Stem, Inc. - STEM STOCK NEWS

Stem (NYSE: STEM) has secured a five-year agreement to support a 484 megawatt (MW) solar portfolio in Hungary, marking its largest software deal in EMEA. The company will implement its PowerTrack Web solution to monitor, optimize, and control eight utility-scale sites for Neovolt, a major Hungarian asset owner.

The agreement leverages Stem's AI-driven solar monitoring and optimization solutions, building on its existing 720 MWp install base in the region. Stem's involvement began during the portfolio's development phase, providing network design support and implementing best practices from its European solar plant experience. The company collaborated with local EPCs and O&M provider EXTOR Energy to meet commercial operation targets.

PowerTrack Web's deployment includes remote power plant controls, real-time system updates, and security measures to promote Service Organization Controls (SOC) compliance. The system aims to enhance plant performance through flexible SCADA functionalities and improved production forecasting methods.

Stem (NYSE: STEM) announced that Mercuria Energy Trading has expanded its use of PowerBidder™ Pro to a second clean energy asset in ERCOT. The deployment was completed in under 60 days, demonstrating Stem's efficient software-centric strategy. This marks the second Mercuria asset utilizing PowerBidder Pro since Q3 2024.

The software provides automated bidding management, optimization strategies, and real-time performance metrics through intuitive dashboards. Mercuria's trading teams can customize configurations based on energy storage system constraints, contractual obligations, and risk management objectives in response to market conditions.

Stem announced its third-quarter 2024 results, highlighting a 78% year-over-year revenue decline to $29.3 million, primarily due to reduced battery hardware sales and a $5.6 million adjustment for contract guarantees. However, GAAP gross profit improved to $6.2 million from a loss of $20.3 million in 3Q23, with non-GAAP gross margin rising to 46% from 12% in 3Q23. The company reported a net loss of $148.3 million, exacerbated by a $104.1 million bad debt expense. Adjusted EBITDA was $(3.5) million, compared to $(0.9) million in 3Q23. Stem ended the quarter with $75.4 million in cash. Despite lower bookings and a reduced backlog, contracted storage AUM grew 20% year-over-year to 6.0 GWh. The company revised its full-year 2024 guidance, lowering revenue expectations to $135-$155 million and bookings to $100-$500 million while projecting higher non-GAAP gross margins of 32%-36%. Stem's new strategy focuses on software and services to drive higher-margin, predictable revenue.

Stem Inc. (NYSE: STEM) has appointed Albert Hofeldt, PhD as Chief Technology Officer (CTO), effective immediately. Previously serving as Executive Vice President of Technology since 2022, Dr. Hofeldt will report to interim CEO David Buzby. His primary focus will be combining Stem's PowerTrack™ and Athena® platforms into a single platform for asset management and optimization across solar and storage assets. During his two-year tenure at Stem, Hofeldt has led the integration of solar and storage technology teams, expanded the Technology Center in India, and developed next-generation software solutions including Athena and PowerTrack™ Asset Performance Management.

Stem Inc. (NYSE: STEM) has announced a new software and services-centric strategy aimed at driving scalable growth and profitability. The company is shifting its focus to:

1. Emphasize software and services to generate predictable, recurring, high-margin revenue
2. Expand energy consulting services as a competitive differentiator
3. Enhance AI-enabled software and edge device capabilities
4. Update approach to battery hardware resales

This strategic shift is expected to improve gross margins, working capital, and cash flow profile. Stem will prioritize its PowerTrack and Athena platforms, combining them into a single platform for asset management and optimization across solar and storage assets. The company will provide hardware procurement advisory services but will only procure hardware under strict profitability criteria.

Stem (NYSE: STEM), a global leader in AI-driven clean energy software and services, has announced its upcoming Third Quarter 2024 Earnings Results Conference Call. The call is scheduled for Wednesday, October 30, 2024, at 5:00 p.m. Eastern Time. A press release detailing the financial results will be issued at approximately 4:05 p.m. Eastern Time on the same day.

Investors and interested parties can access the conference call through a live webcast available at https://investors.stem.com/events-and-presentations. Alternatively, the call can be joined via telephone by dialing 1-844-825-9789 (US) or 1-412-317-5180 (International) and referencing Stem. A replay of the call will be available until November 30, 2024, and can be accessed using specific dial-in numbers. An archive of the webcast will remain on Stem's website for 12 months following the call.

Stem (NYSE: STEM) has received a notice from the New York Stock Exchange (NYSE) on August 28, 2024, stating that its average closing stock price has fallen below $1.00 per share over 30 consecutive trading days, violating the NYSE's minimum price requirement. Stem has a six-month cure period to regain compliance by achieving a closing price of at least $1.00 per share and an average closing price of $1.00 over a 30-trading-day period. The company's shares continue to trade on the NYSE, subject to other listing requirements. Failure to meet these conditions could result in delisting. Stem assures that this notice does not affect its business operations, SEC reporting obligations, or existing debt agreements.

Stem, Inc. (NYSE: STEM), a global leader in AI-driven clean energy software and services, announced significant leadership changes. Doran Hole has been appointed as Chief Financial Officer and Executive Vice President, effective September 2, 2024. He will oversee the company's software and services group, including the recently announced Athena® PowerBidder™ Pro product. David Buzby, current Chairman of the Board, has been appointed Executive Chair to partner with CEO John Carrington in a strategic review of the business. Laura D'Andrea Tyson has been named Lead Independent Director of the Board.

The company is streamlining its management structure by eliminating the Chief Strategy Officer role, with Prakesh Patel departing immediately. Stem has also created a Software Strategy Working Group, chaired by board member Gerard Cunningham, to collaborate with management on developing strategy. These changes aim to support the execution of Stem's strategic priorities, focusing on growing software services revenue, extending technology leadership, and driving profitable growth.

Stem reported its Second Quarter 2024 results, highlighting a 63% decrease in revenue to $34.0 million from $93.0 million in Q2 2023. The GAAP gross margin increased to 28% from 13% due to a higher mix of service revenues. Net loss was $582.3 million, primarily due to a $547 million impairment of goodwill. Bookings fell significantly to $25.4 million from $236.4 million in Q2 2023, impacted by project delays. The company's contracted backlog stands at $1.6 billion, a 14% increase year-over-year.

Stem revised its full-year 2024 guidance, projecting revenue of $200-$270 million, a significant decline from prior estimates of $567-$667 million. Despite the challenges, the company expects positive operating cash flow for the year.

Management updates include Bill Bush stepping down as CFO, with Doran Hole taking over from September 2, 2024. The company aims to maintain cash flow and increase software services revenue to drive long-term value.