ChargePoint’s Q3 Revenue Drops 12% YoY as Demand for Charging Infra Dwindles

The company’s net loss surged 87% YoY to $158.2 million


Electric vehicle (EV) charging solution provider ChargePoint’s revenue for the third quarter (Q3) of 2023 came in at $110.3 million, a 12% year-over-year (YoY) decrease from $125.3 million due to a drop in commercial demand and supply chain adjustments.

The company reported a net loss of $158.2 million during the quarter, a YoY increase of 87% from $84.5 million, driven by a $42 million inventory impairment charge.

The non-GAAP adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) loss for Q3 was $97.4 million, reflecting the inventory impairment charge and an increase of 89% YoY in contrast to $51.5 million.

Networked charging systems revenue for Q3 was $73.9 million, down by 24% YoY from $97.6 million. However, subscription revenue experienced growth, totaling $30.6 million, a 41% YoY increase from $21.7 million.

The company reported delays in commercial fleet vehicle arrivals and production scaling.

The company claimed that customers now await vehicle delivery before investing in charging infrastructure.

Reduced commercial demand and supply chain normalization also impacted the revenue growth during the quarter. Commercial charger demand fell due to high interest rates and economic uncertainty.

Supply chain adjustments led to lower inventory levels, impacting Q3 negatively.

Another factor that impacted the company revenue was the hesitation related to U.S. automotive labor disputes, delaying business with auto OEMs and dealerships.

ChargePoint’s $150 million revolving credit facility remains untapped, and the company does not face any debt maturities until 2028.

“ChargePoint’s third quarter execution came up far short of its goals in the face of continued challenging macroeconomic conditions and execution challenges,” said Rick Wilmer, the new President and CEO of ChargePoint.

Wilmer said that though the quarter overall did not meet expectations, the company demonstrated how they continue to empower the EV ecosystem across hardware and software and fortify their balance sheet, which leaves them capitalized to execute their strategy.

The company said it remains committed to delivering positive non-GAAP adjusted EBITDA in the fourth quarter of 2024.

9M 2023

During the first nine months (9M) of 2023, the company recorded a net loss of $362.86 million, a YoY increase of 36% from $266.45 million.

For 9M, ChargePoint accounted for $390.81 million in total revenue, a YoY increase of 23.9% from $315.27 million.

The non-GAAP pre-tax net loss was $245.34 million, an increase of 30.7% from $187.66 million.

The non-GAAP adjusted EBITDA stood at $227.42 million, an increase of 30% YoY.

The company said it has adjusted future supply commitments to align with current demand and product range, and the non-cash impairment charge taken in the third quarter is seen as a strategic move and is expected to provide a foundation for future growth.

The company’s net loss narrowed by 11% YoY to $79.4 million for the first quarter of fiscal 2024, primarily driven by the higher revenue from the company’s networked charging systems.

According to a study published by BloombergNEF, ChargePoint led the charging infrastructure market in the United States in February 2023.