STEM Earnings Prediction
The chart below shows how STEM performed 10 days before and after its earnings report, based on data from the past quarters. Typically, STEM sees a +6.25% change in stock price 10 days leading up to the earnings, and a -12.22% change 10 days following the report. On the earnings day itself, the stock moves by +1.12%. This data can give you a slight idea of what to expect for the next quarter's release.
STEM Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
29.29M
-78.10%
-13.85%
Gross Margin
22.18%
248.36%
-20.42%
Operating Margin
-136.96%
173.48%
43.73%
Net Margin
-506.30%
778.54%
-70.44%
EPS
-0.91
-85.71%
-74.65%
No Data Available
STEM Earnings Analysis
Stem, Inc. Corporation (STEM.N) Earnings Conference Call
Positive
Gross Margin Performance: Strong GAAP gross margin of 21% and record non-GAAP gross margin of 46%, reflecting a larger contribution from high margin software and services revenue.
ARR Increase in Q3: In the third quarter, we increased ARR by over $3 million split roughly evenly between solar and storage assets.
Edge Devices and Software Growth: We delivered a record amount of edge devices from our facility in Longmont, Colorado and reported strong growth in software revenues 10% quarter-over-quarter and 19% year-over-year.
Record Services Revenue Growth: We reported record services revenue of $22 million this quarter, up 33% year-over-year, which included a little over $5 million of DevCo revenue.
Predictable Revenue Growth: We expect our refined strategy to accelerate the growth of more predictable revenue from software and services.
Negative
Revenue Decline Analysis: Revenues were $29 million, a sharp decline year-over-year, driven by lower hardware resale revenue.
Gross Margin Performance: We reported a strong GAAP gross margin of 21% and a record non-GAAP gross margin of 46%, reflecting a much larger contribution from high margin software and services revenue.
Receivables Value Reduction: We reduced the value of receivables associated with those guarantees to zero on the balance sheet.
Receivables Impairment Adjustment: We impaired the remaining receivables by a little over $100 million and also adjusted revenue by $5.6 million.
Bookings Forecast Adjustment: We have lowered our bookings forecast to $100 million to $500 million.
STEM FAQs
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STEM Earning Call Sentiment
Stem, Inc. (STEM) Q3 2024 Earnings Call Transcript
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STEM.N
-14.11%Positive
The earnings call reveals several concerning factors: lowered revenue guidance, project timeline challenges, and a sharp decline in hardware resale revenue. Despite some positive customer feedback on strategic shifts, the lack of a shareholder return plan and ongoing CEO search add uncertainty. The Q&A highlights unclear management responses about future ARR, further contributing to negative sentiment. While there are some positives in software and services revenue growth, the overall outlook, including reduced bookings and revenue, suggests a negative stock price movement.
