![]() ![]() If you take a look at Q4 and the year you might get pretty excited in a good way. This is against a PS ratio of 4.35x against the full-year fiscal 2022 revenue of $363 million. This came as management in their earnings call for the quarter guided for fiscal 2023 revenue to come in at around $650 million at the top end to place their forward 1-year price-to-sales multiple (PS) at 2.43x. The company ended the quarter with cash and equivalents at $250 million, around 16% of its current $1.58 billion market cap. However, I think this misses the larger picture around the changes the company is making to its business to embed greater profitability whilst riding the larger and fast-expanding TAM for smart energy storage. This will continue to form a key risk for Stem. This is understandable as underperformance of expectations by a high growth ticker is almost always met with a reset of initial expectations. However, the commons are currently down around 7% in pre-market trading as investors react negatively to the revenue miss. The results were healthy with enhanced operating gearing allowing for a lower net loss even against higher revenue. This was down from a negative adjusted EBITDA of $12 million in the year-ago period. Stem's net loss fell by around $1 million from its year-ago figure to reach $35 million with adjusted EBITDA negative at $10 million. The Green Energy Adoption Has Been Brought Forward The company also completed its first FTM software-only project in ISO New England and stated it intends to chase more of these types of deals in the future. Growth sped up sequentially, growing by 17% over the third quarter from a growth of 9% over the second quarter. Hence, its quarter-on-quarter growth rate will be the key driver of Stem's ability to build future shareholder value. This segment will do most of the heavy lifting for gross profit expansion and eventual positive cash flows. This represented around 10% of total revenue and is set to move higher in the coming earnings.Īthena, Stem's AI-driven battery optimization software platform, lays at the heart of the company's long-term bull case. Contracted annual recurring revenue grew to $65 million, sequential growth of 7% over the third quarter on the back of software and services revenue of $16 million during the fourth quarter. GAAP gross profit margin came in at 8%, up from negative 2% in the year-ago period as higher margin service revenues moved to constitute a larger share of total revenue. The company faced some supply chain issues during the quarter with interconnections and permitting remaining slow just as labour availability issues for its partners also came into the dynamic. Stem now expects the IRA to increase solar plus storage by 46% through 2032, a move that would underlie the growth of the company's Athena software business. Bookings grew by 111% year-over-year to reach $458 million with contracted backlog growing by 116% to reach $969 million from the year-ago figure.Īt the core of this growth is the rapid buildout of solar and storage as the production tax credit provided by the Inflation Reduction Act (IRA) gears up to work its way to disperse and derisk planned investment capital in the green energy source. Stem reported revenue of $156 million for its fiscal 2022 fourth quarter, a growth of 196% over the year-ago period but a miss on consensus estimates for revenue of $166.43 million. Revenue Growth Comes In Strong As Profitability Expands Critically, Stem now stands to be boosted by adjacent multi-decade themes that have turbocharged the green transition and have essentially knocked years off the timeline for the adoption of solar energy. I'm bullish on STEM stock and believe the green transition presents a strong opportunity to invest in the reconstruction of the global energy architecture around an electrified lower carbon and ultimately more sustainable footing. The ramping figures have been set against the backdrop of commons that whilst up 15% year-to-date are down 46% from their 52-week high. The figures for its recently reported fiscal 2022 fourth quarter were strong with revenue surging by nearly 200% over its year-ago comp and gross profit margins recording a positive 1100 basis points move. Stem's ( NYSE: STEM) earnings continue to impress with hyper-growth on the back of the green transition now inherent in the operational momentum of the smart energy storage firm. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |