ChargePoint Holdings Inc (CHPT), a leading provider of electric vehicle charging solutions, reported its second-quarter financial results on Wednesday, revealing a revenue miss and a strategic restructuring plan.
The company’s revenue for the quarter reached $109 million, falling short of the consensus estimate of $113.6 million. This represents a 28% decline year-over-year. While the company reported a quarterly loss of 16 cents per share, aligning with analyst expectations, the revenue miss sparked concerns among investors.
The breakdown of revenue showed a significant drop in network charging systems revenue, which fell 44% year-over-year to $64.1 million. However, subscription revenue saw a positive trend, increasing 21% to $36.2 million. ChargePoint ended the quarter with a healthy cash position of $243.7 million.
In response to the challenging market conditions, ChargePoint announced a comprehensive reorganization of its operations. This includes a 15% workforce reduction, targeting an estimated $41 million in annualized cost savings. The company expects to incur approximately $10 million in restructuring costs.
Despite the setbacks, ChargePoint remains optimistic about its long-term prospects. The company’s CEO, Rick Wilmer, stated, “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.” He emphasized the company’s commitment to developing innovative software and hardware solutions that facilitate the transition to electric vehicles.
Looking ahead, ChargePoint anticipates third-quarter revenue to range between $85 million and $95 million. Moreover, the company has set a target of achieving positive non-GAAP adjusted EBITDA by fiscal year 2026. These developments will be further discussed during a conference call scheduled for 4:30 p.m. ET.
ChargePoint’s stock experienced a significant decline in after-hours trading on Wednesday, dropping 8.28% to $1.55 per share. The restructuring announcement and the revenue miss weighed heavily on investor sentiment.
