Achieved Key Milestone with Positive Adjusted
EBITDA in Q4 and 2H23
Expect to Generate at Least $50 Million of
Operating Cash Flow in 2024
Awarded PowerBidder™ Pro Contract by Mercuria
Energy Trading
Outlook
- Expect to achieve positive adjusted EBITDA of between $5
million and $20 million in 20241
- Project at least $50 million in operating cash flow generation
for the full year 2024 with no equity issuance
Fourth Quarter and Full Year 2023 Financial and Operating
Highlights
Financial Highlights – Fourth Quarter 2023
- Revenue of $167.4 million, up from $155.5 million (+8%) in Q4
2022
- GAAP gross margin of 7%, down from 8% in Q4 2022
- Non-GAAP gross margin of 13%, up from 11% in Q4 2022
- Net loss of $37.7 million versus net loss of $35.3 million in
Q4 2022
- Adjusted EBITDA of $4.6 million versus $(9.5) million in Q4
2022
- Ended Q4 2023 with $113.6 million in cash, cash equivalents,
and short-term investments
Financial Highlights - Full Year 2023
- Revenue of $461.5 million, up from $363.0 million (+27%) for
full year 2022
- GAAP gross margin of 1%, versus 9% for full year 2022
- Non-GAAP gross margin of 15%, versus 13% for full year
2022
- Net loss of $140.4 million versus net loss of $124.1 million
for full year 2022
- Adjusted EBITDA of $(19.5) million versus $(46.0) million for
full year 2022
Operating Highlights – Fourth Quarter 2023 and Full Year
2023
- Bookings of $256.1 million in Q4 2023, versus $457.5 million
(-44%) in Q4 2022
- Bookings of $1.53 billion in full year 2023, up from $1.06
billion (+44%) in full year 2022
- Contracted backlog of $1.9 billion at end of Q4 2023, up from
$969.0 million (+99%) at end of Q4 2022
- Contracted storage assets under management (AUM) of 5.5
gigawatt hours (GWh) at end of Q4 2023, up from 5.0 GWh (+10%) at
end of Q3 2023 and 3.1 GWh (+77%) at end of 2022
- Solar monitoring AUM of 27.5 gigawatts (GW), up from 26.3 GW
(+5%) at the end of Q3 2023 and 25.0 GW (+10%) at the end of
2022
- Contracted Annual Recurring Revenue (CARR) of $91.0 million, up
from $87.5 million (+4%) at end of Q3 2023 and $65.3 million (+39%)
at end of 2022
Stem, Inc. (“Stem” “we” or the “Company”) (NYSE: STEM), a global
leader in artificial intelligence (AI)-driven clean energy
solutions and services, announced today its financial results for
the three and twelve months ended December 31, 2023. Reported
results in this press release reflect AlsoEnergy’s operations from
February 1, 2022.
John Carrington, Chief Executive Officer of Stem, commented, “We
are proud to report that Stem reached our commitment to deliver
positive adjusted EBITDA in the second half of 2023. We
accomplished our goal through increased margins and ongoing
operating cost discipline. We believe we are in a strong position
to generate positive operating cash flow driven by our software
technology leadership.
“Underlying demand for our market-leading solutions remains
strong, as evidenced by another solid quarter of bookings, which
drove our contracted backlog near $2 billion. In September, we
introduced Athena® PowerBidder Pro, an exciting new SaaS product
for participation in wholesale energy markets, and today I am
pleased to announce our first PowerBidder Pro contract with
Mercuria, a leading energy trader. Our customers continue to value
our differentiated services, as indicated by our high retention
rates and top quartile net promoter scores.
“We are introducing our full year 2024 financial and operating
outlook. For the year, we forecast adjusted EBITDA of between $5
million and $20 million and positive operating cash flow of at
least $50 million. We also expect strong growth in revenue,
bookings, CARR and AUM. Finally, we expect to achieve our plan
without needing to issue equity.
“The management team and I are deeply focused on three guiding
principles in 2024: extending our technology leadership position,
building software services revenue, and profitable growth.”
________________________________
1 See the section below titled “Reconciliations of Non-GAAP
Financial Measures” for information regarding why the Company is
unable to reconcile adjusted EBITDA guidance to its most comparable
financial measure calculated in accordance with GAAP.
Key Financial Results and Operating
Metrics
(in $ millions unless otherwise
noted):
Three Months Ended December
31,
Twelve Months Ended December
31,
2023
2022
2023
2022
(in millions)
(in millions)
Key Financial Results
Revenue (1)
$
167.4
$
155.5
$
461.5
$
363.0
GAAP Gross Profit
$
11.0
$
12.6
$
3.6
$
33.1
GAAP Gross Margin (%)
7
%
8
%
1
%
9
%
Non-GAAP Gross Profit*
$
22.2
$
17.0
$
75.1
$
47.3
Non-GAAP Gross Margin (%)*
13
%
11
%
15
%
13
%
Net Loss
$
(37.7
)
$
(35.3
)
$
(140.4
)
$
(124.1
)
Adjusted EBITDA*
$
4.6
$
(9.5
)
$
(19.5
)
$
(46.0
)
Key Operating Metrics
Bookings
$
256.1
$
457.5
$
1,532.4
$
1,056.9
Contracted Backlog**
$
1,929.3
$
969.0
$
1,929.3
$
969.0
Contracted Storage AUM (in GWh)(2)**
5.5
3.1
5.5
3.1
Solar Monitoring AUM (in GW)**
27.5
25.0
27.5
25.0
CARR**
$
91.0
$
65.3
$
91.0
$
65.3
(1) Revenue, gross profit, and net loss were negatively impacted
by a $35.1 million net reduction in revenue during the year ended
December 31, 2023 and by excess supplier costs and resulting
liquidated damages, as discussed below.
(2) Contracted storage AUM as of December 31, 2022 has been
adjusted from 2.5 GWh, as previously disclosed, to 3.1 GWh. Revised
AUM reflects adjustments to total GWh of energy storage as a result
of revisions to the contracted system configuration or changes in
hardware specifications due to updates from the original equipment
manufacturer.
*Non-GAAP financial measures. Adjusted EBITDA and non-GAAP gross
profit and non-GAAP margin have been adjusted to exclude the impact
of the reduction in revenue, excess supplier costs and resulting
liquidated damages as discussed below. See the section below titled
“Use of Non-GAAP Financial Measures” for details and the section
below titled “Reconciliations of Non-GAAP Financial Measures” for
reconciliations.
**At period end.
Fourth Quarter and Full Year 2023 Financial and Operating
Results
Financial Results
Fourth quarter 2023 revenue increased 8% to a record $167.4
million, versus $155.5 million in the fourth quarter of 2022. Full
year 2023 revenue increased 27% to a record $461.5 million versus
$363.0 million in full year 2022. Higher storage hardware revenue
from Front-of-the-Meter (“FTM”) partnership agreements drove a
majority of the year-over-year increase, in addition to higher
solar asset performance revenue.
Fourth quarter 2023 GAAP gross profit was $11.0 million, or 7%,
versus $12.6 million, or 8%, in the fourth quarter of 2022, and
GAAP gross loss of $(20.3) million, or (15)%, in the third quarter
of 2023. Full year 2023 GAAP gross profit was $3.6 million, or 1%,
versus full year 2022 GAAP gross profit of $33.1 million, or 9%.
The year-over-year decrease in GAAP gross profit for the fourth
quarter of 2023 resulted primarily from lower Services gross profit
due to lower project services revenue. The year-over-year decrease
for the full year resulted primarily from a $35.1 million net
reduction in revenue, as described below.
Fourth quarter 2023 non-GAAP gross profit was $22.2 million, or
13%, versus $17.0 million, or 11%, in the fourth quarter of 2022,
and $21.4 million, or 12% in the third quarter of 2023. Full year
2023 non-GAAP gross profit was $75.1 million, or 15% versus full
year 2022 non-GAAP gross profit of $47.3 million, or 13%. The
year-over-year increase in non-GAAP gross profit for the fourth
quarter and full year of 2023 resulted primarily from higher
sales.
Fourth quarter 2023 net loss was $37.7 million versus fourth
quarter 2022 net loss of $35.3 million. Full year 2023 Net Loss was
$140.4 million versus full year 2022 net loss of $124.1 million.
The year-over-year increase in net loss for the fourth quarter of
2023 was driven by lower gross profit and higher interest expense.
The year-over-year increase for the full year of 2023 resulted
primarily from a $35.1 million net reduction in revenue as
described below.
Fourth quarter 2023 adjusted EBITDA was $4.6 million compared to
$(9.5) million in the fourth quarter of 2022. Full year 2023
adjusted EBITDA was $(19.5) million compared to $(46.0) million in
full year 2022. The improvement in adjusted EBITDA, including the
first-time achievement of positive adjusted EBITDA in the fourth
quarter and second half of 2023, was due to an increase in sales,
increased gross margins, and lower cash operating costs.
The Company ended the fourth quarter of 2023 with $113.6 million
in cash, cash equivalents, and short-term investments, consisting
of $105.4 million in cash and cash equivalents and $8.2 million in
short-term investments, as compared to $125.4 million in cash, cash
equivalents, and short-term investments at the end of the third
quarter 2023. The primary drivers of the sequential decrease in
cash were increased accounts receivable, which is expected to be
collected in the near-term, and decreased accounts payable.
Operating Results
Contracted backlog was $1.93 billion at the end of the fourth
quarter of 2023, compared to $1.84 billion as of the end of the
third quarter of 2023, representing a 5% sequential increase. The
increase in contracted backlog in the fourth quarter of 2023
resulted from quarterly bookings of $256 million, partially offset
by revenue recognition and contract cancellations and amendments.
Bookings of $256 million in the fourth quarter of 2023 decreased by
44% year-over-year versus $458 million in fourth quarter 2022. Full
year 2023 bookings of $1.53 billion increased 44% versus full year
2022 bookings of $1.06 billion.
Fourth quarter 2023 contracted storage AUM increased 77%
year-over-year and 10% sequentially to 5.5 GWh, driven by new
contracts.
Fourth quarter 2023 CARR increased to $91.0 million, up from
$87.5 million as of the end of the third quarter of 2023, a 4%
sequential increase.
The following table provides a summary of backlog at the end of
the fourth quarter of 2023, compared to backlog at the end of the
third quarter of 2023 ($ millions):
End of 3Q23
$
1,836.6
Add:
Bookings
256.1
Less:
Hardware revenue
(152.5
)
Software/services
(11.7
)
Cancellations
(2.4
)
Amendments/other
3.2
End of 4Q23
$
1,929.3
Recent Business Highlights
On November 16, 2023, the Company announced that Frost &
Sullivan, a leading global research and growth consulting firm, has
awarded Stem its 2023 New Product Innovation Award in the North
America energy asset performance optimization industry. Frost &
Sullivan’s independent evaluation credits Stem’s continued research
and development, innovative software solutions, and strong
commitment to proactively support customers as key differentiators
in selecting the Company for the recognition. In addition, Frost
& Sullivan states that Stem has earned the “trust and loyalty
of businesses and utilities worldwide,” and that “Stem is
well-positioned to drive the energy asset performance optimization
space into its next growth phase, capturing market share and
sustaining its leadership in the coming years.”
On December 15, 2023, the Company announced the results of its
ERCOT benchmarking analysis from 2022. The analysis demonstrated
that Athena’s advanced optimization capability unlocks significant
revenue potential. In the backcast simulations, Athena outperformed
six competitors in revenue attainment by an average of 28%.
Athena’s optimization platform captured 75% of the theoretical
maximum revenue vs competitors at 61% and the platform’s stochastic
price forecasts enabled a 53% uplift in revenue compared to a naïve
persistence-based approach. This analysis uncovered and modeled key
factors determining the economic success of storage in the ERCOT
wholesale market and modeled the Athena platform’s performance
managing bid optimization against a set of competitors in
ERCOT.
On February 28, 2024, the Company announced that its Athena
PowerBidder Pro application had been selected by Mercuria Energy
Trading, a leading global energy trader, to support bid
optimization management for one of its energy storage systems (ESS)
in ERCOT. Under this software-only contract, Mercuria will leverage
PowerBidder Pro’s combination of configurability, cutting-edge
analytics, advanced price forecasting and bid optimization, and
seamless automation to develop customized trading strategies for
its energy storage assets to participate in ERCOT. Stem’s
PowerBidder Pro offers Mercuria access to real-time performance
metrics, industry-leading analytics, and customizable
configurations necessary to tailor trading strategies to ESS
constraints, contractual obligations, risk management objectives,
and emergent market conditions. As Mercuria’s ESS portfolio grows
to meet its corporate objectives, PowerBidder Pro offers a scalable
solution to seamlessly manage trading strategies across its entire
portfolio, including across different ISO markets.
Outlook
The Company is introducing full-year 2024 guidance ranges as
follows ($ millions, unless otherwise noted):
Revenue
$600 - $700
Non-GAAP Gross Margin (%)
15% - 20%
Adjusted EBITDA
$5 - $20
Bookings
$1,500 - $2,000
CARR (year-end)
$115 - $130
Operating Cash Flow
Greater than $50
*See the section below titled “Reconciliations of Non-GAAP
Financial Measures” for information regarding why Stem is unable to
reconcile Non-GAAP Gross Margin and Adjusted EBITDA guidance to
their most comparable financial measures calculated in accordance
with GAAP.
The Company’s full year 2024 Revenue projected quarterly
performance are as follows:
Metric
Q1
Q2
Q3
Q4
Revenue
8%
10%
32%
50%
Additional Factors Affecting our Business and
Operations
Stem continues to diversify its supply chain, integrate
additional energy technologies, and deploy a portion of its balance
sheet to help position the Company to meet the expected significant
growth in customer demand. However, we are subject to risk and
exposure from the evolving macroeconomic, geopolitical and business
environment, including the effects of increased global inflationary
pressures and interest rates, potential import tariffs, potential
economic slowdowns or recessions, the prospect of a shutdown of the
U.S. federal government, and geopolitical pressures, including the
Russia-Ukraine armed conflict, rising tensions between China and
the United States, and unknown effects of current and future trade
and other regulations. We regularly monitor the direct and indirect
effects of these circumstances on our business and financial
results, although there is no guarantee of the extent to which we
will be successful in these efforts.
Use of Non-GAAP Financial Measures
In addition to financial results determined in accordance with
U.S. generally accepted accounting principles (“GAAP”), this
earnings press release contains the following non-GAAP financial
measures: adjusted EBITDA, non-GAAP gross profit and non-GAAP gross
margin.
We use these non-GAAP financial measures for financial and
operational decision-making and to evaluate our operating
performance and prospects, develop internal budgets and financial
goals, and to facilitate period-to-period comparisons. Management
believes that these non-GAAP financial measures provide meaningful
supplemental information regarding our performance and liquidity by
excluding certain expenses and expenditures that may not be
indicative of our operating performance, such as stock-based
compensation and other non-cash charges, as well as discrete cash
charges that are infrequent in nature. We believe that both
management and investors benefit from referring to these non-GAAP
financial measures in assessing our performance and when planning,
forecasting, and analyzing future periods. These non-GAAP financial
measures also facilitate management’s internal comparisons to our
historical performance and liquidity as well as comparisons to our
competitors’ operating results, to the extent that competitors
define these metrics in the same manner that we do. We believe
these non-GAAP financial measures are useful to investors both
because they (1) allow for greater transparency with respect to key
metrics used by management in its financial and operational
decision-making and (2) are used by investors and analysts to help
them analyze the health of our business. Our calculation of these
non-GAAP financial measures may differ from similarly-titled
non-GAAP measures, if any, reported by other companies. In
addition, other companies may not publish these or similar
measures. These non-GAAP financial measures should be considered in
addition to, not as a substitute for, or superior to, other
measures of financial performance prepared in accordance with GAAP.
For reconciliation of adjusted EBITDA and non-GAAP gross profit and
margin to their most comparable GAAP measures, see the section
below entitled “Reconciliations of Non-GAAP Financial
Measures.”
Definitions of Non-GAAP Financial Measures
We define adjusted EBITDA as net income (loss) attributable to
Stem before depreciation and amortization, including amortization
of internally developed software, net interest expense, further
adjusted to exclude stock-based compensation and other income and
expense items, including gain (loss) on the extinguishment of debt,
revenue constraint, reduction in revenue, excess supplier costs and
resulting liquidated damages, change in fair value of derivative
liability, transaction and acquisition-related charges, litigation
settlement, restructuring costs, and income tax provision or
benefit. The expenses and other items that we exclude in our
calculation of adjusted EBITDA may differ from the expenses and
other items, if any, that other companies may exclude when
calculating adjusted EBITDA.
We define non-GAAP gross profit as gross profit excluding
amortization of capitalized software, impairments related to
decommissioning of end-of-life systems, excess supplier costs and
resulting liquidated damages, reduction in revenue, and including
revenue constraint. Non-GAAP gross margin is defined as non-GAAP
gross profit as a percentage of revenue.
The Company generally records the full purchase order value as
revenue at the time of hardware delivery; however, for certain
non-cancelable purchase orders entered into during the first
quarter of 2023, the final settlement amount payable to the Company
is variable and indexed to the price per ton of lithium carbonate
in the first quarter of 2024 such that the Company may increase or
decrease the final prices in such purchase orders based on the
price per ton of lithium carbonate at final settlement. Lithium
carbonate is a key raw material used in the production of hardware
systems that the Company ultimately sells to customers. The total
dollar amount of such purchase orders for the indexed contracts is
approximately $52.0 million. However, due to the pricing structure
in such purchase orders, the Company recorded revenue in the first
quarter of 2023 of approximately $42.0 million in accordance with
GAAP, net of a $10.2 million revenue constraint, using a third
party forecast of the lithium carbonate trading value in the first
quarter of 2024. Because the Company had not previously used
indexed pricing in its customer contracts or purchase orders and
had not previously constrained revenue related to forecasted inputs
of its hardware systems, the Company believes that including the
$10.2 million revenue constraint from the first quarter of 2023
into non-GAAP gross profit enhances the comparability to the
Company’s non-GAAP gross profit in prior periods. Because the
purchase orders are variable and depend on the specified price per
ton of lithium carbonate at the time of final measurement at the
end of the first quarter of 2024, the Company is expected to
receive, pursuant to such purchase orders, final consideration of
at least approximately $34.0 million, subject to market conditions
upon settlement. The Company recorded the full cost of hardware
revenue for these indexed contracts in the first quarter of
2023.
In the fourth quarter of 2023, we incurred costs of $2.7 million
above initially agreed prices on the acquisition of certain
hardware systems from one of our suppliers, which resulted from
production delays by such supplier. This in turn caused fulfillment
and delivery delays on an order to one of our customers, as a
result of which we further incurred liquidated damages of $4.8
million under the customer contract. Because we had not previously
incurred costs above initially agreed upon prices with a hardware
supplier and were subsequently required to pay liquidated damages
to a customer, we excluded these two items from adjusted EBITDA and
non-GAAP gross profit to better facilitate comparisons of our
underlying operating performance across periods.
In certain customer contracts, the Company previously agreed to
provide a guarantee that the value of purchased hardware will not
decline for a certain period of time. Under this guarantee, if
these customers were unable to install or designate the hardware to
a specified project within such period of time, the Company would
be required to assist the customer in re-marketing the hardware for
resale by the customer. The guarantee provided that, in such cases,
if the customer resold the hardware for less than the amount
initially sold to the customer, the Company would be required to
compensate the customer for any shortfall in fair value for the
hardware from the initial contract price. The Company accounts for
such contractual terms and guarantees as variable consideration at
each measurement date. The Company updates its estimate of variable
consideration each quarter, including changes in estimates related
to such guarantees, for facts or circumstances that have changed
from the time of the initial estimate and, as a result, the Company
recorded a net revenue reduction of $35.1 million during the full
year 2023. Because these guarantees in customer contracts had not
previously resulted in a revenue reduction in prior periods, and
because the Company does not intend to provide such parent company
guarantees going forward, the Company believes that excluding the
impact of the $35.1 million net reduction in revenue from adjusted
EBITDA and non-GAAP gross profit enhances the comparability to
these metrics in prior periods. $16.9 million of the $35.1 million
net reduction in revenue referred to above related to deliveries of
hardware that occurred during fiscal year 2022, and $18.2 million
related to hardware deliveries that occurred during fiscal year
2023. Because these contractual terms and guarantees had not
previously resulted in a revenue reduction in prior periods, and
because we do not intend to provide such parent company guarantees
in customer contracts going forward, we believe that excluding the
impact of the $35.1 million net reduction in revenue from adjusted
EBITDA and non-GAAP gross profit enhances the comparability to
these metrics in prior periods.
We do not intend to provide new parent company guarantees in
customer contracts going forward. In addition, the Company does not
expect that future revenue reductions, if any, as a result of
outstanding guarantees will be material.
See the section below entitled “Reconciliations of Non-GAAP
Financial Measures.”
Conference Call Information
Stem will hold a conference call to discuss this earnings press
release and business outlook on Wednesday, February 28, 2024
beginning at 5:00 p.m. Eastern Time. The conference call and
accompanying slides may be accessed via a live webcast on a
listen-only basis on the Events & Presentations page of the
Investor Relations section of the Company’s website at
https://investors.stem.com/events-and-presentations. The call can
also be accessed live over the telephone by dialing (855) 327-6837,
or for international callers, (631) 891-4304 and referencing Stem.
An audio replay will be available shortly after the call until
March 28, 2024, and can be accessed by dialing (844) 512-2921 or
for international callers by dialing (412) 317-6671. The passcode
for the replay is 10022734. A replay of the webcast will be
available on the Company’s website at
https://investors.stem.com/overview for 12 months after the
call.
About Stem
Stem provides clean energy solutions and services designed to
maximize the economic, environmental, and resiliency value of
energy assets and portfolios. Stem’s leading AI-driven enterprise
software platform, Athena®, enables organizations to deploy and
unlock value from clean energy assets at scale. Powerful
applications, including AlsoEnergy’s PowerTrack, simplify and
optimize asset management and connect an ecosystem of owners,
developers, assets, and markets. Stem also offers integrated
partner solutions to help improve returns across energy projects,
including storage, solar, and EV fleet charging. For more
information, visit www.stem.com.
Forward-Looking Statements
This earnings press release, as well as other statements we
make, contains “forward-looking statements” within the meaning of
the federal securities laws, which include any statements that are
not historical facts. Such statements often contain words such as
“expect,” “may,” “can,” “believe,” “predict,” “plan,” “potential,”
“projected,” “projections,” “forecast,” “estimate,” “intend,”
“anticipate,” “ambition,” “goal,” “target,” “think,” “should,”
“could,” “would,” “will,” “hope,” “see,” “likely,” and other
similar words. Forward-looking statements address matters that are,
to varying degrees, uncertain, such as statements about our
financial and performance targets and other forecasts or
expectations regarding, or dependent on, our business outlook; our
ability to secure sufficient and timely inventory from suppliers;
our ability to meet contracted customer demand; our ability to
manage our supply chains and distribution channels; our joint
ventures, partnerships and other alliances; forecasts or
expectations regarding energy transition and global climate change;
reduction of greenhouse gas (“GHG”) emissions; the integration and
optimization of energy resources; our business strategies and those
of our customers; our ability to retain or upgrade current
customers, further penetrate existing markets or expand into new
markets; our ability to manage our supply chains and distribution
channels; the effects of natural disasters and other events beyond
our control; the direct or indirect effects on our business of
macroeconomic factors and geopolitical instability, such as the
ongoing conflict in Ukraine; the expected benefits of the Inflation
Reduction Act of 2022 on our business; and our future results of
operations, including adjusted EBITDA and the other metrics
presented under Outlook. Such forward-looking statements are
subject to risks, uncertainties, and other factors that could cause
actual results to differ materially from those expressed or implied
by such forward-looking statements, including but not limited to
our inability to secure sufficient and timely inventory from our
suppliers, as well as contracted quantities of equipment; our
inability to meet contracted customer demand; supply chain
interruptions and manufacturing or delivery delays; disruptions in
sales, production, service or other business activities; general
macroeconomic and business conditions in key regions of the world,
including inflationary pressures, general economic slowdown or a
recession, rising interest rates, changes in monetary policy,
instability in financial institutions, and the prospect of a
shutdown of the U.S. federal government; the direct and indirect
effects of widespread health emergencies on our workforce,
operations, financial results and cash flows; geopolitical
instability, such as the ongoing conflict in Ukraine; the results
of operations and financial condition of our customers and
suppliers; pricing pressures; severe weather and seasonal factors;
our inability to continue to grow and manage our growth
effectively; our inability to attract and retain qualified
employees and key personnel; our inability to comply with, and the
effect on our business of, evolving legal standards and
regulations, including those concerning data protection, consumer
privacy, sustainability, and evolving labor standards; risks
relating to the development and performance of our energy storage
systems and software-enabled services; our inability to retain or
upgrade current customers, further penetrate existing markets or
expand into new markets; the risk that our business, financial
condition and results of operations may be adversely affected by
other political, economic, business and competitive factors; and
other risks and uncertainties discussed in this release and in our
most recent Forms 10-K, 10-Q and 8-K filed with or furnished to the
SEC. If one or more of these or other risks or uncertainties
materialize (or the consequences of any such development changes),
or should our underlying assumptions prove incorrect, actual
results or outcomes, or the timing of these results or outcomes,
may vary materially from those reflected in our forward-looking
statements. Forward-looking statements and other statements in this
release regarding our environmental, social, and other
sustainability plans and goals are not an indication that these
statements are necessarily material to investors or required to be
disclosed in our filings with the SEC. In addition, historical,
current, and forward-looking environmental, social, and
sustainability-related statements may be based on standards for
measuring progress that are still developing, internal controls and
processes that continue to evolve, and assumptions that are subject
to change in the future. Statements in this earnings press release
are made as of the date of this release, and Stem disclaims any
intention or obligation to update publicly or revise such
statements, whether as a result of new information, future events,
or otherwise, except as required by law.
Source: Stem, Inc.
STEM, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(in thousands, except share and
per share amounts)
December 31, 2023
December 31, 2022
ASSETS
Current assets:
Cash and cash equivalents
$
105,375
$
87,903
Short-term investments
8,219
162,074
Accounts receivable, net of allowances of
$4,904 and $3,879 as of December 31, 2023 and December 31, 2022,
respectively
302,848
223,219
Inventory, net
26,665
8,374
Deferred costs with suppliers
20,555
43,159
Other current assets (includes $73 and $74
due from related parties as of December 31, 2023 and December 31,
2022, respectively)
9,303
8,026
Total current assets
472,965
532,755
Energy storage systems, net
74,418
90,757
Contract origination costs, net
11,119
11,697
Goodwill
547,205
546,649
Intangible assets, net
157,146
162,265
Operating lease right-of-use assets
12,255
12,431
Other noncurrent assets
81,869
65,339
Total assets
$
1,356,977
$
1,421,893
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable
$
78,277
$
83,831
Accrued liabilities
76,873
85,258
Accrued payroll
14,372
12,466
Financing obligation, current portion
14,835
15,720
Deferred revenue, current portion
53,997
64,311
Other current liabilities (includes $31
and $687 due to related parties as of December 31, 2023 and
December 31, 2022, respectively)
12,726
5,412
Total current liabilities
251,080
266,998
Deferred revenue, noncurrent
88,650
73,763
Asset retirement obligation
4,052
4,262
Notes payable, noncurrent
—
1,603
Convertible notes, noncurrent
523,633
447,909
Financing obligation, noncurrent
52,010
63,867
Lease liabilities, noncurrent
10,455
10,962
Other liabilities
416
362
Total liabilities
930,296
869,726
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.0001 par value;
1,000,000 shares authorized as of December 31, 2023 and December
31, 2022, respectively; zero shares issued and outstanding as of
December 31, 2023 and December 31, 2022, respectively
—
—
Common stock, $0.0001 par value;
500,000,000 shares authorized as of December 31, 2023 and December
31, 2022; 155,932,880 and 154,540,197 issued and outstanding as of
December 31, 2023 and December 31, 2022, respectively
16
15
Additional paid-in capital
1,198,716
1,185,364
Accumulated other comprehensive loss
(42
)
(1,672
)
Accumulated deficit
(772,494
)
(632,081
)
Total Stem's stockholders’ equity
426,196
551,626
Non-controlling interests
485
541
Total stockholders’ equity
426,681
552,167
Total liabilities and stockholders’
equity
$
1,356,977
$
1,421,893
STEM, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(in thousands, except share and
per share amounts)
Years Ended December
31,
2023
2022
2021
Revenue
Services and other revenue
$
62,548
$
52,143
$
20,463
Hardware revenue
398,967
310,837
106,908
Total revenue
461,515
362,980
127,371
Cost of revenue
Cost of services and other revenue
50,298
43,153
28,177
Cost of hardware revenue
407,552
286,735
97,947
Total cost of revenue
457,850
329,888
126,124
Gross profit
3,665
33,092
1,247
Operating expenses
Sales and marketing
51,556
48,882
19,950
Research and development
56,508
38,303
22,723
General and administrative
74,915
77,028
41,648
Total operating expenses
182,979
164,213
84,321
Loss from operations
(179,314
)
(131,121
)
(83,074
)
Other income (expense), net
Interest expense, net
(14,977
)
(10,468
)
(17,395
)
Gain (loss) on extinguishment of debt,
net
59,121
—
(5,064
)
Change in fair value of derivative
liability
(7,731
)
—
—
Change in fair value of warrants and
embedded derivatives
—
—
3,424
Other income, net
2,921
2,374
898
Total other income (expense), net
39,334
(8,094
)
(18,137
)
Loss before (provision for) benefit from
income taxes
(139,980
)
(139,215
)
(101,211
)
(Provision for) benefit from income
taxes
(433
)
15,161
—
Net loss
$
(140,413
)
$
(124,054
)
$
(101,211
)
Net loss per share attributable to Stem
common shareholders, basic and diluted
$
(0.90
)
$
(0.81
)
$
(0.96
)
Weighted-average shares used in computing
net loss per share to Stem common shareholders, basic and
diluted
155,583,957
153,413,743
105,561,139
STEM, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(in thousands)
Years Ended December
31,
2023
2022
2021
OPERATING ACTIVITIES
Net loss
$
(140,413
)
$
(124,054
)
$
(101,211
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization expense
46,275
45,434
24,473
Non-cash interest expense, including
interest expenses associated with debt issuance costs
2,602
1,901
9,648
Stock-based compensation
45,109
28,661
13,546
Change in fair value of derivative
liability
7,731
—
—
Change in fair value of warrant liability
and embedded derivative
—
—
(3,424
)
Non-cash lease expense
2,928
2,328
896
Accretion of asset retirement
obligations
234
243
229
Impairment loss of energy storage
systems
4,683
2,571
4,320
Loss on disposal of property, plant and
equipment
—
276
—
Impairment loss of project assets
176
502
—
Issuance of warrants for services
—
—
9,183
Net (accretion of discount) amortization
of premium on investments
(1,755
)
(123
)
664
Income tax benefit from release of
valuation allowance
(335
)
(15,100
)
—
Provision for accounts receivable
allowance
1,447
3,590
—
Net loss on investments
1,561
—
—
Gain on extinguishment of debt, net
(59,121
)
—
—
Other
(949
)
3
(50
)
Changes in operating assets and
liabilities:
Accounts receivable
(80,887
)
(155,817
)
(48,125
)
Inventory
(18,291
)
18,606
(1,877
)
Deferred costs with suppliers
30,322
(37,134
)
(7,540
)
Other assets
(18,036
)
(29,420
)
(17,243
)
Contract origination costs, net
(5,924
)
(9,612
)
(2,622
)
Project assets
(5,392
)
(3,711
)
—
Accounts payable
(5,241
)
53,260
16,329
Accrued expense and other liabilities
(15,762
)
62,210
17,007
Deferred revenue
4,573
51,005
(14,967
)
Operating lease liabilities, net
(2,912
)
(1,649
)
(502
)
Net cash used in operating activities
(207,377
)
(106,030
)
(101,266
)
INVESTING ACTIVITIES
Acquisitions, net of cash acquired
(1,847
)
(533,009
)
—
Purchase of available-for-sale
investments
(60,002
)
(220,640
)
(189,858
)
Proceeds from maturities of
available-for-sale investments
141,810
219,264
—
Proceeds from sales of available-for-sale
investments
73,917
10,930
16,011
Purchase of energy storage systems
(2,634
)
(2,606
)
(3,604
)
Capital expenditures on
internally-developed software
(14,097
)
(16,767
)
(5,970
)
Distribution from (purchase of) equity
method investment
85
(50
)
(1,212
)
Purchase of property and equipment
(1,505
)
(1,495
)
(600
)
Net cash provided by (used in) investing
activities
135,727
(544,373
)
(185,233
)
FINANCING ACTIVITIES
Proceeds from exercise of stock
options
276
1,276
148,532
Payments for taxes related to net share
settlement of stock options
—
(2,302
)
(12,622
)
Net contributions from Merger and PIPE
financing, net of transaction costs of $58,061
—
—
550,322
Proceeds from financing obligations
—
1,519
7,839
Repayment of financing obligations
(12,686
)
(10,306
)
(9,587
)
Proceeds from issuance of convertible
notes, net of issuance costs of $7,601, $0 and $14,299 for the
years ended December 31, 2023, 2022 and 2021, respectively
232,399
—
446,827
Repayment of convertible notes
(99,754
)
—
—
Purchase of capped call options
(27,840
)
—
(66,700
)
Proceeds from issuance of notes payable,
net of issuance costs of $0, $0 and $0 for the years December 31,
2021, 2020 and 2019, respectively
—
—
3,930
(Redemption of) investment from
non-controlling interests
(56
)
541
—
Repayment of notes payable
(2,101
)
—
(41,446
)
Net cash provided by (used in) financing
activities
90,238
(9,272
)
1,027,095
Effect of exchange rate changes on cash,
cash equivalents and restricted cash
(16
)
(202
)
242
Net increase (decrease) in cash, cash
equivalents and restricted cash
18,572
(659,877
)
740,838
Cash, cash equivalents and restricted
cash, beginning of year
87,903
747,780
6,942
Cash, cash equivalents and restricted
cash, end of period
$
106,475
$
87,903
$
747,780
STEM, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL
MEASURES
(UNAUDITED)
The following table provides a reconciliation of adjusted EBITDA
to net loss:
Three Months Ended December
31,
Twelve Months Ended December
31,
2023
2022
2023
2022
(in thousands)
(in thousands)
Net loss
$
(37,685
)
$
(35,273
)
$
(140,413
)
$
(124,054
)
Adjusted to exclude the following:
Depreciation and amortization (1)
15,036
15,430
51,134
48,783
Interest expense, net
4,892
2,039
14,977
10,468
Gain on extinguishment of debt, net
—
—
(59,121
)
—
Stock-based compensation
16,789
8,251
45,109
28,661
Revenue constraint (2)
—
—
10,200
—
Revenue reduction, net (3)
(2,326
)
—
35,051
—
Excess supplier costs and resulting
liquidated damages (4)
7,554
—
7,554
—
Change in fair value of derivative
liability
—
—
7,731
—
Transaction costs in connection with
business combination
—
—
—
6,068
Litigation settlement
—
—
—
(727
)
Provision for (benefit from) income
taxes
79
40
433
(15,161
)
Other expenses (5)
277
—
7,889
—
Adjusted EBITDA
$
4,616
$
(9,513
)
$
(19,456
)
$
(45,962
)
Adjusted EBITDA, as used in the Company's full year 2024
guidance, is a non-GAAP financial measure that excludes or has
otherwise been adjusted for items impacting comparability. The
Company is unable to reconcile projected adjusted EBITDA to net
income (loss), its most directly comparable forward-looking GAAP
financial measure, without unreasonable effort, because the Company
is unable to predict with a reasonable degree of certainty its
change in stock-based compensation expense, depreciation and
amortization expense, revenue constraint and other items that may
affect net loss. The unavailable information could have a
significant effect on the Company’s full year 2024 GAAP financial
results.
(1) Depreciation and amortization include depreciation and
amortization expense, impairment loss of energy storage systems,
and impairment loss of project assets.
(2) Refer to the discussion of revenue constraint in the
definition of non-GAAP gross profit provided above.
(3) Refer to the discussion of reduction in revenue in the
definition of non-GAAP gross profit provided above.
(4) Refer to the discussion of excess supplier costs and
resulting liquidation damages in the table provided below.
(5) Adjusted EBITDA for the year ended December 31, 2023
reflects other expenses of $7.9 million. Other expenses include
$5.6 million in accruals for sales taxes, $1.3 million for expenses
related to restructuring costs, $0.5 million for impairments, and
$0.5 million of other non-recurring expenses. Restructuring
expenses consisted of employee severance and other exit costs.
The following table provides a reconciliation of non-GAAP gross
profit and margin to GAAP gross profit and margin ($ in millions,
except for percentages):
Three Months Ended December
31,
Twelve Months Ended December
31,
2023
2022
2023
2022
Revenue
$
167.4
$
155.5
$
461.5
$
363.0
Cost of revenue
(156.4
)
(142.9
)
(457.9
)
(329.9
)
GAAP gross profit ($)
$
11.0
$
12.6
$
3.6
$
33.1
GAAP gross margin (%)
7
%
8
%
1
%
9
%
Non-GAAP gross profit
GAAP Revenue
$
167.4
$
155.5
$
461.5
$
363.0
Add: Revenue constraint (1)
—
—
10.2
—
Add: Revenue reduction, net (2)
(2.3
)
—
35.1
—
Add: Liquidated damages (3)
4.8
—
4.8
—
Subtotal
169.9
155.5
511.6
363.0
Less: Cost of revenue
(156.4
)
(142.9
)
(457.9
)
(329.9
)
Add: Amortization of capitalized software
& developed technology
3.7
3.1
13.5
10.7
Add: Impairments
2.3
1.3
5.2
3.5
Add: Excess supplier costs (3)
2.7
—
2.7
—
Non-GAAP gross profit ($)
$
22.2
$
17.0
$
75.1
$
47.3
Non-GAAP gross margin (%)
13
%
11
%
15
%
13
%
Non-GAAP gross margin as used in the Company's full year 2024
guidance, is a non-GAAP financial measure that excludes or has
otherwise been adjusted for items impacting comparability. The
Company is unable to reconcile projected non-GAAP gross margin to
GAAP gross margin, its most directly comparable forward-looking
GAAP financial measure, without unreasonable efforts, because the
Company is currently unable to predict with a reasonable degree of
certainty its change in amortization of capitalized software,
impairments, and other items that may affect GAAP gross margin. The
unavailable information could have a significant effect on the
Company’s full year 2024 GAAP financial results.
(1) Refer to the discussion of revenue constraint in the
definition of non-GAAP gross profit provided above.
(2) Refer to the discussion of reduction in revenue in the
definition of non-GAAP gross profit provided above.
(3) Refer to the discussion of excess supplier costs and
resulting liquidated damages in the definition of non-GAAP gross
profit provided above.
Key Definitions:
Item
Definition
Bookings
Total value of executed customer
agreements, as of the end of the relevant period (e.g. quarterly
bookings or annual bookings)
- Customer contracts are typically executed 6-24 months ahead of
installation
- The Booking amount typically includes:
- Hardware revenue, which is typically recognized at delivery of
system to customer,
- Services revenue, which represents total nominal software and
services contract value recognized ratably over the contract
period,
- Market participation revenue is excluded from booking
value
Contracted Backlog
Total value of bookings in dollars, as of
a specific date
- Backlog increases as new contracts are executed (bookings)
- Backlog decreases as integrated storage systems are delivered
and recognized as revenue
Contracted Assets Under
Management (“AUM”)
Total GWh of storage systems in operation
or under contract
Solar Monitoring AUM
Total GW of solar systems in operation or
under contract
Contracted Annual Recurring
Revenue (CARR)
Annual run rate for all executed software
services contracts, including contracts signed in the applicable
period for systems that are not yet commissioned or operating
Project Services
Professional services and revenue tied to
Development Company investments
Operating Cash Flow
Net cash provided by (used in) operating
activities. Does not represent the change in balance sheet cash
which will be further impacted by investing and financing
activities.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240227398694/en/
Stem Investor Contacts Ted Durbin, Stem Marc Silverberg,
ICR IR@stem.com
Stem Media Contacts Suraya Akbarzad, Stem
press@stem.com
Stem (NYSE:STEM)
과거 데이터 주식 차트
부터 4월(4) 2024 으로 5월(5) 2024
Stem (NYSE:STEM)
과거 데이터 주식 차트
부터 5월(5) 2023 으로 5월(5) 2024