ChargePoint Shares Slump After Cutting Jobs in Restructuring as Results Miss Estimates

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Bill McColl
Bill McColl
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Bill McColl has 25+ years of experience as a senior producer and writer for TV, radio, and digital media leading teams of anchors, reporters, and editors in creating news broadcasts, covering some of the most notable news stories of the time.

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Published September 07, 2023
Chargepoint station in Florida

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Shares of ChargePoint (CHPT) plummeted by more than 15% in early trading Thursday to hit an all-time low as the provider of charging stations for electric vehicles (EVs) reported worse-than-expected earnings results and announced a restructuring.

Key Takeaways

  • ChargePoint announced a restructuring as its quarterly earnings results and guidance fell short of forecasts.
  • The EV charging station provider will lay off about 10% of its workforce and make other cost cuts.
  • ChargePoint shares fell to an all-time low early Thursday, and are down about 40% this year.

ChargePoint posted a second-quarter fiscal 2024 loss per share of 35 cents, widening from the same quarter in 2022 and about three times greater than analysts’ forecasts. The company blamed the loss mainly on an inventory impairment charge on its first-generation direct current (DC) charging products.

Sales were up 39% to $150.5 million, but still below analyst estimates. Guidance from the company for current-quarter revenue of $150 million to $165 million, and full-year revenue of $605 million to $630 million were also less than anticipated.

ChargePoint said that as part of its reorganization, it was slashing its workforce by about 10% and reducing non-personnel costs. Chief Executive Officer (CEO) Pasquale Romano said the moves were aimed at “achieving higher operational efficiency as we scale, while reducing our operating expenses by an estimated $30 million on an annualized basis.”

Romano said ChargePoint faced “a hesitant economy” in the second quarter, but added that soaring demand for EVs “puts utilization pressure on infrastructure and we believe that will turn into demand for our products.”

ChargePoint shares have lost about 40% of their value this year. By midday Thursday, the stock had recovered slightly, to be off 13% for the day.

CHPT share price history

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  1. ChargePoint. "ChargePoint Reports Second-Quarter Fiscal Year 2024 Financial Results."

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