Stem Names Software Veteran Arun Narayanan as Chief Executive Officer

Rhea-AI Summary

Stem (NYSE: STEM) has appointed Arun Narayanan as its new Chief Executive Officer, effective January 27, 2025. This appointment concludes the CEO search announced in September 2024 and advances Stem's transformation to a software and services company. David Buzby will step down as Interim CEO and Executive Chairman but remain Board Chair.

Narayanan brings over 25 years of software technology expertise, having previously served as CEO of RES Digital Solutions, Chief Data Officer at Anglo American, and held various software leadership positions at SLB. His appointment aligns with Stem's strategy to become a leading AI-powered energy software company, complementing the recent addition of Doran Hole as EVP and CFO.

The new CEO's background spans industries including oil and gas and renewable energy, with significant experience in building industry-leading software for global clients. At RES Digital Solutions, Narayanan led software product development and digital transformation initiatives in the renewables sector.

Positive

• Strategic alignment with software-focused transformation through appointment of experienced software executive
• Strengthened executive team with both new CEO and recently appointed CFO bringing relevant industry experience
• New CEO brings specific expertise in renewable energy software and digital transformation

Negative

• Leadership transition period may create temporary operational uncertainty

Insights

Corporate Leadership Expert

The appointment of Arun Narayanan as CEO marks a strategic pivot for Stem towards becoming a software-centric clean energy company. His extensive background in software technology, particularly in energy and renewables, aligns perfectly with Stem's transformation goals. The selection of a software veteran with experience at major companies like SLB and Anglo American demonstrates the board's commitment to accelerating the company's AI-powered software strategy.

The timing of this appointment, coupled with the recent addition of CFO Doran Hole, suggests a comprehensive leadership overhaul aimed at improving execution and financial discipline. This dual expertise in software and finance could help address Stem's profitability challenges, which have been reflected in its declining market capitalization of $139 million.

The transition from David Buzby's interim leadership to Narayanan's permanent role provides needed stability and clear strategic direction. Narayanan's experience at RES Digital Solutions specifically in renewable energy software solutions offers valuable industry-specific expertise that could help Stem better monetize its AI-enabled clean energy platform.

Technology Strategy Analyst

Narayanan's appointment signals a deliberate shift in Stem's business model from a hardware-focused energy storage company to a software and services provider. His experience building VOXEL at Anglo American and developing software solutions at SLB demonstrates capabilities in creating scalable, enterprise-grade platforms - critical for Stem's evolution in the clean energy software market.

The emphasis on software expertise in leadership selection reflects an understanding that future value creation in clean energy will increasingly depend on sophisticated software solutions rather than hardware installations. This strategic pivot could potentially help Stem improve its margins and create more recurring revenue streams through software licensing and services.

However, the success of this transformation will largely depend on how effectively Narayanan can leverage Stem's existing AI capabilities while expanding its software offerings in a highly competitive market. The company's relatively small market cap suggests significant execution challenges ahead in this transformation journey.

Proven software executive with more than 25 years of experience to lead Company in execution of its software-focused strategy

Concludes CEO search announced in September 2024 and advances Stem’s transformation to a software and services company

David Buzby to step down as Interim CEO and Executive Chair, will remain Board Chair

SAN FRANCISCO--(BUSINESS WIRE)-- Stem, Inc. (NYSE: STEM), a global leader in artificial intelligence (AI)-enabled clean energy software and services, today announced that its Board of Directors has appointed Arun Narayanan as Stem’s new Chief Executive Officer, effective January 27, 2025. Additionally, David Buzby will step down as Interim CEO and Executive Chairman of the Board, effective January 27, 2025, and will remain Chair of the Board.

“On behalf of the Board and the Stem leadership team, I am thrilled to welcome Arun to Stem,” said David Buzby, Executive Chair and Interim CEO. “Throughout our search for a new CEO, we prioritized finding a leader with deep software expertise and a track record of transformative leadership to advance Stem’s software and services strategy forward and to drive scalable growth and enhance long-term profitability. Arun's expertise in building and managing software driven enterprises rounds out an experienced management team that includes Doran Hole who recently joined as Executive Vice President and Chief Financial Officer bringing 25 years of relevant industry experience and financial discipline. Collectively, we now have a full team capable of taking advantage of the opportunity to build the leading AI powered energy software company.”

“I thank the Board for entrusting me to build upon Stem’s rich history of best-in-class execution and to advance the Company’s strategy,” said Mr. Narayanan. “I have always seen software as the catalyst in accelerating the clean energy transition and the key contributor to meeting our planet's climate goals. I look forward to working alongside the talented team at Stem to accelerate progress on our go-to-market strategy, drive growth and innovation, and deliver exceptional software-driven value to our customers, partners, and investors, helping promote safe, sustainable, and resilient energy systems.”

Mr. Narayanan is a seasoned business and digital leader with more than 25 years of expertise in software technology, operations, data and analytics, spanning industries such as oil and gas and renewable energy. His decades of experience at SLB (formerly Schlumberger) and Anglo American, building industry leading software for demanding global clients is a perfect complement to Stem’s vision and well-timed for this pivotal moment in the Company’s strategy and growth. Furthermore, Mr. Narayanan’s recent experience in the renewable energy industry sets the stage for a seamless entry as the leader and member of Stem’s strong executive management team.

Prior to joining Stem, Mr. Narayanan served as CEO of RES Digital Solutions, a division of RES, a global independent renewable energy company. In this role, Mr. Narayanan spearheaded innovation and led the development of cutting-edge software products and solutions, driving the digital transformation of the renewables sector. Prior to that, Mr. Narayanan was the Chief Data Officer of Anglo American, where he led the digital strategy to build its industry-leading data analytics platform, VOXEL.

Mr. Narayanan began his career at SLB, a Global Fortune 500 energy technology company, where, over his 21-year career, he held a range of software focused leadership positions and was ultimately responsible for defining and implementing software solutions as Vice President, Data & Analytics for Schlumberger’s Software division.

Forward-Looking Statements

Statements contained in this press release that are not statements of historical fact, including those that relate to our strategy and initiatives, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The potential risks and uncertainties that could cause our actual results, performance or achievements to differ from predicted results, performance or achievements include our ability to execute on, and achieve the expected benefits from, our operational and strategic initiatives; our ability to continue to grow and manage our growth effectively; our ability to attract and retain qualified employees and key personnel; our ability to retain or upgrade current customers, further penetrate existing markets or expand into new markets; our ability to meet contracted customer demand; supply chain interruptions and manufacturing or delivery delays; disruptions in sales, production, service or other business activities; general macroeconomic and business conditions in key regions of the world, including inflationary pressures, general economic slowdown or a recession, rising interest rates, changes in monetary policy, instability in financial institutions, and the prospect of a shutdown of the U.S. federal government; the direct and indirect effects of widespread health emergencies on our workforce, operations, financial results and cash flows; geopolitical instability, such as the ongoing conflict in Ukraine; the results of operations and financial condition of our customers and suppliers; pricing pressures; severe weather and seasonal factors; our ability to comply with, and the effect on our business of, evolving legal standards and regulations, including those concerning data protection, consumer privacy, sustainability and evolving labor standards; risks relating to the development and performance of our energy storage systems and software-enabled services; the risk that our business, financial condition and results of operations may be adversely affected by other political, economic, business and competitive factors; and other risks and uncertainties discussed in our most recent Forms 10-K, 10-Q and 8-K filed with or furnished to the SEC. Statements in this press release are made as of the date of this release, and Stem disclaims any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events, or otherwise, except as required by law.

About Stem

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 software platform, Athena® enables organizations to deploy and unlock value from clean energy assets at scale. Powerful applications, including AlsoEnergy’s PowerTrack, simplify and optimize asset management and connect an ecosystem of owners, developers, assets, and markets. Stem also offers integrated partner solutions to help improve returns across energy projects, including storage, solar, and EV fleet charging. For more information, visit www.stem.com.

Source: Stem, Inc.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250116467360/en/

Stem Investor Contacts

Ted Durbin, Stem

Marc Silverberg, ICR

IR@stem.com

Stem Media Contact

Suraya Akbarzad, Stem

press@stem.com

Source: Stem, Inc.

FAQ

When will Arun Narayanan start as CEO of Stem (NYSE: STEM)?

Arun Narayanan will begin his role as CEO of Stem on January 27, 2025.

What is Stem's (NYSE: STEM) new strategic direction under Arun Narayanan?

Under Arun Narayanan, Stem is advancing its transformation to become a software and services company, focusing on AI-enabled clean energy solutions.

What is Arun Narayanan's previous experience before joining Stem (NYSE: STEM)?

Narayanan was CEO of RES Digital Solutions, Chief Data Officer at Anglo American, and spent 21 years at SLB in software leadership positions.

How does Stem's (NYSE: STEM) new CEO appointment align with company strategy?

The appointment aligns with Stem's strategy to become a leading AI-powered energy software company, leveraging Narayanan's extensive software and renewable energy expertise.

What changes are happening to Stem's (NYSE: STEM) board leadership structure?

David Buzby will step down as Interim CEO and Executive Chairman but will continue as Board Chair, effective January 27, 2025.