Stem(US:STEM)2022-08-04 22:11Financial Performance - Total revenue increased from $19.3 million for Q2 2021 to $66.9 million for Q2 2022, representing a growth of 246%[162] - Net losses for Q2 2022 were $32.0 million, compared to $100.2 million in Q2 2021, showing a reduction in losses by 68%[162] - Revenue for the three months ended June 30, 2022, was $66.9 million, a significant increase from $19.3 million in the same period of 2021, representing a growth of 247%[180] - Net loss attributable to Stem for the three months ended June 30, 2022, was $(32.0) million, an improvement from $(100.2) million in the same period of 2021[180] - For the six months ended June 30, 2022, total revenue increased by $73.3 million, or 211%, compared to the same period in 2021, with hardware revenue contributing $60.8 million to this increase[215] - Net loss for the three months ended June 30, 2022, was $32.0 million, a reduction of $68.2 million, or 68%, compared to a net loss of $100.2 million in the same period in 2021[203] Acquisitions - The acquisition of AlsoEnergy was completed for a total consideration of $652.1 million, including $543.1 million in cash and $108.9 million in stock[164] - The company completed the acquisition of 100% of AlsoEnergy for an aggregate purchase price of $652.1 million, including $543.1 million in cash and $108.9 million in common stock[228] Expenses and Costs - The company expects to continue increasing sales and marketing, R&D, and regulatory expenses as it scales operations[163] - Total operating expenses for the six months ended June 30, 2022, increased by $42.7 million, or 127%, primarily due to significant increases in sales and marketing, research and development, and general and administrative expenses[214] - Sales and marketing expenses for the three months ended June 30, 2022, increased by $9.0 million, or 231%, primarily due to higher personnel costs and amortization expenses related to the acquisition of AlsoEnergy[206] - Research and development expenses for the three months ended June 30, 2022, increased by $4.1 million, or 86%, mainly due to higher personnel costs associated with the addition of AlsoEnergy employees[207] - General and administrative expenses for the three months ended June 30, 2022, increased by $0.7 million, or 5%, driven by higher personnel costs and stock-based compensation, partially offset by a decrease in professional fees[208] - Total cost of revenue for the three months ended June 30, 2022, increased by $39.7 million, or 204%, primarily due to a $35.4 million increase in hardware revenue costs and a $4.3 million increase in service revenue costs[205] Financial Position - The company had an accumulated deficit of $562.5 million as of June 30, 2022[162] - As of June 30, 2022, the total financing obligation was $81.9 million, with $14.8 million classified as a current liability[234] - The company’s liquidity is primarily sourced from cash generated through financing activities, totaling approximately $550.3 million net of fees and expenses as of June 30, 2022[228] - The company may need to obtain additional equity or debt financing to support ongoing capital expenditures and operations, which could impact its ability to compete successfully[230] Market and Industry Trends - The deployment of renewable energy sources is expected to increase, addressing grid instability with energy storage solutions[167] - The market for energy storage is evolving, with a significant decline in lithium-ion battery costs over the past decade[165] Risks and Challenges - The company faces risks from supply chain constraints, particularly in securing energy storage systems and components[170] - The ongoing COVID-19 pandemic has caused significant disruptions, affecting supply chains and economic conditions[171] Other Financial Metrics - The company utilizes non-GAAP financial measures such as Adjusted EBITDA to evaluate performance and liquidity[175] - Adjusted EBITDA for the three months ended June 30, 2022, was $(11.1) million, compared to $(8.3) million in the same period of 2021[178] - Non-GAAP gross margin for the three months ended June 30, 2022, was $11.3 million, or 17%, compared to $1.5 million, or 8%, in the same period of 2021[180] - Bookings for the three months ended June 30, 2022, totaled $225.7 million, up from $45.1 million in the same period of 2021[180] - Contracted backlog as of June 30, 2022, was $726.6 million, compared to $249.7 million in the same period of 2021[180] - The 12-month pipeline as of June 30, 2022, was $5.6 billion, significantly higher than $1.7 billion in the same period of 2021[180] - Contracted storage AUM (in GWh) for the three months ended June 30, 2022, was 2.1 GWh, compared to 1.2 GWh in the same period of 2021[180] - The company recorded a tax benefit of $15.2 million for the six months ended June 30, 2022, compared to no tax provision in the same period in 2021[213] - Other income increased by $1.2 million, or 572%, for the six months ended June 30, 2022, compared to the same period in 2021, primarily due to a $1.0 million increase in interest income from short-term investments[224] - The company recorded a tax benefit of $15.2 million during the six months ended June 30, 2022, due to the partial release of the deferred tax asset valuation allowance related to the acquisition of AlsoEnergy[225]