Slide 1: Q1 2024 Financial Results
May 2, 2024 Q1 2024 Financial Results
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
Cautionary Statement Regarding Forward-Looking Statements This presentation, as well as other statements we make, contains “forward-looking statements” within the meaning of the federal securities laws, which include any statements that are not historical facts. Such statements often contain words s
Slide 3: Agenda
Agenda • First Quarter 2024 Results • Product Announcement • Guiding Principles • Financial and Operating Results • Key Takeaways © 2024 Stem, Inc. 3
Slide 4: First Quarter 2024 Results & Highlights
First Quarter 2024 Results & Highlights Driving free cash flow generation and reducing working capital intensity Q1 Results* Q1 Highlights Revenue Contracted Annual Recurring Revenue $25M (62%) YoY $89M (2%) QoQ / +25% YoY Non-GAAP gross margin of 24%; Athena® PowerBidder Pro contract with Near brea
Slide 5: PowerTrack Asset Performance Management Suite
PowerTrackTM Asset Performance Management Suite Maximizing performance of clean energy portfolios for asset owners and operators Benefits for Customers Benefits for Automated workflows to drive operational efficiency Drives additional high margin software revenue User- New centric Tools for transpa
Slide 6: 2024 Guiding Principles: Continued Progress
2024 Guiding Principles: Continued Progress Grow free cash flow by leveraging our software leadership Focus on Cash Flow Build Software Extend Technology Generation Services Revenue Leadership Position Solar / storage software revenue Operating cash flow +$1.5M QoQ +4% / +6% QoQ PowerBidder Pro laun
Slide 7: Financial and Operating Results
Financial and Operating Results © 2024 Stem, Inc.
Slide 8: 1Q24 Financial Metrics
1Q24 Financial Metrics Revenue, GM, Adj. EBITDA, & Operating Cash Flow Revenue, Gross Margin, Adj. EBITDA, & $ millions unless otherwise noted GAAP & Non-GAAP Operating Cash Flow Revenue* Gross Margin %* 24% • Consolidated revenue down 62% YoY due to 67 19% $33M adjustment to revenue and increased 1
Slide 9: 1Q24 Operating Metrics
1Q24 Operating Metrics CARR, Backlog, and AUM CARR, Backlog and AUM Growth $ millions unless otherwise noted • CARR +25% YoY, focused on ARR conversion Backlog CARR $1,929 • CARR and Backlog down QoQ due to backlog $1,640 $91 $89 profitability review • Storage AUM +5% QoQ and +66% YoY, strong demand
Slide 10: Revising 2024 Guidance
Revising 2024 Guidance 2024E: 1Q24A 2Q24E 3Q24E 4Q24E Revenue(1) $567M - $667M $25M 10% 32% 54% Prior: $600M-$700M 15–20% Non-GAAP Gross Margin 24% % of annual revenue 2024E: 2024E: Bookings Adjusted EBITDA $1.5B - $2.0B $5M - $20M 2024E: 2024E: CARR Operating Cash Flow $115M - $130M >$50M (1) Revis
Slide 11: Key Takeaways
Key Takeaways Strengthening the balance sheet for success • Focus on Cash Flow Generation • Near break-even Operating Cash Flow performance in Q1 • Taking action to accelerate conversion of accounts receivable to cash • Build software services revenue • Storage activation forecast improvement of +42
Slide 12: Q&A
stem © 2024 Stem, Inc.
Slide 13: About Stem
About Stem Stem (NYSE: STEM) is a global leader in AI-driven clean energy solutions and services. Stem (NYSE: STEM) provides clean energy solutions and services designed to maximize the economic, environmental, and resiliency value of energy assets and portfolios. Stem’s leading AI-driven enterprise
Slide 14: Appendix
Appendix © 2024 Stem, Inc.
Slide 15: Financial and Operating Metrics
Financial and Operating Metrics $ millions unless otherwise noted Three Months Ended March 31, 2024 2023 Key Financial Results(1) Revenue $25.5 $67.4 GAAP gross (loss) profit (24.2) 1.0 GAAP gross margin % (95)% 1% Non-GAAP gross profit* 13.8 15.1 Non-GAAP gross margin %* 24% 19% Net Loss (72.3) (44
Slide 16: Supplemental Revenue Detail
Supplemental Revenue Detail $ millions unless otherwise noted Three Months Ended March 31, 2024 2023 Solar Hardware Revenue $8.0 $6.9 Solar Services and Other Revenue 9.2 8.0 Total Solar Revenue 17.2 14.9 Three Months Ended March 31, $ millions unless otherwise noted 2024 2023 Solar Software Service
Slide 17: Reconciliation of GAAP and Non-GAAP Gross Margin
Reconciliation of GAAP and Non-GAAP Gross Margin Three Months Ended March 31, $ millions unless otherwise noted 2024 2023 Revenue $25.5 $67.4 Cost of revenue (49.7) (66.4) GAAP gross (loss) profit (24.2) 1.0 GAAP gross margin (%) (95)% 1% Non-GAAP Gross Profit GAAP Revenue $25.5 $67.4 Add: Revenue c
Slide 18: Reconciliation of Net Loss to Adjusted EBITDA
Reconciliation of Net Loss to Adjusted EBITDA $ thousands unless otherwise noted Three Months Ended March 31, 2024 2023 Net loss $(72,307) $(44,778) Adjusted to exclude the following: Depreciation and amortization(1) 11,154 11,958 Interest expense, net 4,707 1,777 Stock-based compensation 8,374 7,20
Slide 19: Reconciliation of GAAP Operating Expense to Cash Operating Expense
Reconciliation of GAAP Operating Expense to Cash Operating Expense $ millions unless otherwise noted Three Months Ended March 31, 2024 2023 GAAP Operating Expense $43.8 $43.6 Less: Non-cash adjustments Depreciation and Amortization (4.0) (4.5) Stock Compensation (8.4) (7.2) Other adjustments 1.0 (0.
Slide 20: Definitions
Definitions Item Definition Total value of executed customer agreements, as of the end of the relevant period (e.g. quarterly bookings or annual bookings) • Customer contracts are typically executed 6-24 months ahead of installation • The Booking amount typically includes: Bookings 1. Hardware reven
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