Stem, Inc. ( (STEM) ) has realeased its Q3 earnings. Here is a breakdown of the information Stem, Inc. presented to its investors.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Stem, Inc. is a global leader in artificial intelligence-driven clean energy solutions and services, providing software and hardware solutions to optimize solar and energy storage projects. The company is known for its advanced AI-enabled software that aids in the management of clean energy assets worldwide.
In its third-quarter 2024 earnings report, Stem, Inc. highlighted significant financial challenges alongside strategic shifts. Revenue fell dramatically to $29.3 million from $133.7 million in the same period last year, primarily due to reduced battery hardware sales and adjustments in contract guarantees. However, the company showed progress in increasing its annual recurring revenue and improving gross margins.
Key financial metrics reveal a net loss of $148.3 million for the quarter, influenced by a substantial bad debt expense due to impairments related to customer contracts. Despite the drop in revenue, Stem reported a rise in its GAAP and non-GAAP gross margins to 21% and 46% respectively, driven by growth in high-margin software and services. The company’s contracted storage assets increased to 6.0 GWh, while solar monitoring assets climbed to 28.5 GW.
Looking ahead, Stem’s management has revised its full-year 2024 guidance, aiming to focus on more predictable and scalable growth through a shift towards software and services. They remain optimistic that the strategic changes will enhance profitability and drive long-term growth, despite the current financial setbacks and ongoing project delays.
