ChargePoint CEO Replaced, CFO Exits Amid EV Charging Network Revenue Shortfall, Layoffs
November 16, 2023 by Joe Panettieri
ChargePoint is changing CEOs, and CFO Rex Jackson has departed the company amid a major quarterly revenue shortfall at the electric vehicle (EV) charging network business.
Among the changes and business anecdotes to note:
CEO Change: Chief Operating Officer Rick Wilmer (pictured, top of page) is now president and CEO. Wilmer succeeds former CEO Pasquale Romano, who will "remain as an advisor to ensure a seamless transition."
CFO Departure: Chief Financial Officer Rex Jackson has departed the company, effective today. Mansi Khetani, ChargePoint’s senior VP of financial planning and analysis, has been named interim CFO. The company has kicked off an executive search to find a permanent CFO.
Revenues: The company expects to generate revenue of $108 million to $113 million for Q3 of fiscal 2024 -- far short of the previous expectation of $150 million to $165 million. The figures are particularly bad, considering Wall Street analysts in August 2023 forecast Q3 revenues of roughly $182 million. Actual results will be disclosed December 6.
In a prepared statement about ChargePoint's latest business performance, Wilmer said: "Our core markets of North America and Europe both came under pressure late in the third quarter, with revenue falling far short of expectations. Overall macroeconomic conditions, along with fleet and commercial vehicle delivery delays impacted anticipated deployments with government, auto dealership and workplace customers."
Describing the executive changes, Chairman Bruce Chizen said: “On behalf of the ChargePoint Board of Directors, we thank Mr. Romano and Mr. Jackson for their incredible contributions, and wish them the best in their future endeavors. We are fortunate to have Mr. Wilmer as a seasoned executive with a track record of success at ChargePoint to usher the company into its next chapter of growth.”
ChargePoint's new CEO has C-suite experience. He previously was CEO at Pliant Technology, Leyden Energy, Mojo Networks and Chowbotics.
Amid that backdrop, numerous EV charging technology companies, consulting firms and integrators need to reach scale to both compete and cooperate with the car companies on EV network projects. Among the recent moves to note:
August 2023: NaaS Technology, the first U.S. listed EV charging service company in China, acquired Charge Amps AB for US$66.4 million. Charge Amps is an integrated EV charging solutions provider headquartered in Sweden.
August 2023:ElectraMeccanica and Tevva are planning to merge. If the merger occurs, the combined company expects to generate annual revenue of $1.3 billion to $1.5 billion in 2028