ChargePoint Reports Second Quarter Fiscal 2022 Financial Results; Raises Full Year Revenue Guidance

CAMPBELL, Calif.--(BUSINESS WIRE)--

ChargePoint Holdings, Inc. (NYSE:CHPT) (“ChargePoint”), a leading electric vehicle (EV) charging network, today reported results for its second quarter of fiscal 2022 ended July 31, 2021.

ChargePoint’s strong second quarter results demonstrate our continued growth and leadership in the electric revolution,” said Pasquale Romano, President and CEO of ChargePoint. “We achieved record revenue, significantly grew our commercial, fleet and residential businesses, launched a charging integration with Mercedes, announced our agreement to acquire e-mobility technology provider has·to·be and acquired eBus and commercial vehicle management provider ViriCiti.”

Second Quarter Fiscal 2022 Financial Overview

  • Revenue. For the second quarter, revenue was $56.1 million, an increase of 61% from $35.0 million in the prior year’s same quarter. Networked charging revenue for the second quarter was $40.9 million, an increase of 91% from $21.4 million in the prior year’s same quarter. Revenue growth was significant in North America and Europe across the commercial, fleet and residential verticals. Commercial customers of all types are investing in charging for their consumers, employees and visitors and demand for residential products has grown as vehicle arrivals accelerate.

  • Gross Margin. Second quarter GAAP gross margin was 19.2%, down from 25.8% in the prior year's same quarter primarily as a result of increased stock-based compensation expense, lower regulatory credits, product mix, and increased supply chain costs, partially offset by product cost improvements. Second quarter non-GAAP gross margin, which primarily excludes stock-based compensation expense, was 23.1% compared to 25.7% in the prior year's same quarter.

  • Net Income/Loss. Second quarter GAAP net loss was $84.9 million, which included a $10.4 million loss from the change in fair value of warrant liabilities and $28.3 million in stock-based compensation expense. Non-GAAP net loss, which excludes stock-based compensation expense and other items, in the second quarter was $40.4 million as compared to $22.6 million in the prior year's same quarter.

  • Liquidity. As of July 31, 2021, cash on the balance sheet was $618.5 million. During the quarter approximately 4.4 million warrants were exercised for $44.3 million in cash.

  • Shares Outstanding. As of July 31, 2021, there were approximately 322 million shares of common stock outstanding.

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

Third Quarter and Full-year Guidance

ChargePoint expects revenue of $60 - $65 million for its third quarter ending October 31, 2021 and is raising its full year revenue outlook to $225 - $235 million, from $195 - $205 million, for the fiscal year ending January 31, 2022.

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 2022 financial results and its outlook for the third quarter of and full-year fiscal 2022.

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 available today. ChargePoint’s 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 92 million charging sessions have been delivered, with drivers plugging into the ChargePoint network every two seconds 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 third fiscal quarter ending October 31, 2021 and fiscal year ending January 31, 2022. There are a significant number of factors that could cause actual results to differ materially from the statements made in this press release, including: developments and changes in the general market; the continuing impact of COVID-19, including in our business and those of our customers and suppliers; political, economic, and business conditions; our limited operating history as a public company; our ability as an organization to successfully integrate ViriCiti and has·to·be and 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 and expense increases; unexpected delays in new product introductions; our ability to expand in Europe; the need to attract additional fleet operators as customers; potential adverse effects on our revenue and gross margins 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 11, 2021, 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”). The Company 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 the Company’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 the Company’s consolidated financial statements prepared in accordance with GAAP. A reconciliation of the company’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 Margin. ChargePoint defines non-GAAP gross margin as gross margin excluding amortization expense of acquired intangible assets, stock-based compensation expense, and non-recurring costs associated with a restructuring.

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, non-recurring costs associated with restructuring, offering costs allocated to warrant liabilities or for share offerings, professional services fees related to acquisitions, 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.

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 the Company’s operating results.

CHPT-IR

ChargePoint Holdings, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts; unaudited)

 

 

Three Months Ended

July 31,

Six Months Ended

July 31,

 

2021

2020

2021

2020

Revenue

 

 

 

 

Networked charging systems

$

40,874

 

$

21,368

 

$

67,674

 

$

41,025

 

Subscriptions

12,082

 

9,811

 

22,906

 

18,815

 

Other

3,165

 

3,778

 

6,051

 

7,893

 

Total revenue

56,121

 

34,957

 

96,631

 

67,733

 

Cost of revenue

 

 

 

 

Networked charging systems

35,384

 

20,408

 

59,126

 

39,024

 

Subscriptions

7,830

 

4,452

 

13,470

 

9,225

 

Other

2,130

 

1,069

 

4,041

 

2,692

 

Total cost of revenue

45,344

 

25,929

 

76,637

 

50,941

 

Gross profit

10,777

 

9,028

 

19,994

 

16,792

 

Operating expenses

 

 

 

 

Research and development

40,410

 

17,126

 

65,784

 

35,152

 

Sales and marketing

21,923

 

10,966

 

37,897

 

25,167

 

General and administrative

22,732

 

4,466

 

37,199

 

9,555

 

Total operating expenses

85,065

 

32,558

 

140,880

 

69,874

 

Loss from operations

(74,288

)

(23,530

)

(120,886

)

(53,082

)

Interest income

25

 

37

 

47

 

280

 

Interest expense

 

(793

)

(1,499

)

(1,628

)

Change in fair value of redeemable convertible preferred stock warrant liability

 

(11,516

)

9,237

 

(10,981

)

Change in fair value of assumed common stock warrant liabilities

(10,421

)

 

33,340

 

 

Change in fair value of contingent earnout liability

 

 

84,420

 

 

Transaction costs expensed

 

 

(7,031

)

 

Other (expense) income, net

(189

)

563

 

(174

)

131

 

Net loss before income taxes

(84,873

)

(35,239

)

(2,546

)

(65,280

)

Provision for income taxes

65

 

48

 

103

 

105

 

Net loss

$

(84,938

)

$

(35,287

)

$

(2,649

)

$

(65,385

)

Accretion of beneficial conversion feature of redeemable convertible preferred stock

 

(58,625

)

 

(58,625

)

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

$

(84,938

)

$

(93,912

)

$

(169,431

)

$

(124,010

)

Gain attributable earnout shares issued

 

 

(84,420

)

 

Change in fair value of dilutive warrants

(7,427

)

 

(53,540

)

 

Net loss attributable to common stockholders, diluted

$

(92,365

)

$

(93,912

)

$

(307,391

)

$

(124,010

)

Net loss per share - Basic

$

(0.27

)

$

(6.97

)

$

(0.64

)

$

(9.67

)

Net loss per share - Diluted

$

(0.29

)

$

(6.97

)

$

(1.12

)

$

(9.67

)

Weighted average shares outstanding - Basic

312,227,526

 

13,468,677

 

266,197,482

 

12,822,481

 

Weighted average shares outstanding - Diluted

313,602,100

 

13,468,677

 

275,577,000

 

12,822,481

 

ChargePoint Holdings, Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, unaudited)

 

 

July 31, 2021

 

January 31, 2021

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

618,089

 

 

$

145,491

 

Restricted cash

400

 

 

400

 

Accounts receivable, net

42,708

 

 

35,075

 

Inventories

27,916

 

 

33,592

 

Prepaid expenses and other current assets

22,138

 

 

12,074

 

Total current assets

711,251

 

 

226,632

 

Property and equipment, net

32,265

 

 

29,988

 

Operating lease right-of-use assets

20,834

 

 

21,817

 

Goodwill

1,215

 

 

1,215

 

Other assets

5,023

 

 

10,468

 

Total assets

$

770,588

 

 

$

290,120

 

Liabilities, Redeemable Convertible Preferred Stock, and Stockholders' Deficit

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

28,416

 

 

$

19,784

 

Accrued and other current liabilities

51,980

 

 

47,162

 

Deferred revenue

47,769

 

 

40,934

 

Debt, current

 

 

10,208

 

Total current liabilities

128,165

 

 

118,088

 

Deferred revenue, noncurrent

58,000

 

 

48,896

 

Debt, noncurrent

 

 

24,686

 

Operating lease liabilities

21,582

 

 

22,459

 

Common stock warrant liability

26,868

 

 

 

Redeemable convertible preferred stock warrant liability

 

 

75,843

 

Other long-term liabilities

961

 

 

972

 

Total liabilities

235,576

 

 

290,944

 

Redeemable convertible preferred stock

 

 

615,697

 

Stockholders' equity (deficit):

 

 

 

Common stock

32

 

 

2

 

Additional paid-in capital

1,216,893

 

 

62,736

 

Accumulated other comprehensive income

150

 

 

155

 

Accumulated deficit

(682,063

)

 

(679,414

)

Total stockholders' equity (deficit)

535,012

 

 

(616,521

)

Total liabilities, redeemable convertible preferred stock, and stockholders' equity (deficit)

$

770,588

 

 

$

290,120

 

ChargePoint Holdings, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands, unaudited)

 

 

Six Months Ended

July 31,

 

2021

 

2020

Cash flows from operating activities

 

 

 

Net loss

$

(2,649

)

 

$

(65,385

)

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

 

 

 

Depreciation and amortization

5,576

 

 

4,684

 

Non-cash operating lease cost

1,963

 

 

1,749

 

Stock-based compensation

35,870

 

 

2,100

 

Amortization of deferred contract acquisition costs

829

 

 

538

 

Change in fair value of redeemable convertible preferred stock warrant liability

(9,237

)

 

 

Change in fair value of common stock warrant liabilities

(33,340

)

 

10,981

 

Change in fair value of contingent earnout liabilities

(84,420

)

 

 

Transaction costs expensed

7,031

 

 

 

Other

1,236

 

 

683

 

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

 

 

 

Accounts receivable, net

(7,657

)

 

16,188

 

Inventories

5,620

 

 

(7,427

)

Prepaid expenses and other assets

(9,325

)

 

(3,335

)

Operating lease liabilities

(953

)

 

(2,031

)

Accounts payable

9,293

 

 

(9,324

)

Accrued and other liabilities

3,027

 

 

(4,054

)

Deferred revenue

15,938

 

 

4,564

 

Net cash used in operating activities

(61,198

)

 

(50,069

)

Cash flows from investing activities

 

 

 

Purchases of property and equipment

(7,788

)

 

(5,962

)

Maturities of investments

 

 

47,014

 

Net cash (used in) provided by investing activities

(7,788

)

 

41,052

 

Cash flows from financing activities

 

 

 

Proceeds from issuance of redeemable convertible preferred stock

 

 

92,433

 

Proceeds from the exercise of public warrants

117,598

 

 

31,390

 

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

)

 

 

Repayment of borrowings

(36,051

)

 

 

Proceeds from exercises of vested and unvested stock options

1,759

 

 

1,542

 

Net cash provided by financing activities

541,590

 

 

125,365

 

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

(6

)

 

36

 

Net increase in cash, cash equivalents, and restricted cash

472,598

 

 

116,384

 

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

145,891

 

 

73,153

 

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

$

618,489

 

 

$

189,537

 

ChargePoint Holdings, Inc.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(In thousands, except per share amounts; unaudited)

 

 

 

Three Months Ended

July 31, 2021

 

Three Months Ended

July 31, 2020

 

Six

Months Ended

July 31, 2021

 

Six

Months Ended

July 31, 2020

Reconciliation of GAAP gross profit (margin) to non-GAAP gross profit (margin):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP gross profit (margin)

 

$

10,777

 

 

19.2

%

 

$

9,028

 

 

25.8

%

 

$

19,994

 

 

20.7

%

 

$

16,792

 

 

24.8

%

Stock-based compensation expense

 

2,164

 

 

 

 

41

 

 

 

 

2,188

 

 

 

 

64

 

 

 

Restructuring costs (1)

 

 

 

 

 

(87

)

 

 

 

 

 

 

 

(51

)

 

 

Non-GAAP gross profit (margin)

 

$

12,941

 

 

23.1

%

 

$

8,982

 

 

25.7

%

 

$

22,182

 

 

23.0

%

 

$

16,805

 

 

24.8

%

Reconciliation of GAAP net loss to non-GAAP net loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP net loss (as a percentage of revenue)

 

$

(84,938

)

 

(151.3

)%

 

$

(35,287

)

 

(100.9

)%

 

$

(2,649

)

 

(2.7

)%

 

$

(65,385

)

 

(96.5

)%

Stock-based compensation expense

 

28,293

 

 

 

 

1,190

 

 

 

 

35,870

 

 

 

 

2,100

 

 

 

Restructuring costs (1)

 

 

 

 

 

31

 

 

 

 

 

 

 

 

722

 

 

 

Earn-out-related taxes (2)

 

396

 

 

 

 

 

 

 

 

1,495

 

 

 

 

 

 

 

Change in fair value of preferred stock warrant liability

 

 

 

 

 

11,516

 

 

 

 

(9,237

)

 

 

 

10,981

 

 

 

Change in fair value of assumed common stock warrant liability

 

10,421

 

 

 

 

 

 

 

 

(33,340

)

 

 

 

 

 

 

Change in fair value of contingent earn-out liability

 

 

 

 

 

 

 

 

 

(84,420

)

 

 

 

 

 

 

Offering costs allocated to warrant liabilities

 

 

 

 

 

 

 

 

 

7,031

 

 

 

 

 

 

 

Acquisition-related costs (3)

 

2,812

 

 

 

 

 

 

 

 

2,812

 

 

 

 

 

 

 

Cost related to secondary offering

 

2,623

 

 

 

 

 

 

 

 

2,623

 

 

 

 

 

 

 

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

 

$

(40,393

)

 

(72.0

)%

 

$

(22,550

)

 

(64.5

)%

 

$

(79,815

)

 

(82.6

)%

 

$

(51,582

)

 

(76.2

)%

(1)

Consists of restructuring costs for severances and related termination costs.

(2)

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

(3)

Consists of professional services fees related to acquisitions.

 

Source : https://www.businesswire.com/news/home/20210901005949/en/ChargePoint-Reports-Second-Quarter-Fiscal-2022-Financial-Results-Raises-Full-Year-Revenue-Guidance

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