Slide 1: Q2 2023 Financial Results
August 3, 2023 Q2 2023 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 • Second Quarter 2023 Highlights • Commercial Execution • Business Updates • Technology Leadership • Financial and Operating Results • Key Takeaways © 2023 Stem, Inc. 3
Slide 4: Second Quarter 2023 Results & Highlights
Second Quarter 2023 Results & Highlights Strong revenue growth and solid margins drive improved adjusted EBITDA Strong Q2 Momentum Q2 Highlights Revenue Bookings $93M $236M +39% YoY +5% YoY Q2 revenue above midpoint of 313 MWh Ameresco and 304 MW guidance; Services revenue +11% QoQ Hungary transacti
Slide 5: Robust Demand Drives Margin Expansion
Robust Demand Drives Margin Expansion Service revenue growth from differentiated offering Strong 11% growth in Services revenue Continued Strong Growth in Software Services Revenue in Q2’23 ● Software Services Revenue +10% QoQ 18 ● Expect Project Services to increase in 2H’23 based on project timing
Slide 6: Business Updates
Business Updates Storage: Ameresco project highlights FTM momentum ● 78 MW / 313 MWh installation, expected to be in service 2024 ● Demonstrates increasing strength in: (1) large scale deployments and (2) co-op / muni market ● Hardware / software / services scope with upside potential from wholesale
Slide 7: AI Technology Leadership
AI Technology Leadership Customer proof points and industry recognition drive pricing power Best Predictive Analytics Platform 2023 Top Product of the Year AI Breakthrough, June 2023 Environment + Energy Leader Awards, July 2023 “Athena’s footprint and the myriad data points that constantly “[Athena
Slide 8: AI Technology Leadership
AI Technology Leadership Leveraging AI tools to drive operational efficiency and increase customer value Best positioned to leverage predictive analytics and generative AI tools to drive operational leverage ● Deliver scalable professional service offerings via technology ● High throughput iteration
Slide 9: Financial and Operating Results
Financial and Operating Results © 2023 Stem, Inc.
Slide 10: Financial Metrics
Financial Metrics Revenue, Adj. EBITDA and GAAP / Non-GAAP Gross Margin Period ending June 30, $ millions unless otherwise noted Q2 Highlights Revenue Adjusted EBITDA • Revenue up 39% YoY in Q2’23 39% • Continued improvement in GAAP/Non- GAAP Gross Margin and adjusted (9) EBITDA; fifth consecutive q
Slide 11: Operating Metrics
Operating Metrics Strong Momentum in Backlog, CARR and AUM Period ending June 30, $ millions unless otherwise noted Backlog, CARR and AUM Growth • Backlog +10% QoQ / +88% YoY, driven by 1.36 1.24 10% 5% strong end market demand • CARR up 5% QoQ; on track for year-end guidance of $80 - $90M • Storage
Slide 12: Reaffirming Full-Year 2023 Guidance
Reaffirming Full-Year 2023 Guidance 2023E: Q1’23A Q2’23A Q3’23E Q4’23E Revenue $550M - $650M $165M- $230M- $67M $93M $195M $290M 15–20% Non-GAAP Gross Margin 19% 18% Q1’23A Q2’23A Q3’23E Q4’23E 2023E: Bookings $350M- $450M- $364M $236M $1.4B - $1.6B $425M $575M 2023E: Year-End 2023E: Adj. EBITDA CAR
Slide 13: Key Takeaways
Key Takeaways Reaffirming full-year 2023 guidance Strong second quarter results: • Revenue above midpoint of guidance and strong gross margin results • Continued strength in Services revenue growth +11% QoQ • Solid solar backlog growth of 39% YoY and accelerating renewal rates Building momentum for
Slide 14: Q&A
stem © 2023 Stem, Inc.
Slide 15: 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 16: Appendix
Appendix © 2023 Stem, Inc.
Slide 17: Financial and Operating Metrics
Financial and Operating Metrics Three Months Ended Six Months Ended $ millions unless otherwise noted June 30, June 30, 2023 2022 2023 2022 Revenue $93.0 $66.9 $160.4 $108.0 GAAP Gross Profit 11.9 7.7 12.9 11.4 GAAP Gross Margin % 13% 12% 8% 11% Non-GAAP Gross Profit 16.4 11.3 31.5 17.9 Non-GAAP Gro
Slide 18: Supplemental Revenue Detail
Supplemental Revenue Detail Solar - Supplemental Revenue Detail $ millions unless otherwise noted Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Solar Hardware Revenue $9.9 $6.9 $16.8 $11.7 Solar Services and Other Revenue 8.7 7.2 16.7 12.0 Total Solar Revenue $18.6 $14.1
Slide 19: Reconciliation of GAAP and Non-GAAP Gross Profit
Reconciliation of GAAP and Non-GAAP Gross Profit Three Months Ended Six Months Ended $ millions unless otherwise noted June 30, June 30, 2023 2022 2023 2022 Revenue $93.0 $66.9 $160.4 $108.0 Cost of Revenue (81.1) (59.2) (147.5) (96.6) GAAP Gross Profit 11.9 7.7 12.9 11.4 GAAP Gross Margin (%) 13% 1
Slide 20: Reconciliation of Net Income (Loss) to Adjusted EBITDA
Reconciliation of Net Income (Loss) to Adjusted EBITDA Three Months Ended June 30, Six Months Ended June 30, $ thousands 2023 2022 2023 2022 Net income (loss) attributable to Stem $19,122 $(32,019) $(25,656) $(54,502) Adjusted to exclude the following: Depreciation and amortization 12,609 12,910 24,
Slide 21: Definitions
Definitions Item Definition Total value of executed customer agreements, as of the end of the relevant period • Customer contracts are typically executed 6-24 months ahead of installation • Booking amount typically includes: Bookings • 1) Hardware revenue, which is typically recognized at delivery o
Slide 22: Slide 22