ChargePoint Reports $99.6M Revenue, 10% Decline, and $77.6M Net Loss in Q3 2024

ChargePoint Holdings, Inc. reported a total revenue of $99.6 million for the three months ended October 31, 2024, a decrease of 10% from $110.3 million in the same period last year. For the nine months ended October 31, 2024, revenue was $315.2 million, down from $390.8 million in the prior year. The decline in revenue was primarily attributed to a significant drop in the sales of networked charging systems, which fell to $52.7 million from $73.9 million year-over-year. However, subscription revenue increased to $36.4 million from $30.6 million, reflecting growth in cloud and maintenance services.

The company reported a net loss of $77.6 million for the third quarter, an improvement compared to a net loss of $158.2 million in the same quarter of the previous year. For the nine-month period, the net loss was $218.3 million, down from $362.9 million in the prior year. This reduction in losses was attributed to lower operating expenses, which decreased significantly due to restructuring efforts that included a reduction in workforce and other cost-cutting measures.

In terms of strategic developments, ChargePoint implemented a reorganization plan in September 2024, resulting in a workforce reduction of approximately 249 employees, or 15% of its global workforce. This move was part of ongoing efforts to streamline operations and reduce costs. The company also reported an increase in its employee headcount to 1,400 as of October 31, 2024, compared to 1,200 at the end of the previous fiscal year, indicating a focus on growth despite the recent layoffs.

ChargePoint's operational metrics showed a mixed performance. The number of charging sessions increased, contributing to a rise in subscription revenue, while the overall customer count remained stable. The company continues to expand its geographic footprint, particularly in Europe, where it has made significant investments and partnerships to enhance its market presence. As of the latest report, ChargePoint's cash and cash equivalents stood at $219.4 million, down from $327.4 million at the beginning of the fiscal year, reflecting ongoing cash outflows from operations.

Looking ahead, ChargePoint anticipates continued challenges in the EV market, including competition and macroeconomic factors that could impact demand for its products and services. The company remains focused on optimizing its operations and expanding its product offerings to capture a larger share of the growing EV infrastructure market. ChargePoint's management expressed confidence that its current cash position, along with expected revenue from customer sales, will support its operational needs for at least the next twelve months.