ChargePoint Holdings Inc (NYSE: CHPT) is gaining momentum post-market after a strong Q2 revenue performance. The stock is currently trading 13% higher pre-market after the company announced strong Q2 revenue growth alongside a 15% increase in 2021 revenue guidance. Here are 3 key takeaways from the ChargePoint Q2 earnings release.
ChargePoint beats on revenue, CHPT stock gains momentum
Firstly, ChargePoint beat revenue expectations posting $56.1 million in Q2 revenue, compared to analysts expectations of $49.1 million. The revenue beat was driven by the vastly growing demand of Electric Vehicle charging stations in the United States and Europe. In particular, the companies Networked Charging revenue grew by 91% to $40.9 million in the second quarter. ChargePoint saw significant quarterly revenue growth in both North America and Europe across the commercial, fleet and residential verticals.
“We achieved record revenue, significantly grew our commercial, fleet and residential businesses, launched a charging integration with Mercedes, announced our agreement to acquire e-mobility technology provider has·to·be and acquired eBus and commercial vehicle management provider ViriCiti.”said Pasquale Romano, President and CEO of ChargePoint
ChargePoint earnings miss on EPS estimates
Despite strong revenue in the second quarter, the company reported a loss of $84.94 Million. ChargePoint had incurred additional costs in the second quarter including a $10.4 million loss from the change in fair value of warrant liabilities and $28.3 million in stock-based compensation expense.
With these additional expenses on the income statement, ChargePoint’s per-share loss of $0.27 was worse than the expected EPS loss of $0.13. Despite the lower EPS, investors were more interested in the strong revenue guidance for the remainder of 2021.
ChargePoint revenue guidance increased by 15%
ChargePoint caught the attention of Wallstreet after increasing their Q3 revenue guidance alongside the full year forecast. The company expects to generate between $60 – $65 million in revenue in the third quarter. For the remainder of 2021, the company expects to report $225 – $235 million in revenue, an increase from previous guidance of $195 – $205 million.
The improvement in revenue guidance is a positive sign for shareholders as ChargePoint are experiencing strong demand as a result of the current electric vehicle tailwinds in the United States, Canada and Europe. The $75 Billion EV infrastructure bill lead by Joe Biden’s administration is one example of the scale of which Governments are transitioning society towards sustainable electrification of vehicles.
The Bottom Line – ChargePoint earnings
Overall, the strong revenue performance and increased guidance for the calendar year are driving the stock price higher pre-market. Despite the companies larger than expected net loss, the one off expenses are not causing too much concern based on the market reaction. All eyes will be on CHPT stock over the next two quarters as the company continues to scale from macro-economic tailwinds.
The information above is not financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.
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