Business Wire | Dec 7, 2021 04:07PM EST

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

Dec. 07, 2021

CAMPBELL, Calif.--(BUSINESS WIRE)--Dec. 07, 2021--ChargePoint Holdings, Inc. (NYSE:CHPT) ("ChargePoint"), a leading electric vehicle (EV) charging network, today reported results for its third quarter of fiscal 2022 ended October 31, 2021.

"ChargePoint has delivered another strong quarter, as we have continued to scale our commercial, fleet and residential verticals across two continents," said Pasquale Romano, President and CEO of ChargePoint. "The investments we have made over many years have enabled us to capture charging demand from customers preparing for an electric future. This quarter we added more customers at an accelerated rate, while also successfully closing two acquisitions."

Third Quarter Fiscal 2022 Financial Overview

* Revenue. For the third quarter, revenue was $65.0 million, an increase of 79% from $36.4 million in the prior year's same quarter. Networked charging revenue for the third quarter was $47.5 million, an increase of 111% from $22.6 million and subscription revenue was $13.4 million, up 24% from $10.8 million in the prior year's same quarter. Revenue growth was significant in North America and Europe across ChargePoint's commercial, fleet and residential verticals. * Gross Margin. Third quarter GAAP gross margin was 25%, up from 20% in the prior year's same quarter primarily as a result of product cost improvements and the impact of acquisitions. Third quarter non-GAAP gross margin, which primarily excludes stock-based compensation expense and amortization from acquired intangible assets, was 27% compared to 20% in the prior year's same quarter. * Net Income/Loss. Third quarter GAAP net loss was $69.4 million, which included a $2.4 million loss from the change in fair value of warrant liabilities and $16.0 million in stock-based compensation expense. Non-GAAP pre-tax net loss, which excludes stock-based compensation expense and other items, in the third quarter was $47.3 million as compared to $32.5 million in the prior year's same quarter. * Liquidity. As of October 31, 2021, cash on the balance sheet was $365.9 million following approximately $210 million of cash payments for both acquisitions. * Shares Outstanding. As of October 31, 2021, there were approximately 331 million shares of common stock outstanding.

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

Fourth Quarter and Full-year Guidance

ChargePoint expects revenue of $73 - $78 million for its fourth quarter ending January 31, 2022, and is raising its full year revenue outlook to $235 - $240 million, from $225 - $235 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 third quarter fiscal 2022 financial results and its outlook for the fourth 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 98 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 fourth fiscal quarter 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 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 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 September 10, 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 Profit (Gross Margin). ChargePoint defines non-GAAP gross profit as gross profit excluding amortization expense of acquired intangible assets, stock-based compensation expense, and non-recurring costs associated with restructuring. 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, non-recurring costs associated with restructuring and professional services fees related to 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, non-recurring costs associated with restructuring, offering costs allocated to warrant liabilities or for share offerings, professional services fees related to 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 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 Nine Months Ended October 31, October31,

2021 2020 2021 2020

Revenue

Networked charging $ 47,511 $ 22,566 $ 115,185 $ 63,591 systems

Subscriptions 13,397 10,782 36,303 29,597

Other 4,126 3,017 10,177 10,910

Total revenue 65,034 36,365 161,665 104,098

Cost of revenue

Networked charging 38,720 22,382 97,846 61,406 systems

Subscriptions 7,637 5,322 21,107 14,547

Other 2,621 1,408 6,662 4,100

Total cost of 48,978 29,112 125,615 80,053 revenue

Gross profit 16,056 7,253 36,050 24,045

Operating expenses

Research and 36,751 18,919 102,535 54,071 development

Sales and marketing 24,361 12,134 62,258 37,301

General and 20,268 8,790 57,467 18,345 administrative

Total operating 81,380 39,843 222,260 109,717 expenses

Loss from (65,324 ) (32,590 ) (186,210 ) (85,672 )operations

Interest income 25 18 72 298

Interest expense (3 ) (815 ) (1,502 ) (2,443 )

Change in fairvalue of redeemableconvertible - (7,320 ) 9,237 (18,301 )preferred stockwarrant liability

Change in fairvalue of assumed (2,429 ) - 30,911 - common stockwarrant liabilities

Change in fairvalue of contingent - - 84,420 - earnout liability

Transaction costs - - (7,031 ) - expensed

Other (expense) (2,025 ) (85 ) (2,200 ) 46 income, net

Net loss before (69,756 ) (40,792 ) (72,303 ) (106,072 )income taxes

Provision for (314 ) 98 (211 ) 203 income taxes

Net loss $ (69,442 ) $ (40,890 ) $ (72,092 ) $ (106,275 )

Accretion ofbeneficialconversion feature - (1,752 ) - (60,377 )of redeemableconvertiblepreferred stock

Cumulativeundeclareddividends on - (3,960 ) (4,292 ) (3,960 )redeemableconvertiblepreferred stock

Deemed dividendsattributable to - - (51,855 ) - vested optionholders

Deemed dividendsattributable to - - (110,635 ) - common stockwarrants holders

Net lossattributable to $ (69,442 ) $ (46,602 ) $ (238,874 ) $ (170,612 )commonstockholders, basic

Gain attributableearnout shares - - (84,420 ) - issued

Change in fairvalue of dilutive - - (51,106 ) - warrants

Net lossattributable tocommon $ (69,442 ) $ (46,602 ) $ (374,400 ) $ (170,612 )stockholders,diluted

Net loss per share $ (0.21 ) $ (3.11 ) $ (0.84 ) $ (12.59 )- Basic

Net loss per share $ (0.21 ) $ (3.11 ) $ (1.28 ) $ (12.59 )- Diluted

Weighted averageshares outstanding 325,034,920 14,990,866 286,025,483 13,550,552 - Basic

Weighted averageshares outstanding 325,034,920 14,990,866 292,575,318 13,550,552 - Diluted

ChargePoint Holdings, Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, unaudited)

October 31, 2021

January 31, 2021

Assets

Current assets:

Cash and cash equivalents

$

365,491

$

145,491

Restricted cash

400

400

Accounts receivable, net

66,104

35,075

Inventories

29,893

33,592

Prepaid expenses and other current assets

32,695

12,074

Total current assets

494,583

226,632

Property and equipment, net

34,726

29,988

Intangible assets, net

147,439

-

Operating lease right-of-use assets

23,621

21,817

Goodwill

196,098

1,215

Other assets

12,620

10,468

Total assets

$

909,087

$

290,120

Liabilities, Redeemable Convertible Preferred Stock, and Stockholders' Deficit

Current liabilities:

Accounts payable

$

32,084

$

19,784

Accrued and other current liabilities

76,473

47,162

Deferred revenue

58,877

40,934

Debt, current

-

10,208

Total current liabilities

167,434

118,088

Deferred revenue, noncurrent

62,364

48,896

Debt, noncurrent

-

24,686

Operating lease liabilities

23,795

22,459

Deferred Tax Liabilities

35,962

-

Common stock warrant liability

29,282

-

Redeemable convertible preferred stock warrant liability

-

75,843

Other long-term liabilities

4,852

972

Total liabilities

323,689

290,944

Redeemable convertible preferred stock

-

615,697

Stockholders' equity (deficit):

Common stock

33

2

Additional paid-in capital

1,337,247

62,736

Accumulated other comprehensive income (loss)

(376

)

155

Accumulated deficit

(751,506

)

(679,414

)

Total stockholders' equity (deficit)

585,398

(616,521

)

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

$

909,087

$

290,120

ChargePoint Holdings, Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, unaudited)

October 31, January 31, 2021 2021

Assets

Current assets:

Cash and cash equivalents $ 365,491 $ 145,491

Restricted cash 400 400

Accounts receivable, net 66,104 35,075

Inventories 29,893 33,592

Prepaid expenses and other current assets 32,695 12,074

Total current assets 494,583 226,632

Property and equipment, net 34,726 29,988

Intangible assets, net 147,439 -

Operating lease right-of-use assets 23,621 21,817

Goodwill 196,098 1,215

Other assets 12,620 10,468

Total assets $ 909,087 $ 290,120

Liabilities, Redeemable Convertible Preferred Stock, and Stockholders' Deficit

Current liabilities:

Accounts payable $ 32,084 $ 19,784

Accrued and other current liabilities 76,473 47,162

Deferred revenue 58,877 40,934

Debt, current - 10,208

Total current liabilities 167,434 118,088

Deferred revenue, noncurrent 62,364 48,896

Debt, noncurrent - 24,686

Operating lease liabilities 23,795 22,459

Deferred Tax Liabilities 35,962 -

Common stock warrant liability 29,282 -

Redeemable convertible preferred stock warrant - 75,843 liability

Other long-term liabilities 4,852 972

Total liabilities 323,689 290,944

Redeemable convertible preferred stock - 615,697

Stockholders' equity (deficit):

Common stock 33 2

Additional paid-in capital 1,337,247 62,736

Accumulated other comprehensive income (loss) (376 ) 155

Accumulated deficit (751,506 ) (679,414 )

Total stockholders' equity (deficit) 585,398 (616,521 )

Total liabilities, redeemable convertible preferred $ 909,087 $ 290,120 stock, and stockholders' equity (deficit)

ChargePoint Holdings, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands, unaudited)

Nine Months Ended October 31,

2021

2020

Cash flows from operating activities

Net loss

$

(72,092

)

$

(106,275

)

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

Depreciation and amortization

10,158

7,463

Non-cash operating lease cost

3,066

2,865

Stock-based compensation

51,893

3,308

Amortization of deferred contract acquisition costs

1,291

858

Deferred tax benefit

(370

)

-

Change in fair value of redeemable convertible preferred stock warrant liability

(9,237

)

18,301

Change in fair value of common stock warrant liabilities

(30,911

)

-

Change in fair value of contingent earnout liabilities

(84,420

)

-

Transaction costs expensed

7,031

-

Other

2,203

1,043

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

Accounts receivable, net

(26,579

)

10,053

Inventories

3,498

(5,975

)

Prepaid expenses and other assets

(18,879

)

(8,388

)

Operating lease liabilities

(2,193

)

(2,431

)

Accounts payable

10,633

(2,397

)

Accrued and other liabilities

16,110

1,569

Deferred revenue

29,715

9,085

Net cash used in operating activities

(109,083

)

(70,921

)

Cash flows from investing activities

Purchases of property and equipment

(12,064

)

(8,913

)

Maturities of investments

-

47,014

Cash paid for acquisition, net of cash acquired

(205,329

)

-

Net cash (used in) provided by investing activities

(217,393

)

38,101

Cash flows from financing activities

Proceeds from issuance of redeemable convertible preferred stock

-

95,514

Proceeds from issuance of common stock warrants, net of issuance costs

-

31,545

Proceeds from the exercise of public warrants

118,845

-

Merger and PIPE financing

511,646

-

Payment of deferred transaction costs

-

(513

)

Payments of transaction costs related to Merger

(32,468

)

-

Payment of tax withholding obligations on settlement of earnout shares

(20,895

)

-

Repayment of borrowings

(36,051

)

-

Proceeds from issuance of stock in connection with stock plans, net of withholding taxes

4,214

2,201

Change in driver funds and amounts due to customers

1,933

-

Net cash provided by financing activities

547,224

128,747

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

(748

)

13

Net increase in cash, cash equivalents, and restricted cash

220,000

95,940

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

145,891

73,153

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

$

365,891

$

169,093

ChargePoint Holdings, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands, unaudited)

Nine Months Ended October 31,

2021 2020

Cash flows from operating activities

Net loss $ (72,092 ) $ (106,275 )

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

Depreciation and amortization 10,158 7,463

Non-cash operating lease cost 3,066 2,865

Stock-based compensation 51,893 3,308

Amortization of deferred contract acquisition costs 1,291 858

Deferred tax benefit (370 ) -

Change in fair value of redeemable convertible (9,237 ) 18,301 preferred stock warrant liability

Change in fair value of common stock warrant (30,911 ) - liabilities

Change in fair value of contingent earnout (84,420 ) - liabilities

Transaction costs expensed 7,031 -

Other 2,203 1,043

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

Accounts receivable, net (26,579 ) 10,053

Inventories 3,498 (5,975 )

Prepaid expenses and other assets (18,879 ) (8,388 )

Operating lease liabilities (2,193 ) (2,431 )

Accounts payable 10,633 (2,397 )

Accrued and other liabilities 16,110 1,569

Deferred revenue 29,715 9,085

Net cash used in operating activities (109,083 ) (70,921 )

Cash flows from investing activities

Purchases of property and equipment (12,064 ) (8,913 )

Maturities of investments - 47,014

Cash paid for acquisition, net of cash acquired (205,329 ) -

Net cash (used in) provided by investing activities (217,393 ) 38,101

Cash flows from financing activities

Proceeds from issuance of redeemable convertible - 95,514 preferred stock

Proceeds from issuance of common stock warrants, net - 31,545 of issuance costs

Proceeds from the exercise of public warrants 118,845 -

Merger and PIPE financing 511,646 -

Payment of deferred transaction costs - (513 )

Payments of transaction costs related to Merger (32,468 ) -

Payment of tax withholding obligations on settlement (20,895 ) - of earnout shares

Repayment of borrowings (36,051 ) -

Proceeds from issuance of stock in connection with 4,214 2,201 stock plans, net of withholding taxes

Change in driver funds and amounts due to customers 1,933 -

Net cash provided by financing activities 547,224 128,747

Effect of exchange rate changes on cash, cash (748 ) 13 equivalents, and restricted cash

Net increase in cash, cash equivalents, and 220,000 95,940 restricted cash

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

Cash, cash equivalents, and restricted cash at end $ 365,891 $ 169,093 of period

ChargePoint Holdings, Inc.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(In thousands, unaudited)

Three Months Ended October 31, 2021

Three Months Ended October 31, 2020

Nine Months Ended October 31, 2021

Nine Months Ended October 31, 2020

Cost of Revenue:

GAAP cost of revenue

$

48,978

$

29,112

$

125,615

$

80,053

Stock-based compensation expense

(885

)

(29

)

(3,073

)

(93

)

Restructuring subsidies (1)

-

49

-

100

Amortization of intangible assets

(426

)

-

(426

)

-

Non-GAAP cost of revenue

$

47,667

$

29,132

$

122,116

$

80,060

Non-GAAP gross profit (gross margin as a percentage of revenue)

$

17,367

27

%

$

7,233

20

%

$

39,549

24

%

$

24,039

23

%

Operating Expenses:

GAAP research and development

$

36,751

$

18,919

$

102,535

$

54,071

Stock-based compensation expense

(5,840

)

(448

)

(20,198

)

(1,205

)

Restructuring subsidies (costs) (1)

-

27

-

(169

)

Earn-out-related taxes (2)

-

-

(358

)

-

Acquisition-related costs (3)

-

-

(86

)

-

Cost related to secondary offering

-

-

(80

)

-

Non-GAAP research and development (as a percentage of revenue)

$

30,911

48

%

$

18,498

51

%

$

81,813

51

%

$

52,697

51

%

GAAP sales and marketing

$

24,361

$

12,134

$

62,258

$

37,301

Stock-based compensation expense

(2,251

)

(333

)

(7,018

)

(988

)

Restructuring subsidies (costs) (1)

-

143

-

(68

)

Earn-out-related taxes (2)

-

-

(424

)

-

Acquisition-related costs (3)

-

-

(43

)

-

Cost related to secondary offering

-

-

(40

)

-

Amortization of intangible assets

(1,092

)

-

(1,092

)

-

Non-GAAP sales and marketing (as a percentage of revenue)

$

21,018

32

%

$

11,944

33

%

$

53,641

33

%

$

36,245

35

%

GAAP general and administrative

$

20,268

$

8,790

$

57,467

$

18,345

Stock-based compensation expense

(7,046

)

(398

)

(21,604

)

(1,022

)

Restructuring costs (1)

-

27

-

(339

)

Earn-out-related taxes (2)

-

-

(713

)

-

Acquisition-related costs (3)

(2,435

)

-

(5,118

)

-

Cost related to secondary offering

(15

)

-

(2,517

)

-

Non-GAAP general and administrative (as a percentage of revenue)

$

10,772

17

%

$

8,419

23

%

$

27,515

17

%

$

16,984

16

%

Non-GAAP Operating Expenses (as a percentage of revenue)

$

62,701

96

%

$

38,861

107

%

$

162,969

101

%

$

105,926

102

%

Net Loss:

GAAP net loss

$

(69,442

)

$

(40,890

)

$

(72,092

)

$

(106,275

)

Stock-based compensation expense

16,022

1,208

51,893

3,308

Restructuring subsidies (costs) (1)

-

(246

)

-

476

Earn-out-related taxes (2)

-

-

1,495

-

Acquisition-related costs (3)

2,435

-

5,247

-

Cost related to secondary offering

15

-

2,637

-

Amortization of intangible assets

1,518

-

1,518

-

Change in fair value of preferred stock warrant liability

-

7,320

(9,237

)

18,301

Change in fair value of assumed common stock warrant liability

2,429

-

(30,911

)

-

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)

$

(47,023

)

(72)

%

$

(32,608

)

(90)

%

$

(126,839

)

(78)

%

$

(84,190

)

(81)

%

Provision for income taxes

(314

)

98

(211

)

203

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

$

(47,337

)

(73)

%

$

(32,510

)

(89)

%

$

(127,050

)

(79)

%

$

(83,987

)

(81)

%

ChargePoint Holdings, Inc.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(In thousands, unaudited)

Three Months Ended Three Months Ended Nine Nine October 31, 2021 October 31, 2020 Months Ended Months Ended October 31, 2021 October 31, 2020

Cost of Revenue:

GAAP cost of $ 48,978 $ 29,112 $ 125,615 $ 80,053 revenue

Stock-basedcompensation (885 ) (29 ) (3,073 ) (93 ) expense

Restructuring - 49 - 100 subsidies (1)

Amortization of (426 ) - (426 ) - intangible assets

Non-GAAP cost of $ 47,667 $ 29,132 $ 122,116 $ 80,060 revenue

Non-GAAP grossprofit (grossmargin as a $ 17,367 27 % $ 7,233 20 % $ 39,549 24 % $ 24,039 23 %percentage ofrevenue)



Operating Expenses:

GAAP research and $ 36,751 $ 18,919 $ 102,535 $ 54,071 development

Stock-basedcompensation (5,840 ) (448 ) (20,198 ) (1,205 ) expense

Restructuringsubsidies (costs) - 27 - (169 ) (1)

Earn-out-related - - (358 ) - taxes (2)

Acquisition-related - - (86 ) - costs (3)

Cost related to - - (80 ) - secondary offering

Non-GAAP researchand development (as $ 30,911 48 % $ 18,498 51 % $ 81,813 51 % $ 52,697 51 %a percentage ofrevenue)



GAAP sales and $ 24,361 $ 12,134 $ 62,258 $ 37,301 marketing

Stock-basedcompensation (2,251 ) (333 ) (7,018 ) (988 ) expense

Restructuringsubsidies (costs) - 143 - (68 ) (1)

Earn-out-related - - (424 ) - taxes (2)

Acquisition-related - - (43 ) - costs (3)

Cost related to - - (40 ) - secondary offering

Amortization of (1,092 ) - (1,092 ) - intangible assets

Non-GAAP sales andmarketing (as a $ 21,018 32 % $ 11,944 33 % $ 53,641 33 % $ 36,245 35 %percentage ofrevenue)



GAAP general and $ 20,268 $ 8,790 $ 57,467 $ 18,345 administrative

Stock-basedcompensation (7,046 ) (398 ) (21,604 ) (1,022 ) expense

Restructuring costs - 27 - (339 ) (1)

Earn-out-related - - (713 ) - taxes (2)

Acquisition-related (2,435 ) - (5,118 ) - costs (3)

Cost related to (15 ) - (2,517 ) - secondary offering

Non-GAAP generaland administrative $ 10,772 17 % $ 8,419 23 % $ 27,515 17 % $ 16,984 16 %(as a percentage ofrevenue)



Non-GAAP OperatingExpenses (as a $ 62,701 96 % $ 38,861 107 % $ 162,969 101 % $ 105,926 102 %percentage ofrevenue)



Net Loss:

GAAP net loss $ (69,442 ) $ (40,890 ) $ (72,092 ) $ (106,275 )

Stock-basedcompensation 16,022 1,208 51,893 3,308 expense

Restructuringsubsidies (costs) - (246 ) - 476 (1)

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

Acquisition-related 2,435 - 5,247 - costs (3)

Cost related to 15 - 2,637 - secondary offering

Amortization of 1,518 - 1,518 - intangible assets

Change in fairvalue of preferred - 7,320 (9,237 ) 18,301 stock warrantliability

Change in fairvalue of assumed 2,429 - (30,911 ) - common stockwarrant liability

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

Offering costsallocated to - - 7,031 - warrant liabilities

Non-GAAP net loss(as a percentage of $ (47,023 ) (72) % $ (32,608 ) (90) % $ (126,839 ) (78) % $ (84,190 ) (81) %revenue)

Provision for (314 ) 98 (211 ) 203 income taxes

Non-GAAP pre-taxnet loss (as a $ (47,337 ) (73) % $ (32,510 ) (89) % $ (127,050 ) (79) % $ (83,987 ) (81) %percentage ofrevenue)



(1)Consists of restructuring costs for severances and related termination costs, net of any governmental assistance programs.

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

(3)Consists of professional services fees related to acquisitions.

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