Chargepoint Holdings Inc. (CHPT), a leading electric vehicle (EV) charging network, reported fourth-quarter earnings that met analysts' expectations but saw its shares tumble 3.75% due to a revenue shortfall. The company recorded a non-GAAP EPS of -$0.23, aligning with the consensus estimate. However, revenue for the quarter was $115.8 million, falling short of the anticipated $118.55 million.
In comparison to the same quarter last year, ChargePoint (NYSE:CHPT)'s revenue decreased by 24%, with networked charging systems revenue experiencing a 39% drop. Despite these declines, subscription revenue showed resilience, climbing 30% YoY. The company's GAAP gross margin also contracted to 19% from 22% YoY, while adjusted gross margin slightly dipped to 22% from 23%.
CEO Rick Wilmer attributed the quarter's performance to strategic focuses on operational execution, gross margin normalization, and a significant reduction in cash usage. Wilmer also emphasized the company's commitment to innovation and operational excellence as drivers for future growth.
Looking forward, ChargePoint anticipates revenue between $100 million and $110 million for the first quarter of fiscal year 2025. This guidance midpoint suggests a 19% decline compared to the same quarter of the previous year. Additionally, the company reaffirmed its target to achieve positive adjusted EBITDA by the fourth quarter of fiscal year 2025.
The market's negative response to the revenue miss reflects concerns over the company's near-term growth prospects. ChargePoint's full fiscal year 2024 revenue grew by 8% to $506.6 million, but the overall net loss widened, and gross margins shrank across the board. The company's liquidity remains strong, with $357.8 million in cash and cash equivalents and an untouched $150 million credit facility, providing a buffer as it navigates the current fiscal year.
ChargePoint's stock movement post-earnings indicates investor wariness, as the revenue miss overshadowed the EPS match. As the EV market continues to expand, ChargePoint's strategic positioning and government contract eligibility may prove pivotal in its long-term trajectory.
Following the earnings report, analysts at Goldman Sachs noted ChargePoint reiterated its target of achieving positive non-GAAP EBITDA in 4QFY25. "We believe the ability to meet, and path to achieving, this target will be a key focus on the call," wrote the firm, maintaining a Neutral rating and $2 price target on the stock.