ChargePoint Reports Fourth Quarter and Fiscal 2021 Financial Results

March 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

CAMPBELL, Calif.–(BUSINESS WIRE)–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