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Oct 31, 2022

ChargePoint Q3 2023 Earnings Report

ChargePoint delivered growth exceeding 90% year-over-year and scaled the business to meet strong demand.

Key Takeaways

ChargePoint reported a strong third quarter with revenue of $125.3 million, representing 93% year-over-year growth. The company's GAAP and Non-GAAP gross margin both improved 1 percentage point quarter-over-quarter. ChargePoint is guiding to fourth quarter revenue of $160-$170 million and revised full-year revenue guidance upward to $475 million to $485 million.

Third quarter fiscal 2023 revenue of $125 million representing 93% year-over-year growth

GAAP and Non-GAAP gross margin both improved 1 percentage point quarter-over-quarter

ChargePoint guides to fourth quarter fiscal 2023 revenue of $160-$170 million

Full-year revenue guidance range revised upward $5 million from previous midpoint to $475 million to $485 million

Total Revenue
$125M
Previous year: $65M
+92.7%
EPS
-$0.16
Previous year: -$0.14
+14.3%
GAAP Gross Margin
18%
Previous year: 25%
-28.0%
Non-GAAP Gross Margin
20%
Previous year: 27%
-25.9%
Gross Profit
$22.7M
Previous year: $16.1M
+41.3%
Cash and Equivalents
$188M
Previous year: $365M
-48.5%
Free Cash Flow
-$88.2M
Previous year: -$52.2M
+69.2%
Total Assets
$1B
Previous year: $901M
+11.0%

ChargePoint

ChargePoint

ChargePoint Revenue by Segment

Forward Guidance

For the fourth fiscal quarter ending January 31, 2023, ChargePoint expects revenue of $160 million to $170 million, representing an anticipated increase of 108% compared to the prior year’s same quarter. They also anticipate a sequential Non-GAAP gross margin improvement from the third quarter's 20%. For the full fiscal year ending January 31, 2023, ChargePoint expects revenue of $475 million to $485 million and Non-GAAP operating expenses of $325 million to $335 million.

Positive Outlook

  • Revenue of $160 million to $170 million in Q4, representing an anticipated increase of 108% compared to the prior year’s same quarter
  • Sequential Non-GAAP gross margin improvement from the third quarter's 20%
  • Revenue of $475 million to $485 million for the full fiscal year
  • Non-GAAP operating expenses of $325 million to $335 million for the full fiscal year
  • Anticipated decrease of $30 million in Non-GAAP operating expenses compared to previous guidance at midpoint

Challenges Ahead

  • Annual gross margin below previous guidance
  • Impact of the ongoing COVID-19 pandemic
  • Geopolitical events including the Russian invasion of Ukraine
  • Macroeconomic trends including changes in inflation or interest rates
  • Supply chain disruptions, component shortages and expense increases

Revenue & Expenses

Visualization of income flow from segment revenue to net income