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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.

Total Revenue
$55.8M
Previous year: $167M
-66.7%
EPS
-$0.32
Previous year: -$0.24
+33.3%
Contracted Backlog
$1.17B
Previous year: $1.93B
-39.5%
Contracted AUM
5.6
Previous year: 5.5
+1.8%
Bookings
$358M
Previous year: $256M
+39.6%
Gross Profit
-$2.5M
Previous year: $11M
-122.7%
Cash and Equivalents
$56.3M
Previous year: $105M
-46.6%
Total Assets
$437M
Previous year: $1.36B
-67.8%

Stem

Stem

Stem Revenue by Segment

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.

Revenue & Expenses

Visualization of income flow from segment revenue to net income