ChargePoint Holdings, Inc.

Ladies and gentlemen, good afternoon. My name is Emma, and I will be your conference operator for today's call. At this time, I would like to welcome everyone to the ChargePoint second quarter fiscal 2023 earnings conference call and webcast. All participant lines have been placed in a listen-only mode to prevent any background noise. After the speaker's remarks, there will be a question and answer session. 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 second quarter fiscal 2023 results. This call is being broadcast and can be accessed on the investor 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 a press release announcing results for the quarter, which can be found on our website. We'd like to remind you that during the conference call of management, we make forward-looking statements, including our fiscal third quarter and full fiscal year 2023 outlook. 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 our call. For more detailed description of certain factors that could cause actual results to differ, please refer to our Form 10-Q filed with the SEC on June 7, 2022, and our earnings release posted today on our website filed with the SEC on Form 8-K. Also, please note that we use certain non-GAAP financial measures on this call, which we reconcile the gap in our earnings release for historical periods in the investor presentation posted on the investor section of our website. And finally, we'll be posting the transcript of this call to our investor relations website under the quarterly results section. And with that, I'll turn it over to Pasquale.

Thank you, Patrick. And thank you all for joining. I am pleased to report another strong execution quarter as we posted Q2 revenue of $108 million above the high end of the guidance provided on our Q1 call. Notably, Q2 is our first $100 million quarter, another major milestone in the company's 15-year history. And according to Bloomberg NEF, combustion vehicle sales peaked in 2017. And as we've said before and proven in historic attach rates, our growth closely tracks the arrival rate of vehicles. As consumers embrace the transition to EVs at an accelerating rate, the future of this business is incredibly strong. Year-over-year revenue growth of 93% and sequential revenue growth of 33% continue to demonstrate the company's strength across verticals and geographies. We've improved gross margin from Q1 and realized the operating leverage as forecasted. The category continues to be affected by supply chain dislocation. As we covered in recent earnings calls, we continue to prioritize assurance of supply to support our land and expand strategy and strong upward growth trajectory. This means higher purchase price variances on source components and excess logistics costs. Despite the headwinds, our operations team worked tirelessly to deliver 19% non-GAAP gross margin in the second quarter, up two percentage points sequentially, while achieving impressive growth. Net, we are quite pleased with our performance in Q2, and Rex will provide more color on that in our outlook for the rest of the year. Our installed base of network ports grew to approximately 200,000, a year-over-year increase of 70% and sequential increase of 7%. Of those, over 60,000 are in Europe and over 15,000 are DC fast. And I'll remind you that ports under management is one way to track our progress in our commercial and fleet verticals. as each of these ports generates an annual software subscription. As a reminder, we do not include home chargers for single-family residences in this count, where we also continue to see strong demand. Complementing this, our roaming reach is now over 355,000 ports in North America and Europe. New customers in the quarter contributed approximately one-third of our Q2 billings and we now count 80% of the 2021 Fortune 50 as customers and 53% of the 2021 Fortune 500 as customers. On our first quarter call, we discussed ramping manufacturing of new fleet and commercial AC and DC charging platforms. Customers are telling us that our solutions are meaningfully differentiated and comprehensive. Additionally, our customers rely on us for everything from upfront consultation and planning through build out and ultimately continued optimization of the infrastructure. Turning now to verticals. Commercial, which lagged from a rate of growth perspective during the pandemic, accelerated in the quarter with a global business of 83% year-over-year and 45% sequentially. Regarding our partnership with Volvo and Starbucks, the first site went live in the quarter, an important step in reinventing the road trip. The commercial vertical in Europe was particularly strong with billings up over 300% year over year and 24% sequentially. Fleet continues its growth with strong demand for management software combined with our AC and DC charging solutions that balance charging costs with operational readiness for light to heavy duty vehicles across depot, on route, and take home charging. In Q2, fleet billings grew 135% year over year. and 23% sequentially following a strong first quarter. The vertical continues to be vehicle limited. Residential demand remains remarkably strong. Billings for residential were up over 125% from the second quarter of last year and a sequential increase of 11% versus the first quarter. The growth would have been significantly higher if not for supply chain constraints. In turning to policy, our business model sets us up well to operationalize the U.S. National Electric Vehicle Infrastructure Program. Additionally, the Inflation Reduction Act was signed shortly after the close of the quarter, which includes stimulus for both vehicles and infrastructure across passenger and fleet categories. Our policy team remains engaged with federal and state agencies to help shape programs to ensure a healthy and self-sufficient charging industry. As discussed previously, we do not include these federal programs in our guidance or long-term views of turning cash flow positive. We have long said that what is good for business can be good for the planet too. Our network is fueled over 4.4 billion electric miles to date. We estimate these drivers have avoided over 178 million cumulative gallons of gasoline and over 800,000 metric tons of greenhouse gas emissions. Now I'll turn this over to Rex to discuss financials before we move to Q&A. Rex, over to you.