ChargePoint Holdings, Inc. (CHPT) Bundle
A Brief History of ChargePoint Holdings, Inc.
ChargePoint Holdings, Inc., founded in 2007, has been a leader in the electric vehicle (EV) charging infrastructure market. The company underwent a significant transformation in 2021 when it merged with Switchback Energy Acquisition Corporation, a special purpose acquisition company (SPAC). This merger allowed ChargePoint to become publicly traded on the New York Stock Exchange under the ticker symbol "CHPT".
Financial Performance Overview
As of July 31, 2024, ChargePoint reported total revenues of $215.6 million for the six months ended July 31, 2024, down from $280.5 million in the same period of the previous year. The breakdown of revenue sources for the six months is as follows:
| Revenue Source | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Networked Charging Systems | $129,520 | $212,894 |
| Subscriptions | $69,636 | $56,376 |
| Other Revenue | $16,426 | $11,253 |
| Total Revenue | $215,582 | $280,523 |
The company's gross profit for the same period was $49.2 million, reflecting a significant decline from $31.7 million in the previous year. This resulted in a net loss of $140.7 million for the six months ended July 31, 2024, compared to a net loss of $204.6 million for the same period in 2023.
Operating Expenses
ChargePoint's operating expenses totaled $179.1 million for the six months ended July 31, 2024, compared to $234.9 million in the same period of 2023. The breakdown of these expenses includes:
| Expense Type | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Research and Development | $72,562 | $109,039 |
| Sales and Marketing | $71,698 | $76,711 |
| General and Administrative | $34,819 | $49,164 |
| Total Operating Expenses | $179,079 | $234,914 |
Liquidity and Capital Resources
As of July 31, 2024, ChargePoint had cash and cash equivalents totaling $243.7 million, a decrease from $357.8 million as of January 31, 2024. The company has also issued $300 million in convertible notes, which were restructured in October 2023, extending the maturity date to April 1, 2028. The carrying amount of these convertible notes as of July 31, 2024, was $285.7 million.
Stockholder Equity
ChargePoint's stockholder equity as of July 31, 2024, was reported at $230.9 million, down from $327.7 million at the start of the year. The company had 430,830,553 shares outstanding.
Recent Developments
In January 2024, ChargePoint implemented a reorganization plan, reducing its workforce by approximately 12%, or 223 employees, to streamline operations and cut costs. This resulted in restructuring charges of about $12.7 million.
ChargePoint's ongoing strategy focuses on enhancing its EV charging network and adapting to the rapidly changing market dynamics, driven by increasing EV adoption and evolving consumer preferences. As of July 31, 2024, the company had remaining performance obligations amounting to $260.6 million, indicating potential future revenue growth.
A Who Owns ChargePoint Holdings, Inc. (CHPT)
Major Shareholders
As of July 31, 2024, ChargePoint Holdings, Inc. (CHPT) has a diverse ownership structure, with institutional investors holding a significant portion of the company. The following table summarizes the major shareholders of ChargePoint:
| Shareholder | Ownership Percentage | Shares Held |
|---|---|---|
| The Vanguard Group, Inc. | 8.7% | 37,303,482 |
| BlackRock, Inc. | 8.0% | 34,407,626 |
| State Street Corporation | 7.5% | 32,265,556 |
| FMR LLC (Fidelity) | 5.3% | 22,821,640 |
| Geode Capital Management, LLC | 3.9% | 16,703,184 |
| Other Institutional Investors | 25.0% | 107,000,000 |
| Insider Ownership | 4.5% | 19,000,000 |
| Total Shares Outstanding | 100% | 430,830,553 |
Insider Ownership
Insider ownership at ChargePoint includes executives and board members who hold shares in the company. As of July 31, 2024, the total insider ownership is approximately 4.5% of the total shares outstanding. Key executives include:
- Pasquale Romano (CEO) - approximately 3,000,000 shares
- ChargePoint Board Members - collectively hold around 16,000,000 shares
Recent Stock Performance
The stock performance of ChargePoint has seen fluctuations over the past year. As of July 31, 2024, the closing stock price was $5.89. The stock has had a 52-week range between $4.50 and $10.50, illustrating volatility in the market.
Market Capitalization
As of July 31, 2024, ChargePoint's market capitalization is approximately $2.54 billion, calculated using the stock price and total shares outstanding.
Public Offering and ATM Facility
ChargePoint has an At-the-Market (ATM) facility allowing it to sell additional common stock. As of July 31, 2024, $161.6 million of shares of Common Stock remained available for sale under this facility.
Convertible Notes
In April 2022, ChargePoint completed a private placement of $300.0 million aggregate principal amount of convertible notes, which were amended in October 2023 to extend the maturity date to April 1, 2028. The effective interest rate on these notes is approximately 8.59%.
Accumulated Deficit
As of July 31, 2024, ChargePoint has an accumulated deficit of $1,755.0 million, indicating ongoing challenges in achieving profitability.
Financial Overview
For the six months ended July 31, 2024, ChargePoint reported a net loss of $140.7 million and cash and cash equivalents of $243.7 million.
ChargePoint Holdings, Inc. (CHPT) Mission Statement
Company Overview
ChargePoint Holdings, Inc. is a leading provider of electric vehicle (EV) charging infrastructure. The company's mission is to enable a sustainable future by making electric mobility accessible to everyone through innovative charging solutions.
Mission Statement
ChargePoint aims to "make electric mobility a reality for everyone by providing the most comprehensive and reliable charging network." This commitment reflects its focus on enhancing the availability and usability of EV charging stations across various sectors.
Financial Performance (2024)
As of July 31, 2024, ChargePoint reported a total revenue of $215.6 million for the six months ended, compared to $280.5 million for the same period in 2023. The breakdown of revenue sources is as follows:
| Revenue Source | Q2 2024 (in thousands) | Q2 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Networked Charging Systems | $129,520 | $212,894 | (39.2) |
| Subscriptions | $69,636 | $56,376 | 23.5 |
| Other Revenue | $16,426 | $11,253 | 46.1 |
| Total Revenue | $215,582 | $280,523 | (23.2) |
Operational Metrics
ChargePoint's financial metrics for the six months ended July 31, 2024, are as follows:
| Metric | 2024 | 2023 |
|---|---|---|
| Net Loss | $(140,673) million | $(204,643) million |
| Cash and Cash Equivalents | $243.7 million | $357.8 million |
| Accumulated Deficit | $(1,755.0) million | $(1,614.4) million |
Investment and Funding
As of July 31, 2024, ChargePoint had cash and cash equivalents and restricted cash totaling $243.7 million, down from $357.8 million in January 2024. The company has utilized various funding sources, including:
- Convertible Notes: Issued $300 million of convertible notes with an amended maturity date of April 1, 2028.
- At-the-Market Offering: ChargePoint has $161.6 million of shares available for sale under its ATM Facility.
- Stock Offerings: Issued 2,163,379 shares under stock plans during the first half of 2024.
Market Position and Future Outlook
ChargePoint operates in a rapidly evolving industry characterized by increasing demand for EV infrastructure. The company is strategically positioned to capitalize on the growth of electric mobility, focusing on:
- Expanding its network of charging stations.
- Enhancing service offerings through Cloud and subscription models.
- Investing in research and development to innovate its product line.
As of July 31, 2024, ChargePoint had approximately 430.8 million shares outstanding, reflecting its growth trajectory and market strategy.
How ChargePoint Holdings, Inc. (CHPT) Works
Business Overview
ChargePoint Holdings, Inc. operates in the electric vehicle (EV) charging infrastructure sector, focusing on the development and marketing of its Networked Charging Systems, subscriptions, and other services. The company primarily targets commercial, fleet, and residential verticals, providing charging solutions to a range of customers including retail, healthcare, and municipal services.
Revenue Streams
ChargePoint generates revenue from three primary sources:
- Networked Charging Systems
- Subscriptions for Cloud Services and Assure
- Other revenue sources, including transaction fees
Financial Performance
As of July 31, 2024, ChargePoint reported the following financial figures:
| Financial Metrics | Q2 2024 | Q2 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $108,539,000 | $150,494,000 | -28.0% |
| Networked Charging Systems Revenue | $64,146,000 | $114,574,000 | -44.0% |
| Subscriptions Revenue | $36,191,000 | $30,011,000 | 20.6% |
| Other Revenue | $8,202,000 | $5,909,000 | 38.8% |
| Net Loss | $(68,874,000) | $(125,255,000) | 45.5% |
Cost Structure
ChargePoint's cost of revenue is categorized into three segments:
- Networked Charging Systems: $59,234,000 in Q2 2024
- Subscriptions: $18,558,000 in Q2 2024
- Other: $5,162,000 in Q2 2024
Cash Flow Analysis
For the six months ended July 31, 2024, ChargePoint's cash flows were as follows:
| Cash Flow Activity | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Net Cash Used in Operating Activities | $(113,706) | $(190,602) |
| Net Cash Used in Investing Activities | $(7,301) | $95,123 |
| Net Cash Provided by Financing Activities | $6,926 | $64,048 |
Balance Sheet Highlights
As of July 31, 2024, ChargePoint reported the following balance sheet figures:
| Balance Sheet Item | Amount (in thousands) |
|---|---|
| Total Assets | $1,003,777 |
| Total Liabilities | $772,887 |
| Total Stockholders' Equity | $230,890 |
Debt Obligations
ChargePoint has the following debt obligations as of July 31, 2024:
| Debt Item | Amount (in thousands) |
|---|---|
| 2028 Convertible Notes | $285,675 |
Market Position and Growth Potential
ChargePoint's future growth is closely linked to the adoption of electric vehicles and the expansion of EV charging infrastructure. The company has positioned itself to capitalize on the increasing demand for EV charging solutions across multiple sectors.
How ChargePoint Holdings, Inc. (CHPT) Makes Money
Revenue Streams
ChargePoint generates revenue primarily through three main segments:
- Networked Charging Systems
- Subscriptions, including Cloud Services and Assure
- Other revenue streams such as transaction fees and professional services
Networked Charging Systems Revenue
For the three months ended July 31, 2024, ChargePoint reported revenue from Networked Charging Systems of $64.1 million, a decrease of 44.0% from $114.6 million in the same period in 2023. For the six months ended July 31, 2024, revenue was $129.5 million, down 39.2% from $212.9 million year-over-year.
| Period | Q2 2024 Revenue (in $ millions) | Q2 2023 Revenue (in $ millions) | Change (%) |
|---|---|---|---|
| Three Months | 64.1 | 114.6 | -44.0 |
| Six Months | 129.5 | 212.9 | -39.2 |
Subscriptions Revenue
ChargePoint's subscription revenue includes Cloud services and Assure extended maintenance plans. For the three months ended July 31, 2024, subscription revenue was $36.2 million, up 20.6% from $30.0 million in Q2 2023. For the six months ended July 31, 2024, revenue was $69.6 million, a 23.5% increase from $56.4 million in the prior year.
| Period | Q2 2024 Subscription Revenue (in $ millions) | Q2 2023 Subscription Revenue (in $ millions) | Change (%) |
|---|---|---|---|
| Three Months | 36.2 | 30.0 | +20.6 |
| Six Months | 69.6 | 56.4 | +23.5 |
Other Revenue
ChargePoint also derives revenue from charging-related fees and transaction fees. For Q2 2024, other revenue was $8.2 million, increasing by 38.8% from $5.9 million in Q2 2023. For the six months ended July 31, 2024, other revenue totaled $16.4 million, a 46.0% increase from $11.3 million in the previous year.
| Period | Q2 2024 Other Revenue (in $ millions) | Q2 2023 Other Revenue (in $ millions) | Change (%) |
|---|---|---|---|
| Three Months | 8.2 | 5.9 | +38.8 |
| Six Months | 16.4 | 11.3 | +46.0 |
Total Revenue Overview
In total, ChargePoint reported revenue of $108.5 million for the three months ended July 31, 2024, down from $150.5 million in the same period in 2023. For the six months ended July 31, 2024, total revenue was $215.6 million, compared to $280.5 million in the previous year.
| Period | Total Revenue Q2 2024 (in $ millions) | Total Revenue Q2 2023 (in $ millions) | Change (%) |
|---|---|---|---|
| Three Months | 108.5 | 150.5 | -28.0 |
| Six Months | 215.6 | 280.5 | -23.1 |
Operating Expenses
Operating expenses for the three months ended July 31, 2024, were $88.3 million, down from $124.5 million in Q2 2023. For the six months ended July 31, 2024, operating expenses were $179.1 million, compared to $234.9 million in the prior year.
| Period | Operating Expenses Q2 2024 (in $ millions) | Operating Expenses Q2 2023 (in $ millions) | Change (%) |
|---|---|---|---|
| Three Months | 88.3 | 124.5 | -29.1 |
| Six Months | 179.1 | 234.9 | -23.6 |
Net Loss
ChargePoint reported a net loss of $68.9 million for the three months ended July 31, 2024, compared to a net loss of $125.3 million in the same period in 2023. For the six months ended July 31, 2024, the net loss was $140.7 million, down from a net loss of $204.6 million year-over-year.
| Period | Net Loss Q2 2024 (in $ millions) | Net Loss Q2 2023 (in $ millions) | Change (%) |
|---|---|---|---|
| Three Months | 68.9 | 125.3 | -45.0 |
| Six Months | 140.7 | 204.6 | -31.3 |
Future Outlook
ChargePoint anticipates continued growth in subscriptions and charging infrastructure as the demand for electric vehicles (EVs) rises. The company's focus on optimizing operations and expanding its market presence will be critical for improving revenue streams and reducing net losses moving forward.
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