Smart energy storage company Stem posted a revenue of $156 million for the fourth quarter (Q4) of the financial year (FY) 2022, which is a 194% jump year-over-year (YoY).

The revenue growth was largely driven by higher hardware sales from Front-of-the-Meter (FTM) partnership agreements, and services revenues, including from its recent acquisition of the energy monitoring software firm AlsoEnergy.

However, Stem’s net loss widened to $35 million in Q4 from $34 million YoY. The company said it was primarily due to higher personnel costs, including increases in stock-based compensation of $2.7 million in Q4.

By the end of Q4 2022, Stem’s contracted assets under management for storage increased 56% YoY and 4% sequentially to 2.5 GWh, driven by new contracts.

Stem’s adjusted Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) remained negative at $10 million for the period but improved compared with $12 million YoY.

In January 2023, Stem collaborated with U.S.-based electric vehicle (EV) infrastructure company ChargePoint for eMobility solutions which is expected to yield economic, environmental, and resilience benefits for the owners, developers, and operators of EV charging stations.

The company said that it is witnessing strong commercial momentum in the solar space as the Inflation Reduction Act (IRA) is expected to increase solar and storage buildout by 46% through 2032.

Stem’s CEO John Carrington noted, “Our services revenue grew 17% sequentially, reflecting our focus on and success in growing our long-term, high-margin software and services revenue. We are excited about our new partnerships, including a joint EV charging offering with ChargePoint, which we expect will benefit customers and drive higher growth and margins for the company. Our commercial success continued in the fourth quarter, including a record $458 million in new bookings, which exceeded our entire bookings for the full year 2021, and a backlog of nearly $1 billion exiting the year.”

Full-year 2022

Stem’s revenue for FY 2022 increased by 186% YoY to $363 million, mainly due to higher hardware revenue from FTM collaborations.

Stem’s net loss for the year widened to $124 million from $101 million in the previous year, significantly due to an increase in stock-based compensation of $15.1 million along with increased personnel costs.

The company EBITDA for 2022 stood at a negative $46 million compared to a negative $30 million FY 2021.

Stem said that the decrease was primarily fuelled by higher operating expenses resulting from increased personnel costs and continued investment in the company’s growth initiatives.

Stem posted a 150% YoY rise in its revenue at $100 million for the third quarter of 2022.

Stem’s EBITDA increased by 38% YoY to $11 million during the second quarter of FY 2022.