STEM - Stem stock rises on strong Q3 bookings

Stem ( NYSE: STEM ) shares gained as much as 7% Friday morning after the energy storage network provider reaffirmed its full-year 2022 guidance and lifted the bottom end of its guidance for bookings .

The firm continues to expect revenue of $350M to $425M (vs. consensus of $392.25M) and adjusted EBITDA loss of $60M to $20M for the year. It expects to achieve positive adjusted EBITDA in the second half of 2023 and increase profitability in the years to come.

Non-GAAP gross margin rate is estimated at 15% to 20%, but the firm expects the metric to trend towards the lower end of the guidance range due to continued supply chain constraints.

Annual bookings estimate was updated to $850M to $950M from prior view of $775M to $950M, based on stronger than expected sales trends.

In Q3, Stem ( STEM ) reported record revenue of $100M that grew 150.0% Y/Y and 49% over the previous quarter. Most of the growth came from hardware sales on FTM and BTM partner storage projects, and about $17M from the addition of AlsoEnergy. Bookings grew 115% Y/Y to $223M, representing the second highest bookings quarter in the company history. Strong bookings drove backlog from $312M in Q321 to $817M.

Adjusted EBITDA was a negative $13M versus a negative $7M in the same quarter last year. Profitability was negatively impacted by higher operating costs from additional hiring.

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