Electric vehicle charging network company ChargePoint Holdings (NYSE:CHPT) reported its fiscal 2022 second-quarter results last night, and investors cheered the news. The company's shares jumped 12% early Thursday, and though trimming some of those gains, remained up 8.3% as of 2 p.m. EDT.
ChargePoint is one of several companies that recently went public through a merger with a special purpose acquisition company (SPAC) projecting significant growth in its business. Investors jumped in trying to get a piece of the rapidly growing electric vehicle sector. Prior to going public earlier this year, ChargePoint told prospective investors it believed its revenue would soar from about $135 million in 2020 to almost $1 billion by 2024, and to more than $2 billion in 2026. Yesterday's financial update included a boost to this year's revenue guidance, giving investors hope the company remains on track to accomplish its lofty growth estimates.
ChargePoint said its quarterly revenue grew 61% year over year, and raised its full-year revenue guidance by 15% at the midpoint of the range to $230 million. Company President and CEO Pasquale Romano said in a statement that ChargePoint "significantly grew our commercial, fleet, and residential businesses."
Accomplishments in the period included launching a charging agreement with Mercedes-Benz USA, acquiring an electric bus and commercial vehicle management provider, and an agreement to acquire another e-mobility technology provider.
ChargePoint still trades at lofty levels. The company still hasn't produced profits, and even with the boosted guidance, it trades at a price-to-sales ratio of 32 based on the new 2021 sales projection. Investors should know this is a long-term, speculative holding. But raising guidance this early in its life cycle is a promising sign, helping to give shares a boost today.