STEM - Stem Is Moving In The Right Direction

• Stem's acquisition of AlsoEnergy could help boost operating margins which are currently underperforming relative to industry averages, and reduce overreliance on hardware revenue.
• Macro factors including supply chain constraints could bring greater volatility and input costs variability in the shorter term.
• Stem's revenue guidance is ambitious but pragmatic, with rising energy costs which are expected to be sustained for the time being, giving rise to the need for energy cost optimisation.
• In the longer term, hardware revenue is the key conduit to profitability and greater software Contracted Annual Recurring Revenue (CARR).

For further details see: