The following is a summary of the Stem, Inc. (STEM) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Stem, Inc. reported Q1 2024 revenue of $25 million, a decrease of 62% compared to Q1 2023 due to a $33 million adjustment related to legacy contract guarantees from 2022 and the first half of 2023, and adverse market conditions.

• Though revenue declined, the company achieved a record non-GAAP gross margin of 24%, driven by higher mixes of software and services revenue.

• Adjusted EBITDA was negative $12.2 million versus negative $13.7 million in Q1 2023. Operating cash flow was nearly balanced this quarter, which was a $35 million improvement over Q1 2023.

Business Progress:

• Stem, Inc. is moving forward with converting contracted annual recurring revenue (CARR) to annual recurring revenue (ARR) and continues to secure software-only deals.

• The contracted backlog was $1.6 billion at the end of Q1 2024, compared to $1.9 billion at the end of Q4 2023.

• Stem prioritizes cash flow generation, developing software and services revenue, and maintaining its technology leadership position in 2024.

• The company has introduced a new software product, PowerTrack Asset Performance Management Suite, set to be available at the end of this year.

• The company is shifting its focus from C&I projects due to delays, to municipal power and public power markets.

• Stem's business strategy now includes shortening conversion times from booking to revenue, focusing on software, which will likely enhance their financial performance.

More details: Stem Inc IR

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