Stem(US:STEM)2025-04-29 20:32Revenue Performance - Revenue for Q1 2025 increased 27% year-over-year to $32.5 million, compared to $25.5 million in Q1 2024[7] - Total revenue for the three months ended March 31, 2025, was $32,512 million, a 27.7% increase from $25,469 million in the same period of 2024[43] - Hardware revenue increased to $14,791 million, up 39.0% from $10,629 million year-over-year[43] Profitability Metrics - GAAP gross profit was $10.5 million with a gross margin of 32%, up from a loss of $(24.2) million and a margin of (95)% in Q1 2024[8] - Non-GAAP gross profit reached $14.8 million, representing a gross margin of 46%, compared to $13.8 million and 24% in Q1 2024[8] - Gross profit for the quarter was $10,538 million, compared to a gross loss of $24,191 million in the prior year[43] - Net loss narrowed to $25.0 million from $72.3 million in Q1 2024, reflecting improved gross profit and lower operating costs[18] - Net loss for the quarter was $25,000 million, significantly improved from a net loss of $72,307 million in the same quarter of 2024[43] - Adjusted EBITDA for the three months ended March 31, 2025, was $(4,627) million, an improvement from $(12,239) million in the same period of 2024[48] Cash Flow and Liquidity - Operating cash flow was positive at $8.5 million, compared to $(0.6) million in Q1 2024[7] - Cash, cash equivalents, and restricted cash at the end of the period totaled $60,370 million, down from $113,904 million at the end of the same period in 2024[46] - Operating cash flow for the quarter was $8,536 million, a significant turnaround from $(621) million in the same quarter of 2024[46] Cost Management - The company implemented targeted workforce reductions expected to generate approximately $30 million in annual cash cost savings[3] - Total operating expenses decreased to $31,686 million from $43,822 million year-over-year, reflecting a reduction in sales and marketing, R&D, and administrative costs[43] Guidance and Future Outlook - Full year 2025 guidance reaffirmed with revenue expected between $125 million and $175 million[23] - The conference call to discuss earnings and business outlook is scheduled for April 29, 2025[33] Asset and Liability Overview - As of March 31, 2025, total current assets decreased to $110.58 million from $136.62 million as of December 31, 2024[41] - Total assets decreased to $405.08 million as of March 31, 2025, down from $437.36 million as of December 31, 2024[41] - Total liabilities amounted to $822.01 million as of March 31, 2025, compared to $835.19 million as of December 31, 2024[41] - The accumulated deficit increased to $1.65 billion as of March 31, 2025, from $1.63 billion as of December 31, 2024[41] Financial Reporting and Adjustments - The company defines adjusted EBITDA as net loss before depreciation and amortization, excluding stock-based compensation and other income and expense items[29] - Non-GAAP gross profit excludes amortization of capitalized software and other specific costs, providing a clearer view of operational performance[30] - The company emphasizes the importance of non-GAAP financial measures for internal decision-making and performance evaluation[28] Other Financial Events - In the three months ended March 31, 2024, the company incurred costs of $1.0 million above initially agreed prices due to production delays, resulting in liquidated damages of $4.8 million during the year ended December 31, 2023[31] - The company recorded a bad debt expense of $104.1 million during the year ended December 31, 2024, related to impairment of accounts receivable[32] - The company reported a weighted-average share count of 163,889,801 for the calculation of net loss per share, compared to 158,180,137 in the prior year[43]