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Dec 31, 2024
Stem Q4 2024 Earnings Report
Stem reported a sharp revenue decline and wider net loss in Q4 2024.
Key Takeaways
Stem's Q4 2024 revenue fell 67% year-over-year to $55.8 million due to reduced battery hardware sales and the company's shift toward a software-focused strategy. Net loss widened to $51.1 million from $37.7 million in Q4 2023. Adjusted EBITDA declined slightly to $4.2 million. The company reported a 40% increase in bookings, reaching $357.6 million.
Revenue declined 67% year-over-year to $55.8 million.
Net loss widened to $51.1 million, compared to $37.7 million in Q4 2023.
Adjusted EBITDA declined slightly to $4.2 million.
Bookings increased 40% year-over-year to $357.6 million.
Stem
Stem
Forward Guidance
Stem expects revenue between $125 million and $175 million in 2025, with software and services revenue driving growth. Adjusted EBITDA is projected between -$10 million and $5 million, with a focus on cost reductions and improved profitability.
Positive Outlook
- Revenue expected to range between $125 million and $175 million in 2025.
- Software, edge hardware, and services revenue projected between $120 million and $140 million.
- Bookings growth driven by international expansion and large-scale utility projects.
- Cost reductions to improve profitability and cash flow.
- Expansion of PowerTrack into new international markets.
Challenges Ahead
- Battery hardware revenue expected to remain weak, with sales up to $35 million.
- Continued net losses expected despite cost-cutting efforts.
- Margins may be pressured by lower hardware revenue and restructuring costs.
- Potential economic and regulatory risks impacting demand for clean energy solutions.
- Uncertainty over execution of turnaround strategy in a competitive market.