ChargePoint 3Q Falls ‘Far Short’ of Expectations, Exec Leadership Changes

CAMPBELL, Calif. – ChargePoint (NYSE:CHPT) (“ChargePoint” or the “Company”), a provider of networked solutions for charging electric vehicles (EVs), has announced certain preliminary third quarter financial results for fiscal year 2024. The Company will report its full third-quarter financial results and update full-year revenue and fourth-quarter fiscal 2024 guidance on an investor conference call to be held on Wednesday, December 6, 2023 at 1:30 p.m. PST (4:30 p.m. EST).

As announced separately and effective today, ChargePoint has appointed Rick Wilmer as President and Chief Executive Officer and named Mansi Khetani as Interim Chief Financial Officer.

“Our core markets of North America and Europe both came under pressure late in the third quarter, with revenue falling far short of expectations. Overall macroeconomic conditions, along with fleet and commercial vehicle delivery delays impacted anticipated deployments with government, auto dealership and workplace customers.” said Rick Wilmer, President and CEO of ChargePoint.

Over the past 18 months in his prior role as Chief Operating Officer, Wilmer has completed a thorough analysis of ChargePoint’s supply chain, manufacturing partnerships and inventory management approach. “The ChargePoint board and I are committed to significantly improving operational execution to ensure that the Company is building a stronger, more resilient business for the benefit of all stakeholders. Our first steps are to take an additional non-cash inventory impairment charge related to product transitions and to better align inventory with current demand. We remain committed to our goal of generating positive adjusted EBITDA in the fourth quarter of calendar 2024,” said Wilmer.

Preliminary Third Quarter Fiscal Year 2024 Financial Performance

• Revenue of $108 to $113 million, as compared to $150 to $165 million as previously expected.
• ChargePoint expects to take a non-cash impairment charge of $42 million resulting in GAAP gross margin of negative 23% to negative 21% and non-GAAP gross margin of negative 19% to negative 17%.
• Pre-impairment non-GAAP gross margin of 19% to 21%, as compared to 22% to 25% as previously expected.
• ChargePoint expects GAAP operating expenses of $129 million to $131 million. Non-GAAP operating expenses of $80 million to $82 million, as compared to $81 million to $84 million as previously expected.
• As of October 31, 2023, cash, cash equivalents and restricted cash was approximately $397 million, which includes $232 million of at-the-market share offering gross proceeds, as previously announced on October 11, 2023.
• As of October 31, 2023, ChargePoint’s $150 million revolving credit facility remains undrawn, and the Company has no drawn debt maturities until 2028.

The preliminary results for the third quarter fiscal year 2024 ended October 31, 2023 are an estimate, based on information available to management as of the date of this release and are subject to further changes upon completion of ChargePoint’s standard quarter end closing procedures. This update does not present all information necessary for an understanding of ChargePoint’s financial condition as of the date of this release, or its results of operations for the third quarter fiscal year 2024 ended October 31, 2023. As ChargePoint completes its quarter-end financial close process and finalizes its financial statements for the quarter, it will be required to make significant judgments in a number of areas. It is possible that ChargePoint may identify items that require it to make adjustments to the preliminary financial information set forth above, and those changes could be material.