STEM - Earnings call transcript Q2 2022

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Operator

Welcome to the Stem, Incorporated Second Quarter 2022 Earnings Conference Call.

As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. [Operator instructions] I'd now like to turn the conference over to Ted Durbin, Head of Investor Relations. Please go ahead.

Ted Durbin

operator. you, Thank Durbin, we Ted earnings Investor at Relations This you Head to and welcome XXXX our Stem, is of second call. quarter

statements materially today refer latest begin, some that involve We could we note therefore results we you projected uncertainties the will SEC to in our differ statements. Before risks and our be those filings. forward-looking. are please making cause These from matters to of that these

include non-GAAP financial Our comments today also measures.

the to be reconciliations Additional directly earnings comparable can and details measures financial most found release. GAAP our in

will using We be a slide today. presentation

and and are CFO, Johnson, our release CEO; earnings with call start President Patel, Investor And also Our to Carrington, AlsoEnergy; portion website Officer; will Officer Chief the Bush, Bill today the Schaefer, call. of available presentation the Strategy Larsh will Relations our turn over portion remarks. Technology be of and John the the will Bob Chief www.stem.com. for now, John. I question-and-answer Prakesh at call on of prepared

John Carrington

Starting are Slide Then quarter our call we second the update I'll Inflation how markets discuss in I'll we're the managing share how on highlights, and execution Act and today, serve. chain. with initial we solid the on X an agenda the our results our commercial views our expanding Reduction review for increased review provide I'll our and including supply guidance. XXXX Ted. Thanks,

market are how accelerating about technology talk I'll Finally, through innovation. we enablement

guidance. results Following or XXXX further more provide to who detail color my Bill will discuss remarks, I'll in our financial the turn over call revised and

was into a on with metrics, X.X second XXXX continues of the XXXX and contracted across start for line annual the today strong be expectations. second and Based times CAR. guidance revenue $XX on higher X, range the are margins the basis. EBITDA or Revenue half, strong guidance while end million, on strong key in our quarter to our key raising Slide above of came very year-over-year XXXX. quarter and to our we the X% results, board the and and of including Turning our quarter, bookings reported in than record were revenue metrics second nearly high The executed of visibility which demand two sequential team recurring on year our we

For bookings, at is a million which are from to our million range million $XXX another performance, XX% record a to and we the than of $XXX guidance $XXX $XXX increase to midpoint. raising million, more

CAR, $XX to rate Regarding $XX of $XX million million the to we guidance exit are raising from our million $XX to range million.

As Bill including three the guidance does will non-GAAP which key presentation. review Act, Inflation are discuss, metrics, the our not our potential revenue, XXXX reaffirming year impact and adjusted other EBITDA. on margin will later Reduction any I we gross in from This full incorporate guidance

to Moving the slide. side specific QX some highlights of on right the

our to pleased addition guidance, strong technology quarter we In and commercial execution. with are and our increased

software, offering the institute addition Athena and the emissions our reductions has target. new of relative streams, on all now with optimization services over XX we Mountain gas are First, AI-driven Rocky value greenhouse wheel, XXX% achieved storage to two

for quarter records gross contracted have have storage platform. had leadership, our On a And progress leverage, with XXXX, ranked we and conjunction We pipeline. and between margin, the GAAP into includes the were made of Guidehouse battery for remain we for integration including number supply we significant Stem's which one We and utilization focused AlsoEnergy's our business, aspect proud In on to platforms. solar once for our continued report we PowerTrack with execution momentum our of solar monitoring software on starting improving storage are in India backlog securing strong operating incremental XXXX of and by and Athena again, AlsoEnergy, monitoring collectively increased controls. revenue XXXX.

will to focus on we Our company the execution and and to software key our and continues on drive metrics operational high leverage. differentiate continue leadership margin services

Slide on commercial environment. from customers, further than some macro which also Fundamentally, to our of execute operations continue our of the offsetting customers which commercial is and more Moving and prices increase is labor, for to We're well seeing demand. interest driving increasing headwinds despite and component momentum; prices teams solid higher X higher are rates. returns initiatives, our volatile focus energy project ESG

XX% of software quarter first to versus differentiation. an million, leadership the our $XX increased CAR indication Our and

single with a behind Our is pipeline the XX deal customer offering. EV strong of multimillion margins, can storage this a software-only solution we energy monetize for Athena all deals charging platform XXX quarter. value provide With year-over-year. closed meter their Fortune dollar We it This newest a is streams and as up is solar our specific in monitoring, highly our available customer market. our to differentiated

in deals We momentum seeing this are and the have area solid multiple works. EV in

increase the monitoring price solar the We have This seen the to platform. material strength in the PowerTrack and value our the double-digit in implemented a and strong We for expertise quarter to incremental drive to launched we on developed plan side, financials. to professional no On churn. services impact first internal and support leverage we've customers our recently years offering margins energy solutions. our further over storage the speaks

of come from chain revenues uncertainty. in and supply today. diversified the than estimate solar provide revenues some challenges insulate XXXX remaining market recurring us our storage X, from standalone Slide XX% and from more revenue projects, regulatory to which procurement our Moving We protection will

commitments. XX% came side We repeat This bookings storage customers. and our than our continue the of on repeat our validation from monitor to is customers. of meeting a technology team, More

moratorium we asset in duties. to announcement performance; implemented on June are AD/CVD As to see early solar pertains the pleased it two-year

announced particularly impacted. stated we BTM The some been our of our scale the as the Department However, utility the from quarter, the projects. commercial slowdown last and has has spring in caused business, uncertainty on Commerce in business industrial less investigation

as and execute. continues to our impact headwinds We these a do financial result. an managed anticipate has team commercial not Our guidance to

potential monitor to Uyghur the Act, the Labor continuing impacts of UFLPA. Prevention Forced are We

So limited carefully developments. are resulted impacts, in that far, though watching has ongoing we the

June introduce can into quarter distribution direct think our as X; of Inflation sales and know, in strength US. continued to power STEM's and in channel the we expand last improve passage. would support turn are some become channel sales selling very energy week, of grid, a promising investment strongly into the in followed reach Act their PowerTrack in channel model energy adoption excited the Slide historically We to demonstrating support the growth. we Lastly, drive renewable development clean domestic and supply chain. AlsoEnergy presence. recorded and by security in Reduction Please could its America's news broke of climate customer legislation that potential energy The the provisions law our aging incentivizing you

standalone stability. and investment extension energy for and our enhance credit would improve Importantly for the solar of storage returns grid storage, the customers tax ITC economic

increase independent potentially large total subject final storage, a estimates market forecast For to the in in details addressable legislation.

potential our of has under solar storage gigawatts Less attached. into XX% revenue the As we portion have of not management comes would XX% than of financial emphasized, our the AlsoEnergy. the the solar legislation currently a in from US. clean of to legislation of the at guidance. energy always significant assets AUM provide of impact Passage included retrofit storage opportunity Over is an XX

So passage. our upon customers would be bill's a key the beneficiary

Bill's in and the positioned which are have we platform which UK, solar our Italy, to seen installed capitalize monitoring globally. well opportunities particularly Germany countries, over all additional enacting We similar on could in XX addition, the believe interest, legislation, passage. is provide are global In and of commercial we

We this are in dialogue projects partners, with customers, regarding municipalities, in could what legislation mean for our renewable their and pipelines. co-ops specifically corporate managers, asset

Additionally, in we potential in secure with are partners the increase storage supply our discussion demand. to OEM for

for expected X storage for demand. Please this satisfy update hardware proactively additional an our Slide turn supply to chain. have We contracted on to

BTM expect of progress alleviate which supply, manufacturing the experts We are beyond, in should and constraints our Recent supply industry battery market XXXX is energy lithium on XXXX. in particular. storage ion XXXX have fully we contracting XXXX increases have capacity supply and facing. for help currently contracts on and in in supply targeting the some the incremental for Industry contracted focused made

We as pricing, mitigation including the continue sourcing plan. logistics pressure, strategies, supply chain to well proactive revised in more monitor issues inflationary as a and developing

solar UFLPA And of stated the on presenting panel this utility solar financials. for scale increases impact impact uncertainty developers, The deliveries I and part logistics our for we could requirements the side, as software customers. near-term issues projects. earlier is The an slowing are process impact some specifically AD/CVD UFLPA compliance On seen on times. and and more before, mitigated have have described I paperwork price delivery

their processes. supporting interconnection pre-COVID stretched Lastly, continue with to project customers to levels be our timelines permitting and and our operations team, relative

affecting utility required offices, deferred addition staffing grid to and have also the permitting issues, timelines. that are been utilities at to In upgrades project

of some technology the highlight of leadership. X. Please to like examples turn our I'd to Next Slide

earlier our high Guidehouse utility a platform number report cloud to platform energy two cost release a marks in energy one AlsoEnergy future. enables team standardize this in ranking one forward our residential the global has and its is put and other of while vertically technology couldn't category storage we and speaks their from vendors. and scale out This transition. their monitoring the operational solar lowering look suite leading from and on into provides by customers. control. AlsoEnergy flagship the application. received proud to and a years, integrated multiple have AlsoEnergy clean track its as offerings, to for in the saw Bob research of the press we global The its this more industry the one AlsoEnergy validation that excellence differentiation you is As ownership tremendous increasing categories, partnerships. week, covers consultancy called ranked Guidehouse our as number continued external application strategy, led edge integrated that key including portfolio customers delivering for over power to differentiator time it that C&I entire and aggregated his effort second received We across total of be

please XX. turn Moving Slide to over to Athena,

two the streams Rocky enables to applications quarter, XX This additional Mountain launched all that software on Athena we wheel. value institute execute in

record result, the customers our provide in no a our with continues hours. solution track most to As suite market of runtime and other the storage to comprehensive Athena matching applications software

in grid lead performance our of obligations we've technology. to Across a the dispatches, on to ability which XX% the despite executed software increase continues of robustness market. and XXX% points our Our scalability year-to-date, fleet, the

sites serve. target implementing ahead ISO New of of its June, exceeding We Athena our for advantage, this year-to-date across near algorithms. who we forecasting of revenues. in annual hundreds we by our XX% outperformed load XXX foresight delivering ability a are segments key greenhouse in optimize resulted of well economic have for hours estimates grid incentive to perfect megawatt had XX% and perform customers the within co-optimization outperform market achieved conditions market Athena technology and to GHD and that perfect of months This reductions payment want California means reduction to data of In continuing four for customer and due the gas In operation. program. first England, we And in the both over results representing Athena's many exceptional

these we expectations. strong mode exceed breadth of build outperform All the accomplishments of our customer offerings to software of depth expertise, and our continuously the commitments we Building aim relative to continue our differentiated to success, to competitors. speak our and

and platform proud XX of and intelligence employees. the wouldn't the built without through AlsoEnergy that last have innovation, be we've which built our possible clean Stem our are leading, people. collaboration platform come energy from talented We that rigor the years,

deep We call Officer. are over to transition. now expertise, Financial we critical domain talent And Chief with best Bill turn energy I'll the Bush, as you. clean the the facilitate attracting Thank our

Bill Bush

with Starting second results Thanks XX XXXX. our for John. Page on quarter the

closed year, begin, recall last year's the on results. of that the I XX transaction comparability February Before which impacts we AlsoEnergy to this

the was of about million and XX%. $XX the million which from revenue The of FTM of margin on addition revenue performance surpassed second or As recognized revenue $XX projects versus the quarterly XXX% approximately the XX% software BTM increase of increase quarter came a of mentioned, total in record the hardware reported the growth for of the million of $XX an representing also and of XXXX. performance million from $XX high John AlsoEnergy. we and the we $XX services Most revenue sales XXXX million, quarter. QX storage partner

increase XXX% First an year-over-year half million of basis. was revenue on $XXX a

software a the XX% a in and the of gross year. or On GAAP growing by represents our margin last due in was this Our million from same versus to loss quarter $X.X over in margin, last second the software gross million at offerings. positive non-GAAP increase year, million second gross $XX.X margin and gross services gross XX% the basis, sequential our margin quarter straight X% GAAP slight margin This of quarter higher reflecting Non-GAAP an an last $X.X revenue. was quarter highlighted in the base a or revenues up basis, services increase a percentage is a strength XX. was increased of the and offerings. GAAP XXX% increase commercial year, mix just of On XX% versus

share expenses, and do a last in year. advantage future. the higher benefited outstanding margins from negatively those warrants swing XXXX to additional not $X Our to and And is build of second provided of then Net we $XX the same all by EBITDA the million XXXX our million hiring, expect million and the margin take February. the a roadmap the almost of negative charges initially reporting opportunities. for related costs $XX of of That in completely common Adjusted as retired is costs services We the our a large in associated last $XXX was in of stock from quarter in guidance non-cash market versus year a we was loss negative versus a with XX% million in line loss public margin advance quarter result similar personnel XX% expenses we greater was adjusted technology related year. high warrants. squarely revenue. from out software impacted significant quarter continue last to same That XX% teams operating EBITDA those with lastly, to loss

months were bookings This $XXX and five of in quarter booked million quarter year. we all bookings six times for nearly in bookings than was XXXX. second highest Second is XX million the more last up June company versus bookings the same the the $XXX of in quarter ended what history

Slide from our to financial Moving XX. results metrics our on operating

XX% by million in excellent quarter basis term, ended medium tripled the of XXXX. the to The million for the Our approximately XXXX short and revenue of nearly of $XXX $XXX in quarter $XXX million the from year-over-year XXXX. the The backlog $XXX from sequential backlog XX, million largest in of and March driver the from bookings the new in a offset was increased first period second half in amendments project into as the XXXX. believe that to backlog back the recognized adjustments 'XX gives We during some as quarter, book the us visibility well is quarter, and of configurations. that backlog

grew second on that's Our the second of the on by contracted X.X gigawatt operations storage a in XX% hours in again, and gigawatt side execution XXXX year-over-year quarter strong of hours increase AUM of business. the quarter driven X.X our side from the sales XXXX, to

track the of sequentially. base the customer the solar platform solar side the We into flat with XX.X monitoring AUM penetration performance business quarter the and believe storage operating significant cross-sell power Athena low that opportunity gigs to opportunity relatively bring AUM. a to Our asset and end of the at represents

on the the the opportunity. This the mentioned, solar metric ended ended customers, drive that Contracted Athena ITC and recurring John revenue $XX CAR cash million the accelerate balance our quarter PowerTrack $XXX which or as the value. in cross-sell offer showcases As quarter services We we network annual with million. software sheet. of importance of and long-term could

our to storage other structures As we for cash, and systems also our to deliver you'll to strategic to revenue. the greater secure adoption of in are quarter, recurring see customers. allow In margin tools continue energy drive our to to customers hardware this and a high evaluating us deploy storage interim,

Slide to XX. Turning

to for gross the updates none XX% of we year raising million raising reflect are $XXX in in to million. range we our XX% full about guidance a GAAP Act. guidance As guidance and range of of midpoint XX% in affirming bookings, about John Remember, XXXX mentioned are at impact $XXX we by the to the negative million, and the these On $XXX for CAR $XXX Inflation are our from EBITDA for adjusted bookings revenue our earlier, the margin the of and $XX million. $XX million of million to Reduction any potential range non

show adjusting the half of the dollar remaining our absolute percentages rather to than for are disclosures ranges We the year.

the to high ranges increasing based end business end be business the well, things able hit based visibility, break and to these of and sizes of the we While to the we'll our if able continues importance lumpy be FTM range. hit the be feel that low its we on confident project that expect our sales on we'll of

more now bookings. than XXXX were remember, calls relative us guidance triple our XXXX to for bookings bookings double and XXXX to our revised our Our bookings

range more the drive Analyst We're you also function now, $XX million our Date in increased help software due should We revenue. ability a testament received long of also our to This to which hardware the have By upfront guidance service that to well management high grown Investor chain customer Save the offering, million. a changes the This time, and short margin Manhattan. business on our legislation. on bookings, have and It's very meets needs. that of differentiated notice of margins, solid XXth Day their product million profitably. without software us amount car by in to is is but supply dated rapidly to as raising the $X deliver our customers enter any new September Your right focus for to in importantly, our $XX customer Midtown allows markets as will to our a

well technology the as at strategy process, additional We our range discuss and our event. from financial provide details differentiation as on planning long will outlook our

our our and differentiation the component an profitability. important and of operating accelerating drive processes is We leverage to to on planning continue commercial focus

the some to turn back remarks. me John Let call closing for

John Carrington

Thanks Bill.

Slide with half range to revenue the To up and XXXX, we're above wrap high momentum guidance record commercial second XX. operating about record heading excited strong the year-over-year. and Turning up, XX our our of into of end bookings

our power Our annual to growth with differentiation revenue supports in pricing drive continues and contracted technology recurring customers.

We reiterating do bookings from the key Inflation and which not Act. our Reduction are other any year include raising for metrics, on guidance the CAR guidance upside again, our for and

LGBTIA strong of plus, the to with Leadership. Stem in the build in Women and on quarter a inclusive launch continue employee culture and We focused two new at networks

We are industry. and communities in the our best committed the workplace broader to building

acquisition preceding questions, initiatives September and commercial to well, as XX the the driving let's expect integration city. focus In addition, operating Bill line that, York on please. New in in the mentioned and is for of drive as profitability we synergies a Analyst AlsoEnergy on Day, the forthcoming detail on open we With leverage

Operator

[Operator first Wolf David comes with go Peters question instructions] ahead. Research. Please from The

David Peters

afternoon, good Hey, the update. Congrats Yeah. everybody. on

a First most available, seeing little to question are booking you Can just on on the it related power I have primarily FTM anything by what revised bit then you that, for talk relative increased and ISOs success seeing the just to initial expectations? the where driven guidance momentum is specifically. Is related or you're being in?

Bill Bush

Yeah. that. Hey Dave, Thanks this Appreciate is the question. for Bill.

government. as starting come on the initial So the I we've some continue the momentum of -- growing the we see and side, see AC that's we although and rapidly the out side, any most component opportunities quarters, see are we're with the we business the prior where -- to in initial about AE think talked much FTM to segment is of there, some on like very FTM seeing competitive

the So side clearly business, FTM but biggest seeing business. across I the impact the think is of on we're the it really

David Peters

ISO-wise ERCOT. it's And

Bill Bush

Yeah.

David Peters

still. strongest the is Certainly

Bill Bush

strong is Although newly the ISO quite well. also as

markets. two So primary really those

David Peters

so or all knowing next EBITDA that. that does at up for and the inflect drives the might you in bookings, Does that bump on, guys accelerate just when to change about year positive? expect Thanks revenue thinking this see obviously

Bill Bush

I will think does that revenue the for opportunities. and Well, create in sure growth and bookings relate

we when as things range. was those are in days take to some of I well projects gave of that months is think and those that guidance that month one XX longer FTM that and where, tend a up initial while the do really more back we think see a I say bit little XX like the the these

So we will see that.

actually So we're will half, opposed drive the in that XXXX of we'll hit to all XXXX. will, about. start that starting, this effectively software to then aspects see we've in And course deals second talked as

standpoint. excuse get do news we'll think good So, in from it Analyst is in additional we'll general, meetings, call relates York, me, as around the to guidance New EBITDA, that's then. And I that all Analyst or that that some Day in what the Day

David Peters

those obviously for would one, to if with you on the pass, but sites to limitations had if to as Stem's mean AlsoEnergy's respect could it could Thank just solar a any quick batteries from there standpoint? be this Okay. and relates to I how initial and need some move just thoughts just then IRA, pipeline, specifically wondering last solar what would supply AUM, you. with any you retrofit, of

John Carrington

David, Yeah, very Reduction the supportive of obviously look, things, Couple Act. Inflation thanks. we're

growth, I obviously certainly strong think said, job remarks, as drive the expansion. I it renewable prepared a in will

We I US And also things on significant some ITC which place, and level parties final And low if becoming we more you more manufacturing, all there of standalone light storage rolls are details look need the get at upside. of over certainly out. say how significantly this global included. the TAM with is more ranges to clearly that and some is the a end see third I'd of the going that think XX%. the at

markets things about when this highly of become we our in that edge were light them and of economically there's talked one you on the we occurs, that a think I we've this. about customers what think the viable talking when activity C&I XXX do before would is, in maybe been in that Fortune of to particular, have lot about, with

have XX,XXX really them part they the are for excited currently some fact Obviously as process the a to differentiated. think location are are that of now the size, in the highly there's that existing the been I am reason time, system customers know other who have family who customers. it's we we for and The we they're that variety these and managing. of So And of on. is having talking are, the production. know they AlsoEnergy we sites and discussions and

sheet kind to So address. perfect lead of and us it's for a go

very So competitive execute we we're soon a it's finalized. We that excited mode and strong will this as that. about think as highly differentiated is

Operator

The next with Brian go question comes from Lee Please ahead. Goldman Sachs.

Brian Lee

the metrics Hey strength. guys. taking Thanks kudos even mentioned for into But, question for the just raising execution. guess color not Bill that or would think appreciate mix some around on you're guidance just nice the and the seeing these that momentum I of XX. heard for around the first questions delivery I bookings bookings be I set and where right. XXXX If you're

is are more bookings? here, sort composition long changing seeing as about of you think the bookings of you dated So cadence

John Carrington

would've So, me bookings clarify XXXX, I could bookings first that half was not Brian, the into half. let comment thanks second in in first, there. for saying one the What been question be the the is

guidance, as so the growth Just that's far than bookings not you and going side that of the far happening as we're revenue happen in and that is super same that's say those create And XXXX determines metric period. the, XXXX not super what's I particularly course really, term because that's is that's that during that comes are to we're really, so for us. sale know, philosophy CAR But, But we're gets kind say changing, the clear where the time think in. where the a longer of as business, more front why likely that's the that's happening, the on interesting revenue in locking of to meter because sale going it in point. as of likely

lock you're time long term starting that period. software so in to dated during long contracts And

Brian Lee

not, on enough. Can question sort the takes And the some Fair rest here encouraging Okay. if where through to the then of on the talk you quarter. higher the the margins? trend to just uplift of expect of this this puts should things about margins, Is we see second year? maybe gross and

John Carrington

course, XX% XX%. of guidance our Well, is to

pretty of we're in comfortable -- So right right the is. that middle we're We're that. where

longer ability start, the is And interconnection I as think log that those projects through side our we to big break are we a start shorter say of set or up for business. even operating the some in to and the us term can have impact those soon to jams be of get effectively jams. log as term, lot permitting of going

think I going to the expect that and into you're we over really so software would line and see so over quite the And time to more that significantly rolling P&L services years. coming more grow revenue item software,

Brian Lee

Thanks it lot, enough. guys. Fair pass a Okay. I'll on.

Operator

from comes go Credit question next The with Mohit Manrai Suisse. Please ahead.

Mohit Manrai

you is over on Hey, saw well? any good mostly on Maybe drivers end? increase quickly QX about the nice or from just talk that on you evening anything, like and pull Is forward QX, the quarter about the congratulations there here could here. revenue, just it as ASP the talked you

John Carrington

and question appreciate the I think Mohit. Yeah, it. so for I thanks

top tied So That's for line the biggest bang get hardware revenue, is the going into the where, buck a to sales. when be you perspective. from

the during where it quarter line And from at really where of outperformed top the be there. revenue level, so would that standpoint was the we

to, year. would Now the I affirming say the we it high the kind not. it really of, think relates forward or was as but of not? or pull full that are guidance, I a at we don't end did above

in we're from good that that where think standpoint. are I pretty from shape So we

Mohit Manrai

to an or for and of not, here if then the on batteries just support kind like for demand get over demand question do IRA Brian that when IRA year you, here? on approved, from we enough probably the next if get Got here, supply we previous just we have

John Carrington

as this demand understand the around details I'd what exactly say have looks that like. we the to far as

if party If look at estimates, the XXX%. some you from you, it's said, ranging of XX% as I to third

our feel about good to have and chain have our We've talked very we're OEM we'll commitments to about the unpack the company. So -- that. I to in supply this past.

with and couple amount I that, also fact, pretty feel in a fairly our OEMs move. Stem we and as super previous we've calls. about capacity reviews incoming we discussed seen the you that if continue I make significant market And that on weeks, a getting for very transparent And in the weekly level good last hardware in say we've on think granular great and first specifically of we've BTM of say, the calls. occur excess would executed we've to call, been been about

So, we'll it closely. monitor

big supply another with amount we a few how the we I think feel put over be in that it of years. of we disperse partnered agreement have variety and our place to very advantage with timeframe we associated and that in the last like understand OEMs have, with OEMs could particular this we've of could the

we have a that in lot that of So in optionality category.

Mohit Manrai

and then one some are just year on just it. this you elaborate on Thanks. and one and one UFLTA, latest to you, is next in gave the you that? previously to be color which then Is more moved Could projects around causing it this back Or Got what year? last hearing queue planned end? that jump earlier

John Carrington

we're scale. the large little of we're think utility on seeing I impact -- seeing a Yeah, bit

have to you've supply don’t a it's It's our chain are It's bit and necessarily We a add. little a recently, closely still attention anything we're monitoring. certainly BTM. know, bit we'll Bill, you to gotten the if been something I working quite continue seeing not monitored. closely early but,

Bill Bush

Yeah.

the, really probably We on haven't more you it's cells. and say, the yet battery seen impact an know,

to of see looking level. that mineral rulings customs indicate in the where that's the to most the probably actually that going the is at department you're seem I think some

yet. out, we is depending probably think on we how have impacts And but going could so I to see seen works that not any there, some that

that think impacting it's what port. is heard in through coming the I more panels we solar have

a we which And have know, that if heard. that's impact you so guys seen your. anything seen what yet, Bob, we've significant think haven't I but don't I on

Robert Schaefer

So for thanks us, Schaefer, the Bob and this question, Mohit. for is

I there So think, when on problem. timing related ground. those to for side projects get of kind a the us, challenges in utility long see, It takes PV the large it's time scale a just just we projects about, and

need you really to you So certainty pricing embark. want before

part can quickly kind what of that's And in that so the business. we execute favors that here and projects see our of

Operator

Perincheril Biju go from instructions] [Operator ahead. Please with question comes Susquehanna. The next

Biju Perincheril

Congrats Hey, a great thanks. on quarter.

deals intrigued So about I increase comment there. was kind by the software-only your of

Are us give extra car provider you more good? adding of these facilities, dumb like replacing a these can a software's you solutions software bit that be call storage will are or -- existing are little So any color? previous it,

John Carrington

that Sure talked Biju. I we the an of California Southern the for may I own seeing are say procuring what Athena large existing largest with would this projects meter obviously, platform. all bring. we're to the the in a you. in things. portfolio down not past. couple was And majority of Good say is developer question. software from inclusive hear attributes a Thanks hardware on Athena whereby about That's but and we XXX replacement behind front the be utilizing the the that in the have would and One their meter

wheel. Mountain I the of as think added too, we've it's more that Rocky comments, all part us our XX because two mentioned as applications prepared exciting gives we of offering the in

it's look that's compelling, metric, as that you progress think. So at really the And the the of we captures business. CAR one obviously,

grow and focused we've software sell talked as that's for on platform. more and to to we hardware it's and we're demand continue start we've strong And It's going only software so about, to both something been really starting see do deals. to more our something

more excited the have We'll hopefully to September more to we closes day analyst around this. and, talk update in that. as So about well get very as see on everybody

Bill Bush

hardware, into would selling even I well One those the add projects. that if we selling services though thing is as to not are we're same

a the software line. and so, of that interesting business margin the of part is on from services perspective course, us, And for

a necessarily the be if not even that such end unquote losing we the we're engineering it', services of hardware, losing would same providing 'top result and quote as those are So the of we customers. to

So the selection itself, our they in topics, interconnection, number still etcetera. warranties, terms need of and a of the other help battery

Biju Perincheril

Got it.

becoming thinking, tailwind that a business was to business, the that software, of part a faster is making Now I hardware of the sort your of nice making adding bigger a this transition transition. plus sort to software

John Carrington

think Biju. Yeah, Thanks. it'll and only the momentum great we feel I about continue

ahead. go So

Biju Perincheril

or pleasant as it storage facing, by supply the sector are the you then constraints? not but all a quarter. the impacted they little bit meter standalone the nice the was are projects these booking has color And because the -- a looks, chain It were been maybe more is headwinds mostly surprise the bookings, this with add it on behind

John Carrington

I really Yeah, well $XXX as mentioned bookings. over quarter we as quarter XX% We're the of appreciate it comment XXX% the about excited million, that's growth and year-over-year.

continues We the BTM. more opportunities, well. for of like BTM That's huge lever Act. a extremely more standpoint, mix X% demand out will coming around ground the We as meter obviously increase. FTM, Reduction believe COVID, that activity and on do the feel strong. we're with seeing behind Inflation a the that From be XX% So to

So really I guidance. just been and geography strong it's of balance one move year we'll even strong enough the up that and to demand we're across obviously very the monitor board. about wouldn't continued excited the highlight piece, excited but

So…

Operator

turn over concludes This the for question-and-answer John to closing conference I'd Carrington session. back the to remarks. like any

John Carrington

our on call. for everyone our speaking thank joining with September York. you New look and in Analyst second forward at XXth Day us We you earnings Thank Investor quarter on and to XXXX

Operator

today's This concludes call. conference

You may your a and Thank have you for day. lines. disconnect participating pleasant

Stem (STEM) 4 Aug 222022 Q2 Earnings call transcript