• Revenue: $102 million, above the midpoint of guidance range.
• Subscription Revenue: $38 million, up 14% year on year.
• Gross Margin: 30% on a non-GAAP basis, improved by eight percentage points year on year.
• Non-GAAP Operating Expenses: $52 million, down 42% from Q2 fiscal 2024.
• Non-GAAP Adjusted EBITDA Loss: $17 million, improved from $29 million in the previous quarter.
• Cash Balance: $225 million, increased by $5 million from the end of Q3.
• Charging Ports Managed: 342,000, including 120,000 in Europe and over 33,000 DC fast chargers.
• Cash Used for Operating Activities: $3 million, significantly reduced from $31 million in Q3.
• Inventory Balance: Decreased by $13 million to $209 million.

• Warning! GuruFocus has detected 7 Warning Signs with CHPT.

Release Date: March 04, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• ChargePoint Holdings Inc (NYSE:CHPT) reported revenue of $102 million for Q4, surpassing the midpoint of their guidance range.
• Subscription revenue increased by 14% year over year to $38 million, contributing to a higher gross margin.
• The company achieved a significant reduction in non-GAAP operating expenses, down 42% from Q2 of fiscal year 2024.
• ChargePoint Holdings Inc (NYSE:CHPT) managed to increase their cash balance by $5 million from the end of Q3.
• The company has diversified its manufacturing footprint, reducing potential impacts from tariffs and supply chain disruptions.

Negative Points

• Network charging systems revenue was flat sequentially and down 29% year over year.
• The company continues to face challenges with permitting and grid infrastructure, causing potential delays in project timelines.
• Despite improvements, ChargePoint Holdings Inc (NYSE:CHPT) still reported a non-GAAP adjusted EBITDA loss of $17 million.
• The competitive landscape remains challenging, with some market participants exiting the business.
• There is uncertainty regarding US federal funding for DC fast-charging infrastructure, although ChargePoint Holdings Inc (NYSE:CHPT) claims minimal reliance on it.

Q & A Highlights

Q: Can you talk about what the optimal working capital balance looks like for you guys? A: Mansi Khetani, Interim CFO: Typically, we generate positive working capital due to the SaaS effect of our subscription revenue, which helps significantly. Going forward, it balances out with inventory needs and payables, but this business doesn't require significant working capital investment.

Q: Can you discuss the competitive landscape and potential share gains? A: Richard Wilmer, CEO: We're monitoring the market closely. Different players are impacted differently based on their reliance on government subsidies. Some have exited the business, and we're paying attention to these shifts.

Q: Could you elaborate on the project pipeline for this fiscal year and its impact on revenue growth? A: Richard Wilmer, CEO: This year focuses on revenue growth and innovation. Improved vehicle selection and price points are expected to boost demand. We believe the transition to EVs is inevitable, driven by market forces rather than government programs.

Q: How has the mix of business evolved, and did it affect gross margin improvement? A: Mansi Khetani, Interim CFO: The mix remains similar, with commercial at 68%, fleet at 16%, and residential at 12%. The gross margin improvement was due to better hardware margins and higher subscription revenue, not mix changes.

Q: Are there any changes expected in your contract with USPS due to recent GSA moves? A: Richard Wilmer, CEO: No changes so far. We're continuing with USPS deployments but are monitoring any potential impacts from government policy changes.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.