Shares of ChargePoint Holdings took a hit after the company announced that its third-quarter revenue would be lower than expected. Alongside this news, they also revealed changes in leadership, with the appointment of a new CEO and interim CFO.
Revenue Shortfall Leads to Plunge in Share Price
ChargePoint, a Campbell, Calif.-based electric vehicle charging infrastructure company, revised its third-quarter revenue estimate to be between $108 million and $113 million, down from the previously projected range of $150 million to $165 million. This news resulted in a significant drop in the company’s stock price, declining by 27.5% to $2.27 in after-hours trading.
Influential Factors Behind Lowered Guidance
Rick Wilmer, previously the chief operating officer of ChargePoint, took over as the CEO, replacing Pasquale Romano. Wilmer attributed the lower revenue forecast to various factors affecting their core markets in North America and Europe.
Wilmer stated that “overall macroeconomic conditions, along with fleet and commercial vehicle delivery delays impacted anticipated deployments with government, auto dealership, and workplace customers.” These challenges have contributed to the revenue shortfall for the third quarter.
Despite stepping down as CEO, Romano will continue to support the company in an advisory role.
Leadership Changes at ChargePoint
Alongside the appointment of Rick Wilmer as CEO, ChargePoint also confirmed the departure of Rex Jackson, its former chief financial officer. The company has initiated a search for a new CFO while Mansi Khetani, the senior vice president of financial planning, takes on the role of interim CFO.
Moving Forward with Determination
ChargePoint’s recent struggles demonstrate the obstacles faced by businesses in the electric vehicle charging infrastructure market. However, their adjustments in leadership reflect a proactive approach to address these challenges. With a new CEO and interim CFO in place, ChargePoint is focused on stabilizing its operations and pursuing long-term growth.