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

Page 6 of 10

So we are trying to make sure that we don’t culturally slow down the integration, but that we also don’t throw cold water on people’s expectations of slightly more flexible work environment. So I think we’ve managed it incredibly well. Feedback we have gotten as people are adapting and they are coming back together now since the restrictions have lifted. So, culturally, it’s gelling really well. We are also looking internally because of all the shift to now we know what this looks like at scale. So, now we know what to invest in from customer onboarding tools and automation, sales force automation, business process, reengineering internally to support what €“ you think you know what it’s going to look like and then you really know what it’s going to look like when it’s upon you.

So, there is a ton of that stuff going on cross-functionally inside the company. And I think it’s going about as well as it can which doesn’t mean it’s going bad. It’s going actually quite well. It will take time to come to complete fruition because we are also trying to run a business while we are doing that, but I am very happy with how our team has come together.

Operator: We will go next now to Craig Irwin at ROTH Capital.

Craig Irwin: Hi. Good evening and thank you for taking my questions. Pasquale, I share your preference for performance indicators over Fortune telling with a crystal ball and that being said, you have the largest business development team in the industry and have a very interesting way of managing that team making them compete for resources. Can you maybe update us €“ you were appropriately conservative on the funding from the Infrastructure Bill and said that this is really going to be a €˜23 benefit. Can you maybe update us on what you see as a potential timeline for different states to disperse that money in a meaningful way? And is there anything else in NEVI that you are more optimistic about in the short to medium-term that might have a bigger impact on the overall levels of market activity?

Pasquale Romano: Well, I mean I don’t think we have a shortage of market activity. And I am not trying to be €“ and with respect to NEVI, I am not disappointed. As you mentioned, we have been very consistent. We didn’t expect anything to happen before 2023. And if you want to update, as you asked, I expect something to happen in the front half of the year, but not a lot. There will be some things that happen in the front half of the year for sure on NEVI. And it will grow. It won’t be a cliff, but it will grow through the year. And I think you will start to see quite a bit of activity in the back half of the year in 2023, and that if things continue on the current trend. I mean that’s our current visibility. I will also point out that we don’t engineer things like that into our models specifically as we are managing the company because we look to be conservative with respect to the dynamics that can happen as well in programs like that now.

And maybe we are dealing with governments and it just moves at the pace of government. And so if you are in our position and you are betting on something on an optimistic side or you are betting on something at all until it materializes, it really undermines your ability to be predictable as a public company. It’s a bit reckless. So, when we start to see it ramp and we start to see what our win rate will be, we will be able to make further comments.

Operator: Thank you. We will go next now to Alex Vrabel at Bank of America.

Page 6 of 10