Leader in AI-Driven Energy Solutions January 2022 1 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, ...

Core Viewpoint - Stem's shares have underperformed significantly, losing 13% in the past month compared to the broader technology sector's 7.1% decline, primarily due to disappointing financial results and lower battery hardware sales [1][2]. Financial Performance - Total revenues for Stem declined sharply by 67% year over year, leading to a GAAP gross profit loss of $2.5 million [2]. - The company's backlog, CARR, and Contracted Storage AUM also saw sequential declines due to OEM hardware repricing and project delays [2]. - For 2025, revenues are projected to be between $125 million and $175 million, with a consensus estimate of $146.40 million, indicating a year-over-year growth of 1.26% [10]. Strategic Initiatives - Stem is focusing on strategic initiatives such as international expansion and a shift towards software solutions, which are expected to position the company for long-term growth in the clean energy sector [3][5]. - The company is intensifying its cost optimization efforts, targeting an additional cost savings of over 20% in 2025, building on a previous 15% reduction [8]. Product and Market Position - PowerTrack software is a key driver of Stem's success, maintaining a strong domestic market share and enabling asset optimization for solar and hybrid portfolios [4]. - The platform has been adopted by 13 of the top 16 commercial and industrial solar asset owners in the U.S., reinforcing its market traction [6]. - Internationally, PowerTrack has been selected by a major Hungarian asset owner to manage a 484 MW solar portfolio, marking significant expansion in the EMEA region [7]. Future Outlook - The strategic shift towards high-margin software and services is expected to yield satisfactory results, with improvements anticipated in adjusted EBITDA and cash flow [11].