Q4 2025 ChargePoint Holdings Inc Earnings Call
Pam: 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.
Pam: All participants' lines have been placed in this and only mode to prevent any background noise.
Pam: After the speaker's remarks, there will be a question and answer session.
Speaker Change: I would now like to turn the call over to Nandan Amlady, ChargePoint's Vice President of Finance and Investor Relations. Nandan, please go ahead.
Speaker Change: Good afternoon, and thank you for joining us on today's conference calls to discuss ChargePoint's fourth quarter fiscal 2025 earnings results. This call is being broadcast and can be accessed on the investor relations sections of our website at investors.chargePoint.com.
Speaker Change: With me, on today's call, Eric Wilmer, Archive Executive Officer, and Mansi Khetani, Archive Financial Officer.
Speaker Change: This afternoon, we issued our press release announcing results for the quarter and the January 31, 2025, which can be found on our website.
Speaker Change: 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. [inaudible]
Speaker Change: These forward-looking statements apply as of today and we undertake no obligation to update these statements after the call.
Speaker Change: For a more detailed description of certain factors that could cause actual results to differ, please refer to our Form 10-Q file with the SEC on December 6th, 2024, and our earnings release posted today on our website and file with the SEC on Form 8K.
Speaker Change: Also, please note that we use certain non-GAAP financial measures on this call, which we reconcile the gap in our earnings release and for certain historical periods in the investor presentation, posted on the investor section of our website.
Rick Wilmer: And finally, we'll be posting a transcript of this call to our investor relations website under the quarterly result section. And with that, let me turn the call over to Rick.
Rick Wilmer: 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.
Rick Wilmer: We continue to execute on our mission for operational excellence in the fourth quarter and are pleased with the results.
Rick Wilmer: We delivered significant sequential improvement and adjusted EBITDA as well as cash usage revenue was 102 million above the midpoint of our guidance range.
Rick Wilmer: Subscription revenue increased 14% year-on-year to 38 million in Q4. Our gross margin increased to 30% on a non-GAAP basis.
Rick Wilmer: Q4 non-GAAP OptX was 52 million, which is down 42% from a high point of 89 million in Q2 of Fiscal Year 2024.
Rick Wilmer: Cash consumption reduced significantly compared to last quarter, and our ending cash balance was up by 5 million from the end of Q3.
Rick Wilmer: 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.
Rick Wilmer: 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.
Evie Adoption continues despite recent narratives to the contrary.
Rick Wilmer: According to the research firm Roe Motion, 2024 was a record year for global EV sales volume, with North America up 9%
Rick Wilmer: The firms January 2025 data reported North American sales up 22% year-over-year and Europe including the UK of 21%.
Rick Wilmer: EV sales are a natural leading indicator for our industry. As more EVs hit the road, the more charges are needed to fuel them. Dozens of new EV models are expected to arrive this year, further expanding selection for consumers.
Rick Wilmer: DGVs boast features which were previously unavailable and they are coming to market at price points closer to those of internal combustion vehicles.
Rick Wilmer: We believe free market forces will drive organic EV adoption in the absence of subsidies.
Rick Wilmer: Global automotive manufacturers, most recently Kia on February 27th, have reconfirmed their commitment to E.D.'s.
Whether they continue to invest in internal combustion or not.
Rick Wilmer: 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.
Rick Wilmer: Evie charging will remain the essential enabler of the transition to immobility
Rick Wilmer: Charging sessions on the ChargePoint network continue to grow sequentially with approximately 27 million sessions delivered in the fourth quarter.
Rick Wilmer: 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.
Rick Wilmer: As I have said previously, we believe this demonstrates how existing EV charging infrastructure is under pressure.
Rick Wilmer: 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 for both.
Rick Wilmer: Charging infrastructure has lagged behind EV adoption and it needs to catch up.
Rick Wilmer: We continue to make progress on our three-year business plan. To recap, you won. We restructured, revised our product roadmap.
Rick Wilmer: Set our leadership team in place and put tremendous focus and effort into operational excellence.
Rick Wilmer: As we often say internally, focus plus effort equals results and that is becoming apparent in the results we are delivering.
Rick Wilmer: Be completed year one of our plan early and have a head start on year two . . . .
Rick Wilmer: 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 as are recently announced anti-bandalism technology.
Rick Wilmer: 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.
Rick Wilmer: 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.
Rick Wilmer: Year 3 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.
Rick Wilmer: In terms of growth, like with innovation, there will tangible results in Q4.
Rick Wilmer: 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
Rick Wilmer: ChargePoint is uniquely placed to deliver this for GM thanks to our market position and our relationships with the industry.
Rick Wilmer: The program is intended to offset upfront investment with an owner-operator subsidy.
Rick Wilmer: 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.
Rick Wilmer: As proof of its appeal, we managed to open the first location within four weeks of finalizing the program.
and many more. Thank you. Thank you.
Rick Wilmer: While there is much in the news regarding the uncertainty of US federal funding for DC fast charging infrastructure, there is still funding available at the state and utility level.
Rick Wilmer: In Q4, we completed six fast charging corridors across the state of Colorado, doubling charge
Rick Wilmer: We're also near completion of a series of fast charging locations in New York State. Neither of these large-scale projects is federally funded. This is a series of fast charging locations in New York State.
Rick Wilmer: 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 a possible implications for ChargePoint, beginning with tariffs.
Rick Wilmer: 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.
Rick Wilmer: The proposed tariffs on raw materials are inconsequential relative to the total cost of manufacturing
Speaker Change: Regarding the future of the National Electric Vehicle Infrastructure Program, which represents the U.S. Federal funding being pulled back
Speaker Change: ChargePoint does not own and operate charging infrastructure. We do not sell electricity to drivers, nor are we reliant on federal funding.
Speaker Change: Overall, Navy-related deals represent 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.
Speaker Change: 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.
Speaker Change: Our dependence on federal projects is minimal and everything is in place for growth this year. We are confident we can deliver.
Speaker Change: I will now turn the call over to our CFO , Mansi Khetani.
Thanks, Rick.
Speaker Change: As a reminder, please see our earnings press release where we reconcile our non-GAAP results to gap. Our principal exclusions are stop based compensation, amitization of intangible assets, and certain costs related to restructuring and acquisitions.
We are very pleased with our Q4 results [inaudible]
Speaker Change: All the focus and effort we put into operational excellence throughout last year is bearing fruit and our two far results would approve point of that [inaudible]
Speaker Change: We delivered significant improvements to our gross margin profile and brought our tax down to appropriate levels which materially reduced adjusted EBITDA loss.
Speaker Change: This reduction in adjusted EBITDA loss, combined with a reduction in inventories and better working capital management resulted in significantly reduced cash usage for the quarter.
Speaker Change: As we have mentioned before, we expect total cash usage to continue to be close to adjusted EBITDA loss or better as we sell through inventory. We saw this in Q4 and expect this trend
Speaker Change: Revenue for the fourth quarter was 102 million above the midpoint of our guidance range, which was 95 million to 105 million.
Speaker Change: Network Charging Systems at 53 million accounted for 52% of fourth quarter revenue.
Speaker Change: This was flat sequentially and down 29% year on year. Looking ahead, we believe we will start seeing improvement in these year on year growth rates.
Speaker Change: Subscription revenue at 38 million was 38% of total revenue up 5% sequentially and up 14% year-on-year due to the recurring revenue generated from a higher installed base
Speaker Change: Other revenue at 11 million was 11% of total revenue up 4% sequentially and up 33% year-on-year.
Speaker Change: From a geographic perspective, North America made up 81% of fourth quarter revenue, and Europe was 19% consistent with recent quarters.
Speaker Change: non-GAAP growth margin was 30%, improving 4 percentage points sequentially and 8 percentage points
Speaker Change: This is attributable to higher hardware margins due to improved costs and higher subscription revenue.
Speaker Change: We expect margins to continue around this range going forward and further improve in the back of the year subject to revenue mix.
Speaker Change: non-GAAP operating expenses were 52 million, down 11% sequentially from 59 million in the third quarter, and down 30% from 75 million in the fourth quarter last year.
Speaker Change: This apex level is now appropriate for our business needs, however we do expect a modest increase going forward due to annual salary increases and investments in certain key areas of the business.
Speaker Change: non-GAAP adjusted EBITDA loss was 17 million, a fifth consecutive quarter of improvement.
Speaker Change: This compares with a loss of 29 million in the third quarter and a loss of 45 million in the fourth quarter of last year.
Speaker Change: Starbase compensation was 15 million, down from 21 million in the third quarter, and down from 25 million year on year.
Speaker Change: Our inventory balance decreased by 13 million to 209 million, the second consecutive reduction from an all time high in the second quarter of fiscal year 2025.
Speaker Change: This reduction in inventory freed up cash and helped reduce our cash usage in the quarter.
Speaker Change: As we have mentioned on prior calls, selling through existing inventory releases working capital and generates cash, which occurred this quarter and we expect this to continue in the future.
Speaker Change: We ended the quarter with 225 million in cash on hand up 5 million sequentially.
Speaker Change: Our cash used for operating activities declined significantly to just $3 million during the quarter, down from $31 million in Q3.
Speaker Change: This was due to lower operating expenses, higher gross margin, reduced inventory and other improvements to working capital.
Speaker Change: Note that due to a capital-wide business model, cash used for operations, as shown on our statement of cash flows, is very close to total cash consumption for the quarter.
Speaker Change: While we continue to rigorously manage cash, we have access to a 150 million revolving credit facility, which remains under on. We have no debt maturities until 2028 and we have existing capacity on our ATM.
With respect to full fiscal year 2025 results
Speaker Change: Revenue was $417 million, non-GAAP growth margin was 26% and non-GAAP operating expenses were $243 million.
Speaker Change: From a geographic perspective, North America was 81% of full year revenue, and Europe was 19%
Speaker Change: For additional full year fiscal 2025 results, see the press release issued earlier today.
Speaker Change: Turning to guidance, for the first quarter of fiscal 2026, we expect revenue to be 95 million to 105 million.
Speaker Change: This is almost in line with Q4 at the midpoint, despite Q1 typically being a seasonally lower quarter.
Speaker Change: In conclusion, we believe Q4 was a pivotal quarter for us.
Speaker Change: Our results reflect the ongoing benefits of all the measures we took over the past year in terms of gross margin-improved trends and up-ex reductions, all of which improved adjusted EBITDA loss.
Speaker Change: We are entering fiscal 2026 with streamlined operations, a significantly reduced cash one profile and a strong balance sheet.
Speaker Change: Continuing on our fiscal 2025 trends, we will focus on operational excellence and execution to achieve our goal of being adjusted EBITDA positive in a quarter during fiscal 2026.
We will now open the call for questions.
Speaker Change: Thank you. We will now begin the question and answer session. If you have dialed in and would like to ask a question, please press star one on your telephone keypad.
Speaker Change: Simply press star one again. If you are called upon to ask a question and are listening via loudspeaker on your device, please pick up your handset and ensure that your phone is not on mute when asking your question.
Patrick Hamer, Richard Wilmer, Mansi Khetani
Speaker Change: and your first question comes from the line of Colin Rusch with Openheimer.
Speaker Change: Please go ahead. Thanks so much guys. Thanks so much. Can you talk about what the optimal working capital balance looks like for you guys? It looks like you probably have some inventory that you can draw down but receivables and payables are probably around the right levels here. Just want to get a sense of getting that in line.
Speaker Change: Hi, Colin. So typically if you look at quarters before last few years where we had this huge supply chain issue, where we started that right after that started building up our inventory, if you look at quarters prior to that. [inaudible]
We actually generate positive working capital.
Speaker Change: And this is mostly because of the SaaS effect of our subscription revenue. We get paid upfront.
Speaker Change: for the entire portion of the contract value, and that's why I deferred revenue balances is high and that generates actually cash for us, which helps working in a significant way. Going forward though, I think, you know, it balances out with inventory needs, payables, etc. But this is not a business that requires significant amount of investment in working capital. [inaudible]
Patrick Hamer, Richard Wilmer, Mansi Khetani, Mansi Khetani, Mansi Khetani.
Speaker Change: Great. And then just a broader question, given the rationalization of a lot of the players in the space, can you talk a little bit about the competitive landscape and how that shifting and how you see potential share gains coming through the balance of this calendar year?
Speaker Change: Yeah, I think on that column, we're watching it very carefully. Obviously, you know, different players in the market, whether they're in North American or Europe and depending on how they play and how much they depend, for example, on government subsidies to impact it in different ways. [inaudible]
Speaker Change: We've all seen some participants go out of business, some other players exit the business, and we're again paying attention to it very carefully away.
Great. Thanks so much.
Mark Delaney: Your next question comes from Mark Delaney with Goldman Sachs, please go ahead
Mark Delaney: Yes, good afternoon, thank you very much for taking my questions and I see the margin progress.
Mark Delaney: Last quarter, you spoke about green shoots in demand as you considered factors like the scope of projects and the timing as to when your customers wanted to deploy incremental charging capacity. Could you give a bit more on what you're seeing in terms of the project pipeline for this coming fiscal year and what that might mean for your revenue growth? Thank you very much.
Mark Delaney: Yeah, as we've discussed, this is the year where the two big themes are revenue growth and innovation and we fully expect capitalize on both. Thank you very much.
Mark Delaney: In terms of demand, again, I alluded to this in the prepared remarks, but
Mark Delaney: What we really believe is that improve vehicle selection both the form factor of the vehicles and the price points of the vehicles.
Mark Delaney: are really going to help pick up demand. We saw that in the growth numbers year over year and again we really believe free market forces will win the day and are firmly convinced based on all kinds of data including first-hand experience that EVs are just superior to internal combustion vehicles.
Mark Delaney: and we've now hit a 10% market penetration and a big portion of the US and most of Europe .
Mark Delaney: And at that level of penetration, you've now got enough EVs on the road that people that have not.
Mark Delaney: Experienced them, or seen them are now seeing friends drive them, they're having an opportunity to try them themselves. [inaudible]
with that said.
Mark Delaney: We've got a lot of commercial institutions that are in parts of the world where there's a lot of EVs on the road and they fully realize that if they don't offer EV charging, the people that they care about aren't going to come to their institution. Thank you.
So we're seeing you know strong demand continuing in commercial commercial.
Mark Delaney: In the case of fleet, we're now starting to see real tangible data that's showing that fleet customers are actually lowering their cost of operations and exceeding quite frankly their expectations.
Mark Delaney: with an electrified fleet compared to an old internal combustion fleet. So there's a lot of positive signs that are translating into business for us.
Speaker Change: This is very helpful. My other question was about the mix of business. I think typically you disclose billions by vertical, apologies if I missed it, but could you talk a little bit more around how the mix of the business has evolved, what it came in at during the fourth quarter and any go forward commentary and was that a factor in the gross margin pickup as well? Thank you.
Speaker Change: Yeah, so the mix was pretty similar to what we normally see, commercial was 68%
Fleet was 16 percent.
Speaker Change: Residencia was 12% and the rest other was 4% very similar to trends in the past nothing different there. And the growth margin improvement was not really related to the mix here was more related to better hardware margins and higher subscription revenue as a percentage of overall revenue. Thank you.
Executive Producer, Alan Shadrack Executive Producer, Patrick Hamer Special Thanks
Thank you
Bill Peterson: Your next question comes from Bill Peterson with JP Morgan. Please go ahead.
Speaker Change: Hi, good afternoon, this is Nihima Khetani on for Bill Peterson. Can you maybe touch on higher current cell in rates and cell through rates or trending and our distributors still taking on new product now or waiting in anticipation of policy certainty and perhaps improving
Um, you know, again, we're...
Speaker Change: This is a year of driving growth and we see demand out there that needs to be fulfilled, so I don't think there's been any shift in that.
Policy Changes [inaudible]
Speaker Change: In terms of the way the channel is working its business as usual. I haven't seen any change as well. In terms of the take rates or the sell-through rates of the channel and now we've been in a place for a few quarters now where the channel inventory is normalized. Let's go to the next one.
Speaker Change: So all that is operating well and we continue to grow our channel program. That's part of the overall plan to drive revenue growth this year.
Speaker Change: Got it, thank you. Can you also touch on if you expect any changes to your contract with the USPS, given the GSA's recent move, you know, to remove charges from its properties?
Speaker Change: So far, no news. We're still moving forward with USPS deployments, but obviously like everything that's affected by government policy changes, we're keeping a close eye on it.
Okay thank you appreciate it.
Speaker Change: Your next question comes from Stephen Gengaro from Stifle. Thank you. Please go ahead.
Thank you, afternoon, everybody.
Speaker Change: I think two for me, but I'll start with subscription margins which were very strong. There seems to be the last three years some seasonal strength in the fourth quarter and I was wondering if that was...
Speaker Change: Coincidental if there's a trend there for fourth quarter seasonality and just kind of how we should think about subscription margins going forward.
Speaker Change: Yes, so the benefit we get in the fourth quarter, Steven, is that our subscription revenues tend to be higher and obviously the cost don't have to scale along with revenue, so we always see a nice margin boost.
Speaker Change: However, we expect this to continue, actually even improve through next year because we're going to continue to see economies of scale as our subscription revenue keeps growing. We've mentioned in the past we're investing in automation on that side of the business, and we're expanding in low cost regions.
Speaker Change: And as Mansi mentioned, we've got the economy of scale now. We're able to negotiate some of those costs down. In an addition, we're moving into a hybrid cloud environment where we've got more than one source for cloud services, which gives us additional leverage to drive cost of goods sold down on the subscription revenue site. [inaudible]
Speaker Change: Great, thank you, and my follow-up and I was a drop-off before, I apologize if you answered this, but anything on the supply chain for chargers and the tariff issues and how that could impact demand from your customers.
Speaker Change: So, as we mentioned in the prepared remarks, we luckily for us, we diversified our manufacturing.
Speaker Change: Footprint substantially over the last year and a half. We've got factories in multiple countries now.
including the U.S. [inaudible]
Speaker Change: So based on everything that's been announced thus far and put into play, and even to some extent things that have been rumored to put into play, our analysis shows that we should not have a major impact on our supply chain and therefore cogs as a result of tariffs.
Great. Thank you.
Thank you. Thank you.
Patrick Hamer: Thank you for joining us. We appreciate it. I'm Patrick Hamer. I'm Mansi Khetani. I'm Richard Wilmer. I'm Mansi Khetani. Thank you for joining us.
Speaker Change: Again, if you would like to ask a question, please press bar 1 on your telephone keypad.
That is, star one on your telephone keypad.
Yeah, someone just queued back up.
Speaker Change: We now have Mark Delaney from Goldman Sachs. Please go ahead.
Mark Delaney: Yeah, thanks for taking the follow-up questions. One I was hoping to better understand is what you're seeing in terms of the decoupling between hardware and subscription revenue. I know that created some...
Mark Delaney: Potential opportunity for you on the software side. Also, you perhaps could be headwind as well. So if you could elaborate on what you've been seeing, especially in the North America market with that dynamic.
Yeah, Mark, that trend continues.
Mark Delaney: We've now, I believe, have literally over 100, well over 100 different non-charge point hardware models that we manage with our software.
Mark Delaney: and we're seeing that trend of no bifurcation of a software buying decision and a hardware buying decision continue.
Mark Delaney: and we believe with our leading edge software solutions, that puts us in a great position to continue to drive.
Mark Delaney: Software Subscription Revenue that may be disassociated to some extent with our hardware sales.
Mark Delaney: Again, because we can manage all kinds of third party hardware with our software and we're watching that trend continue.
Speaker Change: Very helpful. Another topic that's up in to follow up on was around.
Speaker Change: I think there have been some challenges with permitting the headlet to some pushouts. I don't know if you've seen any progress from that perspective that you can speak to.
No, no substantial progress, it's kind of steady state.
Speaker Change: where you'll see some deals that you expected to close in a quarter get moved either because of permanent delays, grid upgrades, available of grid infrastructure equipment. And that is, I think the trend is kind of state consistent there where it hasn't really improved or deteriorated compared to the way it's been in the last couple quarters. Thank you very much.
Speaker Change: Okay, sorry, I just want one last one for me. You may be talking about the mix of hardware.
Hardware Business, going forward.
Speaker Change: Mansi talked about pretty flat-ish, gross margins, in the near term and then pick up in the second half subject to mix. So I don't know if you can elaborate on what you're contemplating there and what we should be watching for in terms of mixed dynamics over the helpful and what might be a headwind. Thanks.
Speaker Change: Yeah, yeah, so what I meant in terms of mix with, if mix shifts. [inaudible]
Speaker Change: Significantly, in one direction or the other, that might impact it. So I just wanted to qualify my commentary. There is no makeshift expected. It's been pretty consistent actually over the last four or five quarters. All right.
Speaker Change: But as I mentioned, we will see benefit or improvement in margin in the second half of the year more than what we already have seen in Q4 mostly because of improvements in hardware margins due to product coming from our Asia manufacturers. Thank you very much.
and Improvement in our subscription margins with economies of scale.
Shut it. Thank you.
and many more. Thank you. Thank you.
Speaker Change: Your next question comes from Craig Irwin with Roth's Capital Partners Okay.
Please go ahead.
Craig Irwin: Thank you for taking my questions. The first thing I wanted to ask is back to office.
Speaker Change: This is something that impacts a historically very important customer base for ChargePoint, all the technology companies, particularly on the West Coast, the putting charging for their employees.
Speaker Change: You know, are you seeing back the office play out as a little bit of a tailwind for you guys? I know historically it's been, you know, high margin, high margin mix. Is that something that could potentially benefit you over the next year or two? [inaudible]
Craig Irwin: Good question, Craig. I think in general, when we think about the commercial segment, one easy way to sub-segment it is and to retail and non-retail. [inaudible]
Craig Irwin: The workplace, schools, universities, libraries, et cetera, I'll fall into the non-retail side of that category.
Craig Irwin: Park to say, if it's actually directly correlated with return to office, but overall, both in the retail and non-retell segment of commercial we're seeing growth.
Craig Irwin: Yeah, so we will continue to see inventory coming down as we saw over the last two quarters. And as that happens, as you already pointed out, this will [inaudible]
Craig Irwin: You know, release working capital. It adds to our cash balance. We'll continue to see that. Payable deposits, all that stuff is kind of stable. There'll be a little bit of movement here and there. You know, nothing major, but the two main things that will drive, you know, cash. [inaudible]
Craig Irwin: Our one inventory and the other one is reduction in adjusted EBITDA a lot.
and Manasi Khetani, CEO Alphabet and Google.
Craig Irwin: for Total Cash Consumption. You saw that this quarter cash usage from operations was just 3 million versus 31 million last quarter. That's why our cash position was so strong, but as inventory keeps going down over the next few quarters, we'll keep seeing a positive impact on cash. We'll keep seeing a positive impact on cash, but we'll keep seeing a positive impact on cash, but we'll keep seeing a positive impact on cash.
Understood. Thank you. Thanks again for taking my questions
Thank you very much.
Thank you very much. Thank you. Thank you.
Speaker Change: Again, if you would like to ask a question, please press star one on your telephone keypad.
Again, that it's Star One on your telephone keypad.
There are no more questions at this time.
Speaker Change: Ladies and gentlemen, that concludes today's call. Thank you all for joining, you may now disconnect.