![]() Consequently, according to management's commentary, it has turned ChargePoint into a "backlog" company. However, the company's growth could have been more robust sans the ongoing supply chain snarls. As a result, we think the company performed admirably and has proved the adoption and momentum of its products. Notably, the company demonstrated QoQ growth in FQ1, despite seasonally weaker comps, amid macro headwinds. Moreover, subscriptions continue to shine as it increased by 63% in FQ1, beating FQ4's 56.9%. Networked charging systems grew 122.2% YoY, eclipsing FQ4's 109%. Its key revenue segments continue to perform remarkably, as seen above. Despite a challenging macro environment, it also easily surpassed the consensus estimates of 87.7% topline growth, indicating sustained momentum. ChargePoint Sees Robust Recovery in H2'22ĬhargePoint revenue segments (Company filings)ĬhargePoint revenue segment change % (Company filings)ĬhargePoint reported revenue of $81.63M, up 101.5% in FQ1. Therefore, we reiterate our Speculative Buy rating on CHPT stock, with a price target (PT) of $17 (an implied upside of 36.5%). Still, investors should consider an allocation that's suitable for a speculative opportunity. In addition, ChargePoint relies on reliable secular growth drivers in EV charging and its early market leadership to scale rapidly. Therefore, the company has charted its path towards FCF profitability. ![]() However, the company has committed to FCF breakeven in FY25 (CY24). Notwithstanding, we emphasize that CHPT remains a highly speculative play, given its negative free cash flows (FCF) and GAAP profitability. As a result, we urge investors to look forward as CHPT stock attempts a reversal from its downtrend bias. Therefore, investors can use the post-earnings retracement to enter at a discount.įurthermore, despite the highly disappointing gross margins performance in Q1, we believe the market is looking forward to ChargePoint's execution in H2. We are pleased to inform readers that the bear trap has been validated. We suggested in our pre-earnings article that we were awaiting a double bottom bear trap market structure in its price action. Still, the company reiterated its full-year gross margins guidance, as it believes it can execute much better in H2'22 to compensate for Q1's miss. However, its adjusted gross margins came under significant pressure due to supply chain disruptions, higher costs, and logistics snarls. ( NYSE: CHPT) reported mixed results for FQ1'23, as it posted a solid quarter of revenue beat. OntheRunPhoto/iStock Editorial via Getty Images Investment ThesisĬhargePoint Holdings, Inc.
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