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ChargePoint Stock Down More Than 28% After Revenue Warning, CEO Change

Dow Jones2023-11-17

Shares of ChargePoint Holdings Inc. tanked more than 28% in the extended session Thursday after the EV charging company lost its top executive and said its third-quarter sales are well off the mark.

"Our core markets of North America and Europe both came under pressure late in the third quarter, with revenue falling far short of expectations," ChargePoint (CHPT) said in a statement.

The company called for third-quarter revenue between $108 million and $113 million, compared with a previous expectation of between $150 million and $165 million. Analysts surveyed by FactSet expect revenue of $157 million for the quarter.

"Overall macroeconomic conditions, along with fleet- and commercial-vehicle delivery delays, impacted anticipated deployments with government, auto dealership and workplace customers," newly appointed Chief Executive Rick Wilmer said in the statement. Wilmer was named CEO on Thursday.

The company said it will report full results and update its year and current-quarter guidance on Dec. 6.

ChargePoint said it had cash and equivalents of about $397 million as of Oct. 31, including $232 million of at-the-market share offering gross proceeds. As of that October date, the company's $150 million revolving credit facility remains undrawn, and there's no drawn debt maturities until 2028, the company said.

The company said in a separate press release that it had appointed Wilmer, its previous chief operating officer, as CEO. Outgoing CEO Pasquale Romano will remain as an adviser "to ensure a seamless transition," it said, without further details.

ChargePoint also named Mansi Khetani its interim chief financial officer. Regarding the CFO change, ChargePoint would only say that former CFO Rex Jackson has departed the company, effective Thursday, and that it will start a search for a permanent executive.

Shares of ChargePoint have lost more than 67% so far this year, contrasting with gains of around 17% for the S&P 500 index SPX.

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Comment1

  • Satsanga
    ·2023-11-17
    A lot of competition out there with charging stations. Tesla is leading the way.
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