NYSE$STEM

Stem Inc. · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Announced second quarter 2024 results and revised full year 2024 guidance.

Stem's Q2 2024 revenue was $34.0 million, a 63% decrease year-over-year, primarily due to project timeline extensions. The company reported a net loss of $582.3 million, driven by a one-time non-cash impairment of goodwill. Despite the revenue decline, GAAP gross margin improved to 28%, and the company is revising its full year 2024 guidance.

  • Revenue decreased 63% year-over-year to $34.0 million.
  • Net loss was $582.3 million, impacted by a one-time non-cash impairment of goodwill.
  • GAAP gross margin improved to 28%, up from 13% in Q2 2023.
  • Contracted backlog reached $1.6 billion, up 14% year-over-year.

Headline financials

Total Revenue

$34M

Previous: $92.9M-63.4%
EPS

-$3.59

Previous: -$0.26-1280.8%
ARR

$48.1M

No prior period
Solar Operating AUM

26.9

No prior period
Storage Operating AUM

1.2

No prior period
Adjusted EBITDA

-$11.3M

No prior period
Operating Cash Flow

-$11.9M

No prior period
GAAP Gross Margin

28.0%

No prior period
Non-GAAP Gross Margin

40.0%

No prior period
Capital Expenditures

-$177K

Previous: -$2.93M+94.0%
Free Cash Flow

-$582M

Previous: $16.2M-3696.9%
Net Income

-$582M

Previous: $19.1M-3145.0%
Operating Income

-$580M

Previous: -$34.9M-1562.9%
Gross Profit

$9.38M

Previous: $11.9M-21.0%
Cash & Equivalents

$89.6M

Previous: $75.4M+18.9%
Total Assets

$692M

Previous: $1.5B-54.0%
R&D Expense

$15.3M

No prior period
Stock-Based Comp

$6.81M

Previous: $9.92M-31.4%

Revenue & EPS history

Stem · Revenue · Quarterly

$34M

Q2 2024-63.4%vs Q2 2023
Beat estimate in 5 of 15 quarters(33%)
ActualEstimate

Forward guidance

Stem is updating its full year 2024 guidance due to recent financial results and expected continuation of interconnection and USDA funding delays. The company anticipates generating positive operating cash flow this year and does not foresee the need to raise additional equity.

Tailwinds

  • Expect to generate positive operating cash flow this year.
  • Do not anticipate the need to raise additional equity.
  • Focus on reducing costs and managing cash.
  • Building software services revenue.
  • Extending technology leadership position.

Headwinds

  • Revenue revised to $200 - $270 million (previously $567 - $667 million).
  • Non-GAAP Gross Margin revised to 25% - 30% (previously 15% - 20%).
  • Adjusted EBITDA revised to $(30) - $(20) million (previously $5 - $20 million).
  • Bookings revised to $600 - $1,100 million (previously $1,500 - $2,000 million).
  • CARR (year-end) revised to $100 - $110 million (previously $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 Q2 2024

Historical avgQ2 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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