NYSE$STEM

Stem Inc. · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Announced third quarter 2024 results, implemented a new strategy, and increased ARR.

Stem reported a decrease in revenue to $29.3 million, down from $133.7 million in 3Q23, primarily due to reduced battery hardware sales and revised negotiated valuations of assets under certain hardware price guarantees. Despite the revenue decline, the company saw growth in software and services revenue and an increase in GAAP gross margin to 21%. The company is implementing a new strategy focused on software and services to drive more predictable and scalable growth. They are adjusting full year 2024 guidance for several key metrics.

  • Increased CARR by more than $3M in 3Q, representing +7% QoQ Growth.
  • GAAP gross margin increased to 21%, up from (15)% in 3Q23, driven by a higher percentage of software and services revenue.
  • Bookings decreased to $29.1 million, versus $676.4 million in 3Q23, driven primarily by lower battery hardware resale bookings.
  • Implemented a new strategy focused on software and services to drive more predictable, scalable growth and improved profitability.

Headline financials

Total Revenue

$29.3M

Previous: $134M-78.1%
EPS

-$0.91

Previous: -$0.49-85.7%
ARR

$51.4M

No prior period
Solar Operating AUM

28.5

No prior period
Storage Operating AUM

1.6

No prior period
Adjusted EBITDA

-$3.49M

No prior period
GAAP Gross Margin

21.0%

No prior period
Non-GAAP Gross Margin

46.0%

No prior period
Capital Expenditures

-$228K

Previous: -$3.31M+93.1%
Free Cash Flow

-$149M

Previous: -$80.4M-84.8%
Net Income

-$148M

Previous: -$77.1M-92.4%
Operating Income

-$144M

Previous: -$68.3M-111.6%
Gross Profit

$6.2M

Previous: -$20.3M+130.5%
Cash & Equivalents

$75.4M

Previous: $97.1M-22.4%
Total Assets

$538M

Previous: $1.4B-61.6%
R&D Expense

$11.1M

Previous: $14.4M-23.1%
Stock-Based Comp

$6.53M

Previous: $11.2M-41.7%

Revenue & EPS history

Stem · Revenue · Quarterly

$29.3M

Q3 2024-78.1%vs Q3 2023
Beat estimate in 5 of 15 quarters(33%)
ActualEstimate

Forward guidance

The Company is updating its full year 2024 guidance ranges to account for the Company’s recent financial results, ongoing implementation of its new strategy and continued expectation of project delays, which continue to negatively impact results.

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 2024

Historical avgQ3 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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