ChargePoint Posts Q2 Revenue Beat and Raises Guidance; Shares Gain 13%

Shares of ChargePoint Holdings, Inc. (CHPT) jumped over 13% in Wednesday’s extended trading session after the company delivered impressive second-quarter results and raised its FY2021 revenue guidance well above analysts’ expectations.

With a current market capitalization of around $7 billion, shares of the electric vehicle (EV) infrastructure company have gained 107% over the past year.

Revenues jumped 61% year-over-year to $56.1 million and significantly exceeded consensus estimates of $48.9 million.

The increase in revenues reflected a surge in Networked Charging revenue, which increased 91% to $21.4 million, driven by robust growth in North America and Europe throughout the commercial, fleet, and residential areas. (See ChargePoint Holdings stock charts on TipRanks)

However, adjusted gross margin declined 260 bps to 23.1% due to lower regulatory credits, unfavorable product mix, and higher supply chain costs, partially offsetting product cost improvements.

The company reported a net loss of $0.29 per share, a huge improvement from the loss of $6.97 per share recorded in the prior-year period.

ChargePoint CEO Pasquale Romano commented, “We achieved record revenue, significantly grew our commercial, fleet and residential businesses, launched a charging integration with Mercedes, announced our agreement to acquire e-mobility technology provider has to be and acquired eBus and commercial vehicle management provider ViriCiti.”

ChargePoint Raised Fiscal 2022 Revenues Guidance by 15%

Looking forward, the company raised its Fiscal 2022 revenue guidance. The company forecasts revenue in the range of $225 – $235 million, while the consensus estimate is pegged at $205 million. This implies a 15% increase from the previous guidance range of $195 – $205 million.

For the third quarter, revenues are projected to be in the range of $60 – $65 million.

Ahead of the Q2 results, Jefferies analyst David Kelley reiterated a Buy rating and a price target of $40 (88.4% upside potential).

Kelley is optimistic about ChargePoint Holdings based on significant long-term momentum & execution indicators despite the current supply chain & COVID-19 related headwinds.

Overall, the stock has a Strong Buy consensus rating based on 7 Buys and 1 Hold. The average ChargePoint Holdings price target of $35.75 implies 68.4% upside potential from current levels.