1. Stem Inc reported a decrease in revenues and bookings for Q1 2024 compared to the same period in 2023.
2. The company’s net loss increased, but its contracted backlog and annual recurring revenue also grew year-on-year.
3. Stem Inc is focused on cash flow generation, building software and services revenue, and extending its technology leadership position in 2024.
Stem Inc reported a significant decrease in revenues and bookings for Q1 2024 compared to the same period in 2023. Despite an increase in net loss, the company saw growth in contracted backlog and contracted annual recurring revenue (CARR). Stem Inc achieved a Non-GAAP gross margin of 24% and expressed confidence in meeting guidance without additional equity issuance.
The company focuses on commercial and industrial (C&I) behind-the-meter battery storage projects, as well as front-of-the-meter battery energy storage system (BESS) projects. It also offers solar PV asset management services and software offerings. Stem Inc highlighted its PowerTrack Asset Performance Management suite during its financial results announcement.
Revenue drop was attributed to legacy contracts, while the decrease in bookings was linked to an increased focus on large-scale FTM project contracts. Stem Inc is confident in achieving its bookings guidance due to a substantial number of projects in advanced stages of negotiation. The company aims to focus on cash flow generation, software, and services revenue, and technology leadership in 2024.
Stem Inc went public through a merger with a SPAC in April 2021, but its shares have fluctuated significantly in value. Leadership remains optimistic about achieving profitability on an adjusted EBITDA basis for the full 2024 period.