Strong Second Quarter Revenue of $93 million,
Above Midpoint of Guidance Range
Ameresco (313 MWh) and Hungary (304 MW)
Projects Highlight FTM Momentum
Technology Leadership Further Recognized By
Third-Party Awards
Reaffirm Full-Year 2023 Financial and Operating
Guidance
Second Quarter 2023 Financial and Operating
Highlights
Financial Highlights
- Revenue of $93.0 million, up from $66.9 million (+39%) in Q2
2022
- GAAP gross margin of 13%, up from 12% in Q2 2022
- Non-GAAP gross margin of 18%, up from 17% in Q2 2022
- Net income of $19.1 million versus net loss of $32.0 million in
Q2 2022
- Adjusted EBITDA of $(9.5) million versus $(11.1) million in Q2
2022
- Ended Q2 with $138.2 million in cash, cash equivalents, and
short-term investments
Operating Highlights
- Bookings of $236.4 million, up from $225.7 million (+5%) in Q2
2022
- Record contracted backlog of $1.36 billion at end of Q2 2023,
up from $726.6 million (+88%) at end of Q2 2022
- Record contracted storage assets under management (“AUM”) of
3.8 gigawatt hours (“GWh”) at end of Q2 2023, up from 3.5 GWh (+9%)
at end of Q1 2023
- Solar monitoring AUM of 26.0 gigawatts (“GW”), up from 25.6 GW
(+2%) at the end of Q1 2023, highlighted by 304 MW Hungary
project
- Contracted annual recurring revenue (“CARR”) of $74.9 million,
up from $57.6 million (+30%) at end of Q2 2022, and sequentially up
from $71.5 million (+5%) versus Q1 2023
Stem, Inc. (“Stem” or the “Company”) (NYSE: STEM), a global
leader in artificial intelligence (AI)-driven clean energy
solutions and services, announced today its financial results for
the three and six months ended June 30, 2023. Reported results in
this press release reflect AlsoEnergy’s operations from February 1,
2022.
John Carrington, Chief Executive Officer of Stem, commented, “We
continued our strong execution in the second quarter, with revenue
above the midpoint of our guidance range, and margins in-line with
our expectations. CARR grew 5% sequentially, to $74.9 million,
reflecting our focus on growing our long-term, high-margin software
and services revenue.
“Our technology leadership was independently recognized again
this quarter with awards from AI Breakthrough and Environment +
Energy Leader, a testament to our culture of innovation, as well as
our advanced AI and machine learning capabilities that deliver
customer value, in addition to energy and environmental benefits.
Our financial results reflected this strong and expanding
differentiation, with 10% sequential growth in our Software
Services revenue, the fifth consecutive quarter of sequential
growth. We also continue to achieve commercial momentum, including
our 313 megawatt hour (MWh) battery storage system award from
Ameresco that will be placed in service in 2024. Our solar asset
performance business continues to rebound, highlighted by a 304
megawatt (MW) project award in Hungary.
“Given our strong performance in the first half of the year and
visibility from our backlog, we reaffirm our full-year 2023
guidance across all of our key metrics, and our continued
expectation that we will achieve positive adjusted EBITDA in the
second half of 2023.”
Key Financial Results and Operating
Metrics
(in $ millions unless otherwise
noted):
Three Months Ended June
30,
Six Months Ended June
30,
2023
2022
2023
2022
Key Financial Results
Revenue
$
93.0
$
66.9
$
160.4
$
108.0
GAAP Gross Profit
$
11.9
$
7.7
$
12.9
$
11.4
GAAP Gross Margin (%)
13
%
12
%
8
%
11
%
Non-GAAP Gross Profit*
$
16.4
$
11.3
$
31.5
$
17.9
Non-GAAP Gross Margin (%)*
18
%
17
%
18
%
17
%
Net Income (Loss)
$
19.1
$
(32.0
)
$
(25.7
)
$
(54.5
)
Adjusted EBITDA*
$
(9.5
)
$
(11.1
)
$
(23.2
)
$
(23.9
)
Key Operating Metrics
Bookings
$
236.4
$
225.7
$
599.9
$
376.5
Contracted Backlog**
$
1,364.3
$
726.6
$
1,364.3
$
726.6
Contracted Storage AUM (in GWh)(1)**
3.8
2.4
3.8
2.4
Solar Monitoring AUM (in GW)**
26.0
32.1
26.0
32.1
CARR**
$
74.9
57.6
74.9
57.6
(1) Contracted storage AUM as of June 30,
2022 has been adjusted from 2.1 GWh, as previously disclosed, to
2.4 GWh. Revised AUM reflects adjustments to total GWh of energy
storage as a result of revisions to the contracted system
configuration or changes in hardware specifications due to updates
from the original equipment manufacturer.
*Non-GAAP financial measures. See the
section below titled “Use of Non-GAAP Financial Measures” for
details and the section below titled “Reconciliations of Non-GAAP
Financial Measures” for reconciliations.
** At period end.
Second Quarter 2023 Financial and Operating Results
Financial Results
Revenue increased 39% to $93.0 million, versus $66.9 million in
the second quarter of 2022. Higher hardware revenue from
Front-of-the-Meter (“FTM”) and Behind-the-Meter (“BTM”) partnership
agreements drove a majority of the year-over-year increase, in
addition to $18.6 million of revenue contribution from AlsoEnergy,
our solar asset performance management business.
GAAP gross profit was $11.9 million, or 13%, versus $7.7
million, or 12%, in the second quarter of 2022. The year-over-year
increase in GAAP gross profit resulted primarily from higher sales.
The year-over-year increase in GAAP gross margin resulted from
higher gross margins from Services revenue.
Non-GAAP gross profit was $16.4 million, or 18%, versus $11.3
million, or 17%, in the second quarter of 2022. The year-over-year
increase in non-GAAP gross profit resulted from higher sales. The
year-over-year increase in non-GAAP gross margin resulted from
higher gross margins from Services revenue.
Net income was $19.1 million versus second quarter 2022 net loss
of $32.0 million. The year-over-year change was primarily driven by
a one-time $59 million gain on extinguishment of debt due to the
cancellation of a portion of the Company’s 2028 Convertible Notes
in the second quarter of 2023.
Adjusted EBITDA was $(9.5) million compared to $(11.1) million
in the second quarter of 2022. The change in adjusted EBITDA was
primarily driven by higher gross profit and continued focus on
managing operating expenses.
The Company ended the second quarter of 2023 with $138.2 million
in cash, consisting of $75.4 million in cash and cash equivalents
and $62.8 million in short-term investments, as compared to $206
million in cash at the end of the first quarter 2023. The primary
drivers of the decrease in cash were purchases of hardware for
customer projects that are expected to convert to revenue and
increases in accounts receivable that are expected to be collected,
both in the second half of the year. This decrease in cash was
partially offset by net proceeds from the Company’s issuance in
April 2023 of 4.25% Green Convertible Notes due 2030. Based on our
current forecasts, we expect to exit 2023 with no less than $150
million in cash, cash equivalents and short-term investments.
Operating Results
Contracted backlog was $1.36 billion at the end of the quarter,
compared to $1.24 billion as of the end of the first quarter of
2023, representing a 10% sequential increase. The increase in
contracted backlog in the quarter resulted from bookings of $236.4
million, partially offset by revenue recognition and contract
cancellations and amendments. Bookings of $236.4 million in the
second quarter of 2023 increased by 5% year-over-year versus $225.7
million in second quarter 2022.
Second quarter 2023 contracted storage AUM increased 9%
sequentially to 3.8 GWh, driven by new contracts.
Second quarter 2023 solar monitoring AUM increased 2%
sequentially to 26.0 GW, driven by new contracts.
Second quarter 2023 CARR increased to $74.9 million, up from
$71.5 million as of the end of the first quarter of 2023, a 5%
sequential increase.
The following table provides a summary of backlog at the end of
the second quarter of 2023, compared to backlog at the end of the
first quarter of 2023 ($ in millions):
End of 1Q23
$
1,242.6
Add: Bookings
$
236.4
Less: Hardware revenue
$
(76.6
)
Software/services adjustments
$
(14.5
)
Amendments/other
$
(23.6
)
End of 2Q23
$
1,364.3
Some Factors Affecting our Business and Operations
The Company continues to diversify its supply chain, integrate
additional energy technologies, and deploy a portion of its balance
sheet to help position the Company to meet the expected significant
growth in customer demand. However, we are subject to risk and
exposure from the evolving macroeconomic, geopolitical and business
environment, including the effects of increased global inflationary
pressures and interest rates, potential import tariffs, potential
economic slowdowns or recessions, the prospect of a shutdown of the
U.S. federal government, and geopolitical pressures, including the
Russia-Ukraine armed conflict, rising tensions between China and
Taiwan, and unknown effects of current and future trade and other
regulations. We regularly monitor the direct and indirect effects
of these circumstances on our business and financial results,
although there is no guarantee of the extent to which we will be
successful in these efforts.
Recent Business Highlights
The Company is announcing that it has entered into an agreement
for a new 313 MWh, multiple site battery storage project with
Ameresco. Stem will provide battery storage hardware, system design
support, and Athena® software to the project. Athena will enable
one of the fastest growing electric cooperatives in the nation to
dispatch the battery into system peaks to minimize costs and
maximize efficiency. The project is expected to begin service in
2024.
On July 19, 2023, the Company announced that its Athena platform
received the Top Product of the Year Award in the Environment +
Energy Leader Awards program. The program aims to commend
excellence in products and projects that deliver significant energy
and environmental benefits.
On July 6, 2023, the Company announced that its award-winning
solar monitoring and optimization solutions are now commercially
operational as part of Hungary’s largest solar power plant,
Mezőcsát. Athena, Stem’s AI clean energy platform, includes
AlsoEnergy’s PowerTrack and PowerManager Control Solutions (PMCS),
which are designed to help the 304 MW (DC) power plant reduce
Hungary’s reliance on natural gas and increase the amount of
electricity generated from alternative energy sources. The facility
is the largest contiguous solar park in Eastern Europe.
On June 21, 2023, the Company announced that its Athena platform
was selected as winner of the “Best Predictive Analytics Platform”
award in the sixth annual AI Breakthrough Awards program,
recognizing Athena as a leading innovative software solution
driving the clean energy transition. The mission of the AI
Breakthrough Awards is to honor excellence and recognize
innovation, hard work and success in a range of AI and machine
learning related categories.
Outlook
The Company is reaffirming its full-year 2023 guidance ranges as
follows ($ millions, unless otherwise noted):
Revenue
$550 - $650
Non-GAAP Gross Margin (%)
15% - 20%
Adjusted EBITDA
$(35) - $(5)
Bookings
$1,400 - $1,600
CARR (year-end)
$80 - $90
See the section below titled
“Reconciliations of Non-GAAP Financial Measures” for information
regarding why we are unable to reconcile Non-GAAP gross margin and
adjusted EBITDA guidance to their most comparable financial
measures calculated in accordance with GAAP.
The Company reaffirms full-year 2023 revenue and bookings
projected quarterly performance as follows:
Metric
Q1A
Q2A
Q3E
Q4E
Revenue
$67M
$93M
$165-195M
$230-290M
Bookings
$364M
$236M
$350-425M
$450-575M
Conference Call Information
Stem will hold a conference call to discuss this earnings press
release and business outlook on Thursday, August 3, 2023 beginning
at 5:00 p.m. Eastern Time. The conference call and accompanying
slides may be accessed via a live webcast on a listen-only basis on
the Events & Presentations page of the Investor Relations
section of the Company’s website at
https://investors.stem.com/events-and-presentations. The call can
also be accessed live over the telephone by dialing (855) 327-6837,
or for international callers, (631) 891-4304 and referencing Stem.
An audio replay will be available shortly after the call until
September 3, 2023 and can be accessed by dialing (844) 512-2921 or
for international callers by dialing (412) 317-6671. The passcode
for the replay is 10022134. A replay of the webcast will be
available on the Company’s website at
https://investors.stem.com/overview for approximately 12 months
after the call.
Use of Non-GAAP Financial Measures
In addition to financial results determined in accordance with
U.S. generally accepted accounting principles (“GAAP”), this
earnings press release contains the following non-GAAP financial
measures: adjusted EBITDA, non-GAAP gross profit and non-GAAP gross
margin.
We use these non-GAAP financial measures for financial and
operational decision-making and to evaluate our operating
performance and prospects, develop internal budgets and financial
goals, and to facilitate period-to-period comparisons. Management
believes that these non-GAAP financial measures provide meaningful
supplemental information regarding our performance and liquidity by
excluding certain expenses and expenditures that may not be
indicative of our operating performance, such as stock-based
compensation and other non-cash charges, as well as discrete cash
charges that are infrequent in nature. We believe that both
management and investors benefit from referring to these non-GAAP
financial measures in assessing our performance and when planning,
forecasting, and analyzing future periods. These non-GAAP financial
measures also facilitate management’s internal comparisons to our
historical performance and liquidity as well as comparisons to our
competitors’ operating results, to the extent that competitors
define these metrics in the same manner that we do. We believe
these non-GAAP financial measures are useful to investors both
because they (1) allow for greater transparency with respect to key
metrics used by management in its financial and operational
decision-making and (2) are used by investors and analysts to help
them analyze the health of our business. Our calculation of these
non-GAAP financial measures may differ from similarly-titled
non-GAAP measures, if any, reported by other companies. In
addition, other companies may not publish these or similar
measures. These non-GAAP financial measures should be considered in
addition to, not as a substitute for, or superior to, other
measures of financial performance prepared in accordance with GAAP.
For reconciliation of adjusted EBITDA and non-GAAP gross profit and
margin to their most comparable GAAP measures, see the section
below entitled “Reconciliations of Non-GAAP Financial
Measures.”
Definitions of Non-GAAP Financial Measures
We define adjusted EBITDA as net income (loss) attributable to
Stem before depreciation and amortization, including amortization
of internally developed software, net interest expense, further
adjusted to exclude stock-based compensation and other income and
expense items, including gain (loss) on the extinguishment of debt,
revenue constraint, change in fair value of derivative liability,
transaction and acquisition-related charges, litigation settlement,
restructuring costs, and income tax provision or benefit. The
expenses and other items that we exclude in our calculation of
adjusted EBITDA may differ from the expenses and other items, if
any, that other companies may exclude when calculating adjusted
EBITDA.
We define non-GAAP gross profit as gross profit excluding
amortization of capitalized software and impairments related to
decommissioning of end-of-life systems and including revenue
constraint. Non-GAAP gross margin is defined as non-GAAP gross
profit as a percentage of revenue.
The Company generally records the full purchase order value as
revenue at the time of hardware delivery; however, for certain
non-cancelable purchase orders entered into during the first
quarter of 2023, the final settlement amount payable to the Company
is variable and indexed to the price per ton of lithium carbonate
in the first quarter of 2024 such that the Company may increase or
decrease the final prices in such purchase orders based on the
price per ton of lithium carbonate at final settlement. Lithium
carbonate is a key raw material used in the production of hardware
systems that the Company ultimately sells to customers. The total
dollar amount of such purchase orders for the indexed contracts is
approximately $52 million. However, as a result of the pricing
structure in such purchase orders, the Company recorded revenue in
the first quarter of 2023 of approximately $42 million in
accordance with GAAP, net of a $10 million revenue constraint,
using a third party forecast of the lithium carbonate trading value
in the first quarter of 2024. Because the Company had not before
used indexed pricing in its customer contracts or purchase orders
and had not previously constrained revenue related to forecasted
inputs of its hardware systems, the Company believes that including
the $10 million revenue constraint from the first quarter of 2023
into non-GAAP profit enhances the comparability to the Company’s
non-GAAP profit in prior periods. Because the purchase orders are
variable and depend on the specified price per ton of lithium
carbonate at the time of final measurement in the first quarter of
2024, the Company may, pursuant to such purchase orders, ultimately
adjust final revenue downward to $34 million, subject to market
conditions upon settlement. The Company recorded the full cost of
hardware revenue for these indexed contracts in the first quarter
of 2023.
See the section below entitled “Reconciliations of Non-GAAP
Financial Measures.”
About Stem
Stem provides clean energy solutions and services designed to
maximize the economic, environmental, and resiliency value of
energy assets and portfolios. Stem’s leading AI-driven enterprise
software platform, Athena® enables organizations to deploy and
unlock value from clean energy assets at scale. Powerful
applications, including AlsoEnergy’s PowerTrack, simplify and
optimize asset management and connect an ecosystem of owners,
developers, assets, and markets. Stem also offers integrated
partner solutions to help improve returns across energy projects,
including storage, solar, and EV fleet charging. For more
information, visit www.stem.com.
Forward-Looking Statements
This earnings press release, as well as other statements we
make, contains “forward-looking statements” within the meaning of
the federal securities laws, which include any statements that are
not historical facts. Such statements often contain words such as
“expect,” “may,” “can,” “believe,” “predict,” “plan,” “potential,”
“projected,” “projections,” “forecast,” “estimate,” “intend,”
“anticipate,” “ambition,” “goal,” “target,” “think,” “should,”
“could,” “would,” “will,” “hope,” “see,” “likely,” and other
similar words. Forward-looking statements address matters that are,
to varying degrees, uncertain, such as statements about our
financial and performance targets and other forecasts or
expectations regarding, or dependent on, our business outlook; the
expected benefits of the combined Stem/AlsoEnergy company; our
ability to secure sufficient and timely inventory from suppliers;
our ability to meet contracted customer demand; our ability to
manage supply chain issues and manufacturing or delivery delays;
our joint ventures, partnerships and other alliances; forecasts or
expectations regarding energy transition and global climate change;
reduction of greenhouse gas (“GHG”) emissions; the integration and
optimization of energy resources; our business strategies and those
of our customers; our ability to retain or upgrade current
customers, further penetrate existing markets or expand into new
markets; our ability to manage the effects of natural disasters and
other events beyond our control; our preparedness for future
widespread health emergencies (and government and business
responses thereto); the ongoing conflict in Ukraine; the expected
benefits of the Inflation Reduction Act of 2022 on our business;
and future results of operations, including adjusted EBITDA and the
other metrics presented under Outlook. Such forward-looking
statements are subject to risks, uncertainties, and other factors
that could cause actual results to differ materially from those
expressed or implied by such forward-looking statements, including
but not limited to our inability to secure sufficient and timely
inventory from our suppliers, and provide us with contracted
quantities of equipment; our inability to meet contracted customer
demand; supply chain interruptions and manufacturing or delivery
delays; disruptions in sales, production, service or other business
activities; general economic, geopolitical and business conditions
in key regions of the world, including inflationary pressures,
general economic slowdown or a recession, increasing interest
rates, changes in monetary policy, instability in financial
institutions, and the prospect of a shutdown of the U.S. federal
government; the direct and indirect effects of widespread health
emergencies on our workforce, operations, financial results and
cash flows; the ongoing conflict in Ukraine; the results of
operations and financial condition of our customers and suppliers;
pricing pressures; weather and seasonal factors; our inability to
continue to grow and manage our growth effectively; our inability
to attract and retain qualified employees and key personnel; our
inability to comply with, and the effect on our business of,
evolving legal standards and regulations, including concerning data
protection and consumer privacy and evolving labor standards; risks
relating to the development and performance of our energy storage
systems and software-enabled services; our inability to retain or
upgrade current customers, further penetrate existing markets or
expand into new markets; the risk that our business, financial
condition and results of operations may be adversely affected by
other political, economic, business and competitive factors; and
other risks and uncertainties discussed in this release and in our
most recent Forms 10-K, 10-Q and 8-K filed with or furnished to the
SEC. If one or more of these or other risks or uncertainties
materialize (or the consequences of any such development changes),
or should our underlying assumptions prove incorrect, actual
outcomes may vary materially from those reflected in our
forward-looking statements. Forward-looking and other statements in
this release regarding our environmental, social, and other
sustainability plans and goals are not an indication that these
statements are necessarily material to investors or required to be
disclosed in our filings with the SEC. In addition, historical,
current, and forward-looking environmental, social, and
sustainability-related statements may be based on standards for
measuring progress that are still developing, internal controls and
processes that continue to evolve, and assumptions that are subject
to change in the future. Statements in this earnings press release
are made as of the date of this release, and Stem disclaims any
intention or obligation to update publicly or revise such
statements, whether as a result of new information, future events,
or otherwise, except as required by law.
Source: Stem, Inc.
STEM, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(UNAUDITED)
(in thousands, except share and
per share amounts)
June 30, 2023
December 31, 2022
ASSETS
Current assets:
Cash and cash equivalents
$
75,405
$
87,903
Short-term investments
62,769
162,074
Accounts receivable, net of allowances of
$5,349 and $3,879 as of June 30, 2023 and December 31, 2022,
respectively
293,853
223,219
Inventory, net
145,523
8,374
Deferred costs with suppliers
22,119
43,159
Other current assets (includes $58 and $74
due from related parties as of June 30, 2023 and December 31, 2022,
respectively)
13,139
8,026
Total current assets
612,808
532,755
Energy storage systems, net
84,627
90,757
Contract origination costs, net
12,412
11,697
Goodwill
547,204
546,649
Intangible assets, net
159,472
162,265
Operating lease right-of-use assets
13,810
12,431
Other noncurrent assets
73,157
65,339
Total assets
$
1,503,490
$
1,421,893
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable
$
102,980
$
83,831
Accrued liabilities
55,530
85,258
Accrued payroll
7,965
12,466
Financing obligation, current portion
18,158
15,720
Deferred revenue, current portion
115,381
64,311
Other current liabilities (includes $34
and $687 due to related parties as of June 30, 2023 and December
31, 2022, respectively)
7,479
5,412
Total current liabilities
307,493
266,998
Deferred revenue, noncurrent
78,736
73,763
Asset retirement obligation
4,079
4,262
Notes payable, noncurrent
—
1,603
Convertible notes, noncurrent
522,506
447,909
Financing obligation, noncurrent
58,895
63,867
Lease liabilities, noncurrent
11,874
10,962
Other liabilities
563
362
Total liabilities
984,146
869,726
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.0001 par value;
1,000,000 shares authorized as of June 30, 2023 and December 31,
2022; zero shares issued and outstanding as of June 30, 2023 and
December 31, 2022
—
—
Common stock, $0.0001 par value;
500,000,000 shares authorized as of June 30, 2023 and December 31,
2022; 155,796,411 and 154,540,197 issued and outstanding as of June
30, 2023 and December 31, 2022, respectively
16
15
Additional paid-in capital
1,176,678
1,185,364
Accumulated other comprehensive loss
(88
)
(1,672
)
Accumulated deficit
(657,737
)
(632,081
)
Total Stem’s stockholders’ equity
518,869
551,626
Non-controlling interests
475
541
Total stockholders’ equity
519,344
552,167
Total liabilities and stockholders’
equity
$
1,503,490
$
1,421,893
STEM, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(UNAUDITED)
(in thousands, except share and
per share amounts)
Three Months Ended June
30,
Six Months Ended June
30,
2023
2022
2023
2022
Revenue
Services and other revenue
$
16,360
$
12,521
$
31,033
$
22,486
Hardware revenue
76,586
54,426
129,318
85,549
Total revenue
92,946
66,947
160,351
108,035
Cost of revenue
Cost of services and other revenue
11,756
10,141
23,260
18,774
Cost of hardware revenue
69,319
49,018
124,226
77,829
Total cost of revenue
81,075
59,159
147,486
96,603
Gross profit
11,871
7,788
12,865
11,432
Operating expenses:
Sales and marketing
13,680
12,955
26,086
22,097
Research and development
14,156
8,963
27,600
17,906
General and administrative
18,904
15,693
36,701
36,205
Total operating expenses
46,740
37,611
90,387
76,208
Loss from operations
(34,869
)
(29,823
)
(77,522
)
(64,776
)
Other income (expense), net:
Interest expense, net
(3,903
)
(2,691
)
(5,680
)
(5,909
)
Gain on extinguishment of debt, net
59,121
—
59,121
—
Other (expense) income, net
(736
)
484
(1,175
)
959
Total other income (expense), net
54,482
(2,207
)
52,266
(4,950
)
Income (loss) before (provision for)
benefit from income taxes
19,613
(32,030
)
(25,256
)
(69,726
)
(Provision for) benefit from income
taxes
(491
)
7
(400
)
15,220
Net income (loss)
19,122
(32,023
)
(25,656
)
(54,506
)
Net loss attributed to non-controlling
interests
—
(4
)
—
(4
)
Net income (loss) attributable to Stem
$
19,122
$
(32,019
)
$
(25,656
)
$
(54,502
)
Net income (loss) per share attributable
to common stockholders, basic
$
0.12
$
(0.21
)
$
(0.17
)
$
(0.36
)
Net loss per share attributable to common
stockholders, diluted
$
(0.26
)
$
(0.21
)
$
(0.17
)
$
(0.36
)
Numerator used to compute net income
(loss) per share:
Net income (loss) attributable to Stem
common stockholders, basic
$
19,122
$
(32,019
)
$
(25,656
)
$
(54,502
)
Net loss attributable to Stem common
stockholders, diluted
$
(40,011
)
$
(32,019
)
$
(25,656
)
$
(54,502
)
Weighted-average shares used in computing
net income (loss) per share to common stockholders, basic
155,619,179
154,125,061
155,294,475
152,318,090
Weighted-average shares used in computing
net loss per share to common stockholders, diluted
155,804,953
154,125,061
155,294,475
152,318,090
STEM, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(UNAUDITED)
(in thousands)
Six Months Ended June
30,
2023
2022
OPERATING ACTIVITIES
Net loss
$
(25,656
)
$
(54,506
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization expense
22,376
20,887
Non-cash interest expense, including
interest expenses associated with debt issuance costs
1,586
902
Stock-based compensation
17,122
12,732
Change in fair value of derivative
liability
2,576
—
Non-cash lease expense
1,406
1,131
Accretion of asset retirement
obligations
120
122
Impairment loss of energy storage
systems
2,069
919
Impairment loss of project assets
122
—
Net (accretion of discount) amortization
of premium on investments
(1,300
)
410
Income tax benefit from release of
valuation allowance
(335
)
(15,100
)
Provision for accounts receivable
allowance
1,734
1,010
Net loss on investments
1,561
—
Gain on extinguishment of debt, net
(59,121
)
—
Other
(680
)
(34
)
Changes in operating assets and
liabilities:
Accounts receivable
(72,187
)
(26,123
)
Inventory
(137,149
)
(36,634
)
Deferred costs with suppliers
28,759
(23,430
)
Other assets
(17,816
)
(28,704
)
Contract origination costs, net
(2,256
)
(3,625
)
Project assets
(2,834
)
—
Accounts payable
19,049
82,405
Accrued expenses and other liabilities
(35,087
)
7,006
Deferred revenue
56,043
28,471
Lease liabilities
(1,341
)
(469
)
Net cash used in operating activities
(201,239
)
(32,630
)
INVESTING ACTIVITIES
Acquisitions, net of cash acquired
(1,847
)
(533,009
)
Purchase of available-for-sale
investments
(58,034
)
(98,922
)
Proceeds from maturities of
available-for-sale investments
84,750
86,623
Proceeds from sales of available-for-sale
investments
73,917
—
Purchase of energy storage systems
(2,640
)
(232
)
Capital expenditures on
internally-developed software
(7,388
)
(8,085
)
Purchase of property and equipment
(289
)
(2,405
)
Net cash provided by (used in) investing
activities
88,469
(556,030
)
FINANCING ACTIVITIES
Proceeds from exercise of stock options
and warrants
229
611
Payments for taxes related to net share
settlement of stock options
—
(2,302
)
Proceeds from financing obligations
—
311
Repayment of financing obligations
(2,587
)
(6,817
)
Proceeds from issuance of convertible
notes, net of issuance costs of $7,601 and $0 for the six months
ended June 30, 2023 and 2022, respectively
232,399
—
Repayment of convertible notes
(99,754
)
—
Purchase of capped call options
(27,840
)
—
(Redemption of) investment from
non-controlling interests, net
(67
)
216
Repayment of notes payable
(2,101
)
—
Net cash provided by (used in) financing
activities
100,279
(7,981
)
Effect of exchange rate changes on cash
and cash equivalents
(7
)
(136
)
Net decrease in cash and cash
equivalents
(12,498
)
(596,777
)
Cash and cash equivalents, beginning of
year
87,903
747,780
Cash and cash equivalents, end of
period
$
75,405
$
151,003
STEM, INC. RECONCILIATIONS OF
NON-GAAP FINANCIAL MEASURES (UNAUDITED)
The following table provides a reconciliation of Adjusted EBITDA
to net income (loss):
Three Months Ended June
30,
Six Months Ended June
30,
2023
2022
2023
2022
(in thousands)
(in thousands)
Net income (loss) attributable to Stem
$
19,122
$
(32,019
)
$
(25,656
)
$
(54,502
)
Adjusted to exclude the following:
Depreciation and amortization (1)
12,609
12,910
24,567
21,806
Interest expense, net
3,903
2,691
5,680
5,909
Gain on extinguishment of debt, net
(59,121
)
—
(59,121
)
—
Stock-based compensation
9,920
6,467
17,122
12,732
Revenue constraint (2)
—
—
10,200
—
Change in fair value of derivative
liability
2,576
—
2,576
—
Transaction costs in connection with
business combination
—
—
—
6,068
Litigation settlement
—
(1,127
)
—
(727
)
Provision for (benefit from) income
taxes
491
(7
)
400
(15,220
)
Other expenses (3)
1,021
—
1,021
—
Adjusted EBITDA
$
(9,479
)
$
(11,085
)
$
(23,211
)
$
(23,934
)
Adjusted EBITDA, as used in the Company's
full-year 2023 guidance, is a non-GAAP financial measure that
excludes or has otherwise been adjusted for items impacting
comparability. The Company is unable to reconcile projected
adjusted EBITDA to net income (loss), its most directly comparable
forward-looking GAAP financial measure, without unreasonable
effort, because the Company is unable to predict with a reasonable
degree of certainty its change in stock-based compensation expense,
depreciation and amortization expense, revenue constraint and other
items that may affect net loss. The unavailable information could
have a significant effect on the Company’s full-year 2023 GAAP
financial results.
(1) Depreciation and amortization includes
depreciation and amortization expense, impairment loss of energy
storage systems, and impairment loss of project assets.
(2) Refer to the discussion of revenue
constraint in the definition of non-GAAP profit provided above.
(3) Adjusted EBITDA for both the three and
six months ended June 30, 2023 reflects other expenses of $1.0
million for expenses related to restructuring costs to pursue
greater efficiency and to realign our business and strategic
priorities. Restructuring expenses consisted of employee severance
and other exit costs.
The following table provides a reconciliation of non-GAAP gross
profit and margin to GAAP gross profit and margin ($ in
millions):
Three Months Ended June
30,
Six Months Ended June
30,
2023
2022
2023
2022
Revenue
$
93.0
$
66.9
$
160.4
$
108.0
Cost of revenue
(81.1
)
(59.2
)
(147.5
)
(96.6
)
GAAP gross profit
11.9
7.7
12.9
11.4
GAAP gross margin (%)
13
%
12
%
8
%
11
%
Non-GAAP Gross Profit
GAAP Revenue
$
93.0
$
66.9
$
160.4
$
108.0
Add: Revenue constraint (1)
—
—
10.2
—
Subtotal
93.0
66.9
170.6
108.0
Less: Cost of revenue
(81.1
)
(59.2
)
(147.5
)
(96.6
)
Add: Amortization of capitalized software
& developed technology
3.3
2.6
6.3
4.7
Add: Impairments
1.2
1.0
2.1
1.8
Non-GAAP gross profit
$
16.4
$
11.3
$
31.5
$
17.9
Non-GAAP gross margin (%)
18
%
17
%
18
%
17
%
Non-GAAP gross margin as used in the
Company's full-year 2023 guidance, is a non-GAAP financial measure
that excludes or has otherwise been adjusted for items impacting
comparability. The Company is unable to reconcile projected
non-GAAP gross margin to GAAP gross margin, its most directly
comparable forward-looking GAAP financial measure, without
unreasonable efforts, because the Company is currently unable to
predict with a reasonable degree of certainty its change in
amortization of capitalized software, impairments, and other items
that may affect GAAP gross margin. The unavailable information
could have a significant effect on the Company’s full-year 2023
GAAP financial results.
(1) Refer to the discussion of revenue
constraint in the definition of non-GAAP profit provided above.
Key Definitions:
Item
Definition
Bookings
Total value of executed customer
agreements, as of the end of the relevant period
• Customer contracts are typically
executed 6-18 months ahead of installation
• Bookings amount typically includes: 1.
Hardware revenue, which is typically recognized at delivery of
system to customer 2. Software revenue, which represents total
nominal software contract value recognized ratably over the
contract period
• Market participation revenue is excluded
from booking value
Contracted Backlog
Total value of bookings in dollars, as of
a specific date
• Backlog increases as new contracts are
executed (bookings)
• Backlog decreases as integrated storage
systems are delivered and recognized as revenue
Contracted Assets Under
Management (“AUM”)
Total GWh of storage systems in
operation or under contract
Solar Monitoring AUM
Total GW of solar systems in operation or
under contract
Contracted Annual Recurring
Revenue (CARR)
Annual run rate for all executed software
services contracts, including contracts signed in the applicable
period for systems that are not yet commissioned or operating
Project Services
Professional services and revenue tied to
Development Company investments
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230801465393/en/
Stem Investor Contacts Ted Durbin, Stem Marc Silverberg,
ICR IR@stem.com
Stem Media Contacts Suraya Akbarzad, Stem
press@stem.com
Grafico Azioni Stem (NYSE:STEM)
Storico
Da Mag 2024 a Giu 2024
Grafico Azioni Stem (NYSE:STEM)
Storico
Da Giu 2023 a Giu 2024