ChargePoint (CHPT) shares fell more than 15% in early trading on Thursday hit an all-time low as the provider of electric vehicle (EV) charging stations reported worse-than-expected results and announced a restructuring.
Points to remember
- ChargePoint has announced a restructuring as its quarterly results and guidance are lower than expected.
- The electric vehicle charging station provider will lay off around 10% of its workforce and carry out ;other cost reductions.
- ChargePoint shares fell to an all-time low on Thursday morning and are down around 40% this year.
ChargePoint posted a loss from the second quarter of fiscal 2025. share of 35 cents, widening from the same quarter in 2022 and about three times higher than analysts' forecasts. The company attributed the loss primarily to an inventory write-down charge on its first-generation direct current (DC) charging products.
Sales rose 39% to $150.5 million, but remained below analysts' estimates. The company's guidance for revenue of $150-165 million for the current quarter and revenue of $605-630 million for the entire year were also lower than forecast.
ChargePoint said that as part of its reorganization, it was reducing its workforce by about 10% and reducing non-staff costs. CEO Pasquale Romano said these measures are intended to “achieve higher operational efficiency as we scale, while reducing our operating expenses by approximately $30 million on an annualized basis.”
Romano said ChargePoint was faced with “a shaky economy” in the second quarter, but added that growing demand for electric vehicles “is putting utilization pressure on infrastructure and we believe that will translate into demand for our products.”
ChargePoint shares lost approx 40% of their value this year. By midday Thursday, the stock had rallied slightly, down 13% for the day. />
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