ChargePoint Holdings Inc (CHPT) shares took a hit on Thursday after the company released its second-quarter financial results, which fell short of analysts’ expectations. The electric vehicle charging company’s revenue for the quarter reached $109 million, falling below the anticipated $113.6 million. The earnings per share (EPS) came in at a loss of 16 cents, aligning with estimates.
The decline in ChargePoint’s top-line revenue was notable, with a 28% year-over-year decrease. This decline was largely driven by a 44% year-over-year drop in Network charging systems revenue, which reached $64.1 million. However, the company did experience growth in its subscription revenue, which climbed 21% to $36.2 million during the quarter.
In response to the challenging financial landscape, ChargePoint announced a significant restructuring of its operations. The company plans to reduce its workforce by 15%, expecting this move to generate annualized cost savings of roughly $41 million. The restructuring is anticipated to incur approximately $10 million in costs.
Despite the setbacks, ChargePoint’s CEO, Rick Wilmer, expressed confidence in the company’s strategic direction. He stated that ChargePoint continues to execute its strategic plan and deliver results in line with its goals. He highlighted the sequential improvement in gross margin for the third consecutive quarter. Wilmer emphasized the company’s focus on delivering new software and hardware solutions to facilitate the transition to electric vehicles.
Looking ahead, ChargePoint anticipates third-quarter revenue to fall within the range of $85 million to $95 million. The company also outlined its ambition to achieve positive non-GAAP adjusted EBITDA by fiscal year 2026.
Following the release of ChargePoint’s quarterly results, Needham analyst Chris Pierce maintained a Buy rating for the company but adjusted the price target downward from $3 to $2.
On Thursday morning, ChargePoint shares experienced a significant decline, falling 14.8% to $1.44, according to Benzinga Pro.
