Slide 1: Q1 2023 Financial Results
May 4, 2023 Q1 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 • First Quarter 2023 Highlights • Commercial Execution • Business Updates • Technology Leadership • Financial and Operating Results • Key Takeaways © 2023 Stem, Inc. 3
Slide 4: First Quarter 2023 Results & Highlights
First Quarter 2023 Results & Highlights Strong sequential Services revenue drives improving Gross Margin Strong Q1 Momentum Q1 Highlights Revenue Bookings $67M $364M +63% YoY +141% YoY Q1 revenue above high end of Named largest Virtual Power Plant guidance range; Software Services provider in North
Slide 5: Strong Commercial Momentum
Strong Commercial Momentum Service revenue growth from differentiated offering Strong growth in software services revenue Continued Strong Growth in ● Software Services Revenue, which excludes Project Services, Software Services Revenue in Q1’23 increased +14% QoQ o Project Services Revenue fluctuat
Slide 6: Business Updates
Business Updates Solar: Business continues to recover ● Services revenue +4% QoQ; Backlog +58% YoY; AUM +0.6 GW QoQ ● Some evidence of easing of supply chain issues and labor shortages ● Expect normalization beginning in 2H’23 Storage: eMobility momentum, FTM market strength ● announced in April 202
Slide 7: Supply Chain Update
Supply Chain Update Diversifying supplier base, reducing reliance on hardware Storage ● Contracted hardware into 2024, but slowing growth of future purchases ○ Reaffirm expected long-term revenue growth rates: ■ Hardware 25 - 35% Modular ESS Solution ■ Services 65 - 85% Expanded Stem ● Aggressively
Slide 8: Technology Leadership
Technology Leadership ISO-NE: Cleared 72% More Capacity in Recent Auction Strong Athena execution for the grid and customers 45 +72% 30 Continued strength in multiple markets MW 43 • ISO New-England: Cleared 68% more megawatts in FCA17 (’26/’27) 15 than FCA16 (’25/’26); expect to clear more capacity
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 March 31, $ millions unless otherwise noted Q1 Highlights Revenue Adjusted EBITDA • Revenue up 63% YoY in Q1’23 63% • On track for full-year Revenue, Non-GAAP Gross Margin and adjusted (13) (14) EBITDA guidance ● E
Slide 11: Operating Metrics
Operating Metrics Strong Momentum in Backlog, CARR, and AUM $ millions unless otherwise noted Backlog, CARR and AUM Growth Backlog CARR • Backlog up 120% YoY, driven by strong 1.24B 1,243B bookings 28% 11% 0.97B 969B • CARR up 11% QoQ; on track for full-year guidance of $80 - $90M • Storage AUM up 1
Slide 12: $240M Green Convertible Senior Notes
$240M Green Convertible Senior Notes December 31, March 31, April 3, 2022 2023 2023 Transaction Overview (in USD millions) Cash $88 $118 $224 ● On April 3, 2023 Stem issued $240M aggregate principal amount of 4.25% Green Convertible Senior Notes due Apr-2030 Short-Term Investments 162 88 88 ● Net pr
Slide 13: Reaffirming Full-Year 2023 Guidance
Reaffirming Full-Year 2023 Guidance 2023E: Q1’23A Q2’23E Q3’23E Q4’23E Revenue $550M - $650M $67M 15% 30% 45% 15–20% Non-GAAP Gross Margin 19% % of annual revenue Q1’23A Q2’23E Q3’23E Q4’23E 2023E: Bookings $364M 20% 25% 30% $1.4B - $1.6B % of annual bookings 2023E: Year-End 2023E: Adj. EBITDA CARR
Slide 14: Key Takeaways
Key Takeaways Reaffirming full-year 2023 guidance • Strong first quarter results: - Revenue above high end of guidance and non-GAAP gross margin at high end of range - Record contracted backlog at $1.2B - Substantial and consistent CARR growth • Building momentum for a strong year: - Bookings of $36
Slide 15: Q&A
stem © 2023 Stem, Inc.
Slide 16: 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 17: Appendix
Appendix © 2023 Stem, Inc.
Slide 18: Financial and Operating Metrics
Financial and Operating Metrics Three Months Ended $ millions unless otherwise noted March 31, 2023 2022 Revenue $67.4 $41.1 GAAP Gross Margin 1.0 3.7 GAAP Gross Margin % 1% 9% Non-GAAP Gross Margin 15.1 6.5 Non-GAAP Gross Margin % 19% 16% Net Loss (44.8) (22.5) Adjusted EBITDA (13.7) (12.8) Operati
Slide 19: Supplemental Revenue Detail
Supplemental Revenue Detail $ millions unless otherwise noted Three Months Ended Three Months Ended March 31, 2023 March 31, 2022 Solar Hardware Revenue $6.9 $4.8 Solar Services and Other Revenue 8.0 4.8 Total Solar Revenue 14.9 9.6 $ millions unless otherwise noted Three Months Ended March 31, June
Slide 20: Reconciliation of GAAP and Non-GAAP Gross Margin
Reconciliation of GAAP and Non-GAAP Gross Margin Three Months Ended $ millions unless otherwise noted March 31, 2023 2022 Revenue $67.4 $41.1 Cost of Revenue (66.4) (37.4) GAAP Gross Margin 1.0 3.7 GAAP Gross Margin (%) 1% 9% Adjustments to Gross Margin GAAP Revenue $67.4 $41.1 Add: Revenue Constrai
Slide 21: Reconciliation of Net Loss to Adjusted EBITDA
Reconciliation of Net Loss to Adjusted EBITDA Three Months Ended March 31, $ thousands 2023 2022 Net loss $(44,778) $(22,483) Adjusted to exclude the following: Depreciation and amortization 11,958 8,896 Interest expense 1,777 3,218 Stock-based compensation 7,202 6,265 Revenue constraint 10,200 ---
Slide 22: Contracted Storage Assets Under Management (AUM)
Contracted Storage Assets Under Management (AUM) From time to time, following execution of customer contracts, we may adjust the total kWh of energy storage systems based on revisions to the system configuration or as a result of changes in hardware specifications due to updates from the original eq
Slide 23: 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
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