- Second quarter fiscal 2024 revenue of $150 million,
representing 39% year-over-year growth
- GAAP gross margin of 1% and non-GAAP gross margin of 3%,
reflecting 19 percentage point margin impact from inventory
impairment charge
- Reduction of estimated $30 million in annualized operating
expenses
- Third quarter fiscal 2024 revenue guidance of $150 - $165
million, and annual revenue guidance of $605 - $630
million
- Company reaffirms plan to achieve positive non-GAAP Adjusted
EBITDA in the fourth quarter of calendar year 2024
ChargePoint Holdings, Inc. (NYSE:CHPT)
(“ChargePoint”), a leading provider of networked solutions for
charging electric vehicles (EVs), today reported results for its
second quarter of fiscal 2024 ended July 31, 2023.
“In the second quarter, ChargePoint delivered solid growth. Our
revenue of $150 million represents a 39% year-over-year increase
despite a hesitant economy,” said Pasquale Romano, President and
CEO of ChargePoint. “In the quarter we fortified our access to
working capital with a $150 million revolving credit facility and
$38 million raised via our 'at-the-market' offering. We took an
inventory impairment charge to address a significant supply-chain
related issue, and we announced an estimated $30 million in
annualized operating expense savings from reorganizing the business
for agility, efficiency and scale. We remain committed to
delivering on our goal of generating positive non-GAAP adjusted
EBITDA by the end of calendar 2024.”
Second Quarter Fiscal 2024 Financial Overview
- Revenue. Second quarter revenue was $150.5 million, up
39% from $108.3 million in the prior year’s same quarter. Networked
charging systems revenue for the second quarter was $114.6 million,
up 36% from $84.1 million in the prior year’s same quarter.
Subscription revenue was $30.0 million, up 48% from $20.2 million
in the prior year’s same quarter.
- Gross Margin. Second quarter GAAP gross margin was 1%,
down from 17% in the prior year's same quarter, and non-GAAP gross
margin was 3%, down from 19% in the prior year's same quarter, in
both cases primarily due to a $28.0 million, or 19 percentage
point, inventory impairment charge. This inventory impairment
charge was taken to address legacy supply chain-related costs and
supply overruns on a particular DC product.
- Net Income/Loss. Second quarter GAAP net loss was $125.3
million, up from $92.7 million in the prior year's same quarter.
Non-GAAP pre-tax net loss was $86.1 million as compared to $62.3
million in the prior year's same quarter, both reflecting the $28.0
million inventory impairment charge. Non-GAAP Adjusted EBITDA Loss
was $81.2 million also reflects this inventory impairment charge in
the second quarter, as compared to $56.2 million in the prior
year's same quarter.
- Liquidity. As of July 31, 2023, cash on the balance
sheet was $263.9 million, which includes $37.7 million of
at-the-market share offering gross proceeds during the second
quarter.
- Shares Outstanding. As of July 31, 2023, the Company had
approximately 360 million shares of common stock outstanding.
Reorganization
Today ChargePoint announced the reorganization of its operations
including a reduction of ChargePoint's current global workforce by
approximately 10% (the “Reorganization”). The Reorganization is
expected to lead to approximately $8 million in charges, consisting
primarily of severance benefits and facility-related expenses to be
incurred primarily during the Company's third fiscal quarter. The
Reorganization is expected to result in annual operating expense
savings of approximately $30 million.
Third Quarter, Fourth Quarter and Full Fiscal Year 2024
Guidance
For the third fiscal quarter ending October 31, 2023,
ChargePoint expects:
- Revenue of $150 million to $165 million. At the midpoint, this
represents an anticipated increase of 26% as compared to the prior
year.
- Non-GAAP gross margin of 22 to 25%.
- Non-GAAP operating expenses of $81 million to $84 million.
For the fourth fiscal quarter ending January 31, 2024,
ChargePoint expects non-GAAP operating expenses of $79 million to
$82 million.
For the full fiscal year ending January 31, 2024, ChargePoint
expects revenue of $605 million to $630 million. At the midpoint,
this represents an anticipated increase of 32% as compared to the
prior year.
Guidance for non-GAAP financial measures excludes items such as
stock-based compensation expense, amortization expense of acquired
intangible assets, professional services fees associated with
acquisitions and registration filings, non-cash charges related to
tax liabilities, non-recurring restructuring costs, and non-cash
charges related to the change in fair value of assumed common stock
warrant liabilities, and is further adjusted for provision of
income taxes, depreciation, interest income and expense, and other
income and expense (net). 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 our 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, GAAP
operating expenses and GAAP net loss.
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 2024
financial results, and its outlook for the third quarter, fourth
quarter and full fiscal year 2024.
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 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. For more information, visit the ChargePoint pressroom, the
ChargePoint Investor Relations site, or contact the ChargePoint
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, 2023, fourth fiscal quarter ending January 31, 2024,
and full fiscal year ending January 31, 2024, and our plans to be
non-GAAP Adjusted EBITDA positive by the end of calendar 2024, and
anticipated one-time charges and annual expense savings resulting
from the Reorganization. There are a significant number of factors
that could cause actual results to differ materially from the
statements made in this press release, including: macroeconomic
trends including changes in or sustained inflation, prolonged and
sustained increases in interest rates, or other events beyond our
control on the overall economy which may reduce demand for our
products and services, geopolitical events and conflicts, adverse
impacts to our business and those of our customers and suppliers,
including due to supply chain disruptions, component shortages, and
associated logistics 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 demand for
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; our
reliance on contract manufacturers, including those located outside
the United States, may result in supply chain interruptions, delays
and expense increases which may adversely affect our sales, revenue
and gross margins; 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 delays and costs associated with new product
introductions, inventory obsolescence, component shortages and
related expense increases; adverse impact to our revenues 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 8, 2023, 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 financial information in this press
release 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. ChargePoint believes that the use
of these non-GAAP financial measures is useful to investors to
evaluate ongoing operating results and trends and believes they
provide meaningful supplemental information to investors regarding
ChargePoint’s underlying operating performance because they exclude
items the Company believes are unrelated to, and may not be
indicative of, its core operating results.
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 stock-based
compensation expense and amortization expense of acquired
intangible assets. 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 stock-based compensation expense,
amortization expense of acquired intangible assets, professional
services fees associated with acquisitions and registration
filings, non-cash charges related to tax liabilities, non-recurring
restructuring costs and non-cash charges related to the fair value
of assumed common stock warrant liabilities.
Non-GAAP Net Loss. ChargePoint defines non-GAAP net loss as net
loss excluding stock-based compensation expense, amortization
expense of acquired intangible assets, professional services fees
associated with acquisitions and registration filings, non-cash
charges related to tax liabilities, non-recurring restructuring
costs, and non-cash charges related to change in fair value of
assumed common stock warrant liabilities. 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.
Non-GAAP Adjusted EBITDA Loss. ChargePoint defines non-GAAP
adjusted EBITDA loss as net loss excluding stock-based compensation
expense, amortization expense of acquired intangible assets,
professional services fees associated with acquisitions and
registration filings, non-cash charges related to tax liabilities,
non-recurring restructuring costs, and non-cash charges related to
the change in fair value of assumed common stock warrant
liabilities, and further adjusted for provision of income taxes,
depreciation, interest income and expense, and other income and
expense (net).
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. 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
July 31,
Six Months Ended
July 31,
2023
2022
2023
2022
Revenue
Networked charging systems
$
114,574
$
84,148
$
212,894
$
143,699
Subscriptions
30,011
20,244
56,376
37,890
Other
5,909
3,900
11,253
8,336
Total revenue
150,494
108,292
280,523
189,925
Cost of revenue
Networked charging systems
126,961
74,352
207,883
130,618
Subscriptions
18,692
13,278
33,497
23,905
Other
3,716
2,509
7,483
5,142
Total cost of revenue
149,369
90,139
248,863
159,665
Gross profit
1,125
18,153
31,660
30,260
Operating expenses
Research and development
59,642
51,804
109,039
100,105
Sales and marketing
39,671
33,873
76,711
66,460
General and administrative
25,144
22,846
49,164
43,893
Total operating expenses
124,457
108,523
234,914
210,458
Loss from operations
(123,332
)
(90,370
)
(203,254
)
(180,198
)
Interest income
1,840
1,460
4,300
1,566
Interest expense
(2,926
)
(2,928
)
(5,853
)
(3,862
)
Change in fair value of assumed common
stock warrant liabilities
—
—
—
(24
)
Other income (expense), net
68
(1,254
)
642
(1,702
)
Net loss before income taxes
(124,350
)
(93,092
)
(204,165
)
(184,220
)
Provision for (benefit from) income
taxes
905
(392
)
478
(2,254
)
Net loss
$
(125,255
)
$
(92,700
)
$
(204,643
)
$
(181,966
)
Net loss per share, basic and diluted
$
(0.35
)
$
(0.28
)
$
(0.58
)
$
(0.54
)
Weighted average shares outstanding, basic
and diluted
355,876,807
336,813,555
353,008,473
335,736,772
ChargePoint Holdings,
Inc.
PRELIMINARY CONDENSED
CONSOLIDATED BALANCE SHEETS
(In thousands,
unaudited)
July 31, 2023
January 31, 2023
Assets
Current assets:
Cash and cash equivalents
$
233,499
$
264,162
Restricted cash
30,400
30,400
Short-term investments
—
104,966
Accounts receivable, net
202,079
164,892
Inventories
143,580
68,730
Prepaid expenses and other current
assets
82,657
71,020
Total current assets
692,215
704,170
Property and equipment, net
42,736
40,046
Intangible assets, net
87,924
92,673
Operating lease right-of-use assets
20,164
22,242
Goodwill
216,615
213,716
Other assets
8,734
7,110
Total assets
$
1,068,388
$
1,079,957
Liabilities and Stockholders'
Equity
Current liabilities:
Accounts payable
$
99,024
$
62,076
Accrued and other current liabilities
145,725
133,483
Deferred revenue
95,800
88,777
Total current liabilities
340,549
284,336
Deferred revenue, noncurrent
124,042
109,833
Debt, noncurrent
295,539
294,936
Operating lease liabilities
19,544
21,841
Deferred tax liabilities
11,868
12,987
Other long-term liabilities
1,626
1,032
Total liabilities
793,168
724,965
Stockholders' equity:
Common stock
36
35
Additional paid-in capital
1,648,198
1,528,104
Accumulated other comprehensive loss
(11,608
)
(16,384
)
Accumulated deficit
(1,361,406
)
(1,156,763
)
Total stockholders' equity
275,220
354,992
Total liabilities and stockholders'
equity
$
1,068,388
$
1,079,957
ChargePoint Holdings,
Inc.
PRELIMINARY CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands,
unaudited)
Six Months Ended
July 31,
2023
2022
Cash flows from operating
activities
Net loss
$
(204,643
)
$
(181,966
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
14,018
12,476
Non-cash operating lease cost
2,199
2,451
Stock-based compensation
59,063
41,946
Amortization of deferred contract
acquisition costs
1,380
1,118
Inventory impairment
28,000
—
Other
5,026
5,015
Changes in operating assets and
liabilities, net of effect of acquisitions:
Accounts receivable, net
(40,562
)
(36,178
)
Inventories
(97,906
)
(18,239
)
Prepaid expenses and other assets
(12,365
)
(9,964
)
Accounts payable, operating lease
liabilities, and accrued and other liabilities
33,957
28,896
Deferred revenue
21,231
20,773
Net cash used in operating activities
(190,602
)
(133,672
)
Cash flows from investing
activities
Purchases of property and equipment
(9,877
)
(8,872
)
Purchases of short term investments
—
(284,835
)
Maturities of investments
105,000
—
Cash paid for acquisitions, net of cash
acquired
—
(2,756
)
Net cash provided by (used in) investing
activities
95,123
(296,463
)
Cash flows from financing
activities
Proceeds from issuance of debt, net of
discount and issuance costs
—
293,972
Debt issuance costs related to the
revolving credit facility
(2,265
)
—
Proceeds from the issuance of common stock
under employee equity plans, net of tax withholding
6,212
5,419
Proceeds from issuance of common stock in
connection with ATM offerings
54,799
—
Change in driver funds and amounts due to
customers
8,839
4,238
Settlement of contingent earnout
liability
(3,537
)
—
Net cash provided by financing
activities
64,048
303,629
Effect of exchange rate changes on cash,
cash equivalents, and restricted cash
768
(1,067
)
Net decrease in cash, cash equivalents,
and restricted cash
(30,663
)
(127,573
)
Cash, cash equivalents, and restricted
cash at beginning of period
294,562
315,635
Cash, cash equivalents, and restricted
cash at end of period
$
263,899
$
188,062
ChargePoint Holdings,
Inc.
RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES
(In thousands,
unaudited)
Three Months Ended
July 31, 2023
Three Months Ended
July 31, 2022
Six
Months Ended
July 31, 2023
Six
Months Ended
July 31, 2022
Cost of Revenue:
GAAP cost of revenue
$
149,369
$
90,139
$
248,863
$
159,665
Stock-based compensation expense
(1,938
)
(1,341
)
(2,933
)
(2,126
)
Amortization of intangible assets
(766
)
(748
)
(1,532
)
(1,368
)
Non-GAAP cost of revenue
$
146,665
$
88,050
$
244,398
$
156,171
Non-GAAP gross profit (gross margin as
a percentage of revenue)
$
3,829
3
%
$
20,242
19
%
$
36,125
13
%
$
33,754
18
%
Operating Expenses:
GAAP research and development
$
59,642
$
51,804
$
109,039
$
100,105
Stock-based compensation expense
(15,847
)
(11,420
)
(25,353
)
(17,398
)
Other adjustments (1)
—
—
1
—
Non-GAAP research and development (as a
percentage of revenue)
$
43,795
29
%
$
40,384
37
%
$
83,687
30
%
$
82,707
44
%
GAAP sales and marketing
$
39,671
$
33,873
$
76,711
$
66,460
Stock-based compensation expense
(6,757
)
(5,285
)
(10,926
)
(7,831
)
Amortization of intangible assets
(2,273
)
(2,207
)
(4,545
)
(4,448
)
Other adjustments (1)
—
—
1
—
Non-GAAP sales and marketing (as a
percentage of revenue)
$
30,641
20
%
$
26,381
24
%
$
61,241
22
%
$
54,181
29
%
GAAP general and administrative
$
25,144
$
22,846
$
49,164
$
43,893
Stock-based compensation expense
(10,557
)
(8,373
)
(19,851
)
(14,591
)
Acquisition-related costs (2)
—
—
—
(1,011
)
Other adjustments (1)
(105
)
(1,463
)
(105
)
(1,463
)
Non-GAAP general and administrative (as
a percentage of revenue)
$
14,482
10
%
$
13,010
12
%
$
29,208
10
%
$
26,828
14
%
Non-GAAP Operating Expenses (as a
percentage of revenue)
$
88,918
59
%
$
79,775
74
%
$
174,136
62
%
$
163,716
86
%
Net Loss:
GAAP net loss
$
(125,255
)
$
(92,700
)
$
(204,643
)
$
(181,966
)
Stock-based compensation expense
35,099
26,419
59,063
41,946
Amortization of intangible assets
3,039
2,955
6,077
5,816
Acquisition-related costs (2)
—
—
—
1,011
Other adjustments (1)
105
1,463
103
1,487
Non-GAAP net loss (as a percentage of
revenue)
$
(87,012
)
(58
)%
$
(61,863
)
(57
)%
$
(139,400
)
(50
)%
$
(131,706
)
(69
)%
Provision for (benefit from) income
taxes
905
(392
)
478
(2,254
)
Non-GAAP pre-tax net loss (as a
percentage of revenue)
$
(86,107
)
(57
)%
$
(62,255
)
(57
)%
$
(138,922
)
(50
)%
$
(133,960
)
(71
)%
Depreciation
3,925
3,300
7,941
6,660
Interest income
(1,840
)
(1,460
)
(4,300
)
(1,566
)
Interest expense
2,926
2,928
5,853
3,862
Other income (expense), net
(68
)
1,254
(642
)
1,702
Non-GAAP Adjusted EBITDA Loss (as a
percentage of revenue)
$
(81,164
)
(54
)%
$
(56,233
)
(52
)%
$
(130,070
)
(46
)%
$
(123,302
)
(65
)%
(1)
Consists of restructuring costs
for severances and related termination costs, as well as change in
fair value of assumed common stock warrant liabilities, non-cash
charges related to tax liabilities, and cost related to
registration filings.
(2)
Consists of professional services
fees related to acquisitions.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230906746226/en/
Investor Relations Patrick
Hamer Vice President, Capital Markets and Investor Relations
Patrick.Hamer@chargepoint.com investors@chargepoint.com
Press John Paolo Canton Vice
President, Communications JP.Canton@chargepoint.com
AJ Gosselin Director, Corporate Communications
AJ.Gosselin@chargepoint.com media@chargepoint.com
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