Data News > ChargePoint Stock Plunges 25% After Revenue Warning and Workforce Reductions
- ChargePoint delays profitability goal by another year
- Company to cut costs and reduce workforce by 15%
- Mixed quarterly results and disappointing guidance lead to stock drop
- Revenue continues to fall, with double-digit drop expected in third quarter
- Shares tank after downbeat second-quarter sales report
Electric-vehicle charging company ChargePoint saw its stock plummet by 25% this week as it announced that it would be pushing back its profitability goal by up to another year. In an effort to cut costs and improve operational efficiency, the company also revealed plans to reduce its workforce by about 15%.
The stock took a hit after ChargePoint turned in mixed quarterly results and provided disappointing guidance. The company's revenue has been falling quarter after quarter, leading to concerns about its financial health. In fact, ChargePoint expects a double-digit drop in revenue for its upcoming third quarter.
Following the announcement of its second-quarter sales, ChargePoint Holdings Inc shares saw a significant decline in early trading. The company's report missed revenue estimates and offered a much lower guidance for the current period. Analysts noted that the 15% layoffs as part of cost-cutting measures could help create efficiencies for the struggling company.
Despite some improvement in operating losses, ChargePoint continues to struggle with significant losses, cash burn, and dilution. Management's efforts to focus on returning to revenue growth included the workforce reduction, but the goal of achieving positive non-GAAP adjusted EBITDA has now been delayed to fiscal 2026.
Overall, ChargePoint's stock took a sharp hit this week due to the revenue warning and workforce reductions. Investors will be closely watching the company's performance in the coming quarters to see if these measures will help turn its financial situation around.
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ChargePoint Stock Plunges 25% After Revenue Warning and Workforce Reductions
By KlickAnalytics Data Insights | September 5, 2024 08:08PM ET
Key Points
- ChargePoint delays profitability goal by another year
- Company to cut costs and reduce workforce by 15%
- Mixed quarterly results and disappointing guidance lead to stock drop
- Revenue continues to fall, with double-digit drop expected in third quarter
- Shares tank after downbeat second-quarter sales report
Electric-vehicle charging company ChargePoint saw its stock plummet by 25% this week as it announced that it would be pushing back its profitability goal by up to another year. In an effort to cut costs and improve operational efficiency, the company also revealed plans to reduce its workforce by about 15%.
The stock took a hit after ChargePoint turned in mixed quarterly results and provided disappointing guidance. The company's revenue has been falling quarter after quarter, leading to concerns about its financial health. In fact, ChargePoint expects a double-digit drop in revenue for its upcoming third quarter.
Following the announcement of its second-quarter sales, ChargePoint Holdings Inc shares saw a significant decline in early trading. The company's report missed revenue estimates and offered a much lower guidance for the current period. Analysts noted that the 15% layoffs as part of cost-cutting measures could help create efficiencies for the struggling company.
Despite some improvement in operating losses, ChargePoint continues to struggle with significant losses, cash burn, and dilution. Management's efforts to focus on returning to revenue growth included the workforce reduction, but the goal of achieving positive non-GAAP adjusted EBITDA has now been delayed to fiscal 2026.
Overall, ChargePoint's stock took a sharp hit this week due to the revenue warning and workforce reductions. Investors will be closely watching the company's performance in the coming quarters to see if these measures will help turn its financial situation around.
For more information:
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