Second quarter fiscal 2023 revenue of $108 million exceeds top-end of quarterly guidance; ChargePoint re-affirms annual guidance

Revenue grew 93% year-over-year as the Company posted its first $100 million quarter

GAAP and Non-GAAP gross margin improved 2 percentage points quarter-over-quarter

ChargePoint guides to third quarter fiscal 2023 revenue of $125-$135 million and confirms full-year revenue guidance of $450 million to $500 million

CAMPBELL, Calif., August 30, 2022--(BUSINESS WIRE)--ChargePoint Holdings, Inc. (NYSE:CHPT) ("ChargePoint"), a leading electric vehicle (EV) charging network, today reported results for its second quarter of fiscal 2023 ended July 31, 2022.

"ChargePoint delivered another strong quarter, with continued growth across all verticals and geographies," said Pasquale Romano, President and CEO of ChargePoint. "We continue to execute on our strategy, as demand continues to grow for our portfolio of industry-leading charging solutions for every vertical and in both North America and Europe."

Second Quarter Fiscal 2023 Financial Overview

Revenue. For the second quarter, revenue was $108.3 million, up 93% from $56.1 million in the prior year’s same quarter. Networked charging systems revenue for the second quarter was $84.1 million, up 106% from $40.9 million in the prior year’s same quarter and subscription revenue was $20.2 million, up 68% from $12.1 million in the prior year’s same quarter.

Gross Margin. Second quarter GAAP gross margin was 17%, down from 19% in the prior year's same quarter primarily due to supply chain disruptions, which affected both cost and supply availability as well as increasing new product introduction and transition costs. Second quarter non-GAAP gross margin, which primarily excludes stock-based compensation expense and amortization from acquired intangible assets, improved sequentially to 19%, but was down from 23% in the prior year's same quarter due to the same factors.

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Net Income/Loss. Second quarter GAAP net loss was $92.7 million, as compared to $84.9 million in the prior year's same quarter. Non-GAAP pre-tax net loss in the second quarter, which excludes $26.4 million in stock-based compensation expense, $3.0 million amortization expense from acquired intangible assets and other items, was $62.3 million as compared to $40.3 million in the prior year's same quarter.

Liquidity. As of July 31, 2022, cash and short term investments on the balance sheet were $471.9 million.

Shares Outstanding. As of July 31, 2022, there were approximately 339 million shares of common stock outstanding.

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

Third Quarter and Full Year Guidance

For the third fiscal quarter ending October 31, 2022, ChargePoint expects revenue of $125 million to $135 million. At the midpoint, this represents an anticipated increase of 100% as compared to the prior year’s same quarter.

For the full fiscal year ending January 31, 2023, ChargePoint continues to expect:

Revenue of $450 million to $500 million. At the midpoint, this represents an anticipated increase of 96% as compared to the prior year

Non-GAAP gross margin of 22% to 26%

Non-GAAP operating expenses of $350 million to $370 million. At the midpoint, this represents an anticipated increase of 50% as compared to the prior year

Guidance for non-GAAP financial measures excludes amortization expense of acquired intangible assets, stock-based compensation expense, acquisition earn-out-related payroll tax expense, and non-recurring costs and professional services fees related to acquisitions and security offerings. ChargePoint is not able to present a reconciliation of its non-GAAP financial guidance to the corresponding GAAP measures because certain items that impact these measures are uncertain or out of its control, or cannot be reasonably predicted, including stock-based compensation expense, without unreasonable effort. The actual amounts of such reconciling items will have a significant impact on ChargePoint's GAAP gross margin and GAAP operating expenses.

Conference Call Information

ChargePoint will host a webcast today at 1:30 p.m. Pacific / 4:30 p.m. Eastern to review its second quarter fiscal 2023 financial results and its outlook for the third quarter of and full year fiscal 2023.

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 a new fueling network to move people and goods on electricity. Since 2007, ChargePoint has been committed to making it easy for businesses and drivers to go electric with one of the largest EV charging networks and a comprehensive portfolio of charging solutions. The ChargePoint cloud subscription platform and software-defined charging hardware are designed to include options for every charging scenario from home and multifamily to workplace, parking, hospitality, retail and transport fleets of all types. Today, one ChargePoint account provides access to hundreds-of-thousands of places to charge in North America and Europe. To date, more than 123 million charging sessions have been delivered, with drivers plugging into the ChargePoint network on average every second. For more information, visit the ChargePoint pressroom, the ChargePoint Investor Relations site, or contact the ChargePoint North American or European press offices or Investor Relations.

Forward-Looking Statements

This press release contains forward-looking statements that involve risks, uncertainties, and assumptions including statements regarding our financial outlook for the third fiscal quarter and fiscal year ending January 31, 2023. There are a significant number of factors that could cause actual results to differ materially from the statements made in this press release, including: the impact of the ongoing COVID-19 pandemic, geopolitical events including the Russian invasion of Ukraine, macroeconomic trends including changes in inflation or interest rates, or other events beyond our control on the overall economy, our business and those of our customers and suppliers, including due to supply chain disruptions, component shortages and expense increases; our limited operating history as a public company; our ability as an organization to successfully acquire and integrate other companies, products or technologies in a successful manner; our dependence on widespread acceptance and adoption of EVs and increased 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, delays and expense increases may adversely affect our sales, revenue and gross margins; unexpected delays in new product introductions; our ability to expand our operations and market share in Europe; the need to attract additional fleet operators as customers; potential adverse effects on our revenue and gross margins due to supply chain disruptions, component shortages and related expense increases or if customers increasingly claim clean energy credits and, as a result, they are no longer available to be claimed by us; the effects of competition; risks related to our dependence on our intellectual property; and the risk that our technology could have undetected defects or errors. Additional risks and uncertainties that could affect our financial results are included under the captions "Risk Factors" and "Management’s Discussion and Analysis of Financial Condition and Results of Operations" in our Form 10-Q filed with the Securities and Exchange Commission (the "SEC") on June 7, 2022, 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"). ChargePoint 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 ChargePoint’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 ChargePoint’s consolidated financial statements prepared in accordance with GAAP. A reconciliation of ChargePoint’s historical non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the financial statement tables included in this press release, and investors are encouraged to review these reconciliations.

Non-GAAP Gross Profit (Gross Margin). ChargePoint defines non-GAAP gross profit as gross profit excluding amortization expense of acquired intangible assets and stock-based compensation expense. Non-GAAP gross margin is non-GAAP gross profit as a percentage of revenue.

Non-GAAP Cost of Revenue and Operating Expenses (includes Non-GAAP research and development, Non-GAAP sales and marketing and Non-GAAP general and administrative). ChargePoint defines Non-GAAP cost of revenue and operating expenses as cost of revenue and operating expenses excluding amortization expense of acquired intangible assets, stock-based compensation expense, earn-out-related payroll tax expense, and non-recurring costs and professional services fees associated with acquisitions and registration filings, and non-cash charges related to tax liabilities.

Non-GAAP Net Loss. ChargePoint defines non-GAAP net loss as net income (loss) excluding amortization expense of acquired intangible assets, stock-based compensation expense and the associated stock-based payroll tax expense, earn-out-related payroll tax expense, offering costs allocated to warrant liabilities, non-recurring costs and professional services fees associated with acquisitions and registration filings, and non-cash charges related to the revaluation of warrants, tax liabilities, earn-out liabilities, and other financial instruments. These amounts do not reflect the impact of any related tax effects. Non-GAAP pre-tax net loss is non-GAAP net loss adjusted for provision for income taxes.

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

CHPT-IR

ChargePoint Holdings, Inc. PRELIMINARY CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts; unaudited) Three Months Ended

July 31, Six Months Ended

July 31, 2022 2021 2022 2021 Revenue Networked charging systems $ 84,148 $ 40,874 $ 143,699 $ 67,674 Subscriptions 20,244 12,082 37,890 22,906 Other 3,900 3,165 8,336 6,051 Total revenue 108,292 56,121 189,925 96,631 Cost of revenue Networked charging systems 74,352 35,384 130,618 59,126 Subscriptions 13,278 7,830 23,905 13,470 Other 2,509 2,130 5,142 4,041 Total cost of revenue 90,139 45,344 159,665 76,637 Gross profit 18,153 10,777 30,260 19,994 Operating expenses Research and development 51,804 40,410 100,105 65,784 Sales and marketing 33,873 21,923 66,460 37,897 General and administrative 22,846 22,732 43,893 37,199 Total operating expenses 108,523 85,065 210,458 140,880 Loss from operations (90,370 ) (74,288 ) (180,198 ) (120,886 ) Interest income 1,460 25 1,566 47 Interest expense (2,928 ) — (3,862 ) (1,499 ) Change in fair value of redeemable convertible preferred stock warrant liability — — — 9,237 Change in fair value of assumed common stock warrant liabilities — (10,421 ) (24 ) 33,340 Change in fair value of contingent earnout liability — — — 84,420 Transaction costs expensed — — — (7,031 ) Other expense, net (1,254 ) (189 ) (1,702 ) (174 ) Net loss before income taxes (93,092 ) (84,873 ) (184,220 ) (2,546 ) Provision for income taxes (392 ) 65 (2,254 ) 103 Net loss $ (92,700 ) $ (84,938 ) $ (181,966 ) $ (2,649 ) Cumulative undeclared dividends on redeemable convertible preferred stock — — — (4,292 ) Deemed dividends attributable to vested option holders — — — (51,855 ) Deemed dividends attributable to common stock warrants holders — — — (110,635 ) Net loss attributable to common stockholders, basic $ (92,700 ) $ (84,938 ) $ (181,966 ) $ (169,431 ) Gain attributable to earnout shares issued — — — (84,420 ) Change in fair value of dilutive warrants — (7,427 ) — (53,540 ) Net loss attributable to common stockholders, diluted $ (92,700 ) $ (92,365 ) $ (181,966 ) $ (307,391 ) Net loss per share - Basic $ (0.28 ) $ (0.27 ) $ (0.54 ) $ (0.64 ) Net loss per share - Diluted $ (0.28 ) $ (0.29 ) $ (0.54 ) $ (1.12 ) Weighted average shares outstanding - Basic 336,813,555 312,227,526 335,736,772 266,197,482 Weighted average shares outstanding - Diluted 336,813,555 313,602,100 335,736,772 275,577,000

ChargePoint Holdings, Inc. PRELIMINARY CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, unaudited) July 31, 2022 January 31, 2022 Assets Current assets: Cash and cash equivalents $ 187,662 $ 315,235 Restricted cash 400 400 Short-term investments 283,880 — Accounts receivable, net 109,922 75,939 Inventories 53,420 35,879 Prepaid expenses and other current assets 44,902 36,603 Total current assets 680,186 464,056 Property and equipment, net 36,699 34,593 Intangible assets, net 94,482 107,209 Operating lease right-of-use assets 22,571 25,535 Goodwill 205,580 218,484 Other assets 6,512 6,020 Total assets $ 1,046,030 $ 855,897 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 45,145 $ 27,576 Accrued and other current liabilities 110,096 84,328 Deferred revenue 83,529 77,142 Total current liabilities 238,770 189,046 Deferred revenue, noncurrent 84,052 69,666 Debt, noncurrent 294,334 — Operating lease liabilities 22,727 25,370 Deferred tax liabilities 13,383 17,697 Other long-term liabilities 1,075 7,104 Total liabilities 654,341 308,883 Stockholders' equity (deficit): Common stock 34 33 Additional paid-in capital 1,414,301 1,366,855 Accumulated other comprehensive loss (29,025 ) (8,219 ) Accumulated deficit (993,621 ) (811,655 ) Total stockholders' equity 391,689 547,014 Total liabilities and stockholders' equity $ 1,046,030 $ 855,897