STEM, INC., 10-Q filed on 8/7/2024
Quarterly Report
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Cover - shares
 6 Months Ended
Jun. 30, 2024
Jul. 30, 2024
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jun. 30, 2024  
Document Transition Report false  
Entity Registrant Name STEM, INC.  
Entity Incorporation, State or Country Code DE  
Entity File Number 001-39455  
Entity Tax Identification Number 85-1972187  
Entity Address, Address Line One 4 Embarcadero Ctr.  
Entity Address, Address Line Two Suite 710  
Entity Address, City or Town San Francisco  
Entity Address, State or Province CA  
Entity Address, Postal Zip Code 94111  
Country Region 1  
City Area Code 877  
Local Phone Number 374-7836  
Title of 12(b) Security Common Stock, par value $0.0001  
Trading Symbol STEM  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   162,626,235
Entity Central Index Key 0001758766  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2024  
Document Fiscal Period Focus Q2  
Amendment Flag false  
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CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Current assets:    
Cash and cash equivalents $ 89,649 $ 105,375
Short-term investments 0 8,219
Accounts receivable, net of allowances of $4,155 and $4,904 as of June 30, 2024 and December 31, 2023, respectively 206,351 302,848
Inventory 33,213 26,665
Deferred costs with suppliers 20,125 20,555
Other current assets 10,582 9,303
Total current assets 359,920 472,965
Energy storage systems, net 67,518 74,418
Contract origination costs, net 9,921 11,119
Goodwill 0 547,205
Intangible assets, net 152,144 157,146
Operating lease right-of-use assets 11,138 12,255
Other noncurrent assets 90,902 81,869
Total assets 691,543 1,356,977
Current liabilities:    
Accounts payable 63,103 78,277
Accrued liabilities 63,362 76,873
Accrued payroll 10,719 14,372
Financing obligation, current portion 15,139 14,835
Deferred revenue, current portion 57,974 53,997
Other current liabilities 6,349 12,726
Total current liabilities 216,646 251,080
Deferred revenue, noncurrent 88,944 88,650
Asset retirement obligation 4,122 4,052
Convertible notes, noncurrent 524,771 523,633
Financing obligation, noncurrent 47,366 52,010
Lease liabilities, noncurrent 11,832 10,455
Other liabilities 599 416
Total liabilities 894,280 930,296
Commitments and contingencies (Note 12)
Stockholders’ equity (deficit):    
Preferred stock, $0.0001 par value; 1,000,000 shares authorized as of June 30, 2024 and December 31, 2023; zero shares issued and outstanding as of June 30, 2024 and December 31, 2023 0 0
Common stock, $0.0001 par value; 500,000,000 shares authorized as of June 30, 2024 and December 31, 2023; 162,587,526 and 155,932,880 issued and outstanding as of June 30, 2024 and December 31, 2023, respectively 16 16
Additional paid-in capital 1,223,739 1,198,716
Accumulated other comprehensive income (loss) 94 (42)
Accumulated deficit (1,427,071) (772,494)
Total Stem’s stockholders’ equity (deficit) (203,222) 426,196
Non-controlling interests 485 485
Total stockholders’ equity (deficit) (202,737) 426,681
Total liabilities and stockholders’ equity (deficit) $ 691,543 $ 1,356,977
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CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Statement of Financial Position [Abstract]    
Accounts receivable, allowances $ 4,155 $ 4,904
Preferred stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Preferred stock, shares authorized (in shares) 1,000,000 1,000,000
Preferred stock, shares issued (in shares) 0 0
Preferred stock, shares outstanding (in shares) 0 0
Common stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Common stock, shares authorized (in shares) 500,000,000 500,000,000
Common stock, shares issued (in shares) 162,587,526 155,932,880
Common stock, shares outstanding (in shares) 162,587,526 155,932,880
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Revenue        
Revenue $ 33,999 $ 92,946 $ 59,468 $ 160,351
Cost of Revenue        
Cost of Revenue 24,624 81,075 74,284 147,486
Gross profit (loss) 9,375 11,871 (14,816) 12,865
Operating expenses:        
Sales and marketing 10,944 13,680 22,070 26,086
Research and development 15,281 14,156 29,417 27,600
General and administrative 15,846 18,904 34,406 36,701
Impairment of goodwill 547,152 0 547,152 0
Total operating expenses 589,223 46,740 633,045 90,387
Loss from operations (579,848) (34,869) (647,861) (77,522)
Other (expense) income, net:        
Interest expense, net (4,631) (3,903) (9,338) (5,680)
Gain on extinguishment of debt, net 0 59,121 0 59,121
Change in fair value of derivative liability 1,477 (2,576) 1,477 (2,576)
Other income, net 794 1,840 1,360 1,401
Total other (expense) income, net (2,360) 54,482 (6,501) 52,266
(Loss) income before provision for income taxes (582,208) 19,613 (654,362) (25,256)
Provision for income taxes (62) (491) (215) (400)
Net (loss) income $ (582,270) $ 19,122 $ (654,577) $ (25,656)
Net (loss) income per share attributable to common stockholders, basic (in dollars per share) $ (3.59) $ 0.12 $ (4.09) $ (0.17)
Net loss per share attributable to common stockholders, diluted (in dollars per share) $ (3.59) $ (0.26) $ (4.09) $ (0.17)
Numerator used to compute net (loss) income per share:        
Net (loss) income attributable to Stem common stockholders, basic $ (582,270) $ 19,122 $ (654,577) $ (25,656)
Net loss attributable to Stem common stockholders, diluted (Note 10) $ (582,270) $ (40,011) $ (654,577) $ (25,656)
Weighted-average shares used in computing net (loss) income per share to common stockholders, basic (in shares) 162,158,936 155,619,179 160,169,536 155,294,475
Weighted-average shares used in computing net loss per share to common stockholders, diluted (in shares) 162,158,936 155,804,953 160,169,536 155,294,475
Services and other revenue        
Revenue        
Revenue $ 15,103 $ 16,360 $ 29,943 $ 31,033
Cost of Revenue        
Cost of Revenue 10,955 11,756 20,939 23,260
Hardware revenue        
Revenue        
Revenue 18,896 76,586 29,525 129,318
Cost of Revenue        
Cost of Revenue $ 13,669 $ 69,319 $ 53,345 $ 124,226
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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Statement of Comprehensive Income [Abstract]        
Net (loss) income $ (582,270) $ 19,122 $ (654,577) $ (25,656)
Other comprehensive loss:        
Unrealized gain on available-for-sale securities 0 47 3 1,590
Foreign currency translation adjustment (60) (133) 133 (6)
Total other comprehensive (loss) income $ (582,330) $ 19,036 $ (654,441) $ (24,072)
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CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT) - USD ($)
$ in Thousands
Total
Common Stock
Additional Paid-In Capital
Accumulated Other Comprehensive (Loss) Income
Accumulated Deficit
Non-controlling Interests
Beginning balance (in shares) at Dec. 31, 2022   154,540,197        
Beginning balance at Dec. 31, 2022 $ 552,167 $ 15 $ 1,185,364 $ (1,672) $ (632,081) $ 541
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Stock option exercises, net of statutory tax withholdings (in shares)   65,045        
Stock option exercises, net of statutory tax withholdings 149   149      
Issuance of common stock upon release of restricted stock units (in shares)   903,061        
Issuance of common stock upon release of restricted stock units 1 $ 1        
Stock-based compensation 8,108   8,108      
Unrealized gain (loss) on available-for-sale securities 1,543     1,543    
Foreign currency translation adjustments 127     127    
Redemption of non-controlling interests (72)         (72)
Net (loss) income (44,778)       (44,778)  
Ending balance (in shares) at Mar. 31, 2023   155,508,303        
Ending balance at Mar. 31, 2023 517,245 $ 16 1,193,621 (2) (676,859) 469
Beginning balance (in shares) at Dec. 31, 2022   154,540,197        
Beginning balance at Dec. 31, 2022 552,167 $ 15 1,185,364 (1,672) (632,081) 541
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Unrealized gain (loss) on available-for-sale securities 1,590          
Foreign currency translation adjustments (6)          
Net (loss) income (25,656)          
Ending balance (in shares) at Jun. 30, 2023   155,796,411        
Ending balance at Jun. 30, 2023 519,344 $ 16 1,176,678 (88) (657,737) 475
Beginning balance (in shares) at Mar. 31, 2023   155,508,303        
Beginning balance at Mar. 31, 2023 517,245 $ 16 1,193,621 (2) (676,859) 469
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Stock option exercises, net of statutory tax withholdings (in shares)   39,528        
Stock option exercises, net of statutory tax withholdings 80   80      
Issuance of common stock upon release of restricted stock units (in shares)   248,580        
Stock-based compensation 10,817   10,817      
Purchase of capped call options (27,840)   (27,840)      
Unrealized gain (loss) on available-for-sale securities 47     47    
Foreign currency translation adjustments (133)     (133)    
Contributions from non-controlling interests 6         6
Net (loss) income 19,122       19,122  
Ending balance (in shares) at Jun. 30, 2023   155,796,411        
Ending balance at Jun. 30, 2023 519,344 $ 16 1,176,678 (88) (657,737) 475
Beginning balance (in shares) at Dec. 31, 2023   155,932,880        
Beginning balance at Dec. 31, 2023 426,681 $ 16 1,198,716 (42) (772,494) 485
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Issuance of common stock upon release of restricted stock units (in shares)   2,632,464        
Issuance of common stock upon release of restricted stock units 0   0      
Issuance of fully vested restricted stock for employee bonuses   2,961,438        
Issuance of fully vested restricted stock units for employee bonuses (Note 9) 8,114   8,114      
Stock-based compensation 9,367   9,367      
Unrealized gain (loss) on available-for-sale securities 3     3    
Foreign currency translation adjustments 193     193    
Net (loss) income (72,307)       (72,307)  
Ending balance (in shares) at Mar. 31, 2024   161,526,782        
Ending balance at Mar. 31, 2024 372,051 $ 16 1,216,197 154 (844,801) 485
Beginning balance (in shares) at Dec. 31, 2023   155,932,880        
Beginning balance at Dec. 31, 2023 426,681 $ 16 1,198,716 (42) (772,494) 485
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Unrealized gain (loss) on available-for-sale securities 3          
Foreign currency translation adjustments 133          
Net (loss) income (654,577)          
Ending balance (in shares) at Jun. 30, 2024   162,587,526        
Ending balance at Jun. 30, 2024 (202,737) $ 16 1,223,739 94 (1,427,071) 485
Beginning balance (in shares) at Mar. 31, 2024   161,526,782        
Beginning balance at Mar. 31, 2024 372,051 $ 16 1,216,197 154 (844,801) 485
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Issuance of common stock upon release of restricted stock units (in shares)   1,060,744        
Stock-based compensation 7,542   7,542      
Unrealized gain (loss) on available-for-sale securities 0          
Foreign currency translation adjustments (60)     (60)    
Net (loss) income (582,270)       (582,270)  
Ending balance (in shares) at Jun. 30, 2024   162,587,526        
Ending balance at Jun. 30, 2024 $ (202,737) $ 16 $ 1,223,739 $ 94 $ (1,427,071) $ 485
v3.24.2.u1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
OPERATING ACTIVITIES    
Net loss $ (654,577) $ (25,656)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization expense 22,217 22,376
Non-cash interest expense, including interest expenses associated with debt issuance costs 984 1,586
Stock-based compensation 15,184 17,122
Change in fair value of derivative liability (1,477) 2,576
Non-cash lease expense 1,533 1,406
Accretion of asset retirement obligations 118 120
Impairment loss of energy storage systems 102 2,069
Impairment loss of project assets 390 122
Impairment loss of right-of-use assets 2,096 0
Impairment of goodwill 547,152 0
Net accretion of discount on investments (29) (1,300)
Income tax benefit from release of valuation allowance 0 (335)
Provision for accounts receivable allowance (1,462) 1,734
Net loss on investments 0 1,561
Gain on extinguishment of debt, net 0 (59,121)
Other (138) (680)
Changes in operating assets and liabilities:    
Accounts receivable 97,815 (72,187)
Inventory (6,548) (137,149)
Deferred costs with suppliers 430 28,759
Other assets 719 (17,816)
Contract origination costs, net (683) (2,256)
Project assets (10,796) (2,834)
Accounts payable (14,923) 19,049
Accrued expenses and other liabilities (13,339) (35,087)
Deferred revenue 4,270 56,043
Lease liabilities (1,545) (1,341)
Net cash used in operating activities (12,507) (201,239)
INVESTING ACTIVITIES    
Acquisitions, net of cash acquired 0 (1,847)
Purchase of available-for-sale investments 0 (58,034)
Proceeds from maturities of available-for-sale investments 8,250 84,750
Proceeds from sales of available-for-sale investments 0 73,917
Purchase of energy storage systems 0 (2,640)
Capital expenditures on internally-developed software (6,608) (7,388)
Purchase of property and equipment (177) (289)
Net cash provided by investing activities 1,465 88,469
FINANCING ACTIVITIES    
Proceeds from exercise of stock options and warrants 0 229
Repayment of financing obligations (4,185) (2,587)
Proceeds from issuance of convertible notes, net of issuance costs of $0 and $7,601 for the six months ended June 30, 2024 and 2023, respectively 0 232,399
Repayment of convertible notes 0 (99,754)
Purchase of capped call options 0 (27,840)
Redemption of investment from non-controlling interests, net 0 (67)
Repayment of notes payable 0 (2,101)
Net cash (used in) provided by financing activities (4,185) 100,279
Effect of exchange rate changes on cash, cash equivalents and restricted cash 187 (7)
Net increase in cash, cash equivalents and restricted cash (15,040) (12,498)
Cash, cash equivalents and restricted cash, beginning of year 106,475 87,903
Cash, cash equivalents and restricted cash, end of period 91,435 75,405
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION    
Cash paid for interest 8,408 2,588
NON-CASH INVESTING AND FINANCING ACTIVITIES    
Change in asset retirement costs and asset retirement obligation 48 302
Purchases of energy storage systems in accounts payable 251 388
Right-of-use asset obtained in exchange for lease liability 2,513 2,782
Stock-based compensation capitalized to internal-use software 1,736 1,803
RECONCILIATION OF CASH, CASH EQUIVALENTS, AND RESTRICTED CASH WITHIN THE UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS TO THE AMOUNTS SHOWN IN THE STATEMENTS OF CASH FLOWS ABOVE:    
Cash and cash equivalents 89,649 75,405
Restricted cash included in other noncurrent assets 1,786 0
Total cash, cash equivalents, and restricted cash $ 91,435 $ 75,405
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Convertible Notes    
Payment of debt issuance costs $ 0 $ 7,601
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BUSINESS
 6 Months Ended
Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
BUSINESS BUSINESS
Description of the Business
Stem, Inc. (“Stem,” the “Company,” “we,” “us,” or “our”) is a global leader in artificial intelligence (“AI”)-driven clean energy solutions and services. We maintain one of the world’s largest digitally connected, intelligent, renewable energy networks, providing customers with (i) energy storage hardware, sourced from leading, global battery original equipment manufacturers (“OEMs”), that we deliver through our partners, including developers, distributors and engineering, procurement and construction (“EPC”) firms, (ii) edge hardware to aid in the collection of site data and the real-time operation and control of the site plus other optional equipment, and (iii) an ongoing software platform, Athena®, and services to operate and manage the performance of standalone energy storage, integrated solar plus storage systems, and solar assets. In addition, in all of the markets where we help manage our customers’ clean energy assets, we have agreements to use the Athena platform to participate in such markets and to share the revenue from such market participation.
We deliver our battery hardware and software-enabled services to customers through our Athena platform. The Company’s hardware and recurring software-enabled services mitigate customer energy costs through services such as time-of-use and demand charge management optimization and by aggregating the dispatch of energy through a network of virtual power plants. The network created by the Company’s growing customer base increases grid resilience and reliability through the real-time processing of market-based demand signals, energy prices, and other factors in connection with the deployment of renewable energy resources to such customers. Additionally, the Company’s clean energy solutions are designed to support renewable energy generation by helping to alleviate grid intermittency issues, thereby reducing customer dependence on traditional, fossil fuel resources.
The Company’s Athena PowerTrack application provides a vertically integrated solution that incorporates on-site power monitoring equipment that aggregates and communicates data to enable remote control of solar generation assets. PowerTrack provides direct access to individual site performance to measure and benchmark expected energy production, maximizing asset value for the Company’s customers.
From time to time, the Company, through an indirect wholly-owned development subsidiary (“DevCo”) will enter into strategic joint ventures (each a “DevCo JV”) with qualified third parties for the development of select renewable energy projects (“DevCo Projects”). In this structure, DevCo forms a new DevCo JV entity as the majority owner, with the developer as the minority owner. The purpose of the DevCo JV is to develop and sell DevCo Projects and secure Company hardware and software services for those projects. In some cases, the Company will make development capital contributions to fund project development, and recovers those capital contributions plus a fee upon the sale of the applicable project. This business model is intended to allow the Company to advance development capital to key partners in strategic markets and secure hardware upfront, in order to generate higher-margin software and services and other revenue via exclusive long-term services contracts under the DevCo Projects.
The Company operated as Rollins Road Acquisition Company (f/k/a Stem, Inc.) prior to the Merger with Star Peak Transition Corp. (“STPK”), an entity that was then listed on the New York Stock Exchange under the trade symbol “STPK,” and STPK Merger Sub Corp., a Delaware corporation and wholly-owned subsidiary of STPK (“Merger Sub”), providing for, among other things, and subject to the conditions therein, the combination of the Company and STPK pursuant to the merger of Merger Sub with and into the Company, with the Company continuing as the surviving entity (the “Merger”). Stem, Inc. was incorporated on March 16, 2009 in the State of Delaware and is headquartered in San Francisco, California.
Liquidity
As of June 30, 2024, we had cash and cash equivalents of $89.6 million, an accumulated deficit of $1,427.1 million, net accounts receivable of $206.4 million, and working capital, which we define as current assets less current liabilities, of $143.3 million. During the six months ended June 30, 2024, we incurred a net loss of $654.6 million and had negative cash flows from operating activities of $12.5 million. As of June 30, 2024, our principal sources of liquidity were cash and cash equivalents totaling $89.6 million, which were held for working capital purposes and for investment growth opportunities. As of June 30, 2024, we believe that our cash position, as well as expected collections from accounts receivable, is sufficient to meet capital and liquidity requirements for at least the next 12 months from the date of this Quarterly Report on Form 10-Q.
Our business prospects are subject to various risks, expenses, and uncertainties, including those discussed in Part I. Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023. The attainment of profitable operations is dependent upon future events, including securing new customers and maintaining current ones, securing and maintaining adequate supplier relationships, building our customer base, successfully executing our business and marketing strategy, and hiring and retaining appropriate personnel. Failure to generate sufficient revenues, achieve planned gross margins and operating profitability, control operating costs, or secure additional funding may require us to modify, delay or abandon some of our planned future expansion or development, or to otherwise enact operating cost reductions available to management, which could have a material adverse effect on our business, operating results and financial condition.
Supply Chain Constraints and Risk
We have in the past faced shortages and shipping delays affecting the supply of inverters, enclosures, battery modules and associated component parts for inverters and battery energy storage systems available for purchase. These shortages and delays were due in part to the macroeconomic, geopolitical and business environment, including the effects of global inflationary pressures and interest rates, general economic slowdown or a recession, changes in monetary policy, instability in financial institutions, potential import tariffs, geopolitical pressures, including the armed conflicts between Russia and Ukraine and in the Gaza Strip and nearby areas, as well as tensions between China and the United States and unknown effects of current and future trade regulations. We cannot predict the full effects the macroeconomic, geopolitical and business environment will have on our business, cash flows, liquidity, financial condition and results of operations.
v3.24.2.u1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 6 Months Ended
Jun. 30, 2024
Accounting Policies [Abstract]  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim reporting and with the instructions to Form 10-Q and Article 10 of Regulation S-X, assuming the Company will continue as a going concern. Accordingly, the consolidated balance sheet at December 31, 2023 has been derived from the audited financial statements at that date, but certain notes or other information that are normally required by GAAP have been omitted if they substantially duplicate the disclosures contained in the Company’s annual audited consolidated financial statements. In the opinion of the Company’s management, all normal and recurring adjustments considered necessary for a fair statement of the results for the interim period presented have been included in the accompanying unaudited condensed consolidated financial statements. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited financial statements for the year ended December 31, 2023. Operating results for the three and six months ended June 30, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024 or for any other future interim period or year.
Principles of Consolidation
The unaudited condensed consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries, and consolidated variable interest entities (“VIEs”). The Company presents non-controlling interests within the equity section of its unaudited condensed consolidated balance sheets, and the amount of consolidated net (loss) income that is attributable to the Company and the non-controlling interest in its unaudited condensed consolidated statements of operations. All intercompany balances and transactions have been eliminated in consolidation.
Variable Interest Entities
The Company forms special purpose entities (“SPEs”), some of which are VIEs, with its investors in the ordinary course of business to facilitate the funding and monetization of its energy storage systems. A legal entity is considered a VIE if it has either a total equity investment that is insufficient to finance its operations without additional subordinated financial support or whose equity holders lack the characteristics of a controlling financial interest. The Company’s variable interests arise from contractual, ownership, or other monetary interests in the entity. The typical condition for a controlling financial interest ownership is holding a majority of the voting interests of an entity; however, a controlling financial interest may also exist in entities, such as VIEs, through arrangements that do not involve controlling voting interests.
The Company consolidates a VIE if it is deemed to be the primary beneficiary. The Company determines it is the primary beneficiary if it has the power to direct the activities that most significantly impact the VIEs’ economic performance and has the obligation to absorb losses or has the right to receive benefits of the VIE that could potentially be significant to the VIE. The Company evaluates its relationships with its VIEs on an ongoing basis to determine whether it is the primary beneficiary.
Beginning in January 2022, the Company formed DevCo JVs with the purpose of originating potential battery storage facility projects in specific locations and conducting early-stage planning and development activities. The Company determined that the DevCo JVs are VIEs, as they lack sufficient equity to finance their activities without additional financial support. The Company determined that it has both (1) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance, and (2) the obligation to absorb losses or receive benefits from the VIE that could potentially be significant. Accordingly, the Company has determined that it is the primary beneficiary of the DevCo JVs, and as a result, the DevCo JVs’ operating results, assets and liabilities are consolidated by the Company, with third party minority owners’ share presented as noncontrolling interest. The Company applied the hypothetical liquidation at book value method in allocating recorded net income (loss) to each owner based on the change in the reporting period, of the amount of net assets of the entity to which each owner would be entitled to under the governing contracts in a liquidation scenario.
The following table summarizes the carrying values of the assets and liabilities of the DevCo JVs that are consolidated by the Company as of June 30, 2024 and December 31, 2023 (in thousands):

June 30, 2024December 31, 2023
Assets
Cash and cash equivalents$332 $2,191 
Other current assets13 30 
Other noncurrent assets18,831 8,424 
Total assets19,176 10,645 
Liabilities
Accounts payable12,108 1,405 
Other current liabilities180 1,892 
Total liabilities$12,288 $3,297 
The Company did not make any material capital investment contributions during the six months ended June 30, 2024. For the six months ended June 30, 2023, the Company contributed approximately $0.1 million in capital investments for hardware purchases. The net income from the DevCo JVs was immaterial during both the six months ended June 30, 2024 and June 30, 2023.
Use of Estimates
The preparation of unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates on historical experience and on various other assumptions believed to be reasonable. Actual results could differ from those estimates and such differences could be material to the financial position and results of operations.
Significant estimates and assumptions reflected in these unaudited condensed consolidated financial statements include, but are not limited to, depreciable life of energy storage systems; estimates of transaction price with variable consideration; the amortization of acquired intangibles; the amortization of financing obligations; deferred commissions and contract fulfillment costs; the valuation of energy storage systems, finite-lived intangible assets, internally developed software, and asset retirement
obligations; and the fair value of equity instruments, equity-based instruments, derivative liability, accruals related to sales tax liabilities, and the fair value of assets acquired and liabilities assumed in a business combination; and the impairment of goodwill.
Segment Information
Operating segments are defined as components of an entity for which discrete financial information is available that is regularly reviewed by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. The Company’s Chief Executive Officer is the CODM. The CODM reviews financial information presented on a consolidated basis for purposes of making operating decisions, allocating resources, and evaluating financial performance. As such, management has determined that the Company operates as one operating segment that is focused exclusively on innovative technology services that transform the way energy is distributed and consumed. Net assets outside of the U.S. were less than 10% of total net assets as of June 30, 2024 and December 31, 2023.
Concentration of Credit Risk and Other Uncertainties
Financial instruments that potentially subject the Company to concentration of credit risk consist of cash and cash equivalents and accounts receivable. The Company’s cash balances are primarily invested in money market funds or on deposit at high credit quality financial institutions in the U.S. The Company’s cash and cash equivalents are held at financial institutions where account balances may at times exceed federally insured limits. Management believes the Company is not exposed to significant credit risk due to the financial strength of the depository institution in which the cash is held. The Company has no financial instruments with off-balance sheet risk of loss.
At times, the Company may be subject to a concentration of credit risk in relation to certain customers due to the purchase of large energy storage systems made by such customers. The Company routinely assesses the creditworthiness of its customers. The Company has not experienced material losses related to receivables from individual customers, or groups of customers during the six months ended June 30, 2024 and 2023. The Company does not require collateral. Due to these factors, no additional credit risk beyond amounts provided for credit losses is believed by management to be probable in the Company’s accounts receivable.
The net book value of unbilled receivables, current are $98.9 million and $161.3 million as of June 30, 2024 and December 31, 2023, respectively. Unbilled receivables, current are included in accounts receivable, net. The net book value of unbilled receivables, noncurrent are $15.9 million and $18.7 million as of June 30, 2024 and December 31, 2023, respectively. Unbilled receivables, noncurrent are included in other noncurrent assets.
Significant Customers
A significant customer represents 10% or more of the Company’s total revenue or accounts receivable, net balance at each reporting date. For each significant customer, revenue as a percentage of total revenue and accounts receivable as a percentage of total accounts receivable are as follows:
Accounts ReceivableRevenueRevenue
June 30,December 31,Three Months Ended June 30,Six Months Ended June 30,
202420232024202320242023
Customers:
Customer A48 %41 %*61 %*35 %
Customer B17 %28 %***26 %
Customer C****11 %*
Customer D11 %*****
*Total less than 10% for the period.

There are inherent risks whenever a large percentage of total revenue is concentrated in a limited number of customers. Should a significant customer terminate or fail to renew its contracts with us, in whole or in part, for any reason, or experience significant financial or operating difficulties, it could have a material adverse effect on our financial condition and results of operations. In general, a customer that makes up a significant portion of revenues in one period, may not make up a significant portion in subsequent periods.
Fair Value of Financial Instruments
Assets and liabilities recorded at fair value in the unaudited condensed consolidated financial statements are categorized based upon the level of judgment associated with the inputs used to measure their fair value. The fair value of the Company’s financial assets and liabilities reflects management’s estimate of amounts that the Company would have received in connection with the sale of the assets or paid in connection with the transfer of the liabilities in an orderly transaction between market participants at the measurement date. In connection with measuring the fair value of its assets and liabilities, the Company seeks to maximize the use of observable inputs (market data obtained from independent sources) and to minimize the use of unobservable inputs (internal assumptions about how market participants would price assets and liabilities).
Hierarchical levels which are directly related to the amount of subjectivity associated with the inputs to the valuation of these assets or liabilities are as follows:
Level 1 — Unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access as of the measurement date.
Level 2 — Inputs other than quoted prices included within Level 1 that are directly observable for the asset or liability or indirectly observable through corroboration with observable market data.
Level 3 — Unobservable inputs for the asset or liability only used when there is little, if any, market activity for the asset or liability at the measurement date.
This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to their fair value measurement. The Company’s assessment of the significance of a specific input to the fair value measurement in its entirety requires management to make judgments and consider factors specific to the asset or liability.
Financial assets and liabilities held by the Company measured at fair value on a recurring basis as of June 30, 2024 and December 31, 2023 include cash and cash equivalents, short-term investments, derivative liability, and convertible notes.
v3.24.2.u1
REVENUE
 6 Months Ended
Jun. 30, 2024
Revenue from Contract with Customer [Abstract]  
REVENUE REVENUE
Disaggregation of Revenue
The following table provides information on the disaggregation of revenue as recorded in the unaudited condensed consolidated statements of operations (in thousands):
Three Months Ended
June 30,		Six Months Ended
June 30,
2024202320242023
Hardware revenue$18,896$76,586$29,525$129,318
Services and other revenue15,10316,36029,94331,033
Total revenue
$33,999$92,946$59,468$160,351
The following table summarizes reportable revenue by geographic regions determined based on the location of the customers (in thousands):
Three Months Ended
June 30,		Six Months Ended
June 30,
2024202320242023
United States$32,642 $89,636 $56,936 $150,208 
Rest of the world1,357 3,310 2,532 10,143 
Total revenue$33,999 $92,946 $59,468 $160,351 
Remaining Performance Obligations
Remaining performance obligations represent contracted revenue that has not been recognized, which include contract liabilities (deferred revenue) and amounts that will be billed and recognized as revenue in future periods. As of June 30, 2024 and June 30, 2023, the Company had $422.9 million and $767.0 million of remaining performance obligations, respectively, and the approximate percentages expected to be recognized as revenue in the future are as follows (in thousands, except percentages):
June 30, 2024
Total Remaining
Performance
Obligations		Percent Expected to be Recognized as Revenue
Less Than
One Year		Two to
Five Years		Greater Than
Five Years
Services and other revenue$339,957 15 %47 %38 %
Hardware revenue82,942 100 %— %— %
Total revenue$422,899 
June 30, 2023
Total Remaining
Performance
Obligations		Percent Expected to be Recognized as Revenue
Less Than
One Year		Two to
Five Years		Greater Than
Five Years
Services and other revenue$407,026 12 %44 %44 %
Hardware revenue360,003 100 %— %— %
Total revenue$767,029 
Contract Balances
Deferred revenue primarily includes cash received in advance of revenue recognition related to energy optimization services and incentives. The following table presents the changes in the deferred revenue balance during the six months ended June 30, 2024 and June 30, 2023 (in thousands):
Six Months Ended June 30,
20242023
Beginning balance$142,647 $138,074 
Upfront payments received from customers34,201 117,356 
Upfront or annual incentive payments received1,340 1,614 
Revenue recognized related to amounts that were included in beginning balance of deferred revenue(22,685)(18,820)
Revenue recognized related to deferred revenue generated during the period(8,585)(44,107)
Ending balance$146,918 $194,117 
Parent Company Guarantees
Prior to July 2023, the Company agreed in certain customer contracts to provide a guarantee that the value of purchased hardware will not decline for a certain period of time. Under this guarantee, if these customers were unable to install or designate the hardware to a specified project within such period of time, the Company would be required to assist the customer in re-marketing the hardware for resale by the customer. If a resale does not occur, the hardware will be appraised utilizing a third party. The guarantee provided that, in such cases, if the customer resold the hardware for less than the amount initially sold to the customer or the appraisal value is less than the hardware purchase price, the Company would be required to compensate the customer for any shortfall in fair value for the hardware from the initial contract price. The Company accounts for such contractual terms and guarantees as variable consideration at each measurement date. The Company updates its estimate of variable consideration each quarter, including changes in estimates related to such guarantees, for facts or circumstances that have changed from the time of the initial estimate. As a result, the Company recorded a net revenue reduction of $33.1 million in hardware revenue during the six months ended June 30, 2024. The overall reduction in revenue was related to deliveries that occurred prior to the current fiscal year. The remaining net book value of the billed and unbilled receivable as of June 30, 2024 is $108.1 million which could be subject to further adjustments under the outstanding guarantees.
v3.24.2.u1
SHORT-TERM INVESTMENTS
 6 Months Ended
Jun. 30, 2024
Investments, Debt and Equity Securities [Abstract]  
SHORT-TERM INVESTMENTS SHORT-TERM INVESTMENTS
The Company did not have short-term investments as of June 30, 2024. The following tables summarize the estimated fair value of the Company’s short-term investments and the gross unrealized holding gains and losses as of December 31, 2023 (in thousands).
As of December 31, 2023
Amortized CostUnrealized GainUnrealized LossEstimated Fair Value
Commercial paper$1,978 $— $— $1,978 
U.S. government bonds2,744 — (3)2,741 
Agency bonds3,503 — (3)3,500 
Total short-term investments$8,225 $— $(6)$8,219 
The Company periodically reviews the individual securities that have unrealized losses on a regular basis to evaluate whether or not any security has experienced, or is expected to experience, credit losses resulting in the decline in fair value. The Company evaluates, among other factors, whether the Company intends to sell any of these short-term investments and whether it is more likely than not that the Company will be required to sell any of them before recovery of the amortized cost basis. During the six months ended June 30, 2024, the Company did not record an allowance for credit losses.
v3.24.2.u1
FAIR VALUE MEASUREMENTS
 6 Months Ended
Jun. 30, 2024
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS
Fair value accounting is applied for all financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. On June 30, 2024 and December 31, 2023, the carrying amount of accounts receivable, other current assets, accounts payable, and accrued and other current liabilities approximated their estimated fair value due to their relatively short maturities.
Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following table provides the financial instruments measured at fair value (in thousands):
June 30, 2024
Level 1Level 2Level 3Fair Value
Assets:
Cash equivalents:
Money market fund$46,060$— $— $46,060
Total financial assets$46,060 $— $— $46,060 

December 31, 2023
Level 1Level 2Level 3Fair Value
Assets:
Cash equivalents:
Money market fund
$47,297 $— $— $47,297 
Commercial paper— 3,971— 3,971
Debt securities:
Commercial paper— 1,978 — 1,978 
U.S. government bonds— 2,741 — 2,741 
Other— 3,500 — 3,500 
Total financial assets$47,297 $12,190 $— $59,487 
Liabilities:
Derivative liability$— $— $7,731 $7,731 
The Company’s money market funds are classified as Level 1 because they are valued using quoted market prices. The Company’s short-term investments consist of available-for-sale securities and are classified as Level 2 because their value is based on valuations using significant inputs derived from or corroborated by observable market data. As of December 31, 2023, the Company’s other current liabilities included a derivative liability that was attributable to a derivative feature within a revenue contract, whereby final settlement was indexed to the price per ton of lithium carbonate. The balance was valued using a third party forecast for lithium carbonate. As the derivative instrument was not traded on an exchange it was classified within Level 3 of the fair value hierarchy. During the six months ended June 30, 2024, the derivative liability was settled resulting in a gain of $1.5 million.
Fair Value of Convertible Promissory Notes
The convertible notes are recorded at face value less unamortized debt issuance costs (see Note 8 — Convertible Notes for additional details) on the unaudited condensed consolidated balance sheets as of June 30, 2024. As of June 30, 2024 and December 31, 2023, the estimated fair value of the 2028 Convertible Notes was $120.1 million and $149.1 million, respectively, based on Level 2 quoted bid prices of the convertible notes in an over-the-counter market on the last trading date of the reporting period. As of June 30, 2024 and December 31, 2023, the estimated fair value of the 2030 Convertible Notes was $101.1 million and $175.8 million, respectively, based on Level 2 quoted bid prices of the convertible notes in an over-the-counter market on the last trading date of the reporting period.
v3.24.2.u1
GOODWILL AND INTANGIBLE ASSETS, NET
 6 Months Ended
Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND INTANGIBLE ASSETS, NET GOODWILL AND INTANGIBLE ASSETS, NET
Goodwill
Goodwill consists of the following (in thousands):
June 30,December 31,
20242023
Goodwill$547,158 $547,158 
Effect of foreign currency translation(6)47 
Impairment charges(547,152)— 
Total goodwill$— $547,205 
Goodwill is tested for impairment annually, or more often if an event or circumstance indicates that the carrying amount may not be recoverable. In connection with the preparation of the unaudited condensed consolidated financial statements for the three months ended June 30, 2024, the Company considered the sustained decline in the Company’s stock price, market capitalization, and financial performance to be a triggering event for its single reporting unit and therefore completed a test for impairment of goodwill for the reporting unit as of June 30, 2024. The Company tested goodwill for impairment using a Step 1 quantitative test and compared the reporting unit’s fair value to its carrying value. An impairment is recorded for any excess carrying value above the reporting unit’s fair value, not to exceed the amount of goodwill. The Company estimates fair value of its reporting units using a discounted cash flow model, commonly referred to as the income approach. The income approach uses a reporting unit’s projection of estimated operating results and cash flows that is discounted using a weighted-average cost of capital that reflects current market conditions appropriate to the Company’s reporting unit. The discounted cash flow model uses management’s best estimates of economic and market conditions over the projected period using the best information available, including growth rates in revenues, costs and estimates of future expected changes in operating margins and cash expenditures. Other estimates and assumptions include terminal value growth rates, weighted average cost of capital and changes in future working capital requirements. The impairment test resulted in an impairment of $547.2 million.
Intangible Assets, Net
Intangible assets, net, consists of the following (in thousands):
June 30,December 31,
20242023
Developed technology$32,618 $32,618 
Trade name11,300 11,300 
Customer relationships106,800 106,800 
Internally developed software75,627 67,282 
Intangible assets226,345 218,000 
Less: Accumulated amortization(74,199)(60,868)
Add: Currency translation adjustment(2)14 
Total intangible assets, net$152,144 $157,146 
Amortization expense for intangible assets was $6.7 million and $6.8 million for the three months ended June 30, 2024 and 2023, respectively, and $13.3 million and $13.3 million for the six months ended June 30, 2024 and 2023, respectively.
v3.24.2.u1
ENERGY STORAGE SYSTEMS, NET
 6 Months Ended
Jun. 30, 2024
Property, Plant and Equipment [Abstract]  
ENERGY STORAGE SYSTEMS, NET ENERGY STORAGE SYSTEMS, NET
Energy Storage Systems, Net
Energy storage systems, net, consists of the following (in thousands):
June 30,December 31,
20242023
Energy storage systems placed into service$138,768 $141,181 
Less: accumulated depreciation(75,122)(70,918)
Energy storage systems not yet placed into service3,872 4,155 
Total energy storage systems, net$67,518 $74,418 
Depreciation expense for energy storage systems was approximately $3.5 million and $3.6 million for the three months ended June 30, 2024 and 2023, respectively, and approximately $6.5 million and $7.2 million for the six months ended June 30, 2024 and 2023, respectively. Depreciation expense is recognized in cost of services and other revenue.
Impairment expense for energy storage systems was approximately $0.1 million and $1.2 million for the three months ended June 30, 2024 and 2023, respectively, and approximately $0.1 million and $2.1 million for the six months ended June 30, 2024 and 2023, respectively. Impairment expense is recognized in cost of services and other revenue.
v3.24.2.u1
CONVERTIBLE NOTES
 6 Months Ended
Jun. 30, 2024
Debt Disclosure [Abstract]  
CONVERTIBLE NOTES CONVERTIBLE NOTES
2028 Convertible Notes and 2028 Capped Call Options
2028 Convertible Notes
On November 22, 2021, the Company issued $460.0 million aggregate principal amount of its 2028 Convertible Notes in a private placement offering to qualified institutional buyers (the “2021 Initial Purchasers”) pursuant to Rule 144A under the Securities Act of 1933, as amended.
The 2028 Convertible Notes are senior, unsecured obligations of the Company and bear interest at a rate of 0.5% per year, payable in cash semi-annually in arrears in June and December of each year, beginning in June 2022. The 2028 Convertible Notes will mature on December 1, 2028, unless earlier repurchased, redeemed or converted in accordance with their terms prior to such date. Upon conversion, the Company may choose to pay or deliver, as the case may be, cash, shares of common stock or a combination of cash and shares of common stock. The 2028 Convertible Notes are redeemable for cash at the Company’s option at any time given certain conditions (as discussed below), at an initial conversion rate of 34.1965 shares of common stock per $1,000 principal amount of 2028 Convertible Notes, which is equivalent to an initial conversion price of
approximately $29.24 (the “2028 Conversion Price”) per share of the Company’s common stock. The conversion rate is subject to customary adjustments for certain events as described in the related indenture.
The Company may redeem for cash all or any portion of the 2028 Convertible Notes, at the Company’s option, on or after December 5, 2025 if the last reported sale price of the Company’s common stock has been at least 130% of the 2028 Conversion Price then in effect for at least 20 trading days at a redemption price equal to 100% of the principal amount of the 2028 Convertible Notes to be redeemed, plus accrued and unpaid interest.
The Company’s net proceeds from this offering were approximately $445.7 million, after deducting the 2021 Initial Purchasers’ discounts and debt issuance costs. To minimize the effect of potential dilution to the Company’s common stockholders upon conversion of the 2028 Convertible Notes, the Company entered into separate capped call transactions (the “2028 Capped Calls”) as described below. In connection with the issuance of the 2030 Convertible Notes during the second quarter of 2023, the Company used approximately $99.8 million of the net proceeds to purchase and surrender for cancellation approximately $163.0 million aggregate principal amount of the Company’s 2028 Convertible Notes, which resulted in a $59.4 million gain on debt extinguishment. See 2030 Convertible Notes below for further details of the 2030 Convertible Notes.
Upon adoption of ASU 2020-06, the Company allocated all of the debt discount to long-term debt. The debt discount is amortized to interest expense using the effective interest method, computed to be 0.9%, over the life of the 2028 Convertible Notes or approximately its seven-year term. The outstanding 2028 Convertible Notes balances as of June 30, 2024 and December 31, 2023 are summarized in the following table (in thousands):
June 30, 2024December 31, 2023
Long Term Debt
Outstanding principal$297,024 $297,024 
Unamortized 2021 Initial Purchasers’ debt discount and debt issuance cost(5,852)(6,501)
Net carrying amount$291,172 $290,523 
The following table presents total interest expense recognized related to the 2028 Convertible Notes during the three and six months ended June 30, 2024 and 2023 (in thousands):
Three Months Ended
June 30,		Six Months Ended
June 30,
2024202320242023
Cash interest expense
Contractual interest expense$371 $376 $743 $951 
Non-cash interest expense
Amortization of debt discount and debt issuance cost325 342 649 841 
Total interest expense$696 $718 $1,392 $1,792 
2028 Capped Call Options
On November 17, 2021, in connection with the pricing of the 2028 Convertible Notes, and on November 19, 2021, in connection with the exercise in full by the 2021 Initial Purchasers of their option to purchase additional Notes, the Company entered into the 2028 Capped Calls with certain counterparties. The Company used $66.7 million of the net proceeds to pay the cost of the 2028 Capped Calls.
The 2028 Capped Calls have an initial strike price of $29.2428 per share, which corresponds to the initial conversion price of the 2028 Convertible Notes and is subject to anti-dilution adjustments. The 2028 Capped Calls have a cap price of $49.6575 per share, subject to certain adjustments.
The 2028 Capped Calls are considered separate transactions entered into by and between the Company and the 2028 Capped Calls counterparties, and are not part of the terms of the 2028 Convertible Notes. The Company recorded a reduction to additional paid-in capital of $66.7 million during the year ended December 31, 2021 related to the premium payments for the 2028 Capped Calls. These instruments meet the conditions outlined in Financial Accounting Standards Board (“FASB”) ASU 2022-01 Topic 815, Derivatives and Hedging (“ASC 815”) to be classified in stockholders’ equity and are not subsequently remeasured as long as the conditions for equity classification continue to be met.
2030 Convertible Notes and 2030 Capped Call Options
2030 Convertible Notes
On April 3, 2023, the Company issued $240.0 million aggregate principal amount of its 2030 Convertible Notes in a private placement offering to qualified institutional buyers (the “2023 Initial Purchasers”) pursuant to Rule 144A under the Securities Act of 1933, as amended.
The 2030 Convertible Notes are senior, unsecured obligations of the Company and bear interest at a rate of 4.25% per year, payable in cash semi-annually in arrears in April and October of each year, beginning on October 1, 2023. The 2030 Convertible Notes will mature on April 1, 2030, unless earlier repurchased, redeemed or converted in accordance with their terms prior to such date. Upon conversion, the Company may choose to pay or deliver cash, shares of common stock or a combination of cash and shares of common stock. The 2030 Convertible Notes are redeemable for cash at the Company’s option at any time given certain conditions (as discussed below), at an initial conversion rate of 140.3066 shares of common stock per $1,000 principal amount of the 2030 Convertible Notes, which is equivalent to an initial conversion price of approximately $7.1272 (the “2030 Conversion Price”) per share of the Company’s common stock. The conversion rate is subject to customary adjustments for certain events as described in the related indenture.
The 2030 Convertible Notes will be redeemable, in whole or in part, at the Company’s option, on or after April 5, 2027 if the last reported sale price of the Company’s common stock has been at least 130% of the 2030 Conversion Price then in effect for at least 20 trading days at a redemption price equal to 100% of the principal amount of the 2030 Convertible Notes to be redeemed, plus accrued and unpaid interest.
The Company’s net proceeds from this offering were approximately $232.4 million, net of $7.6 million in debt issuance costs primarily consisting of underwriters, advisory, legal, and accounting fees. The Company used approximately $99.8 million of the net proceeds to purchase and surrender for cancellation approximately $163.0 million aggregate principal amount of the Company’s 2028 Convertible Notes. See 2028 Convertible Notes above for further details on the impacts of the debt extinguishment.
The outstanding 2030 Convertible Notes balances as of June 30, 2024 and December 31, 2023 are summarized in the following table (in thousands):
June 30, 2024December 31, 2023
Long Term Debt
Outstanding principal$240,000 $240,000 
Unamortized 2023 Initial Purchasers’ debt discount and debt issuance cost(6,401)(6,890)
Net carrying amount$233,599 $233,110 
The debt discount and debt issuance costs are amortized to interest expense using the effective interest method, computed to be 4.70%, over the life of the 2030 Convertible Notes or its approximately seven-year term.
The following table presents total interest expense recognized related to the 2030 Convertible Notes during the three and six months ended June 30, 2024 (in thousands):
Three Months Ended
June 30, 2024		Six Months Ended
June 30, 2024
Cash interest expense
Contractual interest expense$2,550 $2,493 $5,100 $2,493 
Non-cash interest expense
Amortization of debt discount and debt issuance cost246 231 489 231 
Total interest expense$2,796 $2,724 $5,589 $2,724 
2030 Capped Call Options
On March 29, 2023 and March 31, 2023, in connection with the pricing of the 2030 Convertible Notes, and on April 3, 2023, in connection with the exercise in full by the 2023 Initial Purchasers of their option to purchase additional 2030 Convertible Notes, the Company entered into Capped Calls (the “2030 Capped Calls”) with certain counterparties. The Company used $27.8 million of the net proceeds from the 2030 Convertible Notes to pay the cost of the 2030 Capped Calls.
The 2030 Capped Calls have an initial strike price of $7.1272 per share, which corresponds to the initial conversion price of the 2030 Convertible Notes and is subject to anti-dilution adjustments. The 2030 Capped Calls have a cap price of $11.1800 per share, subject to certain adjustments.
The 2030 Capped Calls are considered separate transactions entered into by and between the Company and the 2030 Capped Calls counterparties, and are not part of the terms of the 2030 Convertible Notes. The Company recorded a reduction to additional paid-in capital of $27.8 million during the second quarter of 2023 related to the premium payments for the 2030 Capped Calls. These instruments meet the conditions outlined in ASC 815 to be classified in stockholders’ equity and are not subsequently remeasured as long as the conditions for equity classification continue to be met.
v3.24.2.u1
STOCK-BASED COMPENSATION
 6 Months Ended
Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]  
STOCK-BASED COMPENSATION STOCK-BASED COMPENSATION
Equity Incentive Plans
In May 2024, the Company adopted the 2024 Equity Incentive Plan (the “2024 Plan”). Under the 2024 Plan, the Company may grant stock options, stock appreciation rights, restricted stock, restricted stock units (“RSUs”), and other awards that are settled in shares of the Company’s common stock.

Stock Options
The following table summarizes the stock option activity for the period ended June 30, 2024:
Number of
Options
Outstanding		Weighted-
Average
Exercise Price
Per Share		Weighted-
Average
Remaining
Contractual
Life (years)		Aggregate
Intrinsic
Value
(in thousands)
Balances as of December 31, 20239,011,616 $6.99 6.0$8,686 
Options granted687,483 3.37 
Options forfeited and expired(180,669)14.90 
Balances as of June 30, 20249,518,430 $6.58 5.6$43 
Options vested and exercisable — June 30, 20247,091,322 $5.58 4.7$43 
As of June 30, 2024, the Company had approximately $10.5 million of remaining unrecognized stock-based compensation expense for stock options, which is expected to be recognized over a weighted average period of 1.2 years.
Restricted Stock Units
The following table summarizes the RSU activity for the period ended June 30, 2024:

Number of
RSUs
Outstanding (1)
Weighted-Average
Grant Date Fair Value
Per Share
Balances as of December 31, 202311,159,272$10.31 
RSUs granted8,744,4602.11 
RSUs vested(6,654,406)8.19 
RSUs forfeited(771,784)6.57 
Balances as of June 30, 202412,477,542$5.92 
(1) Includes certain restricted stock units with service and market-based vesting criteria.

As of June 30, 2024, the Company had approximately $59.0 million of remaining unrecognized stock-based compensation expense for RSUs, which is expected to be recognized over a weighted average period of 1.7 years.
During the three months ended March 31, 2024, the Company issued 3.0 million shares of fully vested RSU awards through the Company’s stock bonus program under the 2021 Plan.
Stock-Based Compensation Expense
The following table summarizes stock-based compensation expense recorded in each component of operating expenses in the Company’s unaudited condensed consolidated statements of operations and comprehensive loss (in thousands):
Three Months Ended
June 30,		Six Months Ended
June 30,
2024202320242023
Sales and marketing$1,244$1,550$2,358$2,495
Research and development2,5852,5484,1164,266
General and administrative2,9815,8228,71010,361
Total stock-based compensation expense$6,810$9,920$15,184$17,122
Stock-based compensation expense associated with research and development of $0.7 million and $0.9 million corresponding to internal-use software, were capitalized during the three months ended June 30, 2024 and 2023, respectively. Stock-based compensation expense associated with research and development of $1.7 million and $1.8 million were capitalized as internal-use software during the six months ended June 30, 2024 and 2023, respectively.
v3.24.2.u1
NET (LOSS) INCOME PER SHARE
 6 Months Ended
Jun. 30, 2024
Earnings Per Share [Abstract]  
NET (LOSS) INCOME PER SHARE NET (LOSS) INCOME PER SHARE
Net (loss) income per share is computed by dividing net (loss) income by the basic weighted-average number of shares outstanding during the period. Diluted net (loss) income per share is computed by dividing net income by the diluted weighted-average number of shares outstanding during the period and, accordingly, reflects the potential dilutive effect of all issuable shares of common stock, including as a result of stock options, restricted stock units, warrants and convertible notes. The diluted weighted-average number of shares used in our diluted net (loss) income per share calculation is determined using the treasury stock method for stock options, restricted stock units, and warrants, and the if-converted method for convertible notes. For periods in which we recognize losses, the calculation of diluted loss per share is the same as the calculation of basic loss per share.
The following table sets forth the computation of basic and diluted net (loss) income per share attributable to common stockholders (in thousands, except share and per share amounts):
Three Months Ended
June 30,		Six Months Ended
June 30,
2024202320242023
Numerator:
Net (loss) income attributable to common stockholders$(582,270)$19,122 $(654,577)$(25,656)
Numerator - Diluted:
Net (loss) income per share attributable to common stockholders, basic$(582,270)$19,122 $(654,577)$(25,656)
Less: Gain on extinguishment of debt, net of tax— (59,133)— — 
Net loss attributable to Stem common stockholders, diluted$(582,270)$(40,011)$(654,577)$(25,656)
Denominator:
Weighted-average number of shares outstanding used to compute net (loss) income per share attributable to common stockholders, basic162,158,936 155,619,179 160,169,536 155,294,475 
Dilutive potential common shares— 185,774 — — 
Weighted-average number of shares outstanding used to compute net loss per share attributable to common stockholders, diluted162,158,936 155,804,953 160,169,536 155,294,475 
Net (loss) income per share attributable to common stockholders, basic$(3.59)$0.12 $(4.09)$(0.17)
Net loss per share attributable to common stockholders, diluted$(3.59)$(0.26)$(4.09)$(0.17)
The following table shows total outstanding potentially dilutive shares excluded from the computation of diluted net loss per share attributable to common stockholders as their effect would have been anti-dilutive, as of June 30, 2024 and 2023:
June 30, 2024June 30, 2023
Outstanding 2028 Convertible Notes (if converted)10,157,181 10,157,181 
Outstanding 2030 Convertible Notes (if converted)33,673,584 33,673,584 
Outstanding stock options9,518,430 9,122,644 
Outstanding warrants2,533 2,533 
Outstanding RSUs12,477,542 12,051,192 
Total
65,829,270 65,007,134 
v3.24.2.u1
INCOME TAXES
 6 Months Ended
Jun. 30, 2024
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The following table reflects the Company’s provision for income taxes and the effective tax rates for the periods presented below (in thousands, except effective tax rate):

Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
(Loss) income before provision for income taxes$(582,208)$19,613 $(654,362)$(25,256)
Provision for income taxes$(62)$(491)$(215)$(400)
Effective tax rate(0.01)%2.50 %(0.03)%(1.60)%
For the three months ended June 30, 2024, the Company recognized a provision for income taxes of $62 thousand, representing an effective tax rate of (0.01)%, which was lower than the statutory federal tax rate because the Company maintains a valuation allowance on its U.S. deferred tax assets and recognized a nondeductible goodwill impairment. For the six months ended June 30, 2024, the Company recognized a provision for income taxes of $0.2 million, representing an effective tax rate of (0.03)%, which was lower than the statutory federal tax rate due to the valuation allowance on U.S. deferred tax assets and a nondeductible goodwill impairment. For the three months ended June 30, 2023, the Company recognized a provision for income taxes of $0.5 million, representing an effective tax rate of 2.50%, which was lower than the statutory federal tax rate because the Company maintains a valuation allowance on its U.S. deferred tax assets. For the six months ended June 30, 2023, the Company recognized a provision for income taxes of $0.4 million, representing an effective tax rate of (1.60)%, which was lower than the statutory federal tax rate due to a $0.3 million tax benefit from an acquisition for a partial valuation allowance release on U.S. deferred tax assets due to the deferred tax liability established in purchase accounting on acquired intangibles during the six months ended June 30, 2023.
v3.24.2.u1
COMMITMENTS AND CONTINGENCIES
 6 Months Ended
Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES COMMITMENTS AND CONTINGENCIES
Contingencies
The Company is party to various legal proceedings from time to time. A liability is accrued when a loss is both probable and can be reasonably estimated. Management believes that the probability of a material loss with respect to any currently pending legal proceeding is remote. However, litigation is inherently uncertain and it is not possible to definitively predict the ultimate disposition of any of these proceedings. As of the date of this filing, the Company does not believe that there are any pending legal proceedings or other loss contingencies that will, either individually or in the aggregate, have a material adverse effect on the Company taken as a whole.
Commitments
In June 2024, the Company recognized a $2.5 million operating lease liability and a corresponding operating lease right-of-use (“ROU”) asset, which are included in the unaudited condensed consolidated balance sheets as of June 30, 2024. The operating lease liability and operating lease ROU asset correspond to 6,508 square feet of leased office in San Francisco, California. As of the commencement date of the lease, the remaining lease term was 65 months. The lease agreement contemplates options to extend the non-cancelable lease term, which have been determined to be not reasonably certain to be exercised. Base rent is approximately $54,200 per month with escalating payments. Upon entering into this new lease, the Company subleased an existing office space which led to a right-of-use asset impairment of $2.1 million for the three months ended June 30, 2024.

Non-cancelable Purchase Obligations
During the three months ended June 30, 2024, there have been no material changes to our non-cancelable purchase obligations from those disclosed in Note 20. “Commitments and Contingencies” in the notes to consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 29, 2024.
Non-Income Related Taxes
The Company is finalizing its sales tax liability analysis for states in which it may be determined to have economic nexus. During the third quarter of 2023, the Company determined it was probable that the Company would be subject to sales tax liabilities plus applicable interest in certain states and estimated the probable tax liability to be $5.6 million, and accordingly, the Company accrued this amount as of June 30, 2024.
v3.24.2.u1
Insider Trading Arrangements
 3 Months Ended
Jun. 30, 2024
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.24.2.u1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
 6 Months Ended
Jun. 30, 2024
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation
The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim reporting and with the instructions to Form 10-Q and Article 10 of Regulation S-X, assuming the Company will continue as a going concern. Accordingly, the consolidated balance sheet at December 31, 2023 has been derived from the audited financial statements at that date, but certain notes or other information that are normally required by GAAP have been omitted if they substantially duplicate the disclosures contained in the Company’s annual audited consolidated financial statements. In the opinion of the Company’s management, all normal and recurring adjustments considered necessary for a fair statement of the results for the interim period presented have been included in the accompanying unaudited condensed consolidated financial statements. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited financial statements for the year ended December 31, 2023. Operating results for the three and six months ended June 30, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024 or for any other future interim period or year.
Principles of Consolidation
Principles of Consolidation
The unaudited condensed consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries, and consolidated variable interest entities (“VIEs”). The Company presents non-controlling interests within the equity section of its unaudited condensed consolidated balance sheets, and the amount of consolidated net (loss) income that is attributable to the Company and the non-controlling interest in its unaudited condensed consolidated statements of operations. All intercompany balances and transactions have been eliminated in consolidation.
Variable Interest Entities
Variable Interest Entities
The Company forms special purpose entities (“SPEs”), some of which are VIEs, with its investors in the ordinary course of business to facilitate the funding and monetization of its energy storage systems. A legal entity is considered a VIE if it has either a total equity investment that is insufficient to finance its operations without additional subordinated financial support or whose equity holders lack the characteristics of a controlling financial interest. The Company’s variable interests arise from contractual, ownership, or other monetary interests in the entity. The typical condition for a controlling financial interest ownership is holding a majority of the voting interests of an entity; however, a controlling financial interest may also exist in entities, such as VIEs, through arrangements that do not involve controlling voting interests.
The Company consolidates a VIE if it is deemed to be the primary beneficiary. The Company determines it is the primary beneficiary if it has the power to direct the activities that most significantly impact the VIEs’ economic performance and has the obligation to absorb losses or has the right to receive benefits of the VIE that could potentially be significant to the VIE. The Company evaluates its relationships with its VIEs on an ongoing basis to determine whether it is the primary beneficiary.
Beginning in January 2022, the Company formed DevCo JVs with the purpose of originating potential battery storage facility projects in specific locations and conducting early-stage planning and development activities. The Company determined that the DevCo JVs are VIEs, as they lack sufficient equity to finance their activities without additional financial support. The Company determined that it has both (1) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance, and (2) the obligation to absorb losses or receive benefits from the VIE that could potentially be significant. Accordingly, the Company has determined that it is the primary beneficiary of the DevCo JVs, and as a result, the DevCo JVs’ operating results, assets and liabilities are consolidated by the Company, with third party minority owners’ share presented as noncontrolling interest. The Company applied the hypothetical liquidation at book value method in allocating recorded net income (loss) to each owner based on the change in the reporting period, of the amount of net assets of the entity to which each owner would be entitled to under the governing contracts in a liquidation scenario.
Use of Estimates
Use of Estimates
The preparation of unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates on historical experience and on various other assumptions believed to be reasonable. Actual results could differ from those estimates and such differences could be material to the financial position and results of operations.
Significant estimates and assumptions reflected in these unaudited condensed consolidated financial statements include, but are not limited to, depreciable life of energy storage systems; estimates of transaction price with variable consideration; the amortization of acquired intangibles; the amortization of financing obligations; deferred commissions and contract fulfillment costs; the valuation of energy storage systems, finite-lived intangible assets, internally developed software, and asset retirement
obligations; and the fair value of equity instruments, equity-based instruments, derivative liability, accruals related to sales tax liabilities, and the fair value of assets acquired and liabilities assumed in a business combination; and the impairment of goodwill.
Segment Information
Segment Information
Operating segments are defined as components of an entity for which discrete financial information is available that is regularly reviewed by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. The Company’s Chief Executive Officer is the CODM. The CODM reviews financial information presented on a consolidated basis for purposes of making operating decisions, allocating resources, and evaluating financial performance. As such, management has determined that the Company operates as one operating segment that is focused exclusively on innovative technology services that transform the way energy is distributed and consumed.
Concentration of Credit Risk and Other Uncertainties
Concentration of Credit Risk and Other Uncertainties
Financial instruments that potentially subject the Company to concentration of credit risk consist of cash and cash equivalents and accounts receivable. The Company’s cash balances are primarily invested in money market funds or on deposit at high credit quality financial institutions in the U.S. The Company’s cash and cash equivalents are held at financial institutions where account balances may at times exceed federally insured limits. Management believes the Company is not exposed to significant credit risk due to the financial strength of the depository institution in which the cash is held. The Company has no financial instruments with off-balance sheet risk of loss.
At times, the Company may be subject to a concentration of credit risk in relation to certain customers due to the purchase of large energy storage systems made by such customers. The Company routinely assesses the creditworthiness of its customers. The Company has not experienced material losses related to receivables from individual customers, or groups of customers during the six months ended June 30, 2024 and 2023. The Company does not require collateral. Due to these factors, no additional credit risk beyond amounts provided for credit losses is believed by management to be probable in the Company’s accounts receivable.
The net book value of unbilled receivables, current are $98.9 million and $161.3 million as of June 30, 2024 and December 31, 2023, respectively. Unbilled receivables, current are included in accounts receivable, net. The net book value of unbilled receivables, noncurrent are $15.9 million and $18.7 million as of June 30, 2024 and December 31, 2023, respectively. Unbilled receivables, noncurrent are included in other noncurrent assets.
Significant Customers
Significant Customers
A significant customer represents 10% or more of the Company’s total revenue or accounts receivable, net balance at each reporting date.
Fair Value of Financial Instruments
Fair Value of Financial Instruments
Assets and liabilities recorded at fair value in the unaudited condensed consolidated financial statements are categorized based upon the level of judgment associated with the inputs used to measure their fair value. The fair value of the Company’s financial assets and liabilities reflects management’s estimate of amounts that the Company would have received in connection with the sale of the assets or paid in connection with the transfer of the liabilities in an orderly transaction between market participants at the measurement date. In connection with measuring the fair value of its assets and liabilities, the Company seeks to maximize the use of observable inputs (market data obtained from independent sources) and to minimize the use of unobservable inputs (internal assumptions about how market participants would price assets and liabilities).
Hierarchical levels which are directly related to the amount of subjectivity associated with the inputs to the valuation of these assets or liabilities are as follows:
Level 1 — Unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access as of the measurement date.
Level 2 — Inputs other than quoted prices included within Level 1 that are directly observable for the asset or liability or indirectly observable through corroboration with observable market data.
Level 3 — Unobservable inputs for the asset or liability only used when there is little, if any, market activity for the asset or liability at the measurement date.
This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to their fair value measurement. The Company’s assessment of the significance of a specific input to the fair value measurement in its entirety requires management to make judgments and consider factors specific to the asset or liability.
Financial assets and liabilities held by the Company measured at fair value on a recurring basis as of June 30, 2024 and December 31, 2023 include cash and cash equivalents, short-term investments, derivative liability, and convertible notes.
v3.24.2.u1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
 6 Months Ended
Jun. 30, 2024
Accounting Policies [Abstract]  
Schedule of Variable Interest Entities
The following table summarizes the carrying values of the assets and liabilities of the DevCo JVs that are consolidated by the Company as of June 30, 2024 and December 31, 2023 (in thousands):

June 30, 2024December 31, 2023
Assets
Cash and cash equivalents$332 $2,191 
Other current assets13 30 
Other noncurrent assets18,831 8,424 
Total assets19,176 10,645 
Liabilities
Accounts payable12,108 1,405 
Other current liabilities180 1,892 
Total liabilities$12,288 $3,297 
Schedule of Significant Customers For each significant customer, revenue as a percentage of total revenue and accounts receivable as a percentage of total accounts receivable are as follows:
Accounts ReceivableRevenueRevenue
June 30,December 31,Three Months Ended June 30,Six Months Ended June 30,
202420232024202320242023
Customers:
Customer A48 %41 %*61 %*35 %
Customer B17 %28 %***26 %
Customer C****11 %*
Customer D11 %*****
*Total less than 10% for the period.
v3.24.2.u1
REVENUE (Tables)
 6 Months Ended
Jun. 30, 2024
Revenue from Contract with Customer [Abstract]  
Schedule of Disaggregation of Revenue
The following table provides information on the disaggregation of revenue as recorded in the unaudited condensed consolidated statements of operations (in thousands):
Three Months Ended
June 30,		Six Months Ended
June 30,
2024202320242023
Hardware revenue$18,896$76,586$29,525$129,318
Services and other revenue15,10316,36029,94331,033
Total revenue
$33,999$92,946$59,468$160,351
The following table summarizes reportable revenue by geographic regions determined based on the location of the customers (in thousands):
Three Months Ended
June 30,		Six Months Ended
June 30,
2024202320242023
United States$32,642 $89,636 $56,936 $150,208 
Rest of the world1,357 3,310 2,532 10,143 
Total revenue$33,999 $92,946 $59,468 $160,351 
Schedule of Remaining Performance Obligations As of June 30, 2024 and June 30, 2023, the Company had $422.9 million and $767.0 million of remaining performance obligations, respectively, and the approximate percentages expected to be recognized as revenue in the future are as follows (in thousands, except percentages):
June 30, 2024
Total Remaining
Performance
Obligations		Percent Expected to be Recognized as Revenue
Less Than
One Year		Two to
Five Years		Greater Than
Five Years
Services and other revenue$339,957 15 %47 %38 %
Hardware revenue82,942 100 %— %— %
Total revenue$422,899 
June 30, 2023
Total Remaining
Performance
Obligations		Percent Expected to be Recognized as Revenue
Less Than
One Year		Two to
Five Years		Greater Than
Five Years
Services and other revenue$407,026 12 %44 %44 %
Hardware revenue360,003 100 %— %— %
Total revenue$767,029 
Schedule of Contract Balances The following table presents the changes in the deferred revenue balance during the six months ended June 30, 2024 and June 30, 2023 (in thousands):
Six Months Ended June 30,
20242023
Beginning balance$142,647 $138,074 
Upfront payments received from customers34,201 117,356 
Upfront or annual incentive payments received1,340 1,614 
Revenue recognized related to amounts that were included in beginning balance of deferred revenue(22,685)(18,820)
Revenue recognized related to deferred revenue generated during the period(8,585)(44,107)
Ending balance$146,918 $194,117 
v3.24.2.u1
SHORT-TERM INVESTMENTS (Tables)
 6 Months Ended
Jun. 30, 2024
Investments, Debt and Equity Securities [Abstract]  
Schedule of Short-Term Investments
The Company did not have short-term investments as of June 30, 2024. The following tables summarize the estimated fair value of the Company’s short-term investments and the gross unrealized holding gains and losses as of December 31, 2023 (in thousands).
As of December 31, 2023
Amortized CostUnrealized GainUnrealized LossEstimated Fair Value
Commercial paper$1,978 $— $— $1,978 
U.S. government bonds2,744 — (3)2,741 
Agency bonds3,503 — (3)3,500 
Total short-term investments$8,225 $— $(6)$8,219 
v3.24.2.u1
FAIR VALUE MEASUREMENTS (Tables)
 6 Months Ended
Jun. 30, 2024
Fair Value Disclosures [Abstract]  
Schedule of Financial Instruments Measured at Fair Value
The following table provides the financial instruments measured at fair value (in thousands):
June 30, 2024
Level 1Level 2Level 3Fair Value
Assets:
Cash equivalents:
Money market fund$46,060$— $— $46,060
Total financial assets$46,060 $— $— $46,060 

December 31, 2023
Level 1Level 2Level 3Fair Value
Assets:
Cash equivalents:
Money market fund
$47,297 $— $— $47,297 
Commercial paper— 3,971— 3,971
Debt securities:
Commercial paper— 1,978 — 1,978 
U.S. government bonds— 2,741 — 2,741 
Other— 3,500 — 3,500 
Total financial assets$47,297 $12,190 $— $59,487 
Liabilities:
Derivative liability$— $— $7,731 $7,731 
v3.24.2.u1
GOODWILL AND INTANGIBLE ASSETS, NET (Tables)
 6 Months Ended
Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Goodwill
Goodwill consists of the following (in thousands):
June 30,December 31,
20242023
Goodwill$547,158 $547,158 
Effect of foreign currency translation(6)47 
Impairment charges(547,152)— 
Total goodwill$— $547,205 
Schedule of Intangible Assets
Intangible assets, net, consists of the following (in thousands):
June 30,December 31,
20242023
Developed technology$32,618 $32,618 
Trade name11,300 11,300 
Customer relationships106,800 106,800 
Internally developed software75,627 67,282 
Intangible assets226,345 218,000 
Less: Accumulated amortization(74,199)(60,868)
Add: Currency translation adjustment(2)14 
Total intangible assets, net$152,144 $157,146 
v3.24.2.u1
ENERGY STORAGE SYSTEMS, NET (Tables)
 6 Months Ended
Jun. 30, 2024
Property, Plant and Equipment [Abstract]  
Schedule of Energy Storage Systems, Net
Energy storage systems, net, consists of the following (in thousands):
June 30,December 31,
20242023
Energy storage systems placed into service$138,768 $141,181 
Less: accumulated depreciation(75,122)(70,918)
Energy storage systems not yet placed into service3,872 4,155 
Total energy storage systems, net$67,518 $74,418 
v3.24.2.u1
CONVERTIBLE NOTES (Tables)
 6 Months Ended
Jun. 30, 2024
Debt Disclosure [Abstract]  
Schedule of Convertible Debt The outstanding 2028 Convertible Notes balances as of June 30, 2024 and December 31, 2023 are summarized in the following table (in thousands):
June 30, 2024December 31, 2023
Long Term Debt
Outstanding principal$297,024 $297,024 
Unamortized 2021 Initial Purchasers’ debt discount and debt issuance cost(5,852)(6,501)
Net carrying amount$291,172 $290,523 
The following table presents total interest expense recognized related to the 2028 Convertible Notes during the three and six months ended June 30, 2024 and 2023 (in thousands):
Three Months Ended
June 30,		Six Months Ended
June 30,
2024202320242023
Cash interest expense
Contractual interest expense$371 $376 $743 $951 
Non-cash interest expense
Amortization of debt discount and debt issuance cost325 342 649 841 
Total interest expense$696 $718 $1,392 $1,792 
The outstanding 2030 Convertible Notes balances as of June 30, 2024 and December 31, 2023 are summarized in the following table (in thousands):
June 30, 2024December 31, 2023
Long Term Debt
Outstanding principal$240,000 $240,000 
Unamortized 2023 Initial Purchasers’ debt discount and debt issuance cost(6,401)(6,890)
Net carrying amount$233,599 $233,110 
The following table presents total interest expense recognized related to the 2030 Convertible Notes during the three and six months ended June 30, 2024 (in thousands):
Three Months Ended
June 30, 2024		Six Months Ended
June 30, 2024
Cash interest expense
Contractual interest expense$2,550 $2,493 $5,100 $2,493 
Non-cash interest expense
Amortization of debt discount and debt issuance cost246 231 489 231 
Total interest expense$2,796 $2,724 $5,589 $2,724 
v3.24.2.u1
STOCK-BASED COMPENSATION (Tables)
 6 Months Ended
Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]  
Schedule of Activity Under the Plan
The following table summarizes the stock option activity for the period ended June 30, 2024:
Number of
Options
Outstanding		Weighted-
Average
Exercise Price
Per Share		Weighted-
Average
Remaining
Contractual
Life (years)		Aggregate
Intrinsic
Value
(in thousands)
Balances as of December 31, 20239,011,616 $6.99 6.0$8,686 
Options granted687,483 3.37 
Options forfeited and expired(180,669)14.90 
Balances as of June 30, 20249,518,430 $6.58 5.6$43 
Options vested and exercisable — June 30, 20247,091,322 $5.58 4.7$43 
Schedule of Restricted Stock Activity
The following table summarizes the RSU activity for the period ended June 30, 2024:

Number of
RSUs
Outstanding (1)
Weighted-Average
Grant Date Fair Value
Per Share
Balances as of December 31, 202311,159,272$10.31 
RSUs granted8,744,4602.11 
RSUs vested(6,654,406)8.19 
RSUs forfeited(771,784)6.57 
Balances as of June 30, 202412,477,542$5.92 
(1) Includes certain restricted stock units with service and market-based vesting criteria.
Schedule of Stock-based Compensation Expense
The following table summarizes stock-based compensation expense recorded in each component of operating expenses in the Company’s unaudited condensed consolidated statements of operations and comprehensive loss (in thousands):
Three Months Ended
June 30,		Six Months Ended
June 30,
2024202320242023
Sales and marketing$1,244$1,550$2,358$2,495
Research and development2,5852,5484,1164,266
General and administrative2,9815,8228,71010,361
Total stock-based compensation expense$6,810$9,920$15,184$17,122
v3.24.2.u1
NET (LOSS) INCOME PER SHARE (Tables)
 6 Months Ended
Jun. 30, 2024
Earnings Per Share [Abstract]  
Schedule of Computation of Basic and Diluted Net (Loss) Income Per Share
The following table sets forth the computation of basic and diluted net (loss) income per share attributable to common stockholders (in thousands, except share and per share amounts):
Three Months Ended
June 30,		Six Months Ended
June 30,
2024202320242023
Numerator:
Net (loss) income attributable to common stockholders$(582,270)$19,122 $(654,577)$(25,656)
Numerator - Diluted:
Net (loss) income per share attributable to common stockholders, basic$(582,270)$19,122 $(654,577)$(25,656)
Less: Gain on extinguishment of debt, net of tax— (59,133)— — 
Net loss attributable to Stem common stockholders, diluted$(582,270)$(40,011)$(654,577)$(25,656)
Denominator:
Weighted-average number of shares outstanding used to compute net (loss) income per share attributable to common stockholders, basic162,158,936 155,619,179 160,169,536 155,294,475 
Dilutive potential common shares— 185,774 — — 
Weighted-average number of shares outstanding used to compute net loss per share attributable to common stockholders, diluted162,158,936 155,804,953 160,169,536 155,294,475 
Net (loss) income per share attributable to common stockholders, basic$(3.59)$0.12 $(4.09)$(0.17)
Net loss per share attributable to common stockholders, diluted$(3.59)$(0.26)$(4.09)$(0.17)
Schedule of Potentially Dilutive Shares
The following table shows total outstanding potentially dilutive shares excluded from the computation of diluted net loss per share attributable to common stockholders as their effect would have been anti-dilutive, as of June 30, 2024 and 2023:
June 30, 2024June 30, 2023
Outstanding 2028 Convertible Notes (if converted)10,157,181 10,157,181 
Outstanding 2030 Convertible Notes (if converted)33,673,584 33,673,584 
Outstanding stock options9,518,430 9,122,644 
Outstanding warrants2,533 2,533 
Outstanding RSUs12,477,542 12,051,192 
Total
65,829,270 65,007,134 
v3.24.2.u1
INCOME TAXES (Tables)
 6 Months Ended
Jun. 30, 2024
Income Tax Disclosure [Abstract]  
Schedule of Provision for Income Taxes and Effective Tax Rates
The following table reflects the Company’s provision for income taxes and the effective tax rates for the periods presented below (in thousands, except effective tax rate):

Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
(Loss) income before provision for income taxes$(582,208)$19,613 $(654,362)$(25,256)
Provision for income taxes$(62)$(491)$(215)$(400)
Effective tax rate(0.01)%2.50 %(0.03)%(1.60)%
v3.24.2.u1
BUSINESS (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2023
Mar. 31, 2023
Jun. 30, 2024
Jun. 30, 2023
Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]              
Cash and cash equivalents $ 89,649   $ 75,405   $ 89,649 $ 75,405 $ 105,375
Accumulated deficit 1,427,071       1,427,071   772,494
Accounts receivable, net of allowances 206,351       206,351   $ 302,848
Working capital 143,300       143,300    
Net loss $ 582,270 $ 72,307 $ (19,122) $ 44,778 654,577 25,656  
Negative cash flows from operating activities         $ 12,507 $ 201,239  
v3.24.2.u1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Variable Interest Entities (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Jun. 30, 2023
Assets      
Cash and cash equivalents $ 89,649 $ 105,375 $ 75,405
Other current assets 10,582 9,303  
Other noncurrent assets 90,902 81,869  
Total assets 691,543 1,356,977  
Liabilities      
Other current liabilities 6,349 12,726  
Total liabilities 894,280 930,296  
Variable Interest Entity, Primary Beneficiary      
Assets      
Cash and cash equivalents 332 2,191  
Other current assets 13 30  
Other noncurrent assets 18,831 8,424  
Total assets 19,176 10,645  
Liabilities      
Accounts payable 12,108 1,405  
Other current liabilities 180 1,892  
Total liabilities $ 12,288 $ 3,297  
v3.24.2.u1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details)
 6 Months Ended
Jun. 30, 2024
USD ($)
segment
Jun. 30, 2023
USD ($)
Dec. 31, 2023
USD ($)
Concentration Risk [Line Items]      
Number of operating segments | segment 1    
Unbilled receivables, current $ 98,900,000   $ 161,300,000
Unbilled receivables, noncurrent 15,900,000   $ 18,700,000
DevCo JVs      
Concentration Risk [Line Items]      
Contribution paid 0 $ 100,000  
Net income $ 0 $ 0  
v3.24.2.u1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Significant Customers (Details) - Customer Concentration Risk
 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Dec. 31, 2023
Customer A | Accounts Receivable        
Concentration Risk [Line Items]        
Concentration risk, percentage   48.00%   41.00%
Customer A | Revenue        
Concentration Risk [Line Items]        
Concentration risk, percentage 61.00%   35.00%  
Customer B | Accounts Receivable        
Concentration Risk [Line Items]        
Concentration risk, percentage   17.00%   28.00%
Customer B | Revenue        
Concentration Risk [Line Items]        
Concentration risk, percentage     26.00%  
Customer C | Revenue        
Concentration Risk [Line Items]        
Concentration risk, percentage   11.00%    
Customer D | Accounts Receivable        
Concentration Risk [Line Items]        
Concentration risk, percentage   11.00%    
v3.24.2.u1
REVENUE - Schedule of Disaggregation of Revenue (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Disaggregation of Revenue [Line Items]        
Revenue $ 33,999 $ 92,946 $ 59,468 $ 160,351
United States        
Disaggregation of Revenue [Line Items]        
Revenue 32,642 89,636 56,936 150,208
Rest of the world        
Disaggregation of Revenue [Line Items]        
Revenue 1,357 3,310 2,532 10,143
Hardware revenue        
Disaggregation of Revenue [Line Items]        
Revenue 18,896 76,586 29,525 129,318
Services and other revenue        
Disaggregation of Revenue [Line Items]        
Revenue $ 15,103 $ 16,360 $ 29,943 $ 31,033
v3.24.2.u1
REVENUE - Narrative (Details) - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Capitalized Contract Cost [Line Items]    
Remaining performance obligations $ 422,899 $ 767,029
Net book value of the billed and unbilled receivable 108,100  
Hardware revenue    
Capitalized Contract Cost [Line Items]    
Remaining performance obligations 82,942 $ 360,003
Revenue reduction $ 33,100  
v3.24.2.u1
REVENUE - Schedule of Remaining Performance Obligations (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Jun. 30, 2023
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Total Remaining Performance Obligations $ 422,899 $ 767,029
Services and other revenue    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Total Remaining Performance Obligations 339,957 407,026
Hardware revenue    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Total Remaining Performance Obligations $ 82,942 $ 360,003
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01 | Services and other revenue    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Percent Expected to be Recognized as Revenue   12.00%
Percent Expected to be Recognized as Revenue   6 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01 | Hardware revenue    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Percent Expected to be Recognized as Revenue   100.00%
Percent Expected to be Recognized as Revenue   6 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Services and other revenue    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Percent Expected to be Recognized as Revenue   44.00%
Percent Expected to be Recognized as Revenue   4 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Hardware revenue    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Percent Expected to be Recognized as Revenue   0.00%
Percent Expected to be Recognized as Revenue   4 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01 | Services and other revenue    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Percent Expected to be Recognized as Revenue 15.00%  
Percent Expected to be Recognized as Revenue 6 months  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01 | Hardware revenue    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Percent Expected to be Recognized as Revenue 100.00%  
Percent Expected to be Recognized as Revenue 6 months  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | Services and other revenue    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Percent Expected to be Recognized as Revenue 47.00%  
Percent Expected to be Recognized as Revenue 4 years  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | Hardware revenue    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Percent Expected to be Recognized as Revenue 0.00%  
Percent Expected to be Recognized as Revenue 4 years  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01 | Services and other revenue    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Percent Expected to be Recognized as Revenue   44.00%
Percent Expected to be Recognized as Revenue  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01 | Hardware revenue    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Percent Expected to be Recognized as Revenue   0.00%
Percent Expected to be Recognized as Revenue  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2029-01-01 | Services and other revenue    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Percent Expected to be Recognized as Revenue 38.00%  
Percent Expected to be Recognized as Revenue  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2029-01-01 | Hardware revenue    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Percent Expected to be Recognized as Revenue 0.00%  
Percent Expected to be Recognized as Revenue  
v3.24.2.u1
REVENUE - Schedule of Contract Balances (Details) - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Contract With Customer, Liability [Roll Forward]    
Beginning balance $ 142,647 $ 138,074
Upfront payments received from customers 34,201 117,356
Upfront or annual incentive payments received 1,340 1,614
Revenue recognized related to amounts that were included in beginning balance of deferred revenue (22,685) (18,820)
Revenue recognized related to deferred revenue generated during the period (8,585) (44,107)
Ending balance $ 146,918 $ 194,117
v3.24.2.u1
SHORT-TERM INVESTMENTS - Schedule of Short-Term Investments (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Marketable Securities [Line Items]    
Amortized Cost   $ 8,225
Unrealized Gain   0
Unrealized Loss   (6)
Estimated Fair Value $ 0 8,219
Commercial paper    
Marketable Securities [Line Items]    
Amortized Cost   1,978
Unrealized Gain   0
Unrealized Loss   0
Estimated Fair Value   1,978
U.S. government bonds    
Marketable Securities [Line Items]    
Amortized Cost   2,744
Unrealized Gain   0
Unrealized Loss   (3)
Estimated Fair Value   2,741
Agency bonds    
Marketable Securities [Line Items]    
Amortized Cost   3,503
Unrealized Gain   0
Unrealized Loss   (3)
Estimated Fair Value   $ 3,500
v3.24.2.u1
SHORT-TERM INVESTMENTS - Additional Information (Details)
$ in Thousands
 6 Months Ended
Jun. 30, 2024
USD ($)
Investments, Debt and Equity Securities [Abstract]  
Allowance for credit losses recorded $ 0
v3.24.2.u1
FAIR VALUE MEASUREMENTS - Schedule of Financial Instruments Measured at Fair Value (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Debt securities:    
Available-for-sale $ 0 $ 8,219
Commercial paper    
Debt securities:    
Available-for-sale   1,978
U.S. government bonds    
Debt securities:    
Available-for-sale   2,741
Fair Value, Recurring    
Debt securities:    
Total financial assets 46,060 59,487
Liabilities:    
Derivative liability   7,731
Fair Value, Recurring | Commercial paper    
Debt securities:    
Available-for-sale   1,978
Fair Value, Recurring | U.S. government bonds    
Debt securities:    
Available-for-sale   2,741
Fair Value, Recurring | Other    
Debt securities:    
Available-for-sale   3,500
Fair Value, Recurring | Money market fund    
Cash equivalents:    
Cash equivalents 46,060 47,297
Fair Value, Recurring | Commercial paper    
Cash equivalents:    
Cash equivalents   3,971
Level 1 | Fair Value, Recurring    
Debt securities:    
Total financial assets 46,060 47,297
Liabilities:    
Derivative liability   0
Level 1 | Fair Value, Recurring | Commercial paper    
Debt securities:    
Available-for-sale   0
Level 1 | Fair Value, Recurring | U.S. government bonds    
Debt securities:    
Available-for-sale   0
Level 1 | Fair Value, Recurring | Other    
Debt securities:    
Available-for-sale   0
Level 1 | Fair Value, Recurring | Money market fund    
Cash equivalents:    
Cash equivalents 46,060 47,297
Level 1 | Fair Value, Recurring | Commercial paper    
Cash equivalents:    
Cash equivalents   0
Level 2 | Fair Value, Recurring    
Debt securities:    
Total financial assets 0 12,190
Liabilities:    
Derivative liability   0
Level 2 | Fair Value, Recurring | Commercial paper    
Debt securities:    
Available-for-sale   1,978
Level 2 | Fair Value, Recurring | U.S. government bonds    
Debt securities:    
Available-for-sale   2,741
Level 2 | Fair Value, Recurring | Other    
Debt securities:    
Available-for-sale   3,500
Level 2 | Fair Value, Recurring | Money market fund    
Cash equivalents:    
Cash equivalents 0 0
Level 2 | Fair Value, Recurring | Commercial paper    
Cash equivalents:    
Cash equivalents   3,971
Level 3 | Fair Value, Recurring    
Debt securities:    
Total financial assets 0 0
Liabilities:    
Derivative liability   7,731
Level 3 | Fair Value, Recurring | Commercial paper    
Debt securities:    
Available-for-sale   0
Level 3 | Fair Value, Recurring | U.S. government bonds    
Debt securities:    
Available-for-sale   0
Level 3 | Fair Value, Recurring | Other    
Debt securities:    
Available-for-sale   0
Level 3 | Fair Value, Recurring | Money market fund    
Cash equivalents:    
Cash equivalents $ 0 0
Level 3 | Fair Value, Recurring | Commercial paper    
Cash equivalents:    
Cash equivalents   $ 0
v3.24.2.u1
FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Dec. 31, 2023
Debt Instrument [Line Items]          
Gain on settlement of derivative liability $ 1,477 $ (2,576) $ 1,477 $ (2,576)  
Convertible Notes | Level 2 | 2028 Convertible Notes          
Debt Instrument [Line Items]          
Convertible debt 120,100   120,100   $ 149,100
Convertible Notes | Level 2 | 2030 Convertible Notes          
Debt Instrument [Line Items]          
Convertible debt $ 101,100   $ 101,100   $ 175,800
v3.24.2.u1
GOODWILL AND INTANGIBLE ASSETS, NET - Schedule of Goodwill (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]    
Goodwill $ 547,158 $ 547,158
Effect of foreign currency translation (6) 47
Impairment charges (547,152) 0
Total goodwill $ 0 $ 547,205
v3.24.2.u1
GOODWILL AND INTANGIBLE ASSETS, NET - Narrative (Details)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
USD ($)
Jun. 30, 2023
USD ($)
Jun. 30, 2024
USD ($)
reporting_unit
Jun. 30, 2023
USD ($)
Dec. 31, 2023
USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]          
Number of reporting units | reporting_unit     1    
Asset impairment charges $ 547,152   $ 547,152   $ 0
Amortization of intangible assets $ 6,700 $ 6,800 $ 13,300 $ 13,300  
v3.24.2.u1
GOODWILL AND INTANGIBLE ASSETS, NET - Schedule of Intangible Assets, Net (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Acquired Finite-Lived Intangible Assets [Line Items]    
Intangible assets $ 226,345 $ 218,000
Less: Accumulated amortization (74,199) (60,868)
Add: Currency translation adjustment (2) 14
Total intangible assets, net 152,144 157,146
Developed technology    
Acquired Finite-Lived Intangible Assets [Line Items]    
Intangible assets 32,618 32,618
Trade name    
Acquired Finite-Lived Intangible Assets [Line Items]    
Intangible assets 11,300 11,300
Customer relationships    
Acquired Finite-Lived Intangible Assets [Line Items]    
Intangible assets 106,800 106,800
Internally developed software    
Acquired Finite-Lived Intangible Assets [Line Items]    
Intangible assets $ 75,627 $ 67,282
v3.24.2.u1
ENERGY STORAGE SYSTEMS, NET - Schedule of Energy Storage Systems, Net (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Property, Plant and Equipment [Line Items]    
Less: accumulated depreciation $ (75,122) $ (70,918)
Total energy storage systems, net 67,518 74,418
Energy storage systems placed into service    
Property, Plant and Equipment [Line Items]    
Total energy storage systems, gross 138,768 141,181
Energy storage systems not yet placed into service    
Property, Plant and Equipment [Line Items]    
Total energy storage systems, gross $ 3,872 $ 4,155
v3.24.2.u1
ENERGY STORAGE SYSTEMS, NET - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Property, Plant and Equipment [Abstract]        
Depreciation expense $ 3,500 $ 3,600 $ 6,500 $ 7,200
Impairment loss of energy storage systems $ 100 $ 1,200 $ 102 $ 2,069
v3.24.2.u1
CONVERTIBLE NOTES - Narrative (Details)
$ / shares in Units, $ in Thousands
 3 Months Ended 6 Months Ended 12 Months Ended
Apr. 03, 2023
USD ($)
day
$ / shares
Nov. 22, 2021
USD ($)
day
$ / shares
Nov. 19, 2021
USD ($)
$ / shares
Jun. 30, 2024
USD ($)
Jun. 30, 2023
USD ($)
Jun. 30, 2024
USD ($)
Jun. 30, 2023
USD ($)
Dec. 31, 2021
USD ($)
Mar. 29, 2023
$ / shares
Debt Instrument [Line Items]                  
Proceeds from convertible notes           $ 0 $ 232,399    
Gain on extinguishment of debt, net       $ 0 $ 59,121 $ 0 $ 59,121    
Capped Call Options                  
Debt Instrument [Line Items]                  
Cost of capped calls     $ 66,700   27,800     $ 66,700  
Initial strike price (in dollars per share) | $ / shares     $ 29.2428           $ 7.1272
Cap price (in dollars per share) | $ / shares     $ 49.6575           $ 11.1800
2028 Convertible Notes | Convertible Notes                  
Debt Instrument [Line Items]                  
Face amount   $ 460,000              
Fixed interest rate, annual   0.50%              
Conversion ratio   0.0341965              
Conversion price (in dollars per share) | $ / shares   $ 29.24              
Redemption price, percentage   100.00%              
Proceeds from convertible notes   $ 445,700     99,800        
Cancellation of aggregate principal         163,000        
Gain on extinguishment of debt, net         $ 59,400        
Effective interest percentage   0.90%              
Term   7 years              
2028 Convertible Notes | Convertible Notes | Debt Instrument, Redemption, Period One                  
Debt Instrument [Line Items]                  
Conversion price, percentage   130.00%              
2028 Convertible Notes | Convertible Notes | Debt Instrument, Redemption, Period Two                  
Debt Instrument [Line Items]                  
Threshold trading days | day   20              
2030 Convertible Notes | Convertible Notes                  
Debt Instrument [Line Items]                  
Face amount $ 240,000                
Fixed interest rate, annual 4.25%                
Conversion ratio 0.1403066                
Conversion price (in dollars per share) | $ / shares $ 7.1272                
Redemption price, percentage 100.00%                
Proceeds from convertible notes $ 232,400                
Effective interest percentage 4.70%                
Term 7 years                
Debt issuance costs $ 7,600                
2030 Convertible Notes | Convertible Notes | Capped Call Options                  
Debt Instrument [Line Items]                  
Proceeds from convertible notes $ 27,800                
2030 Convertible Notes | Convertible Notes | Debt Instrument, Redemption, Period One                  
Debt Instrument [Line Items]                  
Conversion price, percentage 130.00%                
2030 Convertible Notes | Convertible Notes | Debt Instrument, Redemption, Period Two                  
Debt Instrument [Line Items]                  
Threshold trading days | day 20                
v3.24.2.u1
CONVERTIBLE NOTES - Schedule of Outstanding Convertible Notes (Details) - Convertible Notes - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
2028 Convertible Notes    
Debt Instrument [Line Items]    
Outstanding principal $ 297,024 $ 297,024
Unamortized Initial Purchasers’ debt discount and debt issuance cost (5,852) (6,501)
Net carrying amount 291,172 290,523
2030 Convertible Notes    
Debt Instrument [Line Items]    
Outstanding principal 240,000 240,000
Unamortized Initial Purchasers’ debt discount and debt issuance cost (6,401) (6,890)
Net carrying amount $ 233,599 $ 233,110
v3.24.2.u1
CONVERTIBLE NOTES - Schedule of Interest Expense Recognized Related to Convertible Note (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Debt Instrument [Line Items]        
Amortization of debt discount and debt issuance cost     $ 984 $ 1,586
2028 Convertible Notes | Convertible Notes        
Debt Instrument [Line Items]        
Contractual interest expense $ 371 $ 376 743 951
Amortization of debt discount and debt issuance cost 325 342 649 841
Total interest expense 696 718 1,392 1,792
2030 Convertible Notes | Convertible Notes        
Debt Instrument [Line Items]        
Contractual interest expense 2,550 2,493 5,100 2,493
Amortization of debt discount and debt issuance cost 246 231 489 231
Total interest expense $ 2,796 $ 2,724 $ 5,589 $ 2,724
v3.24.2.u1
STOCK-BASED COMPENSATION - Schedule of Option Activity (Details) - USD ($)
$ / shares in Units, $ in Thousands
 6 Months Ended 12 Months Ended
Jun. 30, 2024
Dec. 31, 2023
Number of Options Outstanding    
Options outstanding, beginning of period (in shares) 9,011,616  
Options granted (in shares) 687,483  
Options forfeited and expired (in shares) (180,669)  
Options outstanding, end of period (in shares) 9,518,430 9,011,616
Options vested and exercisable (in shares) 7,091,322  
Weighted- Average Exercise Price Per Share    
Options outstanding, weighted average exercise price (in dollars per share) $ 6.58 $ 6.99
Options granted, weighted average exercise price (in dollars per share) 3.37  
Options forfeited and expired, weighted average exercise price (in dollars per share) 14.90  
Options vested and exercisable, weighted-average exercise price (in dollars per share) $ 5.58  
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]    
Weighted average remaining contractual life, options outstanding 5 years 7 months 6 days 6 years
Weighted average remaining contractual life, options vested and exercisable 4 years 8 months 12 days  
Aggregate intrinsic value, options outstanding $ 43 $ 8,686
Aggregate intrinsic value, options vested and exercisable $ 43  
v3.24.2.u1
STOCK-BASED COMPENSATION - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Remaining unrecognized stock-based compensation expense for stock options $ 10,500     $ 10,500  
Total stock-based compensation expense 6,810   $ 9,920 15,184 $ 17,122
Research and development          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Total stock-based compensation expense 2,585   2,548 4,116 4,266
Research and development | Certain Executive Officers          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Amount capitalized 700        
General and administrative          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Total stock-based compensation expense 2,981   5,822 8,710 10,361
General and administrative | Certain Executive Officers          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Amount capitalized (2,000)        
Internally developed software | Research and development          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Amount capitalized 700   $ 900    
Total stock-based compensation expense       $ 1,700 $ 1,800
Stock options          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Weighted average period for recognition of stock-based compensation expense       1 year 2 months 12 days  
RSU          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Weighted average period for recognition of stock-based compensation expense       1 year 8 months 12 days  
Remaining unrecognized stock-based compensation expense for RSUs $ 59,000     $ 59,000  
RSUs vested (in shares)   (3,000,000.0)   (6,654,406)  
v3.24.2.u1
STOCK-BASED COMPENSATION - Schedule of RSU Activity (Details) - RSU - $ / shares
 3 Months Ended 6 Months Ended
Mar. 31, 2024
Jun. 30, 2024
Number of RSUs Outstanding    
RSUs outstanding, beginning (in shares) 11,159,272 11,159,272
RSUs granted (in shares)   8,744,460
RSUs vested (in shares) (3,000,000.0) (6,654,406)
RSUs forfeited (in shares)   (771,784)
RSUs outstanding, ending (in shares)   12,477,542
Weighted-Average Grant Date Fair Value Per Share    
RSUs outstanding, weighted average grant date fair value, beginning (in dollars per share) $ 10.31 $ 10.31
RSUs granted, weighted average grant date fair value (in dollars per share)   2.11
RSUs vested, weighted average grant date fair value (in dollars per share)   8.19
RSUs forfeited, weighted average grant date fair value (in dollars per share)   6.57
RSUs outstanding, weighted average grant date fair value, ending (in dollars per share)   $ 5.92
v3.24.2.u1
STOCK-BASED COMPENSATION - Schedule of Stock-Based Compensation Expense (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Total stock-based compensation expense $ 6,810 $ 9,920 $ 15,184 $ 17,122
Sales and marketing        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Total stock-based compensation expense 1,244 1,550 2,358 2,495
Research and development        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Total stock-based compensation expense 2,585 2,548 4,116 4,266
General and administrative        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Total stock-based compensation expense $ 2,981 $ 5,822 $ 8,710 $ 10,361
v3.24.2.u1
NET (LOSS) INCOME PER SHARE - Schedule of Basic and Diluted Net (Loss) Income Per Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Numerator:        
Net (loss) income attributable to Stem common stockholders, basic $ (582,270) $ 19,122 $ (654,577) $ (25,656)
Less: Gain on extinguishment of debt, net of tax 0 (59,133) 0 0
Net loss attributable to Stem common stockholders, diluted (Note 10) $ (582,270) $ (40,011) $ (654,577) $ (25,656)
Denominator:        
Weighted-average number of shares outstanding used to compute net (loss) income per share attributable to common stockholders, basic (in shares) 162,158,936 155,619,179 160,169,536 155,294,475
Dilutive potential common shares (in shares) 0 185,774 0 0
Weighted-average number of shares outstanding used to compute net loss per share attributable to common stockholders, diluted (in shares) 162,158,936 155,804,953 160,169,536 155,294,475
Net (loss) income per share attributable to common stockholders, basic (in dollars per share) $ (3.59) $ 0.12 $ (4.09) $ (0.17)
Net loss per share attributable to common stockholders, diluted (in dollars per share) $ (3.59) $ (0.26) $ (4.09) $ (0.17)
v3.24.2.u1
NET (LOSS) INCOME PER SHARE - Schedule of Antidilutive Securities (Details) - shares
 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Potentially dilutive shares (in shares) 65,829,270 65,007,134
Outstanding 2028 Convertible Notes (if converted)    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Potentially dilutive shares (in shares) 10,157,181 10,157,181
Outstanding 2030 Convertible Notes (if converted)    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Potentially dilutive shares (in shares) 33,673,584 33,673,584
Outstanding stock options    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Potentially dilutive shares (in shares) 9,518,430 9,122,644
Outstanding warrants    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Potentially dilutive shares (in shares) 2,533 2,533
Outstanding RSUs    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Potentially dilutive shares (in shares) 12,477,542 12,051,192
v3.24.2.u1
INCOME TAXES - Schedule of Provision for Income Taxes and the Effective Tax Rates (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Income Tax Disclosure [Abstract]        
(Loss) income before provision for income taxes $ (582,208) $ 19,613 $ (654,362) $ (25,256)
Provision for income taxes $ (62) $ (491) $ (215) $ (400)
Effective tax rate (0.01%) 2.50% (0.03%) (1.60%)
v3.24.2.u1
INCOME TAXES - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Income Tax Disclosure [Abstract]        
Provision for income taxes $ 62 $ 491 $ 215 $ 400
Effective tax rate (0.01%) 2.50% (0.03%) (1.60%)
(Benefit) for income taxes, federal     $ 300  
v3.24.2.u1
COMMITMENTS AND CONTINGNECIES (Details)
 3 Months Ended 6 Months Ended
Jun. 30, 2024
USD ($)
ft²
Jun. 30, 2024
USD ($)
ft²
Jun. 30, 2024
USD ($)
ft²
Jun. 30, 2023
USD ($)
Dec. 31, 2023
USD ($)
Loss Contingencies [Line Items]          
Operating lease right-of-use assets $ 11,138,000 $ 11,138,000 $ 11,138,000   $ 12,255,000
Lease term 65 months 65 months 65 months    
Base rent per month $ 54,200        
Loss contingency accrual amount 5,600,000 $ 5,600,000 $ 5,600,000    
Impairment loss of right-of-use assets   2,100,000 2,096,000 $ 0  
Building          
Loss Contingencies [Line Items]          
Operating lease liability 2,500,000 2,500,000 2,500,000    
Operating lease right-of-use assets $ 2,500,000 $ 2,500,000 $ 2,500,000    
Area of lease | ft² 6,508 6,508 6,508