ChargePoint (CHPT) 1 Jun 222023 Q1 Earnings call transcript

Ladies and gentlemen, good afternoon. My name is Savannah, and I'll be your conference operator for today's call. At this time, I would like to welcome everyone to the ChargePoint First Quarter Fiscal 2023 Earnings Conference Call and Webcast. All participants' lines have been placed in a listen-only mode to prevent any background noise and after the speakers' remarks there will be a question-and-answer session. I would now like to turn the call over to Patrick Hamer, ChargePoint's Vice President of Capital Markets and Investor Relations. ahead. go please Patrick,

expected on on thank Officer; discuss joining results XXXX ChargePoint's being be call of remind actual forward-looking cause these and and website of forward-looking can These This conference today's today and investors.chargepoint.com. These at to involve results. no the issued afternoon, call statements on call are results our beyond to statements obligation Executive is and to With accessed can and apply growth conference risks and making to first webcast Investors many fiscal statements our and our Romano, our expectations. will website. for our control call. our you which Jackson, afternoon section second quarter from us be our of for XXXX after our during press today's This the investment that as the our Good quarter Pasquale including year on Rex undertake found Chief forward-looking full announcing the materially like we could initiatives. which be quarter call, me Chief release we you are fiscal and We'd Financial statements Officer. uncertainties, management and fiscal differ update outlook

financial over SEC that, presentation SEC historical please the with to be For our use posting filed posted Results GAAP Investors a the and website reconcile more earnings XX, our that Investor please to and we X-K. April on refer differ, could results And on our our on non-GAAP the detailed it release Relations the website. Pasquale. investor Form Also, and which factors to we'll periods for on XX-K with to today actual our of certain website I'll earnings section. description transcript with call finally, turn certain on we of XXXX cause of section call, our this under measures the And to Form filed the note in that release posted Quarterly this and

start well from in of growth the achieved that to report to revenue all high-end quarters, guidance are Thank revenue that growth, the XX% Europe provided you, great quarterly the of we perspective as our call. quarter quarterly we million that $XX a demand Consistent a exceeded working. is leader with indicator across verticals. geography record We on Pat. To sequential in establish first last our performed a with recent happy off, strategy ourselves

increased of supply raw prioritizing The critical we environment. in program remain the assurance grew QX growth Our XXX% to QX. level and growth. we supply year-over-year chain typically level decline beating quarterly steadfast challenging acquisition accumulating seasonal and materials see not we We on was sheet product, the QX achieve is remarkable what between amidst having we of inventory our finished overcame more sequentially the balance headwinds quarter. to Even from that shipped QX during build could revenue are macro our reflects we

but Our XX% up a with mix did the our operations deliver to a quarter. over to assuring quarter job prior and supply backlog again top-line, supply team great outstripped demand this supply degree shifted

normal quarter. Under cost this both margin more call, from cost earnings for Impacts resulting products conditions, higher XX% higher and margin. a on would on margin continue mature in and As have from been more margins gross will this. products higher newer a for gross we the chain availability share and perspective gross Rex the were we discussed our to quarter to impact for previous perspective expected negatively supply issues both expected than

the latter our the On our deployment commercial previously used product and fast label charging announced for we white of new family and ramp manufacturing replacing charge platform, products vertical. the geographies we side, product in commercial continue have to select AC

both fleet applications. represent America efficiencies Europe, expect in scale margin and commercial and technology fleet both highly requirements deliver upside commercial flexible both by and in also to These and these verticals only architectures. driven but R&D platforms enabled North well We in margin satisfy advances customer designed not

with land both experience customers Our of in supports strategy. is component with this historical and land quarter ratios consistent expand investment the our our and

of the period. in for customers which the with land Supporting life our turn we new added initiate margin orders ever decision from this customers the customers environment to quarter generated and customer will anticipate lower revenue expansion a most acquisition XX% stream quarter to new On chain of of for in future, the over a strategy hence into side, at grows that normalcy, new quarter quarter. revenue occur the X,XXX accept the customers the for over over will we new the from of was to a XX% the the supply future the existing expansion Because billings approximately billings consistently support base. the customers added conditions with install the the consistent this

Fortune commercial broad growing is the within now and The we support On rapidly front, existing relationships. XXX. XX% of the success

was Our for the vehicle and had in quarter In was supported relationships. our was our XX% it would for channel sequentially, fleet demand partnerships solutions business if the – supply residential stronger and with have been fourth year from chain of strong to up year-over-year quarter, billings quarter up outpace the last vertical X% weren't for arrival in up billings higher quarter and and XXX% a continues strong constraints. by first XXX% versus and

for adding of existing stages revenue in to early multifamily. single family the in recurring in recurring residents, addition revenue are We

we home under this ended underway of those in We of management have XX,XXX XXX,XXX under and year-over-year that charging programs count, these Europe We do is pay North continue of ports subscription. residents front at in remind XX%. and while track on include active Of not ports are America. family have pilots single in strong approximately place dozens one software quarter X% to are an annual numerous each you way over over as management, have verticals of well. demand and increase with DC sequential our home We in the chargers a commercial as to utility fast. I'll increase this XX,XXX a fleet and ports

our is to XXX,XXX our of number XXX,XXX the now over ports network, Europe, total addition roaming additional accessible drivers. over America reach to In North in bringing and for ChargePoint ports

milestone, or driver the celebrated second plugs quarter into every we ChargePoint scaling During a less. another now

experience. alternatives, strategic model the want opportunity NEVI communities along in to awarded the EV road in includes front the range. progress battery state. amenities the our to illustrate combining business electric of beyond that we've is fast to to driving Recent that Colorado and the with great partnerships, distance partnership Program Renewable completion Sachs want This National drivers short them. accelerate that our the the U.S. Office Power serve making, operationalize with charging enable six out examples as including driver's first with build across and travel public These believed Starbucks Electric us Volvo trip On the critical highways ChargePoint drivers Goldman highway partnership businesses a charging how a private the is Energy long delights the of in A to our of corridors, to known tremendous a financing program. such sets as way up long Infrastructure Vehicle in our

today, close this in on being of year broadly, Canada to in which commented previously, all As five rolling and years. new XXXX, there place calendar environmental statistics. the and programs stimulus both with other and federal, for in I'll we to should the formed U.S., state future. Europe important broad manifest commitments begin More indicate electric have some are utility

fueled good climbing good over and XXX cumulative greenhouse over Our make quickly now network drivers you. the as gas XXX over turn we of is discuss gasoline Rex we The of electric numbers Rex And four Q&A. By before to miles estimates well. business, move over to is metrics, has to can to I'll tons our avoided what have to this planet emissions. for gallons demonstrating scale billion over that financials these million date. of for

And afternoon, Pasquale. everyone. good Thanks

comments see know, non-GAAP earnings for exclude where intangible a compensation, of to non-recurring results our to all of reconciliation costs we related stock-based non-GAAP you our As assets GAAP. restructuring release and Please acquisitions. are my principally amortization and

indicated, QX. solid a had Pasquale we As

quarter a above the up beating year-on-year million $XX to QX our million revenue $XX of was XXX% $XX and finish. million range previously For announced a guidance

build. particularly Last about with supply. as quarter, are demand We supply could spoke in challenges shipped, and continues costs that worsened pleased this outstrip chain up we performance, backlog QX, we to what we and robust a fundamentally given backlog driving

up was revenue in the XXX% sequentially. record Our the XX% million QX, of QX backlog was a and revenue, grew million XX% Subscription up from and of at systems fourth XX% total at at sequentially consistent with up revenue also April, and year-on-year XX% backlog quarter. $XX Network of year-on-year. charging end $XX

future is revenue Other revenue which continues revenue of at total increased million subscription revenue, end at deferred payments recurring million commitments $XXX the customer finishing $X up X% year-on-year. $XXX quarter to QX. the Our from at and grow, and of XX% from and million existing

verticals. to Turning

billings know, you commercial XX%, which As split. XX%, percentages, perspective, residential and billings fleet report we approximates XX%, where X%. them the other revenue from QX a

organic growth our and revenue seven residential by was constraints, XXX% and to strong to due XX%, from From a in commercial impacting acquisitions and plan. $XX first contribution growing to that revenue sequentially by and great fleet deliver million quarter, in are shipments. was lower Europe America representing Europe supply QX progress delivered was perspective While Europe XX% XX% In sequentially. driven QX continued the in points, geographic year-on-year North

purchase was gross customers on QX for Turning supply challenged margin points six assurance non-GAAP to with but variances and new expand products, of and supply mature logistics to costs, ones, three in XX%. and QX. non-GAAP this results impact margin existing margin was price this margin, shortage approximately remain representing which of to quarter included higher We the gross margin focused our quarter, was points as land and representing margin approximately of higher new

to rest We three main year recover factors. of the the through from expect margin gross

constraints supplies fewer products. First, for mature

newer vendors support of increased to To of by to new continue third, efforts as by more a as X% logistics continued well higher by normalized margin our technology-driven prices to to mitigate on margin important mix improvements second our be ensure year-on-year invest evidenced our OpEx purchased challenges chain supply Second, costs. get as continuity work to continue and continue on QX outperformance and $XX XX% market. summarize, purchase Demand continues higher with engineering sequential we impacted revenue compensation key costs. chain higher by to the Stock-based and back QX for supply growth. to issues our expenses increase to higher price a introductions supply and our of as to continued materials products beyond. a side pass for our product remain Non-GAAP and be and component to we points were the $XX the in received backlog is and strong impacted and for million, costs our the increase operating growth of hardware teams half was million. also also products;

Looking of we with a cash, these cash $XX.XX. following five-year $XXX million X.X% $XXX notes of close quarter the April of finished are at a stock coupon offering, the convertible million at price carry note and a convertible

XXXX. We have approximately shares XX, April outstanding of XXX million as

supply demand expect guidance, quarter XX% based in $XX of midpoint the million in year-on-year environment, $XXX at the to for revenue XXXX, to fiscal reflecting up Turning to and million, QX. challenging be we broad expect persist we the chain to second

guidance are operator that, and the I'll turn being for in call our confirming on positive given back our the to XXXX. calendar remain we call to annual flow committed With Q&A. last We cash

question come Bill go Our [Operator Morgan. first Instructions] JP will with Please Peterson from ahead.

I for nice light off based getting question said then taking of with I that And beat first at that in is, you sort the out the to environment. supply guess, how job constraint shipments factor actually Thanks of how margins. and billings you somewhat residential was in had then questions quarter, than guess. revenue all anticipated these what's lining mix was did up in it I first impacts the much my the Yes. what in looked your down gross and and is that? up player commercial sequentially different and

quarters, was than of residential, quarter mix it numerical obviously. direction two out which bit From also in Obviously couldn't we more bit expected. strongly impacted even charging and So that back the by for fast in of people get some three little work better which Europe things shifted home to from strong, fleet door But it's aren't doing. little done was the did direction yet. of we're first, was of a the perspective, a commercial it obviously part perspective, is some a was last or the is a strong, we the the and strong, supply

we quarters. So, direction just it slight shift wasn't that was meaningfully over seen different product you've expected. last than two mix what in a It the a

bit you substantially pretty between is And guess, to that for I mentioned great. in that out in coverage to to – now a of That's they maybe one? backlog the demand and year light to at and guys? cautious But full full bodes well yet how or you visibility their for I the down you the backlog end pretty be have visibility, of visibility guess so have much might especially year. year is a Just try the be up quarter, more becoming the revenue midpoint some you own the for of business the was much least reach come your how on for may – is there, get guidance, it feel what verticals

a we we're now I actually entire happen not backlog a I All here pop because expect so you'd can in sort We're a Yes, but things of so We're backlog say the out material, strong the we stuff tell for different well, can just of out of we inventory backlog to, out. don't backlog to blew obviously if constraints I also, the a one of anyways, you And we QX what inventory. supply number. building company not rest that. and frankly company. raw year. say very is, for number, other be guidance very, is backlog give our

come West ahead. from ISI. question Please next Evercore go James will with Our

Hey, good afternoon guys.

Good afternoon.

James. Hi

enhancements Hey, And new you with maybe to well. that today? technology, new accretive color maybe roll products enhanced you're if Pat, they could you out or products, curious I as could the around that the the out you margin said the that rolling talk some are know the

Yes, James in on long-term I serviceable number for done aligning way. velocity ability very could what – know many where a fewer and a our all, a cost can SLAs the transition is as that so of we don't components of of applications against we and fewer fleet modularity to so places there's effective necessary the a in first the I support – so there's one. lot There we've improve products commercial start

to new transition That's platforms. point. us seeing you're So one

point I’ll second look of enhancement, in The terms you if at just highlight few. a

if is the chargers world identical software its is at remember, functionality. has platform, that AC universal certified applications. AC capabilities look a because rolling the Europe It which it’s moved from capability you Board new same we’re that’s our network If across being And a the And about and is latent new fully certifies North – is, way on thing, America. the in very in metering platform. the platform all for – world think on in outside and software chargers, exactly constantly AC to a you how a all is complex downstream, hardware we has the on and have our but software processing complex mundane, the to incredible environment

us managing so a that because which is very important software, resource limited not perspective And set is hardware and high connector environment leave has products, in future enabled many to new us you when our – commonized to we evolving AC you’re for become OEs a interface also we DC enables the types all last in only of and against smart us dynamically future very up velocity not change point I’ll types. think and many now for field the ourselves to proofed make, then platform, times that we’ve cable I’ll from generations alone our for but

match and mix DC setting. types really to think ability and the I benchmark AC So connector on is

up plus because with One particularly Very for this financing sales Is more sure. your given Not seems helpful and or there fair are arrangement well that a me for are. your the business on vehicle set Goldman, of just its to have with electric and the suited – guys infrastructure national program, sure software statement? me you – I’m model you model. it I’m

think my statement, – beyond is the is on more, I their the little battery think bit NEVI we I your when charging to in come to when drivers your a want is driving has And range, fully I they’re think to driving remarks to it’s the earlier, Well, program a be but focused it support. particular important that the it made unpack which beyond question, fair statement I battery most use which case married range. amenities

our a owning and not is all And business model ourselves. about to charging marrying because business and about so enabling charging

We F&C – business. the fueling are business, convenience and in the in our everyone’s friend

go will our from Patil come with And next question Please ahead. Shreyas Wolfe Research.

Thanks so much.

that some the if – year So of remind you for of the of those you ease visibility impact of talk supply QX, would a the that of the bit component what constraints in I that sounds maybe you us will can constraints on just and that. few drivers rest can then It talked better? to us? what the magnitude like some fact margin of give hoping through expect gives about was the maybe a improvement supply little And the a you the maybe, you that chain did have confidence more get was you about little year, chain more the

Yes.

in positively able able we but get that that up weren’t were those from some to out QX. them X more We to to impacted the products. would’ve QX, on them get of door, more And other much margin expensive the three regarding not it total was difficult ship our points. or here. to more the impact do So was mature being X of just so

the recall to our you As it, points five, XXXX it’s that’s to seven X looking baked quarter quarter. is might guidance about the And from, forward never which on It be into an estimate or could one year, perfect. XXXX for next. got per

point three on about So that, I of QX, the and that here cost this one average bring hole towards mentioned control look couple have we’ve a actually the back half we right? we’re will we which dug the even the down X that, we within a thinking year, is we that that the as So ones control, in technology improvements factors of doing but of environment. actually

look you we do other in some one, you what means that we’ve and the of place that – feel If passing like along know significantly second at improve think and particularly we half. the then got the moves was that necessary to things, costs the we’re in

to a in in our meaningful QX quarterback. lost So we uptake see and to QX points And goal this we want is the then nice and X get QX. uptake

was you that how thinking that volume the previously? margins bring imagine the of and – but And talked I part over for secondly, I mix that to maybe some the is about in the mentioned can drivers in with – talk And with product last we should you’ve few DCFC. Okay. levels we – improvement it’s in one regards help then – been margin component, be you about sort category? the and factor will quarters there a scale that to that’s target regards about up to of would

that is first as make I are say the mix that’s about. just dependent trying we we that the we’re so So I as talked life are better not today. would I mean factors thing to

be that as away, think today. go are So as sensitive sensitivity won’t I but we nearly mix won’t

a can which introductions to of our than we very right label. yourself. imagine product Pat entire in is And white talked because product we to you us portfolio as AC the lot help make going is do third-party I coming we we to So that better Europe, are then label product. platform you something space on that’s sunshine which going the think harder And one fleet be margin that’s successful we the use The in is now do universal about, new to that as see something of offer helpful. it white of

the no fleets created So are two same.

– So including another et to DC to cetera. higher we so and most AC one software do and both will

year, – that gross think is you I going how this evolve if think I improving the margin So business our confidence to solid. an at is in look pretty

will ahead. come Colin question Please go from with next Rusch Our Oppenheimer.

guys. much so Thanks

dynamics come robust win the into bit position finance going that that of thing this half the Is year financing where folks American terms we the at With the your flowing? some right to seeing and with solutions a competitive in higher we’re of partner with your funding of offering? Goldman dynamics. what’s compelling last Sachs lot suite table about little of this sort funding North fall. you rate go through you’re see and that some nuance the substantially with of a the a the customer service infrastructure of and Or these the talk Can of expected now around seeing you’re the get to some as the around customers

settlement win that, analogous drivers an how corridor how to is program Colin, effectively to a avail like all, to historically high – We’ve brands and – state. measure a in I money is way. collection want on the to amenity that manage organize the to should convenience – to that say the coordinate that much along NEVI and general, states. can to quite program understanding way programs remember how bring so money muscle awarding as the which and that, that the awarded they it same forgotten were of that people some that themselves the first built been you VW have in and had something actually – fueling if about especially, states of now, it’s to most brands we rate’s

where built where – can that to that relationships and states capital, marrying muscle a at programs available other money we’re frankly available, of amount really we sources think utility you where if and states playing. It that of it combine So we once with tremendous we known. and those once to financing that is from and that’s lever obviously already fully that options everything we programs into from look expect take the be pretty selection can with NEVI it in in program leverage VW D alignment in is accordance, And guidelines well what but supply government Appendix with that the reasonable and control to federal they’ve process it’s expectations. learned states our LCFS all the of, keep the

shape, So I it’s not think in over. we’re it’s good but till over

in development higher Okay. terms That’s little of other of bit seeing the a faster then batteries the helpful. accept you’re voltage about And and basis? can a of the commercialization in you charging just LX charging technology on talk actually Can move from some LX and to terms what forms. ongoing that of

Sure.

So is voltage answer come which that about standard you’re battery traditional announced battery anyway, current to see vehicles volts, for XXX packs. connector kilowatts key, you be to different, let’s is question either the voltage little heavy cars will pack but out at more to That’s really charging to passenger stick market cars. see starting a and the XXX is more the higher for a passenger limit with the short at vehicles fast because there bit

products the because adoption of limit the mass XXXX consumer, an we settle just a get to market adopter. higher to capable voltage necessary connector. a the market all made general not time for early adoption as at to point the to drop really direction. in of that up we saw to mass the for to due charge So element move And as friction beginning which charger fast expected We’ve volts, it takes is fast from dwell the a our a the

design from line single in shipped capable that. day we’ve charge is been product that’s under fast our our of So zero every thing control

So we us, to don’t have do anything. for

And from our come with go Craig Irwin question will Capital. next Please ROTH ahead.

the then next you’re taking question. like bit customer And of capture little the versus you a it around customer and over product. In really the talk Good front or XXXX, chargers new what landing after impeccable an additional on multi-year Can maybe additions? those give a sort course of XXX sounds customer about costs going look with thanks there like evening, relationship. your doing prioritizing new remarks, could the if available the customers costs maybe you the for to breadth color my relative end, first XXX relative of a job the

of buys depends customer’s what on ongoing It buy figure look initial and terms like their terms dollar of like. the the in what looks mix in

– very even So use one it’s vertical, case hard like to use specific. very specific it’s a within It’s case commercial.

Here’s can a you to give tell you of what color. I bit little

as billings a XX%-ish referenced one the my in new that’s customers of and coming You’ve got, over in, remarks quarter X,XXX for our in quarter.

can you So imagine looking numbers. average those at just two what the deal is size

fleet customer bit unless usually potentially new constraint. customer on a it’s a acquisitions, a on with For customer is fleet smaller side, more respect that the availability, unfettered the it’s to the also which is depending

how are onboarded. That and software then they customers how begin They’re to small, for learning incentives forward And that up infrastructure. to employees, energy getting that customer fleet. running to a go help their create basis, but that on spend business, to but sizes we on the where you time tie all how them, how plan, that to know into course, our getting their how learn your they whatever to So initial customer environment. their deal is how budget, you’re of out operationalize they want the their figure scale

in parking the almost or match those a rates whether of vehicle accumulating So to customers, the they buys a T always be they arrival a initial the fleet later those greater lots those and buys, keep because are customer. than commercial

is understood. about fleet. Understood, second My question

and as the understand be? providers this Fleet’s working making range volatility little really as might bit quite working Can electric maybe what’s obviously buses, of you that is serve far of a comment to out area this markets, vehicle of mean the look us there, you. can products you channel. this Is you a at there’s a these we really delivery? but mile out about So Is lot into the maybe what sales when success different for have there full ChargePoint? last I the vehicle, rate quite it the fleet help trucks, for saying box rate

Yes.

So directly in One, mapable what – so integrator. I our fleet. two things think to success we that for works make there’s the are customer the don’t

software elements about ability Okay. from as transition portfolio in come what when consult with fuel. thought meaningful up out all potentially liquid a roof very project along the all having services to huge build to from a manage It they’re there. fuel with to all electricity one That’s but even the simple, is and sounds differently under starting speed technology the to very to comprehensive

And think that’s of a so great – it’s one reasons. the I

in terms are because by from vehicles are of success used The forces, sub-vertical sales vehicle et factor literally fleet take we small commercial, commercial every light cetera. form by in – home, relative type, within other light we

have We’re applications. fleets a a variety position in because most vehicle of classes and

one to a again, position in those We’re shopping, stop across dimensionally be sub-verticals. all

one, one of to if don’t So have make different your bunch the two cross above. providers of things, throat go the versus needs all to software you thing solution we with, platform, be one last to And for, those you customer solve two, cetera. don’t integrator. a choke all It’s mile versus those things one to say, home et fleet to take integrate integrated on

early ourselves I market, that are that market early effectively we why speaks establish segment. to this think to in in able so

Bank Please question next America. ahead. will of Greenwald Ryan come go from with Our

to Maybe guys. afternoon, Good start...

Good morning, Ryan.

you’re the you through and talk ASPs pass kind Maybe levels of time. the the ability far to success year first demand? to evolve higher any the the about bit of this expecting Appreciate a rest starting and how the thus Can through costs. there. with given of Hey

you. Great Yes. Thank question.

year measures rolling on did Those things did now earlier the the through of a So that logistics visibly front. changes couple will some took taking this would half. in QX, And and on pricing we roll then – briefly I in a then measures front, few will other second the we we’re through start say.

So seeing what measure it. this side so of on we’re that’s – the

holding side I are this, ASP of it, very have it The to too. the think ASPs to alluded On alluded I and up nicely. Pat may

either. there it, from have we’re What ability manage we can’t we of to we nobody to and perspective. As finding in don’t supply in you can don’t can’t is, some probably imagine have our is environment, elasticity price – much, as a constrained terms a discount else if build to

the QX we the then see in are not half. Pat little – all impact says, we’re seeing, we’re all. not stronger One there’ll a you’ll this. of think thing in business at I of assurance So bit not meaningful and supply, be of second Mostly, go buying with we’d when

of the way And up it. loop bit kind XQ, how pieces maybe close of and provide color any helpful. specifically into moving to about on on more the just given these margins. Got step from the thinking you’re lockdowns China? That’s magnitude Any a to in implications

in go incredibly annoying. I’ll to are Lockdowns So, back China front.

to has team ops had of around bunch manage a our So that.

ground quarter. we’re So gross in of confirmed so which terms to margin gross a XX% XX%, full looking give included some that’s up. good. we by margin the But the make had guidance year, clearly, Don’t having if year, guidance at to for at

we northward. if I you disappointed can’t sorely march be number. just would didn’t a I the manage give to So, start

question will go next come from ahead. with David Kelley Jefferies. Please Our

guidance David if fiscal about trends can incorporate from year of business date? seen believe Have XXXX. talk on year your so, Kelley. full you year any that how guys you or demand from didn’t reversal prior Gavin did workplace is I this is in work customers changes just for This home trending? in not incorporate Kennedy to for a And

Yes.

billings QX. said our was our as down So workplace of fits segment. inside sequentially of remarks, And a in Commercial prepared my from Commercial I as percentage

you part the know, really As that’s business. of important a

it’s a say to sit here we work. today. that to back as we from pipeline I So sales point, because see would do people are tough your been pure build perspective,

but that going retail, coming So, get to be hospitality, back soon, around. to basically that down waking up, of really those start commercial, move does the boil back optimistic it things guardedly are that’s Obviously, will to all other I’m work. like components people very to all more there

not you but gone the and being positive stuff. that see force forever, we So track do pandemic is not with pipeline. Yes. the world that’s we opening Obviously, use all sales motion in and required. The up

thinking rest we don’t year. of kind dampened to think is the of I’m going I So, this thing. – be It’s the

up. to think it’s pick thinking we’re I going

through off I fair maybe then remain switching year-end? taper we follow-up, that it. statement? quarter, sales just And R&D how but think should you gears, faster believe And is a a percentage as as a Got of little a R&D than elevated, about would that bit still last G&A. mentioned

– it it’s been So bit. has bounced quite around a

sustainable should of I as like the but that OpEx do there number, and percentage things for scales got got sort see from should as but in year popped looks the several you’ve standpoint, run can’t QX year. of within a how doing, But you’re of a dollars it we you a you good improvement revenue, as obviously, end the year. have we on three so terms this of in you expenses, company One we we – my million in script that. into, thing give like the taper it overall percentage rate all mentioned components look NPI I the pretty the I meaningful at when think

Please will Harrison question with next ahead. go from Kashy Sandler. Our Piper come

thank taking Good afternoon questions. and you for the

we’d from you was XXXX? seeing perspective, from do seeing pick the curious as Do you you I picture later a just catalyst? think big follow-up. And agreement? deal, have a more XXXX to Or that start from revenue see start then the when Sachs So up in impact expect Goldman maybe that of I a

one primary of should projects, or year, The we’ll So fiscal like the likely. complexity projects arrangements that calendar But will provided underway the GSRP. next you of next Most year, I inside can the benefit that given see reason by this up associated – say. for show in year the is some financing developing the with typically the of installation done passenger through that we’ve respect well. and the partnership is for focus the them civils the on permitting commentary projects. all naturally some but then with more a getting know Especially as time I – big had construction this we’ve on just and fleet getting car, project, in complex to with call – takes and fleet there side,

then Got subscription than was bit maybe increase QX a flat wondering and and in period we looking I last just year? a next my deferred just at so you. the was question And revenues QX thank that's what question recognized acceleration growth? increase the was modelling, for saw I question. it. reconciliation And more was happened less were it me the I That's in that it during for there unique of the looked revenue revenues at fiscal – something that a in was like for Rex, is maybe a of helpful. looking little deferred And quick

Yes.

and So jive cloud most subscriptions our deferred and our project and predictable occasionally over around burn get a off revenue right of those our is they're time. expect a you actually pick probably you the XX% and space, we chunky to revenue in up fleet this take and get as you continue of can't I it will when shoot. that's well, and assure both we'll very that's software don't they therefore and where get that. bit the go, done warranties I for And something

held that quarter have did up we completed, wasn't that material we one for we one months. So been did number, the had few but a a it in project project,

will some see you So that. of

spends. other at the a a about product software talk is home So you impacts the you versus product mix in thing product that should that smooth that verticals, a you look a subscription different to different from would basis sure our necessarily DC line. understand the you not content it from we you stuff mix, when AC does get But on affect line modelling out. line percentages I product then across percentage because And subscription it dollars also make an heavily our look and at perspective if then you versus encourage

software the product, now of meaningful factor. an would at by see you right buy if represented AC and you we're DC than a – is percentage – So that's percentage product the a much smaller

I may map we've to to not need you So just map to thing the the be what that. and information enough next to have the think you, thing given subscription

our ahead. And Vikram question next Bagri will Needham. Please go with come from

the it's potential website. wanted at Hi, for I It section like there's on XXC blank about under Vik section the Needham. tax a from the for upside XXC. company benefits looks [indiscernible] ask to

basis directly and from follow-up. there's in I how do you you. So both XX% from option. indirectly? any I you previously the And are the impact So breaks tax higher also to direct about then $XX,XXX the and I up Thank guess the then also a one of impact the upside think cap? the think versus And pay just how $XXX,XXX just, to up about reduction thinking have

Yeah.

tax experienced obviously before. our we've in So credits industry

lot are other a that simultaneously also programs of running. have We

every incentives and pool demand meaningful subsidies, inflection if If that the at the a see there our look has totality state utility put bit credit out subsidies, pool effective programs, a on helps, for look you in business, you programs, we the generation if little in at at the state in because of helpful. don't substantive already look of effective you that but depending are you of the there's geography live tax that

at have finally stuff as a about take building. is think with a if take think components, look business isn't to may backlog – tax whole, massive but business I are in navy program, really demand policy from you you will this driven the to it's if it's without look those the of XXC driven that pandemic bulk – of coming they business a not credit, different inflection, if all take that a environment our business that worst rate a subsidy nice now because I out the the most nice supply The is pressure huge driving at the cars by mean, of you growth demand. our arriving obviously chain

the all do would So not vertical any customer's where beam while on things they any beyond program friction particular company. nice not they on some a for would mind in focus are end live, I I – laser drop as depending and these subsidy or

Got it.

pretty that impact if to so the guide Okay. case? the doesn't related that's sure include And but clarify wanted question, any just one XXC, from

our sales – team No, tight process mean, force. with our a look, policy very runs I our

customers. use partners channel referenced can think you’ve the force our but on use scenes behind customers even our have tools we with I some our sales things can more with and website, that

how we to able to think the from – a forward at done tax because going absolutely of but be we’re meaningful to to already XXC there, credit friction that’s in what looked adjusted hard we just it’s already to would’ve enough anyway. already might So think removal can say experienced be we’ve think quantify. friction look something to And that’s we’ve going don’t to – a XXC. and adjustment don’t see I customer such thing. some versus There’s haven’t while We numbers. our know I for point

come will question from next Matt Our Davidson. Please D.A. ahead. Summerville with go

Thanks.

would opportunity. that? to quick your mentioned timing, about the around more single maybe maybe Pat, do whether Can revenue ones, you’d you purchases? recurring in on you talk forward installations prepared economics, your this talk or something little the attempt with approach, couple be you remarks, Thanks. a a Can detail family Just existing just bit go

We’ve can with grandfather running. reference Sure. Yes. a in on lot that order already go I’ll our the mean and patch, back backwards and in utility utility it programs an I ChargePoint depends in installations, but you of whether of there’s a customer. one couple well, programs. done of terms existing program just I’ll existing

program. were look existing the potentially did If ChargePoint of at been emails going at not that that under PG&E part home. in program home out to start enroll that have program customers There the them you to

depend a will for patch, there do that them, existing the their it we are the program would utility if customers if certainly don’t are which But if wasn’t. to set. is recruit frankly rules So to incentives it why the they that on in it’s the favorable it

So one. that’s

some I thing rolling are bunch. one terms the for utilities home you In The programs tell charging. a deliberate and we active across of have very is the country utility pilots can running

program than a So – normal slower process and what a to is evolve a broader level. broader there business to is

growth installed Europe of hard time And to the curve a cars. that and of curve this steep time believe blown time of X% evolve but plenty the we growth we’re the growth a the in plenty There’s right for we north there’s little base are programs America it’s parts think full given by to penetration North those to to going steeper. of I steep into I is of this into curve. now, programs get get in very really at know because industry

managing And and and their bringing I to bodes and well, amount tremendous charging overnight there network. of those because think to so management a it across utilities there’s cost benefit rate load time payers there’s savings

end then this just In maybe And at another way anticipate? conversion actually supply respect sitting for you’re XXX revenue you to guess backlog you Rex, I’m I it is, fiscal I a backlog assumption, than bigger asking you. the here it. much do to of have year one’s Got with XXX what any today? chain, expect the put to Rex guess do to maybe how if with

I That’s a an answer head. great had because question, my in

And so you asked the tail end the question. of

something, give smaller, mentioned think for earlier year backlog if actually perspective. between would to I to weather don’t is sort [ph] I backlog is and type The really boost nice if that really through. up great So We relationships. think have backlog we’ve we’re we of good that selling here inventory, be tend I we But clears, say mentioned lot company. about a I as earlier, of them got CM a commit the maybe don’t right. to had revenue on guidance I the major today build the to the this the as slightly and so would I We I of a sell expect

the to that backlog it’s there. But early remains up we’ve into in that seen. QX is lot not or place it be fleet. that done, level but in today the so anywhere it’s if But [ph] we be or of That’s potentially So assumes before, have I wouldn’t just net-net, we below yet because but get at we supply. surprised the of can any numbers is guidance contemplated with a where end as

question go next will Stifel. our with And come Please Gengaro ahead. Stephen from

mix that you you AC forward. understood subscription revenue impacts completely I from Rex, I how – percentage earlier Thanks. the Could me. Good how Two color little revenues I'm add versus sure a DC not think concept? that just said afternoon, subscription the you everybody. and things of for going mentioned to that?

comments that; a be quick that on than ASP you couple A much, if whether the fleet of ASP of basis. it's or per-port port, higher on highest a products even mentioned, AC Rex commercial DC look the at it much we commercial the have for end for Yes. as

end on DC a only port recurring be Now for Okay. basis absolute the fleet does than percentage because percentage more dollar is per-port even product; expensive much On amount generates not. it so an it does sense? sale a would make on a it the on AC product especially dollars, initial basis, basis higher highest but in a a of basis,

Yes.

calls the driver. single is residents, out So that really second that's tracked the it That's reinforce the to there earnings our fundamental single port new just that's for fun haven't – listeners a I'll any that point of outside single-family fundamental. we're to port and of has an hardware there starting we recurring. But right? attached Every subscription every even before. see sell recurring, software make

without We that will software not sell subscription. hardware

will We other subscription if hardware prefers third-party if the we that's a solution hardware or software customer sell against the third-party have – don't hardware.

two under software to our an quote installed That's can why that that the as it being larger the that's so in So there port percentage And software base the lastly, significantly faster. high commonly adding on is is point associated but absolute revenue from the new basis, is wrong way on higher, actually and the ratio perspective, that on on have basis with a those optics that ports existing us in out on paying it's ports, because is is the it revenue until on the number confusing any the is rated recognized port is in installed-base of we're that is what growth an accelerates the ads install the an says hardware management goodness installed-base and accelerating port the curves the Until direction the given I'll annual the management. real under rate because to line we line no basis. drive P&L is existing growth split what period that quarter base to because there.

Got it.

see flushing to appreciate you do reasonably I the clarifies from margin a I And high level based guidance. gross the as lower Now one it obviously perspective. get – earlier, supply things this think a end when bit know we the – rest – just and today you what There about out on read versus of to that. chain little and we you the the – upper you addressed are moving visibility, other but about you you what that's kind reiterated is the quick end little year? Like mean, I takes things, for of when pieces confidence the it that the how think as a biggest you think bit

numbers. thing So done when you for but have end shade one way, and their what even and fundamentally private, been I have – for years hit sales couldn't we but we high – very either couldn't we've team four and is good were they low here we a I've

them of sit Pat lot and we me. QX, now with when down with QX and so we've go through got a credibility a with And QX, credibility lot there of

talked like? new such So very seasonally and to is worst on think record have just in we even We've your the lot products track down questions on that building keeps QX. my got this several good seasonally this online in really be the coming I here and we can backlog. be – got call, year all are in It's what a nice encouraging. they fact our It too; help, what's as we've of it? – of mind backlog We've really, is would comes build that a look so a quarter, which good it going

there looks put really, our the good main rest think the – So and to handicap the through we parts so and together we can we and the of is, out as our look think, get really them get customers. demand we just we them year

I number. So pretty good feel the about

Fox Please And with our ahead. come go question will from Fox final Advisors. Steven

afternoon. good Hi,

about just quickly from corridor You some quickly me, so and please. not are the out? highlighted Can state – about or in federal how completed maybe field just Colorado dollars that talk go. frustration one rolling you in to one you guys with been there's address five Just

your a So think not to Thanks. dealing you funding. your how And talk I'm it's I about some wondering for advertisement in these was or could corridor, experience to just it's I of it just that you it's like curious with but if longer. take with is little if numbers, expectations maybe proceeding know going

time-wise about And our uncovered. asked any so because fault historically, how are in expectations and position like questioner spell state, when XX to initially the press of of operationalize. just of we a It's release and to in or just things longer – what parts with actually been long other bullish, to modulated forums nature. a policy things a operationalize It's public this you. takes when lot questions it government moving to We've have those and than you're It no that funding. when years of only always have out we experience, around there's dealing does programs less understanding take

have of then for of program. example, what position a of program, a having The oversized parties to happens. pretty we've the level modulate onsets, down rapidity obvious along to that to it external a think And is find at onset. I that expectation I natural tends So in built continuous we ourselves NEVI year is actually in ChargePoint matched think the path. program Once expectations to five as go

they've to The first of bigger the $X that year dealing – programs rolling some a services. because experience commissions had. a But the programs years a is And are Appendix things a little of reserve the now smaller billion we states. five expect the state or top that for year VW and equipment that already D for outside to at that of these have like level, kind it's its it's with bit did the go benefit proviso with

the get while get think paste through still all is So on the that et the of fact construction, still, But cetera. And copy takes awarded go and back will program still previous they we a the learnings it those they even of utility lot to from of operationalized. you the once to have things. can provisioning, a faster operationalized, then

That's a delay. bad there's take good come okay. So in have will lenses that's thing; this just over to That's set not a years, This a – our just will we thing. all adequately. natural and

Thank color. that appreciate I you. Great.

conclude Romano would will closing for today's question-and-answer that And over I Pasquale call session. like now turn remarks. to to the back

There's given and – team for quarter all for what quarters case. is ChargePoint for the the thing get to a designing it's a through, at that thanks first foremost, quarters that's a the for for, of then as really company, constraints I'll that if single hotspot this, pulling tape leave we out were what theory together we've listening. so business. match team That is you the encouraging where us, you and demanding XX bunch the I'll growth by years reported again reality ago, the firing. to I'll all just Well, we've now, in thanking on no you And been all several of we company see what with verticals our there here was rate, close most what the – to – the now was nice very are rewound the all

So diverse encouraged and got quarter to great well do Europe despite constraints see for last business we're geographies. really supply that the we've chain here a us. did It it now diverse was as as

of chain that limiter the get mentioned, this manage about need. which a really then at be at when Rex then to optimistic we world to supply the our a we very full much limit our looking of business everything we're forward we're that subside, to point, days. So space, to the leader and knowing these be we're growth, and can continue our ability can issues seem with in benefit we doesn't as Because of a

So thank see you you all time. and we'll next

may Thank Good and conclude this for will disconnect. today’s conference. you bye. you And now your participation