ChargePoint Holdings Inc (CHPT, Financial), a leading provider of networked electric vehicle (EV) charging solutions, reported its second quarter fiscal 2025 financial results, revealing a mixed performance. The company designs, develops, and markets networked EV charging systems and cloud-based services, primarily deriving its revenue from the United States.
Performance Overview
ChargePoint Holdings Inc (CHPT, Financial) reported a revenue of $108.5 million for Q2 FY2025, a 28% decline from $150.5 million in the same quarter last year, missing the analyst estimate of $113.60 million. The company's networked charging systems revenue fell by 44% to $64.1 million, while subscription revenue increased by 21% to $36.2 million.
Financial Achievements and Challenges
Despite the revenue shortfall, ChargePoint Holdings Inc (CHPT, Financial) achieved significant improvements in its gross margins. The GAAP gross margin rose to 24% from 1% in the prior year's same quarter, and the non-GAAP gross margin increased to 26% from 3%. This improvement was primarily due to a $28.0 million inventory impairment charge taken in the prior year.
Operating expenses also saw a reduction, with GAAP operating expenses down 29% to $88.3 million and non-GAAP operating expenses down 25% to $66.4 million. The company reported a GAAP net loss of $68.9 million, a 45% improvement from the $125.3 million loss in the prior year's same quarter. Non-GAAP pre-tax net loss was $43.0 million, down 50% from $86.1 million.
Key Financial Metrics
| Metric | Q2 FY2025 | Q2 FY2024 |
|---|---|---|
| Revenue | $108.5 million | $150.5 million |
| GAAP Gross Margin | 24% | 1% |
| Non-GAAP Gross Margin | 26% | 3% |
| GAAP Operating Expenses | $88.3 million | $124.5 million |
| Non-GAAP Operating Expenses | $66.4 million | $88.9 million |
| GAAP Net Loss | $68.9 million | $125.3 million |
| Non-GAAP Pre-Tax Net Loss | $43.0 million | $86.1 million |
Liquidity and Reorganization
As of July 31, 2024, ChargePoint Holdings Inc (CHPT, Financial) had cash and cash equivalents of $243.7 million. The company also announced a reorganization plan, including a 15% reduction in its global workforce, expected to save approximately $41 million in annualized GAAP operating expenses and $38 million in non-GAAP operating expenses.
Future Outlook
ChargePoint Holdings Inc (CHPT, Financial) provided guidance for the third quarter of fiscal 2025, expecting revenue between $85 million and $95 million. The company aims to return to growth and streamline operations to achieve positive non-GAAP Adjusted EBITDA by fiscal year 2026.
For more detailed insights and the full financial report, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from ChargePoint Holdings Inc for further details.
