- Second quarter fiscal 2025 revenue of $109 million
- Second quarter fiscal 2025 GAAP gross margin of 24% and
non-GAAP gross margin of 26%
- Second quarter fiscal 2025 subscription revenue of $36
million representing 21% year over year growth
- Second quarter fiscal 2025 GAAP operating expense of $88
million and non-GAAP operating expense of $66 million, representing
29% and 25% year over year improvement
- ChargePoint announces an estimated $41 million reduction in
annualized GAAP operating expenses and $38 million reduction in
annualized non-GAAP operating expenses
- ChargePoint guides to third quarter fiscal 2025 revenue of
$85 to $95 million
ChargePoint Holdings, Inc. (NYSE:CHPT) (“ChargePoint”), a
leading provider of networked solutions for charging electric
vehicles (EVs), today reported results for its second quarter of
fiscal year 2025 ended July 31, 2024.
“ChargePoint continued to execute against its strategy and
deliver results in line with our stated goals. Our second quarter
revenue was within our stated guidance range and gross margin
improved sequentially for the third consecutive quarter. Today, we
have implemented an action plan to create efficiencies while
reducing operating expenses,” said Rick Wilmer, CEO of ChargePoint.
“Our focus on delivering new software and hardware solutions that
make it easier to go electric remains unchanged."
Second Quarter Fiscal 2025 Financial Overview
- Revenue. Second quarter revenue was $108.5 million, down
28% from $150.5 million in the prior year’s same quarter. Networked
charging systems revenue for the second quarter was $64.1 million,
down 44% from $114.6 million in the prior year’s same quarter.
Subscription revenue was $36.2 million, up 21% from $30.0 million
in the prior year’s same quarter.
- Gross Margin. Second quarter GAAP gross margin was 24%
as compared to 1% in the prior year's same quarter, and non-GAAP
gross margin was 26% as compared to 3% in the prior year's same
quarter, in both cases primarily due to $28.0 million inventory
impairment charge taken in the prior year to address legacy
supply-chain related costs and supply overruns on a particular DC
product.
- Operating Expenses. Second quarter GAAP operating
expenses were $88.3 million, down 29% from $124.5 million in the
prior year's same quarter. Non-GAAP operating expenses were $66.4
million, down 25% from $88.9 million in the prior year's same
quarter.
- Net Income/Loss. Second quarter GAAP net loss was $68.9
million, down 45% from $125.3 million in the prior year's same
quarter. Non-GAAP pre-tax net loss was $43.0 million, down 50% from
$86.1 million in the prior year's same quarter, both reflecting the
$28.0 million inventory impairment charge taken in the prior year.
Non-GAAP Adjusted EBITDA Loss was $34.1 million, down 58% from
$81.2 million in the prior year's same quarter.
- Liquidity. As of July 31, 2024, cash and cash
equivalents on the balance sheet was $243.7 million. ChargePoint's
$150 million revolving credit facility remains undrawn and
ChargePoint has no debt maturities until 2028.
- Shares Outstanding. As of July 31, 2024, the Company had
approximately 431 million shares of common stock outstanding.
For reconciliation of GAAP and non-GAAP results, please see the
tables below.
Business Highlights
- ChargePoint and LG Electronics formed a strategic relationship
leveraging each company’s technology and expertise for future
innovations in EV charging. This may include commercial charging
solutions, with areas under collaboration including LG's smart home
solutions, home energy storage, and charging with out-of-home
advertising.
- ChargePoint launched Omni Port which aims to solve EV connector
confusion by enabling drivers of all makes of EVs to charge in any
parking space, regardless of connector type.
- ChargePoint extended its commitment to delivering world-class
driver experiences with the introduction of a new AI-powered driver
support tool to rapidly accelerate the diagnosis and repair of
charging stations in the field.
Reorganization
Today, ChargePoint announced the reorganization of its
operations including a reduction of ChargePoint's current global
workforce by approximately 15% (the “Reorganization”). The
Reorganization is expected to result in estimated annualized GAAP
and non-GAAP operating expense savings of approximately $41 million
and $38 million, respectively, while creating efficiencies by
streamlining functions across the Company. The Company estimates
the aggregate restructuring costs associated with the
Reorganization to be approximately $10 million, primarily
consisting of severance payments, employee benefits and related
costs. The Company expects to incur these costs primarily during
the third and fourth fiscal quarters.
Third Quarter and Fourth Quarter of Fiscal 2025
Guidance
For the third fiscal quarter ending October 31, 2024,
ChargePoint expects revenue of $85 million to $95 million.
The Company is concentrating on returning to growth and
streamlining operations to continue on its path to positive
non-GAAP Adjusted EBITDA, which is now targeted during fiscal year
2026.
ChargePoint is not able to present a reconciliation of its
forward-looking non-GAAP Adjusted EBITDA goal to the corresponding
GAAP measure because certain potential future adjustments, which
may be significant and may include, among other items, stock-based
compensation expense, are uncertain or out of its control, or
cannot be reasonably predicted without unreasonable effort. The
actual amounts of such reconciling items could have a significant
impact on ChargePoint's GAAP Net Loss.
Conference Call Information
ChargePoint will host a webcast today at 1:30 p.m. Pacific /
4:30 p.m. Eastern to review its second quarter fiscal 2025
financial results.
Investors may access the webcast, supplemental financial
information and investor presentation at ChargePoint’s investor
relations website (investors.chargepoint.com) under the “Events and
Presentations” section. A replay will be available after the
conclusion of the webcast and archived for one year.
About ChargePoint
ChargePoint is creating a new fueling network to move people and
goods on electricity. Since 2007, ChargePoint has been committed to
making it easy for businesses and drivers to go electric with one
of the largest EV charging networks and a comprehensive portfolio
of charging solutions. The ChargePoint cloud subscription platform
and software-defined charging hardware are designed to include
options for every charging scenario from home and multifamily to
workplace, parking, hospitality, retail and transport fleets of all
types. Today, one ChargePoint account provides access to hundreds
of thousands of places to charge in North America and Europe. For
more information, visit the ChargePoint pressroom, the ChargePoint
Investor Relations site, or contact the ChargePoint North American
or European press offices or Investor Relations.
Forward-Looking Statements
This press release contains forward-looking statements that
involve risks, uncertainties, and assumptions including statements
regarding the potential operating expenses savings and costs
associated with our Reorganization, our projected revenue for the
third quarter of fiscal year 2025 and our goal to achieve positive
non-GAAP Adjusted EBITDA. There are a significant number of factors
that could cause actual results to differ materially from the
statements made in this press release, including: macroeconomic
trends including changes in or sustained inflation, interest rate
volatility, or other events beyond our control on the overall
economy which may reduce demand for our products and services,
geopolitical events and conflicts, adverse impacts to our business
and those of our customers and suppliers, including due to supply
chain disruptions, component shortages, and associated logistics
expense increases; our limited operating history as a public
company; our ability as an organization to successfully acquire,
integrate or partner with other companies, products or technologies
in a successful manner; our dependence on widespread acceptance and
adoption of EVs, including auto manufacture's plans and strategies
to transition to predominately manufacture EV and any corresponding
increased demand for installation of charging stations; our current
dependence on sales of charging stations for most of our revenues;
overall demand for EV charging and the potential for reduced demand
for EVs if governmental rebates, tax credits and other financial
incentives are reduced, modified or eliminated or governmental
mandates to increase the use of EVs or decrease the use of vehicles
powered by fossil fuels, either directly or indirectly through
mandated limits on carbon emissions, are reduced, modified or
eliminated; our ability, and our reliance on our customers, to
successfully implement, construct and manage National Electric
Vehicle Infrastructure (NEVI) grant opportunities in accordance
with the respective terms of the NEVI program in order to validly
secure and obtain awarded funding and win additional NEVI grant
opportunities; our reliance on contract manufacturers, including
those located outside the United States, may result in supply chain
interruptions, delays and expense increases which may adversely
affect our sales, revenue and gross margins; our ability to expand
our operations and market share in Europe; the need to attract
additional fleet operators as customers; potential adverse effects
on our revenue and gross margins due to delays and costs associated
with new product introductions, inventory obsolescence, component
shortages and related expense increases; adverse impact to our
revenues and gross margins if customers increasingly claim clean
energy credits and, as a result, they are no longer available to be
claimed by us; the effects of competition; risks related to our
dependence on our intellectual property; and the risk that our
technology could have undetected defects or errors. Additional
risks and uncertainties that could affect our financial results are
included under the captions “Risk Factors” and “Management’s
Discussion and Analysis of Financial Condition and Results of
Operations” in our Form 10-Q filed with the Securities and Exchange
Commission (the “SEC”) on June 6, 2024, which is available on our
website at investors.chargepoint.com and on the SEC’s website at
www.sec.gov. Additional information will also be set forth in other
filings that we make with the SEC from time to time. All
forward-looking statements in this press release are based on
information available to us as of the date hereof, and we do not
assume any obligation to update the forward-looking statements
provided to reflect events that occur or circumstances that exist
after the date on which they were made, except as required by
applicable law.
Use of Non-GAAP Financial Measures
ChargePoint has provided financial information in this press
release that has not been prepared in accordance with generally
accepted accounting principles in the United States (“GAAP”).
ChargePoint uses these non-GAAP financial measures internally in
analyzing its financial results. ChargePoint believes that the use
of these non-GAAP financial measures is useful to investors to
evaluate ongoing operating results and trends and believes they
provide meaningful supplemental information to investors regarding
ChargePoint’s underlying operating performance because they exclude
items the Company believes are unrelated to, and may not be
indicative of, its core operating results.
The presentation of these non-GAAP financial measures is not
meant to be considered in isolation or as a substitute for
comparable GAAP financial measures and should be read only in
conjunction with ChargePoint’s consolidated financial statements
prepared in accordance with GAAP. A reconciliation of ChargePoint’s
historical non-GAAP financial measures to their most directly
comparable GAAP measures has been provided in the financial
statement tables included in this press release, and investors are
encouraged to review these reconciliations.
Non-GAAP Gross Profit (Gross Margin). ChargePoint defines
non-GAAP gross profit as gross profit excluding stock-based
compensation expense and amortization expense of acquired
intangible assets. Non-GAAP gross margin is non-GAAP gross profit
as a percentage of revenue.
Non-GAAP Cost of Revenue and Operating Expenses (includes
Non-GAAP research and development, Non-GAAP sales and marketing and
Non-GAAP general and administrative). ChargePoint defines non-GAAP
cost of revenue and operating expenses as cost of revenue and
operating expenses excluding stock-based compensation expense,
restructuring costs for severances and employment-related
termination costs, amortization expense of acquired intangible
assets, non-cash charges related to tax liabilities and litigation
settlements, including associated non-recurring legal expenses.
Non-GAAP Net Loss. ChargePoint defines non-GAAP net loss as net
loss excluding stock-based compensation expense, restructuring
costs for severances and employment-related termination costs,
amortization expense of acquired intangible assets, non-cash
charges related to tax liabilities and litigation settlements,
including associated non-recurring legal expenses. These amounts
reflect the impact of any related tax effects. Non-GAAP pre-tax net
loss is non-GAAP net loss adjusted for provision for income
taxes.
Non-GAAP Adjusted EBITDA Loss. ChargePoint defines non-GAAP
adjusted EBITDA loss as net loss excluding stock-based compensation
expense, restructuring costs for severances and employment-related
termination costs, amortization expense of acquired intangible
assets, non-cash charges related to tax liabilities and litigation
settlements, including associated non-recurring legal expenses, and
further adjusted for provision of income taxes, depreciation,
interest income and expense, and other income and expense
(net).
Investors are cautioned that there are a number of limitations
associated with the use of non-GAAP financial measures to analyze
financial results and trends. In particular, many of the
adjustments to ChargePoint’s GAAP financial measures reflect the
exclusion of items that are recurring and will be reflected in its
financial results for the foreseeable future, such as stock-based
compensation, which is an important part of ChargePoint’s
employees’ compensation and impacts hiring, retention and
performance. Furthermore, these non-GAAP financial measures are not
based on any standardized methodology prescribed by GAAP, and the
components that ChargePoint excludes in its calculation of non-GAAP
financial measures may differ from the components that other
companies exclude when they report their non-GAAP results. In the
future, ChargePoint may also exclude other expenses it determines
do not reflect the performance of ChargePoint’s operating
results.
CHPT-IR
ChargePoint Holdings,
Inc.
PRELIMINARY CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per
share amounts; unaudited)
Three Months Ended
July 31,
Six Months Ended
July 31,
2024
2023
2024
2023
Revenue
Networked charging systems
$
64,146
$
114,574
$
129,520
$
212,894
Subscriptions
36,191
30,011
69,636
56,376
Other
8,202
5,909
16,426
11,253
Total revenue
108,539
150,494
215,582
280,523
Cost of revenue
Networked charging systems
59,234
126,961
120,300
207,883
Subscriptions
18,558
18,692
36,300
33,497
Other
5,162
3,716
9,787
7,483
Total cost of revenue
82,954
149,369
166,387
248,863
Gross profit
25,585
1,125
49,195
31,660
Operating expenses
Research and development
36,510
59,642
72,562
109,039
Sales and marketing
36,699
39,671
71,698
76,711
General and administrative
15,122
25,144
34,819
49,164
Total operating expenses
88,331
124,457
179,079
234,914
Loss from operations
(62,746
)
(123,332
)
(129,884
)
(203,254
)
Interest income
2,118
1,840
5,326
4,300
Interest expense
(6,560
)
(2,926
)
(13,171
)
(5,853
)
Other income (expense), net
(38
)
68
(888
)
642
Net loss before income taxes
(67,226
)
(124,350
)
(138,617
)
(204,165
)
Provision for income taxes
1,648
905
2,056
478
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, basic
and diluted
427,532,688
355,876,807
425,434,765
353,008,473
ChargePoint Holdings,
Inc.
PRELIMINARY CONDENSED
CONSOLIDATED BALANCE SHEETS
(In thousands,
unaudited)
July 31, 2024
January 31, 2024
Assets
Current assets:
Cash and cash equivalents
$
243,263
$
327,410
Restricted cash
400
30,400
Accounts receivable, net
111,480
124,049
Inventories
228,519
198,580
Prepaid expenses and other current
assets
69,249
62,244
Total current assets
652,911
742,683
Property and equipment, net
39,306
42,446
Intangible assets, net
74,490
80,555
Operating lease right-of-use assets
15,604
15,362
Goodwill
213,757
213,750
Other assets
7,709
8,567
Total assets
$
1,003,777
$
1,103,363
Liabilities and Stockholders'
Equity
Current liabilities:
Accounts payable
$
71,441
$
71,081
Accrued and other current liabilities
146,679
159,104
Deferred revenue
102,863
99,968
Total current liabilities
320,983
330,153
Deferred revenue, noncurrent
135,690
131,471
Debt, noncurrent
285,675
283,704
Operating lease liabilities
17,102
17,350
Deferred tax liabilities
11,933
11,252
Other long-term liabilities
1,504
1,757
Total liabilities
772,887
775,687
Stockholders' equity:
Common stock
43
42
Additional paid-in capital
2,001,845
1,957,932
Accumulated other comprehensive loss
(15,953
)
(15,926
)
Accumulated deficit
(1,755,045
)
(1,614,372
)
Total stockholders' equity
230,890
327,676
Total liabilities and stockholders'
equity
$
1,003,777
$
1,103,363
ChargePoint Holdings,
Inc.
PRELIMINARY CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands,
unaudited)
Six Months Ended
July 31,
2024
2023
Cash flows from operating
activities
Net loss
$
(140,673
)
$
(204,643
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
14,896
14,018
Non-cash operating lease cost
1,863
2,199
Stock-based compensation
40,369
59,063
Amortization of deferred contract
acquisition costs
1,578
1,380
Inventory impairment
—
28,000
Reserves and other
12,683
5,026
Changes in operating assets and
liabilities:
Accounts receivable, net
7,636
(40,562
)
Inventories
(28,429
)
(97,906
)
Prepaid expenses and other assets
(8,160
)
(12,365
)
Accounts payable, operating lease
liabilities, and accrued and other liabilities
(22,624
)
33,957
Deferred revenue
7,155
21,231
Net cash used in operating activities
(113,706
)
(190,602
)
Cash flows from investing
activities
Purchases of property and equipment
(7,301
)
(9,877
)
Maturities of investments
—
105,000
Net cash provided by (used in) investing
activities
(7,301
)
95,123
Cash flows from financing
activities
Debt issuance costs related to the
revolving credit facility
—
(2,265
)
Proceeds from the issuance of common stock
under employee equity plans, net of tax withholding
4,548
6,212
Proceeds from issuance of common stock in
connection with ATM offerings, net of issuance costs
—
54,799
Change in driver funds and amounts due to
customers
2,378
8,839
Settlement of contingent earnout
liability
—
(3,537
)
Net cash provided by financing
activities
6,926
64,048
Effect of exchange rate changes on cash,
cash equivalents, and restricted cash
(66
)
768
Net decrease in cash, cash equivalents,
and restricted cash
(114,147
)
(30,663
)
Cash, cash equivalents, and restricted
cash at beginning of period
357,810
294,562
Cash, cash equivalents, and restricted
cash at end of period
$
243,663
$
263,899
ChargePoint Holdings,
Inc.
RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES
(In thousands,
unaudited)
Three
Months Ended
July 31, 2024
Three Months Ended
July 31, 2023
Six
Months Ended
July 31, 2024
Six
Months Ended
July 31, 2023
Cost of Revenue:
GAAP cost of revenue (as a percentage
of revenue)
$
82,954
76
%
$
149,369
99
%
$
166,387
77
%
$
248,863
89
%
Stock-based compensation expense
(1,526
)
(1,938
)
(2,610
)
(2,933
)
Amortization of intangible assets
(764
)
(766
)
(1,526
)
(1,532
)
Non-GAAP cost of revenue (as a
percentage of revenue)
$
80,664
74
%
$
146,665
97
%
$
162,251
75
%
$
244,398
87
%
Gross Profit:
GAAP gross profit (gross margin as a
percentage of revenue)
$
25,585
24
%
$
1,125
1
%
$
49,195
23
%
$
31,660
11
%
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 (gross margin as
a percentage of revenue)
$
27,875
26
%
$
3,829
3
%
$
53,331
25
%
$
36,125
13
%
Operating Expenses:
GAAP research and development (as a
percentage of revenue)
$
36,510
34
%
$
59,642
40
%
$
72,562
34
%
$
109,039
39
%
Stock-based compensation expense
(10,731
)
(15,847
)
(19,033
)
(25,353
)
Restructuring costs (1)
—
—
—
1
Non-GAAP research and development (as a
percentage of revenue)
$
25,779
24
%
$
43,795
29
%
$
53,529
25
%
$
83,687
30
%
GAAP sales and marketing (as a
percentage of revenue)
$
36,699
34
%
$
39,671
26
%
$
71,698
33
%
$
76,711
27
%
Stock-based compensation expense
(4,463
)
(6,757
)
(9,905
)
(10,926
)
Amortization of intangible assets
(2,264
)
(2,273
)
(4,525
)
(4,545
)
Restructuring costs (1)
—
—
—
1
Non-GAAP sales and marketing (as a
percentage of revenue)
$
29,972
28
%
$
30,641
20
%
$
57,268
27
%
$
61,241
22
%
GAAP general and administrative (as a
percentage of revenue)
$
15,122
14
%
$
25,144
17
%
$
34,819
16
%
$
49,164
18
%
Stock-based compensation expense
(2,049
)
(10,557
)
(8,820
)
(19,851
)
Other adjustments (2)
(2,392
)
(105
)
(4,001
)
(105
)
Non-GAAP general and administrative (as
a percentage of revenue)
$
10,681
10
%
$
14,482
10
%
$
21,998
10
%
$
29,208
10
%
GAAP Operating Expenses (as a
percentage of revenue)
$
88,331
81
%
$
124,457
83
%
$
179,079
83
%
$
234,914
84
%
Stock-based compensation expense
(17,243
)
(33,161
)
(37,758
)
(56,130
)
Amortization of intangible assets
(2,264
)
(2,273
)
(4,525
)
(4,545
)
Restructuring costs (1)
—
—
—
2
Other adjustments (2)
(2,392
)
(105
)
(4,001
)
(105
)
Non-GAAP Operating Expenses (as a
percentage of revenue)
$
66,432
61
%
$
88,918
59
%
$
132,795
62
%
$
174,136
62
%
Net Loss:
GAAP net loss (as a percentage of
revenue)
$
(68,874
)
(63
)%
$
(125,255
)
(83
)%
$
(140,673
)
(65
)%
$
(204,643
)
(73
)%
Stock-based compensation expense
18,769
35,099
40,368
59,063
Amortization of intangible assets
3,028
3,039
6,051
6,077
Restructuring costs (1)
—
—
—
(2
)
Other adjustments (2)
2,392
105
4,001
105
Non-GAAP net loss (as a percentage of
revenue)
$
(44,685
)
(41
)%
$
(87,012
)
(58
)%
$
(90,253
)
(42
)%
$
(139,400
)
(50
)%
Provision for income taxes
1,648
905
2,056
478
Non-GAAP pre-tax net loss (as a
percentage of revenue)
$
(43,037
)
(40
)%
$
(86,107
)
(57
)%
$
(88,197
)
(41
)%
$
(138,922
)
(50
)%
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 (as a
percentage of revenue)
$
(34,134
)
(31
)%
$
(81,164
)
(54
)%
$
(70,620
)
(33
)%
$
(130,070
)
(46
)%
(1)
Consists of restructuring costs for
severances and employment-related termination costs.
(2)
Consists of non-cash charges related to
tax liabilities and litigation settlements, including associated
non-recurring legal expenses.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240904051310/en/
Investor Relations Patrick
Hamer Vice President, Capital Markets and Investor Relations
Patrick.Hamer@chargepoint.com investors@chargepoint.com
Press John Paolo Canton Vice
President, Communications JP.Canton@chargepoint.com
AJ Gosselin Director, Corporate Communications
AJ.Gosselin@chargepoint.com media@chargepoint.com
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