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ChargePoint Reports Fourth Quarter and Fiscal 2021 Financial Results

03/11/2021
  • Fiscal Year 2021 revenue of $146 million, exceeding forecast
  • Completed business combination with Switchback Energy Acquisition Corporation; began trading on the NYSE on March 1, 2021
  • Increased total cash balance to $615 million at the close of the business combination to fund growth initiatives

ChargePoint Holdings, Inc. (NYSE:CHPT) (the “Company” or “ChargePoint”), a world-leading electric vehicle (EV) charging network, today announced fourth quarter and full-year fiscal 2021 financial results.

“Last year the global EV sector continued to show strength as EV sales grew despite a slow overall vehicle market, bolstered by policy trends that continued to accelerate the shift to electric in North America and Europe,” said Pasquale Romano, President and CEO of ChargePoint. “In 2020, we continued to strengthen our market leadership position and expect our growth to be fueled by dozens of new EV models anticipated in 2021 across a wide range of segments and price points. With a strong balance sheet and a capital light business model, ChargePoint is well positioned to create shareholder value through broad attachment to the electrification of mobility for fleet and consumer vehicle markets.”

Financial Highlights

  • Revenue. For the fourth quarter that ended January 31, 2021, revenue was $42.4 million compared to $43.2 million in the fourth quarter of the prior year period. For the fiscal year that ended January 31, 2021, revenue was $146.5 million, up from $144.5 million in the prior year period.
  • Gross Margin. Fourth quarter GAAP (as defined below) gross margin was 21.0%, up from 20.4% in the prior year’s fourth quarter. Fourth quarter non-GAAP gross margin was 21.6% compared to 20.5% in the prior year’s fourth quarter. Fiscal year 2021 GAAP gross margin was 22.5%, a 10 percentage point improvement over gross margin of 12.5% in the prior year period. Non-GAAP gross margin for fiscal 2021 was 22.6%, compared to 12.5% in the prior year period.
  • Net Loss. Fourth quarter GAAP net loss was $90.7 million compared to $33.8 million in the fourth quarter of the prior year, primarily due to a change in fair value of the company’s redeemable convertible preferred stock warrant liability. Fourth quarter non-GAAP net loss was $33.6 million compared to $32.5 million in the prior year’s fourth quarter. Fiscal year 2021 GAAP net loss was $197.0 million compared to $134.3 million in the prior year period, primarily reflecting the fiscal fourth quarter warrant charge. Non-GAAP net loss for fiscal 2021 was $117.8 million compared to $129.9 million in the prior year period.
  • Liquidity. As of January 31, 2021, cash on the balance sheet was $145 million. At the close of the business combination on February 26, 2021, cash on the balance sheet was $615 million.
  • Shares Outstanding. At the close of the business combination on February 26, 2021, there were 277.8 million shares of common stock outstanding.

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

Fiscal 2022 Guidance

ChargePoint provides guidance based on current market conditions and expectations. For the first quarter ending April 30, 2021, which typically experiences seasonally lower networked station sales compared to the fourth quarter, ChargePoint expects revenue of $35 - $40 million. The Company expects revenue for fiscal 2022 of $195 - $205 million, consistent with its previously published estimates, and representing 37% year-over-year growth at the midpoint.

Conference Call Information

ChargePoint will host a webcast today at 1:30 p.m. PST/4:30 p.m. EST to review its fourth quarter and fiscal 2021 financial results and its outlook for the first quarter of fiscal 2022 and fiscal 2022. A question and answer session will follow prepared remarks.

Investors may access the webcast, supplemental financial information and investor presentation at ChargePoint’s investor relations website (investors.chargepoint.com) under the “Events and Presentations” section. A replay will be available three hours after the conclusion of the webcast and archived for one year.

About ChargePoint

ChargePoint is creating the new fueling network to move all people and goods on electricity. Since 2007, ChargePoint has been committed to making it easy for businesses and drivers to go electric with one of the largest EV charging networks and most complete portfolio of charging solutions available today. ChargePoint’s cloud subscription platform and software-defined charging hardware are designed to include options for a wide range of charging scenarios from home and multifamily to workplace, parking, hospitality, retail and fleets. Today, one ChargePoint account provides access to hundreds-of-thousands of places to charge in North America and Europe. To date, more than 89 million charging sessions have been delivered, with drivers plugging into the ChargePoint network approximately every two seconds. For more information, visit the ChargePoint pressroom, the ChargePoint Investor Relations site, or contact ChargePoint’s North American or European press offices or the Investor Relations team.

Forward-Looking Statements

This press release contains forward-looking statements that involve risks, uncertainties, and assumptions including statements regarding our financial outlook for the first fiscal quarter of 2022 and fiscal 2022. There are a significant number of factors that could cause actual results to differ materially from the statements made in this press release, including: developments and changes in the general market, the continuing impact of COVID-19, political, economic, and business conditions; our limited operating history as a public company; our dependence on widespread acceptance and adoption of EVs and increased installation of charging stations; our current dependence on sales of charging stations for most of our revenues; overall demand for EV charging and the potential for reduced demand for EVs if governmental rebates, tax credits and other financial incentives are reduced, modified or eliminated or governmental mandates to increase the use of EVs or decrease the use of vehicles powered by fossil fuels, either directly or indirectly through mandated limits on carbon emissions, are reduced, modified or eliminated; supply chain interruptions; our ability to expand in Europe; the need to attract additional fleet operators as customers; potential adverse effects on our revenue and gross margins if customers increasingly claim clean energy credits and, as a result, they are no longer available to be claimed by us; the effects of competition; risks related to our dependence on our intellectual property and the risk that our technology could have undetected defects or errors. Additional risks and uncertainties that could affect our financial results are included under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Form 8-K filed with the Securities and Exchange Commission (the “SEC”) on March 1, 2021, which is available on our website at investors.chargepoint.com and on the SEC's website at www.sec.gov. Additional information will also be set forth in other filings that we make with the SEC from time to time. All forward-looking statements in this press release are based on information available to us as of the date hereof, and we do not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made, except as required by applicable law.

Use of Non-GAAP Financial Measures

ChargePoint has provided in this press release financial information that has not been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). The Company uses these non-GAAP financial measures internally in analyzing its financial results and believes that the use of these non-GAAP financial measures is useful to investors to evaluate ongoing operating results and trends, and in comparing the Company's financial results with other companies in its industry as well other technology companies, many of which present similar non-GAAP financial measures.

The presentation of these non-GAAP financial measures is not meant to be considered in isolation or as a substitute for comparable GAAP financial measures and should be read only in conjunction with the Company's consolidated financial statements prepared in accordance with GAAP. A reconciliation of the company's historical non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the financial statement tables included in this press release, and investors are encouraged to review these reconciliations.

Non-GAAP Gross Margin. ChargePoint defines non-GAAP gross margin as gross margin excluding amortization expense of acquired intangible assets, share-based compensation expense, and non-recurring costs associated with a restructuring.

Non-GAAP Net Loss. ChargePoint defines non-GAAP net loss as net loss, excluding amortization expense of acquired intangible assets, share-based compensation-expense and the associated share-based payroll tax expense, non-recurring costs associated with restructuring, acquisitions and litigation settlements, and non-cash charges related to the revaluation of warrants and other financial instruments. These amounts do not reflect the impact of any related tax effects.

Investors are cautioned that there are a number of limitations associated with the use of non-GAAP financial measures to analyze financial results and trends. In particular, many of the adjustments to ChargePoint’s GAAP financial measures reflect the exclusion of items that are recurring and will be reflected in its financial results for the foreseeable future, such as share-based compensation, which is an important part of ChargePoint’s employees' compensation and impacts hiring, retention and performance. Furthermore, these non-GAAP financial measures are not based on any standardized methodology prescribed by GAAP, and the components that ChargePoint excludes in its calculation of non-GAAP financial measures may differ from the components that other companies exclude when they report their non-GAAP results. ChargePoint compensates for these limitations by providing specific information regarding the GAAP amounts excluded from these non-GAAP financial measures. In the future, ChargePoint may also exclude other expenses it determines do not reflect the performance of the Company's operating results.

CHPT-IR

ChargePoint, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts; unaudited)

                                     
               

 Three Months Ended  

 

Twelve Months Ended   

               

 January 31,  

 

 January 31,  

               

2021

 

 2020

 

2021

 

 2020

Revenue                          
  Networked charging systems   $

28,303

 

  $

29,873

 

  $

91,893

 

  $

101,012

 

  Subscriptions    

10,965

 

   

7,865

 

   

40,563

 

   

28,930

 

  Other        

3,123

 

   

5,506

 

   

14,034

 

   

14,573

 

          Total revenue    

42,391

 

   

43,244

 

   

146,490

 

   

144,515

 

Cost of revenue                        
  Networked charging systems    

25,677

 

   

28,056

 

   

87,083

 

   

105,940

 

  Subscriptions    

5,838

 

   

4,725

 

   

20,385

 

   

16,244

 

  Other        

1,973

 

   

1,626

 

   

6,073

 

   

4,289

 

          Total cost of revenue    

33,488

 

   

34,407

 

   

113,541

 

   

126,473

 

Gross profit    

8,903

 

   

8,837

 

   

32,949

 

   

18,042

 

                                     
Operating expenses                        
  Research and development    

20,946

 

   

19,233

 

   

75,017

 

   

69,464

 

  Sales and marketing    

15,700

 

   

15,766

 

   

53,002

 

   

56,997

 

  General and administrative    

7,577

 

   

6,294

 

   

25,922

 

   

23,945

 

          Total operating expenses    

44,223

 

   

41,293

 

   

153,941

 

   

150,406

 

Loss from operations    

                    (35,320

)

   

                  (32,456

)

   

                 (120,992

)

   

             (132,364

)

Interest income    

17

 

   

508

 

   

                          315

 

   

                   3,245

 

Interest expense    

                         (810

)

   

                       (863

)

   

                     (3,253

)

   

                 (3,544

)

Change in fair value of redeemable convertible preferred stock warrant liability    

                    (54,824

)

   

                       (219

)

   

                   (73,125

)

   

                    (875

)

Other income (expense), net    

                          185

 

   

                       (655

)

   

                          229

 

   

                    (565

)

Net loss before income taxes     

                    (90,752

)

   

                  (33,685

)

   

                 (196,826

)

   

             (134,103

)

Provision for income taxes    

                             (5

)

   

126

 

   

                          198

 

   

                      224

 

Net loss      $

                    (90,747

)

  $

                  (33,811

)

  $

                 (197,024

)

  $

             (134,327

)

                                     
  Accretion of beneficial conversion feature of redeemable convertible preferred stock    

                       -

 

   

                      -

 

   

                   (60,377

)

   

                   -

 

  Cumulative undeclared dividends on redeemable convertible preferred stock    

                    (12,839

)

   

                      -

 

   

                   (16,799

)

   

                   -

 

Net loss attributable to common stockholders   $

                  (103,586

)

  $

                  (33,811

)

  $

                 (274,200

)

  $

             (134,327

)

Net loss per share attributable to                        
common stockholders, basic and diluted   $

                        (5.29

)

  $

                      (3.05

)

  $

                     (18.08

)

  $

                 (15.05

)

Weighted-average shares used in computing net loss per                        
share attributable to common stockholders, basic and diluted    

              19,563,550

 

   

             11,085,077

 

   

              15,168,335

 

   

            8,924,129

 

 

                       

    ChargePoint, Inc.

    CONDENSED CONSOLIDATED BALANCE SHEETS

    (In thousands, unaudited)

                       
                January 31,     January 31,
               

2021

   

2020

Assets                  
Current assets:            
  Cash and cash equivalents   $

145,491

 

  $

72,753

 

  Restricted cash    

400

 

   

400

 

  Short-term investments    

                                      -

 

   

47,037

 

  Accounts receivable, net    

35,075

 

   

38,488

 

  Inventories    

33,592

 

   

25,419

 

  Prepaid expenses and other current assets    

12,074

 

   

7,221

 

          Total current assets    

226,632

 

   

191,318

 

Property and equipment, net    

29,988

 

   

27,941

 

Operating lease right-of-use assets    

21,817

 

   

10,269

 

Goodwill        

                                1,215

 

   

                                1,215

 

Other assets      

                              10,468

 

   

                                3,448

 

          Total assets   $

290,120

 

  $

234,191

 

                       
Liabilities, Redeemable Convertible Preferred Stock, and Stockholders' Deficit            
Current liabilities:            
  Accounts payable   $

19,784

 

  $

19,631

 

  Accrued and other current liabilities    

47,162

 

   

37,659

 

  Deferred revenue    

40,934

 

   

39,408

 

  Debt, current    

10,208

 

   

                                      -

 

          Total current liabilities    

118,088

 

   

96,698

 

  Deferred revenue, noncurrent    

48,896

 

   

33,266

 

  Debt, noncurrent    

24,686

 

   

34,261

 

  Operating lease liabilities    

22,459

 

   

8,230

 

  Redeemable convertible preferred stock warrant liability    

75,843

 

   

2,718

 

  Other long-term liabilities    

972

 

   

798

 

          Total liabilities    

290,944

 

   

175,971

 

                       
Redeemable convertible preferred stock    

615,697

 

   

520,241

 

Stockholders' deficit:            
  Common stock    

2

 

   

1

 

  Additional paid-in capital    

62,736

 

   

20,331

 

  Accumulated other comprehensive income (loss)    

155

 

   

37

 

  Accumulated deficit    

                           (679,414

)

   

                           (482,390

)

      Total stockholders' deficit    

                           (616,521

)

   

                           (462,021

)

          Total liabilities, redeemable convertible preferred stock, and stockholders' deficit   $

290,120

 

  $

234,191

 

 

ChargePoint, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands, unaudited)

                       
             

  Year Ended January 31, 

             

2021

 

2020

                       
Cash flows from operating activities          
Net loss        

 $ 

(197,024

)

 

 $ 

(134,327

)

Adjustments to reconcile net loss to net cash           
 used in operating activities:          
  Depreciation and amortization  

10,083

 

   

7,698

 

  Non-cash operating lease cost  

3,762

 

   

3,121

 

  Stock-based compensation  

4,947

 

   

2,937

 

  Amortization of deferred contract acquisition costs  

1,206

 

   

675

 

  Change in fair value of redeemable convertible preferred stock warrant liability  

73,125

 

   

875

 

  Inventory reserves  

1,412

 

   

1,425

 

  Other        

446

 

   

589

 

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

3,292

 

   

(8,702

)

    Inventories    

(9,585

)

   

(1,472

)

    Prepaid expenses and other assets  

(8,914

)

   

(2,961

)

    Operating lease liabilities  

(2,815

)

   

(1,181

)

    Accounts payable  

(493

)

   

15,704

 

    Accrued and other liabilities  

11,556

 

   

93

 

    Deferred revenue  

17,156

 

   

27,590

 

          Net cash used in operating activities  

(91,846

)

   

(87,936

)

Cash flows from investing activities          
Purchases of property and equipment  

(11,484

)

   

(14,885

)

Purchases of investments  

-

 

   

(179,514

)

Maturities of investments  

47,014

 

   

132,500

 

          Net cash provided by (used in) investing activities  

35,530

 

   

(61,899

)

Cash flows from financing activities          
Proceeds from issuance of redeemable convertible preferred stock, net of issuance costs  

95,456

 

   

14,756

 

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

31,547

 

   

185

 

Payments made toward deferred offering costs  

(4,003

)

   

-

 

Proceeds from exercises of vested and unvested stock options  

5,913

 

   

2,217

 

          Net cash provided by financing activities  

128,913

 

   

17,158

 

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

141

 

   

132

 

  Net increase (decrease) in cash, cash equivalents, and restricted cash  

72,738

 

   

(132,545

)

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

73,153

 

   

205,698

 

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

 $ 

145,891

 

 

 $ 

73,153

 

ChargePoint, Inc.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In thousands, except per share amounts; unaudited)
                                         
   

Three Months Ended

 

Three Months Ended

 

Twelve Months Ended

 

Twelve Months Ended

   

 January 31, 2021

 

January 31, 2020

 

January 31, 2021

 

January 31, 2020

Reconciliation of GAAP gross profit (margin) to Non-GAAP gross profit (margin):                                        
GAAP gross profit   $

                         8,903

 

      $

                         8,837

 

      $

                       32,949

 

      $

                       18,042

 

   
Stock-based compensation expense    

                              22

 

       

                              10

 

       

                            115

 

       

                              39

 

   
Restructuring costs (1)    

                            214

 

       

                                 -

 

       

                            114

 

       

                                 -

 

   
Non-GAAP gross profit (margin)   $

9,139

 

 

22

%

  $

8,847

 

 

20

%

  $

33,178

 

 

23

%

  $

18,081

 

 

13

%

                                         
                                         
                                         
Reconciliation of GAAP Net Loss to Non-GAAP Net Loss:                                        
GAAP net loss   $

                     (90,747

)

      $

                     (33,811

)

      $

                   (197,024

)

      $

                   (134,327

)

   
Amortization of acquired intangible assets    

                               -

 

       

                            351

 

       

                               -

 

       

                            568

 

   
Stock-based compensation expense    

                         1,639

 

       

                            780

 

       

                         4,947

 

       

                         2,937

 

   
Restructuring costs (1)    

                            674

 

       

                                 -

 

       

                         1,149

 

       

                                 -

 

   
Change in fair value of preferred stock warrant liability    

                       54,824

 

       

                            219

 

       

                       73,125

 

       

                            875

 

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

(33,610

)

 

-79

%

  $

(32,461

)

 

-75

%

  $

(117,803

)

 

-80

%

  $

(129,947

)

 

-90

%

                                         
(1) Consists of restructuring costs for severances and related termination costs                                        

 

Press
Darryll Harrison
Senior Director, Global Communications and Social Media
669-237-3380
media@chargepoint.com

Investor Relations
Dan Oppenheim, Financial Profiles, Inc.
310-622-8235

Megan McGrath, Financial Profiles, Inc.
310-622-8248
investors@chargepoint.com

Source: ChargePoint Holdings, Inc.

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