Shares of ChargePoint Holdings Inc. experienced a significant decline of over 20% in the extended trading session on Thursday. The electric vehicle (EV) charging company attributed this decline to the departure of its top executive and the underperformance of its third-quarter sales.
Missed Expectations and Revenue Decline
ChargePoint stated that its revenue in the core markets of North America and Europe fell short of expectations during the latter part of the third quarter. As a result, the company now anticipates third-quarter revenue to be between $108 million and $113 million. This is notably lower than their previous projection of $150 million to $165 million. Analysts surveyed by FactSet expect revenue for the quarter to be around $157 million.
Factors Impacting Revenue
The newly appointed Chief Executive, Rick Wilmer, commented on the challenges faced by ChargePoint. He highlighted that overall macroeconomic conditions, along with delays in fleet and commercial vehicle deliveries, have affected the company’s business with government, auto dealership, and workplace customers.
As of October 31, ChargePoint reported having approximately $397 million in cash and equivalents, including $232 million from a share offering. The company also clarified that it has an undrawn credit facility of $150 million with no debt maturities until 2028.
Following the CEO’s departure, ChargePoint named Rick Wilmer as its new Chief Executive Officer. To ensure a smooth transition, outgoing CEO Pasquale Romano will remain as an advisor. Regarding the Chief Financial Officer position, Mansi Khetani has been appointed as the interim CFO. The company plans to initiate a search for a permanent executive to fill the role.
ChargePoint plans to release its full results and provide an update on its guidance for the year and current quarter on December 6. It remains to be seen how the company will address the challenges it has faced and regain its positive momentum.
Despite the recent setbacks, shares of ChargePoint have experienced a decline of more than 67% year-to-date, whereas the S&P 500 index has achieved gains of approximately 17%.