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ChargePoint Reports First Quarter Fiscal Year 2023 Financial Results

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·16 min read
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Quarterly revenue increased 102% year over year reflecting momentum across all verticals

  • Achieved record growth in Europe with 67% sequential quarterly revenue growth

  • Over 188,000 activated ports under management as of April 30, with approximately 57,000 in Europe

  • Fortified balance sheet with $300 million cash raise from convertible notes offering

  • Confirms full-year revenue guidance of $450 million to $500 million for fiscal year 2023

CAMPBELL, Calif., May 31, 2022--(BUSINESS WIRE)--ChargePoint Holdings, Inc. (NYSE:CHPT) ("ChargePoint"), a leading electric vehicle (EV) charging network, today reported results for its first quarter of fiscal 2023 ended April 30, 2022.

"Positive first quarter results, despite expected significant headwinds due to global supply constraints, are a testament to the strength of our business," said Pasquale Romano, president and CEO of ChargePoint. "Our investments in a comprehensive portfolio for all verticals we serve continue to set us apart when customers seek a charging solution."

First Quarter Fiscal 2023 Financial Overview

  • Revenue. For the first quarter, revenue was $81.6 million, an increase of 102% from $40.5 million in the prior year’s same quarter. Networked charging systems revenue for the first quarter was $59.6 million, an increase of 122% from $26.8 million in the prior year’s same quarter and subscription revenue was $17.6 million, up 63% from $10.8 million in the prior year’s same quarter.

  • Gross Margin. First quarter GAAP gross margin was 15%, down from 23% in the prior year's same quarter as newer, currently lower margin, products performed strongly relative to more mature, higher margin offerings, and due to supply chain disruptions, which affected both cost and supply availability. First quarter non-GAAP gross margin, which primarily excludes stock-based compensation expense and amortization from acquired intangible assets, was 17% compared to 23% in the prior year's same quarter due to the same factors.

  • Net Income/Loss. First quarter GAAP net loss was $89.3 million, which included a $2.9 million amortization expense from acquired intangible assets and $15.5 million in stock-based compensation expense. Non-GAAP pre-tax net loss in the first quarter, which excludes stock-based compensation expense and other items, was $71.7 million as compared to $39.4 million in the prior year's same quarter.

  • Liquidity. As of April 30, 2022, cash on the balance sheet was $541.0 million.

  • Shares Outstanding. As of April 30, 2022, there were approximately 337 million shares of common stock outstanding.

For a reconciliation of GAAP to non-GAAP results, please see the tables below.

Second Quarter and Full Year Guidance

For the second fiscal quarter ending July 31, 2022, ChargePoint expects revenue of $96 million to $106 million. At the midpoint, this represents an anticipated increase of 80% as compared to the prior year’s same quarter.

For the full fiscal year ending January 31, 2023, ChargePoint continues to expect:

  • Revenue of $450 million to $500 million. At the midpoint, this represents an anticipated increase of 96% as compared to the prior year

  • Non-GAAP gross margin of 22% to 26%

  • Non-GAAP operating expenses of $350 million to $370 million. At the midpoint, this represents an anticipated increase of 50% as compared to the prior year

Guidance for non-GAAP financial measures excludes amortization expense of acquired intangible assets, stock-based compensation expense, earn-out-related payroll tax expense, and non-recurring costs and professional services fees related to acquisitions and security offerings. ChargePoint is not be able to present a reconciliation of non-GAAP financial guidance to the corresponding GAAP measures because certain items that impact these measures are uncertain or out of its control, or cannot be reasonably predicted, including stock-based compensation expense, without unreasonable effort. The actual amounts of such reconciling items will have a significant impact on ChargePoint's GAAP gross margin and GAAP operating expenses.

Conference Call Information

ChargePoint will host a webcast today at 1:30 p.m. Pacific / 4:30 p.m. Eastern to review its first quarter fiscal 2023 financial results and its outlook for the second quarter of and full year fiscal 2023.

Investors may access the webcast, supplemental financial information and investor presentation at ChargePoint’s investor relations website (investors.chargepoint.com) under the "Events and Presentations" section. A replay will be available three hours after the conclusion of the webcast and archived for one year.

About ChargePoint

ChargePoint is creating a new fueling network to move people and goods on electricity. Since 2007, ChargePoint has been committed to making it easy for businesses and drivers to go electric with one of the largest EV charging networks and a comprehensive portfolio of charging solutions. The ChargePoint cloud subscription platform and software-defined charging hardware are designed to include options for every charging scenario from home and multifamily to workplace, parking, hospitality, retail and transport fleets of all types. Today, one ChargePoint account provides access to hundreds of thousands of places to charge in North America and Europe. To date, more than 113 million charging sessions have been delivered, with drivers plugging into the ChargePoint network every second or less. For more information, visit the ChargePoint pressroom, the ChargePoint Investor Relations site, or contact ChargePoint’s North American or European press offices or Investor Relations.

Forward-Looking Statements

This press release contains forward-looking statements that involve risks, uncertainties, and assumptions including statements regarding our financial outlook for the second fiscal quarter and fiscal year ending January 31, 2023. There are a significant number of factors that could cause actual results to differ materially from the statements made in this press release, including: the impact of the COVID-19 pandemic, geopolitical events including the Russian invasion of Ukraine, macroeconomic trends including changes in inflation or interest rates, or other events beyond our control on the overall economy, our business and those of our customers and suppliers, including due to supply chain disruptions, component shortages and expense increases; our limited operating history as a public company; our ability as an organization to successfully acquire and integrate other companies, products or technologies in a successful manner; our dependence on widespread acceptance and adoption of EVs and increased installation of charging stations; our current dependence on sales of charging stations for most of our revenues; overall demand for EV charging and the potential for reduced demand for EVs if governmental rebates, tax credits and other financial incentives are reduced, modified or eliminated or governmental mandates to increase the use of EVs or decrease the use of vehicles powered by fossil fuels, either directly or indirectly through mandated limits on carbon emissions, are reduced, modified or eliminated; supply chain interruptions, delays and expense increases may adversely affect our sales, revenue and gross margins; unexpected delays in new product introductions; our ability to expand our operations and market share in Europe; the need to attract additional fleet operators as customers; potential adverse effects on our revenue and gross margins due to supply chain disruptions, component shortages and related expense increases or if customers increasingly claim clean energy credits and, as a result, they are no longer available to be claimed by us; the effects of competition; risks related to our dependence on our intellectual property; and the risk that our technology could have undetected defects or errors. Additional risks and uncertainties that could affect our financial results are included under the captions "Risk Factors" and "Management’s Discussion and Analysis of Financial Condition and Results of Operations" in our Form 10-K filed with the Securities and Exchange Commission (the "SEC") on April 4, 2022, which is available on our website at investors.chargepoint.com and on the SEC’s website at www.sec.gov. Additional information will also be set forth in other filings that we make with the SEC from time to time. All forward-looking statements in this press release are based on information available to us as of the date hereof, and we do not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made, except as required by applicable law.

Use of Non-GAAP Financial Measures

ChargePoint has provided in this press release financial information that has not been prepared in accordance with generally accepted accounting principles in the United States ("GAAP"). ChargePoint uses these non-GAAP financial measures internally in analyzing its financial results and believes that the use of these non-GAAP financial measures is useful to investors to evaluate ongoing operating results and trends, and in comparing ChargePoint’s financial results with other companies in its industry as well other technology companies, many of which present similar non-GAAP financial measures.

The presentation of these non-GAAP financial measures is not meant to be considered in isolation or as a substitute for comparable GAAP financial measures and should be read only in conjunction with ChargePoint’s consolidated financial statements prepared in accordance with GAAP. A reconciliation of ChargePoint’s historical non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the financial statement tables included in this press release, and investors are encouraged to review these reconciliations.

Non-GAAP Gross Profit (Gross Margin). ChargePoint defines non-GAAP gross profit as gross profit excluding amortization expense of acquired intangible assets and stock-based compensation expense. Non-GAAP gross margin is non-GAAP gross profit as a percentage of revenue.

Non-GAAP Cost of Revenue and Operating Expenses (includes Non-GAAP research and development, Non-GAAP sales and marketing and Non-GAAP general and administrative). ChargePoint defines Non-GAAP cost of revenue and operating expenses as cost of revenue and operating expenses excluding amortization expense of acquired intangible assets, stock-based compensation expense, earn-out-related payroll tax expense, and non-recurring costs and professional services fees associated with acquisitions and security offerings.

Non-GAAP Net Loss. ChargePoint defines non-GAAP net loss as net income (loss) excluding amortization expense of acquired intangible assets, stock-based compensation expense and the associated stock-based payroll tax expense, offering costs allocated to warrant liabilities, non-recurring costs and professional services fees associated with acquisitions and security offerings, and non-cash charges related to the revaluation of warrants, earn-out liabilities, and other financial instruments. These amounts do not reflect the impact of any related tax effects. Non-GAAP pre-tax net loss is non-GAAP net loss adjusted for provision for income taxes.

Investors are cautioned that there are a number of limitations associated with the use of non-GAAP financial measures to analyze financial results and trends. In particular, many of the adjustments to ChargePoint’s GAAP financial measures reflect the exclusion of items that are recurring and will be reflected in its financial results for the foreseeable future, such as stock-based compensation, which is an important part of ChargePoint’s employees’ compensation and impacts hiring, retention and performance. Furthermore, these non-GAAP financial measures are not based on any standardized methodology prescribed by GAAP, and the components that ChargePoint excludes in its calculation of non-GAAP financial measures may differ from the components that other companies exclude when they report their non-GAAP results. ChargePoint compensates for these limitations by providing specific information regarding the GAAP amounts excluded from these non-GAAP financial measures. In the future, ChargePoint may also exclude other expenses it determines do not reflect the performance of ChargePoint’s operating results.

CHPT-IR

ChargePoint Holdings, Inc.

PRELIMINARY CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts; unaudited)

Three Months Ended

April 30,

2022

2021

Revenue

Networked charging systems

$

59,551

$

26,800

Subscriptions

17,646

10,824

Other

4,436

2,886

Total revenue

81,633

40,510

Cost of revenue

Networked charging systems

56,266

23,742

Subscriptions

10,628

5,640

Other

2,632

1,911

Total cost of revenue

69,526

31,293

Gross profit

12,107

9,217

Operating expenses

Research and development

48,302

25,374

Sales and marketing

32,588

15,974

General and administrative

21,047

14,467

Total operating expenses

101,937

55,815

Loss from operations

(89,830

)

(46,598

)

Interest income

106

22

Interest expense

(933

)

(1,499

)

Change in fair value of redeemable convertible preferred stock warrant liability

9,237

Change in fair value of assumed common stock warrant liabilities

(24

)

43,761

Change in fair value of contingent earnout liability

84,420

Transaction costs expensed

(7,031

)

Other (expense) income, net

(447

)

15

Net income (loss) before income taxes

(91,128

)

82,327

Provision for income taxes

(1,862

)

38

Net income (loss)

$

(89,266

)

$

82,289

Cumulative undeclared dividends on redeemable convertible preferred stock

(4,292

)

Deemed dividends attributable to vested option holders

(51,855

)

Deemed dividends attributable to common stock warrants holders

(110,635

)

Net loss attributable to common stockholders, basic

$

(89,266

)

$

(84,493

)

Gain attributable to earnout shares issued

(53,820

)

Change in fair value of dilutive warrants

(49,471

)

Net loss attributable to common stockholders, diluted

$

(89,266

)

$

(187,784

)

Net loss per share - Basic

$

(0.27

)

$

(0.39

)

Net loss per share - Diluted

$

(0.27

)

$

(0.83

)

Weighted average shares outstanding - Basic

335,509,386

218,615,863

Weighted average shares outstanding - Diluted

335,509,386

225,533,389

ChargePoint Holdings, Inc.

PRELIMINARY CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, unaudited)

April 30, 2022

January 31, 2022

Assets

Current assets:

Cash and cash equivalents

$

540,583

$

315,235

Restricted cash

400

400

Accounts receivable, net

79,855

75,939

Inventories

45,305

35,879

Prepaid expenses and other current assets

46,086

36,603

Total current assets

712,229

464,056

Property and equipment, net

35,196

34,593

Intangible assets, net

99,719

107,209

Operating lease right-of-use assets

23,970

25,535

Goodwill

209,927

218,484

Other assets

6,275

6,020

Total assets

$

1,087,316

$

855,897

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable

$

35,350

$

27,576

Accrued and other current liabilities

89,938

84,328

Deferred revenue

81,881

77,142

Total current liabilities

207,169

189,046

Deferred revenue, noncurrent

75,610

69,666

Debt, noncurrent

294,070

Operating lease liabilities

24,034

25,370

Deferred tax liabilities

14,597

17,697

Other long-term liabilities

6,744

7,104

Total liabilities

622,224

308,883

Stockholders' equity (deficit):

Common stock

34

33

Additional paid-in capital

1,387,139

1,366,855

Accumulated other comprehensive loss

(21,160

)

(8,219

)

Accumulated deficit

(900,921

)

(811,655

)

Total stockholders' equity

465,092

547,014

Total liabilities and stockholders' equity

$

1,087,316

$

855,897

ChargePoint Holdings, Inc.

PRELIMINARY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands, unaudited)

Three Months Ended

April 30,

2022

2021

Cash flows from operating activities

Net income (loss)

$

(89,266

)

$

82,289

Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation and amortization

6,220

2,741

Non-cash operating lease cost

1,224

977

Stock-based compensation

15,527

7,577

Amortization of deferred contract acquisition costs

538

399

Change in fair value of redeemable convertible preferred stock warrant liability

(9,237

)

Change in fair value of common stock warrant liabilities

24

(43,761

)

Change in fair value of contingent earnout liabilities

(84,420

)

Transaction costs expensed

7,031

Other

300

1,096

Changes in operating assets and liabilities, net of effect of acquisitions:

Accounts receivable, net

(5,941

)

32

Inventories

(9,832

)

4,894

Prepaid expenses and other assets

(10,300

)

(6,166

)

Operating lease liabilities

(1,166

)

(373

)

Accounts payable

2,757

(3,463

)

Accrued and other liabilities

8,224

(4,952

)

Deferred revenue

10,683

7,797

Net cash used in operating activities

(71,008

)

(37,539

)

Cash flows from investing activities

Purchases of property and equipment

(3,190

)

(4,138

)

Cash paid for acquisitions, net of cash acquired

(2,569

)

Net cash used in investing activities

(5,759

)

(4,138

)

Cash flows from financing activities

Proceeds from the exercise of public warrants

73,323

Merger and PIPE financing

511,646

Payments of transaction costs related to Merger

(30,115

)

Payment of tax withholding obligations on settlement of earnout shares

(12,815

)

Proceeds from issuance of debt securities, net of discount and issuance costs

296,037

Repayment of borrowings

(36,051

)

Proceeds from issuance of stock in connection with stock plans, net of withholding taxes

770

Proceeds from issuance of common stock upon ESPP purchase

3,920

Change in driver funds and amounts due to customers

2,391

Net cash provided by financing activities

303,118

505,988

Effect of exchange rate changes on cash, cash equivalents, and restricted cash

(1,003

)

7

Net increase in cash, cash equivalents, and restricted cash

225,348

464,318

Cash, cash equivalents, and restricted cash at beginning of period

315,635

145,891

Cash, cash equivalents, and restricted cash at end of period

$

540,983

$

610,209

ChargePoint Holdings, Inc.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(In thousands, unaudited)

Three Months Ended

April 30, 2022

Three Months Ended

April 30, 2021

Cost of Revenue:

GAAP cost of revenue

$

69,526

$

31,293

Stock-based compensation expense

(785

)

(24

)

Amortization of intangible assets

(620

)

Non-GAAP cost of revenue

$

68,121

$

31,269

Non-GAAP gross profit (gross margin as a percentage of revenue)

$

13,512

17

%

$

9,241

23

%

Operating Expenses:

GAAP research and development

$

48,302

$

25,374

Stock-based compensation expense

(5,978

)

(675

)

Earn-out-related taxes (1)

(346

)

Non-GAAP research and development (as a percentage of revenue)

$

42,324

52

%

$

24,353

60

%

GAAP sales and marketing

$

32,588

$

15,974

Stock-based compensation expense

(2,546

)

(598

)

Earn-out-related taxes (1)

(418

)

Amortization of intangible assets

(2,241

)

Non-GAAP sales and marketing (as a percentage of revenue)

$

27,801

34

%

$

14,958

37

%

GAAP general and administrative

$

21,047

$

14,467

Stock-based compensation expense

(6,218

)

(6,280

)

Earn-out-related taxes (1)

(335

)

Acquisition-related costs (2)

(1,011

)

Non-GAAP general and administrative (as a percentage of revenue)

$

13,818

17

%

$

7,852

19

%

Non-GAAP Operating Expenses (as a percentage of revenue)

$

83,943

103

%

$

47,163

116

%

Net Loss:

GAAP net income (loss)

$

(89,266

)

$

82,289

Stock-based compensation expense

15,527

7,577

Earn-out-related taxes (1)

1,099

Acquisition-related costs (2)

1,011

Amortization of intangible assets

2,861

Change in fair value of preferred stock warrant liability

(9,237

)

Change in fair value of assumed common stock warrant liability

24

(43,761

)

Change in fair value of contingent earn-out liability

(84,420

)

Offering costs allocated to warrant liabilities

7,031

Non-GAAP net loss (as a percentage of revenue)

$

(69,843

)

(86

) %

$

(39,422

)

(97

) %

Provision for income taxes

(1,862

)

38

Non-GAAP pre-tax net loss (as a percentage of revenue)

$

(71,705

)

(88

) %

$

(39,384

)

(97

) %

  1. Consists of employment taxes paid related to shares issued as part of the earnout.

  2. Consists of professional services fees related to acquisitions.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220531005958/en/

Contacts

Investor Relations
Patrick Hamer
VP, Capital Markets and Investor Relations
Patrick.Hamer@chargepoint.com
investors@chargepoint.com

Press
Jennifer Bowcock
VP, Communications
Jennifer.Bowcock@chargepoint.com
media@chargepoint.com