ChargePoint reported disappointing second quarter results coupled with a 10% reduction in workforce as the EV charging company grapples with network reliability issues amid a steady cash burn.
The firm said it had $263.9 million in cash on the balance sheet, which includes $37.7 million of at-the-market share offering gross proceeds during the second quarter ended July 31, 2023.
In an effort to shore up costs, ChargePoint said it will be reducing its global workforce by approximately 10%, which should lead to annual savings of around $30 million.
During the quarter, ChargePoint’s revenue totaled $150 million, an increase of around 39% from the comparable year-ago quarter but missing estimates of nearly $153 million. Its net loss was $0.35 compared to the $0.14 loss estimated by analysts.
Investors reacted negatively to the results, sending shares down nearly 9% after hours.
The company provided revenue guidance of $150 to $165 million for the third quarter of fiscal 2024, indicating an anticipated increase of 26% compared to the previous year.
For the full fiscal year, ChargePoint expects revenue in the range of $605 to $630 million, representing a 32% expected increase.
ChargePoint said it is expecting to achieve positive non-GAAP Adjusted EBITDA by the end of calendar year 2024.