Electric vehicle (EV) charging network provider ChargePoint Holdings Inc. (NYSE: CHPT) fired its CEO and CFO Thursday, then pre-announced third-quarter revenue that was far worse than expected. The company also expects to take a noncash impairment charge of $42 million when it reports final results on December 6. (These are the best cities in which to drive an electric vehicle.)

ChargePoint’s executive changes

Former CEO Pasquale Romano resigned his position and his board seat at the board’s request, and former CFO Rex Jackson “separated” from the company on Thursday. Former COO Rick Wilmer was appointed as CEO and president, and Mansi Khetani was named as interim CFO, effective immediately. Wilmer was also appointed to ChargePoint’s board of directors.

The former executives led an October at-the-market stock offer that netted some $232 million in fresh cash. Needless to say, the new stock diluted existing shareholders’ stakes. The company and its lead investor in the offering cut the value of the underlying convertible notes by 50%, raising questions about the company’s future, and the annual cash coupon on the convertible notes was increased from 3.5% to 7%. The payment-in-kind coupon jumped from 5% to 8.5%. Shares dropped by 15.8% the day the offering was announced.

Awful earnings coming

ChargePoint certainly released Thursday’s preliminary announcement of third-quarter results to provide some cover for its C-suite changes. New CEO Rick Wilmer said that sales in core markets fell “far short of expectations.” The company expected revenue of $150 million to $165 million. It now projects revenue of $108 million to $113 million. Analysts’ consensus estimate called for revenue of $150.49 million.

Wilmer’s first step is the noncash impairment charge. The next is “to better align inventory with current demand.” Wilmer also said that ChargePoint remains committed to generating positive adjusted EBITDA in the fourth quarter of calendar 2024.

ChargePoint noted cash and other liquidity totaling $397 million. It also forecast adjusted operating expenses for the third quarter in a range of $80 to $82 million. That is barely enough to cover expenses through the end of next year.

Analysts expect the company to report a loss per share of $0.13 when it releases final results next month. That is likely to be much too optimistic.

In Friday’s premarket session, ChargePoint stock traded down more than 30% at around $2.20. That would be a new 52-week low if it holds until the markets open. The stock’s 52-week high is $13.65.

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