EX-99.1 2 chargepointearningsrelease.htm EX-99.1 Document

Exhibit 99.1
chargepoint_logo.jpg
ChargePoint reports second quarter fiscal year 2023 financial results

Second quarter fiscal 2023 revenue of $108 million exceeds top-end of quarterly guidance; ChargePoint re-affirms annual guidance
 
•Revenue grew 93% year-over-year as the Company posted its first $100 million quarter
•GAAP and Non-GAAP gross margin improved 2 percentage points quarter-over-quarter
•ChargePoint guides to third quarter fiscal 2023 revenue of $125-$135 million and confirms full-year revenue guidance of $450 million to $500 million

Campbell, Calif. – August 30, 2022 – ChargePoint Holdings, Inc. (NYSE:CHPT) (“ChargePoint”), a leading electric vehicle (EV) charging network, today reported results for its second quarter of fiscal 2023 ended July 31, 2022.
“ChargePoint delivered another strong quarter, with continued growth across all verticals and geographies,” said Pasquale Romano, President and CEO of ChargePoint. “We continue to execute on our strategy, as demand continues to grow for our portfolio of industry-leading charging solutions for every vertical and in both North America and Europe.”
Second Quarter Fiscal 2023 Financial Overview
 
•Revenue. For the second quarter, revenue was $108.3 million, up 93% from $56.1 million in the prior year’s same quarter. Networked charging systems revenue for the second quarter was $84.1 million, up 106% from $40.9 million in the prior year’s same quarter and subscription revenue was $20.2 million, up 68% from $12.1 million in the prior year’s same quarter.

•Gross Margin. Second quarter GAAP gross margin was 17%, down from 19% in the prior year's same quarter primarily due to supply chain disruptions, which affected both cost and supply availability as well as increasing new product introduction and transition costs. Second quarter non-GAAP gross margin, which primarily excludes stock-based compensation expense and amortization from acquired intangible assets, improved sequentially to 19%, but was down from 23% in the prior year's same quarter due to the same factors.

•Net Income/Loss. Second quarter GAAP net loss was $92.7 million, as compared to $84.9 million in the prior year's same quarter. Non-GAAP pre-tax net loss in the second quarter, which excludes $26.4 million in stock-based compensation expense, $3.0 million amortization expense from acquired intangible assets and other items, was $62.3 million as compared to $40.3 million in the prior year's same quarter.
•Liquidity. As of July 31, 2022, cash and short term investments on the balance sheet were $471.9 million.
•Shares Outstanding. As of July 31, 2022, there were approximately 339 million shares of common stock outstanding.
For a reconciliation of GAAP to non-GAAP results, please see the tables below.
Third Quarter and Full Year Guidance
For the third fiscal quarter ending October 31, 2022, ChargePoint expects revenue of $125 million to $135  million. At the midpoint, this represents an anticipated increase of 100% 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
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Guidance for non-GAAP financial measures excludes amortization expense of acquired intangible assets, stock-based compensation expense, acquisition earn-out-related payroll tax expense, and non-recurring costs and professional services fees related to acquisitions and security offerings. ChargePoint is not able to present a reconciliation of its 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 second quarter fiscal 2023 financial results and its outlook for the third 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 123 million charging sessions have been delivered, with drivers plugging into the ChargePoint network on average every second. For more information, visit the ChargePoint pressroom, the ChargePoint Investor Relations site, or contact the ChargePoint 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 third 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 ongoing 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-Q filed with the Securities and Exchange Commission (the “SEC”) on June 7, 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
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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 registration filings, and non-cash charges related to tax liabilities.

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, earn-out-related payroll tax expense, offering costs allocated to warrant liabilities, non-recurring costs and professional services fees associated with acquisitions and registration filings, and non-cash charges related to the revaluation of warrants, tax liabilities, 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
Contacts
Investor Relations
Patrick Hamer
VP, Capital Markets and Investor Relations
Patrick.Hamer@chargepoint.com
investors@chargepoint.com
Press
AJ Gosselin
Director, Corporate Communications
AJ.Gosselin@chargepoint.com
media@chargepoint.com
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ChargePoint Holdings, Inc.
PRELIMINARY CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts; unaudited)
 
 Three Months Ended
July 31,		Six Months Ended
July 31,
 2022202120222021
Revenue
Networked charging systems$84,148 $40,874 $143,699 $67,674 
Subscriptions20,244 12,082 37,890 22,906 
Other3,900 3,165 8,336 6,051 
Total revenue108,292 56,121 189,925 96,631 
Cost of revenue
Networked charging systems74,352 35,384 130,618 59,126 
Subscriptions13,278 7,830 23,905 13,470 
Other2,509 2,130 5,142 4,041 
Total cost of revenue90,139 45,344 159,665 76,637 
Gross profit18,153 10,777 30,260 19,994 
Operating expenses
Research and development51,804 40,410 100,105 65,784 
Sales and marketing33,873 21,923 66,460 37,897 
General and administrative22,846 22,732 43,893 37,199 
Total operating expenses108,523 85,065 210,458 140,880 
Loss from operations(90,370)(74,288)(180,198)(120,886)
Interest income1,460 25 1,566 47 
Interest expense(2,928)— (3,862)(1,499)
Change in fair value of redeemable convertible preferred stock warrant liability
— — — 9,237 
Change in fair value of assumed common stock warrant liabilities— (10,421)(24)33,340 
Change in fair value of contingent earnout liability— — — 84,420 
Transaction costs expensed— — — (7,031)
Other expense, net(1,254)(189)(1,702)(174)
Net loss before income taxes(93,092)(84,873)(184,220)(2,546)
Provision for income taxes(392)65 (2,254)103 
Net loss$(92,700)$(84,938)$(181,966)$(2,649)
Cumulative undeclared dividends on redeemable convertible preferred stock— — — (4,292)
Deemed dividends attributable to vested option holders— — — (51,855)
Deemed dividends attributable to common stock warrants holders— — — (110,635)
Net loss attributable to common stockholders, basic$(92,700)$(84,938)$(181,966)$(169,431)
Gain attributable to earnout shares issued— — — (84,420)
Change in fair value of dilutive warrants— (7,427)— (53,540)
Net loss attributable to common stockholders, diluted$(92,700)$(92,365)$(181,966)$(307,391)
Net loss per share - Basic$(0.28)$(0.27)$(0.54)$(0.64)
Net loss per share - Diluted$(0.28)$(0.29)$(0.54)$(1.12)
Weighted average shares outstanding - Basic336,813,555 312,227,526 335,736,772 266,197,482 
Weighted average shares outstanding - Diluted336,813,555 313,602,100 335,736,772 275,577,000 
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ChargePoint Holdings, Inc.
PRELIMINARY CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, unaudited)
 
July 31, 2022January 31, 2022
Assets
Current assets:
Cash and cash equivalents$187,662 $315,235 
Restricted cash400 400 
Short-term investments283,880 — 
Accounts receivable, net109,922 75,939 
Inventories53,420 35,879 
Prepaid expenses and other current assets44,902 36,603 
Total current assets680,186 464,056 
Property and equipment, net36,699 34,593 
Intangible assets, net94,482 107,209 
Operating lease right-of-use assets22,571 25,535 
Goodwill205,580 218,484 
Other assets6,512 6,020 
Total assets$1,046,030 $855,897 
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable$45,145 $27,576 
Accrued and other current liabilities110,096 84,328 
Deferred revenue83,529 77,142 
Total current liabilities238,770 189,046 
Deferred revenue, noncurrent84,052 69,666 
Debt, noncurrent294,334 — 
Operating lease liabilities22,727 25,370 
Deferred tax liabilities13,383 17,697 
Other long-term liabilities1,075 7,104 
Total liabilities654,341 308,883 
Stockholders' equity (deficit):
Common stock34 33 
Additional paid-in capital1,414,301 1,366,855 
Accumulated other comprehensive loss(29,025)(8,219)
Accumulated deficit(993,621)(811,655)
Total stockholders' equity391,689 547,014 
Total liabilities and stockholders' equity$1,046,030 $855,897 
 

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ChargePoint Holdings, Inc.
PRELIMINARY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, unaudited)
 
 Six Months Ended
July 31,
 20222021
Cash flows from operating activities
Net loss$(181,966)$(2,649)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization12,476 5,576 
Non-cash operating lease cost2,451 1,963 
Stock-based compensation41,946 35,870 
Amortization of deferred contract acquisition costs1,118 829 
Change in fair value of redeemable convertible preferred stock warrant liability— (9,237)
Change in fair value of common stock warrant liabilities24 (33,340)
Change in fair value of contingent earnout liabilities— (84,420)
Transaction costs expensed— 7,031 
Other4,991 1,236 
Changes in operating assets and liabilities, net of effect of acquisitions:
Accounts receivable, net(36,178)(7,657)
Inventories(18,239)5,620 
Prepaid expenses and other assets(9,964)(9,325)
Operating lease liabilities(2,465)(953)
Accounts payable14,907 9,293 
Accrued and other liabilities16,454 3,027 
Deferred revenue20,773 15,938 
Net cash used in operating activities(133,672)(61,198)
Cash flows from investing activities
Purchases of property and equipment(8,872)(7,788)
Purchases of short term investments(284,835)— 
Cash paid for acquisitions, net of cash acquired(2,756)— 
Net cash used in investing activities(296,463)(7,788)
Cash flows from financing activities
Proceeds from the exercise of public warrants— 117,598 
Merger and PIPE financing— 511,646 
Payments of transaction costs related to Merger— (32,468)
Payment of tax withholding obligations on settlement of earnout shares— (20,894)
Proceeds from issuance of debt securities, net of discount and issuance costs293,972 — 
Repayment of borrowings— (36,051)
Proceeds from the issuance of common stock under employee equity plans, net of tax withholding5,419 1,759 
Change in driver funds and amounts due to customers4,238 — 
Net cash provided by financing activities303,629 541,590 
Effect of exchange rate changes on cash, cash equivalents, and restricted cash(1,067)(6)
Net increase in cash, cash equivalents, and restricted cash(127,573)472,598 
Cash, cash equivalents, and restricted cash at beginning of period315,635 145,891 
Cash, cash equivalents, and restricted cash at end of period$188,062 $618,489 
 
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ChargePoint Holdings, Inc.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In thousands, unaudited)
 
 Three Months Ended
July 31, 2022		Three Months Ended
July 31, 2021		Six
Months Ended
July 31, 2022		Six
Months Ended
July 31, 2021
Cost of Revenue:
GAAP cost of revenue$90,139 $45,344 $159,665 $76,637 
Stock-based compensation expense(1,341)(2,164)(2,126)(2,188)
Amortization of intangible assets(748)— (1,368)— 
Non-GAAP cost of revenue$88,050 $43,180 $156,171 $74,449 
Non-GAAP gross profit (gross margin as a percentage of revenue)$20,242 19%$12,941 23%$33,754 18%$22,182 23%
Operating Expenses:
GAAP research and development $51,804 $40,410 $100,105 $65,784 
Stock-based compensation expense(11,420)(13,682)(17,398)(14,357)
Earn-out-related taxes (1)— (12)— (358)
Acquisition-related costs (2)— (86)— (86)
Cost related to registration filings— (80)— (80)
Non-GAAP research and development (as a percentage of revenue)$40,384 37%$26,550 47%$82,707 44%$50,902 53%
GAAP sales and marketing $33,873 $21,923 $66,460 $37,897 
Stock-based compensation expense(5,285)(4,169)(7,831)(4,766)
Earn-out-related taxes (1)— (6)— (424)
Acquisition-related costs (2)— (43)— (43)
Cost related to registration filings— (40)— (40)
Amortization of intangible assets(2,207)— (4,448)— 
Non-GAAP sales and marketing (as a percentage of revenue)$26,381 24%$17,665 31%$54,182 29%$32,624 34%
GAAP general and administrative $22,846 $22,732 $43,893 $37,199 
Stock-based compensation expense(8,373)(8,278)(14,591)(14,558)
Earn-out-related taxes (1)— (378)— (713)
Acquisition-related costs (2)— (2,683)(1,011)(2,683)
Cost related to registration filings(473)(2,503)(473)(2,503)
Tax exposures(990)— (990)— 
Non-GAAP general and administrative (as a percentage of revenue)$13,010 12%$8,890 16%$26,828 14%$16,742 17%
Non-GAAP Operating Expenses (as a percentage of revenue)$79,775 74%$53,105 95%$163,717 86%$100,269 104%
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 Three Months Ended
July 31, 2022		Three Months Ended
July 31, 2021		Six
Months Ended
July 31, 2022		Six
Months Ended
July 31, 2021
Net Loss:
GAAP net loss$(92,700)$(84,938)$(181,966)$(2,649)
Stock-based compensation expense26,419 28,293 41,946 35,869 
Earn-out-related taxes (1)— 396 — 1,495 
Acquisition-related costs (2)— 2,812 1,011 2,812 
Cost related to registration filings473 2,623 473 2,623 
Tax exposures990 — 990 — 
Amortization of intangible assets2,955 — 5,816 — 
Change in fair value of preferred stock warrant liability— — — (9,237)
Change in fair value of assumed common stock warrant liability— 10,421 24 (33,340)
Change in fair value of contingent earn-out liability— — — (84,420)
Offering costs allocated to warrant liabilities— — — 7,031 
Non-GAAP net loss (as a percentage of revenue)$(61,863)(57)%$(40,393)(72)%$(131,706)(69)%$(79,816)(83)%
Provision for income taxes(392)65 (2,254)103 
Non-GAAP pre-tax net loss (as a percentage of revenue)$(62,255)(57)%$(40,328)(72)%$(133,960)(71)%$(79,714)(82)%
 
(1)Consists of employment taxes paid related to shares issued as part of the earnout.
(2)Consists of professional services fees related to acquisitions.

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