ChargePoint Holdings Inc (NYSE:CHPT) shares are trading lower Thursday after the company reported worse-than-expected financial results. Analysts are turning incrementally more negative following the print.
What To Know: Chargepoint said second-quarter revenue increased 39% year-over-year to $150.5 million, which missed the consensus estimate of $153.24 million, according to Benzinga Pro. The company reported a quarterly loss of 35 cents per share, which may not compare to estimates.
Network charging systems revenue climbed 36% in the quarter to $114.6 million. Subscription revenue increased 48% to $30 million. ChargePoint said it ended the quarter with $263.9 million in cash.
The company also announced a reorganization of its operations, which includes a 10% workforce reduction, expected to result in annual operating expense savings of $30 million.
“We took an inventory impairment charge to address a significant supply-chain related issue, and we announced an estimated $30 million in annualized operating expense savings from reorganizing the business for agility, efficiency and scale. We remain committed to delivering on our goal of generating positive non-GAAP adjusted EBITDA by the end of calendar 2024,” said Pasquale Romano, president and CEO of ChargePoint.
ChargePoint sees third-quarter revenue of $150 million to $165 million. Full-year revenue is expected to be between $605 million and $630 million.
Following the company’s quarterly results, Needham analyst Chris Pierce maintained ChargePoint with a Buy rating, but lowered the price target from $13 to $9. Fox Advisors analyst Steven Fox also downgraded the stock from Overweight to Equal-Weight.
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CHPT Price Action: ChargePoint shares were down 16.1% at $5.92 at the time of publication, according to Benzinga Pro.
Photo: Tony Webster from Flickr.
