ChargePoint Overhauls Management Team as It Looks to Rebound From Weak Near-Term Results

Equity Analyst

Brett Castelli

Revenue segments as reported by the company.

Networked charging systems

Subscriptions

Other

Revenue Segments

Gross Profit, Operating Income, and Net Income as a percentage of Revenue

Gross Margin

Operating Margin

Profit Margin

Margins

An operating expense is an expense a business incurs through its normal business operations. Often abbreviated as OPEX.

Research and development

Sales and marketing

General and administrative

Operating Expenses

Year over year growth in Revenue and Operating Expenses.

Revenue Y/Y

OpEx Y/Y

Growth

Shares outstanding refer to a company's stock currently held by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company's officers and insiders.

Outstanding Shares

Market Cap

Also known as Price/Sales Ratio. Calculated using Average market cap for the quarter / Annualized quarterly revenue.

Revenue Multiple

ChargePoint is a leading provider of networked electric vehicle charging hardware and software. The EV charging industry consists of three broad categories of companies: hardware providers, integrators (software providers), and asset owners. ChargePoint focuses on providing integrated hardware and software product offerings and rarely owns assets. It pursues a closed-loop approach—only selling its hardware with its network software attached—which we view as unique among its peers.

ChargePoint’s founding vision was to be the leading provider of networked alternating current charging ports. The company has proved very successful in this pursuit, with approximately 50% AC market share. We view ChargePoint’s first-mover advantage—it was founded in 2007—and integrated hardware-software approach as contributing to its success in the AC market. Now ChargePoint seeks to aggressively expand beyond AC charging in North America.

Direct current charging—which allows for much faster refueling times compared with AC—is expected to grow at a faster rate than AC over the medium and long term. ChargePoint entered the DC charging market in recent years and expects an increasing contribution from sales of its DC products. We expect DC charging to represent a larger addressable market over the long term compared with AC, given much higher price points for hardware (greater than 10 times the price of AC), but we don’t foresee ChargePoint reaching similar levels of market share as it enjoys in AC.

In addition to public charging, ChargePoint competes in the private charging market, namely workplace and fleet. ChargePoint is the unquestioned market leader in workplace, given the prevalence of AC charging, while fleet is a newer market with many competitors seeking to gain a foothold.

Historically North America-focused, ChargePoint aggressively expanded its European presence via two acquisitions in 2021. The European charging market tends to be much more fragmented than the U.S.

Business Strategy & Outlook

We do not believe ChargePoint possesses an economic moat. We assess its moat across three verticals—residential, level 2 (AC), and fast-charging (DC)—and find varying degrees of moatiness across each vertical.

It is important to understand ChargePoint’s unique strategy to assess its moat. ChargePoint provides EV charging hardware and software to businesses and residential customers. In contrast to other hardware providers, ChargePoint only sells its hardware with its software, forming a closed-loop ecosystem. In addition, the company rarely owns assets, employing a capital-light model. Across the EV charging space, we see three broad categories of companies: hardware providers, integrators (software providers), and asset owners. We believe ChargePoint is the only provider at scale of an integrated hardware and software offering.

ChargePoint’s history is as a provider of networked AC hardware. We believe a combination of its first-mover advantage and business model—where it provides a bundled hardware plus software package—has created a moat around this segment based on switching costs. Given slower charging speeds compared with fast charging, AC charging is typically a cost center for the asset owner. Workplaces or retail stores may install AC charging as a benefit to employees or shoppers given the modest up-front cost—less than $5,000 per hardware port. Once installed, we view ChargePoint’s ongoing software revenue as very sticky, given that the asset owner would need to replace the hardware to replace the software. ChargePoint’s moat in the level 2 AC charging market is evidenced by its over 50% market share of all public AC ports, per the Alternative Fuels Data Center.

The DC charging landscape can be characterized by higher price points (approximately 10 times the cost of AC), more hardware-only providers, and less host ownership of assets. We think these characteristics, combined with less of a first-mover advantage for ChargePoint, lead to a more competitive landscape relative to the AC market. ChargePoint’s lower market share in DC supports our view that this segment lacks a moat. Per AFDC data, the company has approximately 10% market share of DC charging (20% excluding Tesla).

We do not believe ChargePoint’s residential EV charging product offering possesses a moat. In contrast to its business-to-business operations, ChargePoint does sell stand-alone hardware into the residential market, lowering switching costs. In addition, some auto original equipment manufacturers provide a compatible home charger, such as Tesla. We view the non-Tesla market share to be relatively fragmented with limited brand loyalty.

None

Economic Moat

ChargePoint Holdings

ChargePoint Holdings, Inc. operates as an electric vehicle charging network provider. It designs, develops and markets networked electric vehicle charging system infrastructure and its Cloud Services enable consumers the ability to locate, reserve, authenticate and transact electric vehicle charging sessions. The firm provides an open platform providing real-time information about charging sessions and control, support and management of the networked charging systems. This network provides multiple web-based portals for charging system owners, fleet managers, drivers and utilities. The company was founded in 2007 and is headquartered in Campbell, CA.

Earnings data Q4 2023

Revenue

Cost of revenue

Gross profit

Operating expenses

SG&A

Operating income

EBITDA

Net income

Earnings per share

Total assets

Current assets

Cash & equivalents

Receivables

Inventory

Non-current assets

Net PPE

Intangibles

Total liabilities

Current liabilities

Short term debt

Income tax payable

Non-current liabilities

Long-term debt

Total equity

Stockholders equity

Minority interest

Total liabilities & equity

Total debt

Net debt

Book value per share

Cash from operations

Funds from operations

Change in working capital

Cash from investing

Capital expenditure

Purchase/sale of investments

Purchase/sale of business

Other sources

Cash from financing

Change in stock

Change in debt

Cash dividends paid

Cash from other sources

Net change in cash

Free cash flow

LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz announces an investigation of ChargePoint Holdings, Inc. (“ChargePoint” or the “Company”) (NYSE: CHPT) on behalf of investors concerning the Company's possible violations of federal securities laws. If you are a shareholder who suffered a loss, click here to participate. On November 16, 2023, after the market closed, ChargePoint released preliminary financial results for third quarter 2023, disclosing that revenue had fallen to “$10.

The Law Offices of Frank R. Cruz Announces Investigation of ChargePoint Holdings, Inc. (CHPT) on Behalf of Investors

Apple

Airbnb

Analog Devices

American Eagle Outfitters

Canadian Solar

Kraft Heinz

Microsoft

NVIDIA

A financial advisor can help you understand the advantages and disadvantages of investment properties.

Stocks Close Another Week Higher: ChargePoint Blowup Highlights Top Analyst Calls

Terran Orbital Corp

Upstart Holdings

Investors are getting increasingly fed up with the choppiness in markets lately and are looking for high-risk, high-reward bets to spice up their portfolios. The recent surge in cryptocurrencies is evidence of this trend, as speculators pile back into volatile assets like we haven't seen since 2021.

3 Penny Stocks to Buy Now Before an Epic Short Squeeze

Capping off what has been an ugly time broadly for the electric vehicle (EV) industry this week, charging infrastructure specialist ChargePoint (NYSE: CHPT ) is suffering a hideous 35% collapse on Friday. Yesterday after the market close, management announced a sudden shift at ChargePoint's top executive levels.

Analysts Are Souring on ChargePoint (CHPT) Stock

Although considered a leading player in the electric vehicle (EV) charging infrastructure amid the growing popularity of EVs, ChargePoint Holdings (NYSE: CHPT ) faces challenges. The stock has plummeted by 65% this year due to delayed compatibility with Tesla's charging network, significant stock dilution and distant profitability prospects.

CHPT Stock Outlook: Is EV Player ChargePoint a Buy Heading Into 2024?

EVgo

ChargePoint (NASDAQ: CHPT) stock price crashed hard on Friday after the company published a weak preliminary statement. As I wrote earlier, CHPT also lost its Chief Executive and Chief Finance Officer as woes in the industry continued.

As ChargePoint (CHPT) stock plummets are EVGO and Blink good buys?

ChargePoint adjusted revenue estimates and now expects a year-over-year decline. The company replaced both its CEO and its CFO.

Why ChargePoint Stock Is Getting Crushed Friday

ChargePoint announced the CEO and CFO are leaving effective immediately. Preliminary third-quarter 2023 results were announced and they show a dramatic drop in revenue and margins for the quarter.

ChargePoint's Disastrous 2023 Just Got a Lot Worse

Shares of ChargePoint Holdings Inc. CHPT, -36.10% plunged 36.4% toward a record low Friday, after the electric vehicle charging station company warned of a revenue miss and announced departures of two top executives. The stock was also headed for the biggest one-day drop since it started trading four years ago, with the percentage decline more than double the current record 16.1% selloff on June 13, 2022.

ChargePoint's stock plunges toward record daily, weekly declines after CEO change, revenue warning

Electric vehicle (EV) charging network provider ChargePoint Holdings Inc. (NYSE: CHPT) fired its CEO and CFO Thursday, then pre-announced third-quarter revenue that was far worse than expected.

ChargePoint Stock (CHPT) Plunges on Executive Changes, Q3 Report

ChargePoint (NYSE: CHPT ) stock is sliding lower on Friday after the electric vehicle (EV) charging company released preliminary earnings data for Q3. The bad news for CHPT stock comes from its preliminary revenue estimate of $108 million to $113 million.

Why Is ChargePoint (CHPT) Stock Down 32% Today?

Needham analyst Chris Pierce on Friday cut his price target on ChargePoint Holdings Inc.'s stock CHPT, -5.72% to $4 from $8 after the electric-vehicle charging specialist lost its top executive and forecast third-quarter sales below the consensus view. ChargePoint's stock was down 29% in premarket trading Friday on heavy volume of 1.5 million shares.

ChargePoint Holdings price target cut in half at Needham as stock drops after warning

Chargepoint Holdings (NYSE:CHPT) stock is set to start Friday's session down some 28% after its out-of-hours profit warning. The EV charging network developer and operator told investors it expected to report third-quarter revenue in the range of $108 million to $113 million, down from a prior estimate of $150 million to $165 million, and, short of the prevailing Wall Street consensus of $157 million.

Chargepoint slumps on profit warning and management change

EV charging company ChargePoint sees third-quarter sales far below Wall Street estimates. Investors aren't happy.

Higher Rates Are Hurting Business. ChargePoint Stock Plummets.

Don't miss the material news that's hidden behind the hype.

EV Stocks to Avoid: ChargePoint's Recent Money Raise Is a Big Warning Sign

ChargePoint (NYSE: CHPT) stock price made a strong bearish breakout as concerns about the company continued. The shares crashed to a low of $2.20 in the extended hours, the lowest level on record.

ChargePoint stock price: the plot thickens as CHPT shares eye $1

Shares of ChargePoint Holdings Inc. tanked more than 20% 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.

ChargePoint stock down more than 20% after revenue warning, CEO change

CAMPBELL, Calif.--(BUSINESS WIRE)--ChargePoint (NYSE:CHPT) (“ChargePoint” or the “Company”), a leading provider of networked solutions for charging electric vehicles (EVs), today announced certain preliminary third quarter financial results for fiscal year 2024. The Company will report its full third quarter financial results and update full year revenue and fourth quarter fiscal 2024 guidance on an investor conference call to be held on Wednesday, December 6, 2023 at 1:30 p.m. PST (4:30 p.m. E.

ChargePoint Provides Certain Preliminary Third Quarter Financial Results and Schedules Earnings Call for December 6, 2023

CAMPBELL, Calif.--(BUSINESS WIRE)--ChargePoint (NYSE: CHPT), a leading provider of networked charging solutions for electric vehicles, has appointed Rick Wilmer as its new President and Chief Executive Officer, effective November 16, 2023. In conjunction with the appointment, Mr. Wilmer has joined the ChargePoint Board of Directors. Since joining ChargePoint as Chief Operating Officer in July 2022, Mr. Wilmer has been responsible for Product Management, Development, Engineering, Manufacturing a.

ChargePoint Announces Executive Leadership Changes

Beam Global

Blink Charging

In the United States, electric vehicle (EV) sales have been slowing down. Still, while this may make some investors nervous, it clearly isn't impacting how other nations feel about the shifting EV industry.

3 EV Charging Stocks to Buy as Adoption Soars in Europe

Chevron

Enbridge

First Solar

General Dynamics

Innovative Industrial Properties

Lockheed Martin

As 2024 looms, investors are eyeing the stocks to buy ahead of the presidential election. So far, 2023 has been a testament to this trend, with the S&P 500 index witnessing a healthy rise of more than 10%.

7 Stocks to Buy in 2023 Ahead of the 2024 Presidential Election

Li Auto Inc.

Rivian Automotive

The long-term trend favors electric vehicle (EV) production even if it's not a smooth transition. That certainly appears to be the opinion of analysts.

3 EV Stocks With Strong Price Targets

Lucid Group

The October Producer Price Index came in lower than expected. It added to the enthusiasm around yesterday's softer consumer price data.

Why Lucid Group, ChargePoint, and Blink Charging Surged Again Today

CRISPR Therapeutics

Medtronic

Rocket Lab USA

SharkNinja Inc

Tilray Brands

Vertex Pharmaceuticals

One of my favorite investment strategies when seeking forever stocks is to look to past trends that turned stale. Think of some of the hottest sectors in the past five years that saw massive investor interest before falling back to Earth.

Invest in the Future With These 7 Forever Stocks

CAMPBELL, Calif.--(BUSINESS WIRE)--ChargePoint (NYSE: CHPT), a leading provider of networked charging solutions for electric vehicles (EVs), announced today the first large scale deployment of its new Express Plus Power Link 2000 DC fast charging platform. The Power Link system, capable of delivering charging speeds up to 500kW, debuted today as the charging hardware and software driving the fastest public charging network in North America: Mercedes-Benz HPC NA. “With the deployment of Express.

News for ChargePoint Holdings Stock (CHPT)