Smart energy storage company Stem’s revenue increased 63% year-over-year (YoY) to $67 million in the first quarter (Q1) of the financial year (FY) 2023, driven by higher hardware revenue from Front-of-the-Meter and Behind-the-Meter partnership agreements

However, the company’s net loss doubled to $45 million in January-March, compared to the loss of $22 million YoY, mainly due to the deferred tax liability on the acquired intangibles of AlsoEnergy.

Further, the performance was helped by the solar asset management business’s (AlsoEnergy) $15 million revenue.

Stem’s adjusted Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) loss widened to $14 million from $13 million YoY.

The company said that the widening in EBITDA loss was primarily due to higher operating expenses because of increased personnel costs and continued investment in Stem’s growth initiatives.

The total operating expenses for the quarter increased by 13% YoY to $43.6 million.

The company had 3.5 GWh of contracted storage assets under management at the end of Q1 2023, up 94% YoY.

Stem accumulated $364 million from new bookings during Q1, an increase of 141%. The company’s contracted backlog was $1.24 billion at the end of Q1, compared to $0.97 billion as of the end of the previous quarter, representing a 28% sequential increase. YoY.

The company’s CEO, John Carrington, said, “Our contracted backlog more than doubled as compared to the same quarter last year, driven by $364 million in bookings, which also more than doubled versus the first quarter of 2022. CARR (Contracted Annual Recurring Revenue) grew 10% to $71.5 million sequentially, reflecting our focus on growing our long-term, high-margin software and services revenue.”

He added that the company recently launched a project with Sysco, where it will provide clean energy management services to one of the first electric vehicle hubs of its kind.

The company gross margin decreased to 1% compared to 9% in the same quarter last year. Stem said that the fall in margin was primarily due to the timing of revenue recognition for hardware sales.

Stem reported revenue of $100 million in the third quarter of FY 2022, a jump of 150% YoY primarily due to higher hardware sales from Front-of-the-Meter and Behind-the-Meter partnership agreements.