Stem (STEM) Q1 2025 Earnings Call April 29, 2025 05:00 PM ET Company Participants Ted Durbin - Vice President - Investor RelationsArun Narayanan - CEODoran Hole - CFODylan Nassano - Vice President Conference Call Participants Justin Clare - MD & Research AnalystThomas Boyes - Analyst Operator Greetings, and welcome to the Stem Inc. First Quarter twenty twenty five Results Conference Call. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentat ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ————————————————— FORM 10-Q ————————————————— ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR STEM, INC. (Exact name of registrant as specified in its charter) Delaware 001-39455 85-1972187 (State or Other Jurisdiction of Incorporation or Organization) (Commission File Number) (IRS Employer Identification No.) 4 Embarcadero Ctr., Suite 710, San Fr ...

Exhibit 99 Stem Announces First Quarter 2025 Results Achieved strong GAAP and non-GAAP gross margins The definitions of bookings, contracted backlog, and CARR have been revised versus prior period disclosure. Thus, related 4Q24 operating metrics in this press release have been recalculated under the revised definitions to achieve a more accurate comparison. See table titled "Key Financial Results and Operating Metrics" for these new definitions. * First quarter of positive operating cash flow in company his ...

Stem (STEM) is set to report its first-quarter 2025 earnings results on April 29.The Zacks Consensus Estimate for the first quarter of 2025 revenues is pegged at $25.80 million, suggesting an increase of 1.30% from the year-ago quarter’s reported figure.The consensus mark for the first-quarter 2025 bottom line is pegged at a loss of 20 cents per share, which has widened by 6 cents over the past 30 days. This also marks a sharp improvement from the year-ago quarter's loss of 46 cents.Stem’s earnings missed t ...

Stem’s (STEM) shares have lost 13% in the past month, underperforming the broader Zacks Computer and Technology sector’s 7.1% drop and the Zacks Computers - IT Services industry’s 9.8% decline.STEM shares have underperformed industry peers like Amdocs (DOX) , CDW Corp. (CDW) and Infosys (INFY) .Over the same timeframe, Amdocs shares have returned 2.2%, while CDW Corp. and Infosys have experienced declines of 5.5% and 10.5%, respectively.The underperformance can be attributed to the disappointing fourth-quar ...

Adia Med Leads Charge to Standardize Umbilical Cord Stem Cell Use Nationwide, Prepares Presentation for New Head of DHHS and FDAMarch 20, 2025 9:30 AM EDT | Source: Adia Nutrition Inc.Winter Park, Florida--(Newsfile Corp. - March 20, 2025) - Adia Med, a division of ADIA Nutrition Inc. (OTC Pink: ADIA), is driving a transformative effort to standardize umbilical cord stem cell use across the United States, prioritizing quality, safety, and accountability. This initiative sets rigorous best prac ...

Core Insights - The Progress Women in STEM Scholarship Series aims to empower future women leaders in STEM fields, supporting students in the U.S., Bulgaria, and India [1][2] Group 1: Scholarship Details - The Mary Székely Scholarship for Women in STEM offers a renewable $10,000 scholarship for women in Massachusetts pursuing undergraduate degrees in computer science, software engineering, IT, or computer information systems [2] - The Women in STEM Scholarship Program in Bulgaria awards two scholarships of BGN 3,000 each (approximately $1,700) for women in their second, third, or fourth year of study in relevant fields at accredited Bulgarian universities [3] - The Akanksha Scholarship for Women in STEM in India provides a renewable award of up to INR 1,50,000 (approximately $2,000) annually for women pursuing undergraduate degrees in related fields, emphasizing resilience and ambition [4] Group 2: Corporate Social Responsibility - The scholarship series is part of the Progress for Tomorrow Corporate Social Responsibility (CSR) program, highlighting the company's commitment to innovation and social impact [5] - Past scholarship recipients have demonstrated innovation in various fields, including AI applications for affordable housing and technology integration with art and sustainability [5] Group 3: Application Information - Applications for the scholarships must be submitted by April 11, 2025, with details available on the Progress website [6]

Revenue and Financial Performance - Total hardware revenue for fiscal year 2024 was $76.8 million, accounting for 53.1% of total revenue, down from $399.0 million and 86.4% in fiscal year 2023[90]. - The company has incurred an accumulated deficit of approximately $1,626.5 million as of December 31, 2024, and expects to continue to incur net losses on a GAAP basis through at least 2025[109]. - The company's financial condition and results of operations are expected to fluctuate quarterly, with potential revenue reductions due to a new business strategy announced in October 2024[188]. - Future revenue and key operating metrics may fall short of investor expectations, adversely affecting the stock price[189]. - The company may issue a significant number of shares in the future for investments or acquisitions, potentially leading to dilution for existing shareholders[190]. Business Strategy and Transition - The company announced a new strategy on October 1, 2024, focusing on transitioning from hardware resales to a software- and services-focused business[89]. - The transition is expected to lead to decreased revenue in the short term, potentially straining cash flow and limiting investment in necessary technologies and infrastructure[90]. - The future growth of the company depends on successfully executing new product and market opportunities, particularly in AI-enabled software and services[85]. - The company plans to pursue future acquisitions to enhance revenue and market position, but such efforts may involve significant risks and costs[112]. Market and Competitive Landscape - The distributed generation industry is emerging, and there is uncertainty regarding the widespread market acceptance of the company's offerings[79]. - The company faces significant competition from established providers with more capital resources and longer operating histories[84]. - The market for renewable energy generation is rapidly evolving, and the company's revenue and profitability may be adversely impacted if demand does not develop as anticipated[80]. - The company relies on significant customers for a substantial portion of its revenue, and any loss of these relationships could lead to a significant decline in revenue[72]. Operational Risks and Challenges - The company may experience operational disruptions and restructuring-related costs during the transition to its new strategy[91]. - The lengthy sales cycle for hardware and software-enabled services typically ranges from six to 12 months, which may adversely affect revenue generation and operational results[100]. - The company faces supply chain risks, including potential disruptions from international vendors and geopolitical factors, which could negatively impact operations and customer relationships[94]. - The company has entered into long-term supply agreements that may result in insufficient inventory, impacting operational results if suppliers fail to meet quality and quantity requirements[96]. - The company is subject to credit risk from customers, with potential delays in payments adversely affecting revenue and financial condition[99]. Customer and Market Dynamics - Customer retention is critical for the company's subscription services, and failure to renew or expand subscriptions could adversely affect financial results[136]. - Subscription revenue is recognized ratably over contract terms, meaning declines in new or renewed subscriptions may not immediately impact revenue but will affect future quarters[138]. - The successful installation of energy storage systems is contingent upon timely interconnection to local electric grids, with delays potentially impacting revenue recognition[135]. Regulatory and Compliance Issues - The company is facing regulatory risks due to negative attitudes toward renewable energy projects, which could adversely affect its business and financial condition[168]. - Environmental laws and regulations are complex and evolving, potentially leading to liability for administrative oversight costs and fines[169]. - The company is subject to significant compliance burdens due to the Uyghur Forced Labor Prevention Act, potentially causing supply chain constraints and project delays[180]. - The company continues to develop and refine its internal controls over financial reporting, which may require significant resources[193]. Technology and Innovation - The performance of the Athena platform is critical; disruptions or outages could significantly affect customer satisfaction and financial results[125]. - The company's future growth relies on developing and maintaining proprietary technology, including the Athena platform, to support its products and services[152]. - The company has received patents and filed applications to protect its technology, but there is no assurance that these measures will prevent misappropriation[152]. External Economic Factors - Unfavorable macroeconomic conditions, such as inflation and rising interest rates, could reduce investment in projects utilizing the company's services[206]. - The economic benefit of the company's offerings is influenced by local electricity rates, which are subject to change, potentially affecting the demand for energy storage systems[131]. - Changes in U.S. trade policies, including tariffs, could disrupt supply chains and negatively impact costs and gross margins, with a 25% tariff on steel and a 10% tariff on aluminum already imposed[175]. Legal and Litigation Risks - The company has faced two securities class action lawsuits filed in May and July 2023, alleging violations of the Securities Exchange Act and seeking damages and litigation costs[187]. - The company is subject to increased legal, accounting, and financial compliance costs due to the requirements of the Sarbanes-Oxley Act and other regulations[191].

Financial Data and Key Metrics Changes - Total revenue decreased significantly year-over-year due to reduced hardware sales, while software revenue increased by 6% year-over-year driven by strong performance from PowerTrack and increased storage software activations [22][24] - GAAP gross margin decreased sequentially due to a one-time impairment of deferred services, while non-GAAP gross margin was down sequentially but up year-over-year [23] - Adjusted EBITDA and operating cash flow declined year-over-year due to lower gross profit from reduced battery hardware sales [24][29] Business Line Data and Key Metrics Changes - PowerTrack has gained traction among larger customers, with 13 of the top 16 commercial and industrial solar asset owners in the U.S. standardizing on it [14] - The company expects continued strong growth in software and edge device sales in 2025, with gross margins on PowerTrack software ranging from 70% to 80% [15][26] - Operating Annual Recurring Revenue (ARR) was up 3% versus the third quarter and up 19% year-over-year, driven by storage activations and steady PowerTrack growth [25] Market Data and Key Metrics Changes - The company anticipates battery hardware resale revenue to be heavily weighted towards the back end of 2025, with gross margins in the 5% to 10% range [27] - The company is focusing on international opportunities with PowerTrack, particularly in untapped markets [14] Company Strategy and Development Direction - The company is pivoting to a software-centric strategy, emphasizing the importance of software in driving revenue growth and profitability [8][13] - Key priorities include growing software revenue, reducing cost structure, and revamping software development processes [13][18] - The company plans to redefine metrics such as backlog and ARR to provide better visibility into revenue sources [31][32] Management's Comments on Operating Environment and Future Outlook - Management acknowledges recent disappointing financial results but is taking concrete steps to improve them [12] - The CEO expressed confidence in the company's foundation to build a successful software business and highlighted the importance of customer value [8][36] - The company expects operating cash flows to improve in 2025, aided by working capital releases related to OEM hardware [24][29] Other Important Information - The company received a notice from the New York Stock Exchange regarding non-compliance with listing standards and is considering a reverse stock split [34] - The company ended the year with approximately $58 million in cash [24] Q&A Session Summary Question: Can you comment on the Power Better offering and its fit within the broader strategy? - The CEO mentioned that Power Biotech Pro is part of the software strategy pivot and is currently being evaluated for additional use cases [39] Question: What are the reasons for the delays in some projects in the backlog? - Management indicated that delays were due to increased development costs associated with interconnection and permitting, leading to a conservative approach in cleaning up the backlog [42] Question: Is the $35 million battery hardware resale expected to be a steady state or will it phase out? - Management clarified that hardware sales will be opportunistic and not the focus of the business moving forward [44][47] Question: Can you explain the difference between the new metrics for contracted backlog and bookings? - Management explained that the new metrics focus on fully executed purchase orders, providing clearer visibility into future revenue sources [50][52] Question: Why didn't the significant growth in storage operating AUM correspond with an increase in software revenue? - A one-time reduction in fourth-quarter software revenue associated with SPE deals was cited as the reason for the disparity [58] Question: What is the minimum cash required to proceed with the 2025 plan before considering external financing? - Management indicated that the current cash balance is sufficient to support operations without immediate external financing [62][64] Question: How do you expect to bridge the gap between 2024 and 2025 in terms of operating costs? - Management highlighted operational cost savings and the elimination of inefficiencies as key drivers for reducing costs [82][84] Question: How should investors think about the growth required to achieve significant EBITDA? - The CEO emphasized that growth for software comes with a different scaling model, focusing on building differentiated IP and deploying it into various markets [106][108]

分组1 - Stem, Inc. reported a quarterly loss of $0.12 per share, better than the Zacks Consensus Estimate of a loss of $0.16, and an improvement from a loss of $0.21 per share a year ago, representing an earnings surprise of 25% [1] - The company posted revenues of $55.83 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 14.96%, but down from $167.42 million in the same quarter last year [2] - Stem shares have declined approximately 33.7% since the beginning of the year, contrasting with the S&P 500's decline of only 0.5% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is -$0.21 on revenues of $58.58 million, and for the current fiscal year, it is -$0.47 on revenues of $261.21 million [7] - The Computers - IT Services industry, to which Stem belongs, is currently ranked in the top 32% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]