What happened
Stem (STEM -4.05%), maker of smart battery storage solutions, reported record revenue and assets under management (AUM) in its third-quarter financial results last night, sending shares as much as 13% higher Wednesday morning. As of 2:50 p.m. EST, Stem stock was still 5.75% higher on the day.
So what
Stem uses artificial intelligence (AI)-driven technology to provide energy storage that aims to maximize clean energy and renewable energy generation. Its revenue of $39.8 million for the three-month period ended Sept. 30, grew 334% compared to the prior-year period, and was more than double its sales from just the prior quarter. The company also reaffirmed its prior guidance for full-year 2021 revenue of $147 million.
Image source: Getty Images.
Now what
Stem CEO John Carrington said the company's backlog grew 25% sequentially, and summed up the results stating, "Customers increasingly demand our smart energy solutions enabled by Athena, our industry-leading software platform."
After going public earlier this year, Stem is adequately capitalized with $576 million in cash, cash equivalents, and short-term investments and no debt. The company said its 12-month forward project pipeline has soared by 41% just since the prior three-month period. Management credited expansion into new markets, particularly with front-of-the-meter (FTM) battery storage opportunities which are typically utility-scale systems.
The stock hit its highs in late June and early July, and has dropped more than 30% since that time. Today, investors liked what they heard, and are looking forward to 2022 guidance the company plans to provide during its fourth-quarter and full-year 2021 report early in 2022.
