ChargePoint Faced 'Challenging Macroeconomic Conditions And Execution Challenges' In Q3: What You Need To Know
Portfolio Pulse from Adam Eckert
ChargePoint Holdings Inc (NYSE:CHPT) reported a 12% year-over-year decrease in Q3 revenue to $110.3 million, missing consensus estimates. The company experienced a larger loss per share of 43 cents compared to 25 cents in the previous year. Networked charging systems revenue fell 24%, while subscription revenue increased 41%. Gross margin turned negative at -22%. ChargePoint ended the quarter with $397.4 million in cash and equivalents. Despite the challenges, the company reaffirmed its goal for positive adjusted EBITDA by Q4 of fiscal 2025. CHPT shares have fallen 25% over the last month, with a slight increase of 0.98% after hours to $2.06.
December 06, 2023 | 9:25 pm
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NEGATIVE IMPACT
ChargePoint's Q3 earnings report showed a revenue decline and increased losses, with a negative gross margin. The company remains optimistic about future EBITDA and has a strong cash position.
The negative earnings report, with missed revenue expectations and increased losses, is likely to impact investor sentiment negatively in the short term. The reaffirmation of future EBITDA goals and a strong cash position may provide some support, but the immediate reaction is likely to be negative given the recent 25% decline in share price.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100