Stem, provider of AI-backed energy storage software, reported record growth in the second quarter of 2022.
San Francisco-based Stem released its second quarter 2022 financial results, posting revenue growth of 246%. Stem is an AI-backed energy storage software and services provider.
The company recently partnered with AlsoEnergy, a leading solar monitoring software provider, to fully integrate solar and energy storage software solutions. Stem said the integration of the two companies is on track.
Storage assets under management total 2.1 GWh, compared to 1.8 GWh at the end of the first quarter of 2022. The solar monitoring division has 32.1 GW under management.
Stem’s quarterly revenue topped guidance by 5%, hitting $67 million in the second quarter, versus $19 million year-on-year. Its GAAP gross margin was 12%, compared to 1% in the year-ago quarter. Non-GAAP gross margin was 17%.
Net losses were $32 million versus $100 million in the second quarter of 2021. Adjusted EBITA was ($11) million versus $(8) million in the prior year quarter. The company ended the second quarter of 2022 with $335 million in cash, cash equivalents and short-term investments.
The company has a 12-month project pipeline of $5.6 billion. Bookings in the quarter were $226 million, compared to $45 million in the second quarter of 2021, an increase of 402%. Contractual annual recurring revenue reached $58 million, an increase of $6 million over the first quarter total.
“We are reiterating our full year 2022 revenue and adjusted EBITDA guidance and are increasing our full year 2022 bookings and CARR guidance by 20% and 7% at midterm, respectively, thanks to the continued commercial momentum achieved by our team.” said John Carrington, CEO of Stem. “It is important to note that our forecast does not incorporate any potential benefits from the proposed Cut Inflation Bill of 2022.”
The energy storage market is expected to continue its impressive growth as renewables are deployed around the world. The global energy storage market can reach 500 GW in deployment by 2031, Wood Mackenzie said. The United States and China are expected to account for 75% of global demand.
The market is expected to be strongly consolidated over the next decade. The top 10 countries for deployment are expected to account for 91% of global demand, with network-scale storage accounting for the largest share of capacity.
Wood Mackenzie said he sees the US on a path to a 27 GW annual market by 2031, and 83% of that will be large-scale storage.
“Supply chain constraints, licensing and interconnection delays and certain regulatory measures continue to pose challenges, but we believe we remain well positioned to manage these risks and continue our strong execution through 2022. “said Carrington.
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