Stem energy storage news

What does stem do?

Stem specializes in clean energy management solutions, primarily through its AI-driven Athena platform, which optimizes energy storage and solar asset performance. The company provides comprehensive offerings such as battery storage, edge hardware, and professional services, relying on long-term contracts of up to 20 years.

Is stem a software centric company?

Recently, Stem has shifted its focus away from hardware and towards a software and services-centric model. This strategic pivot seeks to capitalize on the reliability of recurring revenue from software in contrast to the volatility of the hardware market, and enhance its gross margins.

How did stem perform in third-quarter?

The clean energy solutions and services company reported mixed third-quarter results, with declining revenue but improved gross margins amid a strategic pivot. Stem (STEM -14.99%), a leading provider of software and solutions for the clean energy industry, released its third-quarter earnings on Oct. 30, unveiling a mixed performance.

Why did stem perform a strategic pivot?

This strategic pivot seeks to capitalize on the reliability of recurring revenue from software in contrast to the volatility of the hardware market, and enhance its gross margins. In the quarter, Stem demonstrated notable shifts in its financial metrics and strategic posture.

Why has Andrew Percoco rated stem Inc (stem) a hold?

Andrew Percoco has given his Hold rating due to a combination of factors impacting Stem Inc’s financial outlook. The company has revised its 2024 revenue guidance downwards significantly, primarily due to postponed storage hardware projects, which has resulted in a lower expected revenue range.

Why did stem change its guidance for 2024?

This reflects ongoing industry challenges and the company's strategic pivot. Stem has revised its full-year 2024 guidance for revenue to a range of $135 million to $155 million, down from the previous range of $200 million to $270 million.