Stem, Inc. (STEM) Bundle
An Overview of Stem, Inc. (STEM)
General Summary of Stem, Inc.
Stem, Inc. was incorporated on March 16, 2009, in the State of Delaware and is headquartered in San Francisco, California. The company originally operated as Rollins Road Acquisition Company prior to its merger with Star Peak Transition Corp. in 2021. Stem specializes in AI-enabled energy storage solutions and software services designed to optimize energy asset performance.
As of 2024, Stem, Inc. offers a range of products, including energy storage systems and software solutions that facilitate energy management and trading. The company's services encompass advisory roles in development, engineering, and market participation strategies.
In terms of sales, Stem recorded total revenue of $29.3 million for the three months ended September 30, 2024, a significant decrease from $133.7 million in the same period in 2023. For the nine months ended September 30, 2024, the total revenue was $88.8 million, down from $294.1 million in 2023.
Company's Financial Performance in the Latest Financial Reports
In the latest financial reports, Stem, Inc. reported a net loss of $802.9 million for the nine months ended September 30, 2024, compared to a net loss of $102.7 million for the same period in 2023. The company experienced a significant drop in hardware revenue, which decreased by approximately $171.1 million, primarily due to reduced demand and project-related delays. However, services and other revenue increased by $4.5 million, attributed to growth in solar subscription services.
The following table summarizes key financial metrics for Stem, Inc. for the nine months ended September 30, 2024, and 2023:
| Metric | 2024 | 2023 |
|---|---|---|
| Total Revenue | $88.8 million | $294.1 million |
| Net Loss | $(802.9 million) | $(102.7 million) |
| Loss per Share | $(4.99) | $(0.66) |
| Operating Expenses | $783.7 million | $138.4 million |
| Cash and Cash Equivalents | $75.4 million | $105.4 million |
As of September 30, 2024, Stem's accumulated deficit was $1.575 billion, reflecting the substantial losses incurred during its transition to a software and services-oriented business model.
Introduction to the Company as a Leader in the Industry
Stem, Inc. positions itself as a leader in the energy storage and management sector, leveraging AI technology to enhance energy efficiency and performance. The company’s innovative approach has enabled it to provide comprehensive solutions to its clients, facilitating better decision-making in energy trading and usage.
Despite recent financial challenges, Stem's commitment to developing cutting-edge software and services signals its potential to regain momentum in the market. The company’s strategic pivot towards AI-enabled solutions reflects a broader industry trend towards digitization in energy management. To understand more about Stem's strategic initiatives and market positioning, further exploration is encouraged.
Mission Statement of Stem, Inc. (STEM)
Mission Statement Overview
Stem, Inc. (STEM) is dedicated to transforming the energy landscape with its innovative software and hardware solutions, emphasizing the importance of sustainable energy management. The company's mission statement serves as a guiding principle, informing strategic initiatives and operational decisions, while aligning with long-term objectives of enhancing energy efficiency and supporting the transition to renewable energy sources.
Core Component 1: Commitment to Innovation
Stem, Inc. prioritizes innovation as a cornerstone of its mission. The company invests significantly in research and development to enhance its AI-driven software platforms and energy storage solutions. For instance, during the nine months ended September 30, 2024, Stem reported research and development expenses of $40.5 million, reflecting its dedication to advancing technology in the energy sector.
Core Component 2: Customer-Centric Approach
At the heart of Stem's mission is a commitment to delivering exceptional value to customers. The company focuses on providing tailored energy solutions that meet the specific needs of its clients. As of September 30, 2024, Stem's total revenue from services and other revenue was $52.1 million, indicating a growing demand for its customer-centric offerings.
Core Component 3: Sustainability and Social Responsibility
Stem, Inc. is deeply committed to sustainability, aiming to facilitate the transition to clean energy. The company’s mission reflects its responsibility to promote environmentally friendly practices. As of September 30, 2024, Stem had accumulated a deficit of $1.575 billion, underscoring the financial challenges faced while pursuing its ambitious sustainability goals.
| Financial Metrics | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $29.3 million | $133.7 million | -78% |
| Net Loss | $(148.3) million | $(77.1) million | +92% |
| Research and Development Expenses | $11.1 million | $14.4 million | -23% |
| Sales and Marketing Expenses | $8.2 million | $11.6 million | -29% |
| General and Administrative Expenses | $27.2 million | $22.0 million | +24% |
Stem, Inc.'s mission statement encapsulates its aspirations to lead in energy innovation, prioritize customer satisfaction, and uphold sustainability. The company continues to navigate financial challenges while striving to fulfill its mission in 2024.
Vision Statement of Stem, Inc. (STEM)
Vision Statement of Stem, Inc. (STEM)
As of 2024, Stem, Inc. aims to revolutionize the energy industry through innovative AI-driven solutions that enhance the performance and efficiency of clean energy assets. The company focuses on delivering comprehensive software and services that empower its customers to optimize their energy projects, reduce costs, and achieve sustainability goals.
1. Commitment to InnovationStem is dedicated to continuous innovation in AI and energy management technologies. The company's AI platform, Athena, is central to its vision, enhancing decision-making and operational efficiency for customers. In 2024, Stem has invested approximately $40.5 million in research and development, aiming to advance its software capabilities and expand its service offerings.
2. Customer-Centric ApproachAt the core of Stem's vision is a commitment to customer success. The company serves over 16,000 customers globally, providing tailored solutions that meet specific energy needs. In 2024, Stem's total revenue from services and other revenue was $52.1 million, demonstrating its focus on delivering value to clients while navigating a challenging market environment.
3. Sustainability and Environmental StewardshipStem's vision emphasizes a commitment to sustainability, helping customers achieve their environmental, social, and governance (ESG) objectives. The company supports initiatives aimed at reducing carbon footprints and enhancing energy efficiency. In 2024, Stem has facilitated the deployment of energy storage systems that contribute to a total of 138,227 MWh of energy storage capacity, reinforcing its role in promoting clean energy solutions.
4. Strategic PartnershipsTo enhance its market presence and capabilities, Stem is focused on building strategic partnerships within the energy sector. The company has established collaborations with key industry players, enabling it to expand its service offerings and geographical reach. As of September 30, 2024, Stem reported remaining performance obligations of $416.5 million, reflecting its robust pipeline of contracted revenue.
| Year | Revenue (in millions) | R&D Investment (in millions) | Energy Storage Capacity (MWh) | Remaining Performance Obligations (in millions) |
|---|---|---|---|---|
| 2024 | 88.8 | 40.5 | 138,227 | 416.5 |
| 2023 | 294.1 | 42.0 | 141,181 | 545.3 |
Stem, Inc. continues to position itself as a leader in the clean energy sector, leveraging AI technology to drive operational efficiency and customer satisfaction in 2024.
Core Values of Stem, Inc. (STEM)
Core Value: Innovation
Innovation is at the heart of Stem, Inc.'s operations, driving the development of advanced energy storage solutions and AI-enabled software. This commitment is evident in their ongoing investments in research and development, which totaled approximately $40.5 million for the nine months ended September 30, 2024.
The company has focused on utility-scale projects, enhancing their capabilities by deploying energy storage systems for Fortune 500 clients and operating the largest virtual power plant in California. Furthermore, Stem's software has helped reduce energy costs for businesses by optimizing demand charge management and enabling participation in wholesale markets.
Core Value: Sustainability
Sustainability is a core value that informs Stem's mission to support the transition to renewable energy. The company has implemented various initiatives aimed at reducing carbon emissions and promoting clean energy solutions. As of September 30, 2024, Stem's energy storage systems placed into service totaled $138.2 million.
Additionally, Stem's software and services assist customers in meeting their Environmental, Social, and Governance (ESG) goals, contributing to better energy yield and reduced operational costs. The focus on sustainability is reflected in the company's strategic direction, which aims to mitigate the impacts of climate change through innovative technology.
Core Value: Customer Commitment
Customer Commitment is crucial for Stem, Inc., as it emphasizes the importance of delivering value to clients through tailored energy solutions. Stem has developed strong relationships with its customers, demonstrated by the significant revenue generated from services and other revenue, which amounted to $52.1 million for the nine months ended September 30, 2024.
The company actively engages with customers to understand their unique energy needs, providing advisory services that span from project development to operational optimization. This commitment is vital for maintaining long-term partnerships and driving customer satisfaction.
Core Value: Integrity
Integrity is fundamental to Stem's business practices, ensuring transparency and ethical behavior in all operations. The company maintains rigorous compliance with regulatory standards, which is reflected in its financial disclosures and operational practices. As of September 30, 2024, Stem reported an accumulated deficit of $1.6 billion, highlighting the challenges faced while striving for growth.
In line with this core value, Stem has implemented comprehensive risk management strategies to navigate market uncertainties and uphold stakeholder trust. The company's commitment to integrity fosters a culture of accountability and reliability, essential for its long-term success.
Core Value: Teamwork
Teamwork is a vital aspect of Stem's corporate culture, promoting collaboration among employees to drive innovation and efficiency. The company employs a diverse workforce, with stock-based compensation expenses amounting to approximately $21.7 million for the nine months ended September 30, 2024, reflecting its investment in talent.
Stem encourages cross-functional collaboration to enhance problem-solving capabilities and leverage diverse skill sets. This teamwork approach has been instrumental in the successful execution of large-scale energy projects, positioning the company as a leader in the energy storage industry.
| Core Value | Description | Financial Impact |
|---|---|---|
| Innovation | Focus on advanced energy storage solutions and AI software development | $40.5 million in R&D for 9 months ended Sept 2024 |
| Sustainability | Commitment to renewable energy and carbon reduction | $138.2 million in energy storage systems placed into service |
| Customer Commitment | Delivering value through tailored energy solutions | $52.1 million in services and other revenue for 9 months ended Sept 2024 |
| Integrity | Ensuring transparency and ethical operations | $1.6 billion accumulated deficit |
| Teamwork | Promoting collaboration among employees | $21.7 million in stock-based compensation for 9 months ended Sept 2024 |
Stem, Inc. (STEM) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Article updated on 8 Nov 2024
Resources:
- Stem, Inc. (STEM) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Stem, Inc. (STEM)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Stem, Inc. (STEM)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.