Slide 1: Q3 2023 Financial Results
November 2, 2023 Q3 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 • Third Quarter 2023 Highlights • Technology & Product • Commercial Execution • Financial and Operating Results • Key Takeaways © 2023 Stem, Inc. 3
Slide 4: Third Quarter 2023 Results & Highlights
Third Quarter 2023 Results & Highlights Positioned to meet full year performance targets with strong bookings momentum into 2024 Strong Q3 Momentum* Q3 Highlights Revenue Bookings $134M $676M +34% YoY +203% YoY Record Q3 Bookings, +186% QoQ SB Energy agreement for software and Strong CARR growth, +1
Slide 5: Third Quarter Highlights (continued)
Third Quarter Highlights (continued) Bookings reach all-time high $ in millions Record Bookings Record bookings growth $900 and Steady CARR Growth $100 ● Strength in FTM storage, driven by muni / co-op segment $88 $90 $800 ● Solar backlog +41% YoY $75 $676 $80 $700 $72 ● Consistent strong contracted
Slide 6: Technology Leadership
Technology Leadership New products driving additional value for customers ● Solutions are resonating with customers in multiple markets: Athena named ○ New York Storage: co-optimizing real-time grid calls, local and seasonal Sustainability Product peaks; expect 700+ MWh under Athena control in NY in
Slide 7: Expanded software-only offering: PowerBidder Pro
Expanded software-only offering: PowerBidder Pro Full-featured energy trading toolkit for asset owners and traders Existing offering New offering Managed Services Self-Service Platform Stem manages: Client actively controls: • Wholesale market participation • Bespoke trading strategies • Optimal ris
Slide 8: Stem + SB Energy Global
Stem + SB Energy Global Software & services across 10GWh+ project pipeline SB Energy (SBE) ● SoftBank Group’s utility scale solar, energy storage and technology platform Technology and Commercial Alliance ● Offer Stem modular ESS software and services across multi-year 10GWh SBE Pipeline SBE project
Slide 9: Accelerating Momentum with Munis and Coops
Accelerating Momentum with Munis and Coops • Stem playbook of investing in markets to gain foothold and then building a leadership position Notable Wins: $1B+ - 2020/2021: entered ISO-NE market and built >50% market share in 18 months 200MWh 313MWh 1.3GWh Cooperative Ameresco Cooperative - 2022/2023
Slide 10: Financial and Operating Results
Financial and Operating Results © 2023 Stem, Inc.
Slide 11: Financial Metrics
Financial Metrics Revenue, Adjusted EBITDA and Gross Margin* $ millions unless otherwise noted Q3 Highlights Revenue Adjusted EBITDA ● Adjusted EBITDA tracking towards 34 % positive 2H goal (1) ● Driving operating leverage: (13) ○ Cash operating expense as percentage of revenue of 20% in Q3’23 vs. 2
Slide 12: Operating Metrics
Operating Metrics Strong Momentum in Backlog, CARR and AUM $ millions unless otherwise noted Backlog, CARR and AUM Growth • Backlog +35% QoQ / +125% YoY, driven 35% 1.84 17% by strong bookings 1.36 • CARR up 17% QoQ; raising midpoint full- year guidance of $90 - $95M • Storage AUM up 32% QoQ, contin
Slide 13: Full-Year 2023 Guidance
Full-Year 2023 Guidance 2023E: Q1’23A Q2’23A Q3’23A Q4’23E $513M - $613M $219M- Revenue(1) $67M $93M $134M Prior: $550M –$650M $319M Prior: $230M –$290M 15–20% Non-GAAP Gross Margin 19% 18% 12% Q1’23A Q2’23A Q3’23A Q4’23E 2023E: Bookings $125M- $364M $236M $676M $1.4B - $1.6B $325M 2023E: Year-End 2
Slide 14: Key Takeaways
Key Takeaways Expect Full Year adjusted EBITDA Positive in 2024 • Third quarter momentum driven by strong end market demand: • Record bookings growth • Significant storage backlog, AUM, and CARR growth • Solid solar asset management growth and execution • Software and services deal execution, unders
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 Nine Months Ended $ millions unless otherwise noted September 30, September 30, 2023 2022 2023 2022 Revenue(1) $133.7 $99.5 $294.1 $207.5 GAAP (Loss) Gross Profit (20.3) 9.1 (7.4) 20.5 GAAP Gross Margin % (15%) 9% (3%) 10% Non-GAAP Gross Profit* 21.
Slide 19: Supplemental Revenue Detail
Supplemental Revenue Detail Solar - Supplemental Revenue Detail $ millions Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Solar Hardware Revenue $11.0 $9.5 $27.8 $21.2 Solar Services and Other Revenue 8.5 7.1 25.2 19.1 Total Solar Revenue $19.5 $16.6 $53.0 $40.3
Slide 20: Reconciliation of GAAP and Non-GAAP Gross Profit
Reconciliation of GAAP and Non-GAAP Gross Profit Three Months Ended Nine Months Ended $ millions unless otherwise noted September 30, September 30, 2023 2022 2023 2022 Revenue $133.7 $99.5 $294.1 $207.5 Cost of Revenue (154.0) (90.4) (301.5) (187.0) GAAP Gross (Loss) Profit (20.3) 9.1 (7.4) 20.5 GAA
Slide 21: Reconciliation of Net Loss to Adjusted EBITDA
Reconciliation of Net Loss to Adjusted EBITDA Three Months Ended Nine Months Ended September 30, September 30, $ thousands 2023 2022 2023 2022 Adjusted EBITDA, as used in the Company's full-year 2023 guidance, is a non-GAAP financial measure that Net loss attributable to Stem $(77,072) $(34,279) $(1
Slide 22: 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 23: Slide 23