Business Wire | Mar 11, 2021 04:14PM EST

ChargePoint Reports Fourth Quarter and Fiscal 2021 Financial Results

Mar. 11, 2021

CAMPBELL, Calif.--(BUSINESS WIRE)--Mar. 11, 2021--ChargePoint Holdings, Inc. (NYSE:CHPT) (the "Company" or "ChargePoint"), a world-leading electric vehicle (EV) charging network, today announced fourth quarter and full-year fiscal 2021 financial results.

"Last year the global EV sector continued to show strength as EV sales grew despite a slow overall vehicle market, bolstered by policy trends that continued to accelerate the shift to electric in North America and Europe," said Pasquale Romano, President and CEO of ChargePoint. "In 2020, we continued to strengthen our market leadership position and expect our growth to be fueled by dozens of new EV models anticipated in 2021 across a wide range of segments and price points. With a strong balance sheet and a capital light business model, ChargePoint is well positioned to create shareholder value through broad attachment to the electrification of mobility for fleet and consumer vehicle markets."

Financial Highlights

* Revenue. For the fourth quarter that ended January 31, 2021, revenue was $42.4 million compared to $43.2 million in the fourth quarter of the prior year period. For the fiscal year that ended January 31, 2021, revenue was $146.5 million, up from $144.5 million in the prior year period. * Gross Margin. Fourth quarter GAAP (as defined below) gross margin was 21.0%, up from 20.4% in the prior year's fourth quarter. Fourth quarter non-GAAP gross margin was 21.6% compared to 20.5% in the prior year's fourth quarter. Fiscal year 2021 GAAP gross margin was 22.5%, a 10 percentage point improvement over gross margin of 12.5% in the prior year period. Non-GAAP gross margin for fiscal 2021 was 22.6%, compared to 12.5% in the prior year period. * Net Loss. Fourth quarter GAAP net loss was $90.7 million compared to $33.8 million in the fourth quarter of the prior year, primarily due to a change in fair value of the company's redeemable convertible preferred stock warrant liability. Fourth quarter non-GAAP net loss was $33.6 million compared to $32.5 million in the prior year's fourth quarter. Fiscal year 2021 GAAP net loss was $197.0 million compared to $134.3 million in the prior year period, primarily reflecting the fiscal fourth quarter warrant charge. Non-GAAP net loss for fiscal 2021 was $117.8 million compared to $129.9 million in the prior year period. * Liquidity. As of January 31, 2021, cash on the balance sheet was $145 million. At the close of the business combination on February 26, 2021, cash on the balance sheet was $615 million. * Shares Outstanding. At the close of the business combination on February 26, 2021, there were 277.8 million shares of common stock outstanding.

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

Fiscal 2022 Guidance

ChargePoint provides guidance based on current market conditions and expectations. For the first quarter ending April 30, 2021, which typically experiences seasonally lower networked station sales compared to the fourth quarter, ChargePoint expects revenue of $35 - $40 million. The Company expects revenue for fiscal 2022 of $195 - $205 million, consistent with its previously published estimates, and representing 37% year-over-year growth at the midpoint.

Conference Call Information

ChargePoint will host a webcast today at 1:30 p.m. PST/4:30 p.m. EST to review its fourth quarter and fiscal 2021 financial results and its outlook for the first quarter of fiscal 2022 and fiscal 2022. A question and answer session will follow prepared remarks.

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 the new fueling network to move all 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 most complete portfolio of charging solutions available today. ChargePoint's cloud subscription platform and software-defined charging hardware are designed to include options for a wide range of charging scenarios from home and multifamily to workplace, parking, hospitality, retail and fleets. Today, one ChargePoint account provides access to hundreds-of-thousands of places to charge in North America and Europe. To date, more than 89 million charging sessions have been delivered, with drivers plugging into the ChargePoint network approximately every two seconds. For more information, visit the ChargePoint pressroom, the ChargePoint Investor Relations site, or contact ChargePoint's North American or European press offices or the Investor Relations team.

Forward-Looking Statements

This press release contains forward-looking statements that involve risks, uncertainties, and assumptions including statements regarding our financial outlook for the first fiscal quarter of 2022 and fiscal 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, political, economic, and business conditions; our limited operating history as a public company; 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; 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 8-K filed with the Securities and Exchange Commission (the "SEC") on March 1, 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, share-based compensation expense, and non-recurring costs associated with a restructuring.

Non-GAAP Net Loss. ChargePoint defines non-GAAP net loss as net loss, excluding amortization expense of acquired intangible assets, share-based compensation-expense and the associated share-based payroll tax expense, non-recurring costs associated with restructuring, acquisitions and litigation settlements, and non-cash charges related to the revaluation of warrants 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 share-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, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts; unaudited)

Three Months Ended Twelve Months Ended

January 31, January 31,

2021 2020 2021 2020

Revenue Networked $ 28,303 $ 29,873 $ 91,893 $ 101,012 charging systems Subscriptions 10,965 7,865 40,563 28,930

Other 3,123 5,506 14,034 14,573

Total 42,391 43,244 146,490 144,515 revenueCost of revenue Networked 25,677 28,056 87,083 105,940 charging systems Subscriptions 5,838 4,725 20,385 16,244

Other 1,973 1,626 6,073 4,289

Total 33,488 34,407 113,541 126,473 cost of revenueGross profit 8,903 8,837 32,949 18,042

Operating expenses Research and 20,946 19,233 75,017 69,464 development Sales and 15,700 15,766 53,002 56,997 marketing General and 7,577 6,294 25,922 23,945 administrative Total 44,223 41,293 153,941 150,406 operating expensesLoss from (35,320 ) ) (120,992 ) (132,364 )operations (32,456

17 508 Interest income 315 3,245

) ) ) )Interest expense (810 (863 (3,253 (3,544

Change in fairvalue of redeemable (54,824 ) ) ) )convertible (219 (73,125 (875preferred stockwarrant liabilityOther income ) )(expense), net 185 (655 229 (565

Net loss before (90,752 ) ) (196,826 ) (134,103 )income taxes (33,685

Provision for ) 126 income taxes (5 198 224

(90,747 ) ) (197,024 ) (134,327 )Net loss $ $ (33,811 $ $

Accretion of beneficial conversion - ) - feature of - (60,377 redeemable convertible preferred stock Cumulative undeclared dividends on (12,839 ) - (16,799 ) - redeemable convertible preferred stockNet loss (103,586 ) ) (274,200 ) (134,327 )attributable to $ $ (33,811 $ $common stockholdersNet loss per share attributable tocommon ) ) ) )stockholders, basic $ (5.29 $ (3.05 $ (18.08 $ (15.05and dilutedWeighted-averageshares used in computing net losspershare attributable to common 19,563,550 11,085,077 15,168,335 8,924,129 stockholders, basicand diluted ChargePoint, Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, unaudited)

January 31, January 31, 2021 2020

Assets Current assets: Cash and cash $ 145,491 $ 72,753 equivalents Restricted cash 400 400

47,037 Short-term investments -

Accounts receivable, 35,075 38,488 net Inventories 33,592 25,419

Prepaid expenses and 12,074 7,221 other current assets Total current 226,632 191,318 assetsProperty and equipment, 29,988 27,941 netOperating lease 21,817 10,269 right-of-use assetsGoodwill 1,215 1,215

Other assets 10,468 3,448

Total assets $ 290,120 $ 234,191

Liabilities, RedeemableConvertible Preferred Stock, and Stockholders'DeficitCurrent liabilities: Accounts payable $ 19,784 $ 19,631

Accrued and other 47,162 37,659 current liabilities Deferred revenue 40,934 39,408

10,208 Debt, current -

Total current 118,088 96,698 liabilities Deferred revenue, 48,896 33,266 noncurrent Debt, noncurrent 24,686 34,261

Operating lease 22,459 8,230 liabilities Redeemable convertible 75,843 2,718 preferred stock warrant liability Other long-term 972 798 liabilities Total 290,944 175,971 liabilities Redeemable convertible 615,697 520,241 preferred stockStockholders' deficit: Common stock 2 1

Additional paid-in 62,736 20,331 capital Accumulated other 155 37 comprehensive income (loss) Accumulated deficit (679,414 ) (482,390 )

Total (616,521 ) (462,021 ) stockholders' deficit Total liabilities, redeemable convertible $ 290,120 $ 234,191 preferred stock, and stockholders' deficitChargePoint, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands, unaudited)

Year Ended January 31,

2021 2020

Cash flows from operating activities Net loss $ (197,024 ) $ (134,327 )

Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 10,083 7,698

Non-cash operating lease cost 3,762 3,121

Stock-based compensation 4,947 2,937

Amortization of deferred contract acquisition 1,206 675 costs Change in fair value of redeemable 73,125 875 convertible preferred stock warrant liability Inventory reserves 1,412 1,425

Other 446 589

Changes in operating assets and liabilities, net of effect of acquisitions: Accounts receivable, net 3,292 (8,702 )

Inventories (9,585 ) (1,472 )

Prepaid expenses and other assets (8,914 ) (2,961 )

Operating lease liabilities (2,815 ) (1,181 )

Accounts payable (493 ) 15,704

Accrued and other liabilities 11,556 93

Deferred revenue 17,156 27,590

Net cash used in operating (91,846 ) (87,936 ) activitiesCash flows from investing activities Purchases of property and equipment (11,484 ) (14,885 )

Purchases of investments - (179,514 )

Maturities of investments 47,014 132,500

Net cash provided by (used in) 35,530 (61,899 ) investing activitiesCash flows from financing activities Proceeds from issuance of redeemable 95,456 14,756 convertible preferred stock, net of issuance costsProceeds from issuance of common stock 31,547 185 warrants, net of issuance costsPayments made toward deferred offering costs (4,003 ) -

Proceeds from exercises of vested and unvested 5,913 2,217 stock options Net cash provided by financing 128,913 17,158 activities Effect of exchange rate changes on cash, cash 141 132 equivalents, and restricted cash Net increase (decrease) in cash, cash 72,738 (132,545 ) equivalents, and restricted cashCash, cash equivalents, and restricted cash at 73,153 205,698 beginning of periodCash, cash equivalents, and restricted cash at $ 145,891 $ 73,153 end of periodChargePoint, Inc.RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES(In thousands, except per share amounts; unaudited)Three Months Ended

Three Months Ended

Twelve Months Ended

Twelve Months Ended

January 31, 2021

January 31, 2020

January 31, 2021

January 31, 2020

Reconciliation of GAAP gross profit (margin) to Non-GAAP gross profit (margin):GAAP gross profit$8,903

$8,837

$32,949

$18,042

Stock-based compensation expense22

10

115

39

Restructuring costs (1)214

-

114

-

Non-GAAP gross profit (margin)$9,139

22

%

$8,847

20

%

$33,178

23

%

$18,081

13

%

Reconciliation of GAAP Net Loss to Non-GAAP Net Loss:GAAP net loss$(90,747

)

$(33,811

)

$(197,024

)

$(134,327

)

Amortization of acquired intangible assets-

351

-

568

Stock-based compensation expense1,639

780

4,947

2,937

Restructuring costs (1)674

-

1,149

-

Change in fair value of preferred stock warrant liability54,824

219

73,125

875

Non-GAAP net loss (as a percentage of revenue)$(33,610

)

-79

%

$(32,461

)

-75

%

$(117,803

)

-80

%

$(129,947

)

-90

%

(1) Consists of restructuring costs for severances and related termination costs View source version on businesswire.com: https://www.businesswire.com/news/home/20210311006013/en/

CONTACT: Press Darryll Harrison Senior Director, Global Communications and Social Media 669-237-3380 media@chargepoint.com

CONTACT: Investor Relations Dan Oppenheim, Financial Profiles, Inc. 310-622-8235

CONTACT: Megan McGrath, Financial Profiles, Inc. 310-622-8248 investors@chargepoint.com