ChargePoint Holdings, Inc.

ladies and gentlemen good afternoon my name is Abby and I'll be your conference operator for today's call at this time I would like to welcome everyone to the ChargePoint fourth quarter fiscal 2022 earnings conference call and webcast all participants 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 And I would now like to turn the call over to Patrick Hamer, ChargePoint's Vice President of Capital Markets and Investor Relations. Patrick, please go ahead.

Good afternoon, and thank you for joining us on today's conference call to discuss ChargePoint's fourth quarter and full fiscal year 2022. This call is being broadcast over the web. It can be accessed on the Investors section of our website at investors.chargepoint.com. With me on today's call are Pasquale Romano, our Chief Executive Officer, and Rex Jackson, our Chief Financial Officer. This afternoon, we issued our press release announcing results from fourth quarter and full fiscal 2022 and to January 31st, 2022, which can be found on our website. We'd like to remind you that during the conference call, management will be making forward-looking statements, including our fiscal first quarter and full fiscal year 2023 outlook and our expected investment and growth initiatives. These forward-looking statements involve risks and uncertainties, many of which are beyond our control and could cause actual results to differ materially from our expectations. These forward-looking statements apply as of today and we undertake no obligation to update these statements after the call. For a more detailed description of certain factors that could cause actual results to differ, Please refer to our form 10Q filed with the SEC on December 15th, 2021, and our earnings release posted today on our website and filed with the SEC on form 8K. Also, please note that we use certain non-GAAP financial measures on this call, which we reconcile to GAAP in our earnings release and for historical periods in the investor presentation posted on the investor's section of our website. And finally, we'll be posting the transcript of our call And with that, I'll turn it over to Pasquale.

Thank you, Pat, and thank you all for joining us today. In my remarks, I'll provide an overview of our execution against our Q4 plan and some highlights from the full year that just closed, an update on our technology and business infrastructure, and some commentary on how we see this year unfolding. And after that, I'll turn it over to Rex Jackson, our CFO, for a more detailed review of the quarter and the year that just closed and guidance for Q1 and the full year ahead. The mission at ChargePoint has never been more important, and our opportunity has never been greater. And this marks our first full year operating as a public company, and it was a remarkable year on many fronts. The investments we made over nearly 15 years set us up to capture the demand we are seeing today across commercial, fleet, and residential verticals in both North America and Europe. And these results further cement ChargePoint as the equivalent of an index for the electrification mobility. our strong performance and record revenue throughout the year was fueled by growth in charging demand from accelerated ev adoption ev volumes in north america and europe were up over 70 percent in 2021 conservatively in fact all our verticals commercial fleet and residential were strong we began the year with revenue guidance of 195 to 205 million and repeatedly raised guidance, ending the year with over $242 million in revenue, a number that could have been higher if it weren't for supply chain constraints. In the challenging supply chain environment of 2021, we chose to optimize for customer acquisition, leading us to prioritize assurance of supply rather than short-term gross margin preservation. And this had an impact of three percentage points of gross margin for the year and four percentage points for the quarter, Given that every commercial and fleet port we sell has attached recurring software subscription revenue and nearly every customer account represents a significant land and expand opportunity, this decision should have long-term positive implications for our revenue and our gross margin. Now let's talk about the product portfolio and infrastructure required to scale. We continue to invest heavily in our cloud-based software solution, and our software is designed to support the use cases wherever a driver needs a charge, and that includes residential, commercial, and fleet settings. Our software also covers linkages between those settings. I'll give you an example. Let's say a customer has primarily depot-based charging that occasionally also uses ChargePoint en route. That customer can manage those scenarios on a consolidated basis. And to give you some examples of the broad use case coverage our software facilitates, we support payment integration in a multitude of ways, energy management, charger deadline scheduling, and many other features we continue to develop and improve for our fleet and site host customers and ChargePoint drivers. We have additionally strengthened our broad software offering through two acquisitions last year. We made a portfolio announcement last year as well, and we are in deployment now with customers and are ramping production throughout this year. And I'll remind you that our architecture is highly modularized, so configurations of the exact same hardware are leveraged across commercial fleet and residential verticals. The entire hardware portfolio has been designed in conjunction with our cloud-based charger control system, enabling ChargePoint to address a very broad set of customer requirements with the minimum number of platforms. And the large number of integrations we continue to make with the tech and automotive ecosystems are becoming increasingly important as charging moves into the mainstream. Last year, we added to the list of in-vehicle and in-app integrations with partners Android Auto, Mercedes, Polestar, and Volvo. The investments we made long ago in establishing a strong distribution channel are paying dividends. Now some highlights from the quarter and the full year that indicate the scale we are delivering. Our Q4 revenue of $81 million marks a record quarter and above the high end of the guidance range we provided on December 7th. We finished the quarter with over 174,000 network ports under management, an increase of 64% year over year. Within that, the European port count was approximately 51,000 and the global DC fast charge port count was approximately 11,500. And we're also approaching 300,000 roaming ports accessible to drivers using their ChargePoint account. So if you combine that with 174,000 ports that are directly on our network, our drivers have access to almost 475,000 ports globally. The momentum in our commercial business, which includes everything from retail parking, fueling and convenience, et cetera, indicates that businesses of all types are preparing for the electric future. ChargePoint is proud to have over 50% of the Fortune 500 as its customers. And last year, we achieved over 89% year-on-year growth in our commercial business on a billing basis. In 2021, ChargePoint continued to lead across Europe with strategic acquisitions, commercial partnerships, significant roaming progress, an expanded talent base, and industry recognition. We made meaningful advances in Europe and our market share accelerated with the successful acquisition of Hasteby. It was also a banner year on the fleet front. Fleets are electrifying and turning the charge point for charging solutions as evidenced by the year-on-year billings increase of 132%. In addition to introducing industry's most comprehensive global electric fleet charging portfolio, We rounded out the portfolio with the successful acquisition of Uricity, landed signature account wins in last mile delivery and transit. We expanded our partnership portfolio to include Element, Gaddix, Lease Plan USA, WEX, and Wheels Diamond. These partnerships span fleet management, financial technology services, and leasing providers and represent an opportunity to provide charging solutions for well over 15 million vehicles as they electrify. Now turning to residential, billings were up 40%, 44% year on year. Years ago, we calculated that being in all verticals of charging would be a strategic advantage, and our strategy has long included enable charging where people spend time. Our three verticals came together in residential in a significant way in 2021. having a residential solution that can be integrated with our commercial and fleet verticals continues to be an advantage, and here are some examples. First, businesses that operate take-home fleets and companies who offer vehicles and fueling as an employee benefit are increasingly turning the charge point to handle charging and the associated reimbursements. Second, as many continue to work from home, be that an apartment, condo, single family home, et cetera, we saw corresponding demand from property owners and homeowners. Third, we continue to partner with a growing number of residential charging programs with utilities throughout North America as they seek expert help to plan for residential fueling demand today and for years to come. And we're also being recognized for our innovation with strong consumer ratings and continued recognition from leading publications. The scale of our network is generating positive environmental impacts with over 3.6 billion electric miles driven today. By our estimates, drivers have avoided over 145 million gallons of gasoline and over 608 metric tons of greenhouse gas emissions. Now turning to fiscal 2023, we see a steeper revenue trajectory than previously forecast that we expect will continue for the foreseeable future. And I'll remind you that the transition from fossil fuels to electric fives will span multiple decades. For ChargePoint, we are forecasting a growth rate acceleration from 65% last year to 96% this year. As I mentioned consistently, we continue to optimize for insurance of supply in this land that expand model that has recurring revenue attached to every hardware port sold. So any resulting margin impact last year or this year is not indicative of the long-term margin profile of the company. We expect increasing operating leverage this year and in the future and continue to expect that we will cross through cash flow break even in calendar 2024. I would like to thank our customers, partners, and employees for an exceptional year and their commitment to electric mobility. Our mission requires world-class talent and I'm pleased that ChargePoint continues to be a destination for top professionals. We doubled our talent pool in the year. We ended the quarter with over 650 employees dedicated to R&D and technology-related functions. Our board additions included Susan Hasty, former Verizon telematics leader, and Elaine Chao, former Secretary of Transportation. These ads further round out the board, which includes leaders from technology, energy, auto, and the investment community. In the U.S., the Infrastructure Investment and Jobs Act represents a tremendous opportunity for up to $7.5 billion to accelerate the build-out of charging along highways and in our communities. As we expected and have commented on previously, this new stimulus should substantively manifest in calendar year 2023, rolling for five years. In addition, there are other state and utility programs being formed and in place today, all of which indicate broad commitment to the electric future. In closing, our ability to achieve 65% revenue growth in fiscal 2022 illustrates the power of our strategy, business model, and operating capability. These capabilities give me tremendous confidence that we will continue to scale the business with the EV market growth forecasted to continue for the decades to come. We are delivering on our plan, exceeding revenue goals, and executing across all our verticals in North America and Europe. Now, I'll turn this over to our CFO, Rex Jackson, to discuss financials before we move to Q&A. Rex, over to you.