. mix give guidance could that. you -- component specifically, a are think big where -- the look to if don’t to is tell we gross the we I And thought you you gap at we’re do as at be that we there’s where of a So, margin but between of big, year big,

like place could business help So, quarter power, margin it extremely turns we additional a that’s quarters us where of commercial in did on if the a because this get strong, it so a that lot came lot.

So, we need to stay that. on tuned

question think the acquisitions. you about also asked I a

between from more there drives that sales business side. throughout. on software and more acquisitions the then, I margin in are be and benefits They gross gross that And not-too-distant the the are contributed, but OpEx that think just ChargePoint very the drives we software more stuff of think just will also we initially do future. terms the margin flips stuff acquired we accretive I -- in of positive acquired

calendar in that good not I terms next pretty acquisition have synergy sorry, perspective, in, think ‘XX. then -- those lastly, from from And we’ve year. as with an talked a should kicks acquisitions acquisition So standpoint, we profitability year a actually two of

our for we our strategy needs going there out, we’re know, We’re decide of and models gross acquisitions -- of that is but issue we’ll you turning revenue that. to addressing not be the to think meaningfully that day. I let going yet. pushed If blending change margin current or don’t every

Operator

The with next Michaeli question Citi. is from Itay

Itay Michaeli

And if Rex. for Hi, to America Apologies back missed did discussion, percentage I in then, join gross going rebuy did But, the you I the have late. just earlier, bit quarter? North it everybody. a the margin secondly,

on is as and at initially then that the that like expand, model a it you installed to As the the gross be customer? gross in investment -- on higher? ports for incremental as is margin about higher incremental then particular margin we it Meaning, worth margin you are and think land-and-expand you land would

Rex Jackson

rebuy bounced remarkably we’re front your XX%, has of But, North on there. in question And about this very [ph] the around is our rebuys. first of held XX consistent. it that consistently business a quarter, and So, XX%. rate, XX% XX%,

and change, take terms go meaningful and how In that entirety of that basic a helps. the that over it haven’t our obviously, if component couple as with we -- we get But, you in ports, need would upfront. -- ports. And fairly to who we a a over then Obviously, of a the terms and people very, hit expensive, couple look in very I’ve less remain to seen nicely. are is land-and-expand at model, have we its it seen fast ahead ASPs time, look the have of margin time. relationship back just holding thousand pushing But, situations at in buy, up number We go a benefits in software Obviously, consistent. pricing. we of a customers suggest margin of they try secure customers we to X,XXX customer, take profile in can need that the if to you terms get that have nothing in competitive of have because

Pasquale Romano

that as related thing the I on want one answer. call just to remind everyone well to

our installation through not go book. does Our

Rex Jackson

That is true.

Pasquale Romano

a perspective, that installation We customer, that revenue not the don’t deployment would And the profile. scale. from there economies see because particular that’s part efficiencies -- because of any bigger the as of are so at our happen gets

Itay Michaeli

more If either all a kind back of to have you I of like charging your maybe for ESG partially? earlier. of give Do portion what customers the sessions one the free, rough at least North discussion could sneak in, sense or commercial America time away

Pasquale Romano

associated That their have a certainly in around not give my as I moves a general I with attempt of benefit. employees I’ll head. do employee is that Workplaces this alignment. off power They coffee. find some providing to workplace in cost And comparable color. as the have them is respect -- couple top the have a setting employee that. of structure with to your can questions a you an ESG don’t bit. to but there giving on this treat don’t That call typically I number revenue it, use source. been

site. in not it’s of And to with on employee list so, a respect the high benefits very costs

was be enabling a expensive and example, your EV electric effectively if cost to -- far subsidized them more you’re would than cafeteria structure personal because it drive -- employee cost giving charging. lowering an vehicle. Also, an For you’re employees’

X but industry So, ours, vehicle general the employer not the you’re EV times more status to stat buy charging. if is likely electric an your offers

around for thinking to bit more good typically retail driver providing a similar business. retail there there at for future, potentially incentive general, a in So, the is set tool there’s respect typically. other sign a set to if a loyalty they a business, you the up more they they you and price, programs segments integrations loyalty as expectation, our with a card if In cost to all, more subject. it’s -- their card it pretty the a the a using follow for as program in to benefits to in A recovery stratify retailer and a indicator -- at retailers, see your With you’ll price a charging engage and suit.

charging healthy a very of of amount benefit. -- use incentive as employee I So, general, for there’s But, also there’s in or on. an a think of charging going healthy charging amount

Operator

question The Davidson. D.A. is next with Matt from Summerville

Matt Summerville

Thanks.

you’ve what two for expect as rates the going here additions you’ve you ones. scale ChargePoint new customer given been quick been forward? seeing how especially about, that to uptake wondering, Just I and all trends talking was in a service, from

Pasquale Romano

Sure.

the from It’s we’ve So, it’s LX billings. of on over our to running workplace product. X% to quarters, focused of entirely been five anywhere X% sort last our four

rolling only it to as now we’re just So, other out products.

when going that think at [indiscernible] you in X% be is and X%, products. But to looking something total to a DC too. fleet forward, looking applying like we’re component about It’s aggressively and also QX, financing, when that of meaningful so. fleets think consistent that in business billings, our So, because our to hover to were we our we it’s with going the

So, they’re to... going

Pasquale Romano

Multifamily.

Rex Jackson

another be would multifamily And place.

where been end to in service as a is So, things up very thinking. it’s of, range going I -- just places think the over three a we nicely we’re couple years, as the expand but next the consistent providing

Pasquale Romano

almost already in there It’s multifamily.

Rex Jackson

Yes.

Pasquale Romano

bit, a true subscription-based to a that to it’s segment. up got already service It’s for -- we have that but

Matt Summerville

to should cash bigger then about just Got Maybe aware pluses How sequentially. over burn next make looking your it. improved some minuses out of. as would quarters? quarter couple thinking bit rate a in talk and be And follow-up, the of want we the us a about of you the that

Rex Jackson

So, the quarter, generated of operational with nice in had in we less more from which a redemptions the cash where matching we matched fact about million warrant burned. QX $XX the or

foreseeable going in I we’re think, to for I still mind, That a holds. about earlier profitability. be in said thing the Keep future. the consuming cash posture

though, to our at next have least fact cash over on have eye two -- get range, from an cash going Clearly, the assume the we’ve a So, positive, about of now. from and entire years fine for way, the consistent, in and how given perspective rate, we done we I we cash if when to the you minute look comments a earlier sufficient hopefully acquisitions, obviously at flow years couple keep that. we’ll that be don’t that’s run should that be current turn given to

Operator

Evercore. question with is next from The James West

James West

you tailwinds. lot a the net right more how know outlined, many scale the are, this longer fits think software how ask And of do the as from what of wanted global kind and something a software coming I are? to longer and you course, system. tailwinds, you’re what right term of you opportunities base, risks that next that buckets near about whether Clearly, sales but easy do to software, months, course, XX we hard a EV supply of all term, as are not and think circuit software that’s given infrastructure in But of new array, chain somewhat supply two is tailwinds about you your think versus there’s you you about. you not business, of and scale, up policy the the business your and that’s scale How EVs models the with the now. First in scale. all, maybe the showing of the mentioned which the chain of of maybe term But maybe company, the to benefits

Pasquale Romano

which us, markets front asking you’re of we’re this an see of of the think company acceleration I adoption. of and any in most the going to in is question right absolutely space,

So, couple one with you is how give things do illustrate we how you channel. about I’ll deal think that? So, of Number kind internally. it a to of

a which is which very That’s You company long very lot muscle have already to margin of do. for in time build important. we selling our a a channels, have built into through structure,

to margin have a than one tier that survives have more structure You distribution.

and training for enablement can You capabilities, your its so also have the be differentiation. channel to have product represented

the with with into You what point partners have software, I’ll to scale. is thin chain lastly, very the have -- the able there deal scale to growth but management vehicle in deal the times capabilities of to the And bandwidth out in is of end there contract manufacturing rate and front hardware support products to household plenty geography for all fleets have where there Company. we real the supply spread the ours, are have then, to a have the of even with with many not of reasonable be The in that’s place for you -- be to limiter. want that years too reasonable at commercial, multiple growth for most industry lead to able which the respect cars other the in what with come. the good new though partners in believe more of enough large into will we manufacturers, decisions wire lay to partner the don’t capacity because names, of net that of I too to made is the cars or we we to of that geography have And many to throttle, arrival ourselves delivery -- obviously great

the effectively the of up space. vehicle OEMs that production in the we are are So, against

James West

Obviously, I acquisitions you could M&A, acquisition it ask thinking but to to maybe address about but recently, And company one on were switched then I’m made. starting if one more customer are question, still earlier you How you got integrate? a are guys one now, you’re at, thinking pending. are Are put there that done looking gaps, hold holds, it about for M&A? on technology there or you there areas as are you you

Pasquale Romano

to So, customer of add kinds on we lens we though basis broader inorganically, which in even other the much to of our base complete, that. gaps, company develop the important the acquisition, is things attention probably is adjacencies We that what what acquired. software customer specifically, a ourselves good good company to to to a good very with base we tight add Because that for only new It’s -- vision offerings how sell then, are thing most -- have a the the either how is does about as are and the opportunities inorganically you’re the So, technology as team terms paying fit and of in as integrate tight have that and it that’s market assess acquisition, and think can us? pretty the that’s factor customers? our are can enables culture for that it, critical or you a you’re low have More on as only very it. base, avail of being how alignment add a we to existing we or more customer us to evaluator. high-margin the offering an

not We’re be it. measured think things, we to but we’re color evaluate going about sort -- very about to of be how going that’s on how we

Operator

back pass remarks. I will conference the team the to additional now management for

Pasquale Romano

six because offering two thoughtful was take questions. In tell is months, recent supply This We’ve with We’ve public. of in your you COVID our right one performance after with It’s halls. We’ve an you very very over leave the I six our thank become our great us transaction much that equity announced in first one So, What to much Really for chain, to and the shareholders. marketed them. amazing the call an been I’ll market selling increased we’ve closed company. is third for our deal had pretty earnings closed for acquisitions, time. forecast. public. questions, the employees increased of forecast impacts had over town or months something -- just in we the the

it’s So, -- been it’s exciting us, start. for a very almost

of of more We’re couldn’t I the really proud team the accomplishments. at proud be ChargePoint. here

deserve future. us for for very they to to credit working think our optimistic the all point. get we’re I And tirelessly the positioning about this

we’re the to to this and work business. not going three forward future really doing But be months. these very front that things about of look continue to of and again in very to get just one holds hard mindful super what We’re much excited and in expand

thank you. So,

Operator

fiscal That Goodbye. conference earnings concludes the of day. your call quarter the and ChargePoint XXXX webcast. rest second Enjoy

ChargePoint (CHPT) 2 Sep 212022 Q2 Earnings call transcript