NYSE$STEM

Stem Inc. · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Announced third quarter 2023 results, featuring record bookings and strategic partnerships.

Stem reported a strong third quarter with record bookings of $676.4 million, a significant increase in contracted backlog to $1.84 billion, and growth in contracted storage and solar monitoring AUM. Revenue increased to $133.7 million, but was impacted by a $37.4 million reduction. The company is optimistic about achieving adjusted EBITDA positive in 2024 and highlighted a major technology and commercial alliance with SB Energy.

  • Record Q3 bookings of $676.4 million, approximately 2x the guidance.
  • Contracted backlog reached a record of $1.84 billion.
  • Contracted storage AUM increased to 5.0 GWh.
  • CARR increased to $87.5 million.

Headline financials

Total Revenue

$134M

Previous: $99.5M+34.4%
EPS (adj)

-$0.49

Previous: -$0.22-122.7%
Contracted Backlog

$1.84B

Previous: $817M+124.7%
Bookings

$676M

Previous: $223M+203.5%
Capital Expenditures

-$3.31M

Previous: -$1.96M-68.8%
Free Cash Flow

-$80.4M

Previous: -$36.2M-121.8%
Net Income

-$77.1M

Previous: -$34.3M-124.8%
Operating Income

-$68.3M

Previous: -$32.6M-109.4%
Gross Profit

-$20.3M

Previous: $9.13M-322.3%
Cash & Equivalents

$97.1M

Previous: $100M-3.0%
Total Assets

$1.4B

Previous: $1.42B-1.3%
R&D Expense

$14.4M

No prior period
Stock-Based Comp

$11.2M

Previous: $7.68M+45.8%

Revenue & EPS history

Stem · Revenue · Quarterly

$134M

Q3 2023+34.4%vs Q3 2022
Beat estimate in 5 of 15 quarters(33%)
ActualEstimate

Forward guidance

Stem is updating its full-year 2023 guidance.The Company expects to achieve adjusted EBITDA positive in 2H 2023 and full year adjusted EBITDA positive in 2024, with no expectation of a need for additional equity issuance to achieve goal.

Tailwinds

  • Revenue growth poised for strong momentum.
  • Q3 2023 bookings of $676.4 million (~2x guidance for the quarter).
  • Solar asset performance management backlog up +41% YoY.
  • Service revenue growth expected to accelerate; SB Energy agreement on software and services for multi-GWh development pipeline.
  • Engaged with supply chain partners, including U.S. domestic manufacturers, with expected double-digit declines in costs and improved payment terms.

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 Q3 2023

Historical avgQ3 2023

-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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