12/27/2023 0 Comments Stem stock nyse![]() ![]() And doing so at a very high rate of growth. In other words, this would mean that Stem's revenue growth rates are not fizzling out. This would mean that Stem expects around $270 million in revenues in Q4.Īnd if that revenue would materialize in Q4, this would imply that its revenues will increase by approximately 75% y/y. What we see above is that Q4 is expected to see around 45% of its total revenues for this year. However, I urge readers to consider the following: Typically, this would be a pretty terrific growth rate, but once you consider that 2022 saw its revenues increase by more than 180% y/y, this guidance leaves a lot to be desired. That being said, Stem has once again reaffirmed its guidance, and states that the full-year revenues should grow by around 67% y/y relative to 2022. Stem's revenue growth rates for Q1 2023 were up 64% y/y, which is a significant deceleration from the exit rate in Q4 2022. Stem's prospects are very nuanced, with both good and bad elements. Simply put, Stem's prospects could be set to improve. We expect bookings growth to continue through the year as customers are increasingly standardizing on the Athena platform. We reported another new record for contracted backlog, which was up 120% year-over-year, driven by strong first quarter 2023 bookings. Consider what Stem's CEO John Carrington said on the Q1 earnings call: On the other hand, there's a lot to like about Stem's recent progress. ![]() And that is something that shorts have been clinging to. At its core, Stem is a hardware-selling business, with razor-thin margins. Stem designs energy storage systems, which aim to reduce energy costs. They provide digitally connected systems and services that help manage energy storage, using AI. Stem specializes in energy storage solutions. However, my contention is that shorts are not sufficiently weighing up the risk-reward of staying short right now.īecause, as you'll soon see, there's actually a business turning around here and striving to reach EBITDA profitability starting in H2 2023. There are substantial reasons to be short this stock, particularly given its unimpressive GAAP gross margin profile. It's not that shorts are totally wrong on Stem. Moreover, it appears that this shorted stock has perhaps become too crowded. In fact, the stock is heavily shorted, with approximately 23% of its shares sold short. The stock is down more than 60% from the highs set this year, and down even more from its all-time highs. ( NYSE: STEM) is a clean energy solutions provider. The company operates in areas within the energy storage landscape: Behind-the-Meter and Front-of-the-Meter.Stem, Inc. ![]() Additionally, the Company’s energy storage solutions support renewable energy generation by alleviating grid intermittency issues. The company delivers its battery hardware and software-enabled services through its Athena platform to its customers. The company provides an ongoing software platform and professional services to operate integrated energy storage and solar systems, through its Athena artificial intelligence (AI) platform (Athena), and solar asset performance monitoring and control, through Athena’s PowerTrack application. The firm provides customers with an energy storage system, sourced from global battery original equipment manufacturers (OEMs), that the Company delivers through its partners, including developers, distributors, and engineering, procurement, and construction firms. The company is headquartered in San Francisco, California and currently employs 660 full-time employees. engages in the provision of an energy storage system, hardware, ongoing software platform and professional services, and solar asset performance monitoring and control. ![]()
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