ChargePoint Holdings Inc CHPT is getting slammed in after-hours trading after revealing the company’s preliminary results and a shake-up in its leadership.
Leadership Upheaval: ChargePoint has promoted Rick Wilmer to president and CEO, following a rough third quarter. Former CEO Pasquale Romano will remain as an advisor during the transition period.
The company reported that it expects third-quarter revenue between $108 million and $113 million, a significant shortfall compared to the initial projection of $150 million to $165 million. Contributing to its woes, ChargePoint anticipates a non-cash impairment charge of $42 million, resulting in a GAAP gross margin forecasted to be negative 21% to negative 23%.
As of Oct. 31, ChargePoint had $397 million in cash, equivalents, and restricted cash.
In a public statement, Wilmer attributed the revenue shortfall to struggles in North American and European markets, citing delays in fleet and commercial vehicle deliveries, and disruptions with government, auto dealership, and workplace customers.
ChargePoint has scheduled a release of its third-quarter financial results for Dec. 6 and will provide updated guidance then.
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CHPT Price Action: ChargePoint’s stock plummeted 27% to $2.27 in after-hours trading, as reported by Benzinga Pro.
Photo: Tony Webster from Flickr.