ChargePoint Stock (CHPT): Why The Price Fell Today

By Amit Chowdhry ● Dec 8, 2021
  • The stock price of ChargePoint Holdings Inc (NYSE: CHPT) fell by 3.67% today. This is why it happened.

The stock price of ChargePoint Holdings Inc (NYSE: CHPT) fell by 3.67% today. Investors are responding negatively to ChargePoint’s results for its third quarter of fiscal 2022 ended October 31, 2021 (Note: The quarterly loss of $69.4 million was wider than the year-earlier loss of $40.9 million).

KEY QUOTE:

“ChargePoint has delivered another strong quarter, as we have continued to scale our commercial, fleet, and residential verticals across two continents. The investments we have made over many years have enabled us to capture charging demand from customers preparing for an electric future. This quarter we added more customers at an accelerated rate, while also successfully closing two acquisitions.”

— Pasquale Romano, President and CEO of ChargePoint

Q3 Fiscal 2022 Financial Overview

— For the third quarter, revenue was $65 million, an increase of 79% from $36.4 million in the prior year’s same quarter. And networked charging revenue for the third quarter was $47.5 million, an increase of 111% from $22.6 million, and subscription revenue was $13.4 million, up 24% from $10.8 million in the prior year’s same quarter. The revenue growth was significant in North America and Europe across ChargePoint’s commercial, fleet, and residential verticals.

— Third-quarter GAAP gross margin was 25%, up from 20% in the prior year’s same quarter primarily as a result of product cost improvements and the impact of acquisitions. The third-quarter non-GAAP gross margin — which primarily excludes stock-based compensation expense and amortization from acquired intangible assets, was 27% compared to 20% in the prior year’s same quarter.

— The third-quarter GAAP net loss was $69.4 million, which included a $2.4 million loss from the change in fair value of warrant liabilities and $16.0 million in stock-based compensation expense. And non-GAAP pre-tax net loss, which excludes stock-based compensation expense and other items, in the third quarter was $47.3 million as compared to $32.5 million in the prior year’s same quarter.

— As of October 31, 2021, cash on the balance sheet was $365.9 million following approximately $210 million of cash payments for both acquisitions.

— As of October 31, 2021, there were approximately 331 million shares of common stock outstanding.

Q4 and Full-Year Guidance

— ChargePoint expects revenue of $73 – $78 million for its fourth-quarter ending January 31, 2022, and is raising its full-year revenue outlook to $235 – $240 million, from $225 – $235 million, for the fiscal year ending January 31, 2022.

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.