Q1 2024 Stem Inc Earnings Call Transcript
Key Points
- Stem Inc (STEM) achieved a record non-GAAP gross margin of 24% in Q1 2024, indicating strong profitability in its operations.
- Operating cash flow was roughly breakeven this quarter, showing a significant improvement of $35 million over the same quarter last year.
- The company successfully launched a new software-only product offering, enhancing its product portfolio and market competitiveness.
- Stem Inc (STEM) reported a 25% increase in contracted annual recurring revenue (CAAR) compared to Q1 2023, demonstrating growth in recurring revenue streams.
- The company is confident in achieving its full-year 2024 financial targets, including $1.5 billion to $2 billion in bookings and more than $50 million in operating cash flow.
- Revenue for Q1 2024 was $25 million, down 62% compared to Q1 2023, primarily due to a $33 million adjustment related to legacy contract guarantees.
- GAAP gross profit was negative $24 million in Q1 2024, significantly impacted by the revenue adjustment.
- Adjusted EBITDA was negative $12.2 million, although it showed a slight improvement from negative $13.7 million in the same quarter last year.
- The company experienced variability in bookings, with only $24 million recorded in Q1 2024, attributed to the focus on larger scale projects which have more variable timing.
- Stem Inc (STEM) is still managing the impacts of legacy contract guarantees and has noted potential future impairments related to these contracts.
Greetings and welcome to STEM Inc. First Quarter 2024 Results Conference Call. (Operator Instructions) As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mr. Ted Durbin, Head of Investor Relations. Thank you, Mr. Durban, you may begin.
Thank you, operator. This is Ted Durbin, Head of Investor Relations at STEM. Welcome to our first quarter 2024 earnings call. Before we begin, please note that some of the statements we will be making today are forward looking. These matters involve risks and uncertainties that could cause our results to differ materially from those projected in these statements. And we therefore refer you to our latest 10 Q and other SEC filings.
Our comments today also include non-GAAP financial measures. Additional details and reconciliations to the most directly comparable GAAP financial measures can be found in our earnings release. We'll be using a slide presentation today for our earnings release and presentation on the Investor
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