ChargePoint (CHPT) 8 Dec 212022 Q3 Earnings call transcript

Company Profile

Participants

Patrick Hamer	Vice President, Capital Markets and IR
Pasquale Romano	Chief Executive Officer
Rex Jackson	Chief Financial Officer
Shreyas Patil	Wolfe Research
Greg Wasikowski	Webber Research & Advisory
Gabe Daoud	Cowen
Ryan Greenwald	Bank of America
James West	Evercore
Bill Peterson	JP Morgan
Tyler Bailey	Needham & Company
Stephen Gengaro	Stifel
David Kelley	Jefferies

Call transcript

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Operator

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

Patrick Hamer

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

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

Pasquale Romano

and Pat, against provide business today. over before details to turning of a QX including update, joining for strong I’ll you us our Thanks, plan financials. Rex all thank execution it for

from Europe of sold year, be previously, vehicles for and as North and an auto As we dealers are we passenger and infrastructure, volume electric is saw sales from I increase to across the sales. approximately momentum EV EV an accordingly, high this of stated X.X to According in are our to many this vehicles America are categories. electric arrival quarter they success strong prepping both continued BloombergNEF, charging for in that expected million XX% as tied XXXX. the seeing indicator And fleet demand

been to only across Our be strong both product financial an of we associated investments residential the capture year breath America quantity options for strategy demand performance limited to fleets, to result vehicle by years of able consumers electrification and index has of and revenue of this the available is have equivalent a in North a and further Europe. over throughout many is made commercial, in this Historically, our ChargePoint the and mobility. sufficient of reinforces and verticals the and fleet go-to-market

number attention to full quarter at range the we September call I’d the for million of continues delivering. chain end high a provided to Our our to us indicators guidance what a we are fourth This X. despite the and of of QX to environment. the supply raise was at revenue year, be $XX expectations scale on positions like your dynamic

ports is other customers growth clear any added XX% future customers history. It are our by in in inclusive for XXX,XXX fleet XX,XXX. preparing quarter the and finished the count approximately year-on-year the and that globally port and We we more was than fast port management with approximately charge our of QX commercial count the both commercial that quarter as company’s First, the DC was approximately business. XX,XXX network in the acquisitions. European evidenced Within

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

solutions drivers quarter XX% directly roaming crossed ports quarter, through on sequentially the billings addition ports our This were their the ChargePoint we the robust. over from quarter. XX% XX% continues residential network. over fleet billings using will to be Residential increased XXX,XXX to over last accessible in account largest Fleet enable to in the on Europe, partnership third leading announced XXX% our and ready employee remind to year-on-year. leading solutions vehicle along and for we you Demand expansion WEX, charging for and route ViriCiti, year-over-year. provide I’ll our depot over and year-on-year quarter at-home and eBus the payment charging also we a charging saw company. fleet The acquired a up for needs and up easy provider revenues we XXX% access EV with the of commercial management In partnership with customers network reimbursement.

end we a of e-mobility be, of has QX. provider reminder, the to an platform charging the market leading with acquisition European As at in software a closed the

generating million the of efficiency unique avoided network and business scale gasoline have with greenhouse emissions. well, and to-date. Our proportionally estimates, our billion By XXX metric X.X environmental our with provides gas leverage growing of growing overall, established tons and electric balance the over is XXX,XXX over positive driven of our miles over gallons impact drivers channel, which and of as

us pleased class destination quarter with world ended We including the I’m top joined a professionals. two to the employees, more And the requires than the ChargePointers through X,XXX that acquisitions. continues and mission Jobs out are for Our the our an passing committed to billion build be recent talent highways ChargePoint charging evidence includes policy Investment the electric is front, that future. U.S. leaders policy the the communities. along to Act and to up of and accelerate Infrastructure of $X.X on in This

federal policymakers the level with working at shape to and state are We this.

other in and now utility new While programs XXXX. this beginning likely state place, manifest will stimulus in are significantly

U.S. former from Elaine welcome of and composition, Transportation of Secretary Directors. to depth the Labor, like to and technology, would from further which brings sectors already includes appointment private and automotive I leaders strengthens Board and our Lastly, community. Board Her public both Chao investor

Now I’ll turn to move financials before this we Rex, you. discuss to to over to over Rex Q&A.

Rex Jackson

Thanks, Pasquale, and good afternoon, everyone.

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

This quarter fees acquisitions. also related service professional we to exclude

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

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

a million announced from professional into previously calls our hardware where software can charging in warranties and three bundle or sequentially. solutions. XX% see release, systems, our million non-material and Services now earnings million, revenue you recurring streams. Other QX $XX and sold year-over-year ChargePoint-as-a-service we certainly $XX of range our Cloud our subscription of was has our charging up energy we revenue solutions it with those ViriCiti, high credits, $XX other. Assure Services the report revenue revenue prior guidance and acquisitions. to and our systems to consistent Subscriptions along include with our vault XX% end of subscriptions as services Networked consists be at up offerings or represents Third, lines, networked Cloud

sequentially. could challenges start demand and performance systems meet of supply us pleased million in very we XX% XX XX% of with has XX% was his million chain a sequentially. at revenue up a QX Networked quarter, QX. at with total the was year-over-year number XXX% total despite Subscription for not XX% and quarter charging revenue are $XX and and on the revenue XX% consistent and We year-on-year given good grew of

which subscription a and systems of lag. DC main function last As networked the subscription as factors, time mentioned rates to quarter, between hardware ratio QX revenue in of In I network again charging have a revenue. growth mix lower and network delta systems less mix two favored charging home and

Second, least after to a our associated subscriptions for we installations, hardware at for the lag revenue accommodate most of a shipments a of quarter. time time solutions, using fixed at began

million, revenue activity XX% recurring driver customer during associated and picked the and Our million. increased up existing quarter. XX% from quarter at as $XXX payments revenue $X commitments over X% total and deferred grew subscriptions, at Other credits a revenue finishing nicely revenue from sequentially the year-on-year representing of

as Billings by you split, look the at for other for to X%, vertical both know, verticals, we from Turning verticals XX%, revenue approximates which fleet a in reflecting commercial fleet perspective, XX% residential. QX, and billing and outperformance residential XX%,

see very pleased We’re growth. strong to

European commercial and geographic and was a From a from XX% COVID year-on-year Europe and in up QX community impacted So XX% sequentially up XX% acquisition XX% representing America almost North a revenue particular last $X total year-on-year XX%, perspective, was business quarter environment. billions XX% by driven total both gain and the percentage slight in European third third our organic contributions. tripling and In in quarter, million sequentially. revenue, growth year’s from up contribution, delivered

gross to chain cost was Turning European cost in margin continued We acquisitions. estimate non-GAAP QX, of improvements and gross our goods from logistical constraints for reflecting elevated XX%, and a sold contribution X-point sequential increase additional QX XX% system a networked expenses margin, our improvement margin QX positive costs of supply increase over Non-GAAP us an our charging of Included X% additional million, quarter million was to for two a and $X $XX XX%. operating the approximately of in acquisitions. attributable was year-over-year in margin. expenses operating

second to million $X other the preceding reflecting heavily employees on in $XX September we contribution second to as level SPAC and approximately we million in prior was subscription, cases product respect personnel we million. included to services This QX. QX expect compensation grants the acquisitions the customer million any As QX continues of the our key of the only mentioned million comprised hardware European the own from areas in With and Of operations, of of rapidly $XX that while join as fact assets XX in approximately acquisitions leadership continue company the down we and QX true. who delay, drive company quarter, other, to be in this have was the $XX In million compensation $XX to portion $XX the expenses to to and approximately for QX not growing from stock-based revenue a these did said, executed from months, earnings evolving I in during invest quarter transaction. well approximately of development, that revenue $X have call a at position adjustments. scaling million two attributable our million awards was our operating QX to the of contributions Stock-based market. and such contribution incentive performed QX. both to $X normalized acquisitions,

quarter. the with cash end to of $XXX be the operations issues acquisitions XXX million the at $XXX quarter After and paid have quarter, has at acquisition $XXX effect for reflecting we Looking giving and cash, of ongoing the outstanding. QX, to down shares on million in we approximately from finished million, spent million approximately employee during the

guidance, to our start healthy and quarter to strong broad we guessing quarter, all plans. pipeline for outstrip now our the QX and and third continued moving to backlog full But markets year work adjust continuing return production our with keeps solutions guidance across in to the to QX demand build ramp. the Turning continually have verticals, fourth COVID employers are and expectations up.

a XX% For of total year revenue to increase XX%. over at of and last increase $XX we QX million expect of versus midpoint fiscal QX, $XX of an million sequential

the million $XXX increase to fiscal $XXX turn our remarks the million And up concludes that, midpoint guidance $XXX Q&A. revenue representing it new from $XXX a our year, XX% with year-on-year. over taking it prepared to million we’ll and For to at we’re million to

Operator

the Instructions] Research. from Certainly. is [Operator of Wolfe question line Patil first Shreyas The with

proceed. may You

Shreyas Patil

much. so Thanks Hey.

states funding you’re -- additional added? utilities of in think kind this manifest funding in dollars certain maybe new first could federal charters had at you I -- Just one, what more how you in mentioned expect terms XXXX. these can terms And there remind see charging? to towards and frame way -- support the from meaningful us to Is maybe of also being Pat, the that, seeing stimulus number what to moment of the

Pasquale Romano

Thanks. your Shreyas. Good Thanks, to voice. hear

to states complicated estimating much much that half that year, now much to hard in money And in back it’s we is states money, Federal Bill their That’s the and an settlement much versus not to how Infrastructure all D going the this flew why of the its is it’s to the California an in are terms was the see design trying of may roll flow own VW anyway states so out. won’t for some too at And of if the the quick that programs. has through on implemented The we’re you in to program not of that, question. it’s It settlement that that from California, way, see flowed analogous had federal We of be have of predict. define years it Government the, portion call. flow money slower. will going of example, of year Federal all through, years I’m the some to to XXXX. carve the is, a subsequent you to hard states actually was Appendix look I right is program, that taken evasive is -- money some to give but are multiple

draw et the influence in costs, I said, costs expect for of call. total like challenging then to so the it’s terms the to hard exactly the why that’s So versus The thing we And could EV sum charging, are one I also the it’s the be don’t that of equipment cetera, where color areas of to to hard conversations effects. program what constraints to attention really us. pin faster that installation year. going money, the next want the is have now. that for budget trying is down and too generate your stimulus other again, the But other about in reconciliation to right government to other associated

respect your don’t a of comment number? do question to have if with [ph] know you on amounts. that? terms funding effectively current you In to want mutual Rex, I

Rex Jackson

apologies. a I actually current do My not number. have

Pasquale Romano

Yeah.

those then out multiple roll over approved So funds that programs. all even just are revenue represents and our that the programs to years, relevant not in programs to the those utility remind everyone

it’s for quarters, approved you utility total United number not industry’s that the It’s previous in from view sum But analogous don’t our that of have necessarily So similar we backlog we’ve the in right analogous reported, running or a it’s of now. in with update programs backlog. to of associated States. and are kind sort domain the an

Rex Jackson

was I available, are in because that’s Pat, question make so how sure programs heard question. the terms a And -- the I there got would of what that. that’s I out I

So those two…

Pasquale Romano

Yes. Yeah. Total.

Rex Jackson

Yeah.

dollars. programs, We exact us. have a millions the for for total. in utilities of of terms terms hundreds of But in hundreds I of figure millions But it’s the number billings in is total the -- of

Shreyas Patil

ahead, Okay. was And Rex, something. then, sorry, just there OpEx, looking an go at

Rex Jackson

Go No. ahead.

Shreyas Patil

Sorry.

Okay.

but up QX, in more is modestly percent Looking a of up at OpEx, revenue versus as meaningfully. QX R&D was

OpEx some don’t So we are of into just if think you magnitude think or even about driving as about, priorities we can talk And the main next next R&D that quarters about why just especially then maybe of few spending? should -- leverage, year? how the the

Rex Jackson

Sure.

OpEx sales, number, all marketing, we’re of base we’re is first obviously, broad that newly in because a So, the investing public company. heavily a number

that with been deal some But it’s this to out need do we coming are those So year. product our major releases things. priorities have we

for the we a event watershed just that’s announcement huge seen, ago have company. fleet may you As had and several a months big

into Europe there’s is -- amount in going interesting we differentiators, very shortly. have coming things We’ve which the goes that a we’re There’s what some energy mind we that got huge of of So greatest enormous energy for of amount software is, course, one platform. that. out our into see of

putting time So an is all there’s it. Europe the and in that push big now, in now North really verticals both obviously, we big, our see since we’re to we industry and a America perspective, and right play from shoulder

steady be next should you So happy but number, it’s about. you year in some steady think will off I that think a we learning that I obviously, pay because yet, ratio that I guys see leverage next year. can’t we strategy aggressive to think and improvements give

Shreyas Patil

the network Okay. you then wanted me, housekeeping Thanks. last gross margin sense to give just for us I software could of a just non-GAAP service. And between and and that? confirm

Rex Jackson

the tends on Because probably you around support are. and tough. that the our components do our bounces so on Other subscription side, to That’s as driver what line put know, be lines subscription hosts the depending into we XXs.

by the if the the tell the as math, to at hardware looking -- So one you just math, number other. into you but you can back talk get the do that you you overall can hardware,

Operator

the next Patil. you, with Wasikowski next Greg Thank of sorry. from Webber The line Mr. The Advisory. Research -- question & is

proceed. may You

Greg Wasikowski

guys. Hey. call. the Nice the on for to questions. be afternoon, taking Good Thanks

Pasquale Romano

Thank you.

Greg Wasikowski

share your Europe I for wanted to ask and market about those. in targets pathway for reaching the

Specifically, the and Europe? resistance cash and/or the balance approach, that between there evaluating fragmented you’re about the market through, what do equity own thinking profile flow opportunities does you’re the and your tapping an wondering organic in given versus path just an relatively of to how least while Thanks. Yeah, thinking inorganic just more currency? over

Pasquale Romano

very good is question. That

of we last enormous done everyone’s a We see American. consolidating ceiling We’ve targeted business that targets, putting extending was is pretty different share in can made first saw, industry one Europe. in an and We’ve of progress well industries, that couple over we’ve well customers, has two share be acquisitions that’s space get Europe on functionality the market at is center recently, in target very the as expanding, market all, as in in not is you fleet one and high then in we’re obviously So, North done that. as as commercial the and ViriCiti, years in to them. a

modular general. in it so there’s respect leverage that’s think every think in in in an And enough product So continents, it have evaluate that be that be we intelligent are to -- to of are share, with gain products. interesting with we’d portfolio itself certainly in versus it’s has and our has and team, to very the there in where has with customers we like But we and to market that that necessary aligned tremendous innings of like and there’s strategy an that vertical organic we position amount strength they ViriCiti has a our looked present. its that with to it, based tech early said, that model, at we’ll inorganic broad business serve as they if all very don’t we have. EV both would And so Early opportunity presents market it will can our different obviously verticals. opportunities have respect growth, be inorganic I and

Greg Wasikowski

Level with site Very et having, Thanks. like my more some of Perfect. charging question Early malls, times, on And for shorter visit there’s like especially around what theoretical places X grocery between drivers. helpful. stores, we’re in split for one then future and may next decisions Level be owner’s a conversations EV the preference cetera. X opinions I parks, think,

both have a presence offer obviously, of guys solutions, You more LTE. but in

solution. So I’m any new your I’m Level -- deciding which to to conversations X site existing just are are and curious, but a expand route like, DC with go with with if been owners what customers looking

Pasquale Romano

of and a There’s this many gasoline. pattern misinformation lot folks on on too matching are

or parking. but both of When access certain percentages population drive, lights seen they you usually the not don’t they’re work the not That conform, your happen, to kind wait -- point where the conforming. depot the This not primary people, doesn’t on, one is have charging of how we’ve in of don’t a up it’s or driver people anymore, behave, till outlier switch dominate reasons always street make way fact, it especially little for these to by have go patterns you is yellow corner meaning cases side home somewhere or So, an electric fuel hall. you if fill opinion. the drive

a not put it So gets in. you is it faster speed

matching actually it’s is parking that be energy natural reloaded to day. duration expected how the in much and fact, In

your to you’re your going not you’re grocery if or the to that. store near So not you’re battery, trying house, do tank to show trying your

some miles You’re store. you as trying an pick yourself of to buy up avail convenience amenity, may grocery a

a it, holiday pulled you’re to store pick it you happen stop. want off a and because had weekend to if make your on charger, you’re you highway refueling fast and Now, that essentially the an because doing a to to way a grocery stop you

average if area. The different So they’re they want in to they’re a local doesn’t conflated. use cases and their fast charger, get shopper very use

not about match other, of that you’re the and equipment one correctly, match parking And at it grocery let’s correctly. expensive if and number -- serve. it’s store, very cost it you can spaces cost So I’m the it or don’t you of talking say, and utilization correctly, down versus it’s customers matching you’re total mistake you the if construction don’t

a mistake. So charger problem, it’s so proposition fast a, is around going not massive electrical an case made are such capacity because plug battery up, local sense. for It’s and going for in whole use you just serve there, lot town highway consumed distance between that out expensive I got you’re Because you’re you made a your an much of and oops. you’ve on topping a if a to, of as positioned for real a I a mistake. that you’re case use and that really store customers But range, grocery well they’re beyond having site fast if long makes your LX drivers to mix customers your the for

do we cost significant with to to help with clientele. electrical you’re the what capacity of the we and you likely the one right are number customers is in serving them because going the is to how the that parking primarily strength parking to pretty the on for charger can spaces cases use lot, allocate LP, try present if fast understand of So electrify local the consult

than So it that putting different stations no market gas it’s that -- this relationship so legacy is and coloring of much has just to all. the just some up, at

Greg Wasikowski

Thanks, color. guys. the Appreciate Okay.

Operator

Wasikowski. with you, of the Oppenheimer. Colin Thank is next The from Mr. Rusch question line

proceed. may You

Unidentified Analyst

Brendan [ph] Hey. for This Colin. on is

progress acquisition initial in on and early First to opportunities a insight of Europe maybe color one on integration any returns for me, you for would cross-selling able give us bit be on there?

Pasquale Romano

a past on making progress ViriCiti because not to to one one But it’s did. newer you But good I’ll has we’re because both specifics. I that earlier couple to both, the innings, acquisitions, because the integration. we’re generalities, in typical coming months on give ViriCiti and in one, closed mean, be we’re frankly

solution are On that moving some already said, we’ve different and -- co-selling. we get the to for it’ll charging and that, said, down done where have And already that’s ViriCiti the solutions. vehicle consolidation we’re customers integrate had we used the our two fleet like from some we’ve and have customer side, functionality I the had take integrated ViriCiti are to solution. in things an case, that time field orderly ball And the we With way. customers

activity earlier are to plus versa. X their innings, customer X, We in on, some customers ours, got base have vice we’ve going would already we but to where can where functionality, be, X either is already equaling additional or bring

So progress we’re nice there. making already

Unidentified Analyst

And Awesome. additional need supply redesign to the order costs to customers? of supply guys terms been just, particular in and passing subsystems products secondly, on you chain have seeing And resiliency help or to you active chain? are in the how pricing, the of the

Pasquale Romano

Yeah.

to was you do. chain I of what have said as -- So chuckling, engineering that. had and teams supply we’re our I incredibly proud

into under worth of either our of that’s you especially when significant a circumstances because forecasts that if now because as we you’ve several scaling. -- is just you’re results chain, need in visibility a supply laying can turned hard chain in imagine -- you upside even to environment, that can, do, year’s constrained seen, quarters. obviously, As we’re normal percentage you under over if And supply what how with

everywhere that. rapid the means and your of rapid in components adjustment qualification responding. call in up come is organization then industry, upside, when which surprise substitute that with the you So software I happening is to obviously, get, enable commits,

could it resources in keeping of of those -- So let on happening organization. They yes, will things our it on the is -- job a We pricing? are a definitely having inside you a it tremendous our supply pass-through places. different moving of I is is of put doing bit chain, through question drag. Rex, have and comment

Rex Jackson

very good Yeah. question. Brendan,

may the on into adjustments definitely And some comments. margin in we to supply take I days, gross level price without a our referenced that some program there have for account passing place any what’s not chain. future of So, of which too through getting specifics, going increased in be logistics distant in for

reflected we No, have So some news ahead. definitely in… nothing good major

Unidentified Analyst

Okay.

Rex Jackson

perspective. mostly It’s

Unidentified Analyst

Okay.

Pasquale Romano

two you will remind Rex, Also, issues wrong, will we your what Colin, to a I believe X-point and -- in gross resulted first remind you in about correct about penalty I have if commented a remarks, I’m in. I the margin of things. me -- X-point of turned supply it relative could prepared you all, that, two was chain

Rex Jackson

That’s right.

Pasquale Romano

Yeah. that. Verify

And so, Colin, still working and we improvement quarter-over-quarter in that us, high the against had in gross strong turned side. but on we results margin in turned

imagine So achieve. took can to internally what you that

Unidentified Analyst

Thank Okay. you.

Operator

question you, from with Gabe is the Mr. of next The Rusch. Daoud Thank line Cowen.

proceed. may You

Gabe Daoud

around fulfilling hand Thanks, and the and a inventory good into us to afternoon, sense chain, any have or give that’s over orders of everyone. on much Maybe you around you just supply the -- currently? thoughts next can commentary kind back how to of visibility several quarters maybe just

Pasquale Romano

its Rex it’s causes in respond into so much same that. we visibility But that’s the happens Greece unplanned visibility, terms -- will let supply thing. many in on visibility and us other to companies that inventory. comment which say not decommit, quarter, I of chain the

our But Rex, well well year, orders placing are want to out there’s -- where bit next is communication a a into quite possibly out comment the possible on bit, a of preplanning going et scrambling bit we’re multiple chains not there’s this for that supply product, on supply parts there that being you firm wherever sources there’s into of Now do to we problematic. we’re further? forecast to cetera chain, year.

Rex Jackson

again, know standpoint, first joining inventory Gabe, us. all, for as From of an Yeah. you thanks

Gabe Daoud

Rex. Hi,

Rex Jackson

A complete -- seeing. is extensively we

not So all inventory sits on books. our

quarter-over-quarter it I to go But up wanting Our chain challenges. because keep actually last this inventory it spot I said it’s supply actually, here. quarter, like slightly the declined

you, forward, So that can -- we tell inventory but if yet. just we will, will we I haven’t done build just going

Gabe Daoud

Got sense. Got it. it. That makes

Rex Jackson

Yeah.

Pasquale Romano

just continued materializing. weakness, that’s And upside Gabe, not that’s

Gabe Daoud

Yeah.

Pasquale Romano

the that’s of And I opinion good nonetheless, on sheet. the balance a chain problem it’s problem to our side wish a have have supply we the But didn’t -- in a constraints. it’s

Rex Jackson

one Yeah. Gabe, the… of

Gabe Daoud

Okay.

Rex Jackson

our increase because odd bank, of it’s level. a let’s CFO our have hey, inventory mean, to …I kind say,

risk. We but have have very obsolescence a, obviously, we minimal portfolio, broad

So if got smart to you trying inventories you’re and as business as you’re to challenges do. to building thing chain make, supply ramp it’s a the the trying fast

what to we’re trying that’s do. So

Pasquale Romano

also… is This

Gabe Daoud

it. Got

Pasquale Romano

very where a have on part largely the orderable because with up hardware side use of may ship different or play, have we of numbers, platform product very configuration really make. know we is that’s the the internal the It …Gabe coming we parts very end. but few a show line modularity the cases that -- platforms drive the skews to is, broad set all few I of we at as into just lot that

is really a it Architecturally better chain without the environment, product most. quite line its helped but constrained supply it’s a challenges in not has bit. So than

Gabe Daoud

Got it. Got Very color. helpful it.

Pasquale Romano

Yeah.

Gabe Daoud

is then kind it Thanks, a the side, software on up, a fleet making as the saw just just ViriCiti to that and fleet to how you of over side, give kind here guys. just U.S. just deal, channel hit the and only more on us complex of but little our the in the given the quarters? color on you of competition there follow just Is obviously the the generally of expect VP maybe couple demand management today, And and And energy next announcement conversations, bit but from -- it’s stemming progress another could whether Europe, we you with maybe needs. competition particularly acquisitions, a operation? and

Pasquale Romano

think at I from us it’s cross a good with really, that a most a software to reimburse have the contractor the load have all though, is comment load. with our based that sides, say complete the in then taking we fleets in a amount way. home. would I take-home the and of just but The in functionality again, traditional coming interest, seeing we the that We estate the also solution opinion, in help design, mean, and especially are wholesome parking this respect Gabe, a we’re broad now kind of and operations Well, chain full call add respect side project electricity, on with not especially mentioned with to ViriCiti, of utility fleets the the the Board vehicle example to a prevalent space, to earnings because previous components to across is sides to even infrastructure on that that build, remember, trying leverage. the addition up lot refueling service consultancy, and the or we’ve provider consultation ability ripped real of there. vehicle refueling and tremendous. food vertical the with fleets in their This lighten sense, of CapEx is wanting operations, on we’re tremendous I one seeing management,

services naturally, commercial Europe lease So fleets. are because in codes operating broad develop for and company leasing those that We got cars in functionality. a really in of we’re verticals both set providing to solutions that especially

continuous one much R&D stop a on we’re are we’re the that we we’re with shop stuff So tremendous side, functionality for piling Rex that into mentioned on of And R&D a not that the we’re basis, -- as so we amount and still. of have. stopping

Gabe Daoud

guys. Great. really Thanks, helpful. That’s Great.

Pasquale Romano

you. Thank

Operator

Thank of you, is next The with from Bank Ryan Mr. the America. of question Daoud. line Greenwald

You may proceed.

Ryan Greenwald

the you Do impact on from one the weren’t elevated bps bit more you amount in talk the last Could on to meet? of guys XXX logistical able more evolution color this help pipeline guys bps anyway think and demand ask give X chain? I Let a frame the about quarter-over-quarter the supply bottlenecks quoted the you quarter. that costs? guys to me first just you of

Rex Jackson

Right. Yeah.

And biggest that’s versus on plane to X-point boat quarter, It this logistics going putting quarter. so swing So there. you a component look think as swing definitely you driver last the to on bit, putting expedite forward. think that that, actually to The a we’re X have I point was that continue is these it battle it a heaviest the and a of obviously, numbers correct.

your second the was? of part so question And

Ryan Greenwald

you quarter? the help in weren’t demand the pipeline, of amount guys frame this meet to able to Anyway

Rex Jackson

Okay.

And so like I’d to add.

So I -- But pushed it wasn’t mentioning you to number tell enough that from that I in that it number, positive quarter a a end give would number there above tell it And is worth massive is you demand was what’s I was a was it. of the It range. was high hesitate there bit QX massive. would us a wasn’t big to understand enough meaningful the little well important that you, but to just number. QX. spillover a

Ryan Greenwald

can But out of revenue laid then terms the the Appreciate prior you last in versus it. in the of guys that. in the sounds say plan the you versus that anything like Board. of Got drivers increase particular And quarter, the momentum terms forecast? contribution across

Rex Jackson

shift quarter-on-quarter? that Question, all our saying you at mix are

Ryan Greenwald

I notice that…

Rex Jackson

In terms of the…

Ryan Greenwald

…drivers of the revenue increase quarter? last from

Rex Jackson

you… What

Ryan Greenwald

What shaken out quarter? kind of better than in planned the last

Rex Jackson

earlier, mix consistent been it we is has The with broad It’s said QX. earlier, -- pretty verticals. said the as based Pat as three across

really products performance home inexpensive number, a our which CPEXXX, any be because speaking, we’ve quite were But fairly you other at mix from get seen performance that’s relative okay, seen you revenue to out we our it’s products, what DC look not think then superb though even relatively it perspective, it do, consistent. relative good COVID. should to our is if from actually a doing we’ve on product and to we once of was workplace So

I acquisitions a got our my in bump commentary Europe. As said, small from

I with say, like, right. bigger. just It’s this. wouldn’t And… isn’t very it consistent left It’s So moving there’s or anything

Ryan Greenwald

leave Thanks, I will it there. guys.

Rex Jackson

New the in and distribution buy, they customer of consistent. was super again, strong the what quarter then acquisition

really across So Board. growth it’s just good the

Ryan Greenwald

Got it. Thank you.

Operator

Thank is line the from Greenwald. of next The Evercore. West you, question with Mr. James

proceed. may You

James West

Hey. Good afternoon, guys.

go... Let’s

Pasquale Romano

James. Hi,

James West

prepared thorough remarks. in You fleet talked amounts your about

an or you What or there the that fleet? just hit share? is is you uptick point taking Is course? impressive is really demand on -- in fleet? side, something mentioned from which Just do with There’s mean, or for are very a commercial more a directions, that here thing, good the massive at and year-over-year tipping changing coming I we’ve overall you fleets Or think you growth. of a all evolution

Pasquale Romano

pilots there hey, a mean, we’re and there volume vehicles I to And I there say, but are couple was I for vehicles. is -- in aren’t limited just sizes, it’s gain, program I proportional the level share of earnings were limited taking manufacturers isn’t we’re relative previous is to pilot ago I the that revenue made in some basic. a the meaningful. that trust, as us. I’ve with on not we And our expand calls, out relationship remember to if in comments no that pointed shipping the opportunity love based expand when fleet you’re think, -- years earning that because you obviously, seized, think, they to our that submit fleet with develop What and because gaining at they would we’ve -- think pretty having I as customers, -- share, we will do

you to a of a the to So work. -- the, or and do all the pilot get to lot Rex have work

have lot with lot functionality to whole a things. business with You system, those their have service they and still once a all of you integrate for of have sticklers to are reliability time

kind rate money relative period, is, the So the investment it’s category, it’s returned in the it’s certainly challenge an run so OpEx an the to speak. to in an incredible -- from of perspective category, not

I So what is is planting. are significant flying think that’s most we still

James West

Wow!

Pasquale Romano

work have afford, in afford do differentiation size And work. to of the can the look business, a are because we business ton the that because frankly, doing opinion commercial at a of of -- size our healthy. of you able we deploy, go forward we’re business, can a huge a OpEx on our that and We we to if is it our because the basis, that’s mode, we

James West

Right.

Thanks makes That it. sense. Got of a for that. lot Okay. Yeah.

and for on future You the made strong well demand comment seeing here. a for as as dealers prepare auto they them

from to when older models next out to start coming months. So maybe and the about they about engines their or -- are we the even the the ICE they’re their dealers models obviously and old What getting XX old and telling or models? get are you they all know may OEMs OEMs retire that their XX signals or about the months, the all hit

Pasquale Romano

I couldn’t perfect say. I [ph], I think most isn’t that that any information know

James West

Sure.

Pasquale Romano

But… auto OEM Because we’d be in violation of partners. our MBAs with

James West

Okay.

Pasquale Romano

at announcements. just … if look you public

James West

Right.

Pasquale Romano

most between terms look if shooting announcements, auto you’re being where looking just you’re lines at that’s by early you I public brands that XX, But a majority look think, depending electrified. over for substantively in somewhere points bit of, the on electric, will the seeing be XXXX you full brand If flip or to your of in XXXXs, the at aggressive. commit -- manufacturers

James West

Right.

Pasquale Romano

to the And charging they them those I is get to before the give need electrical vehicle. now dealers mass the the or need the they types of on selling support for and and in able popular think vehicle, vehicles put a be the in to and limited training infrastructure OEMs put production and what to

the to So if got with the get investment want you to dealer. the make you inventory,

James West

Right.

Pasquale Romano

that think especially EV. for is based, we usual those hotspots is And the it’s dealers we’re that geographically OEM the in seeing respond to substantially programs coming. a broad more broad it geographically indicator much not and more It that ready to good not based, but broad communicating auto much that’s broad get is based, perfectly are based, that OEMs since very dealers

James West

Right. Right.

Thanks, it. Got Okay. Pat.

Operator

is West. the Mr. you, from Bill JP Thank Morgan. next line with The question of Peterson

proceed. may You

Bill Peterson

a Good job and the had quarterly nice Yeah. on afternoon, execution guys, here. I question.

fleet. and think through mix the us commercial And quarter I that based second in you there of on should answered can from backlog question is that, sort You see about quarter, in any prior some quarter. seasonality how about versus directionality home the versus off third your the we you the midway give to I context? the guess, embedded guess

Pasquale Romano

seen are serving growth we’ve going to say to construction or more business say, that the whether to not of it’s the the is -- What seasonality some just seasonality northern only northern usual to trends in relative hard hard around, eclipse shift hemisphere. It’s cycles normally hemisphere. we and in

So on growth has a some much got deep much areas, in slowdown hard going normally winter but you to cycle it’s how construction so to it’s get predict now, offset. going

infrastructure and business then actually business. the price point mix, and something inclusive on in fleet the to of unit very determines and power multifamily so mix terms caution and volume And and then business of you’ve the because are The of get in you the vehicles while LBC could the mostly time is dwell mix I’ll kind split different, their fleet conversion the some down when differences like then is vehicle mid-tier between shared the be. and commercial that heavy and you how business substantively seeing goals residential middle DC of a revenue fee now commercial got right

even volume believe it’s if residential reconcile match challenging I unit have in Rex averages I’m within segment early for difficult very to to XX% that is me where was of or unit the Overall, our what especially fleet to very believe segment in but a correct this volume stabilized. So revenue, I not wrong, vertical, innings billings bodes past…

Rex Jackson

right. That’s Correct.

Pasquale Romano

Okay.

Rex Jackson

That’s right.

Pasquale Romano

So…

Rex Jackson

…both periods.

Pasquale Romano

Yeah.

business percentage business. can the say unit of not high, to And order our of gives volume That billings. business. magnitude generate determine magnitude. that one to relative that commercial But to that the rest you It’s our volume relative could correlation Its there. you is in of the that of unit an what segment quite idea there order has tell of to I revenue. So and an you the you be gives

Bill Peterson

these years, on thanks for as and dollars which also are of seen Bill Resources spoke seeing Okay. near -- of over which frankly, infrastructure relative The feel I have your significant California earning California Energy how of you should few and in to is Infrastructure last The charging pretty actually as here question a $X.X that the analysis, Commission, Yeah. I types it you color. a billion few new infrastructure. you’re already activity for next Can well That’s think Air Board the $X.X plan, some spent the business? that well. We’ve on total billion term, as give chunk in to us a announced for, if weeks money some you expect big

Pasquale Romano

got the to then years. we’ve the flow states quarter said, Federal Infrastructure programs. lot bulk So, this to has not to build issue. a programs, design relative programs We’ve of and done the for of quickly, it’s as with of with of CEC mean, other the I because relatively states Bill, specific CEC to money experience moves you

a cascade has significant CEC it’s population already have doesn’t the that and it’s years. two two state EV very for with lot large a very tier tier cascade, inherent this a large operating that of get you EV been programs So where

should relief the how in say, -- in we up the California. pitchers are So bullpen the warmed

hard to always hard flow how us. to It’s And much call again subsidy going to to is it’s so, programs. call of that

any don’t in of go venture going announced of been not remember, contemplated the It forward. not that count of it not count So into all until we a something can And we can hasn’t stuff actually on. subsidy of a and programs on life because to we policy until recently on a our -- are its And don’t we any on we I’m have guess. models, was own commentary has that in understand our count stuff. previous model so put

talk Rex any what So that. none you’re about. He’s of of contemplating seeing

Bill Peterson

for Thanks the Okay. again color.

Operator

Thank question with of Needham & line you, Mr. Peterson. The next Bailey from Tyler is Company. the

You may proceed.

Tyler Bailey

for in Vikram here. Hey, is guys. Tyler This

due Just one but last your question, the last that and for Is quick the shift I to some one any there profit you’re issues of in mix potential for you seeing, for guess chain of related with supply the mix supply chain margin prioritize some a segments?

Pasquale Romano

long the customer our of the because nature We customer is tend very of today engineer this. for not financially And to. our a re-buy is, margin. reason a We don’t time,

that Well, they’re time going be of to to under you well supply they and products they say over pressure. dangerous. of buy levels of having take clears. is fraction times customer good ability that the evolve mature who lot initial the business to not going because buy remember, ongoing the We but a when our if this anyway, future that’s to deal the a have product customer’s their service, past of and today, things. may buy a win buys the is life inventory can So a and usually so so need impact customer obviously, far, all to in an of most all you to lead and shaping and so buys But chain product try knows, the impact today we want

Tyler Bailey

helpful. Okay. That’s

Pasquale Romano

Yeah. And…

Tyler Bailey

Appreciate sorry... And last it. then one, one quick

Pasquale Romano

the there’s can is will I we -- QX, demand are backwards or we could consist big been of lot our has into exactly. want But more think and as we and I consistent a QX what to just consistent and meeting forward would just we’re -- fact consist could can. be think engineer that than mix we fast -- or meet, fairly we don’t forwards we we means best demand have QX, in probably that

there. leave just it So

Tyler Bailey

helpful. That’s Okay.

last or just one of residential, is curious, across into mentioned the quick spillover isn’t terms it you most Board? of QX just a sorry, mix And the spillover, one, that in that

Rex Jackson

Certainly some of those across residential and that fundamentally the it’s Board.

Tyler Bailey

Okay.

Rex Jackson

we as is inventory -- But as really little across chasing strong very, flat. the we’re are meeting backwards, we the But and the difference doesn’t we’re --we Just can. matter. and anyway level way, it are got very slight, have effectively so our by a we’re coming business demand it we

that our level, don’t thus we job. would So some have it, has to great team expect managing holes done at but big we a we’re anywhere, far but continue open

Pasquale Romano

not is no? the undue product is clear the question that’s to that’s If are your there and from supply suffering questions case. advantage of, one the billed, levels If That’s point rest of coming from? chain where

Tyler Bailey

That’s Sure. taking and for the Appreciate. Thank you. the on quarter guys. congrats Thanks questions helpful.

Pasquale Romano

Thank you.

Operator

Thank you, Bailey. from next line Gengaro is The of the question Mr. Stifel. Stephen with

You may proceed.

Stephen Gengaro

Two questions gentlemen. afternoon, from Good Thanks. me.

Pasquale Romano

Hi, Stephen.

Stephen Gengaro

you the look when versus U.S. couple market? sort at any sense should in First, about we next the of years relative your over Europe opportunity rates in Europe, how growth of think

Pasquale Romano

market of Relative growth rates rate? or the itself our growth

Stephen Gengaro

of growth do you rates market operations So grows market think for the sort the same rates think lines? at also, relative European it’s business your the product you rate about as or materially -- But U.S. on your and to different the growth in maturity your based sure. of the

Pasquale Romano

some There in different in out in got it’s, having in not differences our think yet, are product but that’s with of some the they’re between process. some substantively aren’t business Europe startup two don’t but the different. substantively but conditions I the areas, long-term We’ve ourselves we’re markets. lines

in fundamentally of years, likely just lease and because over environment and States think United actually to you -- early than the of in in I will see the the -- car now few sales new and next you policy the of will electrification time. you’re percentages So own -- Europe, regulatory higher the the out

significant interesting penetration one that of EVs of the I we think market into years an to I install stat of when well that base. base Europe. I says I’ll percent everyone replace before you takes one, no almost had, of hit remind have electric, say cars car in were realizes it EVs tomorrow big are install that That’s it how this XX upfront. North If the America, over XXX% no is. sold of

And the where -- long serve continues lot to made. where install it a there’s a very customers for want But up positions certainly base. very, while next of and a so of lot where years that couple are market certainly the the time volume of the volume the to and go

a base differences the to relatively see we on is relatively but So relatively penetration by -- maybe the of two out vehicles similar you margin market there. significant the into similar time get install

should we U.S., we’re U.S. business, share so then because high our in in market of acquire terms market the the market is faster acquiring in share share Europe already In

hardware. and so There the acquiring already point in also be ports share, something our are on hardware And do out customers definition, higher we of some have because a by therefore, ground, percentage and by market should else. have we I necessity is not that will that management Europe, acquiring

in in a little days equate It -- in percentage not the of it’s when customers in of lower side that to your try therefore, a the it’s average, and other the hardware. software higher much the on in to our early software, analysis. you the U.S. the of hardware the at ports bit because XXX%. little harder and to do an chairs equivalent management the higher revenue, But XXX% On much our look the under U.S, it’s a Europe, makes It’s or on our percentage not you not

Stephen Gengaro

And similar other on based time -- and mentioned me from the quarter I quick I on feel just I the one comment. the and just installation. understand I -- then on the subscriptions, so appreciate that you call, one lag for

right, should as a about think pretty of mean, a steady kind forward? going pretty So that’s number been that that’s we steady, guidepost I

Pasquale Romano

Rex?

Rex Jackson

So software and to factor, if basis outcome at line, that right? itself commercial selling Yeah. is expensive, percentages that that look again, versus lower you’re unit and relative definitely a you a on you mix different other for is subscription so and then software something That’s Yeah. said, one get is, true. a DC hardware, sufficiently quarter so you what in on networked lag home percentage really a the our can percentage solutions basis bang unit, a our subscriptions a there’s There’s sorry, content then has -- the equipment number, than the revenue the smaller when around. very percentage, percentage

Stephen Gengaro

Thank Okay. you. Great. gentleman. appreciate I the color,

Rex Jackson

Always. Yeah.

Operator

Thank you, from Jefferies. next Mr. is of The with Kelley David Gengaro. question the line

You may proceed.

David Kelley

to taking talk workplace afternoon, for about if bit Good you Thanks guys. your re-buys could at propensity the visibility customer’s moment. Maybe my ramp the for a questions. and

continues to factor Just curious planning COVID XXXX? how that corporate into trending is recently here into given

Pasquale Romano

actually your jest to for the enjoy difficult I’d returning insights to when -- us is one, there really into if predictive kidding. want be it’s we’ll you work-for-home, to, environment Rex, return in a of work. terms around

in utilization different numbers are policies So returned workplaces the There the with people administrative more are a -- to because certainly on point different not work. the levels, more much where more that are of cars workplaces sheer burden that respect different types is out of hasn’t as growth to to with there’s cars they the often. where criticality doing, many the market, the relatively we’re on on the office And not previous having sections of the while decent are still have that administrative overall the but of what there there basis, have industry, rate jobs we’re how in country a proportional because volume larger take total, entered there. just its what pressure I’ll internally want seeing their so

hotspots everywhere. those seeing you’re So

do mine. not want Well, the your on as that question. normal, is new it guess the whatever is. other Rex, it’s to comment good to you gets zero. When So as

Rex Jackson

Yeah.

hard on things that only workplace would are be at doesn’t that QX the way, that are think built there, by today, back office to all looking at a updates QX in come even January. of to the is, that’s back thing the guide, people it’s got add if So I into our the big look you’re out end you the is because going really that if assumption in going

well. So so go what mix my we are as that -- to

to which we think the great are going current think concerned. guidance numbers, are as continue before, we So far hence our is to as mix

We’re really next force coming in back forward looking to full workplaces year.

happen on to We’re We But yet. in of stands, But that’s now good happens. not the terms going at to would be very, future. But… course, our very linear how hope term that that forecasting we business. look impact short of

Pasquale Romano

think conservative as it, stance because it’s possible we humanly as much And about Philosophically take Rex -- and bill to Philosophically scrap there’s possible, limited how said, in we’ll whenever that’s we not risk. just safe. bill, -- because especially a obsolescence risk right over yeah. with doubt, as now it’s our inventory not, there’s

the get So out of side variable because money, stimulus early onset given as via awesome. come we’ll of that retreated should have side the not equation. bill But don’t going our upside, inventory COVID, on early possible control on what to surprised to that if as we’re much the either things around engineer we rosy -- positive you, we expectations company

David Kelley

is have not very for returned And it. work my the guess Got to Okay. record, good.

the the kind to of up as model offsetting at demand of an I relates certainly what more as this it of a lot there’s moment. are get a workplace in oversimplification, shift as sense is of on is maybe where kind companies there up won’t regardless But it. of going push pull follow maybe utilization of model and the bit viewing -- a sustainability, where a Are metrics point the it maybe some seeing is impact but the on to focused that ESG So quick utilization a just any you demand.

Pasquale Romano

that to supporting sure cars will supports attention frankly, sure that, transportation, making have. the because turning fun have electric companies which would, much right of posture that I’m climate what respect goals some So are to there’s with their all they the

rate So vehicle there’s element early an What to a certainly just company electric their of on point that, experience which large. that significant buys small. from be run based I’ll charging be revised is the that. to out, into think tend tend is I It’s moving

to plant workplace business. there, I our it’s any doubt do commentary? quantify an in But Rex, just trying customers in I bet needle you the better So significantly you I flag, moving are ESG can’t it. have

Rex Jackson

hit to I don’t, I we’re the build close because so anytime, call now. to the waves think, there’s a, it’s it us hard that ahead, they’re hitting

as are get for it. people So I ready an should think they recognizing this and trend undeniable

it preparation move. would I to So just opposed a call early. to as It’s smart time

Pasquale Romano

And yeah…

Rex Jackson

way, the by And I could…

Pasquale Romano

Yeah.

Rex Jackson

remodeling Right. And actually this what’s an construction construction do office I’ll -- and unoccupied it’s because or space, to time is, there as yeah. What’s opportune COVID, out point also occupied. happening is lightly it’s during because happening, of

at we’re all. So for any that not slowdown seeing

In fact, that the relatively construction we’re on seeing strong side. being

David Kelley

That’s Got helpful color. Thanks, guys. Okay. it.

Pasquale Romano

Thank you.

Operator

question-and-answer the remarks. back over will the concludes for I Thank turn Kelley. session. you, now closing Romano That call Mr. Pasquale to

Pasquale Romano

So, the new want have hadn’t family want everyone the thank have team. for said, really ChargePoint want you first remarks, quarter’s all, to questions interactively haven’t really in as participated questions the just calls good I and to the that sum I wonderful all I -- want I last asked again, before to to questions up to welcome all, today. I And our that folks earnings thank of

dynamic what heard respect this thing materializing commentary how has around you’ve team market supply it’s chain, our the for the to to which environment lot employees. a with upside, for and of a been the frankly, upside think to to been much wonderful manage and I been a work has

ChargePointers. stellar way two two from acquisitions our the of well also into of -- We have our teams on now integrating family

I thank ChargePointers you the I lot want know listening to of a So team. calls. these to

there. good So it’s excited company as holds thanks guys very for what our future think very, for an industry the very, of investors. all and bright work just that the us doing and about we’re We collectively a and picture do all tremendously you

all base cars, for support electrification the We in said light-duty all sort cars we’ve base. always seen The we’ve in that broad to buoyed as you’ve broad cetera, analogous mobility the vehicles. come, et and that verticals, up market our by of index verticals are and because so been really -- the we’ve car we’re heavy-duty showing attached an here to to got trucks, and the then

see continue growth great as really we ahead. some that they to fueling So materialize,

again. you all forward have… to you Thank and Abruptly] a So hosting thank look We [Ended quarter. you in

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