ChargePoint, a leading provider of networked solutions for charging electric vehicles (EVs), announced its financial results for the third quarter of fiscal year 2025, which ended on October 31, 2024. The company highlighted record EV sales across the industry and increased network utilization, emphasizing the rising demand for charging infrastructure. Rick Wilmer, CEO of ChargePoint, expressed optimism about the company’s performance, stating, “Our third-quarter results exceeded our expectations and showcase how our strategy, operational excellence, and disciplined cash management are yielding tangible results.
Financial Highlights for Q3 FY2025
Revenue:
ChargePoint generated $99.6 million in revenue for the quarter, a 10% decrease compared to $110.3 million in the same period last year. Revenue from networked charging systems stood at $52.7 million, representing a 29% decline from $73.9 million in the prior year. In contrast, subscription revenue demonstrated robust growth, climbing 19% year-over-year to $36.4 million from $30.6 million.
Gross Margin:
The company reported a significant improvement in gross margins. The GAAP gross margin for Q3 was 23%, a sharp turnaround from (22)% in the same quarter last year. On a non-GAAP basis, gross margin rose to 26%, up from (18)% a year ago. These improvements were primarily attributed to the absence of a $42 million inventory impairment charge recorded in the prior year, which was necessary to address legacy supply overruns and better align inventory with demand.
Operating Expenses:
ChargePoint achieved a substantial reduction in operating expenses. GAAP operating expenses for the quarter decreased by 30% to $91.0 million, compared to $129.8 million in the same quarter last year. Non-GAAP operating expenses followed a similar trend, falling 28% to $58.6 million from $81.1 million.
Net Income/Loss:
The company reported a GAAP net loss of $77.6 million, a marked improvement from the $158.2 million loss recorded in the prior year. On a non-GAAP basis, pre-tax net loss decreased by 62% to $40.7 million from $106.3 million. Additionally, the non-GAAP Adjusted EBITDA loss narrowed to $28.6 million, representing a 71% reduction compared to $97.4 million in Q3 FY2024.
Liquidity Position:
As of October 31, 2024, ChargePoint maintained a strong liquidity position with $219.8 million in cash and cash equivalents. The company’s $150 million revolving credit facility remains undrawn, and it faces no debt maturities until 2028.
Shares Outstanding:
ChargePoint reported approximately 441 million shares of common stock outstanding as of the end of the quarter.
Business Milestones
- Executive Leadership:
ChargePoint appointed David Vice as Chief Revenue Officer. Vice will lead the company’s global sales and marketing efforts, driving revenue growth and market expansion. - Fleet Electrification Advancements:
The company introduced the CPF50, an affordable Level 2 charging solution designed to facilitate fleet electrification. This product offers access to ChargePoint’s advanced fleet and telematics software platform, enabling more fleets to transition to electric vehicles. - Enhanced Accessibility:
ChargePoint launched the Essential cloud plan, targeting small businesses and multi-family housing markets. This plan makes EV charging more accessible by leveraging ChargePoint’s leading software platform.
Guidance for Q4 FY2025 and Beyond
For the fourth fiscal quarter ending January 31, 2025, ChargePoint expects revenue in the range of $95 million to $105 million. The company is focused on returning to growth and streamlining operations to achieve positive non-GAAP Adjusted EBITDA, a milestone anticipated in fiscal year 2026.
ChargePoint emphasized that it cannot provide a reconciliation of forward-looking non-GAAP Adjusted EBITDA to GAAP measures due to uncertainties surrounding potential future adjustments, including stock-based compensation expenses. These items could significantly impact GAAP net loss figures.
Conference Call Details
ChargePoint will host a live webcast at 1:30 p.m. Pacific / 4:30 p.m. Eastern to discuss its Q3 FY2025 financial results. The webcast, along with supplemental financial information and an investor presentation, is available on ChargePoint’s investor relations website under the “Events and Presentations” section. A replay of the webcast will be accessible for one year following the event.
ChargePoint’s Q3 FY2025 results highlight the company’s ability to navigate a dynamic and competitive EV market while maintaining a focus on operational excellence. With new product innovations and a growing emphasis on electrification, the company is poised to capitalize on the rising demand for EV charging solutions.
