Stem Q1 2024 Earnings Report
Key Takeaways
Stem's first quarter 2024 results showed a revenue decrease to $25.5 million due to a $33 million non-cash adjustment, but the company achieved a record non-GAAP gross margin and improved adjusted EBITDA year-over-year. They are accelerating the conversion of CARR-to-ARR and reaffirming full-year guidance for adjusted EBITDA and operating cash flow.
Revenue decreased to $25.5 million, impacted by a $33 million reduction due to updated contract guarantee valuations.
Non-GAAP gross margin increased to 24% from 19% in Q1 2023.
Bookings were $23.8 million, reflecting variability from large, utility-scale projects.
Contracted backlog was $1.6 billion, after efforts to upgrade profitability.
Stem
Stem
Stem Revenue by Segment
Forward Guidance
The company is updating its full year 2024 guidance ranges. They reaffirm full year 2024 revenue projected quarterly performance.
Positive Outlook
- Reaffirming guidance for adjusted EBITDA
- Reaffirming guidance for operating cash flow
- Maintaining bookings target of $1.5-$2.0 billion for 2024
- Expecting meaningful year-over-year growth in software services revenue.
- Focus on strengthening balance sheet.
Challenges Ahead
- Full year revenue guidance has been adjusted downward dollar-for-dollar solely as a result of the $33 million reduction in revenue.
- Revenue $567 - $667 million
- Non-GAAP Gross Margin (%) 15% - 20%
- Adjusted EBITDA $5 - $20 million
- CARR (year-end) $115 - $130 million
Revenue & Expenses
Visualization of income flow from segment revenue to net income