Stem, Inc. ( (STEM) ) has released its Q4 earnings. Here is a breakdown of the information Stem, Inc. presented to its investors.
Stem, Inc. is a global leader in AI-enabled clean energy solutions, providing software and services to optimize the deployment and operation of clean energy assets.
In its latest earnings report, Stem, Inc. announced a significant decrease in revenue for both the fourth quarter and the full year 2024, attributed to a strategic shift towards a software and services-centric business model. Despite the revenue decline, the company highlighted its ongoing transformation efforts and international expansion, particularly with a notable contract win in Hungary.
Key financial metrics revealed a 67% drop in fourth-quarter revenue to $55.8 million, with a full-year revenue decline of 69% to $144.6 million. The company reported a net loss of $51.1 million for the fourth quarter and a substantial net loss of $854 million for the full year, primarily due to reduced battery hardware sales and significant impairments. However, non-GAAP gross margins improved to 36% in the fourth quarter, reflecting a focus on software and services.
Stem’s strategic initiatives include expanding its PowerTrack software internationally and reducing operating expenses to drive profitability. The company secured a 484 MW contract in Hungary and aims for a 15% growth in annual recurring revenue in 2025, emphasizing scalable growth in its software and services offerings.
Looking ahead, Stem’s management remains optimistic about its strategic direction, focusing on sustainable growth and profitability through its software-centric approach. The company plans to continue expanding its international presence and enhancing its software capabilities to meet the growing demand for clean energy solutions.