ChargePoint narrows net loss, announces plan to cut 15% of its workforce

By Connor Hart

ChargePoint (CHPT) will cut its workforce by about 15%, or 250 jobs, in a reorganization of its operations.

The electric vehicle-charging company, which according to its most recent 10-K filing employed 1,650 workers globally as of Jan. 31, on Wednesday said its reorganization is expected to reduce annual GAAP and non-GAAP operating expenses by $41 million $38 million, respectively, while also creating efficiencies by streamlining functions.

The company will incur about $10 million in restructuring costs, primarily consisting of severance payments, during its third and fourth fiscal quarters.

Shares fell 8.3%, to $1.55, in after-hours trading following the announcement.

The reorganization announcement came as the company narrowed its net loss of $68.9 million in its fiscal second quarter ended July 31, from a loss of $125.3 million in last year's quarter.

On a per-share basis, ChargePoint reported a loss of 16 cents, compared with a loss of 35 cents a year prior. Analysts polled by FactSet expected a per-share loss of 15 cents.

Revenue fell 28% to $108.5 million, missing the $113.5 million that Wall Street forecast, according to FactSet.

For its third quarter, the company expects revenue between $85 million and $95 million. Analysts surveyed by FactSet are looking for revenue of $136.1 million.

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09-04-24 1808ET

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