Technology

ChargePoint soars as EV charging network raises sales outlook on stronger residential and commercial demand

  • ChargePoint shares jumped on Thursday after the vehicle charging network raised its yearly sales view.
  • It now expects sales of $225 million-$235 million for fiscal year 2022, up from its previous outlook of $195 million-$205 million. 
  • Second-quarter revenue of $56.1 million was ahead of expectations but its loss of $0.29 missed estimates. 

ChargePoint shares surged Thursday after the vehicle charging network raised its yearly sales outlook and as second-quarter revenue came in ahead of expectations, offsetting a miss in quarterly earnings. 

Shares jumped as much as 16.8% to $24.79 in premarket trading, but had pared gains shortly after the opening bell. The stock was up about 6%, trading at $22.52 as of 9:40 a.m. ET Thursday. 

The company, which has more than 118,000 charging sites in North America and Europe, lifted its revenue view to $225 million to $235 million the fiscal year ending in January 2022 from its previous guidance of $195 million to $205 million. 

It made that move after revenue climbed by 61% to $56.1 million in the quarter ended July 31, from $35 million a year earlier. Analysts polled by FactSet had expected $41.9 million. Sales growth was significant in North America and Europe across commercial, fleet and residential channels, it said, and during the quarter the company began a charging integration with Mercedes. 

“Commercial customers of all types are investing in charging for their consumers, employees and visitors and demand for residential products has grown as vehicle arrivals accelerate,” the company said in its earnings report. For the third quarter, it expects of revenue of $60 million to $65 million. 

It posted a second-quarter loss of $0.29 a share, which was wider than the expected loss of $0.13 a share. 

ChargePoint’s report comes as US President Joe Biden is aiming for half of all new vehicles that are sold in 2030 to be zero-emissions vehicles, including battery-electric and plug-in hybrid electric cars. 

Shares of ChargePoint in mid-January hit a high of $46.30 but have been moving downward since, bringing the year-to-date loss to about 22%.

 

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