Group 1 - Phoenix Capital Group announced a $2,000 sponsorship in collaboration with The West Point Society of North Texas to support STEM education and mental health resources [1] - The sponsorship will fund the Society's Leadership Ethics and Diversity in STEM (LEADS) Workshop, aimed at preparing 7th-12th grade students to become STEM-competent leaders [3] - The charity event raised over $40,000, which will support both STEM students and Compassion Neuroscience [5] Group 2 - Founded in 2019, Phoenix Capital Group specializes in oil and gas mineral rights acquisition and investment, focusing on discovering untapped value for landowners across the United States [2] - The company is committed to promoting community engagement and fostering positive change through strategic philanthropy [6] - Under the leadership of CEO Adam Ferrari, the company aims to empower individuals and enhance communities while investing in the next generation of STEM leaders [7]

stem October 30, 2024 Q3 2024 Financial Results 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 such as "expect," "may," "can," "believe," "predict," "plan," "potential," "projected," "projections," "forecast," "estimate," "intend," "anticipate," "ambition," "g ...

Financial Data and Key Metrics Changes - Revenues for Q3 2024 were $29 million, a sharp decline year-over-year, primarily due to lower hardware resale revenue [21] - GAAP gross margin was reported at 21%, while non-GAAP gross margin reached a record 46%, reflecting a larger contribution from high-margin software and services revenue [21] - Adjusted EBITDA and operating cash flow declined slightly year-over-year due to lower gross profit from battery hardware resales [23] Business Line Data and Key Metrics Changes - Solar revenue grew by 19% year-over-year, while services revenue reached a record $22 million, up 33% year-over-year [23] - Software revenues increased by 10% quarter-over-quarter and 19% year-over-year [22] - The company reported a slight uptick in storage assets under management by about 200 megawatt hours and growth of about 1.6 gigawatts for solar during the quarter [24] Market Data and Key Metrics Changes - The backlog fell slightly since the second quarter, with relatively low bookings of $29 million [24] - Annual recurring revenue (ARR) increased by over $3 million, split roughly evenly between solar and storage assets [22] Company Strategy and Development Direction - The new strategy focuses on four key initiatives: refining the product and go-to-market approach centered around software and services, expanding consultative energy services, enhancing innovation through AI, and changing the approach to battery hardware [8][9] - The company aims to generate revenue earlier in the project lifecycle through consultative energy services, reducing reliance on hardware resale [9] - The strategy aims for more predictable revenue growth, higher gross margins, and improved profitability [31] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the unpredictability of project timelines for utility-scale storage hardware, prompting a strategic shift to reduce reliance on this revenue stream [9] - The company expects a lower overall revenue base in the long term but anticipates much more predictable revenue growth and significantly higher gross margins [26] - Operating expenses are expected to be reduced by around 15% by the end of the year, focusing on driving the company to profitability [27] Other Important Information - The company is undergoing a CEO search, with hopes to identify a new permanent CEO by the end of the year [30] - The leadership team has undergone significant changes, with a focus on driving innovation and achieving strategic goals [12] Q&A Session Summary Question: Customer feedback on strategic shift and management changes - Customer response has been generally positive, with an increasing sophistication in purchasing storage hardware [36] Question: Enhancements requested by customers for software products - Customers are looking for improved user information flow, predictive capabilities leveraging AI, and automated warnings and resolution processes [38] Question: Modular ESS solution's relevance in the new strategy - The modular component remains a significant part of the overall architecture and strategy [40] Question: Nature of future bookings under the new strategy - Future bookings will likely include both hardware and software, depending on customer requirements [44] Question: Change in contract duration from 15-20 years to 3-5 years - The shift is primarily driven by the focus on software, with shorter contracts providing more flexibility for customers [46] Question: Revenue expectations for shorter duration contracts - There is not expected to be a significant change in annual revenue numbers, primarily focusing on shorter contracts [50] Question: Outlook for storage software activations and ARR - The company is taking a close look at the cadence between CARR and ARR but is not in a position to disclose specific figures at this time [54]

Financial Performance - Total revenue decreased from $133.7 million for the three months ended September 30, 2023, to $29.3 million for the same period in 2024, representing a decline of approximately 78%[94] - Net losses for the three months ended September 30, 2024, were $148.3 million, compared to net losses of $77.1 million for the same period in 2023, indicating an increase in losses of about 92%[94] - For the nine months ended September 30, 2024, total revenue was $88.8 million, down from $294.1 million for the same period in 2023, a decrease of approximately 70%[94] - The company incurred net losses of $802.9 million for the nine months ended September 30, 2024, compared to $102.7 million for the same period in 2023, reflecting a significant increase in losses[94] - Revenue for the three months ended September 30, 2024, was $29.3 million, a decrease from $133.7 million for the same period in 2023, representing a decline of approximately 78%[112] - Non-GAAP gross profit for the three months ended September 30, 2024, was $16.2 million, compared to $21.4 million in the same period of 2023, reflecting a decrease of about 24%[112] - Adjusted EBITDA for the three months ended September 30, 2024, was $(3.5) million, compared to $(0.9) million for the same period in 2023, indicating a worsening of performance[114] - GAAP gross profit for the three months ended September 30, 2024, was $6.2 million, compared to a loss of $20.3 million in the same period of 2023, reflecting a significant improvement[134] - Gross profit (loss) for the nine months ended September 30, 2024, was $(8.6) million, compared to $(7.4) million for the same period in 2023, reflecting a 16% increase in loss[147] Cash and Liquidity - As of September 30, 2024, the company had cash and cash equivalents of $75.4 million, down from $89.6 million as of June 30, 2024, and $105.4 million as of December 31, 2023[96] - As of September 30, 2024, cash and cash equivalents were $75.4 million, with net accounts receivable of $92.7 million[161] - The total financing obligation as of September 30, 2024, was $59.7 million, with $15.0 million classified as a current liability[163] - The company reported a net cash inflow of $72.5 million from changes in operating assets and liabilities for the nine months ended September 30, 2024[170] Revenue Trends and Constraints - Seasonal trends have historically led to most revenue being recognized in the third and fourth quarters, with these periods accounting for 65% of total revenue in the fiscal year ended December 31, 2023[102] - The company recorded a revenue constraint of $10.2 million in the nine months ended September 30, 2023, impacting overall revenue recognition[110] - The total dollar amount of indexed contracts related to lithium carbonate was approximately $52.0 million, with revenue recorded in Q1 2023 of approximately $42.0 million, net of a $10.2 million revenue constraint[110] - The company expects to receive final consideration of at least approximately $34.0 million from indexed contracts in the future[110] Operating Expenses - Total operating expenses increased by $102.7 million, or 214%, for the three months ended September 30, 2024, compared to the same period in 2023, driven by a significant impairment charge[134] - Operating expenses increased by $645.3 million, or 466%, for the nine months ended September 30, 2024, compared to the same period in 2023[147] - General and administrative expense increased by $5.3 million, or 24%, for the three months ended September 30, 2024, primarily due to a one-time contract cancellation payment of $10.0 million[140] - Research and development expenses decreased by $3.3 million, or 23%, for the three months ended September 30, 2024, compared to the same period in 2023[138] Market and Regulatory Environment - The company is assessing the impact of the U.S. Inflation Reduction Act of 2022 on its business and customer incentives, which may affect future revenue and cost structures[105] - The company faces increased competition from existing and new market entrants, which may adversely affect its market share and revenue generation capabilities[107] - Government regulations, including the IRA, significantly influence the pricing and deployment of the company's products and services, impacting overall business operations[108] Compliance and Notices - The company received a notice from the NYSE on August 28, 2024, for non-compliance with listing standards due to the average closing price of its shares falling below $1.00[98] Future Plans and Financing - Future expansion plans may include geographical expansion and joint ventures, but these are not required to achieve current business objectives[161] - The company issued $460.0 million aggregate principal amount of 2028 Convertible Notes, with net proceeds of approximately $445.7 million after expenses[164] - The company used approximately $99.8 million of the net proceeds from the 2030 Convertible Notes to purchase and cancel approximately $163.0 million of the 2028 Convertible Notes[167] - The 2030 Convertible Notes bear an interest rate of 4.25% per year, maturing on April 1, 2030[165] Backlog and Bookings - Bookings for the three months ended September 30, 2024, were $29.1 million, compared to $78.3 million in the same period of 2023[134] - Contracted backlog as of September 30, 2024, was $1,547.4 million, compared to $1,836.6 million as of September 30, 2023[134]

Stem, Inc. (STEM) came out with a quarterly loss of $0.21 per share versus the Zacks Consensus Estimate of a loss of $0.20. This compares to loss of $0.17 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -5%. A quarter ago, it was expected that this company would post a loss of $0.23 per share when it actually produced a loss of $0.22, delivering a surprise of 4.35%. Over the last four quarters, the company has surpassed conse ...

Revenue and Financial Performance - Revenue decreased 78% year-over-year to $29.3 million in 3Q24, down from $133.7 million in 3Q23, primarily due to reduced battery hardware sales and a $5.6 million adjustment from revised hardware contract valuations[1][5] - The company updated its full-year 2024 revenue guidance to $135-$155 million, down from the previous range of $200-$270 million, reflecting project delays and the new strategy implementation[14] - Total revenue for the nine months ended September 30, 2024, was $88.759 million, a significant decrease from $294.091 million in the same period in 2023[32] - Revenue for the three months ended September 30, 2024, was $29.3 million, compared to $133.7 million in the same period in 2023[38] - Revenue for the nine months ended September 30, 2024, was $88.8 million, compared to $294.1 million in the same period in 2023[38] Gross Margin and Profitability - GAAP gross margin improved to 21% in 3Q24, up from (15)% in 3Q23, driven by a higher mix of software and services revenue[1][6] - Non-GAAP gross margin reached a record 46% in 3Q24, up from 12% in 3Q23, reflecting strong growth in high-margin software and services revenue[1][7] - GAAP gross profit for the three months ended September 30, 2024, was $6.2 million, with a gross margin of 21%, compared to a loss of $20.3 million and a margin of -15% in 2023[38] - Non-GAAP gross profit for the three months ended September 30, 2024, was $16.2 million, with a gross margin of 46%, compared to $21.4 million and a margin of 12% in 2023[38] - GAAP gross profit for the nine months ended September 30, 2024, was a loss of $8.6 million, with a gross margin of -10%, compared to a loss of $7.4 million and a margin of -3% in 2023[38] - Non-GAAP gross profit for the nine months ended September 30, 2024, was $43.5 million, with a gross margin of 34%, compared to $52.9 million and a margin of 15% in 2023[38] - Gross loss for the nine months ended September 30, 2024, was $8.620 million, compared to a gross loss of $7.426 million in the same period in 2023[32] Net Loss and Impairments - Net loss widened to $148.3 million in 3Q24, compared to $77.1 million in 3Q23, primarily due to a $104.1 million bad debt expense related to impaired receivables[1][8] - Net loss for the nine months ended September 30, 2024, was $802.877 million, compared to a net loss of $102.728 million in the same period in 2023[32] - Net loss for the nine months ended September 30, 2024, was $802.9 million, compared to $102.7 million in the same period in 2023[34] - Impairment of goodwill for the nine months ended September 30, 2024, was $547.152 million[32] - Impairment of goodwill for the nine months ended September 30, 2024, was $547.2 million[34] - A bad debt expense of $104.1 million was recorded in Q3 2024 due to impairment of accounts receivable related to customer contracts with parent company guarantees[16][26] Cash Flow and Liquidity - Cash and cash equivalents decreased to $75.364 million as of September 30, 2024, from $105.375 million as of December 31, 2023[30] - Net cash used in operating activities for the nine months ended September 30, 2024, was $21.9 million, compared to $205.2 million in the same period in 2023[34] - Cash, cash equivalents, and restricted cash at the end of September 30, 2024, were $77.2 million, compared to $98.2 million at the end of September 30, 2023[34] - Proceeds from maturities of available-for-sale investments for the nine months ended September 30, 2024, were $8.3 million, compared to $119.7 million in the same period in 2023[34] - Repayment of financing obligations for the nine months ended September 30, 2024, was $7.0 million, compared to $7.8 million in the same period in 2023[34] Assets and Liabilities - Total current assets decreased to $227.530 million as of September 30, 2024, from $472.965 million as of December 31, 2023[30] - Total liabilities decreased to $881.390 million as of September 30, 2024, from $930.296 million as of December 31, 2023[30] Bookings and Backlog - Contracted backlog decreased 2% sequentially to $1.55 billion in 3Q24, driven by low bookings and backlog conversion to revenue[9] - Bookings dropped to $29.1 million in 3Q24, down from $676.4 million in 3Q23, reflecting the strategic shift towards higher-margin software and services[10] - Contracted Backlog represents the total value of bookings in dollars as of a specific date, increasing with new contracts and decreasing as systems are delivered and recognized as revenue[41] Contracted Assets and Recurring Revenue - Contracted storage AUM increased 3% sequentially to 6.0 GWh in 3Q24, while solar monitoring AUM rose 6% to 28.5 GW[10] - CARR grew 2% sequentially to $92.3 million in 3Q24, up from $90.1 million in 2Q24[11] - Contracted Assets Under Management (AUM) includes the total GWh of storage systems in operation or under contract[41] - Contracted Annual Recurring Revenue (CARR) is the annual run rate for all executed software services contracts, including those for systems not yet commissioned or operating[41] Strategic Shifts and Leadership - The company appointed Albert Hofeldt as Chief Technology Officer to lead enhanced AI-enabled software and edge device capabilities as part of the new software and services-centric strategy[13] - The company has not issued new hardware value guarantees since June 2023 and does not intend to issue any in the future[16] Non-GAAP Metrics - Adjusted EBITDA and non-GAAP gross profit are used for financial and operational decision-making, excluding certain expenses like stock-based compensation and non-cash charges[19][20] - Non-GAAP gross margin is defined as non-GAAP gross profit as a percentage of revenue[23] - Adjusted EBITDA for the nine months ended September 30, 2024, was $(27.0) million, compared to $(24.1) million in the same period in 2023[37] Market Conditions and Risks - The company recorded a net revenue reduction of $37.4 million in hardware revenue for Q3 2023, $38.7 million for Q1 2024, and $5.6 million for Q3 2024 due to market conditions and revised asset valuations[16] - The company faces risks from macroeconomic factors, including inflation, interest rates, geopolitical tensions, and potential economic slowdowns[17] - Forward-looking statements include expectations regarding financial targets, business strategy, and the impact of macroeconomic and geopolitical factors[28] Lithium Carbonate Contracts - The company recorded $42 million in revenue for Q1 2023, net of a $10 million revenue constraint, related to indexed contracts tied to lithium carbonate prices[24] - The total dollar amount of indexed purchase orders for lithium carbonate-related contracts is approximately $52 million[24] - The company expects to receive at least $34 million in final consideration from indexed purchase orders[24] Operating Expenses and Share Metrics - Total operating expenses for the nine months ended September 30, 2024, were $783.693 million, compared to $138.367 million in the same period in 2023[32] - Weighted-average shares used in computing net loss per share increased to 160,997,019 for the nine months ended September 30, 2024, from 155,474,725 in the same period in 2023[32] - Stock-based compensation for the nine months ended September 30, 2024, was $21.7 million, compared to $28.3 million in the same period in 2023[34] - Depreciation and amortization expense for the nine months ended September 30, 2024, was $33.2 million, compared to $33.6 million in the same period in 2023[34] - Change in fair value of derivative liability for the nine months ended September 30, 2024, was $(1.5) million, compared to $7.7 million in the same period in 2023[34] Customer Contracts and Installations - Customer contracts are typically executed 6-24 months ahead of installation, with bookings including hardware and services revenue[40]

SkinSpirit will make a kick-off donation and offer clients the ability to donate directly to Girls Inc. from November 1 – 15thIRVINE, Calif., Oct. 29, 2024 /PRNewswire/ -- In its sixth year of partnership with Girls Inc., Allergan Aesthetics, an AbbVie company, will be joined by SkinSpirit, a premier destination for medical aesthetics and skincare, in their efforts to inspire girls to be strong, smart and bold and explore career paths in STEM.In its first year of participation, SkinSpirit will kick off the ...

Core Viewpoint - Stem, Inc. (STEM) is anticipated to report a year-over-year decline in earnings due to lower revenues, with the upcoming earnings report expected on October 30 [1][2]. Financial Expectations - The consensus estimate predicts a quarterly loss of $0.19 per share, reflecting an 11.8% decrease year-over-year [2]. - Revenues are projected to be $118.25 million, down 11.6% from the same quarter last year [2]. Estimate Revisions - The consensus EPS estimate has been revised 10% lower in the last 30 days, indicating a reassessment by analysts [3]. - The Most Accurate Estimate for Stem is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +1.72%, suggesting a bullish outlook from analysts [6]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [5]. - Stem currently holds a Zacks Rank of 3, which, along with the positive Earnings ESP, suggests a likelihood of beating the consensus EPS estimate [6]. Historical Performance - In the last reported quarter, Stem was expected to post a loss of $0.23 per share but actually reported a loss of $0.22, resulting in a surprise of +4.35% [7]. - Over the past four quarters, Stem has beaten consensus EPS estimates two times [7]. Industry Comparison - Check Point Software (CHKP), another player in the Computers - IT Services industry, is expected to report earnings of $2.25 per share, reflecting an 8.7% year-over-year increase, with revenues projected at $635.43 million, up 6.6% [9]. - Check Point has maintained its consensus EPS estimate over the last 30 days and has an Earnings ESP of 1.26%, indicating a likelihood of beating the consensus EPS estimate [9].

Stem, Inc. (STEM) came out with a quarterly loss of $0.22 per share versus the Zacks Consensus Estimate of a loss of $0.23. This compares to loss of $0.56 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 4.35%. A quarter ago, it was expected that this company would post a loss of $0.20 per share when it actually produced a loss of $0.46, delivering a surprise of -130%. Over the last four quarters, the company has surpassed con ...

Wall Street expects a year-over-year increase in earnings on lower revenues when Stem, Inc. (STEM) reports results for the quarter ended June 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, if they miss, the stock may move ...