ChargePoint shares drop on weak Q3 outlook, revenue miss

CAMPBELL, Calif. - ChargePoint (NYSE:CHPT ) Holdings, Inc. (NYSE:CHPT) saw its shares fall 5% after the electric vehicle charging network provider reported second quarter fiscal 2025 results that missed analyst expectations and issued disappointing guidance for the current quarter.

The company reported revenue of $109 million for the quarter ended July 31, 2024, falling short of the $113.51 million consensus estimate. Adjusted earnings per share came in at -$0.16, $0.01 worse than analysts expected.

Revenue declined 28% YoY, primarily due to a 44% drop in networked charging systems revenue to $64.1 million. However, subscription revenue grew 21% to $36.2 million.

For the third quarter, ChargePoint forecast revenue between $85 million to $95 million, well below the $135.9 million analysts were expecting. The weak outlook likely contributed to the stock's decline in after-hours trading.

"ChargePoint continued to execute against its strategy and deliver results in line with our stated goals," said CEO Rick Wilmer. "Our second quarter revenue was within our stated guidance range and gross margin improved sequentially for the third consecutive quarter."

The company also announced a reorganization plan, including a 15% reduction in its global workforce. This is expected to result in annualized operating expense savings of approximately $41 million on a GAAP basis and $38 million on a non-GAAP basis.

ChargePoint now targets reaching positive adjusted EBITDA during fiscal year 2026, as it focuses on returning to growth and streamlining operations. The company ended the quarter with $243.7 million in cash and cash equivalents on its balance sheet.

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Source: Investing.com