Artificial intelligence (AI)-driven clean energy solutions and services provider Stem saw its revenue dropping 63% from $93 million in the second quarter (Q2) 2023 to $34 million in Q2 2024.

The company reported a Q2 net loss of $582.3 million from a net income of $19.1 million in the same quarter a year ago due to a one-time non-cash $547 million impairment of goodwill.

Stem attributed the dip in revenue and higher loss to lower hardware revenue due to decreased demand and the extension of certain project-related timelines.

The company’s adjusted EBITDA increased from 9.5 million in Q2 2023 to $11.3 million in Q2 2024.

Bookings came in at $25.4 million compared to $236.4 million in Q2 2023, an 89.25% decrease. Stem explained the dip in bookings to its continued expansion into large, utility-scale projects.

Contracted storage assets under management (AUM) and solar monitoring AUM remained unchanged from the previous quarter. Contracted storage assets stagnated at 5.8 GWh, and solar monitoring AUM was at 26.9 GW.

Bookings remained highly variable due to the company’s expansion into large front-of-the-meter storage projects and delays in customer receipt of IRA-related funding.

“We are seeing project delays impacting the broader industry. The shortfall was largely in storage hardware revenue, although our high-margin software and services revenue was mostly in line with our expectations. Our recent strategic expansion into the large-scale storage market has resulted in significantly larger average deal sizes with increased variability and increased project complexity. This has protracted our sales cycle and negatively impacted our bookings in the first half of 2024. These projects were also impacted by the delays stemming from customer project financings, particularly tied to USDA funding, as we will discuss in further detail today,” said Stem CEO John Carrington.

The company brought 334 MWh of assets online and deployed assets across diverse markets, customers, and use cases.

“Our solar business continued its consistent growth. We added another $1 million of ARR in the second quarter. We believe our solar business is an important source of delivering predictable growth and profitability through its large active base of ARR today,” Carrington said.

The energy storage system provider’s revenue for Q4 2023 surged by 8% year-over-year to $167.4 million, primarily due to the higher storage hardware revenue from Front-of-the-Meter partnership agreements and higher solar asset performance revenue.

In Q3 2023, Stem reported a net loss of $77.1 million as hardware costs rose.