ChargePoint Holdings Inc

Previous wording

Since its inception in 2007, ChargePoint has been engaged in developing and marketing its Networked Charging Systems, subscriptions and other offerings, raising capital and recruiting personnel. ChargePoint has incurred net operating losses and negative cash flows from operations in every year since its inception. As of July 31, 2024, ChargePoint had an accumulated deficit of $1,755.0 million. ChargePoint has funded its operations primarily from customer payments, the issuance of common stock, redeemable convertible preferred stock and convertible notes, exercise proceeds from options and warrants, borrowings under loan facilities and proceeds from the Reverse Recapitalization.

Current wording

Since its inception in 2007, ChargePoint has been engaged in developing and marketing its Networked Charging Systems, subscriptions and other offerings, raising capital and recruiting personnel. ChargePoint has incurred net operating losses and negative cash flows from operations in every year since its inception. As of October 31, 2024, ChargePoint had an accumulated deficit of $1,832.6 million. ChargePoint has funded its operations primarily from customer payments, the issuance of common stock, redeemable convertible preferred stock and convertible notes, exercise proceeds from options and warrants, borrowings under loan facilities and proceeds from the Reverse Recapitalization.

Previous wording

ChargePoint believes its revenue growth is tied to the number of passenger and commercial EVs sold, which it believes drives the demand for EV charging infrastructure. The market for EVs is still rapidly evolving and although demand for EVs has grown in recent years, the rate of EV sales is highly volatile and there is no guarantee of future demand for EV sales. Factors impacting the adoption of EVs include but are not limited to perceptions about EV features, quality, safety, performance and cost; perceptions about the limited range over which EVs may be driven on a single battery charge; volatility in the cost of oil and gasoline; availability of services for EVs; consumers’ perception about the convenience, reliability and cost of charging EVs; and increases in fuel efficiency of internal combustion engine vehicles. Further, numerous EV auto manufacturers have recently announced delays in their previously announced plans to migrate their manufacturing production to be solely or primarily EVs. In addition, macroeconomic factors, including governmental mandates and incentives and the impact of higher interest rates, inflation and a potential economic recession, could impact demand for EVs, particularly since they can be more expensive to purchase than traditional gasoline-powered vehicles. Further, geopolitical factors, such as the ongoing conflict between Russia and Ukraine, conflicts in the Middle East, conflicts between the United States and China or between China and Taiwan may negatively impact the global automotive supply chain and reduce the manufacturing of automobiles, including EVs. If the market for EVs does not develop as expected, if there is any slow-down or delay in overall EV adoption, or if auto manufacturers delay their EV manufacturing rates or eliminate their plans to transition to predominately EV manufacturing, the rate of EV adoption may be adversely affected and the market for EV charging may not develop as a result and ChargePoint’s financial condition and results of operations could be materially and adversely impacted.

Current wording

ChargePoint believes its revenue growth is tied to the number of passenger and commercial EVs sold, which it believes drives the demand for EV charging infrastructure. The market for EVs is still rapidly evolving and although demand for EVs has grown in recent years, the rate of EV sales is highly volatile and there is no guarantee of future demand for EV sales. Factors impacting the adoption of EVs include but are not limited to perceptions about EV features, quality, safety, performance and cost; perceptions about the limited range over which EVs may be driven on a single battery charge; volatility in the cost of oil and gasoline; availability of services for EVs; consumers’ perception about the convenience, reliability and cost of charging EVs; and increases in fuel efficiency of internal combustion engine vehicles. Further, numerous EV auto manufacturers have announced delays in their previously announced plans to migrate their manufacturing production to be solely or primarily EVs. In addition, macroeconomic factors, including reduction or elimination of governmental mandates and incentives and the impact of higher interest rates, inflation and any potential economic recession, could impact demand for EVs, particularly since they can be more expensive to purchase than traditional gasoline-powered vehicles. Further, geopolitical factors, such as the ongoing conflict between Russia and Ukraine, conflicts in the Middle East, conflicts between the United States and China or between China and Taiwan may negatively impact the global automotive supply chain and reduce the manufacturing of automobiles, including EVs. If the market for EVs does not develop as expected, if there is any slow-down or delay in overall EV adoption, or if auto manufacturers delay their EV manufacturing rates or eliminate their plans to transition to predominately EV manufacturing, the rate of EV adoption may be adversely affected and the market for EV charging may not develop as a result and ChargePoint’s financial condition and results of operations could be materially and adversely impacted.

Previous wording

As ChargePoint introduces new products, such as the release of its Express Plus DC fast charger in fiscal year 2022 and CP6000 Level 2 AC charger in fiscal year 2023, its gross margins may be initially negatively impacted by launch costs and lower volumes until it achieves targeted cost reductions. Cost reductions may not occur on the timeline ChargePoint expects due to a number of factors, including but not limited to failure to meet its own estimates, unanticipated supply chain difficulties, government mandates or certification requirements. In addition, ChargePoint may accelerate its expenditures where it sees growth opportunities, which may negatively impact gross margin until upfront costs and inefficiencies are absorbed and normalized operations are achieved. Further, ChargePoint has historically invested in prioritizing an assurance of supply of its products and new customer acquisition as part of its “land and expand” model, which puts pressure on gross margins and increases operating expenses. ChargePoint also continuously evaluates and may adjust its expenditures, such as new product introduction costs, based on its launch plans for new products, as well as other factors including the pace and prioritization of current projects under development and the addition of new projects. As ChargePoint attains higher revenue, it expects operating expenses as a percentage of total revenue to decrease as it scales and focuses on increasing operational efficiency and process automation.

Current wording

As ChargePoint introduces new products its gross margins may be initially negatively impacted by launch costs and lower volumes until it achieves targeted cost reductions. Cost reductions may not occur on the timeline ChargePoint expects due to a number of factors, including but not limited to failure to meet its own estimates, unanticipated supply chain difficulties, government mandates or certification requirements. In addition, ChargePoint may accelerate its expenditures where it sees growth opportunities, which may negatively impact gross margin until upfront costs and inefficiencies are absorbed and normalized operations are achieved. Further, ChargePoint has historically invested in prioritizing an assurance of supply of its products and new customer acquisition, which puts pressure on gross margins and increases operating expenses. ChargePoint also continuously evaluates and may adjust its expenditures, such as new product introduction costs, based on its launch plans for new products, as well as other factors including the pace and prioritization of current projects under development and the addition of new projects. As ChargePoint attains higher revenue, it expects operating expenses as a percentage of total revenue to decrease as it scales and focuses on increasing operational efficiency and process automation.

Previous wording

ChargePoint has an international presence and as a result is subject to risks and uncertainties caused by significant events with macroeconomic impacts, including, but not limited to geopolitical events, including the ongoing Russia-Ukraine conflict, conflicts in the Middle East, rising political tensions with China, rising inflation and interest rates, monetary policy changes, financial services sector instability, recessions, global pandemics and foreign currency fluctuations. Additionally, these macroeconomic impacts have generally disrupted the operations of its customers and prospective customers. In addition, shifts in ChargePoint’s product mix to DC chargers from AC chargers may negatively affect ChargePoint’s gross profits and gross margins since ChargePoint generally realizes higher gross margins from sales of its AC chargers. Further, disruption to ChargePoint’s supply chains and heightened component and shipping pricing and logistics expenses, which ChargePoint experienced in 2021 and 2022, may further adversely impact ChargePoint’s gross margins, adversely affect demand for

Current wording

ChargePoint has an international presence and as a result is subject to risks and uncertainties caused by significant events with macroeconomic impacts, including, but not limited to geopolitical events, including the ongoing Russia-Ukraine conflict, conflicts in the Middle East, rising political tensions with China, rising inflation and interest rates, monetary policy changes, financial services sector instability, recessions, global pandemics and foreign currency fluctuations. Additionally, these macroeconomic impacts have generally disrupted the operations of its customers and prospective customers. In addition, shifts in ChargePoint’s product mix to DC chargers from AC chargers may negatively affect ChargePoint’s gross profits and gross margins since ChargePoint generally realizes higher gross margins from sales of its AC chargers. Further, disruption to ChargePoint’s supply chains and heightened component and shipping pricing and logistics expenses, which ChargePoint experienced in 2021 and 2022, may further adversely impact ChargePoint’s gross margins, adversely affect demand for ChargePoint’s products, lengthen its product development and sales cycles, and reduce expected spending from new customers, all of which could adversely affect ChargePoint’s business, results of operations and financial condition.

Previous wording

Networked Charging Systems revenue decreased during the three and six months ended July 31, 2024 compared to the three and six months ended July 31, 2023 primarily due to lower volume of Networked Charging Systems delivered across ChargePoint’s major product families.

Current wording

Networked Charging Systems revenue decreased during the three and nine months ended October 31, 2024 compared to the three and nine months ended October 31, 2023 primarily due to lower volume of Networked Charging Systems delivered across ChargePoint’s major product families.

Previous wording

Subscriptions revenue increased during the three and six months ended July 31, 2024 compared to the three and six months ended July 31, 2023 primarily due to the growth in the number of Cloud subscriptions and Assure subscriptions for Networked Charging Systems connected to ChargePoint’s network.

Current wording

Subscriptions revenue increased during the three and nine months ended October 31, 2024 compared to the three and nine months ended October 31, 2023 primarily due to the growth in the number of Cloud subscriptions and Assure subscriptions for Networked Charging Systems connected to ChargePoint’s network.

Previous wording

Other revenue increased during the three and six months ended July 31, 2024 compared to the three and six months ended July 31, 2023 primarily due to net transaction fees earned for processing payments collected on driver charging sessions.

Current wording

Other revenue increased during the three and nine months ended October 31, 2024 compared to the three and nine months ended October 31, 2023 primarily due to net transaction fees earned for processing payments collected on driver charging sessions.

Previous wording

Cost of Networked Charging Systems revenue decreased during the three and six months ended July 31, 2024 compared to the three and six months ended July 31, 2023 primarily due to a decrease in Networked Charging Systems delivered and an inventory impairment charge of $28.0 million taken in the prior year.

Current wording

Cost of Networked Charging Systems revenue decreased during the three months ended October 31, 2024 compared to the three months ended October 31, 2023 primarily due to a decrease in Networked Charging Systems delivered and an inventory impairment charge of $42.0 million taken in the prior year.

Previous wording

Cost of Subscriptions revenue did not materially fluctuate during the three months ended July 31, 2024 compared to the three months ended July 31, 2023.

Current wording

Cost of Subscriptions revenue did not materially fluctuate during the nine months ended October 31, 2024 compared to the nine months ended October 31, 2023.

Previous wording

Cost of other revenue increased during the three and six months ended July 31, 2024 compared to the three and six months ended July 31, 2023 primarily due to higher driver-related processing costs on Networked Charging Stations.

Current wording

Cost of other revenue increased during the three and nine months ended October 31, 2024 compared to the three and nine months ended October 31, 2023 primarily due to higher driver-related processing costs on Networked Charging Stations.

Previous wording

In the long term, improvements in ChargePoint’s gross profit and gross margin will depend on its ability to continue to optimize its operations and supply chain as it increases its revenue. However, at least in the short term, as the product mix continues to vary and as ChargePoint continues to align inventory supply with demand and optimize for customer acquisition as part of its “land and expand” model, launches new Networked Charging Systems products, grows its presence in Europe where it has not yet achieved economies of scale, and expands its solutions for its fleet customers, gross margin will vary from period to period.

Current wording

In the long term, improvements in ChargePoint’s gross profit and gross margin will depend on its ability to continue to optimize its operations and supply chain as it increases its revenue. However, at least in the short term, as the product mix continues to vary and as ChargePoint continues to align inventory supply with demand and optimize for customer acquisition, launches new Networked Charging Systems products, grows its presence in Europe where it has not yet achieved economies of scale, and expands its solutions for its fleet customers, gross margin will vary from period to period.

Previous wording

Gross profit and gross margin both increased during the three and six months ended July 31, 2024 compared to the three and six months ended July 31, 2023 primarily due to the inventory impairment charge of $28.0 million taken in the prior year.

Current wording

Gross profit and gross margin both increased during the three and nine months ended October 31, 2024 compared to the three and nine months ended October 31, 2023 primarily due to the inventory impairment charge of $42.0 million and $70.0 million, respectively taken in the prior year.

Previous wording

Research and development expenses decreased during the six months ended July 31, 2024 compared to the six months ended July 31, 2023 primarily due to the Company’s reorganization plans taken in the prior year and cost reduction measures resulting in decreases of $17.5 million in personnel expenses, $6.3 million in stock-based compensation expenses, $8.2 million in engineering materials and service costs, and $4.4 million in consulting and other operating expenses.

Current wording

Research and development expenses decreased during the three months ended October 31, 2024 compared to the three months ended October 31, 2023 primarily due to the Company’s reorganization plans taken in the prior periods and cost reduction measures resulting in decreases of $10.1 million in personnel expenses, $4.6 million in stock-based compensation expenses and $2.7 million in engineering materials and service costs.

Previous wording

Research and development expenses decreased during the three months ended July 31, 2024 compared to the three months ended July 31, 2023 primarily due to the Company’s reorganization plans taken in the prior year and cost reduction measures resulting in decreases of $9.9 million in personnel expenses, $5.1 million in stock-based compensation expenses, $5.9 million in engineering materials and service costs, and $2.3 million in consulting and other operating expenses.

Current wording

Research and development expenses decreased during the nine months ended October 31, 2024 compared to the nine months ended October 31, 2023 primarily due to the Company’s reorganization plans taken in the prior periods and cost reduction measures resulting in decreases of $27.6 million in personnel expenses, $10.9 million in stock-based compensation expenses, $10.9 million in engineering materials and service costs, and $5.2 million in travel and other operating expenses.

Previous wording

Sales and marketing expenses decreased during the six months ended July 31, 2024 compared to the six months ended July 31, 2023 primarily due to the Company’s reorganization plans taken in the prior year and cost reduction measures resulting in decreases of $2.4 million in personnel expenses, $1.0 million in stock-based compensation expenses, $2.8 million in consulting expenses, and $0.7 million in marketing expenses, offset by an increase of $1.9 million in other operating expenses.

Current wording

Sales and marketing expenses decreased during the nine months ended October 31, 2024 compared to the nine months ended October 31, 2023 primarily due to reductions of $3.0 million in stock-based compensation expenses resulting from reorganizations, $3.4 million in consulting expenses, $1.5 million in marketing expenses, $1.0 million in travel expenses, and $0.8 million in commission expenses.

Previous wording

General and administrative expenses decreased during the three months ended July 31, 2024 compared to the three months ended July 31, 2023 primarily due to the Company’s reorganization plans taken in the prior year and cost reduction measures resulting in decreases of $1.6 million in personnel expenses, $8.5 million in stock-based compensation expenses, and $2.1 million in consulting expenses, offset by an increase of $2.3 million in other operating expenses.

Current wording

General and administrative expenses decreased during the three months ended October 31, 2024 compared to the three months ended October 31, 2023 primarily due to the Company’s reorganization plans taken in the prior periods and cost reduction measures resulting in decreases of $8.2 million in facility and other contract terminations related expenses, $1.6 million in personnel expenses, $5.0 million in stock-based compensation expenses, and $1.7 million in consulting expenses.

Previous wording

Interest income did not materially fluctuate during the three and six months ended July 31, 2024 as compared to the three and six months ended July 31, 2023.

Current wording

Interest income did not materially fluctuate during the three and nine months ended October 31, 2024 as compared to the three and nine months ended October 31, 2023.

Previous wording

Interest expense consists primarily of theinterest on ChargePoint’s 2028 Convertible Notes that were originally issued in April 2022, and amended in October 2023, which are described more completely below in Liquidity and Capital Resources.

Current wording

Interest expense consists primarily of theinterest on ChargePoint’s 2028 Convertible Notes that were originally issued in April 2022, and amended in October 2023, as described below in Liquidity and Capital Resources.

Previous wording

Interest expense increased during the three and six months ended July 31, 2024 as compared to the three and six months ended July 31, 2023 primarily due to increased interest expense on the 2028 Convertible Notes. For more information, see Note 6, Debt, in the notes to condensed consolidated financial statements in this Quarterly Report.

Current wording

Interest expense increased during the three and nine months ended October 31, 2024 as compared to the three and nine months ended October 31, 2023 primarily due to increased interest expense on the 2028 Convertible Notes. For more information, see Note 6, Debt, in the notes to condensed consolidated financial statements in this Quarterly Report.

Previous wording

Other income (expense), net decreased during three and six months ended July 31, 2024 as compared to the three and six months ended July 31, 2023 due to unfavorable changes in foreign exchange rates.

Current wording

Other expense, net decreased during three and nine months ended October 31, 2024 as compared to the three and nine months ended October 31, 2023 due to favorable changes in foreign exchange rates.

Previous wording

The provision for (benefit from) income taxes increased during the three and six months ended July 31, 2024 as compared to the three and six months ended July 31, 2023 primarily due to reserves for uncertain tax positions.

Current wording

The provision for (benefit from) income taxes increased during the three and nine months ended October 31, 2024 as compared to the three and nine months ended October 31, 2023 primarily due to reserves for uncertain tax positions.

Previous wording

ChargePoint has incurred net losses and negative cash flows from operations since its inception, which it anticipates will continue for the foreseeable future. To date, ChargePoint has funded its business and past acquisitions primarily with proceeds from the issuance of common stock, redeemable convertible preferred stock, proceeds from the Merger, proceeds from warrant and option exercises for cash, convertible debt and from customer payments. As of July 31, 2024, ChargePoint had cash and cash equivalents and restricted cash of $243.7 million. As of January 31, 2024, ChargePoint had cash and cash equivalents and restricted cash of $357.8 million. ChargePoint believes that its cash on hand and cash generated from sales to customers will satisfy its working capital and capital requirements for at least the next twelve months.

Current wording

ChargePoint has incurred net losses and negative cash flows from operations since its inception, which it anticipates will continue for the foreseeable future. To date, ChargePoint has funded its business and past acquisitions primarily with proceeds from the issuance of common stock, redeemable convertible preferred stock, proceeds from the Merger, proceeds from warrant and option exercises for cash, convertible debt and from customer payments. As of October 31, 2024, ChargePoint had cash and cash equivalents and restricted cash of $219.8 million. As of January 31, 2024, ChargePoint had cash and cash equivalents and restricted cash of $357.8 million. ChargePoint believes that its cash on hand and cash generated from sales to customers will satisfy its working capital and capital requirements for at least the next twelve months.

Previous wording

On July 1, 2022, ChargePoint filed a registration statement on Form S-3 (File No. 333-265986) with the SEC (that was declared effective by the SEC on July 12, 2022), which permits ChargePoint to offer up to $1.0 billion of shares of Common Stock, preferred stock, debt securities, warrants and rights in one or more offerings and in any combination, including in units from time to time (the “Shelf Registration Statement”). As part of the Shelf Registration Statement, ChargePoint filed a prospectus supplement registering for sale from time to time up to $500.0 million shares of Common Stock pursuant to a sales agreement (the “ATM Facility”). During the three months ended July 31, 2024, there were no sales of the Company’s Common Stock pursuant to the ATM Facility. As of July 31, 2024, $161.6 million of shares of Common Stock remained available for sale pursuant to the ATM Facility.

Current wording

On July 1, 2022, ChargePoint filed a registration statement on Form S-3 (File No. 333-265986) with the SEC (that was declared effective by the SEC on July 12, 2022), which permits ChargePoint to offer up to $1.0 billion of shares of Common Stock, preferred stock, debt securities, warrants and rights in one or more offerings and in any combination, including in units from time to time (the “Shelf Registration Statement”). As part of the Shelf Registration Statement, ChargePoint filed a prospectus supplement registering for sale from time to time up to $500.0 million shares of Common Stock pursuant to a sales agreement (the “ATM Facility”). During the three months ended October 31, 2024, the Company sold a total of 2.2 million shares of its Common Stock pursuant to the Company’s Common Stock pursuant to the ATM Facility for total proceeds of $3.0 million, net of $0.03 million of issuance costs. As of October 31, 2024, $158.6 million of shares of Common Stock remained available for sale pursuant to the ATM Facility.

Previous wording

ChargePoint’s principal use of cash in recent periods has been funding its operations, past acquisitions, and investing in capital expenditures. ChargePoint’s future capital requirements will depend on many factors, including its revenue growth rate, the timing and the amount of cash received from customers, the expansion of sales and marketing activities, the timing and extent of spending to support development efforts, expenses associated with its international expansion, the introduction of network enhancements and the continuing market adoption of its Networked Charging Systems. In the future, ChargePoint may enter into arrangements to acquire or invest in complementary businesses, products and technologies. ChargePoint may be required to seek additional equity or debt financing beyond the amounts available to it pursuant to the ATM Facility and the 2027 Revolving Credit Facility.

Current wording

ChargePoint’s principal use of cash in recent periods has been funding its operations, past acquisitions, and investing in capital expenditures. ChargePoint’s future capital requirements will depend on many factors, including its revenue growth rate, the timing and the amount of cash received from customers, its efforts to reduce operating expenses, the timing and extent of spending to support development efforts, expenses associated with its reorganizations, the introduction of network enhancements and the continuing market adoption of its Networked Charging Systems. In the future, ChargePoint may enter into arrangements to acquire or invest in complementary businesses, products and technologies. ChargePoint may be required to seek additional equity or debt financing beyond the amounts available to it pursuant to the ATM Facility and the 2027 Revolving Credit Facility.

Previous wording

If ChargePoint requires additional financing, it may not be able to raise such financing on acceptable terms or at all, particularly if certain unfavorable economic and market conditions persist or worsen and a potential recession or other economic downturn would intensify these risks. If ChargePoint is unable to raise additional capital or generate cash flows necessary to expand its operations and invest in continued innovation, it may not be able to compete successfully, which would harm its business, results of operations and financial condition. If adequate funds are not available, ChargePoint may need to reconsider its expansion plans or limit its research and development activities, which could have a material adverse impact on its business prospects and results of operations.

Current wording

If ChargePoint requires additional financing, it may not be able to raise such financing on acceptable terms or at all, particularly if certain unfavorable economic and market conditions persist or worsen and a potential recession or other economic downturn would intensify these risks. If ChargePoint is unable to raise additional capital or generate cash flows necessary to optimize its operations and invest in continued innovation, it may not be able to compete successfully, which would harm its business, results of operations and financial condition. If adequate funds are not available, ChargePoint may need to reconsider its plans or limit its research, development and sales activities, which could have a material adverse impact on its business prospects and results of operations.

Previous wording

For the Six Months Ended July 31, 2024 and 2023

Current wording

For the Nine Months Ended October 31, 2024 and 2023

Previous wording

During the six months ended July 31, 2024, net cash used in operating activities was $113.7 million, consisting primarily of a net loss of $140.7 million and change in net operating assets of $44.4 million, partially offset by an add back of non-cash charges of $71.4 million. The noncash charges consisted primarily of $40.4 million of stock-based compensation expense, $12.7 million of inventory reserves and other costs, $16.5 million of depreciation, amortization, and amortization of deferred contract acquisition costs, and $1.9 million of non-cash operating lease cost. The change in operating assets and liabilities was mainly driven by increases in inventories of $28.4 million and prepaid expenses and other assets of $8.2 million and decrease in accounts payable, operating lease liabilities, and accrued and other liabilities of $22.6 million, offset by decrease in accounts receivable, net, of $7.6 million and an increase in deferred revenue of $7.2 million.

Current wording

During the nine months ended October 31, 2024, net cash used in operating activities was $144.3 million, consisting primarily of a net loss of $218.3 million and change in net operating assets of $44.2 million, partially offset by an add back of non-cash charges of $118.2 million. The noncash charges consisted primarily of $61.1 million of stock-based compensation expense, $17.1 million of inventory reserves and other costs, $24.6 million of depreciation, amortization, and amortization of deferred contract acquisition costs, $12.8 million non-cash interest expenses, and $2.7 million of non-cash operating lease cost. The change in operating assets and liabilities was mainly driven by increases in inventories of $24.2 million and prepaid expenses and other assets of $6.3 million and decrease in accounts payable, operating lease liabilities, and accrued and other liabilities of $25.3 million, offset by decrease in accounts receivable, net, of $6.3 million and an increase in deferred revenue of $5.2 million.

Previous wording

During the six months ended July 31, 2023, net cash used in operating activities was $190.6 million, consisting primarily of a net loss of $204.6 million and change in net operating assets of $95.6 million, partially offset by an add back of non-cash charges of $109.7 million. The non-cash charges primarily consisted of $59.1 million of stock-based compensation expense, $28.0 million of inventory write down and related non-cash charges, $15.4 million of depreciation, amortization expense and amortization of deferred contract acquisition costs, $5.0 million of inventory reserves and other costs, and $2.2 million of non-cash operating lease cost. The changes in operating assets and liabilities were mainly driven by increases in inventories of $97.9 million, accounts receivable, net, of $40.6 million, prepaid expenses and other assets of $12.4 million, offset by increases in deferred revenue of $21.2 million and accounts payable, operating lease liabilities and accrued and other liabilities of $34.0 million.

Current wording

During the nine months ended October 31, 2023, net cash used in operating activities was $287.5 million, consisting primarily of a net loss of $362.9 million and change in net operating assets of $120.6 million, partially offset by an add back of non-cash charges of $196.0 million. The non-cash charges primarily consisted of $91.9 million of stock-based compensation expense, $70.0 million of inventory impairment and related non-cash charges, $23.3 million of depreciation, amortization expense and amortization of deferred contract acquisition costs, $7.5 million of inventory reserves and other costs, and $3.3 million of non-cash operating lease cost. The changes in operating assets and liabilities were mainly driven by increases in inventories of $183.6 million and prepaid expenses and other assets of $6.1 million, offset by a decrease in accounts receivable, net, of $8.7 million, increases in deferred revenue of $28.7 million and accounts payable, operating lease liabilities and accrued and other liabilities of $31.7 million.

Previous wording

During the six months ended July 31, 2024, net cash used in investing activities was $7.3 million related to purchases of property and equipment.

Current wording

During the nine months ended October 31, 2024, net cash used in investing activities was $10.1 million related to purchases of property and equipment.

Previous wording

During the six months ended July 31, 2023, net cash provided by investing activities was $95.1 million consisting of cash received from maturities of short-term investments of $105.0 million, partially offset by purchases of property and equipment of $9.9 million and an immaterial initial cash investment in a joint venture.

Current wording

During the nine months ended October 31, 2023, net cash provided by investing activities was $90.3 million consisting of cash received from maturities of short-term investments of $105.0 million, partially offset by purchases of property and equipment of $14.7 million and an immaterial initial cash investment in a joint venture.

Previous wording

During the six months ended July 31, 2024, net cash provided by financing activities was $6.9 million, consisting of proceeds from the issuance of Common Stock under employee equity plans of $4.5 million, net of tax withholdings and change in driver funds and amounts due to customers of $2.4 million.

Current wording

During the nine months ended October 31, 2024, net cash provided by financing activities was $16.4 million, consisting of proceeds from the issuance of Common Stock under employee equity plans of $7.7 million, net of tax withholdings, change in driver funds and amounts due to customers of $5.7 million, and proceeds from the sale of common stock under the ATM Facility, net of commissions and fees, of $3.0 million.

Previous wording

During the six months ended July 31, 2023, net cash provided by financing activities was $64.0 million, consisting of proceeds from the sale of common stock under the ATM Facility, net of commissions and fees, of $54.8 million, proceeds from the issuance of Common Stock under employee equity plans of $6.2 million, net of tax withholdings, and change in driver funds and amounts due to customers of $8.8 million, partially offset by $2.3 million issuance costs related to the 2027 Revolving Credit Facility and $3.5 million of the total $7.1 million contingent earnout consideration payment, of which the remaining $3.6 million is classified as cash out flow under operating activities.

Current wording

During the nine months ended October 31, 2023, net cash provided by financing activities was $300.7 million, consisting of proceeds from the sale of common stock under the ATM Facility, net of commissions and fees, of $287.2 million, proceeds from the issuance of Common Stock under employee equity plans of $11.0 million, net of tax withholdings, and change in driver funds and amounts due to customers of $8.9 million, partially offset by $2.9 million issuance costs related to the 2027 Revolving Credit Facility and $3.5 million of the total $7.1 million contingent earnout consideration payment, of which the remaining $3.6 million is classified as cash out flow under operating activities.