Business Wire | Sep 1, 2021 04:07PM EDT

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

Sep. 01, 2021

CAMPBELL, Calif.--(BUSINESS WIRE)--Sep. 01, 2021--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 hastobe 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 hastobe 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 Six Months Ended July 31, July 31,

2021 2020 2021 2020

Revenue

Networked charging $ 40,874 $ 21,368 $ 67,674 $ 41,025 systems

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 35,384 20,408 59,126 39,024 systems

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 40,410 17,126 65,784 35,152 development

Sales and marketing 21,923 10,966 37,897 25,167

General and 22,732 4,466 37,199 9,555 administrative

Total operating 85,065 32,558 140,880 69,874 expenses

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 valueof redeemableconvertible preferred - (11,516 ) 9,237 (10,981 )stock warrantliability

Change in fair valueof assumed common (10,421 ) - 33,340 - stock warrantliabilities

Change in fair valueof contingent earnout - - 84,420 - liability

Transaction costs - - (7,031 ) - expensed

Other (expense) (189 ) 563 (174 ) 131 income, net

Net loss before income (84,873 ) (35,239 ) (2,546 ) (65,280 )taxes

Provision for income 65 48 103 105 taxes

Net loss $ (84,938 ) $ (35,287 ) $ (2,649 ) $ (65,385 )

Accretion ofbeneficial conversionfeature of redeemable - (58,625 ) - (58,625 )convertible preferredstock

Cumulative undeclareddividends on - - (4,292 ) - redeemable convertiblepreferred stock

Deemed dividendsattributable to vested - - (51,855 ) - option holders

Deemed dividendsattributable to common - - (110,635 ) - stock warrants holders

Net loss attributableto common $ (84,938 ) $ (93,912 ) $ (169,431 ) $ (124,010 )stockholders, basic

Gain attributable - - (84,420 ) - earnout shares issued

Change in fair value (7,427 ) - (53,540 ) - of dilutive warrants

Net loss attributableto common $ (92,365 ) $ (93,912 ) $ (307,391 ) $ (124,010 )stockholders, diluted

Net loss per share - $ (0.27 ) $ (6.97 ) $ (0.64 ) $ (9.67 )Basic

Net loss per share - $ (0.29 ) $ (6.97 ) $ (1.12 ) $ (9.67 )Diluted

Weighted averageshares outstanding - 312,227,526 13,468,677 266,197,482 12,822,481 Basic

Weighted averageshares outstanding - 313,602,100 13,468,677 275,577,000 12,822,481 Diluted

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 BALANCE SHEETS

(In thousands, unaudited)

July 31, January 31, 2021 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 - 75,843 liability

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 $ 770,588 $ 290,120 stock, and stockholders' equity (deficit)

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.

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 (9,237 ) - preferred stock warrant liability

Change in fair value of common stock warrant (33,340 ) 10,981 liabilities

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 - 92,433 preferred stock

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 (20,894 ) - earnout shares

Repayment of borrowings (36,051 ) -

Proceeds from exercises of vested and unvested stock 1,759 1,542 options

Net cash provided by financing activities 541,590 125,365

Effect of exchange rate changes on cash, cash (6 ) 36 equivalents, and restricted cash

Net increase in cash, cash equivalents, and restricted 472,598 116,384 cash

Cash, cash equivalents, and restricted cash at 145,891 73,153 beginning of period

Cash, cash equivalents, and restricted cash at end of $ 618,489 $ 189,537 period

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

)%

ChargePoint Holdings, Inc.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(In thousands, except per share amounts; unaudited)

Three Months Ended Three Months Ended Six Six July 31, 2021 July 31, 2020 Months Ended Months Ended July 31, 2021 July 31, 2020

Reconciliation ofGAAP gross profit(margin) to non-GAAP grossprofit (margin):

GAAP gross profit $ 10,777 19.2 % $ 9,028 25.8 % $ 19,994 20.7 % $ 16,792 24.8 %(margin)

Stock-basedcompensation 2,164 41 2,188 64 expense

Restructuring costs - (87 ) - (51 ) (1)

Non-GAAP gross $ 12,941 23.1 % $ 8,982 25.7 % $ 22,182 23.0 % $ 16,805 24.8 %profit (margin)

Reconciliation ofGAAP net loss to non-GAAP net loss:

GAAP net loss (as a ) ) ) )percentage of $ (84,938 ) (151.3 % $ (35,287 ) (100.9 % $ (2,649 ) (2.7 % $ (65,385 ) (96.5 %revenue)

Stock-basedcompensation 28,293 1,190 35,870 2,100 expense

Restructuring costs - 31 - 722 (1)

Earn-out-related 396 1,495 taxes (2)

Change in fairvalue of preferred - 11,516 (9,237 ) 10,981 stock warrantliability

Change in fairvalue of assumed 10,421 - (33,340 ) - common stockwarrant liability

Change in fairvalue of contingent - - (84,420 ) - earn-out liability

Offering costsallocated to - - 7,031 - warrant liabilities

Acquisition-related 2,812 - 2,812 costs (3)

Cost related to 2,623 - 2,623 secondary offering

Non-GAAP net loss ) ) ) )(as a percentage of $ (40,393 ) (72.0 % $ (22,550 ) (64.5 % $ (79,815 ) (82.6 % $ (51,582 ) (76.2 %revenue)

(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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210901005949/en/

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

CONTACT: Press Olivia Marcinka Communications Specialist Olivia.marcinka@chargepoint.com media@chargepoint.com