ChargePoint Books Wider-than-Expected Q3 Loss; Shares Drop After-Hours

ChargePoint Holdings, Inc. (NYSE: CHPT), an American electric vehicle infrastructure company, has reported a larger-than-expected loss in the third quarter of Fiscal 2022. Meanwhile, net revenues surpassed analysts’ expectations.

Following the results, shares of the company lost 2.7% in the extended trading session on Tuesday after closing 5% higher on the day.

Results in Detail

ChargePoint incurred a loss of $0.14 per share, higher than the Street’s loss estimate of $0.13 per share. The company reported a loss of $2.17 per share in the same quarter last year.

Total revenues generated during the quarter grew 79% year-over-year and stood at $65 million, topping the consensus estimate of $63.17 million. Significant revenue growth in North America and Europe across ChargePoint’s commercial, fleet, and residential verticals, drove the results.

Segment-wise, Networked charging revenue was $47.5 million, up 111% year-over-year, while Subscription revenue grew 24% to $13.4 million.

Adjusted gross margin came in at 27%, up from 20% recorded in the prior-year quarter. (See: ChargePoint stock charts)

As of October 31, the company had about 163,000 activated ports, including 45,000 in Europe.

CEO Comments

In response to third-quarter results, CEO of ChargePoint, Pasquale Romano, said, “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.”

Guidance

For the fourth quarter of Fiscal 2022, the company projects revenue in the range of $73 million to $78 million.

For Fiscal 2022, the company expects revised revenue of $235 million to $240 million, versus the consensus estimate of $238 million.

Wall Street’s Take

The Street is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on 4 Buys and 5 Holds. The average ChargePoint price target of $29 implies 33.15% upside potential from current levels. Shares have fallen 43.5% over the past year.

Risk Analysis

According to the new TipRanks Risk Factors tool, ChargePoint stock is at risk mainly from three factors: Finance and Corporate, Legal and Regulatory, and Tech and Innovation, which contribute 56%, 13%, and 12%, respectively, to the total 94 risks identified for the stock.