ChargePoint Holdings, Inc. CHPT, a provider of electric vehicle charging networks, plans to slash its headcount by 15% amid declining revenues. In the second quarter of fiscal 2025, the company’s revenues fell 28% to $108.5 million from $150.5 million in the corresponding quarter of fiscal 2024. Networked charging systems revenues dropped 44% year over year to $64.1 million, while subscription revenues grew 21% year over year to $36.2 million.
In the second quarter of fiscal 2025, GAAP and non-GAAP gross margin improved to 24% and 26% from 1% and 3%, respectively, in the second quarter of fiscal 2024 because it had taken a $28 million inventory impairment charge into account last year. GAAP operating expenses decreased 29% year over year to $88.3 million, and non-GAAP expenses dropped 25% year over year to $66.4 million. Non-GAAP adjusted EBITDA loss narrowed to $34.1 million from $81.2 million in the corresponding quarter of fiscal 2024. As of July 31, 2024, cash and cash equivalents amounted to $243.7 million.
The job cuts are expected to save ChargePoint approximately $41 million in GAAP expenses and $38 million in non-GAAP expenses annually while improving operational efficiency. The restructuring, which consists of severance and employee benefits and related costs, is estimated to cost around $10 million. These costs are expected to be incurred during the fiscal third and fourth quarters.
ChargePoint laid off 168 and 223 employees in September 2023 and January 2024, respectively. For the third quarter of fiscal 2025, the company forecasts revenues in the range of $85-$95 million and aims to achieve positive non-GAAP adjusted EBITDA by 2026.
Zacks Rank & Other Key Picks
CHPT currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the auto space are Dorman Products, Inc. DORM, Blue Bird Corporation BLBD and Douglas Dynamics, Inc. PLOW, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for DORM’s 2024 sales and earnings suggests year-over-year growth of 3.71% and 35.46%, respectively. EPS estimates for 2024 and 2025 have improved 20 cents and 22 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for BLBD’s 2024 sales and earnings suggests year-over-year growth of 17.58% and 215.89%, respectively. EPS estimates for 2024 and 2025 have improved 65 cents and 80 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for PLOW’s 2024 earnings suggests year-over-year growth of 60.4%. EPS estimates for 2024 have improved 15 cents in the past 60 days.
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