The share price for Stem actually peaked at nearly $50 in mid-February 2021 before the merger even completed. The performance of Stem stock reflects the volatile year created by the SPAC boom and bust of 2021, with most stocks ending the year in the red based on the initial price available to retail investors. You would also assume that the stock market might reward that kind of strong growth. Service revenue was nearly $15 million, which means about 20% is software-related revenues. For the first nine months of 2021, revenue hit $75 million compared to about $17.7 million in 2020. Meanwhile, services revenue ( i.e., Athena and related software) brought in just under $5 million – about 12% of total revenue for the most recent quarter. Revenue came in at $39.8 million, which represents an increase of 334% from a year ago, primarily driven by $29.4 million more in hardware revenue. The company had a monster 3Q-2021 by its standards. However, the AI piece is finally starting to trickle in. However, the company is largely reliant on hardware revenues, which involves selling solar-plus-storage systems, among other products, through various partnerships with battery manufacturers, engineering firms, and construction companies. You would assume that the core of the business is a software- as- a– service ( SaaS) model with tidy, predictable recurring revenues. The whole process is automated – even ensuring compliance with green energy tax credits – and Athena is continually learning to improve itself kilowatt-hour after kilowatt-hour. It then analyzes how to maximize value based on those predictions for a variety of solutions, such as bidding assets into wholesale energy markets, when to charge and discharge batteries, as well as the optimal time to charge an EV based on predicted conditions. Stem developed a machine-learning platform called Athena to do just that by generating multiple forecasts about things like weather, current market prices, energy demand, and more. That enables you to manage and maximize the ebb and flow of Mother Nature through an energy storage system, which these days usually consists of lithium-ion batteries. One of the most obvious is energy storage: The unpredictable nature of solar and wind means that you want to analyze and predict as many variables as possible. We first covered Stem in an article about the different ways AI could improve renewable energy applications. had raised about $357 million as a startup from more than two dozen investors including GE before announcing in late 2020 it would merge with a special purpose acquisition company ( SPAC). Stockįirst, a quick recap: Founded in 2009, Stem Inc. The deal was completed at the end of April 2021 and we now have some more solid data to review. ( STEM) that claimed to use artificial intelligence to optimize primarily what is called a solar-plus-storage system, which is basically a battery system connected to a solar panel array. In particular, we promised to revisit one headquartered near San Francisco called Stem Inc. During last year’s record-setting race to the public markets, a number of energy storage companies suddenly became available to retail investors. It’s not just about decarbonization of energy, but also decentralization from the power grid. That tells us better than any dime-a-dozen market report that demand is strong for energy storage systems, particularly those connected to renewable energy like solar. Much of the growth we’re told comes from energy storage solutions, not generation. However, that still represents $2.1 billion worth of revenues, up 69% based on the same time frame in the year prior. For the first nine months of this year, Tesla brought in $36.1 billion in revenues, only 6% of which came from their energy storage endeavors. While most of the focus is on sexy stuff like electric vehicles ( EVs) and rocketships, it’s easy to forget about Tesla’s energy generation and storage business. We’re no fanboys of the Tesla ( TSLA) and SpaceX CEO, but we give the man his due in spite of his occasional impersonation of the Mayhem guy in the Allstate commercials. If Warren Buffett is the Oracle of Omaha, then Elon Musk is the Mystic of Moonshot Technologies.
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