Quarterly revenue 29% above high end of
guidance range
Reaffirm full-year 2022 guidance
AlsoEnergy commercial synergies on track for
2022 bookings
Expect minimal impact from AD/CVD inquiry in
solar industry
First Quarter 2022 Financial and Operating Highlights
Financial Highlights
- Revenue of $41.1 million, up from $15.4 million (+166%) in Q1
2021
- GAAP Gross Margin of 9% versus (1)% in Q1 2021
- Non-GAAP Gross Margin of 16% versus 13% in Q1 2021
- Net Loss of $(22.5) million versus $(82.6) million in Q1
2021
- Adjusted EBITDA of $(12.8) million versus $(3.2) million in Q1
2021
- Ended Q1 2022 with $352 million in cash, cash equivalents, and
short-term investments
Operating Highlights
- 12-month Pipeline of $5.2 billion, up from $4.0 billion (+30%)
at the end of Q4 2021
- Bookings of $151 million, up from $51 million (+196%) in Q1
2021
- Record contracted backlog of $565 million, up from $221 million
(+156%) at the end of Q1 2021
- Record contracted storage assets under management (AUM) of 1.8
gigawatt hours (GWh) up from 1.6 GWh (+13%) at the end of Q4
2021
- Solar monitoring AUM of 32.4 gigawatts (GW)
- Contracted Annual Recurring Revenue (CARR) of $51.5 million, up
from $24.1 million (114%) at the end of Q4 2021
Stem (the "Company") (NYSE: STEM), a global leader in artificial
intelligence (AI)-driven energy software and services, announced
today its financial results for the three months ended March 31,
2022. Reported results in this press release reflect AlsoEnergy’s
operations for the period from February 1, 2022 through March 31,
2022.
John Carrington, Chief Executive Officer of Stem, commented, “We
are pleased to report a strong first quarter, with robust growth in
revenue, backlog, pipeline, AUM, and CARR, all driven by our
market-leading software platforms. Revenue for the quarter was
above the high end of our guidance range, and we reaffirm our
full-year 2022 guidance for all of our key financial and
operational metrics.
Our contracted backlog grew 156% as compared to the period ended
March 31, 2021, driven by $151 million in bookings, which nearly
tripled versus first quarter 2021. That is the second-highest
bookings performance in Company history after the fourth quarter
2021, underscoring our accelerating momentum.
We are also pleased with the increase in CARR to $51.5 million,
reflecting our long-term focus on high-margin software and services
revenue. As our AUM expands in both storage and solar monitoring,
our AI-driven software can deliver improved economic optimization
and asset management solutions to our renewable energy customers.
We believe Stem’s differentiated software solutions, coupled with
our customer-focused employees and strong balance sheet, will drive
multi-year growth in high margin recurring software and services
revenues, as evidenced by our 16% non-GAAP gross margin this
quarter. The integration of AlsoEnergy is proceeding on track as we
combine the commercial and technical strengths into one company
focused on providing differentiated solutions for our customers. As
we continue to drive additional customer value, we have been able
to implement price increases for our solar asset performance
software in the quarter, reflecting our unique capabilities in the
market.
A recently announced U.S. Department of Commerce inquiry into
anti-dumping and countervailing duties on solar modules has caused
uncertainty for solar developers. Our diversity of customers and
markets, including growing momentum in standalone storage and BTM
solar projects, provides greater certainty into our near-term
revenues. As of late April 2022, we estimate that recurring revenue
and contracted standalone storage projects represent more than 85%
of our remaining projected 2022 total revenue at the midpoint of
guidance. Moreover, we believe the majority of our solar + storage
customers have procured sufficient panel supply to execute their
projects. As a result, we expect minimal impact from the inquiry on
our 2022 revenue.
Supply chain constraints, permitting and interconnection delays,
and potential tariffs have caused recent headwinds in the industry,
but we continue to manage these risks and believe we are
well-positioned to navigate these issues.”
Financial Results and Key
Metrics
(in $ millions unless otherwise
noted):
Three Months Ended
March 31,
2022
2021
Financial results
Revenue
$41.1
$15.4
GAAP Gross Margin
3.6
(0.1)
GAAP Gross Margin (%)
9%
(1)%
Non-GAAP Gross Margin*
6.4
2.0
Non-GAAP Gross Margin (%)*
16%
13%
Net Loss
(22.5)
(82.6)
Adjusted EBITDA*
(12.8)
(3.2)
Key Operating metrics
12-Month Pipeline ($ billions)**
$5.2
$1.4
Bookings
150.8
50.8
Contracted Backlog**
565.1
221.0
Contracted storage AUM (GWh)**
1.8
1.1
Solar Monitoring AUM (GW)**
32.4
--
CARR**
51.5
--
*Non-GAAP financial measures. See the
section below titled “Use of Non-GAAP Financial Measures” for
details and the section below titled “Reconciliations of Non-GAAP
Financial Measures” for reconciliations.
** At period end.
First Quarter 2022 Financial and Operating Results
Financial Results
First quarter 2022 revenue increased 166% to $41.1 million,
versus $15.4 million in the first quarter of 2021. Higher hardware
revenue from Front-of-the-Meter (FTM) and Behind-the-Meter (BTM)
partnership agreements drove a majority of the increase realized
during the quarter, in addition to $9.6 million of revenue from the
partial-quarter inclusion of AlsoEnergy.
First quarter 2022 GAAP Gross Margin was $3.6 million, or 9%,
versus $(0.1) million, or (1)% in the first quarter of 2021. The
year-over-year increase in GAAP Gross Margin resulted primarily
from higher sales and additional higher-margin services revenues,
including AlsoEnergy.
Beginning in first quarter 2022, management no longer
reclassifies certain costs of goods sold to operating expenses,
including communication and cloud service expenditures, in its
calculation of Non-GAAP Gross Margin. First quarter 2021 Non-GAAP
Gross Margin has been recalculated consistent with this treatment.
The non-GAAP reconciliation table below includes important updates
to these calculations for comparability.
First quarter 2022 Non-GAAP Gross Margin was $6.4 million, or
16% versus $2.0 million, or 13% in the first quarter of 2021. The
year-over-year increase in Non-GAAP Gross Margin resulted from
higher revenues. In percentage terms, the year-over-year increase
in Non-GAAP Gross Margin resulted from a higher mix of software
services, inclusive of AlsoEnergy, partially offset by lower
hardware margins.
First quarter 2022 Net Loss was $(22.5) million versus first
quarter 2021 Net Loss of $(82.6) million. The improvement was
primarily driven by non-cash revaluation of warrants tied to
changes in the value of the underlying common stock reported in the
first quarter 2021. In June and September 2021 Stem redeemed all
outstanding private and public warrants, respectively, resulting in
a more streamlined capital structure and less quarter-to-quarter
variability in the Company’s Net Income (Loss).
First quarter 2022 Adjusted EBITDA was $(12.8) million compared
to $(3.2) million in the first quarter of 2021. Lower Adjusted
EBITDA results were primarily driven by higher operating expenses
resulting from increased personnel costs, continued investment in
our growth initiatives, and costs associated with public reporting
requirements.
The Company ended the first quarter of 2022 with $352 million in
cash, cash equivalents, and short-term investments, consisting of
$175 million in cash and cash equivalents and $177 million in
short-term investments. The sequential decrease from $921 million
in cash, cash equivalents, and short-term investments at the end of
the fourth quarter 2021 was primarily the result of closing the
AlsoEnergy acquisition, which included cash consideration of $533
million in cash (net of cash acquired), and strategic purchases of
energy storage systems.
Operating Results
The Company’s 12-month forward pipeline was $5.2 billion at the
end of the first quarter 2022 compared to $4.0 billion at the end
of the fourth quarter 2021, representing 30% sequential growth. The
increase in the 12-month forward pipeline was driven by increased
FTM project opportunities, including significant expansions into
new markets and continued growth in Stem’s partner channels.
Contracted Backlog was $565 million at the end of the first
quarter of 2022 compared to $449 million as of the end of the
fourth quarter 2021, representing a 26% sequential increase. The
increase in Contracted Backlog resulted from bookings in the
quarter of $151 million and contribution from the backlog
associated with AlsoEnergy, partially offset by revenue
recognition, contract cancellations, and amendments during the
quarter. Bookings of $151 million in the first quarter 2022 grew
196% year-over-year from $51 million in first quarter 2021.
Contracted storage AUM increased 64% year-over-year and 12%
sequentially to 1.8 GWh, driven by new contracts. Solar monitoring
AUM ended the first quarter of 2022 at 32.4 GW.
CARR increased to $51.5 million as of the end of the first
quarter of 2022, up from $24.1 million as of the end of the fourth
quarter 2021, a 114% sequential increase, largely driven by the
acquisition of AlsoEnergy.
The following table provides a summary of backlog at the end of
the first quarter of 2022, compared to the fourth quarter of 2021
backlog ($ millions):
Period ended 4Q21
$449
Add: AlsoEnergy 2-1-22 Backlog
15
Bookings
151
Less: Hardware revenue
(31)
Software/services
(5)
Amendments/other
(14)
Period ended 1Q22
$565
The Company expects to continue to diversify its supply chain,
adopt alternative technologies, and deploy its balance sheet to
meet the expected significant growth in customer demand. COVID-19,
potential import tariffs, and general macroeconomic conditions,
including the ongoing conflict between Russia and Ukraine, continue
to impact and cause uncertainty in the supply chain and project
timelines, and the Company has been affected by inflation in the
costs of equipment. The Company is actively working to mitigate
these impacts on its financial and operational results, although
there is no guarantee that we will be successful.
Outlook
The Company reaffirms FY2022 financial and operational guidance
as follows ($ millions, unless otherwise noted):
Revenue
$350 - $425
Non-GAAP Gross Margin (%)*
15% - 20%
Adjusted EBITDA*
$(60) - $(20)
Bookings
$650 - $750
CARR (year-end)
$60 - $80
*See the section below titled
“Reconciliations of Non-GAAP Financial Measures” for information
regarding why we are unable to reconcile Non-GAAP Gross Margin and
Adjusted EBITDA) to their most comparable financial measures
calculated in accordance with GAAP.
The Company reaffirms 2022 guidance indicating projected
quarterly performance against the annual targets as follows:
Metric
Q1E
Q1A*
Q2E
Q3E
Q4E
Revenue
7.5%
10.6%
15.0%
22.5%
55.0%
Bookings
20%
22%
20%
25%
35%
*Actuals in Q1A are calculated based on
the midpoint of guidance.
Stem’s 2022 guidance includes the operations of AlsoEnergy after
February 1, 2022.
Stem will hold a conference call to discuss this earnings press
release and business outlook on Thursday, May 5, 2022 beginning at
5:00 p.m. Eastern Time. The conference call and accompanying slides
may be accessed via a live webcast on a listen-only basis on the
Events & Presentations page of the Investor Relations section
of the Company’s website at
https://investors.stem.com/events-and-presentations. The call can
also be accessed live over the telephone by dialing (844) 200-6205,
or for international callers, (833) 950-0062 and using access code
015694. A replay of the conference call will be available shortly
after the call and can be accessed by dialing (866) 813-9403 or for
international callers by dialing +44 204 525 0658. The passcode for
the replay is 676295. An archive of the webcast will be available
on the Company’s website at https://investors.stem.com/overview for
12 months after the call.
Use of Non-GAAP Financial Measures
In addition to financial results determined in accordance with
U.S. generally accepted accounting principles (“GAAP”), this
earnings release contains the following non-GAAP financial
measures: Adjusted EBITDA and non-GAAP gross margin. These non-GAAP
financial measures should be considered in addition to, not as a
substitute for, or superior to, other measures of financial
performance prepared in accordance with GAAP. For reconciliation of
Adjusted EBITDA and non-GAAP gross margin to their most comparable
GAAP measures, see the section below entitled, “Reconciliations of
non-GAAP Financial Measures.”
We use these non-GAAP financial measures for financial and
operational decision-making and to evaluate our operating
performance and prospects, develop internal budgets and financial
goals, and to facilitate period-to-period comparisons. Our
management believes that these non-GAAP financial measures provide
meaningful supplemental information regarding our performance and
liquidity by excluding certain expenses and expenditures that may
not be indicative of our operating performance, such as stock-based
compensation and other non-cash charges, as well as discrete cash
charges that are infrequent in nature. We believe that both
management and investors benefit from referring to these non-GAAP
financial measures in assessing our performance and when planning,
forecasting, and analyzing future periods. These non-GAAP financial
measures also facilitate management’s internal comparisons to our
historical performance and liquidity as well as comparisons to our
competitors’ operating results, to the extent that competitors
define these metrics in the same manner that we do. We believe
these non-GAAP financial measures are useful to investors both
because they (1) allow for greater transparency with respect to key
metrics used by management in its financial and operational
decision-making and (2) are used by our institutional investors and
the analyst community to help them analyze the health of our
business.
Definitions of Non-GAAP Financial Measures
We define Adjusted EBITDA as net loss before depreciation and
amortization, including amortization of internally developed
software, net interest expense, further adjusted to exclude
stock-based compensation and other income and expense items,
including transaction and acquisition-related charges, the change
in fair value of warrants and embedded derivatives, and income tax
provision or benefit. The expenses and other items that we exclude
in our calculation of Adjusted EBITDA may differ from the expenses
and other items, if any, that other companies may exclude when
calculating Adjusted EBITDA.
We define non-GAAP gross margin as gross margin excluding
amortization of capitalized software and impairments related to
decommissioning of end-of-life systems. See the definitions of
non-GAAP metrics at the end of the press release.
About Stem
Stem (NYSE: STEM) provides solutions that address the challenges
of today’s dynamic energy market. By combining advanced energy
storage solutions with Athena®, a world-class AI-powered analytics
platform, Stem enables customers and partners to optimize energy
use by automatically switching between battery power, onsite
generation, and grid power. Stem’s solutions help enterprise
customers benefit from a clean, adaptive energy infrastructure and
achieve a wide variety of goals, including expense reduction,
resilience, sustainability, environmental and corporate
responsibility, and innovation. Stem also offers full support for
solar partners interested in adding storage to standalone,
community or commercial solar projects – both behind and in front
of the meter. With the acquisition of AlsoEnergy, Stem is a leader
in the solar asset management space, bringing project developers,
asset owners, and commercial customers an integrated solution for
solar and energy storage management and optimization. For more
information, visit www.stem.com.
Forward-Looking Statements
This earnings press release, as well as other statements we
make, contain “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,” “goal,” “target,” “think,” “should,”
“could,” “would,” “will,” “hope” “see,” “likely,” and other similar
words. Forward-looking statements address matters that are, to
varying degrees, uncertain, such as statements about our financial
and performance targets and other forecasts or expectations
regarding, or dependent on, our business outlook; the expected
synergies of the combined Stem/AlsoEnergy company; our ability to
successfully integrate the combined companies; our joint ventures,
partnerships and other alliances; reduction of greenhouse gas
(“GHG”) emissions; the integration and optimization of energy
resources; our business strategies and those of our customers; the
global commitment to decarbonization; our ability to retain or
upgrade current customers, further penetrate existing markets or
expand into new markets; our ability to manage our supply chains
and distribution channels and the effects of natural disasters and
other events beyond our control, such as the COVID-19 pandemic and
variants thereof, and government and business responses thereto;
the impact of the ongoing conflict in Ukraine; our ability to meet
contracted customer demand; and future results of operations,
including revenue and Adjusted EBITDA. Such forward-looking
statements are subject to risks, uncertainties, and other factors
that could cause actual results to differ materially from those
expressed or implied by such forward-looking statements, including
but not limited to our ability to achieve our financial and
performance targets and other forecasts and expectations; our
ability to help reduce GHG emissions; our ability to integrate and
optimize energy resources; our ability to recognize the anticipated
benefits of our recent acquisition of AlsoEnergy; challenges,
disruptions and costs of integrating the combined company and
achieving anticipated synergies, or such synergies taking longer to
realize than expected; risks that the integration disrupts current
plans and operations that may harm our business; uncertainty as to
the effects of the transaction on our financial performance; our
ability to grow and manage growth profitably; our ability to retain
or upgrade current customers, further penetrate existing markets or
expand into new markets; our ability to attract and retain
qualified employees and key personnel; our ability to comply with,
and the effect on their businesses of, evolving legal standards and
regulations, particularly concerning data protection and consumer
privacy and evolving labor standards; risks relating to the
development and performance of our energy storage systems and
software-enabled services; the risk that the global commitment to
decarbonization may not materialize as we predict, or even if it
does, that we might not be able to benefit therefrom; our inability
to secure sufficient inventory from our suppliers to meet customer
demand, and provide us with contracted quantities of equipment;
general economic, geopolitical and business conditions in key
regions of the world; the ongoing conflict in Ukraine; supply chain
interruptions and manufacturing or delivery delays; disruptions in
sales, production, service or other business activities; the risk
that our business, financial condition and results of operations
may be adversely affected by other political, economic, business
and competitive factors; and other risks and uncertainties
discussed in this release and in our most recent Forms 10-K, 10-Q
and 8-K filed with or furnished to the SEC. If one or more of these
or other risks or uncertainties materialize (or the consequences of
any such development changes), or should our underlying assumptions
prove incorrect, actual outcomes may vary materially from those
reflected in our forward-looking statements. Forward-looking and
other statements in this release regarding our environmental,
social, and other sustainability plans and goals are not an
indication that these statements are necessarily material to
investors or required to be disclosed in our filings with the SEC.
In addition, historical, current, and forward-looking
environmental, social, and sustainability-related statements may be
based on standards for measuring progress that are still
developing, internal controls and processes that continue to
evolve, and assumptions that are subject to change in the future.
Statements in this earnings press release are made as of the date
of this release, and Stem disclaims any intention or obligation to
update publicly or revise such statements, whether as a result of
new information, future events, or otherwise.
Source: Stem, Inc.
STEM, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(UNAUDITED)
(in thousands, except share and
per share amounts)
March 31, 2022
December 31, 2021
ASSETS
Current assets:
Cash and cash equivalents
$
174,537
$
747,780
Short-term investments
177,273
173,008
Accounts receivable, net
74,123
61,701
Inventory, net
72,985
22,720
Other current assets (includes $207 and
$213 due from related parties as of March 31, 2022 and December 31,
2021, respectively)
28,252
18,641
Total current assets
527,170
1,023,850
Energy storage systems, net
102,320
106,114
Contract origination costs, net
9,620
8,630
Goodwill
547,700
1,741
Intangible assets, net
165,840
13,966
Operating leases right-of-use assets
13,785
12,998
Other noncurrent assets
51,380
24,531
Total assets
$
1,417,815
$
1,191,830
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable
$
99,307
$
28,273
Accrued liabilities
22,785
25,993
Accrued payroll
8,422
7,453
Financing obligation, current portion
14,177
15,277
Deferred revenue, current portion
40,722
9,158
Other current liabilities (includes $179
and $306 due to related parties as of March 31, 2022 and December
31, 2021, respectively)
2,622
1,813
Total current liabilities
188,035
87,967
Deferred revenue, noncurrent
64,051
28,285
Asset retirement obligation
4,168
4,135
Notes payable, noncurrent
1,719
1,687
Convertible notes, noncurrent
446,418
316,542
Financing obligation, noncurrent
70,395
73,204
Lease liability, noncurrent
12,526
12,183
Other liabilities
367
—
Total liabilities
787,679
524,003
Commitments and contingencies (Note
16)
Stockholders’ equity:
Preferred stock, $0.0001 par value;
1,000,000 shares authorized as of March 31, 2022 and December 31,
2021; 0 shares issued and outstanding as of March 31, 2022 and
December 31, 2021
—
—
Common stock, $0.0001 par value;
500,000,000 shares authorized as of March 31, 2022 and December 31,
2021; 153,717,797 and 144,671,624 issued and outstanding as of
March 31, 2022 and December 31, 2021, respectively
15
14
Additional paid-in capital
1,161,109
1,176,845
Accumulated other comprehensive income
(loss)
(619
)
20
Accumulated deficit
(530,510
)
(509,052
)
Total Stem's stockholders' equity
629,995
667,827
Non-controlling interests
141
—
Total stockholders’ equity
630,136
667,827
Total liabilities and stockholders’
equity
$
1,417,815
$
1,191,830
STEM, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(UNAUDITED)
(in thousands, except share and
per share amounts)
Three Months Ended
March 31,
2022
2021
Revenue
Services revenue
$
9,965
$
4,881
Hardware revenue
31,123
10,539
Total revenue
41,088
15,420
Cost of revenue
Cost of service revenue
8,633
6,905
Cost of hardware revenue
28,811
8,632
Total cost of revenue
37,444
15,537
Gross margin
3,644
(117
)
Operating expenses:
Sales and marketing
9,142
2,667
Research and development
8,943
4,407
General and administrative
20,512
2,692
Total operating expenses
38,597
9,766
Loss from operations
(34,953
)
(9,883
)
Other income (expense), net:
Interest expense
(3,218
)
(6,233
)
Change in fair value of warrants and
embedded derivative
—
(66,397
)
Other income (expenses), net
475
(40
)
Total other expense, net
(2,743
)
(72,670
)
Loss before income taxes
(37,696
)
(82,553
)
Income tax benefit
15,213
—
Net loss
$
(22,483
)
$
(82,553
)
Net loss per share attributable to common
stockholders, basic and diluted
$
(0.15
)
$
(2.04
)
Weighted-average shares used in computing
net loss per share, basic and diluted
150,491,041
40,425,009
STEM, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(UNAUDITED)
(in thousands)
Three Months Ended March
31,
2022
2021
OPERATING ACTIVITIES
Net loss
$
(22,483
)
$
(82,553
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization expense
8,725
5,079
Non-cash interest expense, including
interest expenses associated with debt issuance costs
456
3,902
Stock-based compensation
6,265
760
Change in fair value of warrant liability
and embedded derivative
—
66,397
Noncash lease expense
546
160
Accretion expense
60
50
Impairment of energy storage systems
171
613
Net (accretion of discount) amortization
of premium on investments
293
—
Income tax benefit from release of
valuation allowance
(15,100
)
—
Other
(17
)
—
Changes in operating assets and
liabilities:
Accounts receivable
(3,352
)
(955
)
Inventory
(46,564
)
(1,466
)
Other assets
(32,284
)
(4,690
)
Contract origination costs
(1,670
)
(779
)
Accounts payable and accrued expenses
61,755
8,640
Deferred revenue
17,705
2,992
Lease liabilities
(54
)
(176
)
Other liabilities
(457
)
199
Net cash used in operating activities
(26,005
)
(1,827
)
INVESTING ACTIVITIES
Acquisition of AlsoEnergy, net of cash
acquired
(532,839
)
—
Purchase of available-for-sale
investments
(41,437
)
—
Sales/maturities of available-for-sale
investments
36,271
—
Purchase of energy storage systems
(108
)
(1,525
)
Capital expenditures on
internally-developed software
(3,537
)
(1,238
)
Purchase of property and equipment
(1,278
)
—
Net cash used in investing activities
(542,928
)
(2,763
)
FINANCING ACTIVITIES
Proceeds from exercise of stock options
and warrants
347
2,894
Payments for taxes related to net share
settlement of stock options
(773
)
—
Proceeds from financing obligations
311
2,732
Repayment of financing obligations
(4,178
)
(3,369
)
Proceeds from issuance of convertible
notes, net of issuance costs of $0 and $8 for the three months
ended March 31, 2022 and 2021, respectively
—
1,118
Proceeds from issuance of notes payable,
net of issuance costs of $0 and $101 for the three months ended
March 31, 2022 and 2021, respectively
6
3,879
Repayment of notes payable
—
(161
)
Net cash provided by (used in) financing
activities
(4,287
)
7,093
Effect of exchange rate changes on cash
and cash equivalents
(23
)
428
Net increase (decrease) in cash and cash
equivalents
(573,243
)
2,931
Cash and cash equivalents, beginning of
period
747,780
6,942
Cash and cash equivalents, end of
period
$
174,537
$
9,873
STEM, INC
RECONCILIATIONS OF NON-GAAP
FINANCIAL MEASURES
(UNAUDITED)
The following table provides a reconciliation of Adjusted EBITDA to
net loss:
Three Months Ended March
31,
2022
2021
(in thousands)
Net loss
$
(22,483
)
$
(82,553
)
Adjusted to exclude the following:
Depreciation and amortization
8,896
6,012
Interest expense
3,218
6,233
Stock-based compensation
6,265
760
Change in fair value of warrants and
embedded derivative
—
66,397
Transaction costs in connection with
business combination
6,068
—
Litigation settlement
400
—
Income tax benefits
(15,213
)
—
Adjusted EBITDA
$
(12,849
)
$
(3,151
)
Adjusted EBITDA, as used in connection
with the Company's 2022 guidance, is a non-GAAP financial measure
that excludes or has otherwise been adjusted for items impacting
comparability. The Company is unable to provide a reconciliation of
forecasted Adjusted EBITDA to net loss, its most directly
comparable forward-looking GAAP financial measure, without
unreasonable efforts, because the Company is currently unable to
predict with a reasonable degree of certainty its change in
stock-based compensation expense and other items that may affect
net loss. The unavailable information could have a significant
effect on the Company’s full year 2022 GAAP financial results.
Adjusted EBITDA for the first quarter 2021
now reflects adjustments to depreciation and amortization of
approximately $0.9 million for expenses related to impairments,
decommissioning and forfeited incentives that were not previously
reflected.
The following table provides a reconciliation of non-GAAP gross
margin to GAAP gross margin ($ in millions, except for
percentages):
Three Months Ended March
31,
2022
2021
Revenue
$
41.1
$
15.4
Cost of revenue
(37.4
)
(15.5
)
GAAP Gross Margin
3.6
(0.1
)
GAAP Gross Margin %
9
%
(1
) %
Adjustments to Gross Margin:
Amortization of Capitalized Software &
Developed Technology
2.0
1.2
Impairments
0.8
0.9
Non-GAAP Gross Margin
$
6.4
$
2.0
Non-GAAP Gross Margin %
16
%
13
%
Other Adjustments
0.7
0.9
Labor expense in Cost of Revenue
1.5
--
Pro Forma Gross Margin
8.6
2.9
Pro Forma Gross Margin (%)
21
%
19
%
Historically, management included a
separate “Other Adjustments” caption in the table above as part of
the adjustments to gross margin. Other Adjustments consisted of
certain operating expenses including communication and cloud
service expenditures reclassified to cost of revenue. Other
Adjustments are no longer in the calculation of Non-GAAP Gross
Margin and Non-GAAP Gross Margin %. “Labor Expense in Cost of
Revenue” represents a portion of operating expenses reclassified to
Cost of Sales for AlsoEnergy.
Non-GAAP Gross Margin as used in
connection with the Company's 2022 guidance is a non-GAAP financial
measure that excludes or has otherwise been adjusted for items
impacting comparability. The Company is unable to provide a
reconciliation of forecasted Non-GAAP Gross Margin to GAAP Gross
Margin, its most directly comparable forward-looking GAAP financial
measure, without unreasonable efforts, because the Company is
currently unable to predict with a reasonable degree of certainty
its change in amortization of capitalized software, impairments,
and other items that may affect GAAP Gross Margin. The unavailable
information could have a significant effect on the Company’s full
year 2022 GAAP financial results
Key Definitions:
Item
Definition
12-Month Pipeline
Total value (excluding market
participation revenue) of uncontracted, potential hardware and
software revenue from opportunities that are currently being
pursued by our direct salesforce and channel partners with
developers and independent power producers seeking energy
optimization services and transfer of energy storage systems, and
which have a reasonable likelihood of contract execution within 12
months of the end of the relevant period. Pipeline is based on
project timelines published by such developers and independent
power producers. We cannot guarantee that our pipeline will result
in meaningful revenue or profitability.
Bookings
Total value of executed customer
agreements, as of the end of the relevant period (e.g. quarterly
bookings or annual bookings)
- Customer contracts are typically executed 6-18 months ahead of
installation
- The Bookings amount typically includes:
- Hardware revenue, which is typically recognized at delivery of
system to customer,
- Software revenue, which represents total nominal software
contract value recognized ratably over the contract period,
- Market participation revenue is excluded from the bookings
value
Contracted Backlog
Total value of bookings in dollars, as of
a specific date
- Backlog increases as new contracts are executed (bookings)
- Backlog decreases as integrated storage systems are delivered
and recognized as revenue
Contracted AUM
Total GWh or GW of systems in operation or
under contract
Contracted Annual Recurring
Revenue
(CARR)
Annual run rate for all executed software
services contracts including contracts signed in the period for
systems that are not yet commissioned or operating
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220505005034/en/
Stem Media Contacts Suraya Akbarzad, Stem Cory Ziskind,
ICR press@stem.com
Stem Investor Contacts Ted Durbin, Stem Marc Silverberg,
ICR IR@stem.com (847) 905-4400
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