What happened
The shares of electric vehicle (EV) charging network company Volta (VLTA) plunged Monday morning, after it reported its fourth-quarter and full-year earnings last Friday. After dropping more than 10%, Volta shares were down 7.7% as of 1:27 p.m. ET.
So what
Volta announced that fourth-quarter revenue grew 45% and full-year 2021 revenue jumped 66% versus the comparable prior-year periods. Those results matched previous guidance and what analysts expected. But the net loss of $0.77 per share was much worse than the $0.15-per-share loss analysts had expected, according to MarketWatch. Volta also named an interim CEO after founder and former CEO Scott Mercer announced at the end of March that he was stepping down.
Image source: Volta.
Now what
Investors were shaken when the company announced Mercer's departure, especially after he also resigned his position on the board of directors. Volta shares plunged when that news was released, and they have continued to drop since.
Volta said Chief Revenue Officer Brandt Hastings will become interim CEO as the board conducts a formal search for a permanent replacement.
After that surprise news from several weeks ago, investors would have liked better results than what was reported for the fourth quarter. The higher-than-expected net loss was partially due to a 36% jump in costs of services year over year. That's higher than the 32% increase for the full year 2021. The company also reported a large increase in selling, general, and administrative (SG&A) expenses. SG&A costs in the fourth quarter alone represented half of total SG&A for the full year.
The positive news for investors is that the company's outlook for 2022 calls for an increase in full-year revenue of more than 132% at the midpoint of the guidance range. Investors will want expenses to be kept in check, however, and that's where the focus will likely be going forward.
