Stem Inc has posted record quarterly revenues for Q3 2022, with the AI-driven energy storage company claiming it could begin recording positive EBITDA figures in the second half of next year.
In its latest financial results, published yesterday, the company reported US$99.5 million revenues for the period ending 30 September.
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That was more than 150% higher than the US$39.8 million recorded in the same period of 2021 and 49% more than the US$67 million revenue it recorded in Q2 this year.
Over the first nine months of this year, Stem Inc earned US$207.5 million revenues, already smashing the 2021 full-year total of US$127 million.
The company’s storage assets under management grew from 1.4GWh to 2.4GWh from Q3 2021 to Q3 2022, and its contracted backlog is worth US$817.2 million, up from US$727 million as of the end of Q2 2022.
The acquisition of solar PV monitoring and controls software company AlsoEnergy just before the end of 2021 also contributed to company earnings, putting a 25GW portfolio of solar assets under management into Stem Inc’s hands.
Stem said higher-than-guided revenues were driven largely by higher hardware revenues in both the front-of-the-meter and behind-the-meter segments, while AlsoEnergy contributed US$17 million of revenue.
Revenue guidance reaffirmed
However, the cost of scaling and commercialisation still stands in the way of Stem Inc turning a profit. The company went publicly listed in late 2020 and company leadership said in filings with the SEC that it believed it could achieve profitability during, but not likely before, 2023.
Stem Inc reaffirmed its previously-offered revenue guidance for this year in the range of US$350 million to US$425 million and raised the lower end of expected value of bookings from US$775 million to US$850 million, while the upper end remained unchanged at US$950 million.
Its EBITDA is expected to be between -US$60 million and -US$20 million, with adjusted EBITDA for the quarter -US$13 million versus -US$7 million in the third quarter of 2021. The year-on-year EBITDA decrease was explained by the company as the result of increased personnel costs and investment in growth initiatives.
Meanwhile, non-cash revaluation of warrants tied to changes in the value of underlying stock took the company to a net loss of US$34 million in the quarter, versus net income of US$116 million in the third quarter of 2021. It ended the third quarter with US$294 million in cash, cash equivalents and short-term investments.
Stem Inc emphasised that demand that it was already seeing grow for its products and services, has already gone up further since the recent passing of the Inflation Reduction Act (IRA) climate policies.
With more than US$600 million in customer orders booking in the year-to-date and what the company described as a line of sight to finish this year with a billion-dollar-backlog, Stem Inc claimed it is positioned to be EBITDA positive by the second half of next year.
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