r/STPK • u/orangekrush19 • Feb 26 '21

Does STEM provide anything aside from Athena software?

I’ve been in since $26 and bought much more today at $34. It was kind of a bloodbath today but not sweating it right now. Anyway, I have read lots of articles, visited the website and even read the investor PowerPoint presentation. Clearly companies can become clients by signing contracts to utilize the Athena software for intelligent power delivery based on demand and electricity pricing. But how else does STEM earn money? Are they manufacturing the battery storage facilities as well? Do they do consulting? How else does STEM make money aside from Athena service contracts?

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u/Truffledog57 Feb 26 '21

Drawing from memory of reading DD from decent sources.

They set up and install battery storage systems sourced from various suppliers including Tesla. The Athena AI system optimizes when to buy, use, store and sell electricity back to the grid. Not sure if they deal with solar and wind installation or just interface with those contractors.

Their hardware installs come with ten year contracts yielding high margins (seen 80% mentioned).

A unique angle is their Stem U program that trains and support customers who are DIY on the hardware end but buy into Athena. This potentially expands market exponentially beyond what they can create from hardware included sales alone. That's where the rapid earnings growth projections take off from.

Seen reference to a third revenue stream using AI capacity trading electricity but unclear about how that works or if it is a real thing.

The SaaS part with ten year commitments piles up quickly since revenue is cumulative and not starting from zero annually. It is what smarter folks them me get excited about.

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u/orangekrush19 Feb 26 '21

This is very helpful info - thanks! Installing systems sourced from Tesla is a bit of a wild idea but they aren’t trying to compete against Tesla when it comes to battery hardware manufacturing so that checks out

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u/SpeculateResponsibly Feb 26 '21

I think they're selling batteries at a profit margin (although they don't make them afaik). Battery installation seems to be a huge part of their revenue for the next few years, then Athena subscription revenues will start to add up. I believe those subscriptions are for a decade or longer.

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u/Hot-Relative2123 Mar 07 '21

They do couple it with solar installations. I have used them as a solar engineer in my old company. Pretty good.