CAMPBELL, Calif. - ChargePoint (NYSE:CHPT) Holdings, Inc. (NYSE:CHPT), a leader in electric vehicle (EV) charging solutions, reported first-quarter earnings that narrowly surpassed analyst expectations, but provided a second-quarter revenue forecast that fell short of Wall Street estimates, sending its shares down 2.3%.
For the first quarter of fiscal 2025, which ended April 30, 2024, ChargePoint announced a loss per share of -$0.17, which was slightly better than the anticipated -$0.19 per share. Revenue for the quarter was reported at $107.04 million, edging above the consensus estimate of $105.84 million. However, the company's revenue marked an 18% decrease from the $130.0 million reported in the same quarter of the previous year.
ChargePoint's CEO, Rick Wilmer, commented on the company's performance, stating, "ChargePoint delivered as anticipated in the first quarter. We achieved revenue above the midpoint of our guidance range, sequential gross margin improvements, meaningful reduction in operating expenses, and an improvement in non-GAAP adjusted EBITDA loss." Wilmer highlighted the company's focus on operational excellence, aiming to provide exceptional driver experiences and establish ChargePoint as the preferred platform for EV charging.
Despite the positive note on earnings, the company's guidance for the second quarter of fiscal 2025 was less optimistic. ChargePoint expects revenue between $108 million and $118 million, which is below the analyst consensus of $121.4 million. This disappointing guidance is the driver behind the stock's downward movement post-announcement.
The company's subscription revenue showed a bright spot, posting a 27% increase year-over-year (YoY) to $33 million, indicating a growing demand for ChargePoint's networked charging solutions. Additionally, the firm reported a 10% improvement in GAAP net loss and a 25% improvement in non-GAAP Adjusted EBITDA loss compared to the previous year.
ChargePoint also reaffirmed its goal to achieve positive non-GAAP Adjusted EBITDA in the fourth quarter of fiscal year 2025, signaling confidence in its long-term financial health. As of April 30, 2024, ChargePoint's balance sheet remained robust with $292.3 million in cash, cash equivalents, and restricted cash, and no debt maturities until 2028.
Investors and analysts will be watching closely to see if ChargePoint can navigate the headwinds and meet its financial targets in the coming quarters.
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