NYSE$STEM

Stem Inc. · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Stem announced its first quarter 2024 results, which included a substantial increase in CARR-to-ARR conversion and the introduction of a next-generation asset performance management software suite. The company reaffirmed its full-year 2024 guidance for operating cash flow, adjusted EBITDA, gross margin, and bookings.

Stem's first quarter 2024 results showed a revenue decrease to $25.5 million due to a $33 million non-cash adjustment, but the company achieved a record non-GAAP gross margin and improved adjusted EBITDA year-over-year. They are accelerating the conversion of CARR-to-ARR and reaffirming full-year guidance for adjusted EBITDA and operating cash flow.

  • Revenue decreased to $25.5 million, impacted by a $33 million reduction due to updated contract guarantee valuations.
  • Non-GAAP gross margin increased to 24% from 19% in Q1 2023.
  • Bookings were $23.8 million, reflecting variability from large, utility-scale projects.
  • Contracted backlog was $1.6 billion, after efforts to upgrade profitability.

Headline financials

Total Revenue

$25.5M

Previous: $67.4M-62.2%
EPS

-$0.46

Previous: -$0.29-58.6%
Contracted Backlog

$20.9M

Previous: $1.24B-98.3%
Bookings

$37.6M

Previous: $364M-89.7%
Solar Operating AUM

26.9

No prior period
Adjusted EBITDA

-$12.2M

No prior period
Operating Cash Flow

-$600K

No prior period
Non-GAAP Gross Margin

24.0%

No prior period
Capital Expenditures

-$112K

Previous: -$1.79M+93.7%
Free Cash Flow

-$72.4M

Previous: -$46.6M-55.5%
Net Income

-$72.3M

Previous: -$44.8M-61.5%
Operating Income

-$68M

Previous: -$42.7M-59.5%
Gross Profit

-$24.2M

Previous: $994K-2533.7%
Cash & Equivalents

$113M

Previous: $118M-4.3%
Total Assets

$1.28B

Previous: $1.39B-7.8%
R&D Expense

$14.1M

No prior period
Stock-Based Comp

$8.37M

Previous: $7.2M+16.3%

Revenue & EPS history

Stem · Revenue · Quarterly

$25.5M

Q1 2024-62.2%vs Q1 2023
Beat estimate in 5 of 15 quarters(33%)
ActualEstimate

Forward guidance

The company is updating its full year 2024 guidance ranges. They reaffirm full year 2024 revenue projected quarterly performance.

Tailwinds

  • Reaffirming guidance for adjusted EBITDA
  • Reaffirming guidance for operating cash flow
  • Maintaining bookings target of $1.5-$2.0 billion for 2024
  • Expecting meaningful year-over-year growth in software services revenue.
  • Focus on strengthening balance sheet.

Headwinds

  • Full year revenue guidance has been adjusted downward dollar-for-dollar solely as a result of the $33 million reduction in revenue.
  • Revenue $567 - $667 million
  • Non-GAAP Gross Margin (%) 15% - 20%
  • Adjusted EBITDA $5 - $20 million
  • CARR (year-end) $115 - $130 million

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

-2.0%

Avg return

Earnings day

-4.6%

Avg return

5 days after

+2.4%

Avg return

30 days after

52%

13 / 25 earnings

Positive

+30.3%

Q1 2025

Best reaction

-40.5%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.1%-14.6%-28.0%
Q4 2025+21.2%+8.1%-13.8%
Q3 2025-28.0%-23.5%-25.1%
Q1 2025+30.3%+21.2%+17.8%
Q4 2024+13.1%-13.0%-24.6%
Q3 2024-30.2%-22.4%-27.5%
Q2 2024-40.5%-41.8%-53.9%
Q1 2024-26.5%-30.3%-28.1%
Q4 2023+4.7%-1.6%-14.5%
Q3 2023+10.9%+5.1%-0.3%
Q2 2023+6.1%+4.1%-21.3%
Q1 2023+11.5%+6.0%+36.1%
Q4 2022-19.0%-20.5%-36.5%
Q3 2022+1.5%-1.1%-0.3%
Q2 2022+23.9%+25.7%+21.5%
Q1 2022+6.5%-15.9%+6.8%
Q4 2021-10.2%-4.9%+11.0%
Q3 2021-0.7%-0.2%-20.7%
Q2 2020-14.5%-20.1%-20.9%
Q2 2021-14.5%-20.1%-20.9%
Q1 2021+6.9%+22.5%+77.1%
Q1 2020+6.9%+22.5%+77.1%
Q4 2020-12.0%-5.2%-3.8%
Q3 2020+0.0%+2.6%+76.9%
Q4 2019+0.0%+2.6%+76.9%
Q3 2016
Q2 2016
Q1 2016
Q4 2015
Q2 2015
Q1 2015
Q4 2014

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