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ChargePoint Boosts Network Charging Revenue by 106%
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ChargePoint Holdings Inc. shares traded 14% higher after the company reported Q2/23 financial results that included a 93% YoY increase in revenue. The firm posted the first $100 million sales quarter in its history and affirmed its FY/23 revenue guidance for total revenues of $450-$500 million.

After U.S. markets closed yesterday afternoon, electric vehicle charging network company ChargePoint Holdings Inc. (CHPT:NYSE) announced financial results for its second quarter of 2023 ended July 31, 2022.

The company's President and CEO, Pasquale Romano, stated, "ChargePoint delivered another strong quarter, with continued growth across all verticals and geographies…We continue to execute on our strategy, as demand continues to grow for our portfolio of industry-leading charging solutions for every vertical and in both North America and Europe."

ChargePoint Holdings reported that revenue in Q2/23 exceeded the top-end of its prior guidance, increasing by 93% to $108.3 million, compared to $56.1 million in Q2/22. The firm advised that during the latest quarter, revenue from its networked charging systems rose by 106% year-over-year to $84.1 million and subscription revenue increased by 68% y-o-y to $20.2 million. The company highlighted that this was the first quarter it has generated in excess of $100 million in revenue since the firm was established in 2007.

The firm explained that its GAAP gross margin in Q2/23 decreased to 17%, down from 19% in Q2/22, which it attributed to some supply chain disruptions. The company commented that the disruptions affected its cost and supply availability resulting in increased new product introduction and transition costs.

The company reported that for Q2/23, it posted a GAAP net loss of $92.7 million, or a net loss of $0.28 per diluted share, versus a GAAP net loss of $84.9 million, or a net loss of $0.29 per diluted share in Q2/22.

The firm added that for Q2/23, it registered a non-GAAP pre-tax net loss of $62.3 million, which excluded stock-based compensation and amortization expenses, compared to a non-GAAP pre-tax net loss of $40.3 million during Q2/22.

The company noted that as of the end of Q2/23, it held $471.9 million in cash and liquid assets on its balance sheet.

ChargePoint offered some forward guidance and stated that for Q3/23, it expects revenues to be in the range of $125 million to $135 million. The firm noted that the midpoint of this range ($130 million) represents a 100% increase over revenues posted during Q3/22.

The company indicated that for FY/23, it is maintaining its estimates for revenues of $450-$500 million and noted similarly that the midpoint of the range ($475 million) equates to an anticipated 96% increase versus revenues posted in FY/22. ChargePoint added that for FY/23, it estimates it will have a non-GAAP gross margin of 22-26%.

ChargePoint is working to build out an electric fueling network to meet the growing need to move people and goods via electricity in North America and Europe. The company is headquartered in Campbell, Calif., and claims to operate one of the largest comprehensive EV charging networks. The firm's clients include commercial, fleet, and residential customers. The company's network is capable of fueling all types of vehicles, from passenger vehicles to delivery vans to buses, and covers everything from home and multifamily housing units to business workplaces, parking lots, hotels, and retail and commercial transport fleets. The company offers a cloud subscription program that allows users to charge their vehicles at hundreds of thousands of locations. ChargePoint stated that since it commenced operations, it has facilitated the delivery of greater than 123 million charging sessions.

ChargePoint started the day with a market cap of around $4.88 billion, with approximately 336.96 million shares outstanding. CHPT shares opened nearly 4% higher today at $15.02 (+$0.53, +3.66%) over yesterday's $14.49 closing price. The stock has traded today between $15.02 and $16.94 per share and is currently trading at $16.51 (+$2.02, +13.94%).

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