Skip to main content
No. of Recommendations: 3
There is a pure play energy storage/management company that currently (pun?) had more installed storage capacity than Tesla. I have a tiny position and am studying it. The narrative is AI/ML software to maximize utilization. Seems very simple usage model but there are very complicated monetization channels and diverse user profiles. 75% of revenue is hardware, 25% is services. The RPO is 2/3rd's service and 1/3 hardware. Hardware has about 5% gross margin, I think. Latest quarter non-GAAP GM was 11% overall. So, current financial metrics suck.

But the 1/3 hardware RPO will be realized within one year. The services RPO, 37% is greater than 5 years. They sell the hardware, install in one year and then harvest services for 10 to 20 years.
Because they have a number of different customer types, the picture is a bit obscure. They sell to utilities, to enterprises, to commercial, to developers, .... One of the more complex models would be an enterprise which both generates electricity and consumes it and so its generation period, its usage period and the electricity cost need to be predicted to control the time of consumption and time of selling.

Revenue growth was 339% Y-o-Y.

I am still digging.

Here are some picks and shovels if you are interested:

Investor presentation

https://investors.stem.com/events-and-presentations/default....

Latest quarterly

https://d18rn0p25nwr6d.cloudfront.net/CIK-0001758766/7623d52...

KC
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.