ChargePoint Shares Surge Higher on Q2 Earnings and Raised FY Revenue Outlook

Source: Streetwise Reports   09/02/2021

ChargePoint Holdings Inc. shares powered 8.25% higher after the firm reported a 61% increase in Q2/22 YoY revenue and raised its FY/22 revenue guidance by 15% to $225-235 million.

After U.S. markets closed for trading yesterday, electric vehicle charging network company ChargePoint Holdings Inc. (CHPT:NYSE) announced financial results for its second quarter of 2022 ended July 31, 2021.

The company’s President and CEO Pasquale Romano commented, “ChargePoint’s strong second quarter results demonstrate our continued growth and leadership in the electric revolution…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 Holdings reported that revenue in Q2/22 increased by 61% to $56.1 million, compared to $35.0 million in Q2/21. The firm noted that networked charging revenue rose to $40.9 million in Q2/22, which represented a 91% increase over the $21.4 million recorded in Q2/21.

The company advised that revenue growth was significant across commercial, fleet, and residential verticals in both North America and Europe. ChargePoint stated that commercial customers of all types are currently upping their investments in charging for their customers, employees, and visitors and noted that EV vehicle adoption has accelerated demand for residential use applications as well.

ChargePoint highlighted that as of July 31, 2021, the total number of activated ports within its network exceeded 118,000. The company mentioned that theses charging access ports include greater than 5,400 in Europe and more than 3,700 DC fast charge ports.

The firm posted a GAAP net loss of $84.9 million in Q2/22, which it said included “a $10.4 million loss from the change in fair value of warrant liabilities and $28.3 million in stock-based compensation expense.”

The company stated that on a non-GAAP basis which excludes the above adjustments and other items, it registered a net loss in Q2/22 of $40.39 million, versus a net loss of $22.55 million in Q2/21.

ChargePoint indicated that as of July 31, 2021, it was well funded with $618.5 million in cash on its balance sheet.

The company provided some forward guidance and stated that for Q3/22 it expects revenue of between $60-65 million. The firm further advised that it is that it is raising its FY/22 revenue outlook to $225-235 million, up approximately 15% from its prior estimates of $195-205 million.

ChargePoint is endeavoring to create a new electrical transportation fueling network. The company claims to have one of the largest comprehensive EV charging networks. The firm has built an integrated cloud subscription platform designed to offer options for every charging scenario. The company’s network covers everything from home and multifamily housing units to business workplaces, parking lots, hotels, retail, and commercial transport fleets.

With the use of a ChargePoint account, customers can access hundreds of thousands of charging locations in Europe and North America. The firm indicated that, so far, its customers have executed more than 92 million charging sessions.

ChargePoint started today day with a market cap of around $6.8 billion with approximately 321.5 million shares outstanding and a short interest of about 6.6%. CHPT shares opened 12% higher today at $23.79 (+2.56, +12.06%) over yesterday’s $21.23 closing price. The stock has traded today between $22.18 to $23.80 per share and closed at $22.97 (+$1.74, +8.20%).

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