ChargePoint Holdings Inc (CHPT, Financial), a leading provider of networked solutions for charging electric vehicles (EVs), reported its financial results for the first quarter of fiscal year 2025, ending April 30, 2024. The company designs, develops, and markets networked EV charging system infrastructure and cloud-based services, with a significant portion of its revenue derived from the United States.
Performance Overview
ChargePoint Holdings Inc (CHPT, Financial) reported first-quarter revenue of $107 million, surpassing the analyst estimate of $105.79 million. However, this represents an 18% decline from the $130 million reported in the same quarter last year. The company's GAAP net loss improved by 10% year-over-year to $71.8 million, while the non-GAAP Adjusted EBITDA loss improved by 25% to $36.5 million.
Despite the revenue beat, the company faced challenges with a significant drop in networked charging systems revenue, which fell 34% year-over-year to $65.4 million. On a positive note, subscription revenue grew by 27% year-over-year to $33.4 million, highlighting the company's successful shift towards recurring revenue streams.
Financial Achievements and Challenges
ChargePoint's GAAP gross margin for the quarter was 22%, slightly down from 23% in the same quarter last year. The non-GAAP gross margin was 24%, compared to 25% in the prior year's quarter. Operating expenses saw a notable reduction, with GAAP operating expenses down 18% year-over-year to $90.7 million, and non-GAAP operating expenses down 22% to $66.4 million.
The company's liquidity position remains strong, with $292.3 million in cash, cash equivalents, and restricted cash as of April 30, 2024. ChargePoint's $150 million revolving credit facility remains undrawn, and the company has no debt maturities until 2028.
Income Statement Highlights
| Metric | Q1 FY2025 | Q1 FY2024 |
|---|---|---|
| Total Revenue | $107.0 million | $130.0 million |
| Networked Charging Systems Revenue | $65.4 million | $98.3 million |
| Subscription Revenue | $33.4 million | $26.4 million |
| GAAP Net Loss | $(71.8) million | $(79.4) million |
| Non-GAAP Adjusted EBITDA Loss | $(36.5) million | $(48.9) million |
Balance Sheet and Cash Flow
ChargePoint's balance sheet remains robust, with total assets of $1.05 billion and total liabilities of $773.3 million as of April 30, 2024. The company reported a decrease in cash and cash equivalents from $327.4 million at the end of January 2024 to $261.9 million at the end of April 2024. The net cash used in operating activities was $62.5 million for the quarter.
Business Highlights and Future Guidance
ChargePoint now enables access to more than one million places to charge worldwide across public, private, and roaming ports. The company also shipped its first multimillion-dollar order requiring FedRAMP certification and has been successful in winning more than 120 individual National Electric Vehicle Infrastructure (NEVI) Program proposed site awards totaling approximately $71 million in grant opportunities.
For the second fiscal quarter ending July 31, 2024, ChargePoint expects revenue between $108 million and $118 million. The company reaffirms its goal to achieve positive non-GAAP Adjusted EBITDA by the fourth quarter of fiscal year 2025.
Analysis
ChargePoint Holdings Inc (CHPT, Financial) has demonstrated resilience in a challenging market environment. The company's focus on subscription revenue and operational efficiency has yielded positive results, as evidenced by the improvement in non-GAAP Adjusted EBITDA loss and reduction in operating expenses. However, the significant decline in networked charging systems revenue indicates potential headwinds in hardware sales, which the company must address to sustain growth.
Overall, ChargePoint's strategic initiatives and strong liquidity position provide a solid foundation for future growth, particularly as the demand for EV charging infrastructure continues to rise globally.
Explore the complete 8-K earnings release (here) from ChargePoint Holdings Inc for further details.
