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Jul 31, 2023

ChargePoint Q2 2024 Earnings Report

ChargePoint experienced revenue growth and addressed supply chain issues.

Key Takeaways

ChargePoint reported a 39% year-over-year revenue increase to $150.5 million for Q2 2024. The company took an inventory impairment charge to address supply chain issues and is implementing cost-saving measures. They also reaffirmed their plan to achieve positive Non-GAAP Adjusted EBITDA in Q4 of calendar year 2024.

Second quarter revenue reached $150 million, a 39% increase year-over-year.

GAAP gross margin was 1%, and non-GAAP gross margin was 3%, impacted by an inventory impairment charge.

The company is reducing operating expenses by an estimated $30 million annually.

Revenue guidance for the third quarter is $150 - $165 million, and annual revenue guidance is $605 - $630 million.

Total Revenue
$150M
Previous year: $108M
+39.0%
EPS
-$0.24
Previous year: -$0.18
+33.3%
GAAP Gross Margin
1%
Previous year: 17%
-94.1%
Non-GAAP Gross Margin
3%
Previous year: 19%
-84.2%
Gross Profit
$1.13M
Previous year: $18.2M
-93.8%
Cash and Equivalents
$233M
Previous year: $188M
+24.4%
Free Cash Flow
-$90.4M
Previous year: -$68.5M
+31.9%
Total Assets
$1.07B
Previous year: $1.05B
+2.1%

ChargePoint

ChargePoint

ChargePoint Revenue by Segment

Forward Guidance

ChargePoint anticipates revenue between $150 million and $165 million for the third fiscal quarter and between $605 million and $630 million for the full fiscal year.

Positive Outlook

  • Revenue of $150 million to $165 million for the third fiscal quarter ending October 31, 2023.
  • Anticipated revenue increase of 26% compared to the prior year at the midpoint.
  • Non-GAAP gross margin of 22 to 25% for the third fiscal quarter.
  • Non-GAAP operating expenses of $81 million to $84 million for the third fiscal quarter.
  • Revenue of $605 million to $630 million for the full fiscal year ending January 31, 2024.

Challenges Ahead

  • Uncertainty regarding stock-based compensation expense.
  • Uncertainty regarding amortization expense of acquired intangible assets.
  • Uncertainty regarding professional services fees associated with acquisitions and registration filings.
  • Uncertainty regarding non-cash charges related to tax liabilities.
  • Uncertainty regarding non-recurring restructuring costs.

Revenue & Expenses

Visualization of income flow from segment revenue to net income