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					</table>Smart energy storage company <a href="https://www.stem.com/" target="_blank" rel="noopener">Stem</a>’s fourth quarter (Q4) net loss widened by 6.8% to $37.7 million from the net loss of 35.3 million in Q4 2022.
The lower gross profit and higher interest expenses drove the increase in net loss.
The AI-driven energy storage system provider’s revenue for Q4 2023 surged by 8% year-over-year (YoY) to $167.4 million, primarily due to the higher storage hardware revenue from Front-of-the-Meter (FTM) partnership agreements and higher solar asset performance revenue.
Stem’s contracted annual recurring revenue (CARR) of $91.0 million at the end of Q4 2023 was up by 39% from $65.3 million at the end of 2022.
The adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) were recorded at a profit of $4.6 million from a loss of $9.5 million in the same period last year.
The improvement in the adjusted EBITDA, including the first-time achievement of positive adjusted EBITDA in the fourth quarter and second half of 2023, was due to an increase in sales, increased gross margins, and lower cash operating costs, the company said in a statement.
The company’s contracted backlog at the end of Q4 2023 was up 99% YoY to $1.93 billion from $969 million. The increase resulted from quarterly bookings of $256 million, partially offset by revenue recognition and contract cancellations and amendments. The bookings during the period, however, were 44% lower than $457.2 million in Q4 2022.
The company’s solar monitoring assets under management (AUM) grew to 27.5 GW, up by 10% from 25 GW at the end of 2022.
During the company’s earnings call, John Carrington, Stem’s Chief Executive Officer, said, “Energy storage hardware costs continue to decline, driving better economics for our customers and increased overall TAM (total addressable market) and demand for our services. In the U.S., we are encouraged by the domestic supply continuing to ramp up and note that 38 battery gigafactories are either operational under construction or planned for construction.”
“We believe that the U.S. domestic content provides compelling opportunities for improved project economics and are pursuing a vendor-neutral strategy to offer our customers access to top-tier suppliers without committing volumes to any single supplier. We are seeing favorable conditions in the supply chain with battery cell manufacturers potentially entering the market to offer integrated hardware solutions,” he further added.
Full Year 2023
Stem recorded a net loss of $140.4 million for the full year 2023, a 13% increase from the net loss of $124.1 million in 2022.
The year-over-year increase in net loss resulted primarily from a $35.1 million net reduction in revenue, excess supplier costs and resulting liquidated damages.
The company updates its estimate of variable consideration each quarter, including changes in estimates related to such guarantees for facts or circumstances that have changed from the time of the initial estimate, and, as a result, the company recorded a net revenue reduction of $35.1 million during 2023.
The company’s revenue increased by 27.13% YoY to 461.5 million for the year due to the growing customer momentum and standardization of its Athena platform across storage and solar assets.
The adjusted EBITDA in 2023 improved from a loss of $46 million in 2022 to a loss of $19.5 million, driven by the higher revenue, expanded gross margins, and disciplined operating costs of the company.
The company’s order bookings for the full year 2023 were up by 44% YoY to $1.53 billion.
The contracted AUM at the end of December 2023 was 5.5 GWh, a 77% increase from 3.1 GWh in 2022 and a 10% increase from 5 GWh at the end of Q3 2023.
The company’s newly launched energy trading toolkit for asset owners and traders, called PowerBidder Pro, was ordered by Mercuria, who will use the software to access real-time performance metrics, analytics, and customizable trading strategies.
The company has also signed approximately 800 MWh of software-only storage contracts in the ERCOT (Electric Reliability Council of Texas) and CAISO (California ISO), two of the fastest-growing regions for energy storage.
During Q3, 2023, Stem <a href="https://www.mercomindia.com/stems-net-loss-revenues-as-operating-expenses-surge" target="_blank" rel="noopener">reported</a> a net loss of $77.1 million, a 124% YoY surge from the net loss of $34.3 million, mainly driven by the added costs for hardware.

Stem Reports First-Ever Positive Quarterly EBITDA in Q4 as Sales Surge

Artificial Intelligence (AI)-enabled energy storage software and services provider <a href="https://www.stem.com/" target="_blank" rel="noopener">Stem</a> recorded a revenue of $52.8 million in the fourth quarter (Q4) of 2021, representing a year-over-year (YoY) increase of 184% compared to the $18.6 million registered in the same period last year.
Stem incurred a net loss of $34.1 million in Q4 2021, a significant reduction from the $100.9 million incurred in Q4 2020. The reduction in losses was primarily driven by non-cash revaluation of warrants, tied to changes in the value of the underlying common stock.
The adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for Q4 2021 was $12.4 million, against the EBITDA of $5.1 million recorded in the same period last year.
The company’s 12-month forward pipeline was $4 billion at the end of the fourth quarter compared to $2.4 billion in the third quarter. The increase in the 12-month pipeline results from increased FTM project opportunities, including significant expansions into new markets.
The contracted backlog was $449 million as of December 31, 2021, compared to $312 million as of September 30, 2021. This increase resulted from the record bookings in the quarter of $217 million, partially offset by revenue recognition, contract cancellations, and amendments during the quarter.
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/03/Stem-financials.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-32939 " src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/03/Stem-financials.png" alt="Stem financials" width="947" height="875" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/03/Stem-financials.png 1397w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/03/Stem-financials-300x277.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/03/Stem-financials-768x709.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/03/Stem-financials-650x600.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/03/Stem-financials-624x576.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/03/Stem-financials-600x554.png 600w" sizes="(max-width: 947px) 100vw, 947px" /></a>
2021 Full Year Results
The company recorded a revenue of $127.4 million in 2021, representing a YoY increase of 251% compared to the $36.3 million registered last year. Higher hardware revenue from front-of-the-meter (FTM) and behind-the-meter partnership agreements drove most of the increase for the year.
Stem incurred a net loss of $101.2 million in FY 2021, a notable reduction from the $156.1 million incurred in FY 2020. The differences were again driven primarily by the non-cash revaluation of warrants, tied to changes in the value of the underlying common stock.
The adjusted EBITDA for FY 2021 was $30.3 million, against the EBITDA of $25.4 million recorded last year.
Stem expects to continue diversifying its supply chain, adopting alternative technologies, and deploying its balance sheet to meet the expected significant growth in customer demand. The company has also been affected by inflation in equipment costs and is actively working to mitigate these impacts on its financial results.
In December 2021, Stem had <a href="https://mercomindia.com/stem-to-acquire-also-energy/" target="_blank" rel="noopener">entered</a> into a definitive agreement to acquire AlsoEnergy, a U.S.-based solar asset management software provider, in a stock and cash transaction.
The U.S. Department of Energy (DOE) recently <a href="https://mercomindia.com/us-department-of-energy-to-invest/" target="_blank" rel="noopener">issued</a> two notices of intent to invest $2.91 billion to enhance the production of advanced batteries, critical to the fast-growing clean energy industries, including electric vehicles and energy storage domestically.

Smart Energy Storage Company Stem’s Revenue up 184% YoY in Q4 2021

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