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Chargepoint revenue falls, guidance disappoints

EditorNatashya Angelica
Published 03/05/2024, 04:23 PM
© Reuters.
CHPT
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CAMPBELL, Calif. - ChargePoint (NYSE:CHPT) Holdings, Inc. (NYSE:CHPT), a leader in electric vehicle (EV) charging solutions, reported a revenue decline in its fiscal fourth quarter and offered weaker-than-expected guidance for the upcoming quarter, sending its shares down 9.01% in market response.

The company posted fourth-quarter earnings per share (EPS) of -$0.23, aligning with analyst predictions. However, revenue fell short at $115.8 million against the $118.55 million consensus estimate.

The company's fourth-quarter revenue marked a 24% decrease compared to the $152.8 million reported in the same quarter last year. This decline was primarily driven by a 39% drop in networked charging systems revenue, which plummeted from $122.3 million to $74.0 million YoY. On a positive note, subscription revenue climbed 30% to $33.5 million from $25.7 million YoY.

ChargePoint's non-GAAP gross margin also saw a slight dip to 22% from 23% in the prior year's same quarter. The GAAP net loss widened to $94.7 million from $78.7 million YoY, and the non-GAAP pre-tax net loss increased to $51.6 million from $45.5 million.

Looking ahead, ChargePoint provided guidance for the first quarter of fiscal 2025 with expected revenue between $100 million and $110 million. This forecast suggests a 19% decrease at the midpoint compared to the previous year's same quarter. Additionally, the company reaffirmed its goal to achieve positive non-GAAP Adjusted EBITDA by the fourth quarter of fiscal 2025.

ChargePoint's CEO, Rick Wilmer, commented on the results, highlighting the company's focus on operational execution, gross margin normalization, and reduced cash usage. "Looking ahead, we are focused on operational excellence, delivering world-class driver experiences, prioritization of our software platform, and hardware innovation," said Wilmer.

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Despite the revenue miss and the downward stock movement, ChargePoint's full fiscal year revenue grew by 8% to $507 million, with subscription revenue showing a robust 41% growth YoY. The company remains committed to its strategy and the broader adoption of EVs, as reflected in its continued investment in its software platform and hardware innovation.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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