STEM - Stem GAAP EPS of -$0.22 misses by $0.04 revenue of $99.5M beats by $15.14M

• Stem press release ( NYSE: STEM ): Q3 GAAP EPS of -$0.22 misses by $0.04 .
• Revenue of $99.5M (+150.0% Y/Y, +49% Q/Q) beats by $15.14M .
• Non-GAAP gross margin rate of 13%, in-line with 3Q21..
• The company reported 12-month Pipeline of $7.2B at end of Q3, up from $5.6B (+29%) at end of 2Q22.
• Bookings up 115% Y/Y to $223M.
• Contracted backlog up 162% Y/Y to $817M at end of Q3.
• Contracted storage assets under management (AUM) grew 71% Y/Y and 14% Q/Q to 2.4 GWh, driven by new contracts.
• Solar monitoring AUM of 25 gigawatts ( GW ), down 7 GW sequentially primarily due to a one-time reduction of unprofitable platforms and customers.
• Contracted Annual Recurring Revenue (CARR) up 5% Q/Q to $61M.
• CEO comment: "We are reaffirming our full-year 2022 guidance across all of our key metrics, and raising the bottom end of our guidance for bookings. We currently expect our Non-GAAP Gross Margin to trend towards the lower end of our guidance range due to continued supply chain constraints, primarily impacting Also Energy due to delays in solar equipment deliveries. However, we continue to actively manage costs, and therefore expect adjusted EBITDA to trend towards the midpoint of our guidance. As previously discussed, we are actively driving towards achieving positive adjusted EBITDA, which we expect to occur in the second half of 2023, and increasing our profitability in the years to come.”
• Q4 Outlook : Revenue in the rang of $175M to $225M vs. consensus of $199.43M; Bookings in the range of $250M to $350M.
• The company reaffirms FY2022 guidance : Revenue of $350M to $425M vs. consensus of $392.25M; Non-GAAP gross margin rate of 15% to 20%; Adjusted EBITDA loss of $60M to $20M; Bookings updated to $850M to $950M from prior view of $775M to $950M; CARR (year end) in the range of $65M to $85M.

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