Stem Stock Q1 2024 Financial Results: Insights & Achievements

Stem, Inc. (STEM) recently disclosed its financial results for the first quarter of 2024, along with key business achievements. Let’s delve into the financial overview and strategic advancements shaping Stem’s trajectory in the clean energy sector.

Stem Stock Financial Overview

Stem Stock reported a revenue of $25.5 million for Q1 2024, reflecting a significant decrease from $67.4 million (-62%) in Q1 2023. This decline primarily stems from the revised assessment of certain contractual guarantees related to equipment sales revenue recognized in 2022 and 2023.

Gross profit, as per GAAP, stood at $(24.2) million compared to $1.0 million in Q1 2023, mainly due to reduced net revenue. However, gross profit margin, excluding GAAP, improved to 24% from 19% in Q1 2023.

The company incurred a net loss of $72.3 million in Q1 2024, an increase from $44.8 million in Q1 2023. Adjusted EBITDA amounted to $(12.2) million compared to $(13.7) million in Q1 2023.

Operating cash flow for Q1 2024 was $(0.6) million, a significant improvement from $(35.8) million in Q1 2023. Despite these challenges, Stem ended Q1 2024 with cash, cash equivalents, and short-term investments totaling $112.8 million, slightly down from $113.6 million at the end of Q4 2023.

Operational and Strategic Insights

Stem order volume decreased to $23.8 million from $363.5 million in Q1 2023, primarily due to increased quarterly volatility associated with ongoing progress in implementing large utility-scale projects.

The backlog volume reduced to $1.6 billion, up from $1.2 billion (+33%) at the end of Q1 2023 and down from $1.9 billion (-16%) at the end of Q4 2023. This sequential reduction reflects efforts to enhance the profitability of backlog and focus on contracts with higher margins.

Managed storage capacity (AUM) reached 5.8 gigawatt-hours (GWh), a 5% increase from the end of Q4 2023.

Total solar monitoring capacity amounted to 26.9 gigawatts (GW), slightly lower than 27.5 GW (-2%) at the end of Q4 2023.

Contracted Annual Recurring Revenue (CARR) grew to $89.3 million, up from $71.5 million (+25%) at the end of Q1 2023 and down from $91.0 million (-2%) at the end of Q4 2023.

Stem, Inc. remains a global leader in AI-driven clean energy solutions and services. Despite financial challenges, Stem continues to innovate and drive sustainable energy solutions, leveraging artificial intelligence to transform the energy landscape.

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