CAMPBELL, CA - ChargePoint (NYSE:CHPT) Holdings Inc., a leading electric vehicle (EV) charging network, saw its shares plummet by more than 20% after reporting third-quarter revenue that fell significantly short of expectations. The company's preliminary sales figures for the quarter came in between $108 million and $113 million, a stark contrast to the anticipated $150 million to $165 million range and below analysts' estimates of $157 million.
The company ascribed the revenue shortfall to several factors, including macroeconomic headwinds and delays in product deliveries. These delays have adversely affected crucial partnerships with governments, automotive dealerships, and workplaces.
In tandem with the financial update, ChargePoint also announced major changes within its leadership team. Rick Wilmer has taken over as CEO, succeeding Pasquale Romano who has shifted into an advisory capacity. The position of CFO is now being filled on an interim basis by Mansi Khetani, following Rex Jackson's departure from the role.
Despite the disappointing sales performance, ChargePoint's financial health appears stable with $397 million in cash and cash equivalents as of October 31. This includes $232 million raised through share offerings. Additionally, the company has a $150 million revolving credit facility that remains untapped, and it does not face any debt maturities until 2028.
Investors and stakeholders can expect a more comprehensive report when ChargePoint releases its full results on December 6. At that time, the company will also revise its guidance for the annual and current-quarter earnings.
InvestingPro Insights
ChargePoint Holdings Inc., according to InvestingPro data, has a market cap of 1120M USD and operates with a negative P/E ratio of -2.97. Despite a turbulent financial period, the company experienced a 15.5% return over the last week. However, over the last six months, the stock has taken a significant hit, with a -62.42% return.
InvestingPro Tips indicate that while analysts anticipate sales growth in the current year, the company has been burning through cash quickly. The revenue growth has been slowing down recently and the company operates with a poor return on assets. It’s important to note that the company's stock generally trades with high price volatility, which can affect investment decisions.
InvestingPro offers 17 additional tips related to ChargePoint, which could be crucial for potential investors and current stockholders. These insights can aid in making informed decisions, especially during the company's current financial turbulence.
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