• Revenue: $98 million for Q1, within guidance range.

• Non-GAAP Gross Margin: 31%, a new high, up 7 percentage points year-on-year.

• Subscription Gross Margin: Reached a record 60%.

• Network Charging Systems Revenue: $52 million, 53% of total revenue, down 20% year-on-year.

• Subscription Revenue: $38 million, 39% of total revenue, up 14% year-on-year.

• Other Revenue: $8 million, 8% of total revenue, down 31% sequentially.

• Non-GAAP Operating Expenses: $57 million, up 9% sequentially, down 15% year-on-year.

• Non-GAAP Adjusted EBITDA Loss: $23 million, compared to $36 million loss in the prior year.

• Cash on Hand: $196 million at quarter-end.

• Inventory Balance: Increased by $3 million to $212 million.

• Guidance for Q2 Revenue: $90 million to $100 million.

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

Release Date: June 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 first-quarter revenue of $98 million, aligning with their guidance range.

• Non-GAAP gross margin reached a new high of 31%, with subscription gross margin climbing to a record 60%, highlighting the strength of their SaaS-focused business model.

• The partnership with Eaton is expected to drive incremental revenue growth and offers a comprehensive end-to-end EV charging and power management solution.

• ChargePoint's new AC hardware architecture is set to enter the market at a competitive price point, potentially increasing market share and improving margins.

• ChargePoint has over 352,000 ports under management globally, with significant growth in Europe and strong partnerships with major automotive companies like General Motors and Mercedes Benz.

Negative Points

• Network charging systems revenue was flat sequentially and down 20% year-on-year, indicating challenges in this segment.

• Other revenue was down 31% sequentially and 8% year-on-year, primarily due to lower one-time project revenue.

• Europe's revenue contribution was lower than normal, largely due to weakness in Germany.

• Non-GAAP operating expenses increased by 9% sequentially, impacting overall profitability.

• The company faces macroeconomic headwinds, including tariff uncertainties and cautious customer spending, which could affect future growth.

Q & A Highlights

Q: With the Eaton partnership and the new AC product, how should we think about a return to growth on the top line for the new systems? A: Richard Wilmer, CEO: There are both positive and cautious factors at play. Macroeconomic conditions, tariffs, and policy uncertainties are headwinds. However, the Eaton partnership is expected to drive incremental growth. We aim to operationalize this relationship fully by fiscal Q3.