Pasquale Romano: Not quite. If you look at the percent of total ports. AC, DC, if you look at it on a technology basis and not on a segment basis, but you just look at DC ports, AC ports and then we always break home out because it is on a different kind of volumetric scale, because it’s much more one-to-one with vehicles where they’re single-family residence anyway. The percentages haven’t moved around that much in a long-term trend. The difference is the ASPs on the DC products have risen. And the reason the ASPs have risen is not because they’re getting more expensive, is that the power levels that are being delivered on average occur parking stall have gone up from early days. So, the cents per watt delivered, if you want to reduce it to its most basic metric, although I would argue that that’s not the only metric you should look at, that has clearly come down with efficiency.
But the overall kilowatts delivered has gone up significantly with respect to that technology. So, that causes a mix shift in dollar. And then if you look at the fleet business, which is growing quite nicely for us, it also in the early days, especially associated with transit and I made some comments with respect to transit, medium and heavy, etc., those are much more DC heavy businesses. So, when you add that mix in, that’s what’s behind Rex’s comments on mix sensitivity.
Chris Pierce: Okay. Perfect. Appreciate it.
Operator: Thank you. We’ll go next now to Steven Fox at Fox Advisors.
Steven Fox: Hey. Good afternoon. Just one big picture question from me. If we step back, I know you guys weren’t providing guidance for the second half, but I mean you’ve implied that the revenues are lower than you would have thought 90 days ago. So, can you sort of force rank why the disappointment in the top-line? And then as a follow-up to that, can you talk about why you would think about a reacceleration in revenues for next year? Because if I do the math, your revenues are decelerating to 10% to 20% sales growth, which obviously is not a bad number in this environment. But you’re talking about getting back to like 30% for next year. So, I’d love to understand like the biggest drivers of the down and then the backup? Thanks.
Rex Jackson: Yeah. So, first of all, just to emphasize, Q2, we were within our guidance range, nice year-over-year growth. So, strong performance there. 9% to 10% from a guidance perspective, I think we’re doing pretty well. Looking forward to the second half, as I said in my prepared remarks, we wanted to be prudent in terms of our guide. We just implemented a reorganization. We had the impairment charge that we referenced. Things are interesting and choppy in the real world out there. So, we want people — we want to say what we’re going to do and then do it. So, we’re being very prudent from a Q3 perspective. Obviously, there’s an implied number from a Q4 perspective, same prudent supplies. Do we think next year will be better?
As I said earlier, we’re looking at mid-30s in terms of percentage year-over-year this year versus last year. And there’s a reason to expect that that’s going to decelerate next year. It don’t need to accelerate, as I said, in terms of getting to our Q4 goals. So, I think we feel pretty good about where we are. And Europe is performing beautifully. I just had a nice conversation day about it. If I told you two years ago that this is what Europe would be doing today, would you believe me, and people would be like, maybe not. So, Europe is doing a really great job. We do need to get home strengthened again relative to what its performance was at 7%. It’s usually 10% to 12%. So, we see that picking up in Q3, Q4. People need to get back to work.
We do see pressure building on the infrastructure we have on the commercial side, not just workplace but everywhere else. And fleet is chunky. And as the vehicles show, I think that we’re down to our benefit. So, I remain very optimistic about next year. I can’t put numbers on it. But I don’t see us as talking about slowdowns and challenges. It’s a prudent finish to the end of the year and a good outlook for next year, and we’ll guide you when we get there.
Steven Fox: Okay. Thank you.
Operator: And we’ll go next now to Brett Castelli at Morningstar.
Brett Castelli: Hi. Thank you. I just wanted to ask around the sales pipeline of larger fleet opportunities and what you’re seeing there sort of deals like the USPS type of deal?
Pasquale Romano: Yeah, I mean, as I made comments earlier, I think in response to a question, there is certainly a pipeline of large deals. The — as Rex put it, the prudence we’re trying to apply to the color we give you on that is, frankly, until we see all the ducks in a row with respect to both vehicle availability and all of the construction accoutrements associated with the deal, we’re being fairly conservative as to where we expect things to show up. We can thanks to the supply chain crisis not being upon us anymore whatsoever, we are not supply constrained. So, we’ll have plenty of response runway as we see things firming up. So, the summary is, yeah, there’s much bigger deals, much like USPS, et cetera., in the pipe.
Timing is hard to call. And so, we are just being — we are just trying to be measured with respect to that. Because as I said in my closing remarks, getting to that profitability number at the end of next year, it can’t include wishful thinking on our part. It’s got to include stuff that we have visibility into. So, while we’re pretty confident that, that fleet number is going to continue to surprise us all as a positive as a long-term trend. In the short term, call on the timing, it’s just too dangerous.
Brett Castelli: Yeah. Thank you. That’s all I had.
Operator: Thank you. And ladies and gentlemen, that will bring us to the conclusion of the ChargePoint second quarter fiscal 2024 earnings conference call. I’d like to thank you all so much for joining us this afternoon and wish you all a great remainder of your day. Goodbye.
