![]() Despite being the AC-charging leader in the US, ChargePoint remains a nascent player in the fast-charging market dominated by Tesla ( TSLA). Moreover, the company's adjusted operating expenses ratio is expected to fall further through the end of the fiscal year (FY24) as it reins in spending.ĭespite that, I assessed that management hasn't provided sufficient confidence that ChargePoint can scale sustainably despite its optimistic outlook on the growth of EVs in the US and Europe. ![]() The company highlighted that the impairment headwinds aren't expected to be structural, as it guided toward a fiscal third-quarter midpoint adjusted gross margin of 23.5%. Pre-earnings analysts' estimates align with the company's outlook, expecting ChargePoint to deliver adjusted EBITDA profitability in FY26 (calendar year ending January 2026). Accordingly, ChargePoint reaffirmed its guidance in achieving adjusted EBITDA profitability exiting CY24. On a GAAP basis, gross margin was 1% for FQ2, although excluding the impairment charges, it would have been closer to 25%, in line with what the company reported in FQ1.ĬhargePoint attributed the impairment charges to "legacy supply chain-related costs and supply overruns on a specific DC product." In addition, the company also reflected an additional " 3 points of headwind in gross margin resulting from selling this first-generation product at the pre-impairment cost structure."Īt this point, questions must be asked about whether investors have confidence in the company's guidance in committing to its CY24 profitability goals. ![]() As such, ChargePoint reported an adjusted gross margin of 3%, way below last year's 19% metric. ChargePoint's Q2 performance was impacted by a significant inventory impairment charge, taking a toll on its gross margin. It also delivered an adjusted EBITDA of -$81.2M, much worse than analysts' projections of -$43.5M. Moreover, CHPT's "C+" valuation grade by Seeking Alpha Quant suggests no valuation dislocation relative to its peers, bolstering potentially aggressive dip-buying.ĬhargePoint posted revenue of $150M in Q2, up 39% YoY, lower than analysts' estimates of a 41% uptick. The company's disappointing Q2 scorecard and forward outlook gave little reason for buyers to return aggressively. However, the downward pressure on CHPT shouldn't be surprising, as it remains firmly in a medium- and long-term downtrend. As such, sellers forced CHPT below its August 2023 lows, taking out a new level as buyers fled. ( NYSE: CHPT) stock hit another low after-market as it posted its fiscal second-quarter or FQ2'24 earnings release. In addition, the Company offers a range of Assure, as well as its ChargePoint as a Service program that bundles the use of its owned and operated systems with Cloud Services, Assure, and other benefits into one subscription.Jetcityimage/iStock Editorial via Getty Images ChargePoint Q2 Earnings ResultsĬhargePoint Holdings, Inc. Its networked charging systems, subscriptions and other offerings provide an open platform that integrates with system hardware from it and other manufacturers, connecting systems over an intelligent network that provides real-time information about charging sessions. The firm sells networked charging hardware, connected through cloud-based software services (Cloud Services) and extended parts and labor warranty solutions (Assure) to customers to enable charging system owners, or hosts, to manage their networked charging systems, and enable drivers to locate, reserve and authenticate networked charging systems, and to transact EV charging sessions on those systems. ![]() The company is headquartered in Campbell, California and currently employs 1,650 full-time employees. operates as an electric vehicle charging network provider.
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