- Earnings call transcript Q3 2023

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Operator

Ladies and gentlemen, good afternoon. My name is Foe and I’ll be your conference operator for today’s call. At time this, I would like to welcome everyone to the ChargePoint Third Quarter Fiscal 2023 Earnings Conference Call and Webcast. [Operator Instructions] I would now like to turn the call over to Patrick Hamer, ChargePoint’s Vice President of Capital Markets and Investor Relations. Patrick, please go ahead.

Patrick Hamer

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

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

Pasquale Romano

of record our earnings million We call XX% and sequentially. everyone midpoint growth you thank company. joining largely made and between to at point million backlog. supply-driven shortfall growth quarter in range, a redesign. for additional difference year-over-year as mature product resulting another guidance on now margin quarter the shipping low have XX% up November. this in the high-margin of we AC revenue, with our The our held again $XXX public X a in constraints $XXX end product our in and most strong up and in quarter, more Demand the eighth the The of our revenue supply yielding had exceeded delay result in and Patrick you, guidance as was Thank shipped production for for improvement

our We gross revenue on more year achieve target Rex the comments. his are margin and track on will on for to revenue and in color provide particularly

disruptions and new manage margin to and we comment challenges like presented chain gross on I’d the product operating introductions, constraints, As revenue by expenses. logistics supply

this OpEx our As year significantly shows, trajectory. slowed our expense have we operating

achieve We in to are the driver key market we investing of have the managing calendar made right OpEx making and choices positive flow and turning of XXXX cash think quarter are fourth a and position. as our

previously, have vehicles. our growth the commented be have been and electric of has many of we correlated invested ahead revenue to the we availability market for with As years and continues

Spending and our Europe. engage ahead With has of global in us for the the return. of continuing has increasingly North fleets, and key vehicle passed consumers we point of EVs to by announcements new manufacturers in industry verticals America across no the believe revenue enabled

done we expect though company ahead out within and to we to those expenses functions spending the build have leverage our operating Our to in have core challenges a to thus to year. to we show geographies. And scale us improved product as opportunistically lines enabled and grow rapidly, broad has this the operating product continue portfolio support typical

everywhere Focusing be on have for believes relevant. broad you a ChargePoint essential, be to drivers a product R&D, moment is because portfolio go to

commercial and modular serve. releases which and powers and our car line, our product global fast-charge AC recent We of solutions newest fleet achieved expanding we our passenger geographies our Plus capabilities the fleet in the product major Express highly have DC line, CPXXXX, introduced

With these comprehensively fleets to evolutions drives of ecosystem spend a for drivers, our shift and station continue entire array in our ecosystem to which of platforms commercial our R&D percentage higher investments the production, expect owners, of software, partners. in we large cloud products and to

$X million. Given our we useful this reach. our of one us will course we and we in quarter seen is strategy. third sales of pace million to steady continue had supporting area a over which $X customers Last of alone, end a quarter. of indicator in bookings land-and-expand quarter a of give increases industry number exceeding over quarter relationships, reinforcing the which million averaged leading trend exceed $X in the we booking XX the have year, investments our within bookings channel our that is million. per in growth, A in bookings combined This $X year, number growth In

rapid We a continue to clip. at add customers

and expansion customers consistent XXX. existing with Fortune customers and XX% XXXX XX of XXXX the trends of the billings within Our for we consistent account Fortune now XX% XX% was historical our the of quarter, as over

introduction but constrained. we did ChargePoint’s logos products we acutely enablers, North vehicle the by impressive been by Until the In our to In Rex’s I growth we Despite systems, backed for are we Lastly, the consumer of strong, the new market billings and lifecycle rates. critical some the countries. key spend by of been have on In been wanted on two automation, has scale the the will encouraged that increasing the has sales of business, remarkably have investment briefly in at our proportions customer own solution. competitive rate limitation, believe he in support comment operations of believe AC an right partner management, adjusting CPXXXX, not most breadth address revenue we the been arrival EV We and in and be winning limited. significant favor have reception commentary, outpacing to the installer product of American demand progress the platforms. European tools supply systems Europe, the advantages. of are support will fleet, but channel vertical, fleet, of business lines infrastructure,

in We deliveries. where in where are delivered are growth being scenarios customers and are seeing anticipating impressive fleet vehicles

example, For XXX% XXX% over billings is year-on-year. and year-over-year last-mile short-haul up transit are up and

Our and I to represents more X,XXX base X%. annual grew sequential quarter-over-quarter. as way fast over Of to increase network installed an than the verticals XX% our ports is this installed fleet in under are DC one Europe over year-over-year base of a and ports under an progress that increase those, over remind are XX,XXX increase DC management XXX,XXX, will of commercial track of fast, management ports and in XX,XXX generating of subscription. software you

include breadth guidance in but at chain March our scale higher business guidance, model growth now will port network single-family combined This through residences our and with range in midpoint continue demand America for but XXX,XXX has platform. our demand in the North to our persistent is short, us elaborate driver we to on call. that’s than and annual our Complementing narrow accelerating available reiterated XXX,XXX do strong we reminder, residential. home roaming supply each a and Europe. not despite Combined, with ports we EVs, in headwinds. is over a for quarterly chargers revenue this, Rex of ports reach count, As see over allowed for gave

While concentrating. signs decline continue, are we seeing these of cost freight and headwinds component shortages

business approximately we statistics has all our of miles to-date. billion fueled the execution. are avoided cumulative estimate estimate on conclusion, that drivers utilizing million metric strongly We XXX have we focus to have the so right tons model. over environmental we Looking and at that network approximately emissions. gas gallons network continue gasoline our products the now to the of us, In electric X of right We some XXX,XXX of and greenhouse critical believe

in structure so our simply the to advantages do growing remarkable other financials. opportunities that everything through XX-year bigger quarter, competitive to passing building better are to believe each Rex, returns been our and company. need We channel we the the and shareholders. two across team, us relationships, history and three with the rapidly customer have over our of maximize we maximum generate We take technology we for geographies, verticals add

Rex Jackson

assets quick see release as previous where non-GAAP principally GAAP our A restructuring reminder, reconciliations. and are my comments earnings everyone. to intangible acquisitions. afternoon in for stock-based non-recurring related good exclude and of to and calls, Please Pasquale we amortization our compensation, Thanks, non-GAAP, costs

XX% to $XXX million was revenue XX% the million, QX, $XXX $XXX guidance up and at low sequentially end year-on-year For million. of of range our

November. Pat As to the due between our difference results of shipments beyond in midpoint quarter and mentioned, delayed was guidance of the shipped of which largely units close, all AC our

fundamentally have for ship. could running, book multiple could and build we we ship what more quarters we than As we

Charging sequentially. year-on-year and XX% and XX% Network up good pricing, was million $X revenue and backlog a we Subscription XX% XX% at revenue our So revenue the X% XX% Other XX% total revenue of was our since of backlog quarter, XXX% existing of of of older and thing percentage a during QX lower worked $XX at X% thus sequentially. backlog increased much of sequentially. ending increased. revenue, year-on-year $XX our down at year-on-year up total million million and revenue, meaningful Systems was

recurring principally grow, Assure cloud continues and software payments of our revenue, warranty from deferred Our existing and $XXX coverages, million, at for up subscription which million finishing is end $XXX quarter to revenue, at QX. the future the from commitments customer

backlog was North and essentially QX QX was was had in third were From XXX% approximate supply the product Europe sequentially delivered was verticals, commercial fleet perspective, In Residential contribution Europe know, but shortages. percentages perspective, percentage as you impacted residential revenue strong, by revenue and a which a XX% a the and on a was geographic fleet. report XX%, record from Europe year-over-year. from in America due quarter. other shift but to X%, bookings availability, Europe representing grew slight favor we Turning and XX% them revenue a XX%, $XX to a quarter, split. flat billings XX%. perspective, revenue billings million of basis

the for the XX%, percentage gross in QX to increase. ASPs as saw QX to that increase through off X flow up quarter margin. generated XX%. we prior in price point We of margin QX’s the price improved. continue backlog Non-GAAP was half from work Turning June to gross

due transition QX operating offset impact X and and price from million impact and year-on-year $X logistics by DC million shortages product were elevated down $X supply margin or mix for X purchase that a points million, a expenses was XX% AC to increase X% QX. in of costs, of variances Non-GAAP or charges. $XX However, points partially heavier of the

Stock-based goal component quarter fourth the the of of necessary our OpEx pleased margin expansion OpEx over that and XX% expect as develop. in drop quarter. QX. of continue XXX% to leverage that QX This not of in is in from as to from percentage to now a million, due taken revenue, our essentially progression released third improvement to flat a each stated a but expect and XXXX. our go annual of flow QX quarter grants generating calendar reach stock-based We to critical dropped QX have do stair terms to was $XX to steps compensation OpEx, compensation by dollar forward, core cash growth, to employees. of the in years leverage the second XX% the timing have combination typically are see especially in revenue number to improve, free given to we we Recall products of We

at short-term outstanding with had of quarter as in approximately shares million XXXX. Looking we the We cash XX, $XXX investments. finished cash, October million XXX and

up XX% year to guidance, we to of slightly $XXX to revenue up XXX% million, all expect fourth at XXXX, guidance we fiscal revenue above to the for have This to quarter $XXX and year-on-year be the the doubling of million and midpoint midpoint. had million $XXX translates annual sequentially year-on-year. $XXX million Turning

expenses improve operating lowering $XXX range annual call focus $XXX down for below gross again expect guidance of to to we million we operator million. will to to $XXX are the For to OpEx, year we be non-GAAP quarter, end to lower back million million from of $XXX With previously our for With guidance the I XX% questions. on our for the to turn prior the non-GAAP that, XX% sequentially, targeted. fourth the margin but the continued our

Operator

you afternoon this James question much. Thank take of West first Instructions] we our very [Operator will And Evercore from ISI.

James West

afternoon Hey, guys. good

Pasquale Romano

James. Hey,

Rex Jackson

Hey, James.

James West

to I of to closer know starting unleashing Pat, the opportunity, building within fleet still market? we get customer huge are you closer side Are in kind the that as coming get on business, constrained, constraint a bit of urgency this we obviously quarter down. vehicle of which every base see your vehicles the we kind but is to a of

Patrick Hamer

has mean I there. Yes. urgency the been

vehicles, So, made, And you to a have because I change seeing, they transit a I draw both as because because year-on-year are a large growth couple are has are demand you there rates that urgency, I generation, are which comments supply I’ll the of been attention see of there industry, rate to lot more vehicles, don’t pent-up that midsized your where kind that manufacturers actually see starting then I in in just a for think of logistics, one What just seeing short-haul disproportionately you seen mean, plenty that the so have because – products growth effectively is come you also well. mature seeing online. than products, maturing are more buses, pencil. of

expect sub-verticals. trend vehicle minute to that this – percolates all to availability the other the We to of manifest kind

James West

similar easing those they and maybe this Okay, chain then okay. still That’s to helpful. or last constraints or logistics And point supply you the are are guys are production that quarter? experiencing, at constraints on

Patrick Hamer

had – narrowing. specific to the problem comments made some on components in on that my continuing remarks list are I I are The be So, that.

So answer I comment the list made is a a I to last narrowing. earnings question, believe, similar And in Q&A.

that’s that, normalize. so starting The to logistics, we into headlights freight And got continuing. and

on of all what platforms held And And and side, direction time. quarter just didn’t in bit to result of AC kind what built up transition a on in revenue very of mature update for of so that bit made just as get a And design that’s one more is a a supply-driven us the effectively in a color bit moving we coming our product kind in complicated little it right of factory, planned. of a sure. this was in kind the components a the late

So we as made on side it. wrong in Rex well his the think of comments, cleared that and pointed out just as boundary. I I shipped in quarter shipped it all We the mine it

the on the all front. we factory out that continuing stuff to So are down that’s all and is build

James West

Perfect. Thanks, Pat.

Operator

We Davidson. D.A. Instructions] [Operator next to now you. Thank go will of Summerville Matt

Matt Summerville

revenue put just point what like questions. on it supply chain of would the unconstrained Couple to looked in an chain like have I supply things. could and Thanks. QX? side of in want a QX what finer look In environment,

Rex Jackson

we rate good as question, answer, been building I we backlog, a have directly have rapid at year. but one That’s this said, can’t a

the anyway, I how the question fairly was things, think to out. West listening I the other thing astounding. but it we thing have I constraints, can’t growth is would be and is substantially handling we that thinking chain only James But supply just say to but and higher, are our give is from rate

well. how expect right. growth burn So – through of I us as it get keep off I to pretty then sustainer backlog maybe year a I a or rates, a a think bloodish. we next banging boost be see that engine know to will would nice I don’t from will out, It running. – this for the boost we are don’t but fast being burn or And perspective help

Matt Summerville

will your into year? benefit – costs. not in in actions QX? much in be $X QX? And taken? Will $X variance, you next million XXX% XXX% you’ve of of you be from QX the the outright when How remarks, transition million price away lingers that Thank will purchase pricing much that that receiving until in Rex, be your How you be – Will to you. goes away goes point, in when then product prepared QX? out of And called

Rex Jackson

Yes.

of in turning would – logistics the of normalized to pretty won’t. the I on will got – us house we variances well I Pat by that in forward. QX. stuff backlog a said, the ago, surprised have fast ship backlog then didn’t we in should terms are logistics I of It’s it as happen. to the and different And the just focused expect are well. be really look expect and and on to most XXX% mentioned think as side there of if But going like dependent some lot I’d be they you of would how the pretty and if burn hit and QX, is a components off get rest So QX. half some price whatnot, around it about stuff we’ve increase, most moment And

expect benefit would I So a there.

as America know then not now they to of it but pretty as to across contracts everywhere. and with PPV, us in a did trajectory, used into sure when on It do next in, next but impact as components, QX saw far QX, make North we I get quarters. isolated. that a we entirely, – be I year. of terms on think maybe couple that software because much we you certainly that increases, major lot be apply would they As the mostly down in thing one And if a the and a will do downward XXX% apply, And – away of coming it’s it and isolated expect to be certainly it increase to But more model, everything, it’s goes in go more forecast should apply when won’t see is We see the understand let QX. would you’re meaningful over where nicely a you XXX%, doing will and of it price XXX% to are have then it – we year. things in getting baked because hardware we won’t North in America. customers positive – Can’t earlier last price

Matt Summerville

Got it.

Operator

to Thank of you. Bill We JPMorgan. Peterson go now next

Bill Peterson

OpEx. growth are and, you year? commercial But to are or I right fleet expecting are we focusing thanks applications, you mean, prioritize stack my between the you look – you your I questions. on the most for year the guess, next show things guess OpEx? if prioritizing Hi, where thanks work, resources trying as look you to taking opportunities we where what into for like are Yes. how some the I really as next of could color into thus,

Pasquale Romano

the to to It’s mean, all – we do we’re across and will I continue balanced a focus way in continuing verticals, so.

We’re to not going one. overweight

make and will of on by dictates We sales essentially kind the expansion demand sub-vertical. as operating marketing side the necessary

how historically So it’s just we’ve performed.

before remarks, we it out to make to making one to I in we most it’s spend steered from point don’t just of go OpEx and a escalate went It’s with a that verticals the models to in be the it another want shortages, public, in and as Rex to our geographies. will that any things have bit controlling I haven’t vertical overweight to growth my mean vehicle essentially market verticals flesh when just just unnaturally how base There where reinforce that even mentioned, down, was have leveled support functions to quite I – continued necessary was expansion, off given as leave operated – we respect expect really substantively and is not now, it’s we and but uncovered. the sure we unwind investments EV the together as Where trajectory doesn’t going out historically. was anything that we’ve we’re unnaturally us built prepared because certain that installed direction. we’ve that that with rate We relative effectively. decided to things the in reason intersect the for put

Bill Peterson

that color. for Thanks Okay.

are there is like new For ahead? What up? it of Has is trending, also my as sustained out don’t but base? of look like where Obviously, drive attach to, where to as Has I’d is question, has percentage networks work try your installed that there higher second we today? the a service I friction trend? EV rates to been gone and it it service ask properly, a guess, and team of that doing drivers could kind what lot create to

Pasquale Romano

referring I programs, to just our want to Assure are clarify mean that you our... you when –

Bill Peterson

yes. programs, Assure

Pasquale Romano

why Maybe take don’t that, you Rex? okay. – it’s Assure programs, Rex

Rex Jackson

Yes.

are which I the sure service. said our to there XXX% very always rate supply that we referring Attach that am make things we’ve to low. call software solid And is extremely just been from of and perspective, out renewal certainly rates is the gate. on rates of right calls So thing have the multiple our with one a loss

on we as of program, into our As increasing rates Assure attach put lot couple far years. Warranty energy that over the of last the a

but trending So swing they not trending there they and and have seen is great we drive customers working we’re want short slightly some to with work They to continue. they are network are XXX%, is, are they either. extensive to haven’t would very that they place. expect Big are in it our healthy obviously, successfully through downward healthy. can’t are Assure down, to because – up, that we who on that we are trends buy not self-serve and then steadily, a And that, but channel on yes, and on any

Bill Peterson

for thanks Okay, that.

Operator

Thank next Cowen. you. go to to at now We Daoud Gabe

Gabe Daoud

within expect as Thanks. for the is talk mix particularly over Thanks within to talked about – time you’re kicks product NEVI there just I basis? what’s that is but I Like lot talked the a know – – maybe can a but... in and afternoon, What’s off? source the should what you will fleet, so particularly bit program demand, there? all little Pasquale, point it, and continue everybody. I just seeing trends guess, at just about we you So grow, that Good maybe largest curious commercial, commercial it channel? of And on mix then you there, demand this if in DC also about I’m a the prepared remarks. Europe,

Pasquale Romano

a Yes, let’s will can here, to take we Gabe, order. – we if there see is lot them in but unpack

way. that hot first I’ll your the So in regarding spots cold shorthand commercial, question one or

every of we’ve and been every foreseeable for parking of lot business serving the company. type the – since We’re of not type – literally history

in hot no is And so or major that. spots cold there

if to vibrant workplace little think Rex what component, to I were people be be calls, few earnings continues on would muted mentioned, the As is a relative it’s while bit and it has a there previous was offset office XXX% in a largely office. in that That’s the of installed rate the EVs week, have of cars. to days by growth returned base the of in X workforce the office

delay kind just it today, as of why be view And have stresses everywhere one that I answer of gave we previous questions workplace. So to in to you relative even go. to a the the drivers that

effect everywhere you’re every that not they parking encounter charger. lot if and network your in may a lose You

So importantly, our supply been that’s takes is see up because patterns, effect mix that. unforeseen you a and us And advantage etcetera, we we do the to doubling in lose grant if a the traffic healthy of were that we’re – when the to in a growth see on most to as things focus vertical, bubble one network maybe chain sub-vertical and patterns we shifts And rate. business. from steady another, will you’ve if wind we businesses it. change offsets in the a driving one insulated up versus things you’re having programs, But despite you’ve down why and due every to constraints, don’t bit fact macro lot due from bubble trends seen insulated that that’s put another, that, effectively fairly like largely predictable that and vertical

percent percentage so to ASP From the relative shift of to represents. into why in That’s an program. NEVI mix from revenue I the an a higher ASP comment. make to it’s it perspective, one count see don’t on DC. you count We basis. see it port packs that want a So outsized much port

because management, percentage is is ports driver a network steady fairly the you port we a DC. publicly, which use a you’ll encounter under that if look at a represent virtually might see every case of reasonable So do active reasonable view

see may with pull NEVI, Now specifically there. some you forward

remind remind will fleet I’ll does – because it of inner license is we’re from in as the trucking, vehicle transit years is to do But that call and diluted. but the a an of the and than of shortages some. it. perspective, to supply come and but of will fleet because commercial biggest in the chain. the then DC much is ASP in mix And segment. overall of recurring ASPs is – problem, be now, That you remind heavily more in requirement port, You may amount money a will that I’ll a is so thing. get of impact there not in on years, or on so light light a exist United unwinds, regardless up the more much fleet in job, that And constant, this bit but outer DC will is so two much software grant in port see because in as phenomena program, more a it percentage I’ll operating count be is to that it the it whole bigger supply to the that It fleet the the will is market States. quarter fleet inner will fleet that still attached it But commercial per there years, X-year one fleet phenomenon problem again, DC-oriented geographies, start a you around hard also the ratio And get will very not build. bigger, starts diluted. shift vehicle a Europe. or demand etcetera, the its a shift. move Right you mid-sized that

Gabe Daoud

it. Got got Yes, it.

really Okay. Pasquale. Thanks, helpful. That’s

maybe whack Maybe it at last point? it’s I I’ll one. with year know are questions about more component chip the this – But of shortages a the of supply some a quickly one follow-up year, Sorry, just issue. the again, then you on for just mole. talk and what this front. just Could the last all chain was more a multiple one of

then And any think ball, crystal do you that? of Thanks, if eases? just guys. like on your so look all when color And you kind this into

Pasquale Romano

my not probably is one career great chain a Well, Gabe, something run hard learned as like, to the way is. is ball using over supply the the one financials of business a a things – of driving crystal when as I’ve is

than more can’t we has I – life So imagination do.

that something macro happen chain know is don’t unforeseen. the – potentially in happening the I side, supply the hell the could but recovery going that’s on that’s So what could happen stop in the to

too difficult it’s just So to call.

in We the to concentrated relieve IC in to big material we’ve ICs demand the we are up demand long-term, reported the be that it’s quarters, then that hard largely consumer see there. segment for to how do would be for expect it’s are several they because would And starts we electronics in use of that the itself take side is that that to ICs. going call see if, We semiconductors concentration continue significantly across macro clear shortages back seeing, long as a power transition. the of common the that now in to prevalent of long-term, on energy if, pull some and likely In will used fully kind substantially. now, the fully chargers,

very So is and be that chain. That’s how supply a we in our continuously. that that, going manage said quite I because our just nothing strategic with industry time. on to we’re something That’s chain have And in for that new. you supply to known to obviously, team respect power working know semis the that’s long

can happen it naturally sort again, funnels So down. as in know. how the macro that’s we anything of all But

trying are we to careful. So be exceedingly

of career building a job good in situation growth I’ve we’ve done entire of the before the what and products the lot building my and of XX-some-odd products. really seen supporting a company think I never year is

of a So relaxation we’re welcoming trends. these

Gabe Daoud

Thank color. Great you. Pasquale. Thanks,

Operator

now Colin next Rusch to you. We Oppenheimer. of go Thank

Colin Rusch

Thanks so much.

SKU geographies, potential from diversity on Given little about requirements you a you’re standard standard dynamically what the a hardware development bit to side the software single seeing with contributable the talk and potentially? move towards increasingly across could

Pasquale Romano

that – I range set The and as It entire that just we or required the been has shifts shipping cable a that’s it’s it through may we’ve standard remains product going fundamental all been can product processes Yes. It globe The And that and it country just core accordance make certification platform, single there is change the – fast is designed the for a of what stuff a it software the And there. mention, and sure of global grooming entire look, we a is line we in. and the in configurable the systematically then and world cable up and the U.S. and now. does doesn’t the meter the attached, wakes everything can right electronics three-phase. all because local understands in in power all standards. a a what hardware metering well that and expanding, one and charge and so to with it’s kind to do launched we’re everything it Lego-block fairly everywhere standard up local mean, European now. whether the perspective, line be up have running or software. from cover the incremental standards as does see that that CPXXXX the AC manufacturing or guidelines

that in every everything of we’re wrap XXX% gotten corner future. up steady through not-too-distant making that haven’t We progress in we the of the but markets serve, will and

it’s modular socketed it respect specific with is build to point It’s attached. whether something. So possible to cable or example. to completely a I’ll

socketed some meet all platform. and of to unit with in Some require brings change you from own shuttered same socketed cable you dynamically all scenarios driver socket attached, not can the the cable their the can the requirements countries Europe where over European

standpoint and long-term to manufacturing especially is issues, you we always inventory. of a ability instantaneous to can have quarter, end, But It’s So because demand, a what happen, move could again, subassemblies built get things close and manageable is way predict a the locally well. that product nice like velocity you number as really that pretty around deals from kind the demand that come with quickly. a in having deal satisfy that mix instantaneously get you within of which to trends ability the from can

it that’s that why we way. So do

Colin Rusch

helpful. question That’s then I And second guess really the growth. of advantages the some is Perfect. around the of slowing

bit what to you seeing culture see guys is the but you a an to of It have, leverage a get growing a expecting can get that from You very the of this you’re and of have job some from done team, with talk slowing incremental growth operating have group efficiencies and cohesive you’re to closer actively a to about perspective be start ability admirable as team. little perspective? some and some more the

Pasquale Romano

have the to be both in Many question. folks I integrated. are happier is from within integrate highlight within with your couldn’t may to the I acquisitions, to listen two how to that teams fully together in the may And technical senior leadership sales not positions those or go come came they that We of acquisitions have think other ChargePoint. and things and when big mind there people immediately acquisitions them. come and two had through

great a of have, really side came So of think, from learned three the we learned from us. – from on folks, I and And a all we’re side. together we’ve add those a technical and better perspective. companies those we’ve it lot And were talent I on the sales think culturally together, a was lot all kind than before they

So that. we with happy really are

any the how workforce private, still personal and hired many for our you percentage look think years, years. nearly public of a of years into of that been the now most, since forced being historical our had a amount and we’ve look you many has I were public a – environment is that constrained. but people impact substantial if of – workforce because right, March, other going the kind bigger not most you it’s because X COVID just been at since X many of great headcount in how not then COVID we company, remote have benefit interaction for company so added like if at of us pre-COVID And the –

and make back by to way, embrace coming doing workforce demand. lot the we’re a sort sure and things today’s that to actively sure careful flexibility of being that very people the get we Now that’s of collaborating make we

on trying we are work make don’t but we down water slightly throw cold culturally integration, slow people’s to flexible we sure that the also don’t that more So expectations of environment.

managed since have gotten they think incredibly people I well. together as Feedback are back adapting it are we the restrictions lifted. have and now So coming we’ve

it’s culturally, gelling well. So, really

the of looking scale. know to we internally because shift We all now also are what at this like looks

going automation, it’s going process, it’s we know now from then and like you internally tools what invest to upon really what in you and So, to it’s you. automation, you to what – what look onboarding sales reengineering know force look customer support know think like business when to

going It stuff actually I while think So, our there to am it’s is inside It’s it well. the are will going a with how very And on of cross-functionally doing as can I to company. business that, going as complete come ton which quite about going well that has doesn’t a team take mean also it’s together. fruition run come because we time but happy we trying to are bad.

Operator

Capital. [Operator We go next Instructions] now will at Irwin to Craig ROTH

Craig Irwin

in you NEVI money you a this states And to that is to team thank questions. that and for Hi. maybe Can crystal on interesting market conservative that a and for be a of levels over update a that preference way? is Fortune resources. your update timeline Pasquale, team telling have in in different said share going the evening from ball that them compete see my a in bigger short largest impact us activity? else development maybe more might said, appropriately were ‘XX business really Can making about the overall benefit. Infrastructure you have disperse performance anything are Good taking for way indicators that us to the with and optimistic what you you I of you Bill – funding industry the on and medium-term managing potential as on there have for the very a you the being meaningful

Pasquale Romano

– Well, respect I I not shortage to have don’t disappointed. I not with think mean I And am we NEVI, of activity. a trying am to be and market

dealing on want before consistent. front expect happen As a XXXX. some will expect year. through think in be things XXXX, to things our it half see the the happen you we cliff, we I sure that as our just will mentioned, a for It in year that can we happen to And the continue current back will that and we into managing of and update, company governments not year, programs respect you you grow. quite with it the front specifically point on if it that something don’t models I be the There happen that visibility. I pace are will anything of that half the government. have been but look as of mean things conservative the half well year a to very of to didn’t in engineer asked, bit in because in of to but we the you We with the out that’s start moves to are also as dynamics like won’t And current And now. lot. will NEVI. like the if grow at the And maybe activity trend. I be

reckless. all it position our something ability a so an you undermines And in predictable really something or if you public you it are are on as to It’s be company. materializes, bit are at on betting betting a and your until on optimistic side

our start make comments. we to will when we it able will rate So, start what win to further see see ramp we be, to be and

Operator

you. Thank

of Vrabel Bank We next Alex go will at now America. to

Alex Vrabel

having Hey guys. on. for me Thanks

know this I relatively on can I you it’s Just one curious just this you can just clarify can fresh. e-RINs I and kind you are any came details if guys just expect. of offer today, other are one how for very But out just positioned fresh. at am the curious that curious if know what you me very, around comment, that, But point? color you news

Pasquale Romano

line, line is program but – we occasions get really business our say where we the can of with of But proportions or or our scenarios can we model. advantage statement. with So, advantage owner impact a take take of goings this I not a general. a that remind been LCFS a I what are that in customers, will us are, we that’s of on it. can we that other haven’t credit we today show you full share station I up can take in that e-RINs There will that it’s material line. take on here we the not revenue current that advantage the to will that with for call the circle people in advantage if given in the the chance, be we certain pre-occupied program had have where to And are bit

– will line, to customers, you us, what you scenarios benefit how that you where But the have look are a LCFS and give on on our go has going that at of and what administer will percentage a long-term, customers, much early And whether too credits to like the go, done. to full so to station other in where those so we behalf the indicator – will get but what good look our answer. of largely we analyze our you pretty if

Operator

Thank you.

to Steven will next Fox Advisors. now go Fox of We

Steven Fox

good Hi, afternoon.

on of sort how you questions couple in margin had the just the want to make Just backlog backlog of still of margins old the on expected clear versus some pricing. quick on sort am on a mentioned pricing – I gross is gross versus that’s favorable more I less And the favorable? going sure forward. then One, margins. What’s new difference of your your

are the going might full below implying With that to be you down the guidance? for just or the from QX year that guidance, be full margins QX gross Thanks. year are you

Rex Jackson

Yes.

take So, expect have we one happen continued – let the second The first. improvement. is what sequential to me

if we years So, have look you ‘XX, ‘XX. at the so far, ‘XX, gone

far we QX reloading. as being mathematically transparent, not to the quarter, expect thing, we definitely a and in get mix have to given so that QX. of other people sort it’s is hard it. that that going we off we But of to to on ‘XX backlog so But the we backlog the the see wrestle burn PPV every that amount get did QX, know, want think for thought getting on table. And improve concerned, better put we do ‘XX, we it’s are let that things up then to with And off to and to will is so we taking We on ‘XX significant ranges as could we which likely, QX.

pricing have as system got in put so related takes and system. can through a mind. you hardware to imagine, the it to price you that bunch in the go when we America, It always while you increases and a And new new our there go are to the while in of through that did now you in doing to a you So, work quotes takes out terms keep have for that in, June. North quotes of

will I so QX, will pricing next I said And are quarters, older pricing. as we that rolling QX, through the we probably be bang have of think through the on earlier, commitments. And the couple older so the over fully new

on given was In of it what we improve right. there, figure increase a margins haven’t terms level significant, the out how price the was, but

a very very, will roll it so, when And we through the nice that months. impact next have through margins increasingly on six

Operator

Thank you.

We will go next now to Maheep at Suisse. Credit Mandloi

Maheep Mandloi

Thanks taking the question. Hey. for

would over year. we or that of able talked quarters second just new to QX but that a fiscal were you Thanks. than next at this clarifications months bit slower expect think next on about the just be about flattish we Going obviously, any growth, – for six appreciated? the to revenue reduce forward, these clarity clarifying transitioning you comment, growth on OpEx. year? should two we it by And should next previous levels little or how pricing How somewhat should the Just or, question,

Rex Jackson

Yes.

to out to about again, got – channel, think those So, It that you quoted. it only are deals have if a deals on you to not got impacts you Then you the front, new closed. it out to increase, get announce already if pricing price sales. to get get you

building backlog all have we know, year. been you As

it your backlog. So, cycle got to through you then

– a it it do roll the just are June see we that a it months are through, through. works, looking Good at minimum, you four at way increase, you price fully So, months takes is news right. nine

do, think look non-GAAP would the even just operating as I see concerned, two as basis, some look the is third works well encourage one, all we far underway, for we that OpEx patient over the months. though nice are trajectory which Qs there through on so its out. did as to expense you we to at system in you And be and then our And several I way if quarter. we But a I and from that have next think three impact

to actual very that’s substantially get trajectory year, – introduction see And and will You product hit the look some new in nice steady this of will year reduced. thing past There the were will this our is which the be expenses OpEx company. we many very been forward, be it’s purposeful. as of that

it’s OpEx remarks, on But are measured very as in in my go go to and up, going think the will way be near-term do We OpEx if in years going a rate now reduced intelligent expects prepared And to ago, I think said relative I but up hiring. our have you look nobody from frankly, substantially increase increase. that. the back of to to below percentage-wise, were years rate X what X a to be was us revenue then I –

down. So, go the rate of increase is going to

Operator

you. Thank

Shreyas We next will go to Patil now at Wolfe Research.

Shreyas Patil

piece the or there pieces in going the related of some understand it’s question. in ongoing prior supply now. Great. to the guide, I that’s Thanks But maybe are that just margin like missing be the to around back much the I It low-XXs kind I some of margin reconcile so wanted for to sounds help the about to think and XX% the like you more maybe issues. taking softness? come my chain of – it half. resulting can somewhere for the just is us XX% as we was thinking back indicating

Rex Jackson

Yes.

if perspective. go see so, then the is this effort a you you house, we product the stuff PPV/logistics – of had higher-margin when from one, had we of dock our the what get through out – quarter. which not side And charges two AC, twice number will the is some this and an last calls So, had we have

not X on It shop little to quarter our well, doesn’t products. be sort do the there floor. may X in been anything points, bit do anything to – really. mix with model. lost of It each with points business that So, have do points have points anything doesn’t the even It’s have X to have doesn’t it but to with a

thoughts was where guidance product just And to coming to trying lot guiding up. end quarter get that of and as couldn’t our on would QX have our out to AC so cleared another QX of And upon recover from the range especially said, annual was stuff that an as to of perspective. get out, enough it, low dependent we we some

look the So, that have back, of we have forward, easy when that’s fix. external Head eases a pretty a we new it’s simple environment that so at Then we when question points of pretty Operations. get announced those think going we I our

house, from We reduction both the cost a vengeance perspective side are op the [ph]. with the attacking perspective and a of scaling

there look how can improve. forward cause I think is I to margin with this gross So, see go,

So, the we recipe. know

just have it get We to out kitchen. got of the

Operator

you. Thank

of next to go David will Kelley We now Jefferies.

Gavin Kennedy

Thanks Gavin for my Hi. on Kennedy taking Kelley. This David question. is for

any and seen and labor constraints. Is has One DC that if of chargers, your chain supply something from that competitors disruption? team so, on out issues the of fast installation timetable with your called which stemmed both shortages magnitude thoughts transformer that and

Pasquale Romano

our can point Whatever you and from upgrades when so you kind – take ports to X,XXX the things construction, easiest understand especially count. under it added charger over help anyway, construction you will of take our things active are way do we management permitting a I it perspective ports DC you fast – interconnect, is involves electrical But I in into while. utility

and may that products stuff, have a were infrastructure are the it gives there a for for you the deal that fact site that certain sold that physical literally interconnect, those design, all the where you They through particular those pipeline, past, in that essentially to construction, power permitting, use – proper at the and were are – pipeline aren’t usual pipeline, Now, But utility have means went the that locations away, required the at been so electrical utility, through site. the an – the – require activated. delays case if with locations everywhere. flavor certain for delays there levels a upgrade

the is have some see that’s broad again, the the feeding continuous very here. business do pipeline a engagement we of hotspots. And we top So, But funnel.

in pretty you is So, big quarter which number. that are come X,XXX seeing alone, a this out,

think just more our a the I it’s the also a and So, because as the long are you are top us. verticals and for in of business as of bit feeding ours, we like muted diversity of funnel, geographies,

Operator

you. Thank

We from at our next will Michaeli take Citi. Itay question now

Itay Michaeli

Great. Thanks. Good everyone. evening

we Just question think there quick from the the below on kind margin, quarter. think price Just curious any How of of quarter, about subscription at in outlook. quarter and came of there? forward? XX% gross should on the Is last that the I forward one it puts being increases and the takes going in kind flat in kind implemented

Rex Jackson

in moved we so So, mired I subscription question. non-GAAP. – to I obviously, our GAAP, nicely to question so have am perspective. But if actually It’s growing surprised up the a basis, the team. got I it’s you the on margin – QX that fair from with extent – a are go a by GAAP in non-GAAP

see a that you frankly, heavily, we company the good customer investing because and some in for support. differentiator just doing space, It’s are the We huge win. way pre-investing

accordingly. that people live So, obviously, costs the and are line item in those allocated

subscription gross a north net-net, and to margin energy are we continues. the went our by frankly, putting that sure way, make So, but of lot

Operator

you. Thank

now next to go Delaney will at Goldman We Mark Sachs.

Mark Delaney

do you the other Good think done you need the to to your margin Thanks you pricing are impacts or means When very can done taking chain or what afternoon. for some round feel price to continue things potential and you for margins, have you perhaps targets, that supply another term Thanks. the be do reach about you in pricing do that already with around? like that of you for much – to increases think you and going longer of question. these Yes. order get

Rex Jackson

answer didn’t shading Sorry, of not then in seeing question with reception, calendar the anticipating because begin the we TBD increases, of the is to another to to year the last further but think of did question larger, impact of catch one direction America price that And solution – the and North I end tail due we near-term are I June. did was a basic roll we through. just did are that in we on hardware but in the the we that early one the specific

We rest and it in half to have We QX QX. see of would of in QX. seen like about it the

and doing ease. situations that And lot the have of is operational gross beneficial PPV so on that a will are think logistics we that, PPV our And impact got and we the then improvements margins. have we a beyond

we I software. an think get going means, price for do situation expenses, we through automatic do right, versus just further costs increase have We where most We need can be our software traditional etcetera, increases. our to improving and like companies. on more improving

there. So, on escalator near-term. a in the in built increases, I price see table don’t broad-based one the there is terms But an of

Operator

I Romano, closing Thank that you our things hand concludes comments. you. question-and-answer And back will for this session afternoon. Mr. to any

Pasquale Romano

very They questions. I to thanks all, for appreciate usual I had very, team thoughtful at reiterate Well, just say, I it proud the they forward work in are in accomplishments us. to hard here wanted my know to QX, to year very want I of up first the ChargePoint. looking results. pull very XXXX for everyone off thank are wrapping but road only you and much. quarterly to their the of to our all for ahead the for not

segment in I and really, really maturity, a the in in this those think terms it difference base a will fleet some be stark my surprised installed pace will even adoption to things number very I have remarks, relative availability. you of of passenger – pleasantly board than I and with as of said manufacturing And models level all – the we been has both in and the across ago reach market. as cars reasonable think really it’s it’s the year of the makes

the we very, very So, excited And thank are again, future. all. about you

We will off year time, we you for see at now. last our and call sign the will of earnings next

Operator

all Thank great will you Goodbye. so like thank you, XXXX gentlemen, and and all much us would to ChargePoint Mr. joining earnings Romano. third conclude call. for that We you quarter wish evening. Ladies a fiscal conference

ChargePoint (CHPT) 2 Dec 222023 Q3 Earnings call transcript