ChargePoint Stock Drops After Q4 Results - Here's Why

ChargePoint Holdings, Inc. CHPT shares are trading lower after the company reported fourth-quarter financial results and issued guidance below estimates. Here's a look at the details.

ChargePoint reported quarterly losses of 23 cents per share, in line with analyst estimates.

Quarterly sales came in at $115.833 million, which missed the analyst consensus estimate of $118.777 million and is a 24.21 percent decrease over sales of $152.827 million from last year.

ChargePoint reported networked charging systems revenue of $74 million, down 39% year-over-year, and subscription revenue of $33.5 million, a 30% increase year-over-year.

"In the fourth quarter, ChargePoint continued to focus on operational execution, delivering sequential revenue growth, normalization in gross margin, reduction of operating expenses, and a significant decrease in cash usage. Quarterly milestones included the opening of the Mercedes-Benz HPC NA charging network and receiving FedRAMP authority to operate, which enables ChargePoint to bid for United States government contracts," said Rick Wilmer, CEO of ChargePoint.

"Looking ahead, we are focused on operational excellence, delivering world-class driver experiences, prioritization of our software platform, and hardware innovation. This will drive growth for the ChargePoint business, and enable the EV charging needs of our customers," Wilmer added.

Outlook: ChargePoint sees first-quarter revenue between $100 million and $110 million, lower than the $126.09 million estimate. At the midpoint, it represents an anticipated decline of 19% year-over-year.

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CHPT Price Action: According to Benzinga Pro, ChargePoint shares are trading down 8% after-hours at $1.84 at the time of publication.

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