ChargePoint Holdings, Inc. (NYSE:CHPT) Q3 2023 Earnings Call Transcript

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And that one there is a global AC platform, so it can do the entire power range as well as single or three-phase. It does all the metering required for the entire world that we can see from a meter standards perspective, and we’re systematically going through all the incremental certification processes to cover the globe there. We haven’t gotten through 100% of everything in every corner of the markets that we serve, but we’re making steady progress and that will wrap up in the not-too-distant future. So it is possible to build something. I’ll point to a specific example. It’s completely modular with respect to whether it’s socketed or cable attached. Some European countries require socketed in some scenarios where the driver brings their own cable you can dynamically change the unit from socketed to cable attached, and you can meet all of the shuttered not socket requirements all over Europe with the same platform.

So again, from a manufacturing velocity standpoint and ability to deal with demand, instantaneous kind of mix issues, which always happen, like the long-term trends we can predict pretty well. But instantaneously within a quarter, especially as you get close to the end, you could get deals that come in that move things around locally really quickly. It’s nice having the ability to have a product that is built that way because you can satisfy demand from what is a manageable number of subassemblies and inventory. So that’s why we do it that way.

Colin Rusch: Perfect. That’s helpful. And then I guess the second question is really around the advantages of slowing some of the growth. You guys have done a very admirable job of growing the team. It is actively to have, but with some of that growth slowing and the ability to have a more cohesive team, can you talk about some of the efficiencies you’re expecting to get and what you’re seeing from a culture perspective as you start to see this group be a little bit closer and get some incremental leverage from an operating perspective?

Pasquale Romano: I think there is two big things to highlight that may or may not come to mind immediately when people listen to your question. We had to go through two acquisitions and integrate them. And I couldn’t be happier with how the teams have come together in both those acquisitions, they are fully integrated. Many of the folks that came in from the acquisitions have senior positions within technical and other and sales leadership within ChargePoint. So it was a really great add from a talent perspective. And we’ve kind of culturally all €“ we’ve learned a lot from those folks, and they have, I think, learned a lot from us. And together, I think we’re better than we were before all three of those companies came together on the technical side and on the sales side.

So we are really happy with that. I think the bigger impact is how many people we’ve added since COVID because that forced us into a remote environment like any other company for so many years. And if you look at how many €“ if you look at the historical headcount of the company, kind of pre-COVID then you €“ we were still private, right, and going public and now being public for nearly 2 years, 2 years in March, most of our workforce €“ not most, but a substantial percentage of our workforce that has been hired since COVID have not had the benefit of a great amount of personal interaction just because it’s been constrained. Now that’s coming back and we’re doing a lot of things to make sure we actively get people collaborating and being very careful by the way, to make sure that we embrace the flexibility that today’s workforce sort of demand.

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