ChargePoint is reorganizing. Is it too little, too late? ChargePoint Holdings (CHPT -17.75%) provided its quarterly update this week, and it disappointed investors. That, along with the bigger picture of electric vehicle (EV) sales, has investors dumping ChargePoint stock. As of Thursday afternoon trading, ChargePoint stock had tumbled by 25% this week, according to data provided by S&P Global Market Intelligence. That drove the stock near its 2024 lows and down nearly 40% year to date. ChargePoint revenue ...

The EV charging company's guidance disappoints, but is this an opportunity to buy the stock? ChargePoint Holdings (CHPT -18.34%) stock slumped this morning, plunging 23.1% at its lowest point in trading through 11:20 a.m. ET Thursday. ChargePoint operates the largest electric vehicle (EV) charging network in the U.S., but demand has failed to keep up with the company's expectations. The evidence lies in ChargePoint's latest quarterly numbers, released yesterday. Although ChargePoint's net loss shrank in the ...

ChargePoint Holdings Inc CHPT shares tanked in early trading on Thursday, after the company reported downbeat second-quarter sales. The company reported its results amid an exciting earnings season. Here are some key analyst takeaways. RBC Capital Markets On ChargePoint Holdings Analyst Christopher Dendrinos maintained a Sector Perform rating while reducing the price target from $3.00 to $2.50. ChargePoint delivered a revenue miss, although its gross margins were better than expected, driven by "improved ha ...

ChargePoint Holdings, Inc. (CHPT) , a provider of electric vehicle charging networks, plans to slash its headcount by 15% amid declining revenues. In the second quarter of fiscal 2025, the company's revenues fell 28% to $108.5 million from $150.5 million in the corresponding quarter of fiscal 2024. Networked charging systems revenues dropped 44% year over year to $64.1 million, while subscription revenues grew 21% year over year to $36.2 million. In the second quarter of fiscal 2025, GAAP and non-GAAP gross ...

Arthur Kaszuba As the electric vehicle space continues to hit some bumps in its growth story, those trying to build out the necessary charging infrastructure have been hit hard. ChargePoint (NYSE:CHPT) shares have lost almost all of their value in recent years, as the company continues to miss long term sales growth estimates. On Wednesday, the company reported its fiscal Q2 results, and the news featured a major guidance disappointment for the current period. Previous coverage on the name: I've been bearis ...

jetcityimage Note: I have covered ChargePoint Holdings, Inc. or "ChargePoint" (NYSE:CHPT), previously, so investors should view this as an update to my earlier article on the company. After the close of Wednesday's session, electric vehicle ("EV") charging solutions provider ChargePoint Holdings reported less-than-stellar Q2/FY2025 results, with both revenues and profitability missing consensus expectations. | --- | --- | --- | --- | --- | --- | --- | --- | |-----------------------------------|-------|----- ...

Financial Data and Key Metrics Changes - Q2 revenue was $109 million, consistent with guidance and 1% higher sequentially, but 28% lower year-on-year due to lower hardware revenue [16][20] - Non-GAAP gross margins improved to 26%, the highest in nearly three years, with expectations for continued improvement as manufacturing transitions to lower-cost locations [8][18] - Non-GAAP operating expenses decreased by 25% year-on-year to $66 million, with an annualized reduction of approximately $38 million expected [18][21] - Non-GAAP adjusted EBITDA loss for Q2 was $34 million, an improvement from a loss of $36 million in Q1 and $81 million in Q2 of the previous year [18] Business Line Data and Key Metrics Changes - Network charging systems revenue was $64 million, accounting for 59% of total revenue, down 2% sequentially and 44% year-on-year [16] - Subscription revenue was $36 million, representing 33% of total revenue, up 8% sequentially and 21% year-on-year [16] - Fleet business accounted for 14% of billings, with delays in large deals due to external factors impacting revenue [17] Market Data and Key Metrics Changes - North America made up 80% of total revenue, with commercial verticals accounting for 72% of billings [17] - Sales of passenger EVs increased by 23% over Q1 and 11% year-on-year, indicating a stable growth path for EV adoption [7][8] - Plug-in hybrid sales were up 59% in the first half of the year, highlighting the importance of charging infrastructure [7] Company Strategy and Development Direction - The company is focused on operational efficiency, reducing headcount by approximately 15% and trimming non-personnel expenses [6][5] - Strategic focus areas include an open modular software platform, innovative hardware development, and enhancing driver experiences [10][14] - The company plans to become adjusted EBITDA positive during fiscal year 2026, with a focus on aggressive growth in fiscal 2026 and maximizing operational excellence in fiscal 2027 [15][21] Management's Comments on Operating Environment and Future Outlook - Management noted that Q2 was expected to be the bottom for revenue growth and EBITDA loss, with cautious guidance for Q3 due to macroeconomic conditions [20][21] - Positive signs in the market include increased deployment plans from existing customers and a growing pipeline of fleet opportunities [30][31] - Management expressed optimism about the gradual improvement in the overall macro environment and the potential for revenue growth next year [25][30] Other Important Information - The company has a cash balance of $244 million and no debt maturities until 2028, indicating strong cash management [19] - The managed port count grew to approximately 315,000, with a 10% increase in DC port growth for the quarter [10] - The company is actively working on new hardware products and partnerships to enhance its market position [11][12] Q&A Session Summary Question: Can you talk about the target revenue level to reach EBITDA breakeven? - Management indicated that inventory levels will remain high for the rest of the year, with expectations for breakeven next year depending on revenue growth [23][24] Question: What are the key areas of investment around technology development? - Focus areas include software and hardware, with expectations for exciting innovations in both areas [26][27] Question: When do you expect to see a revenue inflection point based on market positives? - Management noted that there are strong green shoots in customer expansion and pipeline growth, but timing is hard to predict [30] Question: Can you provide context on the quarter-on-quarter decline in guidance? - The decline is attributed to a significant change in the sales and marketing organization and a higher magnitude of deals being pushed out due to macro uncertainty [36][38] Question: How do you see the fleet business evolving? - The fleet business is expected to become a significant portion of overall revenue, potentially around a third over time [41][42] Question: What is the competitive landscape like currently? - The level of competition remains consistent, with some competitors unable to deliver, leading to opportunities for the company [49][50]

ChargePoint Holdings, Inc. (CHPT) came out with a quarterly loss of $0.10 per share versus the Zacks Consensus Estimate of a loss of $0.08. This compares to loss of $0.24 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -25%. A quarter ago, it was expected that this company would post a loss of $0.13 per share when it actually produced a loss of $0.11, delivering a surprise of 15.38%. Over the last four quarters, the company h ...

[Second Quarter Fiscal Year 2025 Financial Results](index=1&type=section&id=Second%20Quarter%20Fiscal%20Year%202025%20Financial%20Results) ChargePoint reported Q2 FY25 revenue of $108.5 million, a 28% decrease, with improved gross margin and reduced net loss [Q2 FY25 Financial Highlights](index=1&type=section&id=Q2%20FY25%20Financial%20Highlights) Q2 FY25 revenue declined to $108.5 million, yet gross margin significantly improved, and net loss substantially decreased Q2 FY25 Key Financials (YoY Comparison) | Metric | Q2 FY25 (Millions) | Q2 FY24 (Millions) | YoY Change | | :---------------------- | :----------------- | :----------------- | :--------- | | Revenue | $108.5 | $150.5 | -28% | | Networked Charging Systems Revenue | $64.1 | $114.6 | -44% | | Subscription Revenue | $36.2 | $30.0 | +21% | | GAAP Gross Margin | 24% | 1% | +23 pp | | Non-GAAP Gross Margin | 26% | 3% | +23 pp | | GAAP Operating Expense | $88.3 | $124.5 | -29% | | Non-GAAP Operating Expense | $66.4 | $88.9 | -25% | | GAAP Net Loss | $(68.9) | $(125.3) | -45% | | Non-GAAP Pre-tax Net Loss | $(43.0) | $(86.1) | -50% | | Non-GAAP Adjusted EBITDA Loss | $(34.1) | $(81.2) | -58% | - Gross margin improvement was primarily due to a **$28.0 million** inventory impairment charge taken in the prior year related to legacy supply-chain costs and supply overruns on a particular DC product[2](index=2&type=chunk) - As of July 31, 2024, cash and cash equivalents were **$243.7 million**, with the company's **$150 million** revolving credit facility remaining undrawn and no debt maturities until 2028[2](index=2&type=chunk) - Approximately **431 million shares** of common stock were outstanding as of July 31, 2024[2](index=2&type=chunk) [Key Business Developments](index=1&type=section&id=Key%20Business%20Developments) ChargePoint partnered with LG, launched Omni Port for universal EV charging, and introduced an AI tool for faster station diagnosis - ChargePoint and LG Electronics formed a strategic relationship to leverage technology and expertise for future EV charging innovations, potentially including commercial charging solutions, LG's smart home solutions, home energy storage, and charging with out-of-home advertising[3](index=3&type=chunk) - Launched Omni Port to solve EV connector confusion, enabling drivers of all EV makes to charge in any parking space regardless of connector type[3](index=3&type=chunk) - Introduced a new AI-powered driver support tool to rapidly accelerate the diagnosis and repair of charging stations in the field[3](index=3&type=chunk) [Strategic Actions and Future Outlook](index=2&type=section&id=Strategic%20Actions%20and%20Future%20Outlook) The company implemented a reorganization to reduce operating expenses and provided guidance for Q3 FY25 and FY26 [Reorganization and Operating Expense Reduction](index=2&type=section&id=Reorganization%20and%20Operating%20Expense%20Reduction) ChargePoint initiated a reorganization, reducing its global workforce by 15% to achieve significant annualized operating expense savings - ChargePoint announced a reorganization involving a reduction of its global workforce by approximately **15%**[4](index=4&type=chunk) Estimated Annualized Operating Expense Reductions (Millions) | Metric | Estimated Reduction (Millions) | | :-------------------------- | :----------------------------- | | Annualized GAAP Operating Expenses | $41 | | Annualized Non-GAAP Operating Expenses | $38 | - The company estimates aggregate restructuring costs of approximately **$10 million**, primarily consisting of severance payments and employee benefits, expected to be incurred during the third and fourth fiscal quarters[4](index=4&type=chunk) [Fiscal Year 2025 Guidance](index=2&type=section&id=Fiscal%20Year%202025%20Guidance) ChargePoint projects Q3 FY25 revenue between $85 million and $95 million, aiming for positive non-GAAP Adjusted EBITDA in fiscal year 2026 Q3 FY25 Revenue Guidance (Millions) | Metric | Guidance (Millions) | | :-------------- | :------------------ | | Q3 FY25 Revenue | $85 to $95 | - The company is concentrating on returning to growth and streamlining operations[5](index=5&type=chunk) - ChargePoint targets achieving **positive non-GAAP Adjusted EBITDA** during fiscal year 2026[5](index=5&type=chunk) [Company Information and Disclosures](index=2&type=section&id=Company%20Information%20and%20Disclosures) This section covers company background, forward-looking statement caveats, non-GAAP financial measures, and contact information [About ChargePoint](index=2&type=section&id=About%20ChargePoint) ChargePoint, established in 2007, is a leading provider of networked EV charging solutions across North America and Europe - ChargePoint is creating a new fueling network to move people and goods on electricity[7](index=7&type=chunk) - Since **2007**, ChargePoint has offered one of the largest EV charging networks and a comprehensive portfolio of charging solutions[7](index=7&type=chunk) - Their cloud subscription platform and software-defined charging hardware are designed for every charging scenario, from home and multifamily to workplace, parking, hospitality, retail, and transport fleets in North America and Europe[7](index=7&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section cautions that forward-looking statements are subject to risks and uncertainties, and actual results may differ materially - The press release contains forward-looking statements regarding potential operating expense savings, reorganization costs, projected Q3 FY25 revenue, and the goal to achieve positive non-GAAP Adjusted EBITDA[9](index=9&type=chunk) - Actual results could differ materially due to significant factors such as macroeconomic trends, supply chain disruptions, dependence on EV adoption, competition, and risks detailed in SEC filings[9](index=9&type=chunk) - The company does not assume any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, except as required by applicable law[9](index=9&type=chunk) [Use of Non-GAAP Financial Measures](index=3&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures) ChargePoint utilizes non-GAAP financial measures to provide supplemental insight into core operating performance, excluding specific non-cash and non-recurring items - ChargePoint uses non-GAAP financial measures internally and believes they are useful for investors to evaluate ongoing operating results and trends, providing supplemental information regarding underlying operating performance[10](index=10&type=chunk) - Non-GAAP measures exclude items such as stock-based compensation expense, restructuring costs, amortization expense of acquired intangible assets, and non-cash charges related to tax liabilities and litigation settlements[11](index=11&type=chunk)[13](index=13&type=chunk)[14](index=14&type=chunk) - The presentation of non-GAAP financial measures is not meant to be considered in isolation or as a substitute for comparable GAAP measures, and investors are cautioned about limitations, including the recurring nature of some excluded items like stock-based compensation[10](index=10&type=chunk)[15](index=15&type=chunk) [Investor and Media Contacts](index=4&type=section&id=Investor%20and%20Media%20Contacts) This section lists the contact details for ChargePoint's investor relations and media communications teams - Investor Relations contact: Patrick Hamer, Vice President, Capital Markets and Investor Relations (Patrick.Hamer@chargepoint.com, investors@chargepoint.com)[16](index=16&type=chunk) - Press contacts: John Paolo Canton, Vice President, Communications (JP.Canton@chargepoint.com) and AJ Gosselin, Director, Corporate Communications (AJ.Gosselin@chargepoint.com, media@chargepoint.com)[16](index=16&type=chunk) [Preliminary Condensed Consolidated Financial Statements](index=5&type=section&id=Preliminary%20Condensed%20Consolidated%20Financial%20Statements) This section presents the preliminary condensed consolidated statements of operations, balance sheets, and cash flows [Statements of Operations](index=5&type=section&id=Statements%20of%20Operations) This section details the preliminary condensed consolidated statements of operations for the three and six months ended July 31, 2024 and 2023 Preliminary Condensed Consolidated Statements of Operations (in thousands) | Metric | Three Months Ended July 31, 2024 | Three Months Ended July 31, 2023 | Six Months Ended July 31, 2024 | Six Months Ended July 31, 2023 | | :-------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total Revenue | $108,539 | $150,494 | $215,582 | $280,523 | | Total Cost of Revenue | $82,954 | $149,369 | $166,387 | $248,863 | | Gross Profit | $25,585 | $1,125 | $49,195 | $31,660 | | Total Operating Expenses | $88,331 | $124,457 | $179,079 | $234,914 | | Loss from Operations | $(62,746) | $(123,332) | $(129,884) | $(203,254) | | Net Loss | $(68,874) | $(125,255) | $(140,673) | $(204,643) | | Net Loss per Share, basic and diluted | $(0.16) | $(0.35) | $(0.33) | $(0.58) | | Weighted average shares outstanding | 427,532,688 | 355,876,807 | 425,434,765 | 353,008,473 | [Balance Sheets](index=6&type=section&id=Balance%20Sheets) This section presents the preliminary condensed consolidated balance sheets as of July 31, 2024, and January 31, 2024 Preliminary Condensed Consolidated Balance Sheets (in thousands) | Metric | July 31, 2024 | January 31, 2024 | | :-------------------------------- | :------------ | :--------------- | | Cash and Cash Equivalents | $243,263 | $327,410 | | Total Current Assets | $652,911 | $742,683 | | Inventories | $228,519 | $198,580 | | Total Assets | $1,003,777 | $1,103,363 | | Total Current Liabilities | $320,983 | $330,153 | | Total Liabilities | $772,887 | $775,687 | | Total Stockholders' Equity | $230,890 | $327,676 | [Statements of Cash Flows](index=7&type=section&id=Statements%20of%20Cash%20Flows) This section outlines the preliminary condensed consolidated statements of cash flows for the six months ended July 31, 2024 and 2023 Preliminary Condensed Consolidated Statements of Cash Flows (in thousands) | Metric | Six Months Ended July 31, 2024 | Six Months Ended July 31, 2023 | | :-------------------------------------------------------- | :----------------------------- | :----------------------------- | | Net Loss | $(140,673) | $(204,643) | | Net Cash Used in Operating Activities | $(113,706) | $(190,602) | | Net Cash Provided by (Used in) Investing Activities | $(7,301) | $95,123 | | Net Cash Provided by Financing Activities | $6,926 | $64,048 | | Net Decrease in Cash, Cash Equivalents, and Restricted Cash | $(114,147) | $(30,663) | | Cash, Cash Equivalents, and Restricted Cash at End of Period | $243,663 | $263,899 | [Reconciliation of GAAP to Non-GAAP Financial Measures](index=8&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Measures) This section provides detailed reconciliations of GAAP to non-GAAP financial measures for key performance indicators [Reconciliation of GAAP to Non-GAAP Financial Measures](index=8&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Measures) This section details the reconciliation of GAAP to non-GAAP financial measures for gross profit, operating expenses, and Adjusted EBITDA loss Non-GAAP Gross Profit Reconciliation (in thousands) | Metric | Three Months Ended July 31, 2024 | Three Months Ended July 31, 2023 | Six Months Ended July 31, 2024 | Six Months Ended July 31, 2023 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | GAAP Gross Profit | $25,585 | $1,125 | $49,195 | $31,660 | | Stock-based compensation expense | 1,526 | 1,938 | 2,610 | 2,933 | | Amortization of intangible assets | 764 | 766 | 1,526 | 1,532 | | Non-GAAP Gross Profit | $27,875 | $3,829 | $53,331 | $36,125 | | GAAP Gross Margin | 24% | 1% | 23% | 11% | | Non-GAAP Gross Margin | 26% | 3% | 25% | 13% | Non-GAAP Operating Expenses Reconciliation (in thousands) | Metric | Three Months Ended July 31, 2024 | Three Months Ended July 31, 2023 | Six Months Ended July 31, 2024 | Six Months Ended July 31, 2023 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | GAAP Operating Expenses | $88,331 | $124,457 | $179,079 | $234,914 | | Stock-based compensation expense | (17,243) | (33,161) | (37,758) | (56,130) | | Amortization of intangible assets | (2,264) | (2,273) | (4,525) | (4,545) | | Other adjustments (2) | (2,392) | (105) | (4,001) | (105) | | Non-GAAP Operating Expenses | $66,432 | $88,918 | $132,795 | $174,136 | | GAAP Operating Expenses (% of revenue) | 81% | 83% | 83% | 84% | | Non-GAAP Operating Expenses (% of revenue) | 61% | 59% | 62% | 62% | Non-GAAP Adjusted EBITDA Loss Reconciliation (in thousands) | Metric | Three Months Ended July 31, 2024 | Three Months Ended July 31, 2023 | Six Months Ended July 31, 2024 | Six Months Ended July 31, 2023 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | GAAP Net Loss | $(68,874) | $(125,255) | $(140,673) | $(204,643) | | Stock-based compensation expense | 18,769 | 35,099 | 40,368 | 59,063 | | Amortization of intangible assets | 3,028 | 3,039 | 6,051 | 6,077 | | Other adjustments (2) | 2,392 | 105 | 4,001 | 105 | | Provision for income taxes | 1,648 | 905 | 2,056 | 478 | | Depreciation | 4,423 | 3,925 | 8,844 | 7,941 | | Interest income | (2,118) | (1,840) | (5,326) | (4,300) | | Interest expense | 6,560 | 2,926 | 13,171 | 5,853 | | Other expense (income), net | 38 | (68) | 888 | (642) | | Non-GAAP Adjusted EBITDA Loss | $(34,134) | $(81,164) | $(70,620) | $(130,070) | | Non-GAAP Adjusted EBITDA Loss (% of revenue) | (31)% | (54)% | (33)% | (46)% |

ChargePoint Holdings, Inc. (CHPT) is slated to release second-quarter fiscal 2025 results on Sept. 4, after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter's loss per share and revenues is pegged at 8 cents and $114.15 million, respectively. For the fiscal second quarter, the consensus estimate for the electric vehicle (EV) charging company's loss per share has narrowed by a penny in the past 90 days. Its bottom-line estimates imply an increase of 66.67% from the year-ago repor ...