ChargePoint Holdings, Inc.

Good morning. My name is Abby and I will be your conference operator today. At this time, I would like to welcome everyone to the ChargePoint fourth quarter and full year 2021 Earnings Conference call-in webcast. All participant lines have been placed in listen-only mode to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you'd like to ask a question at that time, please press star followed by one on your telephone keypad. If you need operator assistance, please press star followed by zero. Thank you. I will now turn the call over to Rebecca Chavez, General Counsel. Rebecca, please go ahead.

Good afternoon, and thank you for joining us on today's conference call to discuss ChargePoint Holding Inc.' 's fourth quarter and fiscal 2021 financial results. I'm Rebecca Chavez, the company's General Counsel. This call is being broadcast over the web and can be accessed on the Investors section of our website. at investors.chargepoint.com. With me on today's call are Pascal Romano, our President and Chief Executive Officer, and Rex Jackson, our Chief Financial Officer. This afternoon, we issued our press release announcing results for the fourth quarter fiscal year ended January 31, 2021, which can be found on our website. We would like to remind you that during this conference call, financial will be making four looking statements, including statements regarding our expectations related to financial guidance for the first fiscal quarter and fiscal year 2022, outlook for the sector and company, and our expected investment and growth initiative. These forward-looking statements involve a number of risks and uncertainties, some of which are beyond our control, which would cause actual results to differ materially from those anticipated by these statements. These forward-looking statements apply as of today. We should not rely on them as representing our views in the future, and we undertake no obligation to update these statements after the call. For more detailed description of factors that could cause actual results to differ, please refer to our Form 8-K filed with the SEC on March 1st, 2021, and our earnings release posted a few minutes ago on our website and filed with the SEC on Form 8-K. Also, please note that certain financial measures we use on this call are expressed on a non-GAAP basis and have been adjusted to exclude certain charges. For historical periods, we provide reconciliations of these non-GAAP financial measures to GAAP financial measures and the supplemental financial information that can be found on the Investors section of our website located at investors.chargepoint.com. And finally, once we've completed our formal remarks, we'll be posting them to our Investor Relations website under the Quarterly Results section. And with that, I'll turn the call over to Pasquale.

Hi, everyone. Thanks for joining and welcome to our first Renews call. As a public company, we are very happy to be here. As a category creator, ChargePoint sees electric mobility having come into its own. We're operating across nearly all segments of EV charging, including commercial, fleet, and residential. We believe we are well-positioned to take advantage of the growth in the market. We're very happy to have begun trading on March 1st on the New York Stock Exchange. We've raised $480 million in net proceeds as a result and have $650 million in cash on our balance sheet to fund growth. I will point out that that is more cash than we have net spent in our 13-year history to get to this point. I'll cover achievements for the year, then I'll talk about the outlook for the sector and the company, and I'll hand it to our CFO, Rex Jackson, who will review our fourth quarter and year-end financial results. Then I'll share some closing comments, and we'll open it up to your questions. Our story began 13 years ago with the vision that all people and goods could move around the planet on electricity, which is a pervasively distributed resource. When we set out to create the new fueling network, we understood we had to be everywhere drivers parked, at home, around town, around the road. Beyond that, the world tends towards fleet over time, ride-hailing services, goods delivery, new kinds of work, et cetera. We created one single complete product portfolio of solutions for nearly every segment of EV charging, commercial, fleet, and residential. Today, we are both a pioneer and an established leader in EV charging with proven technology, top-tier customers, and more importantly, our business model is capital light. We have 71% market share of network level 2 charging in North America and thousands of commercial customers, including many of the Fortune 50. Turning to the market, every major automaker is committed to electrification. It's the biggest race since the invention of the automobile. Bloomberg New Energy Finance projects that by 2030, 29% of new vehicles sold in the US and Europe will be electric. And that should be supported by $60 billion in charging infrastructure investment, and that's where we fit in. And the bigger point here is that demand for our charging solutions is driven by the collection of EV models. No need to pick the next EV winner because ChargePoint is an index for the electrification of mobility. In a new market, it's common to have a variety of business models with notable differences grouped into the same category. It's important to establish first why our customers provide charging services in their parking lots. For employers and businesses serving consumers, it's an inexpensive way to provide a benefit and align with sustainability initiatives. For fleets, it's all about improving their economics. We sell annual high-margin SAS subscriptions to the ChargePoint network, charging stations, parts and labor warranty subscriptions, and design-built services. We offer an all-recurring revenue model as an option where the charging station is bundled into the annual SAS subscription. In the case of fleets, all of that applies, and we sell additional software for charging, scheduling, and energy cost optimization. In both fleet and commercial, we have comprehensive service and support offerings, and we sell annual subscriptions to our cloud service regardless of the utilization of the stations or energy flowing through them. We don't own the majority of our stations. We don't monetize energy. We only monetize the driver in the case of home charging. Therefore, our model is inherently capital light. And because we are in nearly every segment of charging on two continents, there is substantial OPEX leverage because much of the technology is common to serve all those markets and geos. The quality of our products and services generates higher driver satisfaction that attracts new customers and repeat engagements, further driving greater brand awareness and market penetration. There is a significant recurring component in our business, which is not only the subscription revenue, but the incremental electrification of parking spaces within a customer proportional to the incremental EV penetration in their parking lots. This business model is tested, and we are operating currently at scale. We're an established company with the right model, and we are very well capitalized. Turning to 2020, it was a remarkable year on many fronts, and I would like to acknowledge the resilience and dedication of our customers, partners, and employees. Because ChargePoint's business scales with vehicle adoption, I'll start by noting the Bloomberg New Energy Finance data on total global passenger cars. While sales were down 16% in 2020 for overall automobile sales, EV sales were up 48%, indicating the long-term shift to electric is happening, even during a health and economic crisis. Despite COVID, demand for chargepoint solutions was strong across segments. We've long operated on the premise that being in all segments helps insulate our revenue from behavioral changes in fueling. Notable shifts in driving patterns really proved the benefits of serving a range of segments. Demand shifted as there was less commuting and fewer road trips for fun. Delivery of goods became more critical than ever, which benefited fleets and accelerated their interest in achieving better cost efficiencies through electrification. And we observed significant investment in new construction, continued interest from utilities in providing incentives and programs to facilitate the build-out of infrastructure, We saw increases in residential demand as more consumers looked for the convenience of home charging. Some highlights from our business. We have one of the world's largest EV charging networks. At the end of 2020, we had more than 105,000 active public and private charging spots on our network, with access to an additional 157,000 active public places to charge through roaming integrations with other major EV charging networks across North America and Europe. In addition, we continue to aggressively expand our network and customer reach, activating more than 24,000 new charging spots and an additional 100,000 places to charge through roaming integrations. More than half a billion electric miles were driven in 2020 using our charging solutions, avoiding 129 million kilograms of greenhouse gas emissions. Our fleet business, which includes delivery and logistics, sales, service, and motor pool, and shared mobility segments, saw significant growth in demand. In 2020, we saw businesses from a range of fleet types, including 11 municipal fleets, five Fortune 500 sales and service fleets, 12 utility fleets, five transit organizations, and a Fortune 100 retail furniture company. Europe is important to our growth strategy, and we made notable progress last year. In addition to the port growth, we are in 16 countries and providing around-the-clock support in nine languages. We continue to expand our partnership with a leading full-service leasing and fleet management company, providing lease DV solutions for employers. We are starting to see referral business coming from that partnership. With fellow industry participants, we became a founding member of ChargeUp Europe, the European trade association for the EV charging industry, creating the building blocks for an open, competitive, and harmonized market for EV charging infrastructure. And turning to single-family homes, buoyed by a strong consumer rating, industry recognition, and increased interest from utilities wanting to enable residential charging programs, our ChargePoint home flex business saw strong demand. In addition, we are seeing the beginnings of fleet customers who operate take-home fleets expressing interest in our managed home charging solutions. Drivers continue to rely on ChargePoint, whether that is our top-rated mobile app, our integrations into Google Maps, Apple Maps, Google Wear OS, Apple Watch OS, Apple Pay, Google Pay, PayPal, and many more popular consumer platforms. Joining the growing list of software integrations, we've made notable progress on automotive experiences, including integrations with Apple CarPlay and Android Auto, as well as native OEM experiences such as in-car apps in Volvo Recharge models and Polestar, and dynamic integration into the MyChevrolet app. Turning to 2021. The shift in electric drive is accelerating, and we're excited about the year ahead. The lineup of EVs includes 20 new models across passenger car and fleet segments. I'll remind you that our growth scales with EV adoption, and according to Bloomberg New Energy Finance estimates, for global EV sales increased 48% last year, and they expect EVs to make up 3.8% of new passenger car sales globally in 2021, with approximately 5% in Europe and 2% in the United States. On the commercial side, we're well established in commercial charging in North America. Our commercial business is in scale mode. We're established in nearly all segments and can support high growth rates. We had our best fleet quarter ever in Q4 from a billings perspective, and the RFP activity is up 61% quarter over quarter, and these facts reinforce our confidence about this segment. The category has historically been vehicle limited, and we are ready when that unlocks. On the residential side, the overwhelming demand by consumers for large battery BEVs is catalyzing interest in connected home chargers, and our ChargePoint Home Flex is ready to meet that need. In North America and Europe, national, state, and city governments are accelerating implementation of electrification policies, including mandates or commitments to electrify buses, trucks, and fleets. We have positive early indication that President Biden is committed to transportation electrification, from signing the Paris Climate Agreement on the first day of his administration to announcing a commitment to electrify federal fleets This is in addition to the momentum at the state level. This commitment to electrification is also echoed in the roadmap for a renewed US-Canada partnership announced earlier this month. With established policy teams in place, we believe we are well positioned to engage with government agencies to inform public investment, including grants, tenders, and rebate programs, and enable our customers to take advantage of these opportunities. Utilities across North America are rolling out incentive programs that provide customers with a rebate towards the purchase of a charger or cover a portion of the cost to make a site ready to install charging infrastructure. We have honed over many years the teams and processes to leverage these programs. 2021, we expect to see more utilities propose new programs and extensions of their current programs and expand in the fleet. We estimate that the multi-year utility program dollars will expand to $830 million available over multiple years. We also expect utilities to address the operational costs for charging by establishing new electricity rates designed specifically for EV fuel that leverage managed charging. We have more money on our balance sheet then we have net spent to reach this point from 2007 to today. We have a long history of being good stewards of capital, and I'll remind you the use of proceeds for the recent transaction are to continue to scale in Europe, continue our investment in fleet, and keep some powder dry in case an opportunity presents itself for selective M&A. Now over to Rex on the financials.