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ChargePoint declined to announce its first earnings since the De-SPAC merger

 Investors were less impressed with the first issue (NYSE: CHPT) as a public company, where ChargePoint fell 8{9e94f68c7aba91e2b1439815544d025b71d4ea2ba583cc36b6954ac70b8df99d} on Friday. I have not received it. Earlier this month, the EV charging specialist completed its merger with Energy Switchback Special Purpose Vehicle (SPAC). This is called a De-SPAC transaction. Electric vehicle stocks have been highly volatile over the past few weeks as interest rate fluctuations have affected the entire tech sector. Investors need to be aware of ChargePoint’s fourth-quarter financial results.

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Fourth-quarter sales were $ 42.4 million, less than a year. As a result, revenues for the full fiscal year 2021 were $ 146.5 million, slightly higher than in 2020, when sales were $ 144.5 million. When the merger with Switchback was first announced, nyse chpt at announced that the COVID-19 pandemic would negatively impact its core. With only $ 135 million in sales, actual profitability was slightly above internal expectations. Adjusted gross margin increased to 22.6{9e94f68c7aba91e2b1439815544d025b71d4ea2ba583cc36b6954ac70b8df99d} and ChargePoint reported an adjusted fourth-quarter net loss of $ 33.6 million. The adjusted net loss for fiscal 2021 was $ 117.8 million. At the end of the fiscal year at the end of January, ChargePoint had $ 145 million in cash. The company has a present value of US $ 615 million resulting in a merger with SPAC, including approximately US $ 317 million in cash and US $ 225 million in PIPE (private equity) excluding transaction costs. I have cash. Financing of futures contracts. The accounting policy for 2022 requires revenues of $ 195 million to $ 250 million, which is roughly the same as the previous estimate of $ 195 million. Due to seasonality, sales are expected to fall from $ 35 million to $ 40 million in the first quarter. CEO Pasquale Romano said in a statement, “With its strong balance sheet and low capital business model, ChargePoint is well-positioned to create value for our shareholders through various efforts to increase mobility in the consumer car and vehicle market.”

Dilutions Coming

The results themselves are almost as expected, but investors can also prepare for a dilution. ChargePoint is currently registered to issue an additional 25.3 million shares due to various warrant events. These warrants are often distributed to SPAC investors to facilitate investment. The number of shares issued before the issue of warrants is currently 277.8 million shares and is expected to increase to 330 million shares in the case of a financial derivative, which is expected to be diluted by about 9{9e94f68c7aba91e2b1439815544d025b71d4ea2ba583cc36b6954ac70b8df99d}. God said he was right. This will further strengthen your bottom line and give you more money to invest in your business. Long Term Charging Game

 It will take a while to write an article on ChargePoint

The company uses a light capital model where the site host pays most of the cost of installing an EV charging station, but nyse chpt is 100{9e94f68c7aba91e2b1439815544d025b71d4ea2ba583cc36b6954ac70b8df99d} connected to the software customer. Tech investors love consistent income, but it can take time for the network to grow and more lucrative subscription income. Total sale. This stimulates the growth of leverage and gross profit. GAAP gross margin is expected to exceed 40{9e94f68c7aba91e2b1439815544d025b71d4ea2ba583cc36b6954ac70b8df99d} in 2024, but GAAP gross margin for the prior fiscal year was 22.5{9e94f68c7aba91e2b1439815544d025b71d4ea2ba583cc36b6954ac70b8df99d}. After the COVID-19 bill was passed, the Biden administration and lawmakers could take note of the EV infrastructure bill. .. The President plans to build 500,000 electric vehicle charging stations over the next few years. ChargePoint, the dominant Tier 2 public distribution network in the United States, will be the primary recipient of government support. There are many other stocks such as nasdaq ftft at which you can invest.