ChargePoint Holdings, Inc.

Ladies and gentlemen, good afternoon. My name is Pam 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 2025 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'll be a question and answer session. I would now like to turn the call over to Nandan Amladi, ChargePoint's Vice President of Finance and Investor Relations. Nandan, please go ahead.

Good afternoon and thank you for joining us on today's conference call to discuss ChargePoint's fourth quarter fiscal 2025 earnings results. This call is being webcast and can be accessed on the investor relations sections of our website at investors.chargepoint.com. With me on today's call are Rick Wilmer, our Chief Executive Officer, and Mansik Hetani, our Chief Financial Officer. This afternoon, we issued our press release announcing results for the quarter ended January 31, 2025, 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 outlook for the first quarter of fiscal 2026. 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 10-Q, filed with the SEC on December 6, 2024, and our earnings release posted today on our website and 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 to GAAP in our earnings release and for certain historical periods in the investor presentation posted on the investor section of our website. And finally, we'll be posting a transcript of this call to our investor relations website under the quarterly results section. And with that, let me turn the call over to Rick.

Thank you for joining ChargePoint's fourth quarter fiscal 2025 earnings call. Today I will walk through key financial results for the quarter, our recent business highlights, and discuss the anticipated shifts in the U.S. policy as they pertain to ChargePoint. We continue to execute on our mission for operational excellence in the fourth quarter and are pleased with the results. We delivered significant sequential improvement in adjusted EBITDA as well as cash usage. Revenue was $102 million above the midpoint of our guidance range. Subscription revenue increased 14% year-on-year to $38 million in Q4. Our gross margin increased to 30% on a non-GAAP basis. Q4 non-GAAP OpEx was $52 million, which is down 42% from our high point of $89 million in Q2 of fiscal year 2024. Cash consumption reduced significantly compared to last quarter and our ending cash balance was up by $5 million from the end of Q3. We have rationalized our cost structure and we will continue to operate efficiently. These improvements demonstrate significant progress toward our goal of achieving positive non-GAAP adjusted EBITDA for a quarter in fiscal 2026. We finished the year with 342,000 charging ports managed by our software, of which 120,000 are in Europe and more than 33,000 are DC fast chargers. These ports drive our subscription revenue. To demonstrate our scale, between managed and roaming ports, we provide charge point drivers with access to more than 1.2 million charging ports worldwide. EV adoption continues despite recent narratives to the contrary. According to the research firm RoMotion, 2024 was a record year for global EV sales volume, with North America up 9%. The firm's January 2025 data reported North American sales up 22% year over year, and Europe, including the UK, up 21%. EV sales are a natural leading indicator for our industry. As more EVs hit the road, the more chargers are needed to fuel them. Dozens of new EV models are expected to arrive this year, further expanding selection for consumers. These EVs boast features which were previously unavailable, and they are coming to market at price points closer to those of internal combustion vehicles. We believe free market forces will drive organic EV adoption in the absence of subsidies. Global automotive manufacturers, most recently Kia on February 27th, have reconfirmed their commitment to EVs, whether they continue to invest in internal combustion or not. Many institutions across industries such as retail, hospitality, and logistics are fully committed to reducing their carbon footprint. EVs remain a major part of their plans to do so. EV charging will remain the essential enabler of the transition to e-mobility. Charging sessions on the ChargePoint network continue to grow sequentially, with approximately 27 million sessions delivered in the fourth quarter. In our 17-year history, the ChargePoint network has delivered more than 322 million sessions, of which almost 30% took place during the last fiscal year. As I have said previously, We believe this demonstrates how existing EV charging infrastructure is under pressure. Additional charging capacity is moving from a want to a need. We are still seeing institutions procure charging as a marketing tactic to attract customers, a loyalty tactic to retain them, or both. Charging infrastructure has lagged behind EV adoption and it needs to catch up. We continue to make progress on our three-year business plan. To recap year one, we restructured, revised our product roadmap, set our leadership team in place, and put tremendous focus and effort into operational excellence. As we often say internally, focus plus effort equals results, and that is becoming apparent in the results we are delivering. We completed year one of our plan early and have a head start on year two. Year two of the plan prioritizes growth and innovation. Our next generation software and hardware products will deliver substantial innovation to the market, which in turn we believe will result in further growth. A very well-received innovation is our recently announced anti-vandalism technology. One of the industry's biggest points is station vandalism, particularly the theft of charger cables. To combat the issue, we have developed a cut-resistant cable and are offering it to the entire industry so we can collectively fight crime. This innovative approach to hardware development remains one of our four strategic cornerstones, and the hardware roadmap is not just limited to features and components. The first of several planned product announcements for 2025 will take place soon. Year three of the business plan will be reaping the benefits of this completely revamped product portfolio, which includes our next generation software platform that will drive profitable growth. In terms of growth, like with innovation, there were tangible results in Q4. The biggest highlight was a collaboration with General Motors' GM Energy division. Together with ChargePoint customers, we plan to open a significant number of GM Energy branded DC fast charging locations this year. ChargePoint is uniquely placed to deliver this for GM, thanks to our market position and our relationships with the industry. The program is intended to offset upfront investment with an owner-operator subsidy. This enables our customers to reduce their ROI threshold and accelerates the growth of their network. It will drive sales of ChargePoint solutions in parallel. As proof of its appeal, we managed to open the first location within four weeks of finalizing the program. While there is much in the news regarding the uncertainty of U.S. federal funding for DC fast charging infrastructure, There is still funding available at the state and utility level. In Q4, we completed six fast charging corridors across the state of Colorado, doubling charger coverage on those roadways. We are also near completion of a series of fast charging locations in New York State. Neither of these large-scale projects is federally funded. Despite operating in a turbulent macro environment, We believe the transition to electrified transportation is inevitable. I will now touch on the policy direction of the new U.S. administration and the possible implications for ChargePoint, beginning with tariffs. Over the past two years, we have geographically diversified our manufacturing and warehousing relationships. We manufacture globally and have the capability to increase production at any of these facilities, including those located in the United States. The proposed tariffs on raw materials are inconsequential relative to the total cost of manufacturing our products. Regarding the future of the National Electric Vehicle Infrastructure Program, which represents the U.S. federal funding being pulled back, ChargePoint does not own and operate charging infrastructure. We do not sell electricity to drivers, nor are we reliant on federal funding. Overall, NEVI-related deals represented an insignificant portion of our revenue in 2024. Therefore, we do not anticipate these changes to have a material effect on our business going forward. In conclusion, ChargePoint is leading the EV charging industry, retaining our significant market share. We have rationalized our cost structure to improve our financial performance for our shareholders. ChargePoint is the most diversified business in the EV charging sector by use case and geography. We have an expansive customer base across AC home, AC commercial, and DC high-speed charging, spanning both Europe and North America. Our dependence on federal projects is minimal, and everything is in place for growth this year. We are confident we can deliver. I will now turn the call over to our CFO, Manasi Katani.