Stem Inc (STEM, Financial), a global leader in AI-driven clean energy solutions and services, announced its financial results for Q3 2023 on November 2, 2023. The company reported a 34% increase in revenue to $133.7 million, up from $99.5 million in Q3 2022. Despite the revenue growth, the company posted a net loss of $77.1 million, compared to a net loss of $34.3 million in the same quarter last year.
Financial Highlights
Stem Inc (STEM, Financial) reported Q3 2023 bookings of $676.4 million, a significant increase of 203% from $222.9 million in Q3 2022. The company ended the quarter with a record contracted backlog of $1.84 billion, up 125% from $817.2 million at the end of Q3 2022. The contracted annual recurring revenue (CARR) also increased by 43% to $87.5 million, up from $61.4 million at the end of Q3 2022.
The company's GAAP gross margin was negative 15%, down from 9% in Q3 2022. However, the non-GAAP gross margin was 12%, slightly down from 13% in Q3 2022. The company ended Q3 with $125.4 million in cash, cash equivalents, and short-term investments.
Operating Highlights
Stem Inc (STEM, Financial) reported a record contracted storage assets under management (AUM) of 5.0 gigawatt hours (GWh) at the end of Q3 2023, up 32% from 3.8 GWh at the end of Q2 2023. The solar monitoring AUM was 26.3 gigawatts (GW), a slight increase from 26.0 GW at the end of Q2 2023.
John Carrington, Chief Executive Officer of Stem, commented,
We generated strong results in the third quarter, highlighted by record bookings, AUM, CARR, and contracted backlog. Our bookings grew more than 3x versus the same quarter last year, which led to a 17% sequential increase in CARR."
Outlook
Stem Inc (STEM, Financial) expects to achieve adjusted EBITDA positive in the second half of 2023 and full-year adjusted EBITDA positive in 2024. The company also expects strong revenue growth momentum, with Q3 2023 bookings of $676.4 million, approximately 2x the guidance for the quarter. The company is also expecting service revenue growth to accelerate due to its agreement with SB Energy on software and services for multi-GWh development pipeline.
The company is updating its full-year 2023 guidance ranges with revenue expected to be between $513 million and $613 million and adjusted EBITDA between $(25) million and $(15) million.
Explore the complete 8-K earnings release (here) from Stem Inc for further details.
