ChargePoint (CHPT) 12 Mar 212020 Q4 Earnings call transcript

Good morning, my name is Abby, and I will be your conference operator today. At this time, I would like to welcome everyone to the Chargepoint Fourth Quarter and Full Year 2021 Earnings Conference Call and Webcast. All participant lines have been placed in listen only mode, to prevent any background noise. After the speakers’ remarks, there'll be a question-and-answer session. [Operator Instructions] Thank you. the to turn Counsel. Chavez, now will call Rebecca over General I please ahead. Rebecca, go

in should control, We our call. future. not by materially And be from rely after this these update statements the actual will Executive And joining during a and statements, expectations them, Romano, expected over investors which quarter those the involve website, beyond issued Good January Pasquale conference these are you call on quarter Rex the Chavez, today. obligation our thank afternoon. fiscal results XXXX, to for first the for announcing fiscal call, call, Counsel. risks initiatives. Officer General to today's on our found of and sector you Chief uncertainties, which Officer. discuss we to and year quarter representing XX, financial I'm investors.chargepoint.com. our and afternoon, anticipated This results apply Holding we at and can year including on the growth and XXXX, forward-looking accessed outlook company's These be regarding like statements statements. conference can financial investment call cause being our us remind that our would our to on views Financial our of company Chargepoint Chief Inc.’s, ended, me the as number web statements fiscal section which and fiscal statements differ for guidance fourth fourth management Jackson, website. broadcast of making President and and our is would undertake some forward-looking results. These release With Rebecca the no to as XXXX, for today's This forward-looking the and related on be press We

with provide posted X-K. and on our call exclude to results certain under and we form periods, to supplemental section. that, and Pasquale. charges, finally, cause located ago the the completed our financial be formal detailed been these section Xst, Relations on Investor at refer website, financial differ, the SEC on website quarterly please basis, non-GAAP a once with our our posting minutes investors.chargepoint.com. information adjusted For can for investors we've GAAP use website March to that that that and filed please form factors historical the description earnings financial on And X-K our measures could to few results of note, them we the to of XXXX call release non-GAAP And reconciliations measures on actual a we'll financial the filed of found with to more remarks, be on turn have I'll this are certain SEC measures expressed Also our

for welcome call, to And earnings a Thanks everyone. public company. Hi, joining. as our first

We are here. to very be happy

And to proceeds cash in on Stock have the York $XXX balance and we'll Exchange. New Then to And own. and outlook segments charging, We've to talk in year results. year I'll category to we the we will commercial, have review very on and I March creator, in is our will Then take closing fleet advantage about believe, on growth. up growth electric for Chargepoint net of million million who having in year. cash all We're more it its your Xst for begun As fourth $XXX the residential our nearly market. are I'll operating come EV to into company. get We're a trading and the sector, spent of to and that happy mobility positioned have this including net end fund point. history raised open hand a that well comments. XX cover CFO, to out, Jackson, I'll financial the we our it quarter point our I'll the across as sheet share the sees questions. than result, Rex some achievements

story at town with vision set When the goods around the Our pervasively that and which be had understood, planet drivers could all new ago, to road. to people we began move or we distributed XX years on create network, home, resource. the a around electricity, everywhere fuelling on parked; we the is out

established and EV two importantly, top-tier market proven of America Fortune customers our share the We've solutions is more level complete the fleet cetera. single XX. We with and in ride-hailing overtime, model nearly business and including, many goods et technology fleet, network an are a portfolio both kinds charging work, segment world EV of pioneer towards charging; customers North thousands that, tends we leader every capital-light. and Beyond XX% commercial, of charging for in commercial product of one of residential. created services, delivery, of new Today

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initiatives. with an align consumers, a employers and For businesses sustainability it's serving provide way to and inexpensive benefit

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of Turning global was a our XXXX, the on would ChargePoint’s Bloomberg to Finance and resilience to on cars. start adoption. New total because noting and employees passenger and remarkable business year I'll customers, scales many data vehicle partners, like acknowledge Energy the it with fronts by I dedication

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from Some highlights business. our

EV additional one networks than and to XXX,XXX largest Europe. access At more XXXX, public other charging to major and charging networks. North XXX,XXX active charging integrations the places are have network active of world's with our through the spots with private We across of end an America public we charge roaming on EV

through and charging activating more XXX,XXX More integrations. roaming our an XXX our customer than driven charging a continue electric kilograms of gas addition, charge reach, aggressively In avoiding new greenhouse to billion expand we miles solutions, network using to XXXX, and spots in XX,XXX were million additional emissions. half places than

and strategy, fleets, fleets, five Europe our mobility significant progress including retail we from growth of logistics, which is XXX fleet five sales shared XXX In last business, range a delivery municipal and sales, and XX saw XX important transit pool year. fortune motor fleet and to fleets, growth fortune organizations, we saw includes types company. in segment furniture a made service service, notable Our and demand. and businesses utility XXXX,

and addition are around languages. providing to the clock growth, port we nine in support the countries XX In

leasing providing management least a for continue leading to our company, partnership employers. We EV solutions expand and fleet full service with

utilities partnership. We programs, and charging for wanting to from the industry EV saw charge business homes, turning industry coming Europe, the open increased up member by participants, Flex And infrastructure. competitive the strong interest an are and starting founding building harmonized Home of blocks charging became residential family a from demand. association we consumer to business EV strong see our creating for that European to for rating charging fellow referral a trade bullied ChargePoint enable recognition With single industry, market

and PayPal that are Google we our Maps Apple Drivers on seeing interest ChargePoint, consumer Google continue top Apple rely fleet who OS, our management more addition, app, to our In into the expressing watchOS, whether integrations operate fleets in Wear customers Pay, Maps, take Pay, popular many rated home Apple platforms. of is charging beginnings solutions. mobile Google

Joining recharge as RAM integrations Android apps list notable integration software progress on as of integrations, myChevrolet experiences experiences the automotive Auto, we've models in-car CarPlay the in as such Volvo and made growing Apple native including Pollstar into app. and and dynamic with well

according year up for X% in New and and with the accelerating X.X% X% estimates EV includes of global approximately Turning car to in and we're across EVs make drive ahead. our fleet of shift Finance United to new in XXXX, increased globally the in to passenger scales new about XXXX. last remind The adoption, we excited models expect car that States. sales sales and XX% Bloomberg passenger lineup The Energy you Europe EV year and segments. is electric I'll growth XX with EVs

On the in America. well charging commercial commercial North side, in we're established

is commercial Our in mode. scale business

up unlocks. nearly perspective, in billings been limited a had segments The support And a rates. and and ever about the fleet quarter-over-quarter. category high growth historically these and has this is vehicle facts when QX are XX% that ready in We RFP can established reinforce quarter confidence our all we activity from We’re best segment.

or by On and buses, city BEVs consumers and for In commitments interest demand Europe, implementation chargers, are electrification battery, including the accelerating Flex, policies, electrify residential to state governments North meet is is ready fleets. catalyzing home to side, in large national, America the ChargePoint and mandates connected Home trucks and our of overwhelming need. that

announcing with Utilities believe with we indication committed across is to well-positioned to electrification customers to This rebate cover rebate also in US-Canada in in electrification announced to a tenders rolling a Biden first Climate positive President site commitment North the agencies we signing fleets. day that a government the opportunities. programs that cost are transportation early administration install charging programs, federal a charger from of towards Paris Agreement electrify have on a enable are is make We to partnership to take out state advantage to roadmap the public established renewed the level. This month. to With policy the the incentive provide this America momentum infrastructure. to our inform place, including earlier to ready of is and addition echoed of for teams his at these and or investment portion customers engage of purchase grants, commitment the

We teams programs leverage programs We programs. see have the the to and these million honed and dollars current years utility program expanding propose we multiple XXXX, to new more years. expand their fleet. the of utilities extensions processes many over XXX to expect estimate multi-year available over will that and

We for operational designed EV managed that by fuel establishing the costs new address also rates, specifically utilities expect charging to for leverage charging. electricity

today, have good of to sheet net remind balance We point than have we history on money being of to spend this reach capital, XXXX long and I'll a stewards have from you, in Europe, more we opportunity dry to in M&A. transaction our in for presents proceeds some of itself and recent for to scale investment keep use the case the our selective continue fleet continue are powder an

over Rex the financials. Now to on

and you for joining you, earnings call. thank Thank our all first Pasquale,

pleased here. start, few be to To comments. to I'd As offer we are said, a Pasquale like baseline very

as are the stock-based release. defined of our non-GAAP, our earnings First, and effect are The the warrants. of exclusions stock my preferred in we comments valuation primary compensation

our for ends quick XX, results, I provide revenue review estimates fiscal for after year, of XXXX. this QX will Second, which January and

represent services charging services, our three earnings subscriptions hardware and Network cloud our you report of bundle as other. systems our all can assure certain we non-material revenue lines: hardware, in we warranties professional our as charging include and annual network offerings, said, where revenue Third, into an Subscriptions network is see and release, along and fee, service Pasquale our network. energy ChargePoint-as-a-Service streams. solutions others credits, systems,

the the sequential QX Network revenue commercial of Subscription and XX% strength declined grow. as down Pasquale revenue X% system Other our demonstrating not million, fleet. charging our revenue up was but improvement. commercial, continued was due to continuing from impact to will mentioned year-over-year lines, year's down revenue COVID results, X%, by XX%. on $XX.X revenue of Turning we down business recurring their was to primarily to our business near-term, as model residential base installed In the break which sales. revenue

customers X%, of fourth its North forward and best a fleet, XX%, contribution percentage geographic Europe doubling XX% were professional and lower to give year. QX a from building However quarter systems business large to-date services From you last contract the that quarter. revenue from OEM significant last more customer X%, XX% a our fleet The to an context, and percentage year's network than our customer in largely a Europe no and broadly our was last go the new added XX%, commercial of this were not was offset America from fourth of strategy of over year its a quarter XXXs nearly by last perspective, factor quarter, in reoccur other year, billings a for total. building to residential XX% large Customer QX auto on was notably progress strategy revised average from also respectively year. We cornerstone and strong year. compared that XX%, of revenue had did XX% this higher core component

sticky create land significant Pasquale purchases relationships a first small and our model, as As described re-buy expand business rate. a and

COVID X% America to was revenue Europe other XX% the XX% last year for decline factors other of for effects. published and year expectations down lines, due revenue increase The the I've charging of in million, and quarter, contributed with commercial fleet XX%, and business offsetting America Across described full XX% For revenue, due year's year-over-year billings $XXX.X I in the XX%, our to year the year year, X% North were model. in X% our we're X% versus revenue, mentioned compared to full pleased reflecting fourth a systems subscription X%. posted that the year in COVID exceeded North despite revenue the factors fiscal last in network a for the XX% full in referenced. up was XX% Europe and just Geographically our residential

the non-GAAP of higher third-party experienced by improving percentages last higher partially of fourth XXXX shift EU a historically gross for new going margin down entering products part performance offset due reflects the strategy. year's year quarter FY With XX% certain for are slowdown gross driven towards shutdowns, margin than mix Non-GAAP associated subscription with margin cost Turning our and year primarily strong lower XX% workplace, for customers compared products higher QX gross margin improvement products. margin, the of challenges was margin the yielded of this from The year, the coming XX%, COVID our the to off a and by last to resale workplace from drivers as of margins due ramping quarter to fourth a we're products, and to up structure, XX%. fewer major year.

margin. commercial believe improving fleet As work overall forward, as we we will also and look supporting our in outlook all our we to back available become all be a gross vehicles will get significant blended recover the business when driver

model. For just due to consistent year, was the compared I prior the XX% XX%, mentioned the non-GAAP gross with reasons year full to and our margin published

non-GAAP to X% year. year-over-year QX operating fourth expenses in our higher operating XXXX. were in last million, than expenses to Turning FY million to non-GAAP operating year $XX.X expenses the quarter million $XXX.X compared increased $XX.X X% Full

to our XXXX expenses with For in million. difficult of cash ended quarter fourth the quarter and the the a year, a reflect these environment. manage We rates $XXX efforts balance

with Switchback million. our combination we balance to Acquisition increased Energy February our cash XXth; $XXX of the With on approximately completion Corporation

expansion in in cash use our continued our this growth initiatives, America. North and to Europe fund growth expect including to We

to guidance, fiscal Moving increase QX, QX quarter which the million for versus typically of $XX $XX a seasonally to million, X% is lower revenue expect than now of XX% of XXXX, year. we first to last

of we joining to a For revenue midpoint million XX% the you I'll $XXX at Thank again it increase to for for our comments. year, $XXX us and consistent expect turn Pasquale closing model back with million, year-over-year. and

Rex. accelerating. on electric all motor drives the goods The to XXXX to people has since This has power that still and electric our ChargePoint I'll today. us pivoted. vision mobility company In focused is and in closing, Thanks shift reinforce never move

We have is a Energy Bloomberg innings. to XXXX. serve. in billion our is designed its Charging by a now New infrastructure to great measure business early in the opportunity expected here is geos we the vehicles adoption rate with model scale proportionally that finances by still that, market $XXX of be Aligning to

have on We to business a foundation remind build our that will XX-year capital-light. I is you and model

has As a been to pressure-tested with charging, a growing the and great in is more a decade. base, capitalize than EV ChargePoint model leader large over well-positioned that a business on customer market technology,

with are across EV only company charging We two on solutions segments the continents.

leverage We geographies. have operating expense across

We services. functions. company we continued have scale strong And to and cost a across to excited products public are benefits execution are committed and our be structure and

to this most committed also it the the ChargePoint journey our with thank growth, colon, be history providing at dedication Thank company's joined as like to our It's shared sentence and ahead incredible on to our the I March of investor ChargePoint. your you. are we a brief a questions. would closing, of With effort We continue as Rex, open and and our for And we'll in communication. on for getting semi with is in moment this up described shareholders I us I us. their that day employees as Xst, the by to that'll with point. In listing timely transparent team practice

Patil Wolfe. first Our Shreyas from Instructions] ahead. go question from Shreyas, [Operator please comes

much. so thanks Hey,

guidance wanted bit a though. dig Just the to into little revenue

as the America XXXX, XXXX. previously charging of You're for XX% maintaining you about new the for I'm and around fiscal how do Is North and those but about well? then, curious give what fiscal also installations? this underlying either industry Europe guidance assumptions can think that I if around think talked drivers expecting us will demand some margin, And be this for gross EV and we you're year,

Hi, Shreyas. the into I'll some I'll and Thank some Rex that on get the numbers. you question. color then for specifics provide have on

that in I believe, an you're decline overall what offsets the sales seeing I in that's an industry all, the particular question of GOs a and are that of increase our in And numbers. sales been has the serve. the for asked you'd market, -- EVs a First is auto into but overall think auto that's that in decline very What industry that's products challenging in demand sales, percent penetration for bright a services. about essentially driving our EVs of that spot

directly drive our and I'll continue the to the segment, are vehicle the me, coming introduced, both in excuse residential commercial They're board. in map strength -- consumer So, in to if we're very space remind makes you time. for -- being should got you predicted at residential all continue all demand. in my this penetration talked about And we a models remarks, segment, long it out EV that new is attached the look segment. year that that across segment expect both XX car the and revenue vehicle I new the been you models alone passenger space, and fleet to has fleet to and that the historically

which if greater come And continue greater believe, suit. in greater percentages vehicles do, will follow and our the you numbers, we to and greater and so, that should revenue

and gross terms then In margin, I'll hand over one comment I'll make of Rex. to it

trend into market, expect we the we sell mix Our gross increase hardware our gross margin that mix will believe trend that nicely. favorable on respect subside, will the a have a in we continue that gross the margin as also revenue Rex? pre-COVID overall software to products volumes we and that begins our to both margin, with revenue to as return COVID and be will

Pas. Thanks,

thank see you So, you first to for earnings one nice calls, joining. of of all, Shreyas, at so our first

that's look say the quarters. number Secondly, out four thing over we perspective, from as the first out would a I there we're guidance next embracing is, revenue

put tell strong Secondly, seasonality, looking it, we're put QX where why we're that's we so there's mathematically QX to QX half. will some down you second typically that we at a

have two One that gross top effects, are back From people there's will to very from that there just line going off for the that perspective this but we company is, this said, beneficial I year of in things a work think secondly, sometime that's do a and think there. to get typical pattern later coming margin as the vehicles the and Pas Pas a mentioned. perspective, are out year. lot competence

I think the the count percentage up actually is up is and unit well. as

correlate So know our as vehicles. model you that, attach our rate is new on XXX% we directly to to built

a we how pipeline, pipeline We that's So terms the build visibility, sorry. pipeline. have outlook. in good have pretty good, our visibility pretty is And but so do we of a great

picked And constructed view from the nobody fell is year. those perspective it really company. the place up. where of a in in QX Fleet to of Fleet the up thing down -- that, is in And business had of have how RFP total really asleep comes really perspective COVID and you'll guys. they're buildings just the one so, ownership fleet cost history get an we best our fleet. our that's picked in has vehicles with quarter One to note its from

execute we comfortable that we think constructed begin our with. will how that's So we're that. saying, to And against model

heavily on on mixed dependent. gross that's margin. not margin, we're Lastly going I so makes I’m don't because to gross guide sense, think

different is know, fleet has as profiles, our well. business risk very you different margin products different commercial and As

we about think to people going want to on blended really year. we're through I as expansion, I us think basis. margin go said, see a Pat as So And the

Great. on Okay. XXXX. mentioned touch And in of Europe, X% wanted revenue then to you maybe

BEV looks roughly with would to of just terms a you mentioned, mid-decade, like where be in think you're what are of understand either company I partnership better out leasing and be Looking roughly growth that supposed about, frame LX pretty aggressive it you Can mid-decade, they by third the maybe share, expectations wanted are revenue. around it's I the thinking to penetration. talking And by help the think XXXX? today because of that about the market some

increasing I think to terms they that about recently by XX% in maybe vehicles and lease XXXX XXXX. XX% talked they of by mix

that through to the residential from just how commercial perspective? understand then I'm would flow and ChargePoint So trying to either

fully decade. number We with makes Europe lot automakers a have automakers, given vehicle The on estimates that up that were all, broad of the that things. in at the for any model through thanks that might a sentiment down. respect All Bloomberg or all, the vehicles, models, that lines think of New made that for about based and to want they question. establish serve the momentum, revisions our in I positive might Finance can – of that some the – insightful. I way We first So, components future any especially there happen Energy to or in their think of especially happen so is move long-term couple electrifying changes the statements product all market as move forward

have can right that what and into us, very see fragmented So continued we penetration we there. I for And think Europe. here mentioned, now, in driver consolidating Europe's part as you be we that you'll tremendous a employer the force market provided phenomenon of compensation the market with that serving a lease is COs, doesn't exist same here. the continued provide they're experience as think vehicles to

in share a quickly it us So nice actually market to way establish concentrated Europe. for provides

also, so a obviously, with the customer workplace. in optionally then that heavily to component way a get a running employer. charging contract in it's lease at their And there great the there's a Rex? CO new up we're as solution home and into leaning And where bundles there, coordinated well method because that home

Yes.

was going – Europe billings. values something year, meaningful Europe – next on over QX, company's sorry, the So next XX% of this basis actual dollar was to a focusing we're next last on – We're increase of the percentage-wise. on percentage a as the looking anticipating Europe, therefore, our the grow will year, at and year Obviously, about X% order grow increase will well.

we're think shape. in I So good

to-mid single-digits. would low share that Hard share, can basis. meaningful this wood might tell a the year like you year, end market I in behind percentage look at Europe the Europe mentioned our the to and but of and in in You project dollar what arrow we're on market of both expect putting the is lot growth

Thanks congratulations Great and great. quarter. the Okay, much. on so

you. Thank

Our Co. from go Colin, Rusch Oppenheimer question from ahead. next Colin & comes please

through Thanks sales looking you've kind XXXX related the just into rates to as and times particular of customers you are first the us Can gone in fiscal of give on North so the a XXXX? sense really much of cycle trends and of commercial guys. back conversion half America half

So question. Colin, the thank you for

basis closing it in our I to will are the that quarter. grow how So, It's -- how much quarter is EV’s pipeline a of to a as beginning indicator improve, becomes conversion, the our continue is obviously, sales, which I trend the right it's facilities the the the pipeline to obviously, versus is perspective things of on the we all in at pipeline the sales say, in and of is strong segment. in in we we trend one maybe commercial ability significant going indicator respect half the part the year. things here fleet different, penetrate highly the is how at and that of real granular interesting segment converting a Salesforce our to the and us. our rates, quarter there. is into a one roughly win of think It contact The and increasing managers beginning ability beginning leading of roughly, now. how to the business. bit little centre, And is closing we convert pipeline visibility have terms a to very this more see much are it clear in leading With a much is an to we that segments less indicator, the one or abundantly of to this an think business seeing terms are of conversion -- visible In telephone get sales. the the as at in But quarter a much

is expect we moving attach tells it's us on and you what because we've to forward our that pretty tell a will that numbers increase and basis go So that rate give that does model confidence just that historical in fluidly, with that ability in well-trained and a demand convert we're etcetera we've as serving coverage, shows that that it installers, and sales those coverage, the got that deed generating cars well sales. developed geography the as support channel to long good you,

multiple All half? offerings the operating helpful. fleet chargers within to charging segment, super of depot so the some detail. design, of you right. then able the you're having over That's important the Could much looking and dynamics year fleet in development. backlog next of of about year, landscape it multiple Thank that manage the developing you fleet that and competitive -- looking in software those at competitive talked we're how sitting some at of And is being and and terms technical terms for where call that terms in of the

Yes.

fleet So, Colin, ourselves we as in solution the we a view complete -- segment. very provider

to some customer their fleet the and telematics vehicle how the a solutions. business of dispensation optimise be. to when with will And conversation engagement day, minimize route for there. really starts necessarily and routes fleets integrate depot's especially depending or best that very as cost to need, because software large software energy have the mileage its where the when next what economics leave And the the determine situated, may on energy. also planning it’s fluctuation of the a systems also the from to have very a beginning the in with to needs We comprehensive It's

software focuses product to our of has depots on a wanted to their the may turnkey, Pro support some that And as built which different ways, set. operations, fully some stock our we and to Assure support like different our -- options fleets necessary the of So, in all some engage to with with result, support that like want be do kinds problem spares. themselves have of

uptime very So, fleet. flexible engage itself completely for it's They're The with fleets. designed we in in designed hardware mind. way and completely like in with mission-critical applications the we that with have software build its then lastly, can that our charging And we also mind solutions.

So, from perspective. we're very, competitive on our fleet very, very pretty confident a side the that is package functionality there

and then components there's lot is around of for I'm in just being sure helpful. And chain, me supply terms to a various question deliver of Okay, within industries on lumpiness solutions time. final able of expediting the full expecting just in you're charges, the any in guys fiscal touch sort of that first, inefficiencies margins supply gross and chain, you component XXXX? quarter on fees, here impact Can how to second

question on we're growth we're especially very, to conversation a inside trying side, that very given of great to focused of subject in stay market. operation lot this, on a high that's ChargePoint. a Yeah, the Obviously,

which mentioned by segments, the based a of changed is part mix miss We by means we outlining of -- hardware Rex you did remarks, so we And the mix, -- be those shipments on first hard supply we as all, that shifted things, through operations you're work -- numbers, has between see whole resilient year, on circumstances as the against pretty and last were that in team. lot which affected a to managed of his mix substantially couple our chain issues. not the the and

some. As we you are supply have remind putting of in have in going own think, we manufacturing contract in to right. can't with the to that work But -- I that have respect large year CMs safety company, in that our use Yeoman's corner, past able good whatever mitigation did I say strategies so perfectly relationships but the we I'll be avoid to are the we we mechanisms chain and around three their inventory. actually and -- move to business the you the beyond some scale -- our around But last that beginning think insulated will and materialized. saw expedite were keep obviously to -- for go they really it on were basis, the you as about this. get possible from they asked specifically models of always charges. shift as ourselves you don't We massively focusing initial with were but I they We but mix a have year. when year, and degree forward we're these we're comes forward on been

might that And obviously, sure for is silica our that make other you is The to expect you What risk there's to going have exposure you up Colin. trend our think is this growth. we will don't some you bit components. really I want want good to obsolescence think stuff some inventory a to is news because happen plan low. Hey, and probably

try a little to a to up going chain we're by risk take bulking bit. So, out of the supply

much, Okay. Thanks so guys.

line Gabe, Please ahead. is from Our in next open. the Gabe Daoud from now your line go question comes Cowen.

an were could give so manufacturing, on whether Europe? guys now but using Europe quarter Good you your the just and had on an here. did and you or us you're maybe a remind mention AC start in I just but – done was the products strategy I you. on you update in XXX% think you on products you if deal the to the have, to comment, the afternoon, for guys. Maybe hoping curious to XXX% us contract getting on – manufacturers could AC contract update that do on three -- last back just anticipating Thank Could just first Congrats Europe. go you maybe you your your contract manufacturing there?

we anything very, very, nothing early early no product now. global us using across our products local that small for they If ability very And or – along some may supply have cover the logistics. engagements, chains. The partners, manufacturers introduction contract but our the manufacturing new with contract by for globally supply with partners manufacturers chain built and comes do now from border So but supply are engineering things also partners. contract our major have customer almost and we're manufacturing partners distribution to

question Europe, obviously to specifically that, AC. that products And you AC are AC using white-label in we -- will the the know, And that currently So product customized your continue you Europe tuned. stay with has specific on line on our on question in evolve generally us for your respect was we some will side Europe. been to side because know,

standpoint, Okay. Maybe you that helpful. you in feel sufficient. a expansions a Thanks, think at from the expand but staffed you the the people the out you've and effort now a building capital that’s team and in I were made just you to of Europe point, well growth this is curious you Do for had? you're if just team you have initiatives number know, the know behind human IR, follow-up.

Yeah.

and pretty or over we're now we're XXX maybe you the about going know, be – significantly So year. now so we're in at to higher -- -- and Europe people this increasing

remind side. hiring focus our where In fact, it's locations I'll a big you for on us the are.

European our Amsterdam. have We headquarters in

also right area. the individuals Germany in Redding, UK. And have London facility Munich, we in then of [ph] have sized collection QC the in outside We

positioning pretty functions in Europe. – are we all that -- putting we functions are We corporate much all

R&D, finance, sales, So have; legal, we etcetera. marketing,

operate regions. essentially So all we and in functional Also nuances products the that the selling for need region. region make with that building coverage sure and to multi-local we in local we're have we can the that make deal to the quickly sure of

a us also while a overtime support as do expense It where line separate that to is nuances, have world point the has product some a like lot we Therefore, important. R&D, line The software something This being Europe in separate regions. with may out not that to procedures well. North language fleet, region nuances, is operating the leverage the commonality and have for different line. and that's and very software, things things and be world and very America separate in a incredibly that of world processes to product have line even specific in will different a – Europe. R&D Now, in platform. it in where is There high are product there's greatly a are I that helps its line to with in areas respect product product generally hardware want product line

– big, said, area we I and us. real, the – so growth people in headcount a to the of That's are just company big intellectual R&D products and the the property it's So team market as the European in have world essentially. tip now, other we our of lots be operating, that for the for for because positioned going the and producing the functions iceberg,

for much so the color guys. Thanks it. Got

from ROTH Please Irwin go Craig. Partners. ahead, question a have Capital We now from Craig

questions. my taking for thanks and evening, Good

the Obviously, for to of this assuming returning a taper strengthening ask contribution little something into COVID describe about you year. Are of to and wanted everybody I charging spots, the guidance down us people people the and bit from there I expecting your you're nicely? second growing that of So given related benefit return preparing sort EV this strength to for guess, While from you in there's Can to the end additional the year. work? maybe fleets effect work stuck a there And is is, are home. customer base, now as part for right with with do workplace? your quite obviously, on workplaces going from activity

Yeah, great question.

return with twist of and work we have a probably for COVID. a a new in kind that it, to evolved new, now to have twist, a set styles the expected – – during expectations work and methodologies Our and

to – fully We expect of second to towards back last that and around, the be year. year. QX, of expectations be second that numeric's by the the half up evidenced for half year, the of overperformance mix in the to we'll moved phenomena, QX show said, is half the coming the – where the our in that had over in loaded incredible we the and expect as it business in and With we've relative the back an resilience the out

within We see So we substantially getting staying We of residential going multifamily lot of really sub-segment residential, last into see see back. over strong. attention. the being the year-over-year even basis, year, year. strong it percentage a workplace in coming see of fleet grew We a the year inside on really

some the we the out, discussions and be of And with infrastructure. we we're administration. of our But yet. potentially charging how that the plays don't have now in support the hashed, the – the stimulus – of Biden for We little know will participating corner administration but in aren't infrastructure, that providing form with course, fully the exactly plans have

tailwind. be also a So, hopefully that will

general work, with question people the specific -- COVID do The tailwinds. a happening the we So lot return throughout to to of our construction prepping during for we see respect occupancy, estate of see towards period, gain we segments did there preparing long was that activity. properties, with eye were an given renovating limited people in in plenty real where and those see

programs. have a utility also backbone of You

fuses forward multi-year. climbing. have You are programs noticed get programs in those them the comments. But remarks make I basis funds want go clarification typically. utility are my available These on to we from time my sure that -- you on that a

business if there's for that affected And erosion counter either on COVID. that more due a providing have erosion on force some program so, in -- there, a make-ready that's put will or pressure the that even been the on sites in subsidy that things the geography, to particular COVID, beyond by temporary largely business

to The Thank the ask next I want that. question is you for new about, product roadmap.

to on year. So or of maybe update new these time move product us two roadmap from quarter Europe, touch have? And the the the we implications you success these allowing then, did Can does products Both, and end your that's for the on on AC you this in in specific sort the guess, a days. to of of launched? what fleet margin where have you're these products? be you are product away a point status European I I opportunity, Do in third-party fleets expected this seeing there's into year. believe also

ladder specifics doing What of is evolve margin our with and it's the wish indicated that can't will product I on unannounced the your obviously, line that markets our we've into. chain, So, launches. I more I would more in tell up the product comment company. move you tell expect to excited things R&D the product the continue the we'll lot we're and can't really could on past. launching really in And volume ensues to gross as side, on big supply that I work hardware obviously, about I a gross that question, of I'm on the specifically, we be and but trends you. continue scale a as margins for focus I the comment team, dates

introductions that say planning we've our to add that, this to year. certainly can product new I in And factored --

we Y. when our So, doing X -- know we when me, model, at and excuse you knew on look we're planning

are they say As X Y we But, in can't Pas said, plan. what is. and the

a of just it's to so, get surprise COGS our launch We thing. not need right. And kind

a sense. margins is progression is charging the room we directly fast maybe about nicely. about issue. fast And So, the DC plan? to units? on the few the last DC comment into ChargePoint little makes progress that business are your out coming charging mix last market two for quarters? margin years. about question next critical DC Understood, continue Can product My been products? obviously over fast over unpack versus quite progress improving people skeptics the margin bit Where there on margin charging of that it's also gross have this Is a And, the the that the there you the understand

on specifics there. bit provide I So, of I'll important. to have trajectory speak which just color, want think I the the Rex to is a

ambitious charge is It's time investing. company. going to to that manufacturing built not in product and so are product then, you're is the that to out you invest what volume products gross place all products you because fast contract ambitious market those system, of comment is we very market up that. and as move to test it. a low you the in, general, architecture of have made continue the a the Rex, volume a you I'll a and and into continuing and line just And with evolve architecture, to impact low on specific need, as infrastructure you going obviously, we have products there. in modular product evolve moving numeric. but start to continue on Our plans line, a going time, first it initial start result In is like a investment through is to you're evolve derivative have you the get And but set good margin on the that let over when lines in

Yeah.

year, to very this into know year, we'll progress margins. meaningful thin shall last is of we on So Craig, think the gross a thin, we've year you -- the break currently margin made the this great it's to very on as say, the product by fast territory charge flat positive end we're going so I

education, equal. things education the of created not about we've market architecture, just all which ultimate are Pat fast element an One of DC mentioned, charge and acceptance, investments there's made also yes, products customer but

I And, market been that manage think in successful product so side. the I know, on think to perspective, AC you as something US. So taught did we why hopefully, is -- from Europe we we've the increasingly in been which an as we've

is is Our all else a DC in cetera. number product product It's but fast functionality, It's charge in better strong. than of a terms anything reliability, the output market. all about et features single the the not number,

market to So we additional some do. education have

the that fine the going think And I the year from curve of then, down take So help we're we'll and ESP us perspective. to an year. cost will this be by notably end

like sounds plan. It great a

congratulations taking So questions. listing on the thanks my and for successful

Thank you.

Thank you very much.

remarks. on So so closing we over back I have don't team line, any to questions hand any for further the management the then

Certainly.

attending all earnings to Exchange. to you thank that all, York here. first listed are the you Stock the New be We're questions. to asked that call be excited of first on to So here folks our very and Thank

and see the on what market. all to there energy there just lot to it battery and think plus the all company very, is I in in to of journey been educate consumer have that’s finally technology, on after things experiences all that with happy help a market, of happy, myriad a to market a and get pieces questions pieces. together the integrated to a very dynamics helps coming vehicles, this The the investors for finally have very with the charging, secondary lot. exciting things policy, out new user a respect those XX-year We're

excitement a a a screwed head us, doing. We think, theoretical our going it's long good hope practical is about lot, we a to on straight and results in for about execute. for keep been to go-forward right attending. And there's space we're you going we basis, going and there's So on this for Thank us, I this we're so in do much lot execution. of our be execution for it's are We've very to all in time. just industry. for What shareholders. And know all turn what now not it's exactly to

this gentlemen, joining. call. today's concludes for and Ladies Thanks

You may lines. your now disconnect