Stem Inc Stock Price, News & Analysis

Stem Inc (NYSE: STEM) reported Q4 and full year 2024 results, showing significant shifts in its business model. Q4 revenue declined 67% to $55.8M, while full-year revenue dropped 69% to $144.6M, primarily due to reduced hardware sales following the company's new software-focused strategy.

Q4 highlights include bookings of $357.6M (+40% YoY), Adjusted EBITDA of $4.2M, and cash position of $56.3M. The company reported a Q4 net loss of $51.1M and a substantial full-year net loss of $854.0M, impacted by a $547.2M goodwill impairment.

Notable operational metrics include contracted storage assets of 5.6 GWh and solar monitoring assets of 29.9 GW (+9% YoY). The company secured a significant 484 MW contract in Hungary and targets ~15% ARR growth in 2025 through its software and services-centric strategy.

Stem (NYSE: STEM), an AI-enabled clean energy software and services company, has scheduled its fourth quarter and full-year 2024 earnings conference call for Tuesday, March 4, 2025, at 5:00 p.m. Eastern Time. The company will release its financial results press release at approximately 4:05 p.m. Eastern Time on the same day.

Investors can access the conference call through a live webcast at the company's investor relations website or via telephone. A replay will be available until April 4, 2025, and the webcast archive will be accessible on Stem's website for 12 months following the call.

Stem (NYSE: STEM) has appointed Arun Narayanan as its new Chief Executive Officer, effective January 27, 2025. This appointment concludes the CEO search announced in September 2024 and advances Stem's transformation to a software and services company. David Buzby will step down as Interim CEO and Executive Chairman but remain Board Chair.

Narayanan brings over 25 years of software technology expertise, having previously served as CEO of RES Digital Solutions, Chief Data Officer at Anglo American, and held various software leadership positions at SLB. His appointment aligns with Stem's strategy to become a leading AI-powered energy software company, complementing the recent addition of Doran Hole as EVP and CFO.

The new CEO's background spans industries including oil and gas and renewable energy, with significant experience in building industry-leading software for global clients. At RES Digital Solutions, Narayanan led software product development and digital transformation initiatives in the renewables sector.

Stem (NYSE: STEM) has secured a five-year agreement to support a 484 megawatt (MW) solar portfolio in Hungary, marking its largest software deal in EMEA. The company will implement its PowerTrack Web solution to monitor, optimize, and control eight utility-scale sites for Neovolt, a major Hungarian asset owner.

The agreement leverages Stem's AI-driven solar monitoring and optimization solutions, building on its existing 720 MWp install base in the region. Stem's involvement began during the portfolio's development phase, providing network design support and implementing best practices from its European solar plant experience. The company collaborated with local EPCs and O&M provider EXTOR Energy to meet commercial operation targets.

PowerTrack Web's deployment includes remote power plant controls, real-time system updates, and security measures to promote Service Organization Controls (SOC) compliance. The system aims to enhance plant performance through flexible SCADA functionalities and improved production forecasting methods.

Stem (NYSE: STEM) announced that Mercuria Energy Trading has expanded its use of PowerBidder™ Pro to a second clean energy asset in ERCOT. The deployment was completed in under 60 days, demonstrating Stem's efficient software-centric strategy. This marks the second Mercuria asset utilizing PowerBidder Pro since Q3 2024.

The software provides automated bidding management, optimization strategies, and real-time performance metrics through intuitive dashboards. Mercuria's trading teams can customize configurations based on energy storage system constraints, contractual obligations, and risk management objectives in response to market conditions.

Stem announced its third-quarter 2024 results, highlighting a 78% year-over-year revenue decline to $29.3 million, primarily due to reduced battery hardware sales and a $5.6 million adjustment for contract guarantees. However, GAAP gross profit improved to $6.2 million from a loss of $20.3 million in 3Q23, with non-GAAP gross margin rising to 46% from 12% in 3Q23. The company reported a net loss of $148.3 million, exacerbated by a $104.1 million bad debt expense. Adjusted EBITDA was $(3.5) million, compared to $(0.9) million in 3Q23. Stem ended the quarter with $75.4 million in cash. Despite lower bookings and a reduced backlog, contracted storage AUM grew 20% year-over-year to 6.0 GWh. The company revised its full-year 2024 guidance, lowering revenue expectations to $135-$155 million and bookings to $100-$500 million while projecting higher non-GAAP gross margins of 32%-36%. Stem's new strategy focuses on software and services to drive higher-margin, predictable revenue.

Stem Inc. (NYSE: STEM) has appointed Albert Hofeldt, PhD as Chief Technology Officer (CTO), effective immediately. Previously serving as Executive Vice President of Technology since 2022, Dr. Hofeldt will report to interim CEO David Buzby. His primary focus will be combining Stem's PowerTrack™ and Athena® platforms into a single platform for asset management and optimization across solar and storage assets. During his two-year tenure at Stem, Hofeldt has led the integration of solar and storage technology teams, expanded the Technology Center in India, and developed next-generation software solutions including Athena and PowerTrack™ Asset Performance Management.

Stem Inc. (NYSE: STEM) has announced a new software and services-centric strategy aimed at driving scalable growth and profitability. The company is shifting its focus to:

1. Emphasize software and services to generate predictable, recurring, high-margin revenue
2. Expand energy consulting services as a competitive differentiator
3. Enhance AI-enabled software and edge device capabilities
4. Update approach to battery hardware resales

This strategic shift is expected to improve gross margins, working capital, and cash flow profile. Stem will prioritize its PowerTrack and Athena platforms, combining them into a single platform for asset management and optimization across solar and storage assets. The company will provide hardware procurement advisory services but will only procure hardware under strict profitability criteria.

Stem (NYSE: STEM), a global leader in AI-driven clean energy software and services, has announced its upcoming Third Quarter 2024 Earnings Results Conference Call. The call is scheduled for Wednesday, October 30, 2024, at 5:00 p.m. Eastern Time. A press release detailing the financial results will be issued at approximately 4:05 p.m. Eastern Time on the same day.

Investors and interested parties can access the conference call through a live webcast available at https://investors.stem.com/events-and-presentations. Alternatively, the call can be joined via telephone by dialing 1-844-825-9789 (US) or 1-412-317-5180 (International) and referencing Stem. A replay of the call will be available until November 30, 2024, and can be accessed using specific dial-in numbers. An archive of the webcast will remain on Stem's website for 12 months following the call.