Earnings call transcript Q4 2023

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Operator

Ladies and gentlemen, good afternoon. My name is Lisa, and I'll be your conference operator for today's call. At this time, I would like to welcome everyone to the ChargePoint Fourth 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. ahead. go please Patrick,

Patrick Hamer

can thank on discuss joining year full ChargePoint's This at webcast earnings and section the conference our of fiscal on call results. website and press being our Officer. This is full afternoon, to today's call Chief fourth With January call accessed you our afternoon, quarter on Financial Romano, us ended results Investors Executive Officer; the me issued which Chief be for our investors.chargepoint.com. today's release XXXX be XXXX, are Pasquale Good and announcing quarter for and Rex website. can Jackson, on found XX, we and also our

our remind We'd today, expectations. of obligation the quarter from call, which during statements first apply control will statements differ are outlook beyond fiscal call. our of you materially we could cause XXXX. conference These to including risks statements the many for that These after and forward-looking like update and uncertainties forward-looking results these the be and to actual management involve undertake statements, making our and as to forward-looking no

the Form SEC on to our For description cause filed results factors to SEC posted of today differ, release earnings on and the XX-Q our with please Form website that a actual with filed December X, refer and could certain detailed more XXXX our on X-K.

of Quarterly financial call finally, Investor call, posted the measures note presentation periods this website release to this Investors the we historical section. non-GAAP And please we'll transcript to under use Relations the our on in certain on website. posting GAAP earnings certain the our Also, of section for Results that we be reconcile which in our investor

that, I'll over with Pasquale. turn And to call the

Pasquale Romano

tirelessly ChargePoint I'd in to joining recognizing worked at for the marked energy team the Patrick, the evolve company public and here second continue the company, being today. to enormous everyone Yesterday you, transition. and thanks play that to our we like start anniversary fulfill to of us has a Thank to by role

a full I the for the on into results fiscal XXXX. us, and get the Before ahead bit what retrospective holds I'll for review fourth road of quarter year

XX% quarterly for grew while X another would quarter points last XX% revenue non-GAAP making XX%, our on sequentially, gross level margins record improving call the expectations we year-on-year our fourth and margin. to that company, delivering on sequentially improve set Our by

year below the year However, X% of quarter midpoint. raised million. guidance to midpoint below range The on by original were This midpoint were slightly and of combination short guidance X.X% call, circumstances. special full the full guidance the guidance that same we a revenue results $X was due and midpoint. effectively our below for revenue Fourth the of revised the results the

month a and American shipment have is persist decrease limitations The billings a between caused hardware the first gap missed during for that commercial just for norms. December; in eased, they the demand larger than overall of products; second, while lastly, North revenue customers we chain historical and some cutoffs certain supply

full the million. year perspective, in revenue that $XXX put To was

becoming Our business you leverage managed improving each And over last year expenses is grew operating see. XXXX. year-on-year and this the the operating to XX% in versus foundational XX% this achieve flow year quarter. through to positive calendar We cash

$XXX of through of crossing exceptionally are an subscription million. proud annualized We revenue benchmark

gain vertical a of ground outpaced all across European as these in globally We of as revenue. rate verticals. of the business growth company our in a to percentage also XX% Both growth major overall demonstrated the fleet

model. announcement our revenue with States through fleet partners, a of of were limitations our In quarter, critical results. good channel already is component these coiled differentiated partner, readily the of of on is Postal in with XX% our vertical, are significant even of United of historical A and vehicles pieces vehicle in ecosystem our Award a consistent billings fleet with spring supply, Service And over like the Rexel. recent example available. progress our distribution business the power are when our and Partnerships the the fourth the

as an is nearly essential years Europe charging growth, provides in emphasis and develop of EV years continues This to only North short-term in vertical every our of verticals Participating part this expect but COVID be both shift from also an strategy. across in diversity and of come. for resilience geographies. growth to asset benefited We not our and the America to in the this fuels face market

this of sense a of you well how and for center operate been the positioned an expanding in at are to give help highly that's where have We year electrification the the mobility. we me past invested ecosystem Let we you gauge future.

now the not just return. seeing industry, those are from accelerate indicates investment ecosystem, We auto And past multipliers. this that that force the point no the of is

to dozen access Partners aggregates major this charging partnerships the ChargePoint’s in Fisker where via a system app. in-dash and automotive America Some companion cloud examples, or this year. Lexus, year over include networks and ChargePoint live Toyota now all North Europe OEMs' added public has service Mazda,

fleet auto ChargePoint offer well. for OEMs our as to OEMs dealers home many their charging We charger us needs. Additionally, added partners recommend and their numerous as

provider UTA, and the We broader energy fuel partners. management. added partners other payment the platforms native a to European Stem long as our iOS charging Android as to work into enable to Google and integrated continue car site-wide list We to card We leading of experience. added be well with

grow our these for in We to education platform our an network partner continue support and players. installers as step key and launched for creating channel our mobile first application

programs drivers. market. experience enable as North Mercedes-Benz to a NEVI create with road ensure and to announced to XX-minute EV such as serving as brands to with barriers with remove charging partnerships we well Volvo America and Europe for economy MNX and in to shape Starbucks the fantastic EV retail and Energy governments and continue charging lastly, the a great policy trip vibrant consistent We work and And

X/X and quarter in general XX,XXX management, customer finished We under the overall ports network, under just ports, of over our to over statistics. environmental active with with XXX,XXX ports Turning DC Europe. including

We also over our significantly EU customers and call XXXX to our over ports with existing the for XX over from of XXX,XXX historical XX% Europe, of strategy. and We with XX% those offerings our of and strengthening access XXXX now XX% XXX Fortune provided XXX,XXX ports [Cytos]. billings customers land-and-expand consistent drivers in of Fortune norms the roaming

greenhouse quarter, approximately and miles has avoiding over the of emissions. As gallons gasoline estimate of that million billion of million metric XXX of the now electric X.X cumulative X end our we network fueled approximately gas tons

of driving cycle. as we rest an ecosystem inevitable position the space, operate but the headwinds near-term long-term the we've seen, are model, facing capitalize differentiated clearly what momentum of many the our of were we us the to results only the and same business growth is not While in which on

our are proud year over I'm team trajectory and partners made ChargePoint the on this heading Together, positioned the market who uniquely opportunity, into possible. confident I'm we and are you. to of this pursue Rex, right we this remarkable to year.

Rex Jackson

Pasquale. Thanks,

to include charging subscriptions three revenue lines: non-GAAP hardware. to our reminder, other. or please represents intangible we and services, our of along acquisitions. network reconcile our compensation, Network Also, and that continue principal results we of cloud systems, to stock-based a GAAP, hardware. systems our charging costs release to assets report restructuring connecting Subscriptions earnings amortization connected related where certain exclusions see As and our

ChargePoint assure certain subscriptions. bundle items. credits, Our service our offerings revenue warranties and professional energy solutions and where recurring consists the is nonmaterial our into of we Other services

guidance to supply product the year-on-year at also but our was lines million, lack at revenue significant to to systems shortfall fourth revenue $XXX to principally third availability of but expected softer results. was of than was Pasquale not and range sequentially, quarter Again, shipments with commercial $XXX XX% late and contributed. fourth North quarter the strong up as as previously $XXX A XX% Fourth announced quarter DC our million, criteria XX% the due our Moving noted. million from Network in hit XX% linearity to million the revenue, to American sufficient year-on-year to meet issues better, force too quarter. still charging cutoff demand sequentially. $XXX up the XXX% was and quarter ramp below of

revenue $XX revenue, contribution, in quarter and total XX% XX% up million line of percentage XX% sequentially. with was its third year-on-year Subscription at

in but $XXX largely quarter values million $X was X% third XX% at due from credits. end Pas of mentioned, revenue, finishing as Importantly, increased run of XX% quarter. decreased rate our Other future $XXX was significant million the LCFS total of recurring this million, down million customer milestone annual quarter, grow for deferred revenue nicely, this line. Further, $XXX revenue existing of continued commitments we subscriptions to hit a at up representing the revenue and payments from and sequentially, from revenue to year-on-year the

Turning verticals. to

versus perspective, delivered expand. fleet XX% was XX%, for last the year-on-year Europe XXX% XX% fleet continues quarter as report split. less which North XX%, revenue billings business the point approximates residential and XX%, year. business several geographic other a In billings our a revenue, Europe them fourth in From We was at quarter, X%, growing and continue representing XX% gain to quarter from sequentially. America revenue perspective, to European $XX our commercial percentages than fourth million a were Fourth

ASPs with costs. at Turning the this was third particularly as transition product XX%, were up Non-GAAP reductions, fourth XX%. supply certain higher from for quarter more headwinds and incrementally to chain than lower quarter margin. gross margin pleased the cost progress gross We offset

a from during of the the fourth X%. million, $XX operating a X% sequential expenses we year-on-year quarter a chain increase supply drag X-point and were increase of Specifically, for impact Non-GAAP saw quarter.

fourth compensation We costs quarter. in achieved that annual and continue carefully our was XXXX, earlier introduction were cycle to be the quarter Stock-based will in several $XX new manage product refresh fourth in in the operating our fiscal lower quarter. Recall key expenses second releases million. with product

used in $XX end equivalents. with We offering had the $XXX quarter XXX Looking million, end the our finished and December. the the we of at quarter At outstanding. third million shares we the raise of than or at-the-market cash higher million program at slightly million fourth approximately as to ATM $XXX quarter,

of Subscription year-on-year. Turning balance was revenue was total XX% up Annual the revenue XX% charging XX% XXX% X%. of million XX% of to $XX revenue total year-on-year. year-on-year. systems represented the million, Network million of revenue $XXX up $XXX or the and Other and year at up for year.

for verticals covering the billings vertical. by Quickly year,

from full our fiscal in and in $XX particular XX% year-on-year. year, For full delivered outpaces business year fleet. revenue our overall fleet geographic revenue, XX% XX%, quarter XXX% million Europe fourth rate. In as and XX%, European a other growth perspective, we're was From the was the XX% X%, residential like XXXX, America reflecting Europe North strength commercial up

DC XX% our quarter of for operating XX%, year-on-year the Non-GAAP mix margin supply approximately are gross in year, previous due and and point XX% delivering products leverage Turning were we below the the the to a went as gross year for fourth an margin. and a the as impact. a percentage year XX% the to for first expenses chain of percentage revenue Again, Non-GAAP quarter. original XXX% was targets year. million, improved to X from of well down logistics principally increase $XXX non-GAAP higher operating focused managed from on in expenses operating to

original path kept our flat spending to and of expenses to to essentially quarter each XXXX by our gross OpEx responded non-GAAP maintain quarterly year. less margin annual in profitability, million non-GAAP $XX To fiscal operating the shortfalls we relative guidance

guidance. to Turning

We gross estimates guided margin our greatly across the last As a revenue, varied this on too know, because from company did all we and public we you expenses. analyst full for and were expectations measures. operating year newly these year

not estimates. this we far external at and look necessary dispersion annual fiscal XXXX, we is believe guidance Accordingly, year. As there's less

of quarter increase fiscal million, to first to $XXX year-over-year of XXXX, XX% the expect be midpoint. the For a million at we revenue $XXX

the the As typically budgets slows to see seasonal quarter reload [Cytos] first in from a in you at may revenue winter. the recall, and drop construction we quarter fourth

contributes our addition significantly seasonally of annual two in keep our than mind from lower the that being through revenue However, four. first down a in historically to quarters percentage quarter fourth quarter,

gross in and continue chain margin we newer to other cost-down we efforts year products. challenges of volume as on continued supply the ease, our expect benefit this On improvement measures, get sequential continue

on commitments growth quarter the the operating Regarding in year. with positive passenger of then cash flow this Reaching in the in in North under for these the year revenue, improve are quarter the cycle. of fourth position to next XXXX. expect through we company fleet at industry's by Bloomberg EV Europe, Advances and early should leverage the our American year be but to turning key the and metrics first expenses, to milestone well under to lower X% in balance the lower in estimated X%

Q&A. to move let's Operator,

Operator

go [Operator Colin to Oppenheimer. Rusch, Instructions] first We'll

Colin Rusch

variety seasonality to this out year the of And revenue to into first pens in the dig up this looks XX% see about of what your the happened a because like guiding we quarter bit industries. you thinking say to of a balance how it annual of in piece And of it's wanted I fiscal of little end here. the I trajectory as you're something year? seasonal XX% of fiscal the visibility into your guess what the you're and about the year. about you can and XX% balance of north backlog revenue throughout the the

Rex Jackson

thanks Colin, question. for the

Qs QX company, remarks, for So to in look right? I you through you as our if a percentage percentage a with in So the growth a the prepared said two just up at we're QX end four. outlook, relative it's -- lower

successfully extrapolate, you I think, there. So from can

models guys can that that's our Looking at I performance, you your something historical do. and think

backlog did historical a in QX actually we burning perspective, of nice job backlog. some a off From of the

As don't actually a the company's backlog a it quarters, prior virtue. people's a to said broader business, and a necessarily expand we've the think continues want we become we're particularly of then door out business, as in maybe land hands in backlog product but changes fleet and the not part that we business, and that ground. We're is

we down. So for off through we're a it we're that QX. QX, to backstop going a year. It's decent next going for burn nice to backstop work as but that And was go

Colin Rusch

part texture the of customers of of first into you Okay. terms existing little velocity land And as you're decelerating and year? of talk of now, about the sales accelerating of adding incremental the that part seeing it's a terms you're client in or trends the right engagement what in with you of get and whether land strategy customers can expand just this in then into bit the the terms that

Pasquale Romano

in point easiest was to you in rebuy ad that historical answer our that revenue norms, which So with a to is of quarter way the the Colin, rate The prepared statistic percentage customer I consistent is a holding. remarks. the indicates as think rate our at very

there's to no color further add. So

Operator

ISI. West, from hear we'll Evercore Next, James

James West

you, it's have So shipments quarter. Rex, because your it a clarify for Rex, -- so question guidance you if revenue those for have to a gone the -- just your versus if question out shortfall you're still you because or to the just would a within get even revenue, going time, in different above at comes it range been not guidance not really time? had

Rex Jackson

I that's Yes. blended thing put I a semi-trucks -- we would know the be the accomplished of most is a actually I the a and mean pressure So good we don't QX, number, of QX uptick, it. to sort say were big at But right? lot the end the of I think quarter, from ourselves question, first on the but up of block. around

a supply ran the trucks out DC then and the gas either from that of from a built on So chain back-end issue because the on products standpoint standpoint at of we linearity in of a time had fundamentally just quarter. getting end you

we yes. made answer would So it short have is the --

James West

Okay.

versus very business existing Okay. sense maybe customers, Got it. up your you with much and customer putting to helpful. And engagement for Pas networks? charging another right stations customer for then That's charging is is of a adding the now, your have their do new how question customers

Pasquale Romano

deal just About was that's in that. different Colin size of a question there was quarter the think that customers, I and mean the I Yes. new anomaly asking asked of XX% way same previously. no

add revenue consistent new if historical the the So that. very consistent rate is is with with split customer percentage norms,

Operator

question Gabe Daoud, is next Cowen. Our

Gabe Daoud

the side. margin on Maybe just starting

XXX on the just improvement year? improvement Rex, of like assume sequential continue Could maybe with showed are the basis give margin. a non-GAAP there obviously on color turn and of us to a the the trajectory basis. respect throughout puts fair it out to of Is point bit some you, maybe and sequentially to little what takes You rest maybe you

Rex Jackson

Yes.

non-GAAP, driving in we work as you at as XX, XX, look through at The XX or year, been chain we're of the hard thing X terms high if the at supply and year of and has So forward. were that course, X. XX

bank one like favor meaningfully We it's but is DC, that Now the helps. fact X not a it's year in of standpoint, do. margin shifted that this good through resilience the highest more we which mix that from product

that cost So we did and upstream delivering then come manage meaningful increases to up the downs bank year. price those through that here margins nicely last have we and

So mix to other add being to factors to number. makes are all hard contributing the able it for these

I will go did lower QX, the for the next the throughout in had to But look Therefore, expense to right remarks, and margins prepared going QX. [IG], in two, way gross you my but wrong operating year, I note you leverage way year go As Qs four. is we sequential in gave improvement revenue the three say back next in the next year.

X, I like a X progression year. number is or it steady can't a is do wouldn't don't be it or I to on going it, there's but next guide, think know So put

Gabe Daoud

Okay.

That's is helpful. kind Is are Obviously, that with like Could think lot less well? comment maybe as maybe XQ? issues been a demand maybe, that? up December. on about at your a just the just bit to mean seeing then weak California Or into you bit all of you demand little seasonally tech strings a us And a creeping of customers giant Okay. help tightening going in spending. setting Pasquale, seasonality? concerned around that in I your

Pasquale Romano

Yes.

in time made remarks easiest overarching that you of comments company. put revenue way had prepared and is to the a blistering my the get company. overall already was over on as meaningfully Europe color percentage has in So some the a think some year-over-year increased -- that growth remind outpace And I diversity to the I'll the it about what for rate fleet revenue. percentage increased on I

very that. just to hard managed America, growth core we business, that So sub-segments a to and like overcome which do in for it's in North the fundamentally is very rate mature

we when rates some timing And so in I attach the softness to see -- put do a businesses have what is emphasize stance when that respect want charging, to discretionary that's to and around leading of the eventually, they with effectively more this, prevail. they in

Europe, delays fundamental no And a the at as so the some but you hotspots. more We than there's in in seeing just it delays see with don't in the shift a set we so effectively in with increased of are see the it of respect America ordering, verticals to all. aligned business spread, with North as resilience macro or and

you make you've commercial, in meaningful look those us geographies, If all the residential at when business, you fronts. seen look fleet, the at progress

there's if a couple an while have the verticals, really I'm that overhang pleased economic because doesn't that significant the in otherwise. So of comment would I case, any overweight were definitely business very

Operator

comes Bill question JPMorgan. next Peterson, from Our

Bill Peterson

locations that I would the ask of really wouldn't noise. impact talked DC about apologize your would on outlook. Level the I impact, any of and cash said I background store you think maybe to just wouldn't flow thoughts retail and think that -- like but fast. be for there were front lot or for a have a feed what I a work areas it around home maybe wanted some large verticals, X restaurant. you

exciting of Pasquale But it how maybe that companies of in that terms course, the the have subset play understand Just networks, car of competitive trying Europe environment, yourselves. threat out? could other to on

Pasquale Romano

Yes.

got several I And I in no, often. fact, on previous get calls. the think earnings question I it So

fast sector -- car It's response market range. you're the narrow battery is very driving in that your case. to serves So beyond for a when passenger overarching the the use charge

significant is our it driver for not revenue. So the

field of with embrace completely in excuses saying fact, in can also a that It's disinvesting Now that's It's to trips retail electrifying We're that that moving Tesla refer one their lot let's multiplicity all in investments XX-minute a sudden on confidence XX-minute given EV of right serve opening the cars, direction right seeing OEM making a any we not want at because now. now economy, respect their offerings players in road traditionally down start as their has ball on economy tremendous from now They're be OEMs. they players or people to market in retail what the with up you're shown own ICE they to the up. the broader either. network to move their not the properties. the the attention

massive with a announcement, placing have XX-minute fast we two opportunity made that's aligned this Volvo, So continue. going you year, along retail to into and to we see see announcements this worked And we economy respect think how chargers of partners. as network sort Mercedes-Benz if a with

Bill Peterson

Yes.

about but fleet should vehicles. like opportunity in we and uncoils? fleet part guess, opportunity already this, the but about this spring you a know through business, as of signs I that meaningful seeing how this the coiled we've of your accelerate You should to any stream year? think a I are lack And talked it's your

Pasquale Romano

limited buses, basis, lot a more So side, passenger land is a that it maybe rate it's has expansion about how we've percentage fleet that in with the of the cars transit now. diversity I right globally. availability won mean, customers have small honestly, of the vehicle granular from within count on very we are while but you severely are business OEMs, fleets the a commercial vehicle buses that because more fleet expand increasing should represent exception and than doesn't think of on transit

if get going a just you're see break, example, cloud to earnest. come respect that's the with positioned large to to spring vehicles get see look hence start for and we're United expanding, follow, you base decides USPS, more in get so starting the has position So States that in with well, announcement when can the they're very actually than -- coiled the the good manufacturers you're to speak, we can expand. across our those actually expanding fleet when landing at but if analogy, vehicles made And you're to they to customer from commitments to vehicle

to So should balanced a mix, of land happen, like start as acceleration base. within going more think that things an versus as you're our I in . customer that to even much result expand -- revenue see and it

Operator

Next will Sandler. Piper Harrison, hear from Kashy

Kashy Harrison

me. So for just the first one

million improved liquidity million few investments, of So in the cash position and million. a $XXX short-term $XXX

$XX you offering. the the had Could pretty And utilization driver the liquidity you in we behind strong already behind should maybe given the ATM in speak million position the thinking the just then future? to the about that? of December, be strategy talk ATM a just how mentioned You before that about like strategically ATM

Rex Jackson

Sure.

I yes, ATM mentioned, capped December $XX definitely in as So for we million. the

is see, things profitability, rate. continues strong sheet, zero to as I burn hope you path two we that call the the able company We to be or and focus something of to over about be very that map you that's super keep been, want it, over whatever One talked adjusted need getting growth And it way. when to next it, want important. that we we it's we've that call what on meaningfully going because this time to paramount decline you that the the call to and or across over a a it, year to that's would EBITDA, for thing you is The the support to have strong business. balance to

based line and it, the best we we the stay we is and need I that have industry, -- would circumstances It's then will think need -- just a use balance to and think metrics a everything else. -- need there. as address on from that sheet to decline to over opportunistic. in price relative maintain but those again, bottom I strong it's we time line and get bottom and timing So the the better And

keep going So it. to an eye on we're just

Kashy Harrison

Okay. Fair follow-up enough. my question. And then just

for think prepared As non-GAAP effectively you of from sales, as percentage well? flattish an the flat Or pointed 'XX is expect I all the you out remarks, about as XXX% in operating inflation. again? strategy -- of XXXX Can bit Should the pointed out, calendar $XX wage there's held and you both year and expense you -- a as to the expect business of million your in a we XX% talk earlier little should also growing year. uplift roughly down OpEx the OpEx we

So on some OpEx thoughts would be great. just

Rex Jackson

Yes.

answered of your sort question. You own

first be revenue, operating fact were an seasonally it's wrong yes, way an uptick uptick QX. the going to expense combination is on will we're in QX our to leverage The for in them relative So there in make The that lower QX of QX. the the full or is impact exactly new in just you three time -- the in then drivers cycle our But It's four said. now -- have we'll rate quarters. got and what we've of annual hires are QX. in

very, So increases will in very year. view -- a currently the is drive main uptick of sort very bit. there's throughout modest those you'll doesn't what it this up components are see a series keep and that a QX, it of then is But doing the that QX, our QX

in higher rest slowly an uptick for So of take and the QX year. the

Operator

now We hear Jefferies. from Kelley, David will

David Kelley

was us momentum I if on update you could -- maybe hoping to start in Europe.

last growth in year. EV coming meaningful fiscal ramp delivered the robust really You a of penetration off XXXX markets really and

are how pond the the So regional opportunity in thinking about XXXX? across you

Pasquale Romano

North perspective. sales we you new it base a off cetera. I'll all the just we differential projections, you penetration installed we've in frankly, bit calls little serve. in model, the We same our in factored with identical of is car think driven of America, net about product way said, opportunity business earnings the North by, car said that it a think new the is on many and remind new at But car strategy Europe offering, that modeling, virtually et it's from in about in in as driven to as the America our respect it's root vehicles is the And markets forecasting and in by differential a

kind You sub-regions. about sub of there the had a in question

markets in predominant serving country, every in but Europe. are not the We're we're We not ones are small. in

we've so been we're continue able be the we was be of assuming no should successful are There with to the that successful line previous entire Continent we across that to the And real difference. just Europe, on year. with product

David Kelley

That's quick that to it. should And seeing improvement here that guess I the Got lessen think XXXX? margin supply into then chain headwind, QX And X-point about on I the Okay. fourth referenced, continue one relative you we how to date quarter? follow-up you to situation. helpful. does are think

Pasquale Romano

Well, on we've one. no no times, perfect has a mean, -- I said one ball many crystal as that

repeat So supply QX narrowed chain with taking a vigilant What crisis. -- have the I we're considerably have supply of and before doing. chain maintaining experience the hotspots the that can to in is now what we is said respect from stance our based peak what on

at all looking have have strategies a gone. that you mitigation management supply with over build, all the set comes into availability fewer quarter call easier year, to number too you of it's supply with that components hard around right smaller it's to lot we The can problems of may still couldn't still limits put but So demand. say exactly alignment in certainly And of And a it's of now. problems. we that what hope much of your our a bandwidth issues we

Operator

Stephen Gengaro from Stifel next. is up

Stephen Gengaro

me. for Two

is of Am year seem not full Rex, guidance. think correctly? tight, relatively the you that by about you first, to But you're but sort numbers suggests consensus giving me how comment. making year -- it that the mentioned for full thinking consensus The that I reasonable

Rex Jackson

important their why make models say consensus. this. said chuckling I believe What and because then analysts just I is develop this I and was, on judgments I'm distinction, did not based an they

and going use This this come is to think the be worse be to is going and better. a dispersion. they conclusion, word I we to

fault who that. year, a us have do guys outside last of I public to Last be modeled because and the their to we're year newly company you from wouldn't expect no able through could own

place. So the over are the numbers all

improved felt their help like I ability So to it But the and the conclusions dialogue with we the centered. analysts I understanding is should to needed of own get think had year be what form outlook and last over about business vastly versus people's last year. the their we've

right just be I just of the having you I are And so where think I -- is XXX% the think you answer. -- author

Stephen Gengaro

it. that's No, Okay.

could and some there? that program how positioned your add years the is from you color you how over couple I next question strategy any and other and on to The if thoughts curious of benefit the was NEVI you're

Pasquale Romano

It's unlike as in state. It's at a many approached that corridor-oriented other program. similar program, the how look very by So implemented we not color. we each are NEVI programs

So take to on each has its we're and state federal that. guidelines the own quite used

program. policy Our team helping shape been and has the in instrumental commenting to

what customers. So broad there the think to our the customers is of platform it, able offers of is that's range advantage broad we to be of key our for a a good range and take it

approached it? So operate we approach and ourselves don't programs in how we past. how own we similar and do have stations Because the

customer So deep and this not analysis. do it is a potential our all we future look approach is current and into base base our we departure customer --

cetera, et bid good thereof internally, partners requirements deep this that they utility have between availability of the lack are spacing, analysis we capability of a put have available locations, into And We state's jointly -- the on and the construction. we capacity, ease together correlation want chargers partners we look set programs. construction where of of in exactly at or that

those how there cases, programs previous we accessed that already see are seen basis. that, many Ohio technology. And multiple in we've -- similar bidders in our that that's in we already the because bids unlike that do, expect and are And had past. have on again, not a based -- structure on to go-forward that in We've

et into of can the we're behind the technologies, a the So collection cetera, organization sites, go sort kind of of players bones that of bid.

that's We approach we think the for So it. us. works how formula

formula this importantly, and advised to good locations. in board be food XXX% some alignment, There good What needs et retail, for it could services have be We be states things statement locations you these or federal isn't where most because government across need the well on not is we've think brands, both appropriate, cetera. with has quick-serve the aligned that but to works to drivers. and

more create to our drivers EV the enables we So accelerate, which for a adoption more business. experience and EV and enables because balance of vibrant enjoyable that

So about we it care deeply.

Operator

Davidson. We'll Summerville, from Matt next take our D.A. question

Matt Summerville

kind higher. and from or too, year, hard reduction of realizing the was just midpoint, have maybe XXX QX would more But sequential year QX a why at amount it Maybe guess to maybe been helping. actually I to having QX down the I'm acquisitive whatever of kind little of of a there's nuance to bit help. with QX million moving XXX a in was last slightly, down understanding that follow-up a there? to there, really a But I time have kind here. a roughly of $XX historical the we QX related work acquisitive Just know on data huge little seasonality don't prior

Rex Jackson

consistent. QX. thing the history back fair to been low very question. time. private I if unusual We've in as The lands. represent you the things was year with Last like a you first consistent. been would in is as company That's go have One, Two

think that's for for happened. years X I sorting

year's ourselves which of is reasons then, always I It of what we're we percentage. don't as we just this QX terms QX lighter. know we varies surprising. is And a dip you the in of think used extraordinary as or QX think to. growth It's to And company. kind for So from know, explained.

to when go, look and year would baseline and that pretty grow from allow QX in at history you take it you decent our that's that There's a there. extrapolate. for and does So the okay, how information you

the guess, of is, not by I'm I it concerned So QX. net

Matt Summerville

actionable and technological Do or pipeline? think sort you next are so? thinking be sheet, fiscal to portfolio? balance the your M&A XX otherwise your in How property thinking over or of add of intellectual You position the course should to maybe what be about kind have we months portfolio the over looking things the we innovation, should you M&A that the of how be 'XX may of about about

Pasquale Romano

mergers acquisitions? referring to and you are M&A,

Matt Summerville

Yes.

Pasquale Romano

discern Yes, that. I'm sorry to

Matt Summerville

partner We called have heard we a MNX.

it Please heard way. I ahead, So go that Pas.

Pasquale Romano

services is deep think we scale yet the are emerged way do fact very, like. with to where And -- pipeline. interaction the very I've at that that to we to to core put is a customer and that things to the that technologies deal good ongoing have remember, through acquisitions before have very built not some streamlining necessary in enable look to to of remarks. What product customer on ability have the we way the technologies the well have that and we channel. have the with we the in very, The all about exception we we so of portfolio -- few out commented have that have my references a the very R&D is resources -- our now that And lots due Yes. deep full in business R&D rebalance we portfolio a -- stuff channel made I technology onboarding,

perspective So an a M&A as a basis. all result, need on we don't see deep from at a technology

The look M&A customer is at way we capabilities. acquisition opportunity

good a is on would and it. lens customer it we're low practical base liabilities base there's a really installed that certainly integration, if the the lens. So we it's technology consider at a But looking from not with that's

Operator

Mandloi. from up Credit Next is Suisse Maheep

Maheep Mandloi

trend should have on Sorry in the may higher you mix sorry there’s expect earlier. margins earlier this if Can year, missed we this as about this I specifically we should think the I missed how continue about -- this have QX just through gross a DC, squeeze and your here? of you I'm gross margins. if talk

Rex Jackson

Yes.

last front. is, improving challenge, -- was on DC I DC year as things historically first so So actually, markedly are think I the a mix earlier, said we thing but

from it's to that a small major brand a our new volumes. less things there's that volume Plus are combination to of new going be Express is reductions, better. make cost problem. So going of And and But that's very platform everything

number supply be the going throughout but any was also side ease steadily year. it, progress of disappointed have given said the -- down think so going I put if on a it I I in that or severely quarter. it's think to picture is would the We continue chain flat to haven't to just I

but continue -- think to initiatives the positive that is up operational quite outlook drive we I lot can that a given company. the in margins So our this sequentially year the we of have

Maheep Mandloi

one about level prime maintaining you. balance question, sheet. driver balance sheet here at just a Got as Kashy's the on healthy ATM. for On And the the talked you

the the that, metric characterize about or balance is some could how of to we you -- minimum cash like think if about like curious it should Just think that? a

Rex Jackson

million I Honestly, number mind on a number, but number. haven't stone fixed haven't that. the I fixed the I don't $XXX in

the now As nice year. loss business, our then other -- positive to look at And cash we financing flow nicely we opportunities. expect we position and continue the decline between quarterly thing is may grow next to

And continue and we to it where gets company going today, think So to kind there's you're now. of the balance are a I bigger a is balance have to that's grow we there. meaningfully sheet. it than want decent But if

but we that's maintain, So a pretty we're and maintain that how right good question, do spot to now. the what we in

Operator

We Oliver will take the Huang, from next TPH. question

Oliver Huang

details get Just have to back over all wanted quarter try or utilization of the to had one to sort today? ability through unconstrained Is of itself backlog close you remains how at and out about that factory, but just around and to an these relative weighted fairly manufacture at how progressed still kind a capacity there towards the what really smooth charges build of get progression a the started end question, full is given something the -- multipronged thinking quarter? that when sits your it cycle think I update of more to with past

Pasquale Romano

from the second question We I'll first. part perspective. So of external contract take that manufacturers build a partners use as

So not here. utilization substantially factor use broad capacity is capabilities. capacity that We have of a CMs

by an upside build to to a respect in not coming access is we So perspective. lead that linearity, on have times. speak. adequate see the in capacity factor manner. And smooth factory from to a With because with we'll largely is financials capacity factory not the issue linearity previously need supply our chain getting excess much and better build now lines not was driven adequate It by a issues, build parts, to assembly mostly populated kits linearity was adequate driven so our fully and

improvements because our investments And I crisis management, staff, in our equally think build. not chain has the linearity dramatically that's CMs, supply But chain improved importantly, our but the of in with out. supply own smoothed process certainly only

the It's continued -- much Rex limitation I'll a rate that's on growth less So rise. that and few the rising. limitations, is ceiling make of commented keeps has the while just hotspots to With last continued factor a comment now.

that's which to So doubling exceed -- effectively, given if I'll our very that us, limit mitigate look few limitations components we have remind And growth prior. have That's the some rate consistent to at did limitations you're year-over-year. is had maintain you, And a on we year but you rate. also issue. to growth quarter-over-quarter, when because what we we huge we quarter a a a

we we're it You have growth into mechanisms do a this that, going think in necessary overcome better which do putting to of the top year. on to and rate all

Operator

next go We'll Steven Fox Advisors. Fox, to

Steven Fox

in mean, After made question. remarks, prepared progress I on lot year. you one the of the ecosystem past had just the to a listening I

you lot that And major names, piece customers line at a margins, would et cetera. I and of you with this on to land adding why time how expand on opposed curious basis, better curious of so a and the the react not with customers do established scaling just and helping maybe also that was question. improve point, I'm to as smaller expand just more

Pasquale Romano

by, it again, in vehicles. rate cost So is the margins. because And to a piece expand sales with the of the attach doesn't not component is improve margins limited

Also, in effectively So customers in to with serving at -- within that not an new forward, of lean geography. pays our push dividend the -- net to customers, lean the you the new you any we're to can't push them past can't They're pays if sphere that going boundary. the degree. vehicles And the in they're dividend going arbitrary expanding the we utilization the not look forward.

the low our a -- future take do a On since historical to for to customers, growth. And rate. asset and an want have We want that's incredibly we stall don't we churn been company.

add going customer emphasis emphasis. a We're shift that not and on going we've the similar proportions before. maintain between new in to to balance the had expansion we're So

on something of the company. good partners. the of beginning an the deal sides in are That our our ongoing in I in was invested one of The one. basis both will tell distribution and USPS a over expand. is continuously. we've It's since that remove with really the pressure that that. equation, you co-investing time, should, helps And deals that lot the improving conjunction And both land of a that sophistication on channel partners it big done was have like to

Operator

Vrabel, hear will of now from America. We Bank Alex

Alex Vrabel

that I cash in background, element inflection. however I'm get guess sort the and back idea doubling trajectory OpEx helps I you 'XX closer guess, will. sort to per Is year, line? about the . time there, just of waiting when the unit that that, given follow fleet lower into or like more of on expand here leverage, kind idea I this into S&M that to coiled spring of landing we I guess expanding Just about want as guys this or mean, sort guess, of out the of you an the to you think difference sort up early if sort think you on growth. this later I of one operating story of into dormant thinking that's

Pasquale Romano

about most to So referred -- fleet the customers it, for effectively as think in vehicle fleet the the potential because you untapped way part. we in are our the the limited

in it an a commonality of of I before, investment to verticals respect we from balance the perspective different has we because that fleet lot As after a with in in also go the the balance geographies. the can the afford mentioned context, of but OpEx investment in the

incremental, But different with in. hardware that fleet-specific some to for same we the hardware even are platforms. invest incremental, platforms, there Now very sometimes it's features have same configuration us,

with going I am this? where So

the that everything G&A, trajectory we sales add We revenue. we on R&D OpEx, we very the it's a that's company is putting in of the marketing, just think it showing this everything different to from leverage weren't is the over and phenomenal because Operating year. is peril year trajectory as closed, pretty

larger is improve scale our a year. we're to investments fact, very making think at some great this In to strategic what experience we even customer have ability long-term

year revenue down QX closed, directional that we we in company. because made will continued that the the through just notable a So year the the you from for exception continue that this and one perspective, Rex in saw things think is seasonally

operating quarter, similar year. that you or small see in leverage a one but in to a in may the return increase in normal You previous retreat only should operating leverage saw that it

Alex Vrabel

downstream on, Got outside we of control utility sort of that in the that's constraining would people's your that sort hands, of? think thinking clear. I little of is getting a it. And just sort about rate hampering Very that's sort beyond anything vehicles outlook of that's should you just then guess, you growth of I'm there be generally, utilization today. or anything like of the interconnection, guys abilities aware your about sort

Pasquale Romano

it's is you how and that circumstances model to question to interconnect certainly the the there? spare a utility trying much delays the good interconnect depending are because there. one, site, are of very the So they hard right, utility do with And what and site. vary is capacity on

delay the because ports which order But they ground. are you we in way some up need months goes have today right, deadlines instances, show actually ship product we -- do utility it and see on under a do the I you it an management, should but and interconnect end, what to and projects think pipeline think effectively sold is the ago normalizes then gaps, long coming a the we active see six actually We into variance. from actual pipeline What result it that we it that variance. about of is until initial effectively maybe can't see out activation, installation air the the no to big with shipment

if delay sort new see already. our at kind That it. the of delay you is of look can and shadows numbers amount some of the of into rate, ad you port So built

Operator

back or closing at hand time, And are remarks. conference there I'll additional everyone, this for any our speakers the further questions. no to

Pasquale Romano

time your for Thanks today.

Operator

that for participation. And ladies you and does today's your gentlemen, all conference. Thank conclude

You disconnect. may now

ChargePoint (CHPT) 2 Mar 232023 Q4 Earnings call transcript