Smart Energy Storage Company Stem’s Revenue up 184% YoY in Q4 2021
The company recorded a revenue increase of 251% YoY in 2021
Artificial Intelligence (AI)-enabled energy storage software and services provider Stem recorded a revenue of $52.8 million in the fourth quarter (Q4) of 2021, representing a year-over-year (YoY) increase of 184% compared to the $18.6 million registered in the same period last year.
Stem incurred a net loss of $34.1 million in Q4 2021, a significant reduction from the $100.9 million incurred in Q4 2020. The reduction in losses was primarily driven by non-cash revaluation of warrants, tied to changes in the value of the underlying common stock.
The adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for Q4 2021 was $12.4 million, against the EBITDA of $5.1 million recorded in the same period last year.
The company’s 12-month forward pipeline was $4 billion at the end of the fourth quarter compared to $2.4 billion in the third quarter. The increase in the 12-month pipeline results from increased FTM project opportunities, including significant expansions into new markets.
The contracted backlog was $449 million as of December 31, 2021, compared to $312 million as of September 30, 2021. This increase resulted from the record bookings in the quarter of $217 million, partially offset by revenue recognition, contract cancellations, and amendments during the quarter.
2021 Full Year Results
The company recorded a revenue of $127.4 million in 2021, representing a YoY increase of 251% compared to the $36.3 million registered last year. Higher hardware revenue from front-of-the-meter (FTM) and behind-the-meter partnership agreements drove most of the increase for the year.
Stem incurred a net loss of $101.2 million in FY 2021, a notable reduction from the $156.1 million incurred in FY 2020. The differences were again driven primarily by the non-cash revaluation of warrants, tied to changes in the value of the underlying common stock.
The adjusted EBITDA for FY 2021 was $30.3 million, against the EBITDA of $25.4 million recorded last year.
Stem expects to continue diversifying its supply chain, adopting alternative technologies, and deploying its balance sheet to meet the expected significant growth in customer demand. The company has also been affected by inflation in equipment costs and is actively working to mitigate these impacts on its financial results.
In December 2021, Stem had entered into a definitive agreement to acquire AlsoEnergy, a U.S.-based solar asset management software provider, in a stock and cash transaction.
The U.S. Department of Energy (DOE) recently issued two notices of intent to invest $2.91 billion to enhance the production of advanced batteries, critical to the fast-growing clean energy industries, including electric vehicles and energy storage domestically.