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
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
) %
- Consists of employment taxes paid related to shares issued as
part of the earnout.
- Consists of professional services fees related to
acquisitions.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220531005958/en/
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
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