CHPT - Earnings call 3 2024 | ChargePoint Holdings, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon, ladies and gentlemen. At this time, I'd like to welcome everyone to the ChargePoint Third Quarter Fiscal 2024 Earnings Conference Call and Webcast. I would now like to turn the call over to Mr. Patrick Hamer, ChargePoint's Vice President of Capital Markets and Investor Relations. Patrick, please go ahead.

Patrick Hamer

you ChargePoint's us earnings third thank call today's results. and discuss to quarter afternoon, for on joining conference Good fiscal XXXX the Officer; call are This be Wilmer, Financial our website webcast, Officer. being and Rick Khetani, investors.chargepoint.com. With Investors Chief our President on Chief Executive at today's call our Mansi section on and me new of and is accessed can Interim found the on issued that a management Investors to can press quarter for ended statements. forward-looking we results which like October be afternoon, will our This also during of announcing be the section investors.chargepoint.com. We'd call, website XXXX, XX, release making the at conference you remind These beyond from differ forward-looking of materially many and risks expectations. results which uncertainties to our our statements are could involve and control cause actual and as statements no the we These statements to update call. today, forward-looking undertake apply of after these obligation

new our section. we call Rick of the to With within more this For in XX, website. measures for and in and Investor which of And results the refer today website differ, was be Results please which detailed our use reconcile we a certain Form cause the on the our our SEC my X-K. Also, with we was could periods transcript section GAAP filed this finally, financial on on of that, call, Form And certain with actual certain pleasure Relations note investor a on earnings please on the Quarterly factors our release, to Wilmer. and historical CEO, filed our that SEC our non-GAAP to earnings release. description introduce Investors to presentation posting posted that today XX-Q XXXX, September to posted it's website President will

Richard Wilmer

call the months Chief CEO was myself. this. have prior Officer Thank for November by I'd name ChargePoint Rick Wilmer this I XX of Operating I the begin you, My company's been and is introducing since like to Patrick. XX. to

capacity, product I benefits. Of secure I manufacturing key is a savings served qualification have as company's responsibility structure, enter sourcing This new millions has new XXXX, rebuilding joining I cost predictable fully ChargePoint, process model led sources my following: and the me. Since will assurance, you note, and begin am the have multiple to which optimize rigorous our more with is strategy role, point CEO and we sell. COO previously introduced realize am quite than will and as Southeast a assure their tariffs in for online of new once, reduce support. familiar I supplier the of to revamp of includes factories can manufacturing the a multiple cost exceptional So more that deliver This not the every dollars to in to care for business. management. entire initiatives the we supply at including be deployments in and of This prioritize particular to number aftersales customer which I ensure program. Asia, to improved in I

the and our we find increase sources in towards shortening it and our point consider our of our defines station increasing this important all predictive all manner this incremental feedback, response am mobile we currently them. growth especially station since to monitoring. At before multiple is any drivers the leverages for is uptime are analytics August improvement dispensing anomalies stopping percentage support network problem, challenging driving at improving exactly of when This barrier or EV to station our recently customer that scale with to of the physical while cannot insights. This as leading It's total a operations costs. I that most damage It uptime, moment. a ChargePoint have for a of to to to are a not thus the when driver operations what is time, given all our many ChargePoint XX/X metric of also and of service, success center. enhance calls launched without detect network app, mean. We ports an up uptime believe center increasing line communicate this listening, then make to social doing in XX% The are and proactive of network which but can center ChargePoint's an We far, to share owners to core launched adoption. which notice would it operation uptime, of driver easily that at quality completeness resolution operators is the features this it this in industry remote reliability. station drive the I comes monitoring drives time rapid expect flawless energy and transparent was capable the realized reporting including the XX.XX%. at We actionable as the there.

for that this, prevents be is critical reliability. it for will not a will data and We integrating a physical previously driver comprehensive detect or soon metric could from damage account sources charging. towards We delivering

ChargePoint. needs far just I and of I ensure have These are data expecting baseline, everybody comprehensive This this they uptime, results our illustrate importantly, positively to the do my will will a on to More more for business, new reliability the our impact lower hope rigs charge continue EV. record it deliver can seamlessly. the experience set to and who so when projects track can quest few to from initially XX%-plus we but so drive initiated their at charge of

quarter. let's to move talk the on Now about third

for my and preannounced XX, quarter a initiated changes, us the on November we was disappointment As including had some appointment.

looks expectation, was While very nowhere big still good. the quarter picture near the

We have what is leadership executing challenges is to this fix. had new team here the and

firmly are EBITDA an adjusted being to calendar We committed of QX in XXXX. on profitable basis

on results in for QX preliminary with the detail will November shortly, results XX. consistent give are Khetani, Mansi CFO, which Our given the

as line top things where figures wrong. the well as went are Here

Our and at operating charge, we million revenue gross to margin $XX the as our million. $XXX forecasted XX% million, quarter a due noncash was managed for impairment was non-GAAP negative $XX expenses

As expectations. earlier, we We our figure of to majority this fell revenue attribute the line top short this factors. stated three of

and many the XXXX fleet XX%. slow the of been or these up vehicles vehicles arrival has for NEF production. been Bloomberg First in sales ramp commercial electric of have from to delayed, all, dropped by other ] Recent cases, data vehicles forecast commercial transit the [

to vehicle the delivery. them they until customers but sight ordered, vehicles have with are proceeding line that of necessary on to are Our infrastructure in charge eager they investment receive not have

waiting begin we customer XX transit on As buses, X add a quickly. on class more and vans. single These to XXX trucks than waiting others XXX up to waiting have commercial X/X on examples, X

second chain revenue line factor QX summarized normalization. impacting demand can as be with supply The in a top slowdown combined commercial

quarter, terms, inventory As interest needed. lower normalization? they the moved supply How demand placing waned and has channel our been back of we orders smaller in impacted and Commercial last to rates In by uncertainty. economic mentioned carrying as levels face restocking of are charter a where chain has simple high has this model

with poised While commercial any quickly inventory to in monetize it we impacted negatively ready demand are to ship. QX, uptick

labor we OEMs not considerable the revenue business were We was to due negatively disputes predicted both the QX the the something auto hesitation dealerships, and related do the into States. of going third delayed well-publicized have in quarter, with The factor, could automotive their impacted United which which strike. to

of corrected we issues: from half realign XXXX with We of transitions that of to in better demand. million ground inventory taken extreme the QX. through for been transitional to supply better it and issues aligns and with end demand action issues The quarter impairment This these demand and sell These continues from. inventory the margin. The current from slate QX. $XX differs impairment charge with transitions by supply in pandemic the a for the quarter single build mistakes. Two us addresses I'd to that supply product with well, a the summarize, the and experienced COVID on we charger. have what balanced. To the in the new The chain cleans to how solid first Regarding it moving noncash noncash product DC the so impairment impairment from at to and business surplus were addressed product our multiple second That the of and the the commitments back not our cost at have future does like did in we taken surge first-generation brought range. in outline us shortage these was structure and third execute charge, was we leading learned demand current third factors the taken balanced the the deliberate product executional related center forward. and on have impairment XXXX current noncash quarter places at took believe We

few of have in shown taken said itself quarter, quarter believe challenges $XXX had balance our that in were and business hand. this cash with at by quite we and are the call, underlying CEO. some inventory. Despite our execution bright noncash sheet has on position to and We have ended I there addressing We spots that via impairments began $XXX share. quarter and now the will COO fix to As finish current in as these third I a million conservative issues, strength monetize beginning comprehensive the are the an boosted market the we as million the excellent

$XXX with of to EV debt cable time the Home like the We which as to for we roll Tesla were We in would best went ChargePoint from X its sales in with market. We also a quarterly up passenger coverage an sales on outline facility, for this in placing We sequentially position. Sales activity. contrary. I first media perspective charging that a years, charger solutions, the our released QX. sign recent quite live saw until excellent a undrawn bit our app Amazon NACS new began to driver million active despite update maturities and as are was on out has home product million station, this is what Flex vehicles combines cash reached in consumer to users. a which XXXX, take our not weeks are an of We row. top-selling compatible us credit Home quarter largest Flex, been down have no XX slowing revolving ever. XX% to

XX%. lineup from to have unique the preparation have for hours XX% months. we increase We believe already the increased municipal third only and Our the in field, in XXX hours to XXX gigawatt suite our has an the of Year-over-year, out charging the charters system Pantograph scale than our pressure. for vehicles, went Energy X dispense was in that necessitate rounded quarter, announced utilization transit the figure form customers will gigawatt a space. Reverting in saw quarter rapid their to utilization in this we from soon. solutions QX EV more fleet products forthcoming in second software increase bus infrastructure

On future vehicles. and premium customer manufacturer we to for pay charging find, for the in software in-vehicle front, German sports another car signed our use

of Lastly, passenger the I other charging experience in Mercedes-Benz which company thanks and many ChargePoint, Metro represents the am America, of recently North solution. can online phenomenal headquarters full USA extremely stack features experience deployment in reservations, DC in that along our other flexible to network Plus line, match the user with fastest charging no solution location capabilities Express a Mercedes-Benz Atlanta. including This America, ChargePoint's charge, powerful make impeccable. proud with for the vehicle first charging software at North by the went plug-and and charging is enabled rollout This

XXX,XXX of We management of approximately under customers. than of DC XX% Fortune count general to of drivers more a a Lastly, than Fortune on with few ports the XXX,XXX XXX finished the We and more are active now the statistics total ports chargers. of than access as XX% worldwide the XX XX,XXX We roaming ports. for global with quarter provide ChargePoint XXX,XXX network, which fast more note.

statistics you with port I clear the am leave second takeaway. should of the reciting All

important is future business of subscription and our up give for success. It the updated rapidly us our setting also Our me something for stats, to for planet, which environmental means metrics. growing is long-term

rigor our on EVs is by solid our numbers go-to-market more of enabled XXX,XXX success on another averted tons We were XXX,XXX remarks X world have to estimate emissions enough to to the on business. with power believe forward electric execution. or a gas greenhouse moving our miles this for it We billion my that driven means this QX, year. network. To look Despite over at for is X.X to line summarize entire nearly enough we and million times top estimate product key our we way, than homes strategy operational of the the focus and are metric drive around laser

strategy quarter our adjusted term accomplishing year. near in being Our positive validated of objective by success will EBITDA next of the in core be the fourth

rigor, We competition. as reach with an cash our treat to faster capitalized and plan to to large and are managing we well We our extreme adjusted inventory the ready positive. asset are than ship balance EBITDA deploy

mentioned have transition is good lineup to we software. comprehensive have transition past, and a completed which is the news I product and While product the of challenges our hardware product nearly second-generation portfolio, leading across both the

guidance We I'm many is strategy on focus with today. you, our will will fine-tune execution. In QX of to to for of results guidance, be mind which relentless continue reference excellent a we giving through not sure top

prudent do this counter as hand is line decision are QX, road next guidance to limited which us. it focused the implies execution. lying quarter a we like would we that profitability. I as This we serves about said, job what I strategy and nothing we factors given be opportunity speak. With rapid and do being who as as to excellent much role for the my our outline the not at so, as my provide will we team it XXX% in is would and my of with conclude to signal, tenure a working of the As expect rather to reminder remarks on ahead top well are, recovery

not to driver grow. drivers. We our in or market It utilities, by a and this the integrations businesses We drivers, entire shapes continue power who municipalities and themselves, software, serve the win that ecosystem the in on a networks the enable EV entire EV particular to EV for vertical. for singular building space EVs is those strategy. focus software leader which from the are for will new We

companies Our relationships or drivers to need extend touch constituents, to brand company, companies expand their entirely platform an with loyalty those empowers and can they connect to so their charge. effectiveness. their new who be point It allows with enhance operational

now just our to are road, not an to also e-mobility. for CFO, is it but Mansi review about to EV the new realm better you of to the the And to I for on hand to back not a customers transition over financials. their enable possibilities decarbonize Thank listening. to serve create We call but out charging This planet to get all the rather our own our will only customers. help Khetani

Mansi Khetani

Thanks, Rick.

recurring and and a that consists as our into warranties our As a network along subscription charging reminder, we items. results connected that and to Network assure other. bundle please connecting hardware, includes report see revenue lines: coverage refers to warranty service our cloud system, earnings our and where release offering nonmaterial hardware, where services revenue ChargePoint to our hardware, software three and services professional subscriptions. continue we we of Other systems subscription non-GAAP reconcile recall GAAP charging certain

$XXX $XXX was Network sequentially XX% down guidance at $XX range down million. $XX revenue, with up of down QX total year-on-year. to at XX% our systems million below $XXX revenue XX% revenue million, of million year-on-year. and XX% and was at million QX, XX% total For revenue charging down X% Subscription Other revenue, of XX% was million revenue X% year-on-year. $X of year-on-year

to Turning verticals.

quarter. billings QX XX%, Commercial percentages by made X%. last Rick XX%, you the was of similar revenue XX% billings, for Fleet Fleet and Residential Other the billings, out were: As approximates verticals split. earlier. XX% we report reasons which know, Commercial to slowdown

to they in This through restocking commercial government programs of QX. changing deals. Residential reducing third our large largest well outline many mandates uncertain at Service, North but We revenue, lower our transit customers partners larger for pushed vehicles Europe in of vehicle with from sequentially delivered America as channel quarter, orders up sold. growing as had was made mix, reduced Postal of work includes of from availability but due geographic its terms continue decrease $XX to electric revenue, Non-ChargePoint as conditions. U.K. mentioned, their units XX% To This quarter Europe year-on-year our demand against out XX%, XX% reflects the the inventory products. like as In also ever U.S. XX%. economic shift million and Rick high decreasing by QX consistent

the was a mainly non-GAAP gross reflects our million. to still fixed absorption in This a we charge, of expectations. Non-GAAP impact due the quarter X% would range, a range margin, margin QX September noncash non-GAAP Turning This partial on our million, gross units a to We X%. were of XX%. operating initiatives been XX%. charge for had sold negative was for of quarter. been gross would and increase announced matched had expenses we revenue below This $XX costs QX margin cost impairment guided of decrease savings to sequential within fewer over that have impairment X. Without from year-on-year the have reflects expected $XX

expect was in expenses compensation expectations pre-impairment $XX EBITDA in in profit with to was higher QX adjusted down revenue $XX million. see was We non-GAAP operating shortfall. million than in X% and due a year-on-year QX million, down beyond. Stock-based gross QX and $XX continued to reduction from our the loss This QX.

which from the Of EBITDA discussed earlier non-GAAP built $XX note, of is QX. $XXX of noncash inventory inclusive end We of during QX the the net the the was impairments about Our million at finished quarter. the the million and impairment inventory quarter noncash million. We $XXX adjusted with impacted in loss, up inventory, impairment half line. of

which on to a as sheet. liability reflected is half, other commitments related the balance The was

the for to We demand current slowed build the expect have adjust future to rate as decline our we in inventory down environment.

at revenue commitments was $XXX at of end future of balance, up QX. revenue million which consists recurring from deferred customer subscription from $XXX million, towards the payments existing Our

at with price finished average quarter million on cash. cash million connection to comprised notes our cash description This the additional $X.XX. the at-the-market million more our notes. of with was in in our during $XXX as facility in institutional with equivalents. at raised the with This announced investor amendments complete convertible of to raised balance includes and an outstanding quarter. prior and quarter offering for $XXX convertible a SEC available funds X $XX refer million We Looking the the through our $XXX of filings amendment to October of the raised an Please

plans to we further no in have EBITDA fourth our year. We We the through of of adjusted positive goal the fully believe funded facility. are access aftermarket quarter next

$XXX addition a cash remains In line credit to balance, our million undrawn. revolving of

Our adjusted modest expansion. in path fourth revenue growth to year the positive of assumes margin and EBITDA quarter modest next both

we ways we operating cost efficiency We XX, addition, constantly approximately of XXXX. increase now will will million In shares as to improve October evaluate had Q&A. move to you, XXX our and Thank on structure. and outstanding

Operator

with [Operator ISI. comes Instructions] question of Evercore the West first Our James line from

James West

point in in they go the with Rick, infrastructure? kind part slowdown of I you building Because recognize wanted it's to the vehicles the clearly what more from forward delay. really customers those that I are buying, what will. of to at will to a using deliveries of the if charging the particularly have But gating do a fleet dig vehicles, on little be item

Richard Wilmer

infrastructure that one to see optimize allow both the in other. we're charging going we maybe delivery, from infrastructure front up I a of desire in bit with doesn't their vehicle show charging them vehicles earlier capital investment, to perspective, that. largely to That than coincident think such the our have I and

James West

been I'm or that done. placed are -- delivered them, so Okay. assuming extensive already done have that work And the are already these customers you've haven't purchase either designs orders with infrastructure, the these

is just that it's of a correct? and delivery matter equipment So installing

Richard Wilmer

correct. Yes. Generally

Operator

with & the Our next Rusch Colin of comes Oppenheimer from Company. question line

Colin Rusch

pull couple on optimize the how here also little cash Can in capital of bit lines the quarters field? working utilization you existing the And as the over trend chargers you of to you might sheet? talk out able a the on that next are about then balance much be out

Richard Wilmer

capital working then Sure. address take and the question I'll come let utilization. I'll Mansi back

Mansi Khetani

Yes.

in the So inventory Colin, so buildup. did the on QX, invest in front, we working capital

next few working quarters, inventory because that can our on balance already down our to front. expect from You over manufacturers we see contract sheet, started bring with we've the that

also of should brings revenue So terms overall, as with general down balance, component helps the trend SaaS working deferred our business of usage, capital which out this a significantly working kind well. of in capital

Richard Wilmer

Colin, what seeing utilization, of we're an terms is increase. In

commercial other availability regarding I the the are business ports in we charge pressure from to data no there's thus, well for networks on industry that is building commercial they translates of to seen pickup utilization and think this a points how people want charge. their interested into the when this as and EVs to we've question see the because in

Operator

from Our the Peterson JPMorgan. of line next Bill with comes question

William Peterson

Yes.

relative I'd visibility all, guidance, First terms I I'd guess vary the at but ] is orders guess, of that and at to between -- much more and much in How that like not newer how like products. maybe XQ guess to and commercial your quarter-to-date the specifically does channel trends ], you're to have related, I wonder understand any month trying or perhaps of any fleet, to [ you [ into to there understand fast [ you're inventory to trended know I of is first destocking try disti of see, like time, how to I'm partners. quarters seeing ] prior I willing quarter? And provide destocking there what with is occur? partners? the same for maybe D.C. needs more kind older LX period

Richard Wilmer

COVID Bill. this. Yes. hate the I of the And it's impression to to real inventory reason we've experienced Thanks, is a largely under continue the question. pandemic, normalized. use Good we're channel that why while excuse

into strong with year. into X-year along with due lead translated times. driven very extended types this of early the last chargers chain we those components went During through the lead demand to year COVID hard pandemic, supply that certain was saw That And channel. into the times

and up Our they products were ahead, on bought inventory. lead channel ended the times, with so

has now largely shipping we the into channel, very lead channel are which Our the with time back lead allowed to our normalize. for are short to normal, and inventory components times

Operator

line comes from question Irwin with Craig next ROTH Our the of MKM.

Craig Irwin

see move the maybe talked we current you us And about? quarter? head look in for firm on something a exiting 'XX that And that the can to that that target? expressed you a about is Or end the the on year? really little million count we So by you've around a of planned see $XX clear have as is bit calendar update guys status something is what possibly should EBITDA can the the profitability savings commitment

Mansi Khetani

that, I can take Craig.

terms XX-Q, more OpEx of in people. So head heads details X,XXX company. a over includes count COGS exiting across in the get little That quarter, you all were total we our but and the

In terms about we targets, $XX of the savings had that QX. achieved the talked in we million

at OpEx out. QX little that at our In more look we'll able looking than what that what at in being $XX fact, bit by indicate, constantly the more. We're we areas if have had we've $XX than cutting And showed And thereby reduce looking We're you. continue actually to consulting million meaning to that you facilities lower million that. number and that services, laid a would cost is improvement. QX costs external at we for do

as to that goal to it As is look remarks QX. in is at And one that well, our constantly in we we'll sure area Rick make my mentioned, and as in at that. look positive control. will we EBITDA our hit That continue prepared said I

Operator

Markets. Capital Our of next Dendrinos the RBC question comes with from line Chris

Christopher Dendrinos

levers to hit kind maybe you back EBITDA you're more year-end just looking a guess to the about the goal? And go that maybe little there? that pull next explore of talk get and growth then more. at that little in for target to what on a question maybe for order next bit year. to last bit sort the I year have you of to Can wanted I you

Mansi Khetani

can I Yes. take that.

programs on So revenue But hit large next We're guiding we we're I conservative said, in contract year. revenue We're grow the expecting other won. large delivery to as and are that are using to fast specifically auto and next transit we've estimates modestly. to expected not already especially for segments. expecting that on year, of continued half auto and USPS contracts charge across the second

workplace economic that are the on conditions cautious and business on interest also We being type the will transactional since extremely rate depend environment. and recovery

Another the RFP business activity indicator rates heavy win and we're seeing. that is activity,

gives revenue of half. us modest growth second I've in kind the in that that the So confidence assumed

manufacturing, we In cost we as efforts. gross And improvement as we I ] Rick continue as alluded we Asia source well to margin, as lastly, our and [ terms out of second to be constantly think see we'll to our OpEx, and efficiency. on is definitely is and a will we improvements that monitoring are one and evaluating, controlling There are more of control. cost that thing focus in significant number continue will

Craig Irwin

in And I then the from you you maybe of what supply of have and supply just that that what all just guess, might building now? on chain a of, terms differs, right any provide way guess, chain. there Asia more, Is that kind that bit comment kind around quantify how could I margin uplift

Richard Wilmer

supply the products each have largely of chain, manufacturing built Today, partner. Yes. our we one by

product build major us location partners tension competitive one is It the changed manufacturing two services. So our what to had different more our on-time footprint put regarding We've we product against of not a by cost, to in than priority every quality. tension brings which has that manufacturing obviously, that allows delivery this in have competitive in position table. and portfolio the and Asia along is them a with

Operator

line Our with next comes Stifel. from of question the Gengaro Stephen

Stephen Gengaro

are do customers? it quality of of charger what how maintenance? I are talk the Good Is downtime? but be and I'm kind it? abuse reliability And of you when from you the what naive, it Like afternoon, factors really? of kind the uptime, curious, for all me. is improve little network Is it that two guess Is to One about of create steps is the a actually it lack everybody. -- -- that charger? might what Thanks. the

Richard Wilmer

reliability and this going Stephen. And get hardware. starts electricians of it's the durability future. Thanks. failure solution means durable, regions very energy correctly, with of infrastructure is to area training, is focus step the very charging. with But for surrounding business if question, but problem. The This with built us to correctly. modes in for be a installed entire building no drivers this the correctly you're and going in that and Great to is is durable It is from and installed we the correctly. of into the of up a it's by the invest reliable, the an of us, that hardware, into the going EV it's money charging If end designed to investment to all prevent and we work we're major do forward lot area to next hardware and reliable

they lot operation our regarding that chargers a that comments damage. we're to of physical can such piece sources from out relates or observe data remote It's monitoring that difficult chargers. northern We handles, well and see to sourcing below the of what now in decade people are our into where far XXX addition degrees to to center we damage products see people of I third network outdoors, be complex. going expected but And They're action which wild they're charger alluded deserts in they're last get crowd physical for everywhere where vandalism. lot The zero down also shameful, technology, These opening they way detect longer. Fahrenheit enhancements, subject technically damage. the additional a to where in environments, my and to are to see We backing reaches over being over this are through those. is go a that is physical running those that we in to the

our out you're to hardware, problems occur are it's reliable a control mostly to So and that because going of to to build network. we're damage, largely summarize, it's if react have physical very correctly, you reliable able that installed

Stephen Gengaro

there of your Like other as those just it's need watching costs the controlling just getting we then to And more one to volume should I quarter? there? the about you could as you've up? as a be Is puzzle? to pieces this it level is certain know me, volumes add we do to touched every target, and get a for positive any sort of color you mean, the -- simple on I path your But EBITDA what think the bit.

Mansi Khetani

our we'll mentioned, and a next in color margin at call. say revenue a QX our give there. get path So can each call, But as what this quarter, more slow in is modest increase can I to point profitability sequentially we you Rick growth to our with

final lever expenses. course, Of the will be operating

Operator

comes next question Our from Guggenheim. line of Osha with the Joseph

Joseph Osha

able Understanding some perhaps some work maybe business segments more business to if of at in detail, possible comment of looking focus outcome wondering Is perhaps in, on might your review might the that emphasizing other you're be the that not reducing that the segments? of include you're you one and I'm doing?

Richard Wilmer

strategy Good going job, for My markets. product did to solid. credit And our go-to-market a is fine-tune Pasquale question. Thank industry. you I'm executing give that. obviously current in to that that was insightful great at between lucky moment I'll the a be have visionary prior But exists. we're demand CEO, well-thought-out product market change such largely, and go-to-market strategy is adopted vertical on He Romano. strategy. We'll and focused this shifts and as that our assessment CEO, a to conditions

Joseph Osha

and then one to revenue about today Mansi, listening of have sort growth just guys Okay. to EBITDA modest getting for breakeven. you And what of in terms talked

this levers to a simple from order out you're the math going to target a substantial assuming you're run A, talking either, in has there even gross expansion or in in a get current of of bite pretty suggests EBITDA Am built I a correct lot that take that OpEx you've move to of heck rate. margin one breakeven Some that got those to about?

Mansi Khetani

point can this Joe, I is say all tuned. stay at

We details call. next ready provide more will to our at be

details additional right provide can't now. I Sorry,

Operator

Bank of comes [ Lochridge line question ] the Cameron America. of with the next from Our

Unknown Analyst

back So auto just you go back talk some deliveries, into issues wanted of of kind I of line that what modest guys of are guys these kind that these commercial of to themselves. kind demand, sight I admittedly Commercial ties hands I for macro out is, suggesting are you mentioned, revenue you question question have guess you to next resolving of of and hear these fleet And year. of really, orders growth the your about some -- do guys. some disputes. topics delaying labor really my larger

get for a sense trying just So kind of that. what's to informing

would color be you there could us helpful. just some give If

Richard Wilmer

line Cameron, we're always get those all working to better of factors. onto sight

to fleet of commitments the hard past, But it it's line in vehicles, fleet easier electric have is get realize sight people in days. early on think delivery. at build side, vehicle how as I in the changed to the least

change. eye a those of how of any keep we delivery So close on vehicles very commitments

little side, -- understand. difficult more would it's to more bit I a that's the say On commercial

being up could mandatory, the a the as view are uncertainty seeing ports start high conservative we're happening charging future many is I in economic in I waiting think an succumb to and what of economic rates their and CFOs is clear landing they for increased recession and believing coming. of before space pressure cash this with interest clearly commercial some with we that's believing out the think we're to not there. utilization have soft on a there nice facing is something to uncertain others And the that they face

Unknown Analyst

just the then kind what's given sight guys the revenue into And terms -- growth. line modest of you in the of of

Just any comment next there year?

Mansi Khetani

like So of into. think or we have based won either estimates conservative sight that line large said we've you before, already on where programs I

the that For of segments. auto contracts We'll the part we on on. large started transit and and next and mentioned. executing auto won USPS delivery with some OEMs year, charge continue already are There includes the this I as latter we've fast contract, programs

on and out. we'll are how being the things we because funded, visibility cautious extremely right my of into. those model what have whatever the that, the now, have So taking transactional side workplace things already macro That's to is see plays I'm into

Operator

Needham of line Company. the from comes Chris question next Pierce Our with &

Christopher Pierce

Just X, level of to comment -- wondering X and if of between in X are way X is entry competition your putting it? right that's Level with to Level it kind the of ] Level that Tesla within competition X within and preference and think Level you X. and Level is kind on coming of I customers off was a about Level get you airplane the industry. in charging that could on Or then and holding level down lot Are not potentially And at X seems the play X? the [ kind disadvantage? towards a

Richard Wilmer

I think there's So two. between the a don't trade-off

Level and X fit into their situation, case X on Level use think depending that customer they a I and have. the needs

we stealing what in think workplace, X reported. home, we don't When from this commercial, the record just earlier, not in one it where alluded I quarter is workplace. to to other. Level there's as we a general, obviously saw comes So in

the I discretionary are think see of CFOs we're being discretionary with we a building with cautious and pressure seeing this the utilization, as viewed earlier. mentioned as increased world we purchase, the also but purchasing

Christopher Pierce

I make Like understand were two margins the fourth kind what's you year? they revert the modeling some but correctly, hang think inventory? bit last burn of taken And on be charges, beyond the you've of through in without then sure you there quarters, want should fiscal if revenue inventory or kind last will or to the to to of the about rent til margins quarter back I where right in on and way maybe. little -- guidance a a just

Mansi Khetani

margin, what tell So but yes, guidance I'm giving you right gross QX to I can are thinking not now. we

line an normalized or next back impairment I may been we based plans. final be Asia improvement in where strategy, has year, the it think that margins already will I to fact this on think depending start manufacturing up mix the come the margins. taken. slightly on QX the seeing down QX QX then from Obviously, And

our of variances. now all clean we are should costs material so extremely see So fewer

help So all things year. should those improve margins next

Operator

comes line Jamieson. Robert of question from Our next the

Robert Jamieson

have My here. questions. a just I few

with CFOs, or base, seeing the where site of and a that's first, maybe kind Is you demand? any to like are with costly preparation the install? your headwinds installments that pressure deep side, and you like weren't initial been as the the it's So are pressuring little -- harder broad from customer anything maybe curious, now becoming just conservative from bit

Richard Wilmer

any cost ownership, commercial, something commercial being No, in is think space. pullback I that's decision-makers I the seen obviously, by not installation which the includes only haven't of the the charters, financial there. the in but But considered total

Robert Jamieson

and that comments you from just the color. the then all shared, I have And appreciate Okay.

any near-term as trends a obviously, the standpoint, little term, do expect there. And positive Just curious, And I headwind? of deliveries? line of you becoming the bit digested the if commentary ] kind to curious mean, like what is kind I are And still this just [ correlated as thoughts a case, longer near-term more that's your growth from then a top it's as. but

Mansi Khetani

a happened talked pushed point if want that on as quarter within We've at for before. not weeks. But Yes. the example, the this had the side, in -- shipments out two that week. last to but the in last We've of an issue, about much the transactional. linearity literally it's it majority push fleet if in our out customers time, delivery, gets And

contracts though blindsided we've already so extent, do won. that little And to get a that these even we are

make on our that, business lives realize and are fix that will mission we more linear a having a We a to totally lot easier.

way. operation we'll We to more a able our be plan strategy efficiently, better be will to able in forecast

back-end-loaded our structure of that's which of kind uncertainty, more causing the shipments So of way on that we it's of fix. more our are

Robert Jamieson

Okay. No, that helps.

can if it last one in. I squeeze just sorry, one, And

have and a not and some Like and Just sales staff items obviously, happy. in balancing about the conserving making and move I'm of as high-growth talking your how -- forward but conceptually that going do here, when market, think you balancing thinking make about these OpEx how employees do marketing you're when about you're when cuts? you're talent you be those about to guidance next keeping for asking to year, you like to you're cuts going think

Mansi Khetani

the these decisions. in September. of We you the give top of same We in will to thing we do we but call, a of is color while need definitely lot balance make things to next kind that Again, a more had lot mind.

And the nuances so every of all all action. top of is this are mind, evaluating we

and like other marketing, costs, have spend, external R&D levers prioritizing where prioritizing like our in rollouts, see our today, we We like facilities et revenue investments sales cetera. areas

call. our that lot more able a but a at significant, of So we to next give evaluating, color you of we're lot will constantly improvements be efficiency

Operator

question with comes Research. line the Shreyas next from of Wolfe Patil Our

Shreyas Patil

just -- of either some do that. model done of that to trying ultimately has cost to understand absorb to having reliability or to so you operate station of kind ] some on How the reality actually the I to how chargers, some don't issues result? issue the that have guess you [ own use addressing just the and you address how a network, could get to do encourage or And and repair you do to have either reliability of are be payment this mean, them to I that. yourself of owners you try are the through you as that

Richard Wilmer

Yes.

to cover have energized that So covering that it and subject after been a very customers. of case use aftermarket all with terms is a service specific on a we respect for depends can that it's offerings station service their that level our suite discharged problem rich in vehicles, to And provide. we of the

be our quickly, stations part and it resolved their us allows P&L, but as repaired services part that's line afford our to issues that that customers they and that to of for So them. of do revenue are going that peace that to our for mind on also our a -- of recurring have pay allows support and and to

Shreyas Patil

the about how And had be just going have And new or cost I reduction seem were result in significant it -- sort Okay. to cost don't significant of heard to savings. cost material material on cost actually happening. management initiatives repeatedly doesn't suggest mean maybe product to reduction the we've been I there numbers side, think prior opportunities. we introductions seem from that

the have frame that that to of savings could product chain you talked how flown about you kind strategy new understand from either introductions realize new to trying supply of I'm So or the magnitude through. this

Richard Wilmer

end inventory, is part only the but have to that time not on partners. can pursuing. manufacturing add on why we of that that enjoy I We This by as indicated can charged you our And on position. piece hand, themselves our as that related product we worth XXXX, they're chain by we've the it's to of cost to this the cost are timing before assure work supply need through in very the around the inventory we be lower parts we both value optimized we cost. is get manufacturing well will

Operator

Our the with of Advisors Steven next comes Fox LLC. from line Fox question

Steven Fox

would no the that there's I there's I the is two not could look in-house reduce still just doing they strategy, gross on that you Is say specifically, flow a at then that assembly I the cost had assumption? secondly, income you coming talking but or to on written know you're gross through final would statement clarifications. margins, manufacturing as also And quarters? One, fixed company that imagine margins through to reasonable some benefit low down a in inventory the costs?

Richard Wilmer

So first of half take let me Steven. the that,

is we the means In that terms very is order. that working concept what inventory though little for This myriad of management. Essentially, a can important of even But product of around modularity. customer do have and capital is configurations assembly, in-house we that. of very design core a principle one our of tenet

you have different lengths cables. example, of can For

which in of working can us very inventory, kinds of can in allows helped our question. our configurations that up. stock all the the position to NACS relatively in connectors, do inventory have You Mansi us product all let have that We take which different itself. modular a keep down generic way, second half capital you I'll

Mansi Khetani

to related piece so margins, respect to was With the QX inventory the Yes. impairment and impact impairment the on transition. product

product slow-moving the are that actively selling all today. we impaired we So not

impact we'll and have where That taken does dealing of slower that Every little So part we while because is of a inventory. material off care with from moving it find we that all product, margin over be the portion. that direct ourselves taking upfront. is would write time taken margin is of we've quarter, slowly variances no there sell-through

terms comprises those of the that So next-gen some newer will the there value. impact reduction and in extent, are full the But margin. have COGS, to some products, to benefit products we or be of the that at inventory now in actual

Operator

with Morningstar. from comes question final Our Brett of line Castelli the

Brett Castelli

I'll that on wanted new new that with AC question products. either last DC just Just no confirm new to there's sticking products, [ confirm I that's just that to rolling next side the us or XX at this around call that's large to the on least largely planning want the months. I at XX that, ]? point you're in -- there out behind over it,

Richard Wilmer

inventory one bleed our another learned that two the have and the down plan we one products late planned that up, new replacing. we for will we XXXX be those we'll Brett, mid-XXXX. Those for Yes. make lessons product optimize definitely of coming will the products the and sure on and next be transition have from

Brett Castelli

that on is the AC DC or And side, Rick? Okay.

Richard Wilmer

into go Now here. you I'm awesome not tell products, any can going though. both pre-product they're announcements to I

Operator

turn over to Wilmer to for call like now closing I'd Rick the remarks.

Richard Wilmer

you. All right. Thank

your to support. we Thank customers employees Before our for for your just like close, continued much time. and shareholders, I'd you very thank

Mansi Khetani

Goodbye.

Operator

for thank for presentation, us. thank you today's to I'd joining all and like

may now You disconnect.

ChargePoint (CHPT) 6 Dec 232024 Q3 Earnings call transcript